Acceso al sitio web del Consejo de Políticas de Infraestructura

   
Redirigiendo al acceso original de articulo en 17 segundos...
ARTÍCULO
TITULO

Empirical Analysis of Operating Efficiency and Firm Value: A Study of Fast Moving Consumer Goods and Pharmaceutical Sector in India

Pritpal Singh Bhullar    

Resumen

The present paper investigates the impact of operating efficiency on firm valuation for two economic sectors FMCG and Pharmaceutical Sectors in India. The study considers 30 Indian firms from the period of 2005 to 2015. To examine the effect, six financial ratios are considered as proxy for operating efficiency and enterprise value as proxy for Firm value. We employ Panel data analysis to explore the relationship of dependent and independent variable. The results report that Fixed Asset Turnover Ratio (FATO) and Net Profit Margin (NPM) indicates negative relation with Enterprise Value (EV) in Pharmaceutical sector and EV/Sales and Fixed Asset Turnover Ratio (FATO) confirms negative relation with EV for FMCG Sector. The empirical results will act as guidelines for the valuation analysts for implication of new valuation variables by replacing conventional variables. Moreover, the study implies that value creation is more significant to current performance as compared to past performance.Keywords: Operating efficiency, Panel Data, Enterprise value, FMCG and Pharmaceutical SectorJEL Classification: G32, M41

PÁGINAS
pp. 671 - 675
MATERIAS
ECONOMÍA

 Artículos similares

       
 
Cláudia Pereira, Beatriz Castro, Luís Gomes and Helena Canha    
We investigate whether accounting information system quality has an impact on the level and efficiency of firms? investments. While firms? growth depends on investment and financing decisions, accounting information is fundamental for the decision-making... ver más

 
Rasha Istaiteyeh, Maysa?a Munir Milhem, Farah Najem and Ahmed Elsayed    
This paper presents a comprehensive analysis of key financial indicators influencing the operational efficiency of banks in Jordan over the period 2006 to 2021. The study, focusing on fifteen commercial banks, employs seven regression models to assess th... ver más

 
Umar Farooq, Mosab I. Tabash, Basem Hamouri, Linda Nalini Daniel and Samir K. Safi    
The current study aims to explore the role of various macroeconomic factors in determining corporate investment. Using firm-level data of six Gulf Cooperation Council (GCC) region countries for a 14 year period (2007?2020), the current study establishes ... ver más

 
Khaoula Benayad and Mohammed Rachid Aasri    
This article examines the impact of overconfidence, optimism, risk aversion, mimicry and intuition biases on the investment decisions of Moroccan SMEs managers. The study was based on a sample of 133 SMEs managers, who were randomly selected to ensure th... ver más

 
Girish Garg, Mohd Shamshad, Nikita Gauhar, Mosab I. Tabash, Basem Hamouri and Linda Nalini Daniel    
Financial technology, or Fintech, has captured the attention of scholars, students, and institutions across worldwide for over a decade. With a plethora of new financial services, products, and innovative methods to engage with clients, the impact of tec... ver más