Studying the relationship between Japanese firms' corporate health and results

Author

See Liang FOO, Singapore Management UniversityFollow
Shaakalya PATHAK, Singapore Management UniversityFollow

Publication Type

Journal Article

Version

publishedVersion

Publication Date

9-2019

Abstract

Japan 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 (the Tokyo Stock Exchange). 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. Japan registered moderate-to-strong mean and median Z-Scores. These findings further support the strong economic position of this market as an Asian giant.

Discipline

Accounting | Asian Studies | Corporate Finance

Research Areas

Accounting Information System

Publication

Archives of Business Research

Volume

7

Issue

9

First Page

236

Last Page

242

ISSN

2054-7404

Identifier

10.14738/abr.79.7087

Publisher

Archives of Business Research

Citation

FOO, See Liang and PATHAK, Shaakalya. Studying the relationship between Japanese firms' corporate health and results. (2019). Archives of Business Research. 7, (9), 236-242.
Available at: https://ink.library.smu.edu.sg/soa_research/1825

Copyright Owner and License

Publisher

Creative Commons License

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

Additional URL

https://doi.org/10.14738/abr.79.7087