Firm size, firm age and firm profitability: Evidence from China

Abstract

The purpose of this study is to investigate the relationship between firm size, firm age and firm profitability in China stock market. We use the data of all the public firms in China stock market from 2008 to 2018, and adopt the fixed effect model to examine these relationships. As a result, we find a positive relationship between firm size and profitability and a negative relationship between firm age and profitability, which is in consistent with some of the studies conducted in other countries. The study can contribute to the future studies in China by offering a good reference point for them, since there has been no research done in China on this exact topic, this research can also set up a comprehensive model for future studies.