Research Journal of Economics & Business Studies - RJEBS - The ...

More documents

Recommendations

Info

7 FINDINGS Risk Return Analysis Investments can be made in Ashok Leyland stock, ICICI stock, ITC company stocks, TCS stock, Indian Oil Corporation stock and in Airtel stock as the risk is low and there is an average return Regression Analysis The change in Inflation rate affects the stock price of Axis bank, HDFC bank, Dabur, Nestle, TCS, Tech Mahindra, Bharat petroleum, Hindustan petroleum and Airtel. The change in forex rate affects the stock price of Reliance, Idea, Airtel, Indian Oil corporation, Oil and Natural Gas, TCS and Dabur. The change in the budget affects the stock price of Wipro, Oil and natural gas. Trend Analysis The performance of the each sector for last 3 years are analyzed and forecasted for next 2 years. From the analysis it is interpreted that the performance of Banking sector will be good and the Telecommunication sector will be the low performing sector. 8 RECOMMENDATIONS To investors The macroeconomic factors have considerable impact on the share price movements and hence the investors can consider the change in macroeconomic factor before making the investment. The investor should have knowledge of exchanging the stocks during the change in macroeconomic factor. Banking sector is high performing sector which investors can invest in future. To management The management can give awareness regarding the consequences of the effect on the stock price fluctuation to the investors before investing. The management can give Seminars, presentations to the regular investors about the cautious method taken when there is a change in macroeconomic factor. Book references 9.REFERENCES 1. S.Kevin,”Security Analysis and Portfolio Management”, Prentice Hall publication. 2. Punithavathy Pandian,”Security Analysis and Portfolio Management”, Vikas Publishing House Article references Mazharul H. Kazi (2008) 1 ,”Stock Market Price Movements and Macroeconomic Variables”, Vol. 4 No.3 June 2008 Pp.114-126 Ramin Cooper Maysami, Lee Chuin Howe(2007), “Relationship between Macroeconomic Variables and Stock Market Indices: Cointegration Evidence from stock Exchange of Singapore’s All-S Sector Indices”, Jurnal Pengurusan 24(2007) Tarika Singh, Seema Mehta, M.S.Varsha(2011), “Macroeconomic factors and stock returns: Evidence from Taiwan”, Vol. 2(4), pp.217-227 Tarika Singh, Seema Mehta, M.S.Varsha(2011), “Macroeconomic factors and stock returns: Evidence from Taiwan”, Vol. 2(4), pp.217-227 Sulaiman D. Mohammad, Adnan Hussain, (2009) “Impact of Macroeconomics Variables on Stock Prices: Emperical Evidance in Case of Kse”, European Journal of Scientific Research, Vol.38 No.1, pp.96-103 www.theinternationaljournal.org > RJEBS: Volume: 02, Number: 09, July-2013 Page 44
Abstract Evaluation of Public Sector Enterprises Performance: Application of Economic Value Added Pawan Kumar Avadhanam, Assistant Professor (Finance) & R.K. Mishra, Senior Professor & Director at the Institute of Public Enterprise (IPE), Osmania University Campus, Hyderabad, Andhra Pradesh – 500007, India Public sector enterprises were seen as white elephants and cash cows during the 1960s, 70s and 80s. There are many issues that are being raised by the market and public which need to be addressed. They are in regard to profitability, liquidity, dividend pay out, large and diverse investments, obsolete technology, lesser market orientation, over- regulation and control by government; etc an attempt is being made in the paper to evaluate the performance of public enterprises by applying the technique of Economic Value Added (EVA) for the companies quoted at the Bombay Stock Exchange. The sample consists of 46 companies quoted at the Bombay Stock Exchange over the period 1998-99 to 2008-09. The analysis shows that for the period in between 1998-99 to 2004-05, the Companies like KRL, IBP, NTPC and RACFL for the period of 2000-01 to 2004-05, have generated positive EVA, whereas most of the other companies exhibited negative EVAs. Further it is found that the CPSEs where able to generate positive EVA in the latter part of the study i.e. from the year 2005-06 to 2008-09. Further it is found that the Central Public Sector Enterprises (CPSEs) where able to generate positive EVA in the latter part of the study i.e. from the year 2005-06 to 2008-09. To conclude it would be wrong to say that EVA is a panacea for all corporate problems. It has its own limitations like it is based on Book value of the assets rather than the Market value of the asset. Section I 1. Introduction Public sector enterprises were seen as white elephants and cash cows during the 1960s, 70s and 80s. After the liberalization from the early 90s the continuous losses, operational and administrative inefficiencies have created a number of problems for them. However, at the same time so many companies in the public sector are still doing well and contributing significantly to the exchequer, even though the dominance is in the hands of the private sector. This is because of their strengths like clear balance sheets and accountability and the fact that they are in the core sectors. In the stock markets too PSUs have been playing a pervasive role in the post liberalization scenario. Most of the market players, both indigenous and foreign, have been shifting their portfolio investments to public sector scrips due to the increasing volatility with equity investments of the private sector. Inspite of the above, there are many issues that are being raised by the market and the public which need to be addressed. They are in regard to profitability, liquidity, dividend pay out, large and diverse investments, obsolete technology, lesser market orientation, over- regulation and control by government, etc. In fact these are the issues that are pulling PSUs down. It is also asserted that the failure of PSUs both in the product market and financial market is because of these factors. The question that arises here therefore is whether the public sector enterprises are performing in the markets or not whether there exists any strength in their balance sheets. This is not just a simple doubt of the researcher but a million dollar question as well. With this backdrop an attempt is being made in the paper to evaluate the performance of public enterprises by applying the technique of Economic Value Added (EVA) for the companies quoted at the Bombay Stock Exchange. www.theinternationaljournal.org > RJEBS: Volume: 02, Number: 09, July-2013 Page 45
Page 2 and 3: Table of Contents Articles THE GLOB
Page 4 and 5: The capital market of a country can
Page 6 and 7: Figure 1: Components of Indian Fina
Page 8 and 9: esults as regards the stability of
Page 10 and 11: 10. Hasan, M., K., Haque, M., & Law
Page 12 and 13: In the first stage of development,
Page 14 and 15: References: 1. Krishnamacharyulu CS
Page 16 and 17: and the additional procedures neede
Page 18 and 19: TO FIND THE RELATIONSHIP BETWEEN ST
Page 20 and 21: Table No.8: Association between Inv
Page 22 and 23: The foremost factor to be considere
Page 24 and 25: economic and social. Some people ma
Page 26 and 27: eliance, and transparency (Gain Raj
Page 28 and 29: loans/borrowings has been invested
Page 30 and 31: Pressure Nowadays, management is in
Page 32 and 33: includes the red flags that were ex
Page 34 and 35: sec110.01). However, it did establi
Page 36 and 37: The Impact of Macroeconomic Factors
Page 38 and 39: Bajaj 2.53 0.003 4.38 0.24 1.68 -0.
Page 40 and 41: Nestle 2012 ITC 2012 Q1 -0.28 -0.28
Page 42 and 43: Suzuki 2011 .22 1.82 1.91 1.87 1.99
Page 44 and 45: performance performance From the ab
Page 48 and 49: 1. Review of Literature Table 1: Su
Page 50 and 51: Building on the Markowitz framework
Page 52 and 53: NFL -4064 -8453 -2516 -3477 -1995 -
Page 54 and 55: Ochsner Robert C (1995), “Welcome
Page 56 and 57: quality measures the outcome of ser
Page 58 and 59: Out of 207 respondents, 108 respond
Page 60 and 61: check-in counters was provided. Ade
Page 62 and 63: esources to the best utilisation in
Page 64 and 65: ABSTRACT The State-Enterprise Exper
Page 66 and 67: Source: IE Singapore 2011/2012 Sing
Page 68 and 69: on a major property development pro
Page 70 and 71: given that the market at the time o
Page 72 and 73: Dunning, J. H., & Lundan, S. 2008.
Page 74 and 75: Table 1.Gross NPA of Nationalised B
Page 76 and 77: References 1.Internet Banking in In
Page 78 and 79: In addition, innovation implies inv
Page 80 and 81: esearch evidence by Mosey, Clare an
Page 82 and 83: 26. Nonaka, I., & Takeuchi, H. (199
Page 84 and 85: Similarly each organization is face
Page 86 and 87: working capital management impacts
Page 88 and 89: TABLE.2. SCHEDULE OF CHANGES IN WOR
Page 90 and 91: INTERPRETATION: The current ratio s
Page 92 and 93: INTERPRETATION: The working capital
Page 94 and 95: (Net worth =paid capital +reserve &
Page 96 and 97:
Corporate Governance and Sustainabi
Page 98 and 99:
quality. Derivation of this index w
Page 100 and 101:
Environmental, and Natural Resource
Page 102 and 103:
has a deeper message, one that has
Page 104 and 105:
www.theinternationaljournal.org > R
Page 106 and 107:
2010).The process of financialisati
Page 108 and 109:
.) The Tools Tools for data collect
Page 110 and 111:
14000000 12000000 10000000 8000000
Page 112 and 113:
40000000 30000000 20000000 10000000
Page 114 and 115:
gifts at the time of marriage. Rece
show all

Research Journal of Economics & Business Studies - RJEBS - The ...

Create successful ePaper yourself

Delete template?

Save as template?