Financial goals and company performance a study of companies in India

Abstract

The objectives of the study were (a) to find out the financial goals structure and the relative significance of the financial goals pursued by companies in India and (b) to examine if a company's financial performance was related to the goal structure it follows. A questionnaire was sent to each company listed in the Investors' Guide of the Economic Times. Sixty one questionnaires were received back, of which fifty seven were found useable for analysis. The information about the actual financial performance for 42 of these companies, for which complete data were available, was obtained form the Bombay Stock Exchange Official Directory. An analysis of the relationship between the goals pursued by them and their actual performance was conducted using dummy variable regression analysis method.