by Aleena Parvez | Sep 16, 2025
Comprehensive analysis of firm objectives comparing profit maximization versus shareholder wealth maximization, addressing agency problems between managers and shareholders. Covers financial development post-1991 LPG reforms, managing long-term and short-term shareholders, and evolving CFO responsibilities including financial analysis, investment decisions, capital structure planning, and comprehensive risk management strategies.
by Jayant Pratap Singh | Sep 6, 2025
Financial statement analysis uses several key techniques to evaluate a company’s financial health. Horizontal analysis compares data across periods to spot trends and growth patterns. Vertical analysis expresses line items as percentages of a base figure, revealing the structure of financial statements. Ratio analysis calculates financial ratios like liquidity, profitability, and solvency to assess performance and operational efficiency. Trend analysis examines historical data to forecast future market movements. These methods collectively provide insights into a company’s profitability, stability, and efficiency, aiding stakeholders in making informed investment, credit, and management decisions.
by Jayant Pratap Singh | Mar 24, 2025
The Chi-Square test is a statistical method used to examine the association between two categorical variables. It helps determine whether the observed frequencies in different categories differ significantly from the expected frequencies under the assumption of independence. The test involves calculating the Chi-Square statistic using the formula χ2=∑(O−E)2Eχ2=∑E(O−E)2, where OO is the observed frequency and EE is the expected frequency. This statistic is compared against a critical value from the Chi-Square distribution based on degrees of freedom and significance level. Common applications include testing for independence, goodness of fit, and homogeneity to support hypothesis testing in varied fields such as market research, healthcare, and social sciences.
