Relationship of financial performance measurements to Altman Z-Score: Pharmaceutical industry in selected Southeast Asian countries

• Main Authors: Alojado, Jelline Patricia L., Javellana, Charis Klaire T., Liao, Karlene Erika C.
• Format: text
• Language: English
• Published: Animo Repository 2013
• Subjects: Pharmaceutical industry > Philippines > Econometric models; Costs and Cost Analysis; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11253
• Institution: De La Salle University

Performance measurement is mainly the tool used by companies in assessing their progress towards achieving its goals, specifically giving the best value it can create for its stakeholders. Accounting measures used to be the most popular tool used by companies. However, because of the emergence of globalization and international markets, market-based measurement is perceived by many authors as the more appropriate tool to evaluate financial metrics (according and market-based) to Altman Z- Score for the period 2007-2011. The authors found out that for publicly-listed Pharmaceutical companies is Southeast Asian countries, when markets are in their normal state, market-based metrics have higher correlation with Altman Z-Score than accounting measures, thus is more reflective of the firm performance. This was done using Simple Regression Analysis.