||Investigating the Factors Affecting the Firm Performance of the Apparel Companies Listed in the U.S. Share Markets
||Master’s Program, Department of Management Sciences
||A certain percentage of income would be spending on food, 3C products, and clothing for every household unit. In fact, we buy these products by way of the retail store. Thus, the phenomena arouse our incentives to investigate the factors influencing the firm performance of apparel industry, one of important sub-industries in the retail industry by selecting the apparel companies listed in the US Stock Exchange as our studied samples. In this study, we take the profitability, risk and growth variables proposed by the stock price models as our independent variables. Besides, we also take the variables related to corporate governance and marketing into account. The results show that the content of advertisement shown in the homepage of a company’ website would affect the firm performance except the profitability, inventory turnover ratio, quick ratio, and debt ratio. In addition, apparel companies seem to be unnecessary to hold a large amount of cash, since it would not benefit for firm performance promoted. Thus, this study suggests that these companies may promote the ROA, ROE, and Tobin’ Q deemed as firm performance variables by employing the capital deduction or shares repurchase strategies instead of holding abundant cash.
I. Introduction 1
1.1 The Motivation 1
1.2 The Purposes of This Study 5
1.3 The Process of This Research 7
1.4 The Organization of This Research 8
Ⅱ. Literature Review 9
2.1 Introduction of retail stores 9
2.2 Profit factors influencing the profitability of apparel company 13
2.3 Growth factors influencing the profitability of apparel company 13
2.4 Risk factors influencing the profitability of apparel company 14
2.5 Other relevant factors influencing the profitability of apparel company 15
Ⅲ. Data and Research Methods 17
3.1 Data description 17
3.2 Apparel Industry Introduction 17
3.3 Variable definition 19
3.3.1 Dependent variable 19
3.3.2 Independent variable 20
3.4 Hypotheses 23
3.5 Research method 24
Ⅳ. Empirical Results and Analysis 28
4.1 Descriptive Statistics 28
4.2 Empirical results and analysis results 29
Ⅴ. Conclusion 34
5.1 Summery of empirical results 34
5.2 Implication of the investment and management 35
Table 2.1 ZARA basic information 9
Table 2.2 The key financial ratios for INDITEX 10
Table 2.3 UNIQLO basic information 11
Table 2.4 Key financial information for the UNIQLO 11
Table 2.5 Store number in U.S and Asian countries for UNIQLO 12
Table 2.6 The successful reasons for UNIQLO stores 12
Table 3.1 The weight of various sub-industries in Dow Jones U.S. retail index 17
Table 3.2 The value of the apparel industry released by the US Census Bureau 18
Table 3.3 The apparel companies listed in the US share markets. 18
Table 4.1 Descriptive Statistics 28
Table 4.2 Regression Results for Tobin’s Q 30
Table 4.3 Regression Results for ROE 31
Table 4.4 Regression Results for ROA 32
Figure 1.1 TJ Maxx and Dollar Tree stock price(3/10/2007~3/7/2011) 1
Figure 1.2 GDP Composition Source) 3
Figure 1.3 Retail sales composition 4
Figure 1.4 Research Process 7
Figure 2.1 Real growth rate for Euro area and the stock price trend for INDITEX 10
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