International Journal in Management & Social Science
  • Year: 2015
  • Volume: 3
  • Issue: 8

Factors Influencing Financial Risk-A Case Study of NSE NIFTY Companies

  • Author:
  • Subhra Simantinee1, T.V.V. Phani Kumar2
  • Total Page Count: 6
  • Page Number: 132 to 137

1Research Scholar (Ph. D) Department of Finance, GITAM Institute of Management, GITAM University, Rushikonda, Visakhapatnam-530045

2Associate Professor, Department of Finance, GITAM Institute of Management, GITAM University, Rushikonda, Visakhapatnam-530045

Online published on 22 June, 2018.

Abstract

Risk Management is the application of proactive strategy to set up, lead, organize, and Control the wide selection of risks that are rushed into the fabric of an organization's daily and long-term functioning. Companies face business risks, which in worst case can cause financial distress and lead to bankruptcy. This paper attempts to analyze the factors influencing the financial risk of companies. The present paper analyses the factors influencing the financial riskof NIFTY 50 companies excluding banks. The data required for the analysis is collected from the annual reports of the companies. Alexander Bathory Model is used to measure the financial risk and Multiple Regression Analysis is used to study the relationship between the financial risk and the factors causing financial risk.

Keywords

Financial Risk, Alexander Bathory Model, Multiple Regression Analysis, Risk Management