DETERMINANTS OF RETURN ON ASSETS OF NON-FINANCIAL FIRM OF MALAYSIA

To identify the determinants of return on assets of non-financial firms, and to examine how firms' different attributes affect the return on assets, this study uses a sample made up of 185 non-financial firms of Malaysia, covering the period 2005-2018. This paper uses ordinary least squire (OLS) and panel regression fixed effect, random effect model simultaneously. The results show the size of the board and board diversity exhibit insignificantly negative relationships with ROA in the Malaysian context, respectively. Financial leverage exhibit significant negatively influences the Malaysian non-financial firms. The dividend payout exhibit statistically significant and positive relationship with ROA in Malaysian non-financial firms, respectively. It is clearly stated that high ROAs lead the way in making good financial gains in Malaysia. However, board diversity negatively affects the ROA in Malaysian non-financial firm context, because most firms are family-owned. High dividend payout policy increases the ratio of return on assets, high dividend ratio attracts the more investment that upsurges the firm's value and growth. The findings of research have significant policy consequences. The research contributes to the return on assets literature by viewing at the position of return on assets and its determinants in selected non-financial firms of Malaysia. Disciplinary: Management and Financial Sciences. (c) 2020 INT TRANS J ENG MANAG SCI TECH.