IDEAS home Printed from https://ideas.repec.org/a/dse/indecr/v26y1991i1p81-97.html
   My bibliography  Save this article

Profitability and Growth in Indian Automobile Manufacturing Industry

Author

Listed:
  • R. N. Agarwal

    (Institute of Economic Growth)

Abstract

The objective of this paper is to examine if firms have been making super normal profits since 1975 when price controls were removed. It also evaluates the impact of policy changes since 1981-82 on profitability and growth of firms in the industry using Tobin's q as a measure of profitability. The study finds no evidence to show that firms have made supernormal profits. Profitability is found to be explained mainly by age of the firms, vertical integration, diversification and industry policy dummy variables. Important determinants of the growth of firms are found as diversification, industry policy dummy variable, gross retained profits and expansion of capacities. Results also reveal differences in performance between car and non-car sectors as well a within the sectors of the industry

Suggested Citation

  • R. N. Agarwal, 1991. "Profitability and Growth in Indian Automobile Manufacturing Industry," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 26(1), pages 81-97, January.
  • Handle: RePEc:dse:indecr:v:26:y:1991:i:1:p:81-97
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dharmaraj Arumugam & Ashok Kumar M & Preetha R, 2016. "Factors Determining Profitability in Indian Automobile Industry," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 7(2), pages 64-69, May.
    2. Katrak, Homi, 2002. "Does economic liberalisation endanger indigenous technological developments?: An analysis of the Indian experience," Research Policy, Elsevier, vol. 31(1), pages 19-30, January.

    More about this item

    JEL classification:

    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dse:indecr:v:26:y:1991:i:1:p:81-97. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Pami Dua (email available below). General contact details of provider: https://edirc.repec.org/data/deudein.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.