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Financial Health And Corporate Performance: A Comparison Of Manufacturing Companies In China And India, See Liang Foo, Shaakalya Pathak
Financial Health And Corporate Performance: A Comparison Of Manufacturing Companies In China And India, See Liang Foo, Shaakalya Pathak
Research Collection School Of Accountancy
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 …