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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Determinants of Financial Performance Evidence from the Leading US Technology Companies

Antonela Bichir, Danut Georgian Mihai, Catalina Ioana Toader

http://dx.doi.org/10.6007/IJARAFMS/v14-i3/21877

Open access

The technology sector's dynamic nature highlights its critical role in promoting innovation and economic progress. This article seeks to provide stakeholders with important insights by carefully examining and identifying the critical elements affecting the prosperity and profitability of top technology companies in the United States. For investors, legislators, and corporate executives looking to improve organizational performance and maintain competitive advantages in a market that is changing quickly, understanding these aspects is crucial. Using extensive information from Thomson Reuters and Morningstar, our research centers on 20 leading US IT businesses between 2013 and 2022. We investigate the financial standing, research approaches, and performance measures that characterize business success in this industry through an empirical analysis. We evaluated different influences on return on assets, equity, and other variables using nine econometric models. The results show that competitive advantages, creative goods or services, and successful marketing tactics have a greater influence on financial performance than supplier payment timelines. More specifically, technology companies' financial results are not much impacted by the pace at which suppliers pay. These revelations emphasize how crucial marketing and strategic innovation are to attaining better results. All things considered, our study highlights the crucial factors that propel success in the technology industry and provides useful advice for raising profitability and maintaining expansion. Policymakers, investors, and industry experts gain from this study's improved understanding of the elements that support technology businesses' strong performance.

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(Bichir et al., 2024)
Bichir, A., Mihai, D. G., & Toader, C. I. (2024). Determinants of Financial Performance Evidence from the Leading US Technology Companies. International Journal of Academic Research in Accounting Finance and Management Sciences, 14(3), 1–15.