Financial Health & Corporate Performance of Listed Manufacturing Companies in South Korea & Taiwan: A Comparative Study of the Two Asian Tigers


  • Foo See Liang
  • Shaakalya Pathak Research Assistant (Graduate Alumnus) School of Accountancy, Singapore Management University,178900 Email:


Financial Health, Corporate Performance, Manufacturing, Altman Z-Score, Return on Equity


South Korea and Taiwan are two leading economies in Asia Pacific. This study examines the relationship between the financial health, as measured by the Altman Z-Score, and corporate performance, as measured by the Return on Equity (ROE), of listed manufacturing companies in these two markets. A linear regression was conducted between these variables to determine the magnitude and direction of their relationships. The trends of Z-Scores over a fourteen-year period are also analyzed. The analysis covers the period from 2000 to 2013(inclusive) and yielded a statistically positive correlation between ROE and the Z-Score for both markets. South Korea and Taiwan both registered moderate-to-strong mean and median Z-Scores. However, Taiwan is comparatively healthier. These findings further support the economic stature of these two markets as Asian tigers.


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How to Cite

See Liang, F., & Pathak, S. (2016). Financial Health & Corporate Performance of Listed Manufacturing Companies in South Korea & Taiwan: A Comparative Study of the Two Asian Tigers. Asian Journal of Business and Management, 4(2). Retrieved from