TAILIEUCHUNG - Mathematical modelling and the empirical validation of organisational financial performance – conceptual insights Into the inferential focus of the analytical perspectives in the finance discipline

This study traces the evolution of analytical methods in building Finance Theory with a view to strike an ‘optimal’ balance between the analytical rigour and the real-world inferential insights. | Mathematical modelling and the empirical validation of organisational financial performance conceptual insights Into the inferential focus of the analytical perspectives in the finance discipline International Journal of Management IJM Volume 11 Issue 3 March 2020 pp. 399 407 Article ID IJM_11_03_042 Available online at http ijm JType IJM amp VType 11 amp IType 3 Journal Impact Factor 2020 Calculated by GISI ISSN Print 0976-6502 and ISSN Online 0976-6510 IAEME Publication Scopus Indexed MATHEMATICAL MODELLING AND THE EMPIRICAL VALIDATION OF ORGANISATIONAL FINANCIAL PERFORMANCE CONCEPTUAL INSIGHTS INTO THE INFERENTIAL FOCUS OF THE ANALYTICAL PERSPECTIVES IN THE FINANCE DISCIPLINE Dr. P. Raghunadha Reddy Professor and Head Department of Management Studies Sri Venkateswara University Tirupati India . Siva Sankara Reddy Research Scholar Department of Management Studies Sri Venkateswara University Tirupati India ABSTRACT Purpose of the Study This study traces the evolution of analytical methods in building Finance Theory with a view to strike an optimal balance between the analytical rigour and the real- world inferential insights. Methodology The theoretical developments in the latter half of the 20th century in the field of Finance have focused extensively on the Analytical basis of sound theory building and its Empirical validation using the Statistical tools. The pioneering work of Miller and Modigliani that analytically established the relationship between the firm s financial leverage Debt component and the Value of the firm under varying assumptions marked the beginning of analytical approaches to building Finance Theory. The corporate bankruptcy model developed by Altman was also studied. The subsequent empirical studies have also been examined to assess the practical validity and relevance of their findings. http IJM 399 editor@ Dr. P. Raghunadha Reddy and . Siva Sankara

• Tài chính doanh nghiệp
• Evolution of analytical methods
• Real world inferential insights
• Miller and Modigliani
• Firm’s financial leverage
• Corporate bankruptcy model