Open AccessThe Role of Internal Control and Firm-Specific Characteristics on Firm Value: Evidence from Indian Financial Services Sector
Author(s) -
Anju Kalluvelil Janardhanan,
Uma Vakadae Ramkumar
Publication year - 2020
Publication title -
indian journal of finance and banking
Language(s) - English
Resource type - Journals
eISSN - 2574-609X
pISSN - 2574-6081
DOI - 10.46281/ijfb.v4i1.612
Subject(s) - return on assets , enterprise value , business , return on equity , volatility (finance) , capital call , leverage (statistics) , stock (firearms) , market liquidity , monetary economics , finance , weighted average return on assets , financial economics , economics , stock exchange , microeconomics , profit (economics) , mechanical engineering , individual capital , machine learning , financial capital , computer science , engineering
This research determines the role of firm-specific characteristics such as firm size, firm age, liquidity, firm complexity, board independence, institutional ownership, non-performing assets, annual volatility of stock returns, leverage and internal control represented by Enterprise Risk Management (ERM) and Big4 auditor on the firm value measured using Tobin’s Q, Return On Equity (ROE) and Return On Assets (ROA). This proposition is addressed with the sound statistical investigation of 67 companies listed in the NSE financial services sector by utilizing annual panel data for 11 years from 2007-17. The important findings of the study are that the purchasers consider firm size, firm age, liquidity, the volatility of stock returns, and non-performing assets. ROA shows that the management has to focus on firm size, firm age, and volatility of stock returns. ROE informs that the investors will look into firm size, firm age, institutional ownership, non-performing assets, leverage, firm complexity, and volatility of stock returns.