Profitability and firm size-growth relationship in construction companies in Malaysia from 2003 to 2010

Rasiah, Devinaga and Yoon, David Kin Tong and Peong, Kwee Kim (2014) Profitability and firm size-growth relationship in construction companies in Malaysia from 2003 to 2010. Review of Pacific Basin Financial Markets and Policies, 17 (3). ISSN 1793-6705

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Official URL: http://www.worldscientific.com/doi/abs/10.1142/S02...

Abstract

In this study, we intended to examine empirically how a firm's profitability performance would impact its growth process and the inference for Gibrat's Law. The basic study looks at small, medium and large firms' tendency to grow when their internally generated profits are high. The sample is 124 construction companies listed from years 2003 to 2010 at BURSA Malaysia. Data used is secondary data collected from BURSA Malaysia and annual reports. The result indicated that "growth" contributed significantly to profitability in both small and medium-sized construction companies, but was not significant in large companies. Thus, hypothesis two was supported. This study supports Gibrat's Law, showing that size and growth rate are independent.

Item Type: Article
Subjects: H Social Sciences > HD Industries. Land use. Labor
Divisions: Faculty of Business (FOB)
Depositing User: Ms Nurul Iqtiani Ahmad
Date Deposited: 12 Sep 2014 03:50
Last Modified: 12 Sep 2014 03:50
URI: http://shdl.mmu.edu.my/id/eprint/5736

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