Profitability Study of Indian Pharmaceutical Industry: A Co Integration Approach

نویسندگان

چکیده

Profitability (ROA) study of the Indian pharmaceutical industry has been studied under dynamic conditions to avoid endogeneity issues. Vector Error Correction Mode (VECM) results suggest short-run and long-run dependency profitability on working capital intensity, research & development physical intensity. Physical intensity exhibited a negative impact ROA. Auto Regressive Distributed Lag (ARDL) longrun positive leverage profitability. Granger causality with two lags from fixed assets invested net profits along strong correction suggests longer payback period. This sector will require continuously high investments in operating capital, development. Financing through debt can be undertaken but prudence.

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ژورنال

عنوان ژورنال: Journal of Scientific & Industrial Research

سال: 2023

ISSN: ['0022-4456']

DOI: https://doi.org/10.56042/jsir.v82i9.2180