Profitability Study of Indian Pharmaceutical Industry: A Co Integration Approach
NOPR - NISCAIR Online Periodicals Repository
View Archive InfoField | Value | |
Title |
Profitability Study of Indian Pharmaceutical Industry: A Co Integration Approach
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Creator |
Mahor, Nirbhay
Banerji, Amit |
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Subject |
Export intensity
Physical capital intensity Leverage Research and development intensity Working capital management |
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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. |
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Date |
2023-09-02T11:17:24Z
2023-09-02T11:17:24Z 2023-09 |
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Type |
Article
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Identifier |
0022-4456 (Print); 0975-1084 (Online)
http://nopr.niscpr.res.in/handle/123456789/62486 https://doi.org/10.56042/jsir.v82i9.2180 |
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Language |
en
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Publisher |
NIScPR-CSIR, India
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Source |
JSIR Vol.82(09) [September 2023]
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