Firm profitability is generally regarded as an important precondition for long-term firm survival and success; moreover, the variable significantly affects the firm’s achievement of other financial goals. Another factor explaining the importance of firm profitability is its effect on economic growth, employment, innovation, and technological change. However, due to increasing competition, improved efficiency, and pricing pressure, firms are experiencing greater difficulty attaining the required profitability. The question of what factors determine profitability should accordingly be one of high priority for both researchers and practitioners, including managers, investors, debt holders, and policy makers.
The current study addresses an issue that is relevant to various stakeholders, including managers, investors, and debt holders, and may facilitate further research in similar areas of small business studies. The empirical results from investigating a large sample of Palestinian micro firms in four industry sectors suggest that firm size, growth, influence negatively firm profitability, while firm age positively influences it. The findings further indicate that larger and younger firms with high productivity and growth are more likely to be profitable. The coefficients of all explanatory variables vary by industry, indicating profitability heterogeneities at the industry level.
Dear Zaqout
I guess it is your paper's abstract. You may add it to publication section.
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Jawad
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