Corporate financial practices of the auto parts industry

Research Paper (postgraduate) from the year 2012 in the subject Business economics - Investment and Finance grade: 20 University of St Andrews course: Corporate Finance language: English abstract: This report aims to evaluate the validity of corporate financial practices in the under-­?researched auto parts industry additionally considering the ownership structure of companies because of a division in share distribution. Recent economic struggles have impacted the automobile industry resulting in stagnating sales on a global scale (Haugh et al 2010). This affects the auto parts industry a direct supplier to automobile companies aftermarket and exchange parts. Rising raw material costs have increased the pressure on auto parts manufacturers as buyers disallow price increases. Market stimulus mostly from Asia-­?Pacific is forecast to increase total parts market by 20% by 2015 (Datamonitor 2011).