Open AccessFirm Size, Firm Age, and Firm Profitability: Evidence from China
Author(s) -
Md Jahidur Rahman,
Liu Yilun
Publication year - 2021
Publication title -
journal of accounting-business dan management/journal of accounting, business and management
Language(s) - English
Resource type - Journals
eISSN - 2622-2167
pISSN - 0216-423X
DOI - 10.31966/jabminternational.v28i1.829
Subject(s) - profitability index , china , business , stock market , stock (firearms) , point (geometry) , industrial organization , econometrics , economics , financial economics , finance , mechanical engineering , paleontology , geometry , mathematics , horse , political science , law , biology , engineering
This study aims to investigate the relationship among firm size, firm age, and firm profitability in China’s stock market. We use data from all the public firms in China’s stock market from 2008 to 2018 and adopt a fixed effects model to examine these relationships. We find a positive relationship between firm size and profitability and a negative relationship between firm age and profitability, which is consistent with existing studies conducted in other countries. The findings of our study can contribute to future research in China by offering a sound basis and appropriate reference point, given that no previous research has been conducted in China on this exact topic. This study also offers a comprehensive model for use in future studies.