Operating Profit And Financial Performance – A Mediation Effect Of Operating Variables

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Sreemathi S, Dr K. S. Sekhara Rao


The present study focused on the family and non-family run business financial performance. The study has considered the 36 stocks from NSE India base Index Nifty (excluding banks and employee owned stocks) and classified family and non-family run businesses. The study has considered the Operating profit, ROA as a proxy to financial performance and operating variables as Employee cost and Debt for the period of 10 years i.e. 2010-11 to 2019-20. The study applied the bivariate correlation method to measure the relationship of operating profit with the financial performance and operating variables and result observed that in family and non-family businesses relation found to be similar. The operating profit impact on Financial Performance with the mediation effect of Operating variables and the result indicated that Family run businesses financial performance increased with the decreased operating variables compared with the Non-family run businesses of Nifty index stocks. The study indicates that family run business entities financial performance observed to be superior to non-family run businesses with the operating variables as mediating variables.

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