The technology industry is one of the fastest growing industries in the world with Ireland as the largest technological hub in Europe (Irish Tech News, 2019.)
economics
Description
1.
Introduction:
The technology industry is one of the
fastest growing industries in the world with Ireland as the largest
technological hub in Europe (Irish Tech News, 2019.) Companies such as Facebook
and Google have set up operations in Dublin making it one of my most employable
sectors in Ireland. The development of new technologies is vital to the
ever-changing European economy and one of the most visual consequences of the
twentieth century (Adyalot, Keeble, 1988.) This allows Europe to compete with
the rest of the world, particularly The United States and Asia, in innovation
and trade. The technology industries fast paced development is interesting when
looking at the effects of size and capital expenditure on profitability. The
model we will be using to test our independent variables against our dependant
variables is the regression model. From research conducted by (Ghodrati,
Ghanbari, 2014) on the Tehran stock exchange in which 66 firms were studied
from the period 2008-2012 using the Pierson and regression solidarity, it
concluded that the variables of Capital investment and profitability were going
in the opposite direction. In relation to the effect of size on profitability,
a study (Babalola, 2013) on the Nigerian stock exchange on a panel data set
from the period 2000 to 2009, suggested there was a positive relationship
between size and profitability for manufacturing companies. Although no stock
exchange is the same and variables in different countries vary it is still
expected that there will be a negative relationship between capital expenditure
and profitability but a positive relationship between size and profitability in
the technology industry. Investments in technology do not always pay off as
errors can always occur. However, the more people working for a company and the
larger the size, the higher the chance of success for that company.
2.
Data:
|
Year:
2018 |
Profit:
(Profit margin) |
Size:
(Operating revenue) |
Capital
Expenditure |
|
Apple: |
59,531,000 |
70,898,000 |
-13,313,000 |
|
Alphabet Inc. (GOOGL) |
30,736,000 |
31,392,000 |
-26,630,000 |
|
Facebook: |
22,112,000 |
24,913,000 |
-13,915,000 |
|
Intel Corportation: |
21,053,000 |
23,244,000 |
-15,181,000 |
|
Microsoft Corporation: |
16,571,000 |
35,058,000 |
-11,632,000 |
|
Micron Technology, Inc: |
14,135,000 |
14,994,000 |
-9,085,000 |
|
Broadcom Inc: |
12,259,000 |
5,368,000 |
-635,000 |
|
Internation Business Machines
Corportation: |
8,728,000 |
13,285,000 |
-3,964,000 |
|
Texas Instruments Incorperated: |
5,580,000 |
7,034,000 |
-1,131,000 |
|
HP Inc: |
5,327,000 |
4,319,000 |
-546,000 |
|
SAP SE: |
4,083,000 |
5,723,000 |
-1,401,000 |
|
Oracle Coporation: |
3,825,000 |
14,319,000 |
-1,736,000 |
|
Applied Materials, Inc: |
3,313,000 |
4,796,000 |
-622,000 |
|
Nvidia Corporation: |
3,047,000 |
3,210,000 |
-593,000 |
|
Adobe Inc: |
2,590,774 |
2,840,369 |
-266,579 |
|
ASML Holding NV: |
2,585,400 |
2,965,300 |
-609,500 |
|
Cognizant Technology Solutions
Corportation: |
2,101,000 |
2,801,000 |
-377,000 |
|
Intuit Inc: |
1,211,000 |
1,497,000 |
-124,000 |
