FINANCIAL ANALYSIS AND CORPORATE GOVERNANCE OF AA: A CASE STUDY

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Philip Law, Desmond Yuen

DOI:10.22495/cocv16i2art2

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Abstract

This paper evaluates AA’s financial performances by analyzing its financial reports throughout 2010 to 2012 using ratio analysis. Strengths and weaknesses are identified. Quantitative ratio analysis (liquidity measurement, profitability indicators, financial leverage/gearing, operating performance and investment valuation) indicates AA scores satisfactory among the five indicators, implying good corporate governance positively enhances financial performance. Positive cash flows reveal satisfactory liquidity positions. Results provide implications for companies to maintain better corporate governance in future.

Keywords: Corporate Governance, Financial, Performance, Ratio Analysis

JEL Classification: G30, M4, M41

Received: 07.10.2018

Accepted: 28.01.2019

Published online: 30.01.2019

How to cite this paper: Law, P., & Yuen, D. (2019). Financial analysis and corporate governance of AA: A case study. Corporate Ownership & Control, 16(2), 19-24. http://doi.org/10.22495/cocv16i2art2