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