Productivity and Accounting Profitability in Omani listed Companies: An Empirical Study for a Period 2010-2014
Productivity and Accounting Profitability in Omani listed Companies: An Empirical Study for a Period 2010-2014

Summary/Abstract: This study analyzed the relationship between productivity and profitability in industrial, finance and services sectors in Sultanate of Oman. The data were collected from the annual reports of the 48 industrial, 29 finance and 32 services companies listed on Muscat Securities Market for 5 years from 2010- 2014. This study tested two models for the effect of productivity on profitability. The productivity is measured by the relationships between cost of sales and number of staff (Total, Omani and Expatriate), while profitability is measured by two independent proxies; net operating income (NOP) in the first model and return on assets (ROA) in the second one. The results of the correlation indicated that the correlations of independent variables of productivity are statistically insignificant at 5% with NOP in the industrial sector while the regression analysis in the industrial sector is significant at 5%. In the second model the correlations are statistically insignificant at 5% with ROA in all three sectors. Also, the regression analysis in the three sectors is insignificant at 5%.

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