A Systematic Literature Review on Critical Analysis of Profitability Ratio of Telecommunication Sector
DOI:
https://doi.org/10.55544/ijrah.6.2.1Keywords:
Telecommunication, Profitability, Revenue, EconomicsAbstract
This paper examines the macroeconomic factors influencing the profitability performance of private telecommunication firms. This study has been motivated by the declining profitability performance of private telecommunication firms, which has been attributed to the decreasing return on assets. The findings suggest that leverage has a significant and negative relationship with return on assets, while liquidity has a negative and insignificant relationship towards the firms’ profitability. On the other hand, firm size and gross domestic product have a substantial and positive relationship with return on assets. Moreover, the findings seemed to suggest that the bigger the size of a firm, the higher the total assets would be, which in turn would improve the firm’s profitable performance. In sum, the prerequisite attribute that a telecommunication firm needed to possess in attaining high profitability performance was its strong and high productivity in the management of its total assets and this paper investigates the key determinants of telecommunications industry reforms in developing countries, focusing on liberalization, privatization, and regulation restructuring. It estimates the extent to which these policies have translated into actual infrastructure deployment.
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