Firm size can be measured in different ways. In the study
done by Azhar and Ahmed (2019)[1], they have stated that the size of the firm includes the ability of the organization in context
of amount and variety of production that it can offer to its clients simultaneously. Large firms have the advantage of economies of scale, which will improve the profitability. Study conducted by Azhar and
Ahmed
has
used total sales and
total assets as the indicators of firm size.
According to Erdogan et Al. (2015), firm size
can
be determined through growth of
sales.
Azhar and Ahmed (2019)[1] have found that there was no
indicative relationship between the firm size and the firm profitability. This was in line with the findings of
Niresh and Thirunavukkarasu (2014)[12], which was study done in Sri Lanka. However in the study of Erdogan et Al. (2015)[5], they found out that firm size positively influenced the firm’s profitability.
