Skip to main content
placeholder image

Profitability analysis of listed manufacturing companies in Sri Lanka and Malaysia: An empirical investigation

Conference Paper


Download full-text (Open Access)

Abstract


  • This paper uses empirical data on 161 listed manufacturing companies in Sri Lanka

    and Malaysia over the period of 2006 to 2008, and compares the performance of these

    companies against two commonly used financial performance indicators: Return on

    Assets (ROA) and Return on Equity (ROE). The results indicate that during this period

    Sri Lankan manufacturing companies were considerably more profitable than their

    counterparts in Malaysia in terms of ROA but less profitable in terms of ROE. It also

    identifies a relatively weaker position of equity investments in the manufacturing sector

    of Sri Lankan companies and attributes this to a number of factors, including: a

    relatively poor equity market, high interest rates, and excessive fear of high-risk

    investment. A similar trend was observed when the profitability and equity of

    companies were analysed by industry.

Publication Date


  • 2009

Citation


  • De Zoysa, A., Manawaduge, A. S. & Chandrakumara, P. (2009). Profitability analysis of listed manufacturing companies in Sri Lanka and Malaysia: An empirical investigation. Asian Academy of Applied Business Conference (pp. 34-43). Makati City, The Philippines: Asian Academy of Applied Business.

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=2204&context=commpapers

Ro Metadata Url


  • http://ro.uow.edu.au/commpapers/1155

Start Page


  • 34

End Page


  • 43

Place Of Publication


  • http://www.ums.edu.my/spe/aaabconference2009/

Abstract


  • This paper uses empirical data on 161 listed manufacturing companies in Sri Lanka

    and Malaysia over the period of 2006 to 2008, and compares the performance of these

    companies against two commonly used financial performance indicators: Return on

    Assets (ROA) and Return on Equity (ROE). The results indicate that during this period

    Sri Lankan manufacturing companies were considerably more profitable than their

    counterparts in Malaysia in terms of ROA but less profitable in terms of ROE. It also

    identifies a relatively weaker position of equity investments in the manufacturing sector

    of Sri Lankan companies and attributes this to a number of factors, including: a

    relatively poor equity market, high interest rates, and excessive fear of high-risk

    investment. A similar trend was observed when the profitability and equity of

    companies were analysed by industry.

Publication Date


  • 2009

Citation


  • De Zoysa, A., Manawaduge, A. S. & Chandrakumara, P. (2009). Profitability analysis of listed manufacturing companies in Sri Lanka and Malaysia: An empirical investigation. Asian Academy of Applied Business Conference (pp. 34-43). Makati City, The Philippines: Asian Academy of Applied Business.

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=2204&context=commpapers

Ro Metadata Url


  • http://ro.uow.edu.au/commpapers/1155

Start Page


  • 34

End Page


  • 43

Place Of Publication


  • http://www.ums.edu.my/spe/aaabconference2009/