Business Seem to Be Doing Their Share

Abstract

Purpose - This paper develops a discussion looking at the correlation between revenue as the independent variable and profit at two levels (EBIT and NPAT).Design/methodology/approach - This study entails Australia, The United States of America and The United Kingdom.The data collected is from public listed corporations from 2000 - 2010 for the development of multivariate regression models for parametric data. These developed models are constructed to test relationships between dependant and independent variables in line with research questions and hypotheses.Findings - The findings found that there is a high correlation using the adjusted R2 measure between revenue and profit.Originality/value - The paper will be of vital importance to other academics looking at this question, and to both public and private sector entities.