المستخلص: |
This study was carried out with the aim of ascertaining influential factors determining profitability of publicly listed Saudi Arabian manufacturing firms during the period between 2009 and 2011.The research focused on answering the question of “What factors are determining the profitability of publicly listed Saudi Arabian manufacturing firms during the recent global financial crisis?”.The methodology foundations of this research report are rooted in the positivist school of thought therefore the research methodology consequently adopted a deductive approach and involved the application of quantitative research methods including a longitudinal research strategy. Correlation analysis was selected as the statistical analysis technique. The investigation included 12 publicly listed Saudi Arabian manufacturing firms operating in different industries. The investigation was limited to the performance of sampled firms for the years between 2009 and 2011. The main assumption was that firms’ profitability is a function of firms’ efficiency, assets, liquidity, size and leverage. The findings showed that among Saudi Arabian manufacturing profitability is established on the basis of efficiency, gearing and size of asset pools. The profitability equation is moderated by liquidity and sales. Thus, it is concluded that between Saudi Arabian manufacturing organisations, those that are profitable share the characteristics of being large and controlling costs effectively decreasing risk exposure.This implied that the organisational efficiency of Saudi Arabian manufacturing organisations is not the result of economies of scale as economies of scale are lost as sales increase.
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