Factors of Profitability of Indian Firms Listed in BSE

Abstract

A primary goal of this study was to find out the profitability components of specific companies-related financial factors for Indian companies listed in BSE (formerly Bombay Stock Exchange). The research period was limited to 2009-10 to 2018-19 and a span of ten years and forty non-banking and financial companies. The necessary data is dynamic panel in nature; therefore, it was examined for a dynamic panel regression model. According to the findings, business size and growth are the most important determinants of profitability. Furthermore, company size is inversely linked to profitability, while growth is related to the fluctuation of profit rate of the companies listed in BSE. Other factors such as liquidity, risk and leverage are negatively influences on profit fluctuation in this ratio, and the result is statistically insignificant.