Page 116 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.80, # 1, 2023, pp. 106-118

RESULTS AND RECOMMENDATIONS

The findings of this study have important policy implications for firms. First of all,
the study discovered that performance improved with higher investment decision, and
financial leverage. In order to maximize profitability, the study advises corporate
managers to allow for new opportunities in order to be more innovative, which will
lead to new investments, financial leverage - in particular, their debt-to-equity ratio
and liquidity ratios and new investments. Secondly, in order to boost performance as
indicated by return on equity, management of NYSE listed companies should pursue
a conservative financing strategy. As a result, the management of the companies listed
on the NYSE should focus on financing assets more frequently with long-term
liabilities. This is because the study shows that, in contrast to the use of short-term
financing, the use of greater long-term financing increases return on equity.

Limitations of the study
Many difficulties were encountered over the course of the study. The study only
covered a 3-year span, from 2020 to 2022, hence its conclusions are only valid for
those three years. As a result, they may not be generalizable to other periods of time.
It may not be possible to accurately depict the situation in the nation at all times based
solely on the three years examined because changes over time are possible. The
relationships in the study's model are further indicated as being merely from the
perpectives of three variables; however, other attributes that can affect profitability
have not been taken into account.

Recommendations for further study

There is need to conduct a similar study over a longer time span. This is on the
assumption that data collected over a longer period of time will yield outcomes that
are superior to those of the results given in this study. The potential for greater
objectivity that emerges from the sample period may be resolved over a longer length
of time. It is also advised to conduct a causality analysis in order to identify the root
reasons of the associations' observable between independent and dependent variables.

REFERENCES
Achmad and Amanah. (2014). “The Influence of Investment Decisions, Funding
Decisions, Dividend Policy and Financial Performance on Value of Company".
Journal of Accounting Science & Research Vol.3 No.9

Amarudin, Adam, M., Hamdan, U., and Hanafi, A. (2019). Effect Of Growth
Opportunity, Corporate Tax, And Profitability Toward Value of Firm Through
Capital Structure (Listed Manufacturing Companies of Indonesia). Finance:
Theory and Practice, 23(5), 18–29.

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