TY  - JOUR
T1  - An Empirical Study of Financial Ratios Affecting Stock Returns in the
Indian Stock Market
AU - Suresh, N. AU - Amogha, S. 
JO  - Journal of Engineering and Applied Sciences
VL  - 14
IS  - 3
SP  - 975
EP  - 980
PY  - 2019
DA  - 2001/08/19
SN  - 1816-949x
DO  - jeasci.2019.975.980
UR  - https://makhillpublications.co/view-article.php?doi=jeasci.2019.975.980
KW  - Stock returns
KW  -dividend per share
KW  -price to book value
KW  -return on asset
KW  -panel VAR Model
KW  -specify
AB  - Stock market returns are the profit/loss the investors generate out of their investment in the stock
market. These returns are dependent on various micro-economic and macro-economic factors. The present
study analyses the micro-economic factors (financial ratios) that affects stock return which will provide a
parameter for investors to decide about their investment. For the purpose of empirical study 12 firms of Fast
Moving Consumer Goods (FMCG) sector and 6 firms of pharmaceutical sector which are trading on the NSE
(National Stock Exchange) is selected and is studied for the period 2010-2017. The effect of financial ratios
namely, DPS (Dividend Per Share), EPS (Earning Per Share), CR (Current Ratio), QR (Quick Ratio), ROE (Return
on Equity), ROA (Return on Asset), DER (Debt to Equity Ratio), PBV (Price to Book Value), DPR (Dividend
Pay-out Ratio), DYR (Dividend Yield Ratio) on stock returns is analysed using panel data analysis. This study
uses Panel Vector Auto Regression Model (PVAR). In order to specify the appropriate estimation method of
our PVAR Models, we employed Hausman test. Accordingly, our PVAR Models are estimated with fixed effects.
The study found out that the price-book value, dividend per share has a significant impact on stock returns.
The results of Wald test showed that there is a short run relationship between PBV, EPS, DPS, ROA and SR.
ER  -