Does The Size Of A Firm Affect Its Profit? Evidence from Turkey, UK and Germany (Research Proposal Sample)

Does The Size Of A Firm Affect Its Profit? Evidence from Turkey, UK and Germany
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Abstract
Past researches are associated with conflict results regarding the impact of firm’s size on profitability. This study aims at investigating the effect of the size of a firm on profitability. The study focuses on manufacturing firms in Turkey, United Kingdom, and Germany. The study will be based on a quantitative research method in which relevant second data relating to firm’s size (total assets and market capitalization) and profitability (return on asset) will be collected from the websites of Istanbul Stock Exchange, London Stock Exchange and Frankfurt Stock Exchange. Ordinary Least Squares regression method will be used to analyze the data in line with the research aim. The results of the study will contribute to the existing literature on the effect of firm’s size on profitability. The study will be beneficial to business owners and management in the manufacturing sector as regards the manipulation of firm’s size so as to enhance profitability. The government can also establish favorable policies that influence firm’s size in a way that improves profitability of the manufacturing sector so as to experience improved tax collection.
1.0 Introduction
This study aims at investigating the effect of firm’s size on profitability. The study will focus on manufacturing firms in Turkey, United Kingdom and Germany. The manufacturing firms are chosen in this study so as to control for industry-specific factors that may impact the profitability of businesses operating in different industrial sectors.
1.1 Research Questions
In order to fulfill the research aim of this study, the following research question is established. This research question is anchored on the aim of the study, which is to evaluate the firm’s size effect on profitability.
1 What type of a relationship exists between firm’s size and profitability?