Determinants of Firm Financial Performance : Study on Sgar Industry

Abstract

Main purpose of this research study is to evaluate and investigate the determinants of firm financial performance in sugar industry of Pakistan by using the statistical method which includes the multiple regression, correlation and descriptive statistics. For the analysis of sugar industry performance the research use the five variables one is dependent that is profitability and other four are independent which include the leverage, liquidity, size and sales. The data use for this purpose in this research study is secondary based that is collected form published annual report of Karachi stock exchange that is related to 2010-2014. Eight sugar companies have been chosen purposively in KSE listening as on 31st December 2014.profitability of the eight sugar mills have been examine by using multiple regression modal. This research study is emphasis and concentrated on relationship among profitability, leverage liquidity, size, and sale. It is observed the relationship of leverage and liquidity is negatively associated with the profitability that is paid positive impact on the firm profitability. On the other side the relationship of sales and size also negatively associated with the profitability that means the financial performance of the sugar firms are decreasing day by day. The study also find out about asset utilization and firm leverage that effect on firm financial performance and the result of the study shows the negative relationship of asset utilization with the firm leverage. The result of this research study revel that overall profitability of Adam sugar mill, Chama sugar mill, Khanpur sugar mill, Mairpurkhas sugar mill, Haseeb Waqas sugar mill, Sanghar sugar mill and Husein sugar mill ltd is satisfactory.