Department of Accounting, University of Jaffna, Sri Lank
Online published on 5 December, 2019.
The objective of this study is to examine the influence of firm size on profitability of Sri Lankan diversified holdings companies listed in Colombo stock exchange. For this purposes, this study performed econometric estimation models and used the data for the five years time period from 2008. The study results indicate that firm size is positively related to profitability measure of return on assets. Further this study reveals those total debt ratio has a negative relationship with profitability. This study explores the influence of firm size on profitability of diversified holdings companies listed in Colombo stock exchange and laid some contribution to the obtainable literature as Sri Lankan firms’ context. Furthermore that observed findings might assist the corporate sector management as well as policy makers to take appropriate decisions. Based on the author's knowledge, this is the first study that discloses the influence of firm size on profitability of diversified holdings companies listed in Colombo stock exchange. Furthermore, influence of firm size on profitability is hazy; hence this research continues that search with the help of Sri Lankan companies of diversified holdings sector.
Firm size, Total dept, Growth rate, Profitability, Colombo stock exchange
