Impact of Economic and Financial Performance Indicators ratios on Determination of Stock Returns – A Study with reference to National Stock Exchange

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Mr. Manjunath Awalakki, Dr. Archanna H.N

Abstract

The study investigates the relationship between the Economic and Financial indicators with stock
returns of some select companies listed on the National Stock Exchange. The data has collected
from CMIE prowess database for a period of eight years from 2010 to 2017. A total of 28 firms
were selected for the study after using the inclusion and exclusion criteria. The study makes use
of the panel data regression method to analyze the relationship between eleven dependent
variables and independent variables. The results reveal that Return on Equity (ROE) and Price to
Book Value (PB) have a positive and significant impact on the determination of stock returns for
selected samples. The consequences of this investigation propose that managers' accomplishment
in stock valuation basically relies upon the right comprehension of compelling resources.
Furthermore, it is suggested that managers enhance the worth of their organization's stock by the
prober use and blend of elements successful in stock valuation as indicated by the data of the
organization. The findings of paper are significant as far as framing investment strategies
techniques and to predict market efficiencies

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