Stock Market Valuation and Output Growth: Panel Data Evidence from the Indian Public Limited Manufacturing Firms

The paper examines the relationship between stock market valuation and output growth at firm level. Specifically, it aims understanding impact of firms’ liquidity on real output. sample for study includes panel data Indian public limited manufacturing firms. covers period from March 2005 to 2020. Firms with least two consecutive years have been included in sample. full firm-year observations 877 findings show that both turnover ratio a significant positive output, even after controlling other important determinants Further, variables bank credit significantly influence This suggests banks provide complementary financial services required development will not undermine role institution based system.
 Keywords: Stock market, Valuation, growth
 JEL Classification: G1