Financial Health &amp; Corporate Performance: A Comparison of Manufacturing Companies in China

Liang, Foo See; Pathak, Shaakalya

doi:10.5296/jad.v4i2.13839

Cited by 4 publications

(7 citation statements)

References 7 publications

(10 reference statements)

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“…Most previous research, namely Foo (2015), Foo and Pathak (2016), Liang and Pathak (2018a), and Liang and Pathak (2018b) found positive relationships between financial health and performance of firms operating in the stock markets of Singapore, Hong Kong, South Korea, and Taiwan. Interestingly, these research studies measured the financial health using the bankruptcy risk prediction model, Altman's Z-score, and ROE.…”

Section: Bankruptcy Risk and Financial Performancementioning

confidence: 92%

“…Liang and Pathak (2018b) studied the relationship between financial health and performance for manufacturing companies listed on the Singapore stock exchange during 2013-2017. Both Liang and Pathak (2018a) and Liang and Pathak (2018b) found that financial health measured by Altman's Z-score is statistically positively correlated with financial performance as measured by ROE.…”

Section: Bankruptcy Risk and Financial Performancementioning

confidence: 97%

“…Nevertheless, financial performance of firms measured from market information may be influenced by external factors like economic, political, social, and technological factors. According to a review of related research papers, popular indicators used to represent the financial performance of companies are return on equity (ROE), return on assets (ROA) and Tobin's Q (Garcia-Castro, Ariño,& Canela, 2010;Rodgers, Choy, & Guiral, 2013;Foo, 2015;Foo & Pathak, 2016;Liang & Pathak, 2018a;Liang & Pathak, 2018b;Hillary, Nyang'au, & Ngacho, 2018;Ho and Mohd-Raff, 2018).…”

Section: Financial Performance Measurementmentioning

confidence: 99%

“…Their results demonstrated that financial health was positively correlated and statistically significant to performance in both the Singapore and Hong Kong stock markets. Similarly, Liang and Pathak (2018a) examined the relationship between financial health and performance of manufacturing companies listed on China's Stock Exchange between 2013 and 2017. Liang and Pathak (2018b) studied the relationship between financial health and performance for manufacturing companies listed on the Singapore stock exchange during 2013-2017.…”

Section: Bankruptcy Risk and Financial Performancementioning

confidence: 99%

“…However, the number of papers on the impact of bankruptcy risk on financial performance is still small and the effect of bankruptcy risk on financial performance has led to inconclusive results. Analyses have been done on the impact of default risk and financial performance in Asian markets such as Singapore (Foo, 2015;Liang & Pathak, 2018b), Hong Kong (Foo, 2015), South Korea (Foo & Pathak, 2016), Taiwan (Foo & Pathak, 2016), People's Republic of China (Liang & Pathak, 2018a), Pakistan (Mahmood, Rizwan, & Rashid, 2018) and Malaysia (Ho & Raff, 2019). So far there is no research published on the impact of the risk of default on financial performance of companies listed on the Stock Exchange of Thailand.…”

Section: Introductionmentioning

confidence: 99%

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Bankruptcy Risk and Financial Performance of Companies Listed on the Stock Exchange of Thailand

Chaiyakul

2021

IJFR

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Financial performance is an important issue for entrepreneurs and investors. So far the number of studies on the effect of bankruptcy risk on financial performance of firms is small. Hence, this research investigates the impact of bankruptcy risk on financial performance of companies listed on the Stock Exchange of Thailand and the relevant data cover the period between 2015 and 2019. Excluded are companies operating in the finance industry. The data are analyzed by multiple regression analysis. Altman’s Z-score (1968) is used as a proxy for bankruptcy risk while ROA, ROE, and Tobin’s Q serve as proxies for financial performance. The control variables in this study are liquidity, capital structure, firm size, and inflation rate. Results reveal that Altman’s Z-score and firm size statistically and positively affect financial performance proxied by both accounting-based-measures, i.e. ROA and ROE; and market-based measures, i.e. Tobin’s Q. These results confirm that companies listed on Thailand’s Stock Exchange have low bankruptcy risk and large size is financially performed well.

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Section: Bankruptcy Risk and Financial Performancementioning

confidence: 92%

Section: Bankruptcy Risk and Financial Performancementioning

confidence: 97%

Section: Financial Performance Measurementmentioning

confidence: 99%

Section: Bankruptcy Risk and Financial Performancementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Bankruptcy Risk and Financial Performance of Companies Listed on the Stock Exchange of Thailand

Chaiyakul

2021

IJFR

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Nickel ore export prohibition and mapping the business performance of nickel mining companies in Indonesia

Hati,

Hapsari,

Ika

et al. 2024

IOP Conf. Ser.: Earth Environ. Sci.

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As part of its efforts towards establishing the green energy value chain internationally, Indonesia has banned the export of raw nickel since 2020. The export ban is also aimed at adding value to the nickel supply chain for the sake of nickel mining sustainability in the country. The nickel ore export prohibition has caused the European Union to file a lawsuit against the Indonesian government in violation of the World Trade Organization agreement. Instead of discussing the dispute, this study will focus on whether the export ban will impact the business performance of the nickel mining industry. Given that the country is the biggest nickel reserve on earth, this study aims to accomplish three distinct objectives: to create a thematic map of (1) nickel mining locations in Indonesia by province; (2) mining locations for the top ten nickel companies and nickel industry hubs in Indonesia; and (3) the business performance of leading nickel issuers in the country. Thematic maps are created based on Geographic Information Systems (GIS). The results show that nickel reserves are available in seven provinces; two nickel industrial hubs and ten big mining companies operate in these provinces; and these companies have sound business performance following the ore nickel export ban. Our analysis offers a new perspective on the effect of the national nickel policy on the business viability of selected mining companies in Indonesia by applying the company’s financial healthiness measurement in GIS.

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Does COVID-19 Affect the Business Sustainability of Mining Industry? Some Indonesian Evidence

Rochmah Ika,

Puspita Sari,

Ana Setianingrum

et al. 2024

KSS

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This study aims to investigate whether COVID-19 affects business sustainability in terms of the economics of the mining industry in Indonesia. Specifically, this article examines whether the economic sustainability of mining companies improved or worsened after the COVID-19 attack on the country. The current research measures economic sustainability using the Altman Z financial distress model and profitability. Using 43 publicly listed companies in the mining industry as a sample, the analysis of the Wilcoxon signed rank test reveals that the Altman Z score increases significantly in the period after the COVID-19 contagion as compared to those before the contagion. Meanwhile, there is no difference in the profitability of the mining industry before and after the COVID-19 contagion. The results suggest that the mining industry remains strong despite the huge effect of the COVID-19 pandemic, which led to a decrease in the coal price due to the large scale social restrictions. The financial performance of the mining industry shows an improvement, as marked by an upward trend in the Altman Z score from 2018 to 2021. The profitability of the mining industry has been stable from 2018 to 2021. This study offers evidence of the mining industry’s financial condition in the Indonesia Stock Exchange (IDX) when COVID-19 attacked Indonesia, at a time when the gold price reached its maximum and the president banned the export of mining products’ raw materials. Keywords: economic sustainability, financial performance, Altman Z-score, financial distress, profitability, COVID-19

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Financial Health & Corporate Performance: A Comparison of Manufacturing Companies in China

Cited by 4 publications

References 7 publications

Bankruptcy Risk and Financial Performance of Companies Listed on the Stock Exchange of Thailand

Bankruptcy Risk and Financial Performance of Companies Listed on the Stock Exchange of Thailand

Nickel ore export prohibition and mapping the business performance of nickel mining companies in Indonesia

Does COVID-19 Affect the Business Sustainability of Mining Industry? Some Indonesian Evidence

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