MARKET CAPITALIZATION AND FACTORS AFFECTING IT: AN EMPIRICAL STUDY

Abstract

This paper is an analysis of the financial operations and performance of the 100 companies BS 1000 company and also the industry wise performance of companies listed in BS 1000 for the year 2015-16. (Companies with year ending till month of September 2016 have been considered). This analysis is from the financial statements for the month of March 2017. In the analysis, multiple regression and correlation were used to gain a critical review of the specific areas of assessment of the company’s performance. This is an inter-organizational study and application of statistical techniques for financial analysis. The various statistical techniques applied here are from simple averages, standard deviation to correlation and multiple regression analysis. The data analysis testing gave a result that the variables total assets and net profit are related to capital employed. The parity in revenue among the Industries are more. A similar pattern is observed in the total assets and the employee cost among industries in India. One more interesting observation in the study was that among top 100 companies mentioned in the BS 1000 the total revenue is high among the top 10-12 companies and a wide range between the top 10 and the rest exist.