A Study on Market Based Performance of Selected Small Market Cap Agrochemical Companies of India
DOI:
https://doi.org/10.31305/rrijm.2023.v08.n05.006Keywords:
Market Performance, Measure, Market Value, Agrochemical, Market CapitalizationAbstract
The firm's performance is influenced by the business environment, which can be measured using accounting-based or market-based measurement. That’s why here researchers have tried to study the market performance of selected small-cap agrochemical companies, and their objective is to compare and contrast market-based performance measurement of selected small-cap agrochemical companies in India. The total population of studies includes all agrochemical companies that are registered under the BSE, NSE, or both in India. Presently, there are a total of 17 agrochemical companies registered under the BSE, NSE, or both as per the capital market in India, out of which only 5 are small-cap agrochemical companies. Considered for the studies and selection criteria are companies total market capitalizations as per Capitaline Market Magazine on March 8, 2020. The nature of the study is descriptive, and the sampling method is purposive. The collected data for the period is 10 years, starting from 2011–12 to 2020–21, and is based on secondary sources that were collected from published annual reports of selected small-cap agrochemical companies. The level of significance for the hypothesis testing is set at 5%. For the purpose of data analysis, the researcher has applied a one-way ANOVA test for hypothesis testing and also applied descriptive statistics analysis tools like standard deviation, standard error, and mean by using SPSS. For measuring market performance, the researchers have used market-based ratio techniques, which include different ratios. During this research study, researchers found that the market-to book value ratio and dividend yield ratio are significantly different. Among selected small-cap agrochemical companies, looking at the other side of the Tobin Q ratio, price-earnings ratio, and annual stock return ratio found that there is no significant difference among selected small-cap agrochemical companies in India, according to my research study.
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