IDEAS home Printed from https://ideas.repec.org/a/mth/jad888/v2y2016i1p18-29.html
   My bibliography  Save this article

Financial Health & Corporate Performance-a Comparison of Manufacturing Companies in China & India

Author

Listed:
  • Foo See Liang
  • Shaakalya Pathak

Abstract

The People's Republic of China (China) and India are two leading economies in Asia Pacific. 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 these two markets. A linear regression was conducted between these variables to determine the magnitude and direction of their relationships. The trends of Z-Scores over a fourteen-year period are also analysed. The analysis covers the period from 2000 to 2013 (inclusive) and yielded a statistically positive correlation between ROE and the Z-Score for both markets. China and India both registered moderate-to-strong mean and median Z-Scores. However, China is comparatively healthier. These findings further support the economic stature of these two markets as Asian giants.

Suggested Citation

  • Foo See Liang & Shaakalya Pathak, 2016. "Financial Health & Corporate Performance-a Comparison of Manufacturing Companies in China & India," Journal of Asian Development, Macrothink Institute, vol. 2(1), pages 18-29, April.
    • Handle: RePEc:mth:jad888:v:2:y:2016:i:1:p:18-29
    as

    Download full text from publisher

    File URL: http://www.macrothink.org/journal/index.php/jad/article/view/9414/7636
    Download Restriction: no
    File URL: http://www.macrothink.org/journal/index.php/jad/article/view/9414
    Download Restriction: no
    ---><---

    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:mth:jad888:v:2:y:2016:i:1:p:18-29. 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: Technical Support Office (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/jad .

    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.