THE EFFECTS OF LIQUIDITY RISK AND MARKET RISK ON MCDONALD’S CORPORATION PERFORMANCE FROM 2014 TO 2018

Wei Jian Chai

MPRA Paper from University Library of Munich, Germany

Abstract: Profitability is a crucial aspect that in the study of the company namely McDonald’s Corporation. The main goal of this study is to determine the impacts of liquidity and market risk towards profitability or return on assets of McDonald’s Corporation from 2014 to 2018. As a result, the analysis shows that quick ratio as liquidity risk and standard deviation as the market risk that influences the profitability of McDonald’s Corporation the most along the period 2014 to 2018. This study also pointed out the suitable solutions for McDonald’s Corporation, which are diversify investments by using more cash and increase the share price by monitoring company performance in generating higher profits.

Keywords: ROA; Quick ratio; standard deviation; market risk; Corporate Governance; company performance (search for similar items in EconPapers)
JEL-codes: G3 O16 (search for similar items in EconPapers)
Date: 2019-11-18, Revised 2019-11-15
New Economics Papers: this item is included in nep-cfn
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:97268

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