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An Analysis of the Effects of Operating Margin and Beta for Performance on Ford Motor Company

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  • Wong, Mei Kait

Abstract

The aim of this study to conduct the general performance of Ford Motor Company where it can be affected by internal factors and external factors attributable to corporate governance failure and inefficient management. This paper aim to investigate the relationship between the determinant variable which is Return on Assets (ROA) and the external variables which are internal factors (operational ratio, quick ratio, operating margin, average-collection period, current ratio, corporate governance index, debt to income) and external factors (exchange rate, unemployment rate, interest rate, gross domestic product (GDP), beta, inflation) on and how they influenced ROA of Ford Motor Company from 2014 to 2018. The findings and analysis show that the internal factors (operating margin) and the external factors (Beta or also known as market risk) were positively significant to the ROA and influenced ROA the most.

Suggested Citation

  • Wong, Mei Kait, 2019. "An Analysis of the Effects of Operating Margin and Beta for Performance on Ford Motor Company," MPRA Paper 97251, University Library of Munich, Germany, revised 28 Nov 2019.
    • Handle: RePEc:pra:mprapa:97251
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    References listed on IDEAS

    as
    1. Suresh Govindaraj & Bikki Jaggi & Beixin Lin, 2004. "Market Overreaction to Product Recall Revisited--The Case of Firestone Tires and the Ford Explorer," Review of Quantitative Finance and Accounting, Springer, vol. 23(1), pages 31-54, July.
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    More about this item

    Keywords

    Return on Assets (ROA); operating margin; Corporate Governance; Beta; Market risk;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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