Growth Measures and Stock Returns

Authors

  •   Lalit Arora Research Scholar, L.M. Thapar School of Management, Thapar Institute of Engineering and Technology University, Patiala, Punjab
  •   Shailendra Kumar Assistant Professor, Indian Institute of Information Technology, Allahabad, Uttar Pradesh
  •   Piyush Verma Associate Professor, L.M. Thapar School of Management, Thapar Institute of Engineering and Technology University, Patiala, Punjab

DOI:

https://doi.org/10.17010/ijf/2016/v10i11/104916

Keywords:

Growth

, Asset Pricing, Panel Data, Manufacturing, India

C23

, G12, G14

Paper Submission Date

, May 25, 2016, Paper sent back for Revision, August 2, Paper Acceptance Date, September 8, 2016.

Abstract

This study examined the aptness of important growth measures in the form of sustainable growth, asset growth, and sales growth in explaining stock returns of firms in the Indian manufacturing sector. Using panel data regression analysis, results provided evidence that sustainable growth rate; a forward looking approach for assessing firm's performance, emerges as a significant variable in explaining the stock returns. Results remain unchanged even after introducing the established determinants of stock returns such as BE/ME and firm size in the regression equations. Asset growth emerged as an important channel through which sustainable growth can be linked with stock returns.

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Published

2016-11-01

How to Cite

Arora, L., Kumar, S., & Verma, P. (2016). Growth Measures and Stock Returns. Indian Journal of Finance, 10(11), 43–53. https://doi.org/10.17010/ijf/2016/v10i11/104916

Issue

Volume 10, Issue 11, November 2016

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

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