文章基本信息

标题：Drivers of Profitability in Pakistan Stock Exchange (PSX) through Du-Pont Equation
本地全文：下载
作者：Adees Ahmed ; Danish Ahmed Siddiqui
期刊名称：Research Journal of Finance and Accounting
印刷版ISSN：2222-1697
出版年度：2019
卷号：10
期号：10
页码：137-151
DOI：10.7176/RJFA/10-10-16
出版社：The International Institute for Science, Technology and Education (IISTE)
摘要：This research paper aims to investigate the impact of different components of Du-Pont model on firms’ profitability (1) on stand-alone basis, and (2) in the presence of different macro-economic factors. These components include profit margin, total assets turnover and financial leverage. Financial information from five different sectors of Pakistan’s economy comprising of automobile, cement, fertilizer, oil and gas and power & distribution was collected for years ranging from FY2011 to FY2017. Few macro-economic factors such as Exchange Rates, GDP, Inflation, and Interest rates are also taken into consideration. In this paper, LS and GMM regression models have been implied on Du-Pont model (financial ratios) and the results indicate that profit margin is a major driver of profitability amongst all the other factors of Du-Pont across various economic sectors of economy of Pakistan. Hence, the business managers should exert more focus on adjusting the micro-economic factors, perhaps profitability, while adapting to macro-economic factors
关键词：Du-pont; Profitability; Pakistan; GMM; Leverage; Turnover; Sectors