IDEAS home Printed from https://ideas.repec.org/a/bjz/ajisjr/2346.html

Quality of Management and Its Influence on Market Valuation: A Study of the Indian Pharmaceutical Industry

Author

Listed:
  • Shireen Rosario
  • Chandra Sen Mazumdar

Abstract

This paper aims to highlight the relevance of the quality of management in the well-being of a firm and its influence on market valuation. The study which is based on the Indian Pharmaceutical Industry, measures and employs the quality of Management and directorship, together with the Return on Capital Employed (ROCE), to assess the influence on market valuation and the efficiency of assets employed. The study employs forty companies that are listed on the Bombay Stock Exchange, for a period of 12 years from the fiscal year 2008-09 to 2019-20. Through Path Analysis, it is established that ROCE, Quality of management, and Directorship in that order influence the market valuation which is represented by the Q ratio. ROCE & Dividends impact the efficiency of assets under use, which is represented by the Asset Turnover Ratio (ATO).

Suggested Citation

  • Shireen Rosario & Chandra Sen Mazumdar, 2023. "Quality of Management and Its Influence on Market Valuation: A Study of the Indian Pharmaceutical Industry," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 12, January.
    • Handle: RePEc:bjz:ajisjr:2346
    DOI: https://doi.org/10.36941/ajis-2023-0013
    as

    Download full text from publisher

    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/13179
    Download Restriction: no
    File URL: https://www.richtmann.org/journal/index.php/ajis/article/view/13179/12770
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.36941/ajis-2023-0013?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Vasia Panousi & Dimitris Papanikolaou, 2012. "Investment, Idiosyncratic Risk, and Ownership," Journal of Finance, American Finance Association, vol. 67(3), pages 1113-1148, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vasia Panousi, 2008. "Capital Taxation with Entrepreneurial Risk," 2008 Meeting Papers 36, Society for Economic Dynamics.
    2. Esposito, Federico, 2022. "Demand risk and diversification through international trade," Journal of International Economics, Elsevier, vol. 135(C).
    3. Murat Celik & Xu Tian, 2018. "Corporate Governance, Managerial Compensation, and Disruptive Innovations," 2018 Meeting Papers 590, Society for Economic Dynamics.
    4. Chen, Zhiyuan & Wang, Zhihao & Zhu, Ting & Gu, Kejian & Tang, Ying, 2025. "Trade policy uncertainty and market diversification by risk-averse firms," China Economic Review, Elsevier, vol. 91(C).
    5. Huang, Jin & Jin, Yong & Duan, Yang & She, Yanling, 2023. "Do Chinese firms speculate during high economic policy uncertainty? Evidence from wealth management products," International Review of Financial Analysis, Elsevier, vol. 87(C).
    6. Wulung Li & Ramachandran Natarajan & Yan Zhao & Kenneth Zheng, 2021. "The effect of management control mechanisms through risk-taking incentives on asymmetric cost behavior," Review of Quantitative Finance and Accounting, Springer, vol. 56(1), pages 219-243, January.
    7. Bing Wang & Kung‐Cheng Ho & Xinyu Liu & Yan Gu, 2022. "Industry cash flow volatility and stock price crash risk," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(2), pages 356-371, March.
    8. Meg Adachi-Sato & Chaiporn Vithessonthi, 2016. "Bank Systemic Risk and Corporate Investment," PIER Discussion Papers 17., Puey Ungphakorn Institute for Economic Research, revised Jan 2016.
    9. Nicholas Bloom & Max Floetotto & Nir Jaimovich & Itay Saporta†Eksten & Stephen J. Terry, 2018. "Really Uncertain Business Cycles," Econometrica, Econometric Society, vol. 86(3), pages 1031-1065, May.
    10. Stephen Bahadar & Muhammad Nadeem & Rashid Zaman, 2023. "Toxic chemical releases and idiosyncratic return volatility: A prospect theory perspective," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(2), pages 2109-2143, June.
    11. Ahmed Ali & Granberg Mark & Troster Victor & Uddin Gazi Salah, 2022. "Asymmetric dynamics between uncertainty and unemployment flows in the United States," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 26(1), pages 155-172, February.
    12. Jiang, Jiaxi & Li, Yichen & Luo, Pengfei, 2026. "Debt overhang and short-termism under incomplete markets," International Review of Financial Analysis, Elsevier, vol. 109(C).
    13. Chen, I-Ju & Wang, David K., 2019. "Real option, idiosyncratic risk, and corporate investment: Evidence from Taiwan family firms," Pacific-Basin Finance Journal, Elsevier, vol. 57(C).
    14. Scott R. Baker & Nicholas Bloom & Steven J. Davis, 2016. "Measuring Economic Policy Uncertainty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(4), pages 1593-1636.
    15. Hassen Raîs, 2016. "Idiosyncratic Risk and the Cross-Section of European Insurance Equity Returns," Post-Print hal-01764088, HAL.
    16. Bachmann, Rüdiger & Born, Benjamin & Elstner, Steffen & Grimme, Christian, 2019. "Time-varying business volatility and the price setting of firms," Journal of Monetary Economics, Elsevier, vol. 101(C), pages 82-99.
    17. Shan Gao & Zheng Li, 2025. "Trade Policy Uncertainty, Financing Constraints, and Firm Innovation: Evidence from China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 8929-8960, June.
    18. Chaivisuttangkun, Sirithida & Jiraporn, Pornsit, 2021. "The effect of co-opted directors on firm risk during a stressful time: Evidence from the financial crisis," Finance Research Letters, Elsevier, vol. 39(C).
    19. Yang, Baochen & Xu, Jingru & Dai, Yuxuan & Zhang, Yongjie & Geng, Peixuan, 2025. "Commodity financialization and firm investment:Implications for market efficiency and economic stability in emerging markets," International Review of Economics & Finance, Elsevier, vol. 99(C).
    20. Xuejiao Ma & Xiaojun Ma & Wei Fei & Qichuan Jiang & Yiwei Zhang, 2026. "Stop Where it Should Stop: Board Faultlines, Stakeholder Supervision and Greenwashing Behaviors of Firms," Journal of Business Ethics, Springer, vol. 203(2), pages 313-340, January.

    More about this item

    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:bjz:ajisjr:2346. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Richtmann Publishing Ltd (email available below). General contact details of provider: https://www.richtmann.org/journal/index.php/ajis .

    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.