Investment Return Trends of CPSEs in India: Empirical Evidence on Aggregation

Abstract

Background: Investment return is used to determine the efficiency of an investment. The efficacy of diverse investments can be evaluated at a specific time. Thus, investment return is an endeavour to directly calculate the return of a specific investment in relation to its price. Objective: The study primarily aims to examine the investment return trends of the Indian CPSEs by investigating whether there is any deviation between actual values and estimated values of total returns on investment during 2010-11 to 2019-20. Methodology: The deviations between actual values and estimated values of aggregate returns on investment have been tested by Chi-square test. In this respect, the estimated values of aggregate returns on investment are captured by applying the technique of linear regression equation. Results: The findings of the study reveal mix trends in investment returns i.e., positive, negative and zero deviations. However, both positive and negative deviations are marginal during the study period. Conclusion: At aggregate level, no considerable deviations are observed among actual and estimated investment returns in terms of investment ratios selected in the study.