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The causes of profitability: a panel study of Indian IT and consulting sector

The causes of profitability: a panel study of Indian IT and consulting sector The paper uses several profit methods to examine the factors of profitability for the Indian IT and consulting sector. This reading aims to detect the association between the activity ratio or turnover ratio and the profitability of the Indian IT and consulting sector over the past seven years, from April 2012 to March 2018. The data were then analysed with a descriptive research technique of panel data regression and verified with Hausman's measurement, a widely used technique for selecting the panel effect. Working capital turnover was statistically significant against the profitability of the Indian IT and consulting sector. However, assets turnover and debtor turnover ratio were statistically insignificant with the profit margin. This research will support the company's internal management, auditors, policymakers, financial executives, and investors in making investment decisions. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Accounting, Auditing and Performance Evaluation Inderscience Publishers

The causes of profitability: a panel study of Indian IT and consulting sector

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Publisher
Inderscience Publishers
Copyright
Copyright © Inderscience Enterprises Ltd
ISSN
1740-8008
eISSN
1740-8016
DOI
10.1504/ijaape.2022.126878
Publisher site
See Article on Publisher Site

Abstract

The paper uses several profit methods to examine the factors of profitability for the Indian IT and consulting sector. This reading aims to detect the association between the activity ratio or turnover ratio and the profitability of the Indian IT and consulting sector over the past seven years, from April 2012 to March 2018. The data were then analysed with a descriptive research technique of panel data regression and verified with Hausman's measurement, a widely used technique for selecting the panel effect. Working capital turnover was statistically significant against the profitability of the Indian IT and consulting sector. However, assets turnover and debtor turnover ratio were statistically insignificant with the profit margin. This research will support the company's internal management, auditors, policymakers, financial executives, and investors in making investment decisions.

Journal

International Journal of Accounting, Auditing and Performance EvaluationInderscience Publishers

Published: Jan 1, 2022

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