Title: Impact of macroeconomic and institutional factors on the financial performance: a study of platform-based companies

Authors: Sangita Dutta Gupta; Parth Sodani; Ritam Karmakar; Shivanshu Gupta; Swapnil Singh

Addresses: Jagdish Sheth School of Management, Bangalore, India ' PGDM, Jagdish Sheth School of Management, Bangalore, India ' PGDM, Jagdish Sheth School of Management, Bangalore, India ' PGDM, Jagdish Sheth School of Management, Bangalore, India ' PGDM, Jagdish Sheth School of Management, Bangalore, India

Abstract: The purpose of this paper is to study the possible interrelationship among macroeconomic factors, institutional factors, and financial performance of the selected platform-based companies operating in India. The study examined the effect of macroeconomic factors like real effective exchange rate, inflation rate gross domestic product growth rate on the financial performance of platform-based companies. The size of the company measured as a log of total assets is the control variable. Additionally, the six dimensions of country governance formed part of the institutional factors. The dependent variable, i.e., the financial performance of firms, is measured in terms of return on assets. The study uses the panel regression method to capture this effect for 23 platform-based companies from 2007 to 2019. It has implications for managers and policymakers who may better comprehend the interaction between macroeconomic elements, firm-specific factors, institutional factors, and profitability of firms that operate on platform-based business models.

Keywords: macroeconomic factors; firm-specific factors; institutional factors; platform-based companies; panel regression.

DOI: 10.1504/IJSOM.2023.132477

International Journal of Services and Operations Management, 2023 Vol.45 No.3, pp.314 - 331

Received: 12 Nov 2020
Accepted: 24 Mar 2021
Published online: 21 Jul 2023 *

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