Impact of Industry Type and Firm Characteristics on Firm-level Financial Performance— Evidence from Indian Industry

Though the importance of considering industry type as a major determinant of firm level performance is well recognised, there is a dearth of evidence relating to the Indian situation. This paper is an attempt to fill this gap. The analysis pertains to the decade of the 1980s and covers 171 firms in twenty-one industry groups. The authors have developed two composite measures that reflect the growth and profitability dimensions. The results indicate that both industry effects and firm characteristics have significant influence on the above two dimensions.