*6.1. Sample*

Our sample is limited to manufacturing companies for a period of six years from 2010 (Commencement year of BFRS-7) to 2015. We did not consider companies under the financial category because of their differing nature of business and type of financial statements. The listed manufacturing companies are divided into twelve industrial sectors. Six sectors (50%) from these twelve industrial sectors have been selected using a simple random sampling technique so that the results could be generalized. The selected industrial sectors are Cements, Engineering, Fuel & Power, Jute, Pharmaceuticals & Chemicals, and Tannery, which comprise 91 companies as of 31 December 2015. Out of these 91 companies, 48 (53%) companies have been selected for this study based on continuity of operation. All companies included in our sample experienced financial risks described in Table 1. Finally, our sample size is 288 (48 × 6) firm-year observations in the 2010–2015 period, as the data for 2016 and onwards were not available at the time of our analyses.


