Abstract

The aim of this research was to explore the connection between the firm size and the profitability of Ghana Stock Exchange GSE listed non financial companies. The research used panel data obtained from 15 listed non financial firms audited annual reports for the period 2010 to 2017. The descriptive and inferential procedures of data analyses through the use of STATA version 15 software package with a 5 level of significance p=0.05 , was adopted for the study. The research evaluated the companys profitability through Return on Assets ROA , Return on Equity ROE , and Earnings Per Share EPS , while the companys size SZ was the natural log of total assets. The Pearson Product Moment Correlation analysis was adopted for the study. The results of the study indicated that there was a positive but insignificant association between firm size SZ and the profitability of the companies as measured by ROA. Again, profitability proxied by ROE had insignificant negative affiliation with firm size SZ . Finally, profitability measured by earnings per share EPS had a significant negative connection with the firm size SZ . There is a need for companies to improve their profitability in the essentials of client base, net assets, sales volume, and market share to boost their size. Increasing the size of the companies will not only increase them in terms of profitability but will also help them achieve a competitive advantage over others as bigger companies are anticipated to be more effective than their lower counterparts and have better funds to survive financial downturns. Takyi Kwabena Nsiah | Cheng Li Mei | Ran Kwabena Fosu Sarpong | Raphael Amoakoh Addai "Does Firms Size Matter? An Empirical Evidence from Non-Financial Institutions (NFIS) Listed on the Ghana Stock Exchange (GSE)" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-6 , October 2019, URL: https://www.ijtsrd.com/papers/ijtsrd27952.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/27952/does-firms-size-matter-an-empirical-evidence-from-non-financial-institutions-nfis-listed-on-the-ghana-stock-exchange-gse/takyi-kwabena-nsiah

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