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Analysing Impact of Economic and Firm Parameters on Z-Score of Selective Public Sector Banks of India: An Empirical Analysis

International Journal of Financial Management

Volume 14 Issue 3

Published: 2024
Author(s) Name: Hiren Jigarkumar Jani, Butalal C. Ajmera | Author(s) Affiliation: Department of Commerce, Maharaja Krishnakumarsinhji Bhavnagar University, Gujarat, India.
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Abstract

The study focuses on the analysis of ‘z-score’ and checking the impact of economic as well as firm parameters on the former. The exploratory study applies the period from 2018–19 to 2022–23. The study utilises multiple regression analysis, the result indicates that, GDP (Gross Domestic Product) and CPI (Consumer Price Index) has influence on the ‘z-score’ of the selective public banks. The Age of the firm has also slight of the influence on ‘z-score’. The study is helpful for understanding the current status-quo of the public sector banks of the India. The overall improvement has been marked in every selected bank for the study.

Keywords: Z-Score, GDP, Inflation, Bank, Financial Distress

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