 Panel data investigation of determinants of profitability: evidence from Indian corporate sectorRakshika Gupta, Supran Kumar Sharma and Jyoti Sharma International Journal of Business Innovation and Research, 2025, vol. 37, issue 3, 287-307 Abstract: The study uncovers the role of factors like size, liquidity, tangibility, firm age, asset turnover, capital structure, technical efficiency and its components on the level of profitability of the selected firms listed in S%P Index of Bombay Stock Exchange of India. The return on equity (ROE) and return on assets (ROA) have been employed as proxies of profitability. Quantitative research methods including panel regression models of random and fixed effects as well as data envelopment analysis based technical efficiency have been estimated to reveal the impact of aforementioned factors onprofitability of selected firms. The study recommends that tangibility, asset turnover, firm size, firm age and capital structure are significant on statistical ground for ROA whereas in case of ROE, capital structure, firm size, asset turnover and firm age are established as critically significant factors. The results also highlight that higher scale technical efficiency may ends in poorer profitability. Keywords: firm age; profitability; liquidity; return on equity; return on assets; panel data. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbire:v:37:y:2025:i:3:p:287-307 Access Statistics for this article More articles in International Journal of Business Innovation and Research from Inderscience Enterprises Ltd |
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