An Analysis of Z-Scores & Performance: Manufacturing Companies in Hong Kong


  • Foo See Liang
  • Shaakalya Pathak



financial health, corporate performance, manufacturing, altman z-score, roe, hong kong, hkse, sehk


Hong Kong is a key leading economy in the Asia Pacific region. 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 this market. A linear regression has been conducted between these variables to determine the magnitude and direction of their relationships. The trends of Z-Scores over a five-year period have also been analysed. The analysis covers the period from 2013 to 2017 (inclusive) and yields a statistically positive correlation between ROE and the Z-Score for the market. Hong Kong registered relatively healthy mean and median Z-Scores. These findings further support the strong economic position of this market as an Asian giant.



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How to Cite

See Liang, F., & Pathak, S. (2019). An Analysis of Z-Scores & Performance: Manufacturing Companies in Hong Kong. Asian Journal of Business and Management, 7(2).