Panel data Fixed Effect Model for Profitability Determinants: Referencing to S&P BSE Sensex
K. Siva Nageswararao1, Venkataramanaiah. M2, Challa Madhavi Latha3
1Dr. K. Siva Nageswararao, Assistant Professor, School of Management Studies, VFSTR (Deemed to be university), Guntur (Andhra Pradesh), India.
2Dr. Venkataramanaiah. M, Assistant Professor, of Commerce, Govt. Degree & PG College, (Andhra Pradesh), India.
3Challa Madhavi Latha, Assistant Professor, Department of Information Technology, Faculty of Informatics, University of Gondar, Gondar, Ethiopia.
Manuscript received on 01 May 2019 | Revised Manuscript received on 15 May 2019 | Manuscript published on 30 May 2019 | PP: 1696-1700 | Volume-8 Issue-7, May 2019 | Retrieval Number: G6377058719/19©BEIESP
Open Access | Ethics and Policies | Cite | Mendeley | Indexing and Abstracting
© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The present paper investigates the effect of profitability for the securities listed on S&P BSE Sensex index. The considered parameters for this analysis are size of the firm, return on assets, inventory turnover ratio, asset turnover ratio, liquidity and retained earnings. The time serioes data of 30 companies registred on the S&P BSE Sensex has been used for the period of 10 years starting from March 2007 to March 2017. The Hausman test and Wald test has been used to find the most suitable type of panel data model. Moreover, the fixed effect panel data model is also used for the purpose. Discriptive statistics like Karl Pearson’s coefficient of correlation, Regression Analysis have been applied as statistical tools. The results have confirmed that the profitability has positive effect on liquidity and return on assets. The size, inventory turnover ratio, debt equity ratio, asset turnover ratio, retained earnings ratio and return on assets are found to be negative effect with dependent vaitable, i.e profitability
Keyword: Fixed Effects, Profitability, S&P BSE Sensex, Bombay Stock Exchange, Ratio Analysis. JEL Classification Codes: C22, C23, C32, C33, G12.
Scope of the Article: Artificial Intelligent Methods, Models, Techniques.