1.
Priyanka Agarwal
– UGC Senior Research Fellow, Department of Commerce, University of North Bengal, West Bengal, India.
2.
Debabrata Mitra
– Vice Chancellor, West Bengal State University, Barasat, West Bengal, India.
3.
Jamaluddeen
– Assistant Professor, Department of Commerce, University of North Bengal, West Bengal, India.
Abstract
The present study examines the influence of convergence on the financial performance of the top 20 pharmaceutical companies based on highest market capitalisation by considering the period 01/04/2007 to 31/03/2016 as the pre-Indian Accounting Standard (Ind AS) adoption period and the period 01/04/2016 to 31/03/2025 as the post-Ind AS adoption period. It used a non-parametric test to evaluate significant changes in financial ratios and net worth. The final results indicated that improvements were more prominent in profitability and efficiency measures, whereas liquidity indicators and certain financial stability measures showed mixed trends. The conclusions of this study will be useful to accounting standard setters, chartered accountants, regulatory authorities, corporate professionals, investors, stock exchanges, creditors, lenders, and, researchers. It shall also serve companies that are not required to mandatorily adopt Ind AS, as it gives them an opportunity to shift to Ind AS, which offers better global financial reporting.
Keywords Globalisation, IFRS, Pharmaceutical Companies, Financial Performance, Financial Ratios, Ind AS
