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Determinants of Performance of Pharmaceuticals Companies of India: An Empirical Evidence

Vol 7 , Issue 2 , July - December 2020 | Pages: 55-88 | Research Paper  

 
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https://doi.org/10.17492/jpi.mudra.v7i2.722029


Author Details ( * ) denotes Corresponding author

1. * Ranjeet Kumar Mishra, Assistant Professor, Commerce, Amity University, Patna, Bihar, India (educatorrkmishra@gmail.com)

In this study impact of various factors on profitability and market value of pharmaceutical companies of India has been investigated empirically. These factors are related to working capital management, capital structure, corporate governance and other characteristics of firms. Eight years panel data of 14 pharmaceutical companies have been used in this study. Result shows that frequency of board meeting has positive and board gender diversity, payable payment period, inventory holding period, amount of debt, current ratio and research and development expenses have negative impact on profitability. On the other hand, audit committee size and research and development expenses have positive impact and payable payment period, proportion of independent directors on board and amount of debt have negative impact on value of firms. 

Keywords

Firm performance; Working capital management; Capital structure; Corporate governance; Tobin q.

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