Profitability, Sales, Operating, Financing and Investing in Information Technology Firms

摘要

This paper intends to examine the relationship of sales, operating, financing and investing activities to the profits of the public listed ICT firms in Singapore. Different with literatures, this paper contribute in filling the gaps with the objective of exploring the impact of sales,operating, financing and investing activities to information technology firms in Singapore due to ICT firms are the stimulation of the economic growth in this knowledge-based country. The panel data in 40 ICT firms found in Singapore indicates that the existence of positive relationship amongoperating activities and financing activities towards the earnings. Conversely, the result postulates insignificant relationship between sales and investment activities towards the profitability of the firms. The outcomes suggest that the management has to constantly check the companies’efficiency and effectiveness by analysing and monitoring the production system or services provided to the customers, and plan out necessary operating strategy in accomplishing the goals and profits of the firms. Furthermore, ICT firms face an exclusive set of challenges in choosing the appropriatefinancing to involve in R&D and produce more innovative goods and services. Government regulatory and institutional frameworks should facilitate connections between science and industry, and encourage the human capital by more trainings, as well as public support for the basic R&Dactivities to augment the productivity, efficiency and effectiveness of ICT firms.