The causes of profitability: a panel study of Indian IT and consulting sector

Rohit Bansal, Sanjay Kumar Kar and Saroj Kumar Mishra

International Journal of Accounting, Auditing and Performance Evaluation, 2022, vol. 18, issue 2, 163-183

Abstract: The paper uses several profit methods to examine the factors of profitability for the Indian IT and consulting sector. This reading aims to detect the association between the activity ratio or turnover ratio and the profitability of the Indian IT and consulting sector over the past seven years, from April 2012 to March 2018. The data were then analysed with a descriptive research technique of panel data regression and verified with Hausman's measurement, a widely used technique for selecting the panel effect. Working capital turnover was statistically significant against the profitability of the Indian IT and consulting sector. However, assets turnover and debtor turnover ratio were statistically insignificant with the profit margin. This research will support the company's internal management, auditors, policymakers, financial executives, and investors in making investment decisions.

Keywords: profitability determinants; profit margin; assets; debtor turnover; working capital; fixed effect panel; random effect panel; panel regression. (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=126878 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijaape:v:18:y:2022:i:2:p:163-183

Access Statistics for this article

More articles in International Journal of Accounting, Auditing and Performance Evaluation from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().