BUSINESS AND FINANCIAL RISKS IN INDIAN AUTOMOBILE INDUSTRY: AN EMPIRICAL INVESTIGATION

Abstract

With the spectacular changes in the Indian business environment, the earning patterns and the financing policies taken up by the Indian corporate players have also changed significantly, leading to notable changes in the pattern of business as well as financial risks associated with them. In this backdrop, the present paper attempts to analyze the business and financial risks in Indian Automobile industry during the period 2001-02 to 2010-11. The sample size of the study consists of eleven companies which have been selected by following purposive sampling procedure from the list of top 1,000 companies in India (based on net sales for the year ended 31 st March, 2011). Ginni’s coefficient of concentration has been used in this study for measuring risks. Other relevant statistical measures have also been applied at appropriate places while tackling the issues addressed in the study.