Impact of Financial Performance Ratios on Stock Returns – A Study With Reference to National Stock Exchange

Document Type : Primary Research paper

Authors

1 Assistant Professor, Department of Management Studies, Centre for PG Studies, Visvesvaraya Technological University, Kalaburagi, Karnataka

2 Associate Professor, Department of Management Studies, School of Business Studies, Vijayanagar Sri Krishnnaderaya University, Bellary, Karnataka

Abstract

The study investigates the relationship between the financial ratios with stock returns of some the National Stock Exchange listed companies. The data has collected from CMIE Prowess database for a period of ten years from 2010 to 2020. A total of 160 firms were selected after using the inclusion and exclusion criteria. The study makes use of the Panel Data Regression Model to analyze the relationship between six dependent variables and one independent variable. The results reveal that all the independent variables have a positive and significant impact on the determination of stock returns. The consequences of this investigation propose that managers' accomplishment in stock valuation basically relies upon the right comprehension of compelling resources. Furthermore, it is suggested that managers enhance the worth of their organization's stock by the prober use and blend of elements successful in stock valuation as indicated by the data of the organization. The findings of paper are significant as far as framing investment strategies techniques and to predict market efficiencies.

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