Asset Management and Financial Performance in Jharkhand Coal Mines: An Empirical Study of Public and Private Firms

The coal industry is crucial to India’s economic development. To promote reliable energy supply, substantial investments in coal mining are necessary. Efficient asset management increases capital investment efficiency, boosts financial performance, and is vital for promoting investing activities across the industry. This study investigates the relationship between asset management and financial performance across public and private coal companies in Jharkhand, India, to clarify the relevance of asset management in the sector and to identify whether ownership type affects asset management efficiency and its impact on performance. The research employs a panel econometric framework to examine a comprehensive dataset covering Jharkhand coal firms operating between 2013 and 2021. Asset management efficiency is estimated with an input-oriented non-parametric technique as a relevant firm-specific proxy. Financial performance is measured through liquidity, profitability, and productivity indicators. Firm-specific conditions such as capital structure, governmental support, and operational durability differ vastly between public and private companies in the Jharkhand coal sector, necessitating a comparison of the two ownership types as a means of clarifying asset management importance. Asset management can be understood as enhancing the efficiency of capital investment in and utilization of fixed and current assets (Kusnodiharjo & Augustine, 2019). Nevertheless, the exact definition varies widely across the existing literature, making a consistent theoretical framework elusive. According to Zheng et al. (Zheng et al., 2007) , two relevant decision-making dimensions are increasing capital investment efficiency to improve future revenue and optimizing asset utilization to boost immediate turnover. In industry-specific contexts, the tangible nature of coal assets implies limited forms of utilization adjustment and modifications, restricting the range of adoption to asset turnover. Additional financial assets, regulatory support, and state-directed infrastructural investment bolster public company capital access and stimulate operations and developmental prospects; meanwhile, political guidance to the public sector and provision of subsidies generally diminish service quality and productivity compared to private companies.