Indian Journal of Research in Capital Markets

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Impact of Sales, Net Profit, and EPS on Stock Behavior in Emerging Markets : A Study of Indian Companies


Affiliations
1 Assistant Professor, University School of Management Studies, GGSIP University, Dwarka, New Delhi, India
2 Faculty, ICFAI Business School, Gurgaon, India
3 Faculty in Management, Chandigarh University, Gharuan, Punjab, India

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The present study investigated the effects of sales, net profit, and earnings per share on the stock behavior of NSE-listed companies. Thirty five major companies were chosen from the companies listed at NSE. The study is based on quarterly data of sales, net profit, and EPS from the period of 2001 to 2010. Descriptive statistics, correlation, regression, unit-ischolar_main test, and Granger's causality were used for data analysis. The study found no visible effect of sales, earnings per share, and net profit on the future stock prices. These results indicated that no abnormal profits could be made by trading in the stocks on the basis of sales, earnings per share, and net profit.

Keywords

Sales, Net Profit, Earnings per Share, NSE, Unit-Root, Granger's Causality

G10, G11, G14

Paper Submission Date : June 30, 2015 ; Paper sent back for Revision : July 9, 2015 ; Paper Acceptance Date : September 20, 2015.

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  • Impact of Sales, Net Profit, and EPS on Stock Behavior in Emerging Markets : A Study of Indian Companies

Abstract Views: 164  |  PDF Views: 0

Authors

Gagan Deep Sharma
Assistant Professor, University School of Management Studies, GGSIP University, Dwarka, New Delhi, India
Mandeep Mahendru
Faculty, ICFAI Business School, Gurgaon, India
Sanjeet Singh
Faculty in Management, Chandigarh University, Gharuan, Punjab, India

Abstract


The present study investigated the effects of sales, net profit, and earnings per share on the stock behavior of NSE-listed companies. Thirty five major companies were chosen from the companies listed at NSE. The study is based on quarterly data of sales, net profit, and EPS from the period of 2001 to 2010. Descriptive statistics, correlation, regression, unit-ischolar_main test, and Granger's causality were used for data analysis. The study found no visible effect of sales, earnings per share, and net profit on the future stock prices. These results indicated that no abnormal profits could be made by trading in the stocks on the basis of sales, earnings per share, and net profit.

Keywords


Sales, Net Profit, Earnings per Share, NSE, Unit-Root, Granger's Causality

G10, G11, G14

Paper Submission Date : June 30, 2015 ; Paper sent back for Revision : July 9, 2015 ; Paper Acceptance Date : September 20, 2015.




DOI: https://doi.org/10.17010/ijrcm%2F2015%2Fv2%2Fi4%2F102614