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Profitability Study of Indian Pharmaceutical Industry: A Co Integration Approach

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Title Profitability Study of Indian Pharmaceutical Industry: A Co Integration Approach
 
Creator Mahor, Nirbhay
Banerji, Amit
 
Subject Export intensity
Physical capital intensity
Leverage
Research and development intensity
Working capital management
 
Description 973-982
Profitability (ROA) study of the Indian pharmaceutical industry has been studied under dynamic conditions to avoid
endogeneity issues. Vector Error Correction Mode (VECM) results suggest short-run and long-run dependency of
profitability on working capital intensity, research & development intensity, and physical capital intensity. Physical capital
intensity exhibited a negative impact on ROA. Auto Regressive Distributed Lag (ARDL) results suggest short-run and longrun
positive dependency on research & development intensity, working capital intensity, and leverage on profitability.
Granger causality with two lags from fixed assets invested on net profits along with a strong positive correction suggests a
longer payback period. This sector will require continuously high investments in physical capital intensity, operating capital,
and research & development. Financing through debt can be undertaken with profitability but with prudence.
 
Date 2023-09-02T11:17:24Z
2023-09-02T11:17:24Z
2023-09
 
Type Article
 
Identifier 0022-4456 (Print); 0975-1084 (Online)
http://nopr.niscpr.res.in/handle/123456789/62486
https://doi.org/10.56042/jsir.v82i9.2180
 
Language en
 
Publisher NIScPR-CSIR, India
 
Source JSIR Vol.82(09) [September 2023]