IDEAS home Printed from https://ideas.repec.org/p/iim/iimawp/wp00765.html
   My bibliography  Save this paper

Financial Goals: A Survey of Experiences in India

Author

Listed:
  • Pandey I M
  • Bhat Ramesh

Abstract

The Study aimed to test the existence of multiple financial goals and to find the relative significance of the financial goals pursued by companies in India. A questionnaire was sent to companies listed in the Investors’ Guide of Economic Times. Sixty one questionnaires were received back, of which fifty seven were found useful for analysis. The results of the study are: (1) Companies follow multiple financial objectives. The cumulative percentage of companies using two or more financial objectives is 100 per cent. (2) Out of the total respondent companies, only 19.3 per cent inter-alia consider maximization of market value per share in the financial decision-making. This objective is least considered in financial decision-making. (3) The overall rank ordering of the financial objectives suggest the following four objectives to be important: (a) maximization of operating profit before interest and taxes; (b) maximizing the rate of return on investment; (c) maximizing the growth rate in sales; and (d) ensuring that funds are available. (4) An international comparison of financial objectives reveal that ‘guarantee funds are available’ and ‘maximization of EBIT’ have been ranked very high in France, Norway and India. Unlike in France, Netherlands and USA, Indian managers do not consider growth in EPS of high importance. It is also indicated that Indian managers’ views on financial goals are significantly correlated with that of France, Japan and Norway.

Suggested Citation

  • Pandey I M & Bhat Ramesh, 1987. "Financial Goals: A Survey of Experiences in India," IIMA Working Papers WP1987-07-01_00765, Indian Institute of Management Ahmedabad, Research and Publication Department.
    • Handle: RePEc:iim:iimawp:wp00765
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    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:iim:iimawp:wp00765. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/eciimin.html .

    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.