Title: Panel data investigation of determinants of profitability: evidence from Indian corporate sector

Authors: Rakshika Gupta; Supran Kumar Sharma; Jyoti Sharma

Addresses: Shri Mata Vaishno Devi University, Katra, India ' Shri Mata Vaishno Devi University, Katra, India ' Shri Mata Vaishno Devi University, Katra, India

Abstract: The study uncovers the role of factors like size, liquidity, tangibility, firm age, asset turnover, capital structure, technical efficiency and its components on the level of profitability of the selected firms listed in S&P Index of Bombay Stock Exchange of India. The return on equity (ROE) and return on assets (ROA) have been employed as proxies of profitability. Quantitative research methods including panel regression models of random and fixed effects as well as data envelopment analysis based technical efficiency have been estimated to reveal the impact of aforementioned factors onprofitability of selected firms. The study recommends that tangibility, asset turnover, firm size, firm age and capital structure are significant on statistical ground for ROA whereas in case of ROE, capital structure, firm size, asset turnover and firm age are established as critically significant factors. The results also highlight that higher scale technical efficiency may ends in poorer profitability.

Keywords: firm age; profitability; liquidity; return on equity; return on assets; panel data.

DOI: 10.1504/IJBIR.2025.146998

International Journal of Business Innovation and Research, 2025 Vol.37 No.3, pp.287 - 307

Received: 17 Jul 2021
Accepted: 02 Jul 2022
Published online: 10 Jul 2025 *

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