Factors affecting Return on Assets of Finnish listed companies on Nasdaq Helsinki

Abstract

The main purpose of this thesis is to examine the impact of Company Size, Liquidity (Current ratio), Solvency (Debt ratio), Tangibility (Fixed assets to total assets ratio), and Growth rate (Revenue growth) on Return on Assets of Finnish listed companies on Nasdaq Helsinki during 2016 to 2019. Data sample of 110 Finnish listed companies on Nasdaq Helsinki during 2016 to 2019 is analyzed by quantitative study including purposive sampling technique in the data collection process. All of the data used for analyzing is acquired from consolidated financial statements of mentioned companies. With the aim of revealing the relationships between selected variables, the author uses multiple regression analysis to evaluate hypotheses. During this thesis, all of the regression analysis is conducted with SPSS software. The result obtained from this research shows that Current Ratio, and Debt ratio are statistically significant to Return on Assets, while the remaining variables have no influence on Return on Assets.