Está en la página 1de 67

Empirical Evaluation of Dividend Discounted Model in Equity

Valuation in India

J 
    
   
  





  

Rajat Gupta

01412303909

  J 

Prof. B. K. Chadha

 J 

Mr. Pronod Kumar Bharatiya

Delhi Institute of Advanced Studies

2009-2011

c
Rajat Gupta 9555487746
ABSTRACT

Ñ   
    


  
         


      
    
 Ñ  
   
  


 

Ñ     


    

  

 

  
 
   
  



        

 
  
  
     
  

  
 
       
   !   
 " 

 
  
      
           


 
   
"  #    

  
   

"  

    


  
 
   
 Ñ  


 



   
   
  
     
 " 
      




    
       
 
 
     Ñ 

 


      

            

  $  Ñ   


 
± deductive 

  


  

     
 


     
 
  # 





 
        

G
Rajat Gupta 9555487746
CHAPTER 1

INTRODUCTION TO EQUITY VALUATION AND

VALUATION MODELS

^
Rajat Gupta 9555487746
2.1 Meaning

 
 

       



  



      
  

 
  Ñ   
  "


  
 %   

   
   
  
 


   
 


&
 
   
  
 


    

 
 
    
     

       

    
      Ñ        

      

 
       &  

     
   
 

 
 

  
 
"    


 
      

 

    

 
              
 
    "  



 

Ñ                



  
     



   
 "    

   
  
  


Ñ   
  




 
        " '   
  
 ! 

 
 

      
 
    
 
   
 

  
  
       




2.2 Importance of Stock Valuation

 
   
  
   
 




   
 
  

   


(  
    
       

  
    


   
             
     

›
Rajat Gupta 9555487746
 
 
  
   
 
    
    
  )

  
&
 
 
 
 




   
             

     

 
    
          
    
 


    
 * + 
    


, 
   


 



      (      

 
     
        
 
       


      


          
  


  
  
  
           
 
 


          
    



 





2.3 Various Stock Valuation Techniques and their Relevance

Ñ  
 

 
    

-

Ë &  


Ë d
 $ %



Ë  



Ë d d
 


Ë &
  

d
 $ %



Ë   


2.3.1 Asset based Valuation

&    


  
 
         
 '  

   


  

   
      

„
Rajat Gupta 9555487746
   
            

        


           

                     

               

                           

          


   
     

     

                           

 
 
                       


               

G  G di Fl w l

½                          




       $  


           

                           

                  

  $  
                 

  

   

$   -

a
j  9555487746
Ñ  
 

 
   d%$
         
   

    

  
   
 
    "  
      


 
   

     
 

    
   



d$%
-

V  



V d 
 


V %  

 


2.3.3 Residual Income Models

&   

       
  

 

 
 


  .&  

  
 Ñ 



   
-

Ë Ñ .&    
 
 

Ë Ñ    
    
-  
      
  

  
  " 
  
" 

Ñ    
      
            

 
  
 
  
 

Ñ   -

 R - r) × B

/ -

01.&

1   



  
  
 "   
 20 

1 " 
  
" Ñ  
    
 )3

0

÷
Rajat Gupta 9555487746
Ñ    
     
    .4    

 
 
            .&   

 

Ñ    


  
 
 " 
      


    
  
 
Ñ    
 



       
  
 
   


  Ñ 


  
 
 
    
      

Ñ .& 

      

   Ñ 

     
    
  
 
 


 0   

    
  
   
 (& 

 

     
    
   (&   

 
    

2.3.4 Dividend Discounted Models

&   


 
     
         
 


        &    
    
   

  &     


      
    
   


  
  
   

  &   
 
 



   
d$%  
 
 

w         


  
     
 


   5    
  
          

 "


 

w Ñ   


 
  
     

    

    

 

à
Rajat Gupta 9555487746
w 0
  
 
 

    

 
 
 
    
  
 

w &      
      "
  
   
   
 






   
  
   


    
 

2.3.5 ree Cash lo Discounted Models

%   
 %$% 
  
  
       

           


      
   
 Ñ  

 
      
  

        
   
 


         
      Ñ    
  
 


  
             6
  
  
  

 
      
  " 


Ñ         


 
 
   

   



   
       
       



           
         


 
  Ñ    
   

    
    

      
       
 
Ñ  

  
      
 
 

 

      
     
       
   
 



   %  


%$%
  
   
 


&
    
   
   
    -

X X = operating cash flow - tax ± capital expenditure

Ñ    
  
 d$%%  
 
 

 
 
$
  
(
 
   -(%$%& 

m
Rajat Gupta 9555487746
"   
   
 
                   

d$%

   
 

2.3.6 Relative Valuation

   


     
    
) 
     


    &    


  
    )  

 
4(    ((0Ñd&   )
)

  
    


    


    
  
 
   
       



   Ñ  
     
" 
  

  
  
 Ñ  
        
      


   - 



      


 
 

       6 



 
     

    


 -

Ë $    
 
 
 
       
     



Ë $
    

     4(

Ë $
  
 7    

  
       



 

2.4 Detailed discussion on residual income model

$
    
   
   
    
  
 


 
   (
 %    
    
  
 
    

  /&$$ &


  .   
     
        

     

     
 "      
  

c
Rajat Gupta 9555487746
 

      $
    

  

  
     

     


 
 

Example

8 Equity Capital Approach

 
1.5(" $ 

 
1.5(" $  (9

 
1#(5( (" $ 

#(1  
(" 

#(1.(" $ 

 
1#(5( (" $ 

8 Invested Capital Approach

 
1(0Ñ:5Ñ5  $ $ 

 
1.#4&Ñ5  $ $ 

 
1.#4&Ñ5  $  /&$$9

.#4&Ñ1. #  4


 & Ñ 

#$1  
  $ 

#$1.#4&Ñ  $ 

 
1#$5/&$$   $ 

Ñ     


 
           
    


     

cc
Rajat Gupta 9555487746
2.4.1 The RIM Model and Descriptive Equation

 

       

 
   
 

d  d
  
 dd        :;<= Ñ 


   
    
      

 

 4 
  
         Ñ (" 


       


    

   

      Ñ 


dd   


  

 

     
  Ñ  dd       

            



    

  

    


 
   
  
     
 

 

 
 
   -

$ (" 
 -

      


"  B   
 


  


B     x    D 


  
 " 
 

 

cG
Rajat Gupta 9555487746
Ñ      
 " 

    
  
 
   

       at    


 

 
 "  B0    

  
               
 xt   "  


" ):0 ):
    7
  
R 

2.4.2 Advantages and Disadvantages of Residual Income Model

V & 

w Ñ           


 
        
 



 

w 8
     

w &

  
)  
 

w $         


     
 
     


" 

w %

 

 
 
  
    
   
    


 


V d 

w 8 
                 


  $
 

w &
     
 

 


 


  
 

w Ñ 
 "        

       

 

" .   ,       


 

 
  
  

  
 
 
   

c^
Rajat Gupta 9555487746
w Ñ 
 
                 

 

 
 +  

Ñ 
 
 
   

w &
 

 
 
 

w %$%  




 
 
!


w Ñ             

.
   

w Ñ      


 
  %
  ' 


       



+ " >
    
?

    

  
    

w /
 


 


w %
     


w 
 
  

w     
 


 #(
 

2.4.3 Limitations of RIM Model

  
 
     
   

 " 

 
 
 
     d     
         

   


    

   
     

   
 
 


 
  


     

 
  +


 



Rajat Gupta 9555487746

   
  d      

 
  
  

        

  +  

2.5 Managerial Usefulness of Study

Ñ    
 
      
        



    
       
         

$
 +       

           
 



  Ñ    
 
  
 
 
 
  
 


                  


     
'        
 
  


  
   
 
     

  
  
       % 


      
   
 
  
 
   


6       


  
   
      
 

     
 


   

       


      
 
 
   
 +

 0   



  
 
   


  
     
     
 

   
 


     
 
 


Rajat Gupta 9555487746
CHAPTER 2

LITERATURE REVIEW

 

ca
Rajat Gupta 9555487746
&      
 

   
 
 
    
  


     
        
   
 
 

 

Ñ 
  "




      

    

 
       



  

  

 
   

 Ñ  


 
  

  

6         o   J         


 ! 
   


 
     
 

    


    
 Ñ  
   
  
 

 

   


 
Ñ 




      

    

  

 



 

   Ñ   
  


  
   

              


      6


  

4@AA   BB
   :;CB5BAAD


       

       
   
    

 
  BAAE)BAA@Ñ   
  

   

  
  :C:B9  
)) 
    B;EB9   
)) 


 

&
 4    /   BA:A        o   


"          


            

  
 


 

 
  


     "   


  
 
 
  
    

  

 
    
  

 



 
 

 
     
 
  
 


     
Ñ 
 
             


Rajat Gupta 9555487746
  
          
    

 
 

 ) 
   


  

 Ñ  


B@A
 +      
0(

  
    

 
              
     
 

   
  
 

6     6
  BAA;        *  "  # 

 $     %    


+  
  
 


             


  
 
   Ñ 

       


 :;C=)BAAE   
 0(    
   

  )   


  
  )  
  
   



      
   
 
       

Ñ           


   
     


      Ñ
 
  
      
    

    

    
            


 
   Ñ  
  
 
       


       

             

   


 Ñ  
      "  

 
        

 
 
   

 


 "

F  G   Ñ H  & BAA;        o   


" $  &      "' '    
  


        

     
     


   " 
   


    

 

   
 
 )
)

0 
Ñ 

  +

0 

   0   )  0       


Rajat Gupta 9555487746
 


     40)
)

 
   +  


 Ñ      

     

  

 


  
  
      
   
      



    
 %    G :;;C Ñ       


:;<=)BAAD       
      
 


     

  
  

d    oJ     


 !  
 



   
   

        "



  
 
      
 
   
  
 


    "   


  
"   
 
 


"   




  
    
 


    

  
 

  
   


  
   
 "  
   
 "  
    

    


 
         

   

  



 
  

  
   
    


 
       

     
      

   


  

% I ! #  BAAC        *Ñ   
 " 

     %     " on+  


    



         d
  $  %
  



6        


 - (

 4
  (4 (



&(& $ &$&6      




 
    
    
 EP 
   

"   
 "    "  

  "  


 "   

 
 ("   

   "  
" Ñ  

cm
Rajat Gupta 9555487746
 
      
  EVA 
     /&$$  

  

  "     "         

 
    

   /&$$Ñ   
   

  
  CVA 
     /&$$     

 

"     "            
  %

  

   /&$$

'6/# BAA=     oÑJ    o  ! 

  


 !  
  strategic role
 *
 
  +  

 
     


0
   
  
  


        
   
   



  
 
 (

  & (&J 
  


 
 

        % 
  
 
)



                
 
 
  

     
    *
 
  +     
   


  


   Ñ 

   


  
 

     


   
         
 



  *
 
 +
      
 

   
 


 Ñ  


    

   -   )   

 )  

   
  Ñ  
      )

       
                " 

*
 
  + % 
  ) 
      
  " 

*
 
  + 

   
 +
  
 
        

   
   
      
     
 
 


 
  
   
  


G
Rajat Gupta 9555487746
F  BAA=    *       
  

 "   +  


  
  

    



# 
 K .
  BAA@ 
    *  + 
   # 
 :;;C BAAA

 
       

 
  
   


6
  
  
  
 
           

  

      



  
 

!
* 

   
 
+ #       


     

    

       


  

 !
   
  


 
     6
            
    

        "     F   


  
 


 
 
    

   


L H BAA=        *(   ) $   


"    


+ 
   
  7   


  
  

    Ñ    

    
 
 # 
7 

 
  
  
  
       
)   

 

  
    &
 

  


 
 
  
    
 
    

  -    


     
   

  
  
  

(" Ñ 
   
 )   
  

 
  

'
# 
H %BAA=    *#   "  


 %   * ' *   


*     +   

   
  !    

    
 )

 
dd 
    

d$%  

 
 

Ñ  
      
  

Gc
Rajat Gupta 9555487746
  

     
 


   

   
       

           


Ñ 
 

  ! 

   )
  

 
         
 
     
   +     



H  &BAA@    o 


 
   


"      +


 J   !  
 )      


    
  

  '   
   4 


    


      

   
  
     

     
  
        
    4(  
 40  



  


&)4 
   

 
 
   
   
       
     

 )      %



   
  
   


         
 )        

 


  
   

'  
 


:;;A5BAAB

   
        
        

       


 




 

         




0  %  BAAE        o    
    


"  !  
  (
+
BAAE

   

  
 
       
  
"   

 " 
 
  
 

  

    /  (


+
 

 "      

 
          
 # 
 BAAD      

GG
Rajat Gupta 9555487746

       
   
     
 


    
   
 
 
 

   4       BAAD        o    "  

(    


 
      
!  
 


 
  

   
  


  
   7   


  
 

       
  
 $
"   



    

   
     

    
        
 Ñ      

 



 + 
   
        
   
 
 


  
            ,
 

 

 
     
 
   
   

  

   
  % 
   
 
    
  

      



  
  

 ! 
     

 

    
 
 

6 
  4  .
 BAAB        o   
  $

   ,


 -! 
 
) 
 


 
 
   
 

 
    

  
 0(   
      
  
 
 "     


  

   
    
) 



 
      
   

  
   


 
 "  Ñ          
   
   


      )/
  
  

     

    
  
      
   
    
)

 
 
Ñ     
 
 
      

 
  
 
  
 
  
   
)  

G^
Rajat Gupta 9555487746
 


$   d
 H  BAA:        *J  "    
 

J   + 
 
  

 
 Ñ   

   


   

 
  0    $   :;;C

Ñ 0$d
 
+ 
  +(4  (4
  


     Ñ  


   
 
 
 

   

  
 "  Ñ  0$d
 
 
         Ñ  

     
 :;<;
 :;;= 
 0( 
  D:C9   
 

   
  
   
             



  0$d   
    

Ñ   BAA:        *    " 


  
  %   

 .%     


.    /    

  + 

  
  
      
 d$% 


    K  
 
        4
 G 
   

#7F         



  /&$$     
   

 

          


   
  d
  $  %


d$%  
 
 6       
  


 
  
 
  

    !

       H  BAA:     o 


   

  ! 


  
    
 
    

        
   )  
 

   


  Ñ       
 E:;B 
 
   :;;C):;;; 


0(         


  
       
    


) 
 
  
   )
    Ñ 




Rajat Gupta 9555487746
 
 
 

  
    

    



 
    
  
   

&  $



 .
 BAAA        oÑ    

 
     J  
     "    
  

  
 
  

         
  
    

        "  


     


     
  
             




"  
   
$  
  
:;;B):;;=(  

     


               


          
   
  

 "   


Ñ     

     


  
  


$   "   
   
    
 
 

   "  


,  

    

    

   
  

 

6 d BAAA        *     
    

 
          +  
   
 


  

   
             d4
   


"  #( 



 
 6  
  d4
 #(     

        

  )
)

        


 6 



  

.
 
    
      


0(

# 
 BAAA        o   
 " $ Ñ  
!

 
 
      
 
  



% 
    
 
    

    
    
 " 
 

    


Rajat Gupta 9555487746
 
    
Ñ '&&4
  


  
 
 
 
 
        Ñ  


  
       

  
  
 


  (4    d4  



" 

4     
  :;;C        o 
    

   
      


 
 

        d  d


 
  %$ %
 
Ñ 

    


:@A
  
:;;A
:;;= 
  


 
 )
) 
  
    
 

 
  

6     *   %   *    


 "    * 
     "   
 
  

dd d$%    




 
 

    
    
     
 
   

   
   

     
  
     

 
          (     
 


    
 
 

  
  
   

    
   
    
 )     

"   


) 
 
  
  
      


  
 "    
    
    
 
 


 
  
 ! 
 
   
 

M         o         !  




      
            
  
   0

  


:B


  
  
 
   

Ga
Rajat Gupta 9555487746
   !"    


  


 
  

Ñ   
 
  
          %    
 

     
          
 
  
  


  

 



       


           

       
   


    
   
  
 !  
 




 
Ñ  
 
    
 


 
     
   
   
   

         " 

 
Ñ    
  
   

   

  


  #   

 


 !
)     
  
      
 


  


 
 

   

   
   .)(Ñ  *

0112   .0110 %


 .2333   !    


   



    
   
 

 


 
 
 

        !Ñ  


   
 

 
    -


      4#          4 #  ,
   



   
  
 

      
  ,
 "  

  
      
 

      
 
 



       


   

 
     
 


  
 

"

 Ñ 
     


      

 
    

 
-      
  

   
 
   



      
        

    


Rajat Gupta 9555487746
 

    


 
        
 


  

'
 H  BAA@ 
    
 
 
 

 
     
   
    


 
  # 
 :;;@    
 #        

     



   
   

        




   
     
  " 

      Ñ     


    
     


 
   

 


Rajat Gupta 9555487746
CHAPTER 4


RESEARCH METHODOLOGY

 

Gm
Rajat Gupta 9555487746
4.1 Research Design

Ñ 
 
    

  
 


Setting the objective, viz, the variables to study


Collection of the relevant data for the study


Removing inconsistency & standardizing data


Residual Income Model- Literature Review

 Specification of Residual Income Model

 Specify the Mean Equation

Specify the variables to be tested

Test the variables on data

Obtain result


Goodness of Fit of test





Excess Kurtosis Coefficient Values Insignificant Parameters

 
Draw Conclusion

^
Rajat Gupta 9555487746
4.2 Research Objective

Ñ   
 
  
     
    
 
  

   
   
    
          
   

 
   
 
     

     


      %
  
 

         

 hypothetico ± deductive 


-

V 4
      

    



  
   


" 

V Ñ  
   
     
 "            
   
  


 
 
        
 


" 

4.3 Collection of Data

d 
   
   
  )    
    
 :D:D


  
 

  
  


   &    
            

 


Ñ 
   
 

:D 

    

  Ñ  



  &  &
   
   

4     Ñ 
  

     
  
   

" 
 
Ñ   



 
 


  

  4   
 B;= 
     
    :E; 
   

    


 
   
 
BA
 

^c
Rajat Gupta 9555487746
 
        
  :A9
  
 
 # 
 !  


   
 4   
   
   
        Ñ


 ::D 
     
    E; 
     

     


 
    
  
 BA 
   


        
  EA9
  
 
 # 
 !   
 

 
Ñ


  
  Ñ  
   


   Appendix II&    
    


 


" 
 
  
   

    

 
  
 !
  "  



  
 
  
 
 

Ñ     
  
  
 C C 
        
 

      


  
Ñ


Ñ    




      
        Ñ   
     


   Appendix IIIÑ     
   

  


   
    Ñ  


   
  !           


  

4.4 Period of Study

Ñ   


  

  
BAAB)BA:A

4.5 Area of Study

^G
Rajat Gupta 9555487746
4    
  
Ñ



    


4.6 Hypothesis

åull Hypothesis, H0 -   


       
  

 

  


   

Alternative Hypothesis, H1-   


 
      
  



  


   

4.7 Sampling

Ñ           " 8        " 

    
  
 
 
    

 
 
 %
 



  :D:D   
 
 .( E:< 
  
    

 
      

    BAAB 

BA:A Ñ
  
 C 
     
 
 
 
   

  Appendix I.

4.8 Model Specification

Ñ 

 
      '
 H   BAA@
 # 
 :;;@ 

 
   
  
  


^^
Rajat Gupta 9555487746


/ 

at     

B0  


" 

xt    


):0 ): "  


" 

Rt   7
  


4.9  Variable Studied

  

-)

4     

  
  

    

  


"     

   
 


 
   

4.10 Steps involved during Valuation

: %     
  
        
 .  4
        


 
4
 


 

B %  
  
   #(   
 



 


Rajat Gupta 9555487746
D Ñ 
  
  
 
 #(

E $
    . 4
    +      
  
  

  
     


  


@ Ñ  

 
      
"    

#(

=      


 
 E    @             

 

 

 

< %
              +      :)  


 


C %    + 

  
 
   + 

     

   

;   


 
:A   

  


:A Ñ . 4 



  

:Ad  

  
  


:=9

:: Ñ  


    
 
  



:B d  



 


       
 

 

 

4.11 Soft are Used and Source of Data

d   
. 4
  

 
   
   


 
 
 
$ G 
Ñ 
   
 

 
 
 
      
4:<A


Rajat Gupta 9555487746
^a
Rajat Gupta 9555487746
CHAPTER 5

RESULT AND ANALYSIS


 


Rajat Gupta 9555487746
5.1 Background 

Ñ  
  
          
  
  
  



 Ñ 
 

 
  
      


 
 

  Ñ  
  
  
         !   # 

 
    

    


          Ñ 

      


 
    

 

5.2 Variables Calculated

Ñ 

      
      
  

 
 

         
 
   


$ 
 
     )  

5.2.1 Return On Equity ROE)

  
("   
       
       

  
 #(          .   

  
 

          


"   



 
            #(
 
 

 
     BAAB)BA:A   
  Appendix VI

5.2.2 Retention Ratio

  
  
       

    
          

    
 . 4
 
 

  
 
     
 
  
 . 4
 


         . 4
 
  


Rajat Gupta 9555487746


5.2.3 Shares Outstanding

. 
  
      "
       
    

 

     

     .

 
    



           
  

+     

 
 

5.3 orecasted Result

Ñ    
 
    
     



    
 
  4    
   
  
 Ñ




  
 
    BA::
   


  


 
-

 $
  %
  4  9  


 BA::
:@::BA:A

&
 
   :;=C@ :A@=: C=D;

$   @EB:C =;<B )BBBD

d :=:A: :E<=D ;A<

%d$ ;EDC :A::@ )==;

4$& DB<;< DAC;@ =:=

G  D=D:; D;=<@ )CE=

4 6  @:::C @BA@@ ):CA

Ñ
 4   @C;D= @<AE DDB

^m
Rajat Gupta 9555487746
 
  

$$ BDD@ :;E;
:;@E;

 DAC<@ )A@:
D:ADE
# B<A<@ BA;=
BBDCE
4
 :@ED< );:<
:=;;@
Ñ$ ;:C<= )EDB
;=AB
Ñ    :B<C ==@;
<=<B
8    @@= CDE
@:DE
/
 @E<;@ :CC<
E=A;@
 

Ñ   

    
      
 
  
   

Appendix IX

5.4 Descriptive Statistics

d   
 4   
K
  
Ñ




      
  
  
 


  
 
 
BAA; BAACÑ  


 Appendix IV Appendix V 

 

›
Rajat Gupta 9555487746


ö & 
d    

V Ñ 
  Ske ness 
       
   

   


 
      

  :E:@
 


A@     
   

;@9   


   
  

  
 

 kurtosis 
             
     

   


 
      
)

:;=
 D=;
  
 

 A@       
      

;@9      


    
     
 
 
   

    


  

   
 


  

 




  

V #    

 
   

     
 mean, range,

standard deviation   variance  %


 
  " 
    


    
   6
 
   

     


  
 "

 

BAACBAA;   


  

   

V $     
      
 
   
  

 
          BAA;  

   BAAC 6



  
   
       


   +       

5.5 Empirical Analysis

›c
Rajat Gupta 9555487746
Ñ  

  
   " 

 


  
   %
   
  


 
    
  
        
     



BAA; BAAC6 
  

    


 
         
             

 &   


  
 
   
   


         
     
  Ñ 


   
   

  

        


  &  

Ñ                    


 
  

BAA;   BAAC       


  )"     4 :<A Ñ 

 
   )"    
               
   



 
   
 
       


  
 
Ñ 
4
 )"  
 


    
      
 @9  
 
       

     


 
  
    
    
   


   
     

%
   
         
 


            


  
   



  

  
 

 

 &   


 

   

     

 
 
          "   
  




 
  




 
 


›G
Rajat Gupta 9555487746
       
 
      
    

  

  
    
  
  Ñ         
  


              
   


      6  .6


  

5.6 Scope of further study

Ñ        


          
  
 
  

    



 

     



 
   

  

  

 
   

         


  

›^
Rajat Gupta 9555487746
CHAPTER 6

RE ERENCES

››
Rajat Gupta 9555487746
Research papers

: d &


 F  4    4 
 /   BA:A *   


"     +0


8  0
0C:Ñ.8FG  

8       

 G   G&: ELN 0


 8   0
 0C

:Ñ.8F&  - 
  1;CC=C;

B F
)H  F  $ 
 G     G Ñ & BAA; *   


" $  &      " ' '  + F  6

8   F
 /     8   (H #
 $

 0 G
 

  8  &  - 


  1:E=@C@@

D     6  O  $   6


  BAA; *  "  # 

 $    %   


+    6   8  


 $

  &
   d   & ) )4 ! d)@A;BD $

 

'  &  - 


  1:B<AC:B

E 4
 % I ! #  BAAC+ Ñ   
 "      

%      " + 4/ 


$

 4


 $

 

%   $ 
  $
  P D BCABD    &  

- 
  1B;=;E@

@ d  '
   H  & # 
 % BAA=+  #    "  
 

%   * ' *   


*  +   +

   


 0  . L
 8   / 4 $ 


 0 

&  - 
  1CCED:A

= 'Q  H   & BAA@ * 


  
    
 " 

  +
J  +%
   
     
0 

    /


 .
.ACBAA@

›„
Rajat Gupta 9555487746
<  R F   BAA@ *        
    '

"  +&  - 


  1:E;BA=B

C  40 %BAAE*   


    
" 

 + d  
 
  
 # 
           




0 .L
8  /
  

; H
 d   S H /  4       4    BAAD *   

"   (    


 
      
+

6   


 0  0
 8   /
 /
  
÷ ÷-

004

:AH
 #76 
   F  4  .
 BAAB *   
  $ 

   ,


  -+     

 G   8  

G  G&:ELN8F&  - 


  1D@<BCE

::G  F   H BAA:*" 


   

 + G
  $
 K '  


 0  Ñ  &K

8  $
  
ÑN/
 
<<CED)ED@D

:BÑ   BAA: *    " 


  
  %      .% 

    
 .      /            +

%  (

 Ñ   4
  %(Ñ4   6
 $    $    

&  - 
  1BE<@@=

:D
  % 6 d BAAA *#     
 J    " 

        + 0


$
 DABG 6 0


4&ssues in Accounting Education,:AE):DB

:EF
  &  H
 0 H $

 .
 BAAA *Ñ    

 
     J  
     " + 




›a
Rajat Gupta 9555487746
0 K(

/ G8  / 

# 
$ .


 
B@E;<B

:@   ' 6 / #  BAAA *Ñ J      o    !   


 
 ! 8  
 0   $
  BA@D     


0$$ &  - 


  1B@A:=@

:=F
FLHBAAA*(  ) $   
" 

   
+'0 G

 
8  H
 
&
  

&   %  


:@DBB@

:<H  & # 


  BAAA *   
 " $ Ñ  
+   




 0  . L
 8   . L
 $  &  

- 
  1B:C<EC

1N
)H  M   *         + Haas School of

Business, University of alifornia at Berkeley, Berkeley, A 4÷0-100, US

&  - 
  1BDC:;<

1/
 H/ :;CE *Ñ 4' ( "   + Xinancial Analysts Journal

EA@C)==

00    , oÑ5 " !*60 :;;::AB):EC

Books

: $ 4 H   /

     
- *Ñ J  6 )   

 &7!-')6BAAE

B d
 & *    $#6!.L
-H
/

K
BAA@

D d
 &  
 " .L
-H
/K
BAAD

E d
 &   .L
-H
/K
BAA:

@ d
  &  J   +   %
   " $ J    

›÷
Rajat Gupta 9555487746

       . L
- / :;;E & 
      



   



= 6  H   " $    '


- /BAA=

< F
 Ñ    '
    "         " 


  $ -/BAA@

C 4 F '        " - 8  %        
 )

/  ( 
4  :;;;

; /    d 


 $ F  .L
-')6

:A /    d 


 $ F  .L
-')6

Websites

î - 



î -  




î -


î -
 


î -




î -



î -





î -   

î -

  


݈
Rajat Gupta 9555487746
APPENDIX I Selection of sector for present study

&



&

&
$

 &
& Ñ0  

&






 $
 

0 
 0 


4  4
0 

$ '



 
6      (     ( 
 
$ '


( 

 $
 $ /$
 

    6 )


  $
    

 
 d  

$
 
  
 & $
 /   H
 d
4  /


d
%  $
  



$  


  $  
 $   $  4
      $
  

$  
  
  
$      4    $
  
$  


 $
  


%  K

    Ñ 


6
  &
%  $
 
6
     


 $
      (" 

%$'
 Ñ 
 
  
$     
0 d  #   

 G 4
 $
 

6 )
6 $


d 4   $
   



 ("      6
 


  

 
 
$
 04# Ñ   # 
 
Ñ


  
 $
  
Ñ Ñ   

›m
Rajat Gupta 9555487746
 
   
  $
 &   $
  

#K'
  
#  4 
 (  #      



4

 4



4
'  
$
  
    

Ñ 
 Ñ 
 $
 $

L       

Ñ 
  $
  
 K4 $
      

# 
 &

 0  K4  !
 6
# ! 
G
 

 Ñ 
 $
 Ñ  4
 
$
 (     .$  

„
Rajat Gupta 9555487746
APPENDIX II  G 
   
  

Pharma Sector IT Sector


 
   $ 

   %  Ñ





 6$G

 


% #

'  4 

 4


  
 

   Ñ


  Ñ   

. 
4      

    




   


   

/
  


„c
Rajat Gupta 9555487746
APPENDIX III G 
   $
  

4  
 Ñ



 
   $ 

   




 #

% 4


 Ñ

     

       


    

 

 

„G
Rajat Gupta 9555487746
APPENDIX IV


Descriptive Statistics for Pharmaceuticals sector year 2009 

  
.            d 
     F


    
                               (
     (


   C:B;AE< =:;B :D@BD; =;=BBCCE=C@C:E:B:;@=C@DE DA= <@B )::@@ :EC:

  C:@E=CA CA@@ :=B<D@ <@:BC:D@BEAD@ABB<E=:B<AD EC< <@B )=E= :EC:

. C
         
 





Descriptive Statistics for IT sector for year 2009 

  
.           d 
     F


    
                              (
     (


   CBDDA@A :BDA@ BE@D@@::<@=<@ACD<@;EE=<A:@=EE<< BEA <@B ):@AD :EC:

  CBE@BA@ :=D;A B=:@;@::E;;D<@C<CC;E::<<BE@EC@D C;< <@B )@:B :EC:


. C
         
 






„^
Rajat Gupta 9555487746
APPENDIX V

Descriptive Statistics for Pharmaceuticals sector for the year 2008 

  
.             d 
     F


    
                              (
     (


   C ==;:= E:E< <:A=D DDE=BAABBC==AEA@BBC@@<C D<D <@B )C=@ :EC:
  C =@AB@ DEDA =CE@@ B;::@AABA;DAE@<EDCACEA: ;@= <@B @C: :EC:

. C
         
 




Descriptive Statistics for IT sector for the year 2008 

  
.            d 
     F


    
                               (
     (


   C:B:<:C ;DC; :D::A< E;@CACCEBEA;A==:<;C@BC;A :B<D <@B <D@ :EC:

  C:B<CC@ E@A@ :DBD;A E@=BAAAE:B<@===:<AD=CA=D :@D: <@B BDD< :EC:

. C
         
 

„›
Rajat Gupta 9555487746
APPENDIX VI

$&G$8G&Ñ#.#%#(%#:=(G($Ñ(d('8G&dd(.d4&L.'

$#4&.(%#Ñ6(4(#dBAAB)BA:A

Aurobindo Pharma Cadilla Healthcare


 
  
 
("  
#( 
  
 
"  
#(

    $       

  
 BAAB  <<@:B@  BDC@  DB@  :A:D;D=@=  BC<@=  D@B=

BAAD BDD==A=C BDAC; :A:B @:@DABAE BB:@E BDB=

BAAE :=BC;@: =ABB B<A@ EAEA:@B :=@@C BEE

BAA@ :EC@<:@ @;@ BE;< DED=:@BD :D@C< B@B;

BAA= :B@B;CC: :@B;; C:; B<:<<A:C :::B; BEEB

BAA< =A=D=BE :DD@= E@E B:@:AC:; ;EE< BB<<

BAAC B=<D=CE :D@<B :;< BEED@CA: C@E: BC=:

BAA; E;:=<;@@ B:DD: BDA@ :B<;:ADE <=E: :=<E

BA:A DBC;B:: :<BB: :;: ::B:;:CE ;:== :BBE

Dr. reddy DC


 
  
 
("  
#( 
  
 
"  
#(

    $       

  
BAAB  BA@=CB;@=  :D@C@E  :@:E  CC=CD=  BC:  D:@=

BAAD :DC<@@DCE :BE@@= :::E E=C;EDB BBDB B:A:

BAAE B<=<A<B@ B=<D@ :AD@ DBBB<B :<BC :C=@

„„
Rajat Gupta 9555487746
BAA@ CEED=DD@ BDCA@ D@E< DEECBD= :==: BA<=

BAA= BD::=<:C B=;<E C@< DD@BE=E :@AB BBDB

BAA< <AB;:@B B@D<= B<< B@E=C<B :BBC BA<E

BAAC D<B@B<E B@DEB :E< <=DCC=E BA=E D<A:

BAA; @EDBD=DB BB=:= BEAB DCABB;; :=B< BDD<

BA:A CED:BA;@ :CEE@ E@<: EBA@;@E :E== BC=;

 

„a
Rajat Gupta 9555487746
IPCA Lupin

 
  
 
("  
#( 
  
 
"  
#(

    $       

  

BAAB  BBA=<<<=  <;CE B<=E  :DCACD;EB  E:@@E DDBD

BAAD :CBCA;=C :BEC< :E=E ;BE=EADB B;C@= DA;<

BAAE =A@C=:E BDECD B@C ED:<C;< :DEC@ DBAB

BAA@ @D:D@C :C;@ BCAE DABCB;=B :AC@C B<C;

BAA= B=B:=@C :ECB :<=; E;@AEB<B :@@AE D:;D

BAA< DEDBD;:B :DAE: B=DB B:=E=C<B :B:=C :<<;

BAAC =@==::DB BA:;: DB@B DC=;C<:B :A<AC D=:E

BAA; @D:<<=< :@C@@ DD@E :C;C=@; ;D@D BAD

BA:A BE@;;D; :BEC< :;< :<CBD<DB CA<= BBA<

Piramal Healthcae Torrent Pharma

 
  
 
("  
#( 
  
 
"  
#(

    $       

  

BAAB  :E<:==E  EE=@ DB;=  E@AB=E  :<@B  B@<

BAAD ;A=E=A;E D=DAB BE;< @A:D;:BC :<=;B BCDE

BAAE :@EB<CBC @BBC B;@: :<CED:C= =ABB B;=D

BAA@ ;=E:;BB @A:E :;BD :B;DEE=E ECEC B==C

BAA= :A;DC=EB E@;C BD<; <ECBAB E::: :CB

BAA< @<;ACD: B=D: BBA: BED@B;B; :E;:D :=DD

BAAC @CE=CCBC :A=@B @EC; DAE<EAC :D@B BB@E

BAA; =AD=D=CE ::<;; @::= B@ADDB=< ::CC: B:A<

„÷
Rajat Gupta 9555487746
BA:A BB=<@@B :A=;= B:B

   

 

„à
Rajat Gupta 9555487746
Cmc Infosys

 
  
 
("  
#( 
  
 
"  
#(

    $       

  

BAAB  B;DB@BE  ;<B DA:<  <E=<E<@@  B@=D@ B;:D

BAAD BD@@;A:B <=@E DA<C :EC:CBD<<B D;C@@E D<:C

BAAE BB@<=CAC =C@= DB;D C<EECBEB BE::< D=B=

BAA@ :CECD;<C =DC< BC;E CBEE==D :;=<< E:;

BAA= :CD;<D:E :EAA: :D:E :AA=<CD<: B@BD; D;C;

BAA< :@=A;BEE ::D<< :D<B C=<D@==E :;D@B EECB

BAAC DEC<DAEE :ABCE DD;: :;CD=<CCE EC<=D EA=C

BAA; B<@EC@@= <;;; DEEE :=<BC;:=E ED:DC DC<C

BA:A BE@A:<=E =A;C EA:C

   

oracle financial services Polaris

 
  
 
("  
#( 
  
 
"  
#(

    $       

  

BAAB  @D@@ABCC  D::@B :<:;  :@=B:;@B  CC:= :<<B

BAAD @DDC<E@= BEB@= BBA: :BE@@::C <B@E :<:<

BAAE @BB;CA@: DD:=D :@<< @;;AAD< ===D C;;

BAA@ @DEC=;= BCD= :CC= CCBDE;B =:AB :EE=

BAA= D@A:=EDB :CAC< :;D= :DCBAA= @@A= B@:

BAA< BC;A<@@ :@B;@ :C; @=@=D;B @E:C :AEE

BAAC B@::DEB :B<D@ :;<B <E<DB;: @A:; :EC;

BAA; @<D@<EAB B:EB= B=<< :D:A@;=C <;<B :=EE

„m
Rajat Gupta 9555487746
BA:A EDCADD<@ :DC<@ D:@< :D:C<: E==C BCB@

 

a
Rajat Gupta 9555487746
TCS Tech Mahindra

 
  
 
("  
#( 
  
 
"  
#(

    $       

  

BAAB  ::DBA:A<@ BC=@C@  D;@  <DCEEE  BD= 
D:B;

BAAD CD@B:D;;@ B:@;C@ DC=< :A:DBABD= :@;== =DE=

BAAE @;BCA@C@ :BE=< E<@@ =;ABB<E :AD@= ===@

BAA@ E;<BD;:B ;AEE @E;C @E@;;E; <@<C <BA@

BAA= <E=AB: :BB= =AC@ BE:A;;DB @;:C EA<E

BAA< <C<=<=B@ <BED :AC<@ ::;B::: E<<C BE;@

BAAC ACC=D:B :B;B =C=

BAA;   

BA:A

      

Unichem Wipro

   
 ("  #(   
 "  #(


    $       

  
 
:D:<EAA; 
@@=: 
BD=; 
:EC:@<:AD= 
E@=C@B 
DBED
BAAB

BAAD :B<<:<C EC@B@ B=DB C<=C<:E:@ D@EC=@ BE<:

BAAE D@A<;EC :CAE@ :;EE D=CCC@E<@ :B@=C@ B;D@

BAA@ BCDED@DB :A@<B B=C: BAEDBCED@ @=@C@ D=::

BAA= B===<EAD ;AE; B;E< @@C=;=@B :@=E: D@<B

BAA< :=<A<;;B =BDB B=C: B=<:<E:D <@A< D@@;

ac
Rajat Gupta 9555487746
BAAC :D=CD= EB DB@C ED:<:;AC :=:DD B=<=

BAA; DB:=CD: :B;:; BE; E:E<;=BB :E;@D B<<E

BA:A DC@BDA:@ ::@=@ DDD: EDCBA:D< :::@D D;B;

 

aG
Rajat Gupta 9555487746
APPENDIX VII

Chi-Square Tests for all values

 & 

 d  B)

4
$ )" ;;BAAA ;=: BD<

G

 
 BB:CA< ;=: :AAA

G ))G  B==@@ : AAA

&
 


.
$ DB  

:ABE:AAA9   


   @Ñ     

  
 AD

Descriptive Statistics for the year 2009

 4 
     
 .    d 
   B@  @A   <@ 

&  := ;@A=A;E <BC<A@<: CA@@ B=:@;@ EBCB:B@ CAE=B@A :DBD;=B@

(   := ;D@;@:; <AACBCD= =:;B BE@D@@ D;A<EB@ <@B:B@A :EBCB@B@

Symmetric Measures for the year 2009

  &  

 (
 &
Ñ &


   4


7 C;C AED <=DD AAA

# #    $


 
 ;E< AD@ ::AD< AAA

.
$ :=   

.
     
 

a^
Rajat Gupta 9555487746
8   
  
     
 

0

 
  


 


Rajat Gupta 9555487746
Descriptive Statistics for the year 2008

 4 
     
 .    d 
   B@  @A   <@ 

  := D<D=<@A DB<EDE=A DEDA :DBD;A :<D=AAA B=CD<@A @B=E=B@

   := E:@B:EE DD;E;;B; E:E< :D::A< :=@;E@A DED=CAA @::E@B@

Symmetric Measures for the year 2008

  &  

 (
 &
Ñ &


   4


7 ;=D AB: :DDAC AAA

# #    $


 
 ;BE A@@ ;A:A AAA

.
$ :=   

.
     
 

8   
  
     
 

0

 
  


 


Rajat Gupta 9555487746
APPENDIX VIII

$


    
4   



BAA;

800
600
400

 00
000
800 expected

600 actual

400
00
0
aurobindo cadila dr reddy fdc ipca lupin piramal torrent
pharma health health pharma


$


    

  
Ñ





 BAA;

000

500

000

500

000 expected
actual
500

aa
Rajat Gupta 9555487746


$


    

  
Ñ





 BAAC

800
700
600
500
400
expected
00
actual
00
00
0
aurobindo cadila dr reddy fdc ipca lupin piramal torrent
pharma health health pharma


$


    

  
Ñ





 BAA;

400

 00

000

800

600
expected
400
actual
00


Rajat Gupta 9555487746