Business and Financial Risks in Indian Steel Industry: An Empirical Analysis

Abstract

With the transformation in the Indian business environment along with the global economy during the past few decades, the earning patterns and the financing policies taken up by the Indian corporate players have also changed significantly, leading to changes in the pattern of business as well as financial risks associated with them. In this backdrop, the present paper seeks to analyze the business and financial risks in Indian Steel industry during the period 2001-02 to 2010-11. The sample size of the study consists of twentysteelcompanies which have been selected by following purposive sampling procedure from the list of top I, 000 companies in India (based on net sales for the year ended 31st March, 2011). Ginni's coefficient of concentration has been used in this study for measuring risks. While tackling the issues analyzed in this study, other relevant statistical tools and techniques have also been applied.