Recommend    |    Subscriber Services    |    Feedback    |     Subscribe Online
 
 
 
 
IUP Publications Online
Home About IUP Magazines Journals Books Archives
     
 
The IUP Journal of Financial Risk Management
The Relationship Between Return and Capital Structure of Bank Stocks: A Study in Indian Capital Market
:
:
:
:
:
:
:
:
:
 
 
 
 
 
 
 
 

The objective of the present study is to find out the relation between bank stock returns and dividend per share, debt equity ratio and fixed assets turnover ratio of the select seven bank stocks included in the Nifty index for a period of 10 years from 2008 to 2017. Statistical techniques like correlation, multiple correlation and regression have been used for analyzing the data. The results show that only in the case of HDFC bank, there is positive correlation between stock return and dividend payout ratio, debt equity ratio and fixed assets turnover ratio.

 
 
 

A capital market is a financial market in which long-term debt or equity-backed securities are bought and sold. Capital markets are defined as markets in which money is provided for periods longer than a year. Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments. Capital can be divided into stock markets (for equity securities also known as shares, where investors acquire ownership of companies) and bond market (where investors become creditors). Most of the trading in the Indian stock market takes place on its two stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The BSE has about 4,700 listed companies, whereas the NSE has about 1,200 listed companies. 39 banking stocks are listed in both the stock exchanges (BSE and NSE).

 
 
 

Financial Risk Management Journal, Bombay Stock Exchange (BSE), National Stock Exchange (NSE), Stock Returns and Dividend Per Share.