Analysis of the Performance of Courier Companies in Selected Listed Counters in Malaysia
Keywords:
Courier Companies, Performance Analysis, ProfitabilityAbstract
Over the past few years, the logistics industry has been growing exponentially since the presence of ecommerce. The development of online sales has played a vital role in increasing the number of courierservice providers across the region. It is interesting to explore the aspects that affect the success of
courier firms, which can have a greater impact on the profitability of the companies. As a result, the
primary objective of this study is set to examine the elements that affect the companies’ profitability in
the logistics industry over an eight-year period (2014-2020). There are six publicly traded companies
in Malaysia’s logistics industry that have been included in the sample. Considering that logistics is a
critical component of the companies’ competitiveness and profitability, and that logistics is one of the
most profitable businesses, this study has used the Random Effects Model to analyse profitability. The
variables involved in this investigation are firm size, liquidity, leverage, inflation rate, and
unemployment rate. The obtained results have shown that firm size, liquidity, and leverage are the
positive and significant variables, while inflation is positive but not significant towards profitability.
However, the unemployment factor is negative but significant towards the profitability of the selected
Malaysian courier companies. Given that an efficient planning system and managing and controlling
the logistics system as the significant determinants of the profitable business operations, the findings
provide guidance for boosting profitability and enhancing the performance of the logistics
organisations.
References
Abdul Manaf, S. M., Ahmad Kamshor, N. H. A., & Salleh, W. A. (2021). Determinants of profitabilityon listed telecommunications service providers companies: Evidence in Bursa Malaysia. Journalof Research in Business and Management, 9(1), 22–28.
Aghaee, M. A., & Kazempour, M. (2013). A study on relationship between inflation rate and changesin profitability ratios in Tehran Stock Exchange. Management Science Letters, 3, 2787–2794.https://doi.org/10.5267/j.msl.2013.09.031
Akinlo, O., & Asaolu, T. (2012). Profitability and leverage: Evidence from Nigerian firms. Journal of Business Research, 6(1), 17–25. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1945956
Alarussi, A. S., & Alhaderi, S. M. (2018). Factors affecting profitability in Malaysia. Journal of Economic Studies, 45(3), 442–458. https://doi.org/10.1108/JES-05-2017-0124
Attari, M. A., & Raza, K. (2012). The optimal relationship of cash conversion cycle with firm size andprofitability. International Journal of Academic Research in Business and Social Sciences, 2(4),189–203.
Boadi, E. K., Antwi, S., & Lartey, V. C. (2013). Determinants of profitability of insurance firms in Ghana. International Journal of Business and Social Research, 3(3), 43–50.https://doi.org/10.18533/ijbsr.v3i3.231
Bolek, M. (2013). Profitability as a liquidity and risk function basing on the new connect market in Poland. European Scientific Journal, 9(28), 1–15.
Doğan, M. (2013). Does firm size affect the firm profitability? Evidence from Turkey. Research Journalof Finance and Accounting, 4(4), 53–60.
Gatsi, J. G., & Gadzo, S. G. (2013). Determinants of capital structure of insurance companies in Ghana. Global Journal of Finance and Management, 5(2), 79–86.
Gil-García, J. R., & Puron-Cid, G. (2014). Using panel data techniques for social science research: Anillustrative case and some guidelines. Ciencias Sociales, 21(3), 203–216.
Jureviciene, D., & Doftartaite, D. (2013). Commercial banks’ activity dependence on macroeconomicindicators. European Scientific Journal, 9(31), 173–184.
Mukhopadhyay, A., & AmirKhalkhali, S. (2010). Profitability performance and firm size-growthrelationship. Journal of Business & Economics Research, 8(9), 121–126.
Ologbenla, P. (2018). Impact of liquidity management on the performance of insurance companies in Nigeria. IOSR Journal of Economics and Finance, 9(1), 40–45. https://doi.org/10.9790/5933-0901034045
Ondigi, A., & Willy, M. (2016). Factors affecting profitability of insurance firms: Case of firms listedon Nairobi Securities Exchange. International Journal of Economics, Commerce and Management, 4(9), 286–298.
Rauličkis, D., & Jurevičienė, D. (2018). Leading indicators’ applicability to forecast profitability ofcommercial bank: Case study from Lithuania. Trends Economics and Management, 31(1), 71–85.https://doi.org/10.13164/trends.2018.31.71
Samsuri, N. (2017). Affin Bank performance: Relationship liquidity ratio, leverage ratio and GDP toprofitability. MPRA, 78545, 1–11.
Saripalle, M. (2018). Determinants of profitability in the Indian logistics industry. International Journalof Logistics Economics and Globalisation, 7(1), 13. https://doi.org/10.1504/ijleg.2018.10011605
Škulánová, N. (2020). Impact of selected determinants on the financial structure of the miningcompanies in the selected countries. Review of Economic Perspectives, 20(2), 197–215.https://doi.org/10.2478/revecp-2020-0009
Soeharjoto, Tribudhi, D. A., Hariyanti, D., & Tajib, E. (2020). Internal and external factor that influenceliquidity: Case of conventional banks in Indonesia. International Journal of Scientific and Technology Research, 9(3), 7066–7070.
Vuković, B., Milutinović, S., Mirović, V., & Milićević, N. (2020). The profitability analysis of thelogistics industry companies in the Balkan countries. Promet-Traffic & Transportation, 32(4),497–511. https://doi.org/10.7307/ptt.v32i4.3311
Wang, M., Jie, F., & Abareshi, A. (2015). Evaluating logistics capability for mitigation of supply chain uncertainty and risk in the Australian courier firms. Asia Pacific Journal of Marketing and Logistics, 27(3), 486–498. https://doi.org/10.1108/APJML-11-2014-0157
Wang, M., Jie, F., & Abareshi, A. (2018). Logistics capability, supply chain uncertainty and risk, andlogistics performance: An empirical analysis of Australian courier industry. Operations and Supply Chain Management, 11(1), 45–54. https://doi.org/10.31387/oscm0300200
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Suhaily Maizan Abdul Manaf, Nur Shafini Mohd Said, Nur Dalila Adenan
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
