Relationship of Company Ageand Industry Sector with Financial Performance–An Indian Evidence
Keywords:
Corporategovernance,Age,Industrysector,financial performanceAbstract
The purpose of this paper is to analyze the relationship of the age of companies and the industry sector on financial performance variables for NIFTY100 Index compa nies. The minimum age of a company in NIFTY100 index was seven years and the maximum age is 114 years.Further, these companies have been divided into nine industry sectors. To analyze the relationship sixteen financial performance variables have been taken for the financialyear2019. It has been found that older companies have better performance in terms of return ratios,stakeholders- related ratios,leverage,replacementratios.Younger companies have better operational efficiency and market valuation. It has also been observed that the reisasignificant difference in return ratios for Telecom and Utility,Financial, Industrial,Consumer staples,IT,Energy andConsumer Discretionary Sectors. The finding soft his paper will enable investors in making prudent investment decisions and will enable them to understand how the age and industry of a company impact the financial performance of companies in India.
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