Study of Financial Performance and its Determinants: Empirical Evidence from Listed Indian 2/3 Wheeler Manufacturer Firms

Abstract

The present study is based on the study of financial performance and impact of internal financial determinants on financial performance of listed 2/3 wheeler manufacturer firms in India. The study adopted Causal research design which involves the investigation of cause –and- effect relationships. The study is based on secondary data and data has collected from Annual reports of the considered 2/3 wheelers manufactures firms listed at BSE, India. The financial performance of the firms has been measured by Return on Assets (ROA). The identified internal financial determinants were Export Intensity (EXIN), Growth (GRT), Capital Structure (CS), Profitability Ratio (PR), Research and Development Intensity (RDI), Liquidity (LIQ), Non-Debt Tax Shield (NDTS), Interest Coverage Ratio(ICR), Tax (TAX), Operating Efficiency (Dividend Pay Out (DPOT), Capital Intensity (CIN), Tangibility(TANG), Leverage (LEV), Size (SIZE), Working Capital Ratio (WCR) and Operating Profit Ratio (OPR). The results indicated that financial performance was affected by selected internal financial determinants and these internal financial determinants have varying impacts on financial performance.