Determinants of Return on Assets

Abstract

The objective of this study is to examine the Determinants of ROA in the cement industry in Pakistan from 2013-2017. The quantile regression is run at different quantiles in Stata 12. The policy makers of cement industry must realize that the capital structure has negative impact on return on assets. The tangibility also has negative impact at 0.80 quantile and 0.90 quantile, so the policy makers must have to look their assets strength in order to gauge the return on assets. Finally the size is highly significant at 0.80 quantile and 0.90 quantile and has been found as positive determinant of return on assets.