Competitive Advantage and Risk: Impact on Indian Stock Market

  • Babitha Rohit Associate Professor, Department of Business Administration, St Joseph Engineering College, Mangaluru, Karnataka, India
  • Prakash Pinto Professor and Dean, Department of Business Administration, St Joseph Engineering College, Mangaluru, Karnataka, India
  • R Sushmitha Associate - Finance & Accounts, ETC Management Services Pvt Ltd, Bengaluru, Karnataka, India
  • M.M Munshi Associate Professor, Department of Management Studies, Visvesvaraya Technological University, Belagavi, Karnataka, India
Keywords: Competitive advantage, Asset turnover ratio, Book-Market ratio, Risk, Market performance, Profit margin

Abstract

The current study examines the performance of top 40 companies based on market capitalization for the period of 5 years (2015-2019). Competitive advantage is measured using asset turnover ratio and profit margin and risk is measured using financial leverage. Book to market ratio is used as a measure of market performance of the firms. The results indicate that profit margin has the most significant impact on the market performance in the Indian stock market.

Published
2021-07-01
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