Corporate Ownership and Stock Returns: An Explanation to the Capital Asset Pricing Model
Stock markets and their functioning are affected by many factors, both financial as well as behavioral. This paper studies the behavioral aspect of firms and its impact on corporate stock returns. The Capital Asset Pricing Model (CAPM) establishes a relationship between a stock return and the beta of the stock and the risk premium. This paper takes all these into account, except the nature of ownership. It is found that the higher a firm is diversified, the higher is the stock return, other things remaining constant. However, as the study focuses only on the S&P CNX Nifty stock, evidences from other portfolio need to be found so that the findings are fully corroborated.
Year of publication: |
2009
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Authors: | Das, Santanu |
Published in: |
The IUP Journal of Financial Economics. - IUP Publications. - Vol. VII.2009, 3 & 4, p. 64-70
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Publisher: |
IUP Publications |
Saved in:
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