Financial Performance of Selected IT Companies in India; A Panel Data Approach

Abstract

Despite the global economy growing up, the Indian Information technology industry is maintaining a steady pace of growth. Financial analysis is an aspect of the overall business finance function that involves examining historical data to gain information about the current and future financial health of a company. IT has the great possibility of becoming an engine of accelerated economic growth, efficiency, improvement for all sectors of the economy, developing India’s position in the export market, improving trade insufficiency, and means of efficient governance. It enhances the way into information, protects consumers, provides access to government services, makes skill creation and training more effective, improves the liberation of health services, and promotes simplicity. The inter-firm financial performance differential has been utilized to identify the factors that are critical in determining their financial performance. In this study, only the cross-sectional data of three countries over 10 years is collected. The cross-sectional samples are relatively small. Therefore, it is appropriate to use the LSDV Model. However, the pooled regression model will also consider for comparison. It is also convenient to Model the pooled regression Model, LSDV Model and uses R-squared, adjusted R-squared and pool ability Test to decide statistically on appropriate Model to be used The paper is structured as follows: it presents the scope of the study, a brief review of the literature dealing, followed by a description of the objectives, data, and methodology. Subsequently, it discusses the empirical results by two regression model and finally, offers the conclusion.