1Research Scholar, Department of Management, North Eastern Hill University, Tura Campus, Meghalaya, India
2Professor, Department of Management, North Eastern Hill University, Tura Campus, Meghalaya, India
*Corresponding Author: e-mail: kcbiswal@rediffmail.com
Online published on 20 March, 2021.
The corporate performance of power industry and GDP as the economic growth in India have been undertaken to determine the effect of corporate performance on economic growth and vice versa. The Indian power industry characterized by loss making industry, less attractive for investment, external financial constraints and mostly the liquidity position impacted by the irregular payment from the consumers and other parties, have chosen for the study with a special reference to select private power generating companies. The time series data for a period of 16 years i.e., 2001-02 to 2016-17 from secondary sources is collected for 18 companies belonging to private sector. The excel spreadsheets and the Statistical Package i.e., STATA for the Vector autoregression model and Granger Causality test was used and the findings showed that the corporate performance has no causality effect on Economic growth but the Economic growth does have causality effect on Corporate performance and can be concluded that there is enough evidence for one-way directional causality relationship between the Economic growth and the corporate performance of power industry in India.
Corporate Performance, GDP, Economic Growth, Power Industry, Challenges
