An Analysis of Factors Influencing Firm Value on Women-owned Firms: A Panel ARDL-ECM Approach

Literature discusses numerous factors relating to financial ratios and balance sheet components influencing firm value, the key indicator for evaluating firms’ performance. Besides, research works examining the determinants of firm value in women-owned firms are rarely seen. Reacting to this, present study aims to analyse the impact of 14 key variables that belong to financial ratios and balance sheet components on firm value, with a specific focus on women-owned firms. Using data of 381 women-owned firms sourced from the Centre for Monitoring Indian Economy spanning 2014–2023, this study employs principal component analysis on 14 variables to obtain three key significant indices to apply panel autoregressive distributed lag error correction model subsequently on the identified indices. The results unequivocally demonstrate the significant positive impact of financial ratios and balance sheet components on the firm value of women-owned firms. This research can enable the stakeholders to plan and execute strategies for improvement and mitigate the risk.