DETERMINANTS OF VALUE OF FIRM FOR INFRASTRUCTURE INDUSTRY: AN EMPIRICAL EXAMINATION IN INDIA
T. MANJUNATHA *
Visvesvaraya Technological University BDT College of Engineering, Davangere, Karnataka, India.
*Author to whom correspondence should be addressed.
Abstract
The paper aims at ascertaining the determinants of market value of infrastructure industries in India. We use the financial data of three hundred and fifty-four Indian infrastructure companies. The results of the study show that independent variables viz. long-term debt to total asset, total debt to total assets ratio emerge as determinants of total market value of firm for construction, telecommunication, steel and cement industry. Further, none of the independent variables are able to determine of market value and market capitalisation of firm for construction, power, telecommunication, steel and cement industry during the study period. Implication of the study may be used by researchers to compare with other foreign infrastructure companies to understand the determinants of value of firm of the infrastructure industry.
Keywords: Value of firm, proprietary ratio, leverage ratio, current liabilities to total assets, infrastructure industry
How to Cite
Downloads
References
Yeh TM, Hoshino Y. The effects of mergers and acquisitions on Taiwanese corporations. Review of Pacific Basin Financial Markets and Policies. 2000;3(2):183–199.
Nissim D, Penman S. Ratio analysis and valuation: From research to practice”. Review of Accounting Studies. 2001;2(7);109-154.
Jianxin Chi. Understanding the Endogeneity between Firm Value and Shareholder Rights, Financial Management. 2005;34(4):65–76.
Joshua Abor. The effect of capital structure on profitability: an empirical analysis of listed firms in Ghana. The Journal of Risk Finance. 2005;6(5):438-445.
Salim Mahfuzah, Raj Yadav. Capital Structure and Firm Performance: Evidence from Malaysian Listed Companies. Procedia - Social and Behavioral Sciences. 2012;65:156- 166.
Gupta Naresh Kumar, Gupta Himani. Impact of the Capital Structure and Firm Value- Evidence from Indian Cement Companies. International Journal of Research in Management & Social Science. 2014; 2/2(I):1-107.
Chadha Saurabh, Anil K Sharma. Capital Structure and Firm Performance: Empirical Evidence from India, Vision. 2016;19(4):95–302.
Divya Aggarwal, Purna Chandra Padhan. Impact of Capital Structure on Firm Value: Evidence from Indian Hospitality Industry. Theoretical Economics Letters. 2017;9(7):982-1000.
Rajeshkumar V, Manjunatha T. Analysis of Determinants of Financial Performance for Construction Industry in India, AIMS International Journal of Management. 2021; 13(3):57-63.
Anindita Chakrabarti, Ahindra Chakrabarti. The capital structure puzzle–evidence from Indian energy industry, International Journal of Energy Industry Management. 2018;2(2):P40-52.
Manjunatha T, Praveen Gujjar J. Extended DuPont Ratio Analysis of Indian Information Technology Companies, Pacific Business Review International. 2018;11(5):5-14.
Manjunatha T, Vikas KM, Praveen Gujjar J. A Study on Financial performance Analysis of Infrastructure Companies in India, Pacific Business Review International. 2020;13(3):57-63.
Manjunatha, Vikas. An Empirical Study on Financial Pattern of Infrastructure Sectors in India, Asian Journal of Management. 2021; 12(2):221-227.
Kavitha SK, Mohanraj V. Determinants of Capital Structure With Special Reference To Selected Automobile Companies. International Journal of Scientific Research and Review. 2018;8(1);275-280.
Praveen Gujjar J, Manjunatha. Testing of Dupont Model for Software and Training Services Companies in India, Asian Journal of Management. 2021;12(2);169-180.
Ali Senturk H, Gokhan Yazici and Burcin Kaplanoglu S. Case Study: Izmit Domestic and Industrial Water Supply Build–Operate–Transfer Project, Journal of Construction Engineering and Management. 2004;130(3): 449-454.