It is a common belief that large firms can economise due to economies of scale. They are able to have higher rate of profit as compared to small firms. 
In this context, this study analyses the relationship of size and profitability in Indian industries. For a detailed study it concentrates on a sample of large scale public limited manufacturing companies from cement, sugar, textiles, engineering and chemicals. 
A further econometric analysis has been attempted to study size profitability correlation and determinants of profitability with the selection of firms from each industry. The data base of the industry is taken from Bombay Stock Exchange Directory.
Methodology and specification of model analyses profit on total assets as also on the profit margin. In addition, many other variables such as sales, age of the firm etc. have been used to explain the variations in profitability.








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Pages xii+125

Hard Bound

2002 Edition

Preface / Introduction / Concept and Methodology / Trends in profitability / Size and profitability relationship / Summary of conclusions / Annexures / References / Index.

Dr (Mrs) Vishnu Kanta Purohit is an Associate Professor in economics at the Indra Prastha College for Women, University of Delhi. Earlier, she has been at the teaching faculty of the Department of Economics, University of Rajasthan, Jaipur and at the Ahmedu Bello University, Zaria, Nigeria. She has also worked as senior research fellow at the Departmentof Economics, University of California, Berkeley (USA) and at the Gokhale Institute of Politics and Economics, Pune. Dr Purohit has also been visiting Professor ata the Maison des Sciences De L'Homme, Paris (France).  Dr (Mrs.) Purohit has written many articles in the leading economic journals in the areas of industrial economics, monetary economics and public finance.