The book outlines the importance of Indian manufacturing sector and its growth under alternative policy regimes. The authors highlight the significance of various firm-specific and macroeconomic factors on the level of efficiency and profitability of the firms operating in the diverse manufacturing sector during the post-liberalization era. The book also examines the dynamic relationship between the select manufacturing sector-specific stock market indices and the various macroeconomic variables.
Author(s): Sumit Kumar Maji, Arindam Laha, Debasish Sur
Publisher: Palgrave Pivot
Year: 2022
Language: English
Pages: 185
City: Singapore
Preface
Contents
About the Authors
Abbreviations
List of Figures
List of Tables
1 Introduction
1.1 Need for Manufacturing Sector
1.2 Financial Performance Indicators of the Manufacturing Sector and Their Linkages with Economic Factors: A Conceptual Framework
1.3 Microeconomic (or Firm-Specific) Factors
1.3.1 Age of the Firms
1.3.2 Size of the Firms
1.3.3 Leverage
1.3.4 Liquidity
1.3.5 Intellectual Capital
1.3.6 Openness of the Firm
1.4 Industry-Specific Factors
1.5 Macroeconomic Factors
1.5.1 Economic Growth
1.5.2 Exchange Rate
1.5.3 Foreign Investment
1.5.4 Inflation
1.5.5 Money Supply and Rate of Interest
1.5.6 Oil Price
1.5.7 Stock Market Integration
1.5.8 Economic Policy
1.6 Selection of Sample Firms
1.7 Innovativeness of the Book
2 Manufacturing Policies in India: A Disaggregated Analysis
2.1 Introduction
2.2 Industrial Policy—An Overview
2.2.1 Period of Regulation (1947–1980)
2.2.2 Period of Deregulation (1980 onwards)
2.3 Manufacturing Sector-Specific Policy Initiatives
2.4 Changing Landscape of Industrial Development in India
2.4.1 Contribution of Industry in GDP
2.4.2 GDP Growth Rate of Manufacturing Sector
2.4.3 Gross Fixed Capital Formation (GFCF) in Manufacturing Sector
2.4.4 Trend of Capital–Output Ratio of Manufacturing Sector
2.5 A Sum Up
3 Factors Affecting Financial Performance of Firms: An Exploration of the Existing Research Works
3.1 Introduction
3.2 Research Studies in Foreign Countries
3.2.1 Financial Performance Analysis
3.2.1.1 Macroeconomic Factors
3.2.1.2 Microeconomic Factors
3.2.1.3 Other Factors
3.2.2 Efficiency Analysis
3.2.2.1 Macroeconomic Factors
3.2.2.2 Microeconomic Factors
3.2.2.3 Other Factors
3.2.3 Stock Market Analysis
3.2.3.1 Macroeconomic Factors
3.2.3.2 Microeconomic Factors
3.2.3.3 Other Factors
3.3 Evidence Gap Map (EGM): Evidence on the Existing Empirical Literature in India
3.4 Research Gap
3.5 Objectives of the Study
References
4 Measurement of Efficiency of the Select Indian Manufacturing Firms and Its Determinants: Implications of Firm-Specific and Macroeconomic Factors
4.1 Introduction
4.2 Measurement of Efficiency and Its Determinants
4.3 Results and Discussion
4.3.1 Estimation of Stochastic Production Function:
4.4 Measurement of Efficiency
4.5 Descriptive Statistics of the Firm-Specific Factors
4.6 Determinants of Efficiency
4.6.1 Leverage
4.6.2 Openness
4.6.3 Size
4.6.4 Growth
4.6.5 Age
4.6.6 Exchange Rate
4.6.7 Inflation
4.7 A Sum Up
References
5 Implications of Various Macroeconomic and Firm-Specific Factors on the Financial Performance of the Select Indian Manufacturing Firms
5.1 Introduction
5.2 Sector-Wise Measurement of Profitability
5.3 Determinants of Profitability: Implications of Firm-Specific and Macroeconomic Factors
5.3.1 Leverage
5.3.2 Liquidity
5.3.3 Intellectual Capital
5.3.4 Size of the Firm
5.3.5 Age of the Firm
5.3.6 Growth of the Firm
5.3.7 Openness of a Firm
5.3.8 Index of Industrial Production
5.3.9 Exchange Rate
5.3.10 Inflation
5.4 A Sum Up
References
6 Interrelationship Between Macroeconomic Fundamentals and Sector-Specific Stock Indices of the Indian Manufacturing Sector
6.1 Introduction
6.2 Trend of Sectoral Manufacturing Stock Indices
6.3 Relationships Between Sectoral Stock Indices and Macroeconomic Factors
6.3.1 Step 1—Selection of Macroeconomic Factors and Sector-Specific Stock Indices
6.3.2 Step 2—Testing Stationarity
6.3.3 Step 3—Choosing an Appropriate Model
6.3.4 Step 4—Measurement of Long-Run Elasticity
6.3.5 Economic Policy Uncertainty
6.3.5.1 Foreign Investment
6.3.5.2 Interest Rate
6.3.5.3 Exchange Rate
6.3.5.4 Price Factor
6.3.5.5 Oil Price
6.3.6 Step 5—Measurement of Short-Run Elasticity
6.4 Structural Break
6.4.1 First Stage
6.4.2 Second Stage
6.5 A Sum Up
References
7 Summary and Policy Implications
7.1 Overview of the Book
7.2 Summary of the Findings and Concluding Observations
7.2.1 Basic Metal
7.2.2 Industrials
7.2.3 Fast Moving Consumer Goods
7.2.4 Health Care
7.2.5 Consumer Discretionary Goods and Services
7.3 Policy Implications of the Study
7.4 Future Research Agenda
Bibliography
Index
