Assessing the Impact of Multiple Stock Screening Techniques on the Performance of Listed Manufacturing Firms in Bangladesh.

Abstract:

This paper investigates the efficacy of various screening methods in analyzing the financial distress and performance of listed manufacturing companies listed in Bangladesh. As making financial decisions becomes complicated, businesses, investors, and policymakers require sound evaluation methodology to analyze the viability and potential growth of firms. In this study, several screening techniques (e.g., ratios, market, and operating indicator) are systematically analyzed to determine their ability to predict manufacturing firms’ viability. The approach is put into practice by the sample of listed manufacturing companies of various sectors and the quantitative approach is used to measure associations between screening variables and performance variables including profitability, liquidity, and growth potential. The results indicate that multimethod function-testing could create one integrated performance assessment method and therefore provide a richer picture for the decision process. This paper adds to the literature in corporate finance by demonstrating that a variety of screening devices can be useful tools for monitoring the manufacturing industry and offers both academic and practical relevance for financial analysts, investors and firms seeking long-term survival.