Determinants of Financial Performance of Indian Corporate Sector in the Post-Liberalization Era: An Exploratory Study

Kakani, Ram Kumar; Saha, Biswatosh; Reddy, V. Nagi

doi:10.2139/ssrn.904983

Cited by 46 publications

(46 citation statements)

References 35 publications

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“…Moon et al (2015) used Fama and French's (1993) three-factor and Carhart's (1997) four-factor models to examine the subsequent 1, 2, 3, 4 and 5-year stock returns of firms that stayed debt free for 3-and 5-year periods. Kakani et al (2001) studied 566 large Indian firms for eight years and divided into two sub-periods (viz., 1992-96, and 1996-2000) to examine the financial performance of Indian firms across various dimensions. The study found that leverage 'again' came out as having a significant negative effect on accounting profitability measures.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Different measures have been used in different researches, which led to dissimilar findings. While on the other hand, some researchers from different countries (Ghana -Abor (2005); Sri Lanka - Nirajini and Priya (2013); Malaysia -San andHeng (2011) &Salim andYadav (2012); USA - Roden and Lewellen (1995); China -Huang (2006); India - Kakani et al (2001); etc. ), have used similar measures and still found contradicting results, which shows that location of trade for firms could bring about different results from those already found in other studies.…”

Section: Introductionmentioning

confidence: 99%

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Debt Capital and Financial Performance: A Comparative Analysis of South African and Sri Lankan Listed Companies

Abeywardhana

Magoro²

2017

AJFA

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This study compares how the debt capital of the listed companies operating in the wholesale and retail sectors of South Africa and Sri Lanka affect their financial performance. Objective of this study is to examine whether debt capital affects the financial performance of the wholesale and retail sector companies in South Africa and Sri Lanka. To examine the impact of debt financing on financial performance of companies over the 2011-2015 period. Fixed-effects (within) regression model was used.The findings the study confirms that debt financing, in terms of short-term debt and long-term debt, has a negative impact on the financial performance of wholesale and retail sector companies in the context of South Africa. In Sri Lanka, debt financing, in terms of short-term debt has a negative impact on firm performance, while long-term debt has a positive impact. This study gives special focus to identify in which industries do different components of the capital structure have significant impact or weak-to-no impact on firm performances.This suggests for the South African wholesale and retail sector can use equity capital and retained earnings efficiently, thereby minimizing conflicts of agency or agency costs and remaining independent of external financiers. In the case of Sri Lanka, the owners and managers of the retail companies should consider reducing the use of short-term debt and increase long-term debt capital as long-term debt seems to influence their financial performances positively.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Debt Capital and Financial Performance: A Comparative Analysis of South African and Sri Lankan Listed Companies

Abeywardhana

Magoro²

2017

AJFA

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“…The empirical results documented a significant association between the firm's financial performance and firm specific indicators such as corporate governance, risk management, ownership structure, and capital structure. In another emerging market study, Kakani, Saha, and Reddy [19] analyzed the determinants of firm performance in the Indian market. The sample consisted of 566 large Indian firms and used data for two sub-periods, 1992-1996 and 1996-2000 to investigate Indian firms' financial performance.…”

Section: Literature Reviewmentioning

confidence: 99%

Factors Affecting Firm Competitiveness: Evidence from an Emerging Market

Akben-Selçuk

2016

IJFS

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Abstract:The objective of this study is to investigate the factors affecting firm competitiveness in an emerging market-Turkey. In the paper, competitiveness is proxied by a firm's financial performance. The empirical analysis is based on firms listed on Borsa Istanbul and covers the period between 2005 and 2014. Results from a firm-level panel data model indicate that return on assets is positively related to firm size, international sales, liquidity and growth, and negatively related to leverage and R&D expenditures. On the other hand, gross profit margin is positively related to size and international sales, and negatively related to leverage and R&D expenditures. Finally, results show that Tobin's Q ratio is higher for firms with higher levels of debt and higher liquidity levels.

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“…Newer and smaller firms, as a result, take away market share in spite of disadvantages like lack of capital, brand names and corporate reputation with older firms. (Kakani., Saha,, and Reddy, 2001) Regarding firm age, older firms are more experienced, have enjoyed the benefits of learning, are not prone to the liabilities of newness, and can, therefore, enjoy superior performance. Older firms may also benefit from reputation effects, which allow them to earn a higher margin on sales.…”

Section: D-company Agementioning

confidence: 99%

Factors Affecting the Financial Performance of Jordanian Insurance Companies Listed at Amman Stock Exchange

Almajali¹,

Alamro²,

Al-Soub³

2012

jmr

169

129

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This study aimed at investigating the factors that mostly affect financial performance of Jordanian Insurance Companies. The study population consisted of all insurance companies' enlisted at Amman stock Exchange during the period (2002)(2003)(2004)(2005)(2006)(2007) which count (25) insurance company. The data collected was analysed by using a number of basic statistical techniques such as T-test and Multiple-regression. The results showed that the following variables (Leverage, liquidity, Size, Management competence index) have a positive statistical effect on the financial performance of Jordanian Insurance Companies. The researcher recommended that a high consideration of increasing the company assets will lead

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Determinants of Financial Performance of Indian Corporate Sector in the Post-Liberalization Era: An Exploratory Study

Cited by 46 publications

References 35 publications

Debt Capital and Financial Performance: A Comparative Analysis of South African and Sri Lankan Listed Companies

Debt Capital and Financial Performance: A Comparative Analysis of South African and Sri Lankan Listed Companies

Factors Affecting Firm Competitiveness: Evidence from an Emerging Market

Factors Affecting the Financial Performance of Jordanian Insurance Companies Listed at Amman Stock Exchange

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