Determinants of Share Return of Manufacturing Sector in India: A Panel Data Technique

Abstract

Purpose: The present study examines the factors of share returns by analysing seventy manufacturing sector companies covered in NSE 100 Index of Nifty. Methodology: In order to determine the share return of manufacturing sector companies, ten fundamental factors have been taken into consideration viz.,earning per share (EPS), trading volume, age of the firm,dividend yield percentage (DY%),size (total assets), investment opportunitymeasured as price to book value  ratio (P/B), firm risk measured through price earnings ratio, growth (percentage change  in sales), dividend per share (DPS) and earning volatility (EV) respectively for consecutive ten years (2008-2017). The multiple impacts of each determinant have been regressed by employing three models of Panel Data Analysis. Findings: The study reveals that factors such as Profitability (EPS), Firm risk (P/E ratio), Dividend (DPS), Investment Opportunities (P/B ratio) and Size (Total Assets) have significant effect on share return whereas Dividend Yield percentage (DY%) has negative nexus with share return. Originality: This study had a plagiarism of nine percent. All the other content of this study is composed by the author and all references have been duly provided.