EFFECT OF FREE CASH FLOWS, CAPITAL LIQUIDITY & SIZE OF THE FIRM ON FIRM'S

Abstract

Reason of the study: The purpose of this study is to investigate the effect, impacts of the free cash flows, size of the firm and capital liquidity to the profitability of the firm in sugar sector of Pakistan. Films under financing and invest sector were not considered. This research is based on the firms which comes under manufacturing sector. Methodology: This research is descriptive, where the secondary data is utilized, the data is extracted from the financial statement of the companies, and the year was from (2014-2009). Data was sorted clean and analysis from Eviews. The data is tested through regression analysis and checking the long term relationship between the dependent and independent variables; hence to test the impact of the independent variables firm size, Free Cash Flows, Capital Liquidity on the dependent variable profitability. Findings: The results of this research study clearly indicates through descriptive statistics that the dependent variable profitability and its independent variables Free Cash Flows, Capital Liquidity and Size ofthe firm have a strongly insignificant impact on the profitability ofthe firm.