PreprintConcept PaperVersion 1Preserved in Portico This version is not peer-reviewed
Validating the Effects of Disruptive Technologies using Operational Breakeven Theory, Relative Solvency Ratio and Altman’s Z-score on Selected Firms in Nigeria and India
Version 1
: Received: 4 November 2021 / Approved: 5 November 2021 / Online: 5 November 2021 (11:31:53 CET)
How to cite:
Enyi, E.P.; Ajibade, A.K. Validating the Effects of Disruptive Technologies using Operational Breakeven Theory, Relative Solvency Ratio and Altman’s Z-score on Selected Firms in Nigeria and India. Preprints2021, 2021110118. https://doi.org/10.20944/preprints202111.0118.v1
Enyi, E.P.; Ajibade, A.K. Validating the Effects of Disruptive Technologies using Operational Breakeven Theory, Relative Solvency Ratio and Altman’s Z-score on Selected Firms in Nigeria and India. Preprints 2021, 2021110118. https://doi.org/10.20944/preprints202111.0118.v1
Enyi, E.P.; Ajibade, A.K. Validating the Effects of Disruptive Technologies using Operational Breakeven Theory, Relative Solvency Ratio and Altman’s Z-score on Selected Firms in Nigeria and India. Preprints2021, 2021110118. https://doi.org/10.20944/preprints202111.0118.v1
APA Style
Enyi, E.P., & Ajibade, A.K. (2021). Validating the Effects of Disruptive Technologies using Operational Breakeven Theory, Relative Solvency Ratio and Altman’s Z-score on Selected Firms in Nigeria and India. Preprints. https://doi.org/10.20944/preprints202111.0118.v1
Chicago/Turabian Style
Enyi, E.P. and Ayodeji Kofi Ajibade. 2021 "Validating the Effects of Disruptive Technologies using Operational Breakeven Theory, Relative Solvency Ratio and Altman’s Z-score on Selected Firms in Nigeria and India" Preprints. https://doi.org/10.20944/preprints202111.0118.v1
Abstract
Disruptive technologies (DT) have featured prominently in almost every human activity since the advent of computerization. The likely effects of DT on economic processes and human professions have and continue to generate fears and debates which spurred this investigation. To break away from the traditional approach the operational breakeven theory and the discriminant analysis techniques of Altman’s Z-score, and Enyi’s Relative Solvency Ratio were used to examine the relationship between firms’ market-induced-survival-ratio (MISR) and the disruptive technology gains index (DTGI) of seventy-three firms drawn from Nigeria and India. Descriptive and inferential statistics were used to analyze the data generated. The results showed that a sizeable number of firms has profited from the introduction of disruptive technologies with MISR and DTGI returning a 10% significant relationship while others are still struggling to measure up to the requirements of disruptive technologies in their chosen economic fields. The implication of this is that businesses must brace up and embrace digital transformation if they must stay afloat in this era of disruptive technologies. This study recommends a revolutionary approach to digital transformation in view of the fast pace of global integration while managers and business owners should adopt more pragmatic approach in appraising the operations and finances of a firm for effective results and timely responses to potential business challenges.
Business, Economics and Management, Accounting and Taxation
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
