IJFANS International Journal of Food and Nutritional Sciences

ISSN PRINT 2319 1775 Online 2320-7876

THE EFFECT OF FINANCIAL DETERMINANTS ON ORGANIZATIONAL PERFORMANCE: A STUDY ON INDIAN IT FIRMS

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Sukhavasi Santha Kumari,D. Sai Basivi Reddy,M. Manikanta Sai,K. Tarun Kumar Reddy
» doi: 10.48047/IJFANS/V11/Splis5/04

Abstract

Since many studies have been conducted in the field of IT industries, there is a dearth of research that examines the determinants or factors that influence the organizational performance of IT firms. this paper investigates the financial determinants that may affect the overall organizational performance of IT firms. For this purpose, this study considered top BSE listed 15 Indian IT companies for the period of five years (2015-2019). For analysis, we have used panel regression with the help of STATA software. Panel regression analysis is suitable for this research as it is well suited to deal with any fixed effect or a random effect error component in the study. As per the findings, Indian IT companies are highly influenced by the Economic Policy Uncertainty. Furthermore, the study outcomes indicate, there is a positive relationship between firm size and firm performance. Also, the return on asset reflects the negative influence of DPS. For measuring the organizational performance, the study taken ROA as a proxy of profitability and overall firm performance.

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