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Saji, T. G.
- Long Run Behavior of Equity Returns: An Exploration of Indian Experience
Abstract Views :380 |
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Authors
T. G. Saji
1,
S. Harikumar
2
Affiliations
1 Department of Commerce and Management Studies, Government College, Thrissur, Kerala, 680014, IN
2 Department of Applied Economics, Cochin University of Science and Technology, Kerala, IN
1 Department of Commerce and Management Studies, Government College, Thrissur, Kerala, 680014, IN
2 Department of Applied Economics, Cochin University of Science and Technology, Kerala, IN
Source
Asian Journal of Management, Vol 4, No 1 (2013), Pagination: 22-27Abstract
The absence of information efficiency in a market signals the possibility of abnormal returns to investors. Understanding the pattern of past price changes or assessing the strength of fundamentals can do this for investors.By using Indian data for the period of 2000-2010 this paper first explores the long run behavior of stock returns and then investigates the explanatory power of past price changes in predicting future asset returns. Binomial and Runs tests provide the conclusive evidence for the non-random behavior of stock returns. Auto Correlation Function and Ljung- Box Q-statistic find the forecasts of future returns based on simply extrapolating the historical stock prices are dubious.The findings of the study propose chances for investors in Indian market to earn extra returns by pursuing fundamental approach to stock valuation.
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- Capital Intensity, Financial Leverage and Market Valuations in India:Evidence from a Panel of FMCG Firms
Abstract Views :365 |
PDF Views:0
Authors
T. G. Saji
1,
K. V. Eldhose
1
Affiliations
1 Sri C Achutha Menon Government College, Thrissur, Kerala - 680014, IN
1 Sri C Achutha Menon Government College, Thrissur, Kerala - 680014, IN
Source
Asian Journal of Management, Vol 8, No 4 (2017), Pagination: 1037-1040Abstract
Capital intensity and firms’ valuation has been one of the most debatable topic of research for the past many years and keeps many researchers continue to investigate. This paper, covering the recent ten year financials from the annual reports of 15 leading FMCG firms in India`, proposes to link the capital intensity with firms’ profitability and capital gearing practices. The ultimate goal of the research is to investigate the effect of capital intensity on market valuation of firms measured by Tobin’s q. The panel regression procedure pursued in the study traces out the effect of capital intensity in the variations in financial leverage of firms. The debt overhangs in liabilities in the form of larger debt to equity structure, inversely affects the market valuation of FMCG firms in India. The research eventually challenges the classical capital structure theories explaining the positive correlations between capital gearing practices and market valuation of firms.Keywords
FMCG, Capital Intensity, Tobin’s Q.References
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