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...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Published: |
American Scientific Publishers
2018
|
| Subjects: | |
| Online Access: | http://eprints.uthm.edu.my/5922/ https://doi.org/10.1166/asl.2018.11694 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1833417969298833408 |
|---|---|
| author | Ali, Maimunah Ibrahim, Patmawati |
| author_facet | Ali, Maimunah Ibrahim, Patmawati |
| author_sort | Ali, Maimunah |
| building | UTHM Library |
| collection | Institutional Repository |
| content_provider | Universiti Tun Hussein Onn Malaysia |
| content_source | UTHM Institutional Repository |
| continent | Asia |
| country | Malaysia |
| 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 |
| id | my.uthm.eprints-5922 |
| institution | Universiti Tun Hussein Onn Malaysia |
| publishDate | 2018 |
| publisher | American Scientific Publishers |
| record_format | eprints |
| 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 |
| spellingShingle | TS Manufactures Ali, Maimunah Ibrahim, Patmawati Inflation and companies’ performance: a crosssectional analysis |
| title | 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_short | Inflation and companies’ performance: a crosssectional analysis |
| title_sort | inflation and companies’ performance: a crosssectional analysis |
| topic | TS Manufactures |
| url | http://eprints.uthm.edu.my/5922/ https://doi.org/10.1166/asl.2018.11694 |
| url_provider | http://eprints.uthm.edu.my/ |