Abstract

The purpose of this study is to examine the relationship between the current ratio (CR), debt to equity (DE), total asset turnover (TATO), and total asset (TA) ratios with firm performance, return on asset (ROA) for firm listed in consumer product sectors in Malaysia during the period of 2006-2015. This study uses secondary data and the population of companies used include consumer products companies that have listed in Bursa Saham Malaysia. Furthermore, the results are conducted using static panel regression. Based on panel data analysis, this findings showed the determinants factors such as financial leverage, financial efficiency, financial liquidity and size of firm are significantly related to profitability of the firm. In addition, financial efficiency, financial liquidity, and size of firm are significantly and have a positive relationship to the profitability of the firm. Furthermore, financial leverage has a negative relationship with the profitability of the firm. So, means that, financial efficiency, financial liquidity and size of firm are drivers of profitability while financial leverage has a negative influence in consumer product sectors.

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