Open AccessCompetitive Advantage and Risk: Impact on Indian Stock Market
Author(s) -
Babitha Rohit,
Prakash Pinto,
R Sushmitha,
M M Munshi
Publication year - 2021
Publication title -
shanlax international journal of arts, science and humanities (online)
Language(s) - English
Resource type - Journals
ISSN - 2582-0397
DOI - 10.34293/sijash.v9i1.3905
Subject(s) - profit margin , business , market capitalization , stock market , security market line , leverage (statistics) , capitalization , financial economics , monetary economics , economics , finance , paleontology , horse , machine learning , computer science , biology , linguistics , philosophy
The current study examines the performance of top 40 companies based on market capitalization for the period of 5 years (2015-2019). Competitive advantage is measured using asset turnover ratio and profit margin and risk is measured using financial leverage. Book to market ratio is used as a measure of market performance of the firms. The results indicate that profit margin has the most significant impact on the market performance in the Indian stock market.