Profitability-Liquidity Tradeoff : The Evidence on Malaysian Listed Companies

This study attempts to examine the determinant of companies' profitability in Malaysia. This study used the net operating income to measure profitability of company; current ratio and cash gap are used to measure liquidity and sales are used to measure the size of company. The sample of this s...

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Main Author:	Maziah, Sarnua
Format:	Thesis
Language:	eng eng
Published:	2005
Subjects:	HF5601-5689 Accounting
Online Access:	https://etd.uum.edu.my/1265/1/MAZIAH_BT._SARNUA.pdf https://etd.uum.edu.my/1265/2/1.MAZIAH_BT._SARNUA.pdf
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id	my-uum-etd.1265
record_format	uketd_dc
spelling	my-uum-etd.12652014-06-26T08:14:07Z Profitability-Liquidity Tradeoff : The Evidence on Malaysian Listed Companies 2005 Maziah, Sarnua Faculty of Finance and Banking Faculty of Finance and Banking HF5601-5689 Accounting This study attempts to examine the determinant of companies' profitability in Malaysia. This study used the net operating income to measure profitability of company; current ratio and cash gap are used to measure liquidity and sales are used to measure the size of company. The sample of this study comprise of 166 companies listed on the Main Board of Bursa Malaysia covering period of 1998 to 2003. Overall, the regression models showed that the current ratio (CR) is consistently positive and significant with net operating income (NOI). However, the negatively significant relationship is found between profitability and liquidity as measures by cash gap (cash conversion cycle). This study finds that CR is the most important liquidity measure that affects profitability. This study has observed the relationship between size and profitability of company. Size is also found to bear some influence over profitability. Therefore, the regression model showed that Malaysian companies have a positive relationship between NOI and size. Finally, this study suggests that size, current ratio and cash gap are significant determinants of the variability of profitability. 2005 Thesis https://etd.uum.edu.my/1265/ https://etd.uum.edu.my/1265/1/MAZIAH_BT._SARNUA.pdf application/pdf eng validuser https://etd.uum.edu.my/1265/2/1.MAZIAH_BT._SARNUA.pdf application/pdf eng public masters masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
topic	HF5601-5689 Accounting
spellingShingle	HF5601-5689 Accounting Maziah, Sarnua Profitability-Liquidity Tradeoff : The Evidence on Malaysian Listed Companies
description	This study attempts to examine the determinant of companies' profitability in Malaysia. This study used the net operating income to measure profitability of company; current ratio and cash gap are used to measure liquidity and sales are used to measure the size of company. The sample of this study comprise of 166 companies listed on the Main Board of Bursa Malaysia covering period of 1998 to 2003. Overall, the regression models showed that the current ratio (CR) is consistently positive and significant with net operating income (NOI). However, the negatively significant relationship is found between profitability and liquidity as measures by cash gap (cash conversion cycle). This study finds that CR is the most important liquidity measure that affects profitability. This study has observed the relationship between size and profitability of company. Size is also found to bear some influence over profitability. Therefore, the regression model showed that Malaysian companies have a positive relationship between NOI and size. Finally, this study suggests that size, current ratio and cash gap are significant determinants of the variability of profitability.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Maziah, Sarnua
author_facet	Maziah, Sarnua
author_sort	Maziah, Sarnua
title	Profitability-Liquidity Tradeoff : The Evidence on Malaysian Listed Companies
title_short	Profitability-Liquidity Tradeoff : The Evidence on Malaysian Listed Companies
title_full	Profitability-Liquidity Tradeoff : The Evidence on Malaysian Listed Companies
title_fullStr	Profitability-Liquidity Tradeoff : The Evidence on Malaysian Listed Companies
title_full_unstemmed	Profitability-Liquidity Tradeoff : The Evidence on Malaysian Listed Companies
title_sort	profitability-liquidity tradeoff : the evidence on malaysian listed companies
granting_institution	Universiti Utara Malaysia
granting_department	Faculty of Finance and Banking
publishDate	2005
url	https://etd.uum.edu.my/1265/1/MAZIAH_BT._SARNUA.pdf https://etd.uum.edu.my/1265/2/1.MAZIAH_BT._SARNUA.pdf
_version_	1747827108855414784

Profitability-Liquidity Tradeoff : The Evidence on Malaysian Listed Companies

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