Publication Type

Journal Article

Version

publishedVersion

Publication Date

4-2019

Abstract

Hong Kong 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. Hong Kong registered relatively healthy 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, ROE, Hong Kong, HKSE, SEHK

Discipline

Accounting | Asian Studies | Corporate Finance

Research Areas

Accounting Information System

Publication

Asian Journal of Business and Management

Volume

7

Issue

2

First Page

28

Last Page

34

ISSN

2321-2802

Identifier

10.24203/ajbm.v7i2.5709

Copyright Owner and License

Publisher

Additional URL

https://doi.org/10.24203/ajbm.v7i2.5709

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