Company Size and Growth on Profitability: A Comparative Study in 5 ASEAN Countries

David Santoso, Hersugondo Hersugondo
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Abstract

Objective –This study investigates the correlation between a firm's size and its growth with respect to profitability. It subsequently incorporates various firm-specific variables, including leverage and asset tangibility, as well as macroeconomic indicators.Design/Methodology –Employing a quantitative research approach, this study utilizes annual data spanning the years 2017 to 2021. The research focuses on listed companies within the ASEAN region, namely Indonesia, the Philippines, Malaysia, Vietnam, and Singapore. The primary data sources comprise the Bloomberg and COMPUSTAT Global databases. Using the fixed effect model, the study includes a total of 145 listed companies, resulting in 725 firm-year observations.Results –This study found that there is evidence of an insignificant negative relationship between size and profitability, while the relationship between growth and profitability is found to be positive and significant. This suggests that the phenomenon of economies of scale is still in place, but in the long run it might be replaced by the diseconomies of scale.Research limitations/implications – The study contributes to a nuanced understanding of relationships between variables within each country. However, the study does not use all companies from each respective country. Novelty/Originality –This study employs a unique methodology by drawing samples from five distinct ASEAN countries. It conducts an integrated analysis encompassing both a collective examination and individual assessments of these countries. By adopting such a comprehensive strategy, this research aims to provide a more holistic perspective on the intricate relationships under investigation.
公司规模与成长性对盈利能力的影响:东盟五国的比较研究
目的-本研究调查了公司规模与盈利能力增长之间的关系。随后,它纳入了各种公司特定变量,包括杠杆率和资产有形性,以及宏观经济指标。设计/方法-本研究采用定量研究方法,利用2017年至2021年的年度数据。研究的重点是东盟地区的上市公司,即印度尼西亚、菲律宾、马来西亚、越南和新加坡。主要数据源包括Bloomberg和COMPUSTAT Global数据库。采用固定效应模型,研究共纳入145家上市公司,得到725家公司年观察结果。结果-本研究发现,有证据表明规模和盈利能力之间存在不显著的负相关关系,而增长和盈利能力之间存在显著的正相关关系。这表明,规模经济现象仍然存在,但从长远来看,它可能会被规模不经济所取代。研究局限性/影响-该研究有助于对每个国家内部变量之间的关系进行细致入微的理解。然而,这项研究并没有涉及每个国家的所有公司。新颖性/原创性-本研究采用独特的方法,从五个不同的东盟国家抽取样本。它对这些国家进行综合分析,包括集体审查和个别评估。通过采用这种全面的策略,本研究旨在为所调查的复杂关系提供更全面的视角。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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