:: International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies
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ISSN 2228-9860
eISSN 1906-9642
CODEN: ITJEA8
FEATURE PEER-REVIEWED ARTICLE
Vol.12(5) (2021) |
Macroeconomics Indicators & Financial Performance of Firms: A Study of the Sugar Industry in Pakistan
Khalil U Rehman (Department of Business Administration, University of Sindh, Badin, Sindh, PAKISTAN),
Ahsan-ul Haq Shaikh (Institute of Business Administration (IBA), University of Sindh, Jamshoro, Sindh, PAKISTAN),
AliRaza (Department of Business Administration, Near East University, North Cyprus Mersim, TURKEY),
Yasir Ali Soomro (Department of Marketing, Faculty of Economics and Administration, King Abdulaziz University, Jeddah, KINGDOM of SAUDI ARABIA).
Disciplinary: Macroeconomics and Financial Markets.
doi: 10.14456/ITJEMAST.2021.94
Keywords: Return On Assets (ROA); Inflation rate; Foreign Direct Investment (FDI); Profitability of sugar mill; GDP growth; Macroeconomic variables; Exchange rate; Interest rate; Sugar mill's financial performance; Inflation; Macroeconomic factor.
AbstractThis research assesses the impacts of major macroeconomic including interest rate, GDP growth, inflation rate, exchange rate, foreign direct investment on the financial performance of sugar mills of Pakistan. This study's conceptual framework includes the dependent variable of ROA of the sugar industry and the five variables including the GDP, rate of inflation, interest rate, exchange rate, and foreign direct investment as an independent variable. Ten-year panel data is compared across all 29 sugar mills listed at Pakistan Stock Exchange (PSX) for 2010-2019 via a multiple regression model. This study concluded varying degrees of impact of macroeconomic variables on the profitability of sugar mills of Pakistan. GDP growth showed a higher relationship with ROA (a proxy of profitability) but the relationship was negative. Interest rate, Exchange rate, and Inflation rate were found to have a negative association with ROA. However, FDI had no significant relationship. Certain macroeconomic indicators have a significant impact on the profitability of the sugar industry of Pakistan. Based on the results, mills must constantly monitor the interest rate, exchange rate and inflation rate because these variables are negatively affecting the sugar Mills' performance.Paper ID: 12A5J
Cite this article:
Rehman, K. U, Shaikh, A. H., AliRaza, and Soomro, Y. A. (2021). Macroeconomics Indicators & Financial Performance of Firms: A Study of the Sugar Industry in Pakistan. International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies, 12(5), 12A5J, 1-11. http://doi.org/10.14456/ITJEMAST.2021.94
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Other issues:
Vol.12(3)(2021)
Vol.12(2)(2021)
Vol.12(1)(2021)
Vol.11(16)(2020)
Vol.11(15)(2020)
Vol.11(14)(2020)
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