Determinants of Financial Performance of
Selected Listed Manufacturing Firms in India
Raghav Chawla and
Dr Rishi Manrai
- UG Student, Symbiosis Centre for Management studies, NOIDA, U.P.
- Assistant Professor, Symbiosis Centre for Management studies, NOIDA, U.P.
The study was to financially analyze the
manufacturing sector of India and determine the
reasons for the sector’s slow growth. It was done
by taking into consideration some dependent
factors like ROA, ROCE, ROE and independent
factors like capital structure, liquidity, firm
size, and working capital. A sample size of 35
manufacturing sector firms listed on the BSE
and NSE was taken. The time period of study
was 2011-12 to 2016-17. Statistical tests
that were applied were correlation, regression,
sleekness and kurtosis. The results of the study
revealed that independent factors significantly
affected the financial performance of the firm.
The capital structure and firm size affected the
financial performance negatively; the liquidity
and working capital affected the financial
- Ali, A., Zahid, B., Shahid, M., & Nadeem,
A. (2013). Determinants of firm’s fincial
performance: An empiricial study on textile
sector of Pakistan. Business and Economic
Research, 3(2), 76-86.
- Aquino, R. (2011). Capital Structure of
Philippines listed and unlisted Firms. College of
Business Administration, 1997-2008.
- Chauhan, S., & Giri, I. (2016, July 12).
Manufacturing sector in India before and after
the liberalisation of 1991. Retrieved September
2, 2018, from projectguru: https://www.projectguru.in/publications/manufacturing-
- Das, C.P., & Swain, R.K. (2017). Impact
of Organizational Factors on Financial
Performance. Parikalpana – KIIT Journal of
Management, 13 (2), 151-159.
- Dey, N.B., Adhikari, K., & Bardhan, M.R.
(2015). Factors determining the financial
perfromance of life insurance compnaies in
India – An empirical study. ERPA International
Journal of Economic and Business Review, 3 (8),
- Falope, O., & Ajilore, O. (2009). working capital
management and corporate profitability:evidence
from panel data analysis of selected quoted
companies in Nigeria. Research of general business
management, 3, 73-84.
- Gitman, L. (2013). Principles of Financial
administration. Mexico: Pearson Addison
- Growth of Manufacturing Industry in India.
(2018, June). Retrieved Sepetember 1, 2018,
from Indian Brand Equity Foundation: https://
- Investopedia (2018). Retrieved September
1, 2018, from Investopedia: https://www.
- Journal of Business and Financial Affairs (2018).
Retrieved September 1, 2018, from omicsonline:
- Lee, J. (2009). Does size matter in firm
performance. International journal for econimics
and business research, 16 (2), 189-203.
- Matar, A., & Eneizen, B.M. (2018).
Determinants of Financial Performance in
industrial firms: Evidence from Jordan (D.O.
Philippos I. Karipidis, Ed.). Asian Journal of
Agricultural Extension, Economics & Sociology,
- Mauwa, J. (2016). Determinants of Financial
Performance of Firms Listed on the Rwanda Stock
Exchange. Juja: Jomo Kenyatta University of
Agriculture and Technology.
- Mehari, D., & Aemiro, T. (2013). Firm Specific Factors that Determine Insurance Companies’
Performance in Ethiopia. European Scientific
Journal, 9 (10), 245-255.
- Mwangi, & Murigu, J. (2015). deternimants
of financial performance in general insurance
compnaies in kenya. Murigu, 1 (38), 67-79.
- Niresh, A., & Thirunavukkarasu, V. (2014).
Firm Size and Profitability: A Study of Listed
Manufacturing Firms in Sri Lanka. International
Journal of Business and Management, 9(4), 57-64.
- O’Donohue, W., Hecker, R., & Torugsa, N.
A. (2012). Capabilities, Proactive CSR and
Financial Performance in SMEs: Empirical
Evidence from an Australian Manufacturing
Industry Sector. Journal of Business Ethics, 109
- Owolabi, Obiakor, & Okwu. (2011).
Investigating Liquidity-Profitability Relationship
in Business Organizations: A Study of Selected
quoted companies in Nigeria. British Journal of
Economics, Finance and Management Sciences,
- Papadogonas, T. (2007). The financial
performance of large and small firms: evidence
from greece. International journal of financial
services managment, 2 (1-2), 14-20.
- Raheman, A., Afza, T., Qayyum, A., & Bodla,
M.A. (2010). Working Capital Management
and Corporate Performance of Manufacturing
Sector in Pakistan. International Research Journal
of Finance and Economics, 47 (47), 151-163.
- Sidra, A.M., & Javed, A. (2013). Determinants
of financial performance of a firm: case of
Pakistani stock exchange. Journal of Economics
and internation finance, 5(2), 43-52.
- Sritaran, V., & Vinasithamby, K. (2014).
Determinants of capital structure a study
oflisted banks finance & insurance companies
in Colombo Stock Exchange in Sri Lanka.
International Journal of Economics, Commerce
and Managment, II (10), 72-87.
- Velnampy (2012). The Relationship between
Capital Structure and Profitablity . Waldshut-
Tiengen: BW: AbeBooks.
- Vijayakumar, A., & Tamizhselvan, P. (2019).
Corporate size and profitability an empiricial
analysis. Journal for Bloomers of Research, 3 (1),
- Zingales, I., & Ranjan, R. (1995). What do we
know about capital strucutre? Some evidence
from international data. Journal of Finance,