Hong Kong and Singapore are two leading economies in Asia Pacific. This study examines the relationship between the financial health, as measured by the Altman Z-Score, and corporate performance, as measured by the Return on Equity (ROE), of listed manufacturing companies in these two markets. A linear regression was conducted between these variables to determine the magnitude and direction of their relationships. The trends of Z-Scores over a fourteen-year period are also analyzed. The analysis covers the period from 2000 to 2013(inclusive) and yielded a statistically positive correlation between ROE and the Z-Score for both markets. Singapore and Hong Kong both registered moderate-to-high mean and median Z-Scores. However, Hong Kong is comparatively healthier. These findings further support the economic stature of these two markets as Asian tigers.
Financial Health, Corporate Performance, Manufacturing, Altman Z-Score, Return on Equity
Asian Studies | Corporate Finance | Finance and Financial Management
Corporate Governance, Auditing and Risk Management
Asian Journal of Business and Management
Financial health and corporate performance of listed manufacturing companies in Hong Kong and Singapore – A comparative study of the two Asian tigers. (2015). Asian Journal of Business and Management. 3, (2), 148-154. Research Collection School Of Accountancy.
Available at: http://ink.library.smu.edu.sg/soa_research/1594
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