Profitability is an important characteristic of a company and is often viewed as an essential requirement for a company’s long term survival. High profitability indicates that the company is successful and it conveys as a positive signal to investors, hence increasing the company’s value. Therefore, the main objective for this study is to determine the effect of several selected firm-level factors on profitability performance of technology companies listed on ACE Market of Bursa Malaysia. Data were collected from 20 companies for the period 2016-2020. Return on asset (ROA) was used as the proxy for profitability. The findings revealed that liquidity ratio (LR) has a significant positive relationship with ROA and average collection period (ACP) was negatively and significantly related to ROA. The findings provide valuable insights for the equity market investors to acknowledge the factors which relate to the profitability of technology companies listed on the ACE market.
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In-Text Citation: (Latif et al., 2022)
To Cite this Article: Latif, R. A., Isa, M. A. M., Zaharum, Z., and Baharudin, A. M. (2022). Profitability Determinants of Technology Companies: A Study From ACE Market of Bursa Malaysia. International Journal of Academic Research in Business and Social Sciences. 12(6), 751– 761.
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