Publication Type

Journal Article

Version

publishedVersion

Publication Date

9-2019

Abstract

India is a key leading economy in the Asia Pacific region. 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 this market. A linear regression has been conducted between these variables to determine the magnitude and direction of their relationships. The trends of Z-Scores over a five-year period have also been analysed. The analysis covers the period from 2013 to 2017 (inclusive) and yields a statistically positive correlation between ROE and the Z-Score for the market. India registered moderate-to-strong mean and median Z-Scores. These findings further support the strong economic position of this market as an Asian giant.

Keywords

Financial Health, Corporate Performance, Manufacturing, Altman Z-Score, Return On Equity, ROE, India, BSE

Discipline

Accounting | Asian Studies | Corporate Finance

Research Areas

Financial Performance Analysis

Publication

Archives of Business Research

Volume

7

Issue

9

First Page

229

Last Page

235

ISSN

2054-7404

Identifier

10.14738/abr.79.6303

Publisher

Archives of Business Research

Copyright Owner and License

Publisher

Creative Commons License

Creative Commons Attribution-Share Alike 4.0 International License
This work is licensed under a Creative Commons Attribution-Share Alike 4.0 International License.

Additional URL

https://doi.org/10.14738/abr.79.6303

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