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Inflation and companies’ performance: a crosssectional analysis

Inflation is a major problem in many countries because during inflation, the purchasing power of money declines as the prices of goods and services increase. The impact of inflation affects the profits by reacting on sales volume and also influencing the level of costs. Manufacturing companies play...

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Main Authors: Ali, Maimunah, Ibrahim, Patmawati
Format: Article
Published: American Scientific Publishers 2018
Subjects:
TS Manufactures
Online Access:http://eprints.uthm.edu.my/5922/
https://doi.org/10.1166/asl.2018.11694
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spelling my.uthm.eprints.59222022-01-25T00:26:56Z http://eprints.uthm.edu.my/5922/ Inflation and companies’ performance: a crosssectional analysis Ali, Maimunah Ibrahim, Patmawati TS Manufactures Inflation is a major problem in many countries because during inflation, the purchasing power of money declines as the prices of goods and services increase. The impact of inflation affects the profits by reacting on sales volume and also influencing the level of costs. Manufacturing companies play an important role and have large influence on the Malaysian economy for the past three decades because it contributes almost 80% of overall country’s export. Company’s performance can be indicated by the gross profits obtained from the comprehensive income statement of the company. Manufacturing companies need to be aware of the impact of inflation to sustain the manufacturing company’s performance. Therefore, the aim of this study is to analyze whether there is a significant impact of inflation on manufacturing companies’ performance in Malaysia. Cross-sectional study will be used in this study. Fifty manufacturing companies will be chosen based on the population. Cluster random sampling is going to be used in this study along with correlation analysis, to understand how changes in gross profit is affected by the rate of inflation. The finding of research shows that there is a positive relationship between gross profit and inflation rate. This indicates inflation in fact contributed to a higher earning in manufacturing companies instead of lowering profits American Scientific Publishers 2018 Article PeerReviewed Ali, Maimunah and Ibrahim, Patmawati (2018) Inflation and companies’ performance: a crosssectional analysis. Advanced Science Letters, 24 (6). pp. 4750-4755. ISSN 1936-6612 https://doi.org/10.1166/asl.2018.11694
institution Universiti Tun Hussein Onn Malaysia
building UTHM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Tun Hussein Onn Malaysia
content_source UTHM Institutional Repository
url_provider http://eprints.uthm.edu.my/
topic TS Manufactures
spellingShingle TS Manufactures
Ali, Maimunah
Ibrahim, Patmawati
Inflation and companies’ performance: a crosssectional analysis
description Inflation is a major problem in many countries because during inflation, the purchasing power of money declines as the prices of goods and services increase. The impact of inflation affects the profits by reacting on sales volume and also influencing the level of costs. Manufacturing companies play an important role and have large influence on the Malaysian economy for the past three decades because it contributes almost 80% of overall country’s export. Company’s performance can be indicated by the gross profits obtained from the comprehensive income statement of the company. Manufacturing companies need to be aware of the impact of inflation to sustain the manufacturing company’s performance. Therefore, the aim of this study is to analyze whether there is a significant impact of inflation on manufacturing companies’ performance in Malaysia. Cross-sectional study will be used in this study. Fifty manufacturing companies will be chosen based on the population. Cluster random sampling is going to be used in this study along with correlation analysis, to understand how changes in gross profit is affected by the rate of inflation. The finding of research shows that there is a positive relationship between gross profit and inflation rate. This indicates inflation in fact contributed to a higher earning in manufacturing companies instead of lowering profits
format Article
author Ali, Maimunah
Ibrahim, Patmawati
author_facet Ali, Maimunah
Ibrahim, Patmawati
author_sort Ali, Maimunah
title Inflation and companies’ performance: a crosssectional analysis
title_short Inflation and companies’ performance: a crosssectional analysis
title_full Inflation and companies’ performance: a crosssectional analysis
title_fullStr Inflation and companies’ performance: a crosssectional analysis
title_full_unstemmed Inflation and companies’ performance: a crosssectional analysis
title_sort inflation and companies’ performance: a crosssectional analysis
publisher American Scientific Publishers
publishDate 2018
url http://eprints.uthm.edu.my/5922/
https://doi.org/10.1166/asl.2018.11694
_version_ 1738581431475503104
score 13.211869

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