This paper conducts an empirical study to assess the relationship between two industries namely Cement Industry and the Iron & Steel Industry of India. In this study, Canonical Correlation Analysis (CCA) has been carried out between the two sets of financial ratios of the two industries. A set of 44 financial ratios for a period of 10 years has been used here. Factor Analysis is conducted first on each set of variables (financial ratios) to derive a smaller number of variables from each set for facilitating more reliable and focused study. Factor scores are saved as variables to proceed with the Canonical Correlation Analysis. Bivariate Pearson Correlation is carried out on one to one basis for analyzing the amount of association between the two sets of Canonical Variates. Multiple Regression Analysis is conducted to test the validity of the dependency and in-dependency relationship present amongst two sets variables. Results of the study are analyzed further to derive which aspects of the two industries are associated closely.

Login to Download PDF

Please login with your Paper ID and password to access the full PDF.

🔑 Login to Download