Paper: arXiv 2410.06772

Authors: Ritij Saini, Aditya Deora, Kirtesh Gadiya

Abstract

The real estate sector is one of the key drivers of India’s national economy, contributing about 7.3% to the GDP. As the market evolves, more players enter, and government policies become more stringent, Indian real estate companies face increasing competition. Improving financial competitiveness is crucial for the survival and growth of these companies. This paper presents a financial competitiveness evaluation index system for Indian-listed real estate companies, covering profitability, solvency, and operational capacity. Using key financial ratios and a scoring system, the financial competitiveness of various companies was evaluated, revealing that companies with high scores have strong profitability and operational capacity. In contrast, those with lower scores struggle with solvency and working capital.

Complexity vs Empirical Score

  • Math Complexity: 3.5/10
  • Empirical Rigor: 4.5/10
  • Quadrant: Philosophers — conceptual discussion, limited math and data

Why this score: The paper applies a well-known Shannon entropy weighting technique to standard corporate financial ratios for Indian real estate firms. While the methodology is straightforward and practical, it lacks deep mathematical complexity or significant empirical novelty beyond basic index construction.

Research Flowchart

  flowchart TD
    A[Goal: Evaluate Financial Competitiveness of Listed Indian Real Estate Companies] --> B[Collect Financial Ratio Data]
    
    subgraph Inputs [Key Evaluation Dimensions]
        B --> C1[Profitability]
        B --> C2[Solvency]
        B --> C3[Operational Capacity]
    end

    C1 & C2 & C3 --> D[Apply Entropy Method]
    
    D --> E[Calculate Objective Weights & Competitiveness Scores]
    
    E --> F1[High-Scoring Companies: Strong Profitability & Operations]
    E --> F2[Low-Scoring Companies: Solvency & Working Capital Deficits]

Cited References (17)

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  2. Real Estate Regulation and Development Act (2016) — link
  3. Central Goods and Services Tax Act (2017) — link
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  6. Financial Competitiveness and Core Financial Competence of Enterprise (2005)
  7. Study on the Formation Mechanism of Three-dimensional Financial Competitiveness (2008)
  8. The Competitive Advantage: Creating and Sustaining Superior Performance (1985)
and 9 more
  1. Firm Resources and Sustained Competitive Advantage (1991) — link
  2. A Reseach On the Financial Competitiveness of Chinese Textile and Apparel Listed Companies (2011)
  3. FINANCIAL RATIOS, DISCRIMINANT ANALYSIS AND THE PREDICTION OF CORPORATE BANKRUPTCY (1968) — link
  4. Methodological issues in the use of financial ratios (1979) — link
  5. Strategic Management and Business Policy (1992) — link
  6. India’s Residential Property Market Analysis 2024 (2024)
  7. A Mathematical Theory of Communication (1948)
  8. Evaluation of Financial Competitiveness of Companies Based on Entropy Theory (2010) — link
  9. Über die bewegende Kraft der Wärme und die Gesetze, welche sich daraus für die Wärmelehre selbst ableiten lassen (1850)

0 of 17 cited works are in the corpus; resolved via arXiv source bundles, Semantic Scholar and OpenAlex. Corpus-wide: 2518 linked papers.