Factors affecting financial performance of Indian firms: an empirical investigation of firms listed on Bombay Stock Exchange
by Mosab I. Tabash; Eissa A. Al-Homaidi; Anwar Ahmad; Najib H.S. Farhan
International Journal of Economic Policy in Emerging Economies (IJEPEE), Vol. 13, No. 2, 2020

Abstract: The aim of this study is to examine the factors that influence the financial performance of Indian listed companies during the period ranging from 2010 to 2016. The sample size consists of 1598 companies listed in Mumbai Stock Exchange (MSE) in India. Return on assets (ROA), return on equity (ROE), profit after tax (PAT) and earning per share (EPS) are used as proxies for financial performance of Indian firms. The fixed effects regression model results revealed that the leverage ratio, liquidity ratio, size of company and company age have a significant and positive influence on the financial performance of Indian listed companies. The leverage ratio has a positive impact on return on equity (ROE) and negative effect on return on assets (ROA), profit after tax (PAT), and earning per share (EPS). The study recommended that managers should consider the leverage ratio in such a way that improves firms' financial performance. The current study provides useful insights for managers, analysts, regulators, investors, and other interested parties in the performance of Indian listed firms.

Online publication date: Tue, 30-Jun-2020

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economic Policy in Emerging Economies (IJEPEE):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com