Industry-wise Dispersion of Investment Returns in Indian CPSEs: Experiential Confirmation on Aggregation
Keywords:Investment Returns, CPSEs, Dispersion, ROA, ROCE, ROE
Purpose: The CPSEs play a vital role in the economic structure of the country by supplying necessary products and services. To sustain in the long run, it is essential to earn a reasonable amount of profit on a consistent basis. Thus, the higher the dispersion in investment returns, the higher is the risk and vice-versa. In this perspective, an industry-wise dispersion of investment returns in Indian CPSEs are carried out from 2010-11 to 2019-20.
Design/Methodology/Approach: To fulfill the research objectives of the study, secondary data is used. Dispersion is calculated for the investment ratios by coefficient of variation. Furthermore, paired ‘t’ test is applied to locate any significant transform in the average dispersion of investment returns of all the selected industries taken together. One-way ANOVA is also applied to measure variation in investment returns among the selected industries.
Findings/Result: The study results reveal that the rate of fluctuation in investment returns has varied extensively among the industries. Moreover, most of the selected industries in the 1st sub-period have shown better consistency in investment returns as compared to the 2nd sub-period. Further, significant differences are observed in investment returns among the selected industries, which implies that investment returns in each selected industry has a significant bearing on the aggregate investment returns of the CPSEs.
Originality/Value: To recognize the rate of dispersal in investment returns generated by the CPSEs.
Paper Type: Empirical Research.