Abstract: This paper aims to examine the impact of company-specific and macro-level factors in determining the profitability of pharmaceutical companies in Bangladesh. The study takes a random sample of five listed pharmaceutical companies and covers the period 2008–2017. Research method for the study is a panel analysis. Based on the Hausman test, we have applied fixed effects model to estimate the relationship between independent and dependent variables. We have considered return on assets (ROA) as a measure of profitability. Company-specific factors in this study are company size and expense-to-revenue. On the other hand, we have taken GDP growth and rate of inflation as macro-level factors. The study finds statistical significance for all two macro-level variables while company-specific variables slightly miss the significance level. We have found positive correlation between GDP growth and profitability. On the other hand, expense-to-income and rate of inflation have negative relationship with profitability. Company size shows a negative correlation with profitability in our study.
S. M. Rifat Hassan & Sarah Muniyat (2019). Factors Influencing the Profitability of Pharmaceutical Companies in Bangladesh. International Conference on Business and Management, 770–773. Dhaka. ISBN: 978-984-344-3540.