IDEAS home Printed from https://ideas.repec.org/a/ids/ijbexc/v21y2020i4p488-512.html
   My bibliography  Save this article

Macro and socio-economic determinants of firms' financial performance: empirical evidence from Indian states

Author

Listed:
  • Faozi A. Almaqtari
  • Najib H.S. Farhan
  • Ali T. Yahya
  • Eissa A. Al-Homaidi

Abstract

This study aims to investigate the impact of macro and socio-economic determinants on firms' financial performance using data of 1,770 firms from 19 Indian states over a period from 2008 to 2015. Firms' performance is considered as the dependent variable and is measured by profit after tax, return on asset and returns on net worth. Macroeconomic determinants include net state value added, capital invested, capital expenditures, per capita income, number of factories and working capital of the selected states. Further, socio-economic determinants contain state's population, level of education, rate of violence, number of workers, per capita power and highways length. The findings reveal that macroeconomic determinants namely; per capita income, capital invested, and number of factories and socio-economic determinants particularly; population, education rate and rate of violence in a state have the major significant impact on firms' performance. However, the other variables are related to some proxies of firms' performance.

Suggested Citation

  • Faozi A. Almaqtari & Najib H.S. Farhan & Ali T. Yahya & Eissa A. Al-Homaidi, 2020. "Macro and socio-economic determinants of firms' financial performance: empirical evidence from Indian states," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 21(4), pages 488-512.
    • Handle: RePEc:ids:ijbexc:v:21:y:2020:i:4:p:488-512
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=108556
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Faozi A. Almaqtari & Abdulwahid Hashid & Najib H. S. Farhan & Mosab I. Tabash & Waleed M. Al‐ahdal, 2022. "An empirical examination of the impact of country‐level corporate governance on profitability of Indian banks," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 1912-1932, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbexc:v:21:y:2020:i:4:p:488-512. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=291 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.