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ABSTRACT

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Sayan Majumder
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12 views1 page

ABSTRACT

Uploaded by

Sayan Majumder
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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ABSTRACT

In this paper, the predictability of prominent profit variants, viz., EBITDA(Earnings Before
Interest, Taxes, Depreciation, and Amortization), EAT(Earnings after Taxes), CFOs(Cash
from Operations), FCFs(Free Cash Flows), D/P(Dividend-Pay-out Ratio) on one of the
prominent shareholders’ values metric MVA(Market Value Added) of Nifty Companies is
analyzed. The degree of association and predictability of major shareholder groups, viz.,
Promoters, FIIs (Foreign Institutional Investors), DIIs (Domestic Institutional Investors), and
Others on MVA is also studied. The period of study is FY 2009-10 to FY 2018-19.

Multiple Regression is used taking MVA as the dependent variable and profit variants named
above as independent variables, similarly, MVA is taken as the dependent variable in the
second regression equation and the proportion of ownership of major shareholders groups as
the independent variables. Results indicate that EAT, CFOs, FCFs, and D/P ratios have a
high degree of predictability on MVA. Major shareholder groups mentioned above do not
have any predictability on MVA.

Keywords: MVA, EAT, CFO, FCF, Promoters

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