STRATEGICALLY DETERMINANTS THE IMPACT OF MACROECONOMIC FACTORS ON PHARMACEUTICAL COMPANIES PROFITABILITY IN BANGLADESH
MD. SARIFUL ISLAM *
Independent Researcher, Master of Business Administration (MBA), Bangladesh.
MUHAMMED SAHAJALAL
Economic Relations Division, Bangladesh.
*Author to whom correspondence should be addressed.
Abstract
This study has empirically investigated the impact of macroeconomic factors on the performance of the pharmaceutical company’s profitability in Bangladesh. Data have been collected from four pharmaceutical companies in Bangladesh from the year 2000-2018. For analysis of data SPSS 22 has been used, and different statistical tools have used like, Descriptive Statistics, ANOVA, Regression, etc. Macroeconomic factors measured by Gross Domestic Product (GDP), Inflation rate (INF), Interest rate (IR), and Real exchange rate (RER), while company performance is indicated by Return on Asset (ROA). For this study, ROA has been selected as a Dependent variable and Gross Domestic Product (GDP) Inflation rate (INF), Interest rate (INT) and Real exchange rate (RER) selected as independent variables. ‘Multiple Linear Regression’ has been used to examine the degree of the relationship of macroeconomics factors towards the company’s performance. The results conclude that there has a positive relationship between GDP, INF, and RER with ROA but their relations are not statically significant. In the meantime, there is a significant negative correlation between INT and ROA as the p-value is less than the key level. Inflation rate which has been used as the substitute of macroeconomic variable, conversely influence on firm profitability and macroeconomic variable i.e., GDP growth rate has a positive consequence on the firm profitability.
Keywords: Return on Assets (ROA), Gross Domestic Product (GDP), Real Exchange Rate (RER), inflation rate, multiple linear regression
How to Cite
Downloads
References
Ismail N, Ishak I, Manaf NA, Husin MM. Macroeconomic factors affecting performance of insurance companies in Malaysia. Academy of Accounting and Financial Studies Journal. 2018;22(Special Issue).
Dewi VI, Soei CTL, Surjoko FO. The impact of macroeconomic factors on firms’ profitability (Evidence from Fast Moving Consumer Goods Firms Listed on Indonesian Stock Exchange). Academy of Accounting and Financial Studies Journal. 2019;22(1).
Islam MS. Strategically determinants the impact of macroeconomic factors on import expenditures in Bangladesh. The Business and Management Review. 2019;10(5):198-203.
Azizi S, Hosseninabdi V. A content analysis of the mission statements of Iran, Turkey, India and United States Pharmaceutical companies. Management & Marketing. 2014;XII:1.
Islam MS, Khan MS. The determinants of profitability of the pharmaceutical industry of Bangladesh: A random effect analysis. International Journal of Financial Research. 2019;02.
Rifat Hassan SM, SMR, Muniyat S. Factors influencing the profitability of pharmaceutical companies in Bangladesh. International Conference on Business and Management. 2019;770.