Unveiling Financial Strength: Piotroski’s F-Score Analysis in the Indian Automobile Industry

Anuradha Joshi¹ , Asha Sharma²

1. Dept. of Accountancy & Business Statistics, University College of Commerce & Management Studies, MohanlalSukhadia University, Udaipur, India.
2. Dept. of Accountancy & Business Statistics, University College of Commerce & Management Studies, MohanlalSukhadia University, Udaipur, India.

Section:Research Paper, Product Type: Journal-Paper
Vol.10 , Issue.7 , pp.46-49, Jul-2024

Online published on Jul 31, 2024

Copyright © Anuradha Joshi, Asha Sharma . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

View this paper at   Google Scholar | DPI Digital Library

XML View     PDF Download

How to Cite this Paper

81 Views    106 Downloads    37 Downloads

Abstract :
One of the main investment options that offers investors good returns is to invest in equity market. The return of these equity investments varies since share values are subject to vary with a number of factors. These external factors, such as interest rates, government policies, foreign exchange rates, etc., and firm-specific financial characteristics, such as turnover ratios, earning capacity ratio, dividend ratios, asset position, substantial capital investment, market value per share, etc., are the fundamental and strong factors that affect share prices. Piotroski`s F score evaluates a company`s financial health using nine fundamental ratios. Three distinct categories are evaluated by these ratios: operating efficiency, financial soundness, and profitability. The study focuses on to measure the relationship between the determinants that lead to influence share prices and share performance. The study aims to measure the impact of Piotroski`s F-score and financial factors affect share prices and firm value. Regression of Panel Data with Fixed Effect was applied. The study discovered that Financial Factors and Piotroski F-Score positively impact a firm`s share prices. Furthermore, a substantial correlation has been observed between the Piotroski F score and share prices. The results of this study may provide practical insights for industry practitioners, such as finance professionals and executives within the automobile sector, helping them make more informed financial decisions.

Key-Words / Index Term :
Financial Factors, Piotroski`s F Score, Firm efficiency, Firm performance, earning capacity, earning to price

References :
[1] F. Sukesti, I. Ghozali, F. Fuad, A. K. Almasyhari, and N. Nurcahyono, “Factors Affecting the Stock Price: The Role of Firm Performance,” J. Asian Financ. Econ. Bus., Vol.8, No.2, 2021, doi: 10.13106/jafeb.2021.vol8.no2.0165.
[2] N. P. Singh and A. Tandon, “The Effect of Dividend Policy on Stock Price: Evidence from the Indian Market,” Asia-Pacific J. Manag. Res. Innov., Vol.15, No.1–2, 2019, doi: 10.1177/2319510x19825729.
[3] C. Kathiravan, M. Selvam, B. Maniam, and S. Venkateswar, “Relationship between crude oil price changes and airlines stock price: the case of Indian aviation industry,” Int. J. Energy Econ. Policy, Vol.9, No.5, 2019, doi: 10.32479/ijeep.7963.
[4] N. Velankar, A. Chandani, and A. K. Ahuja, “Impact of Eps and DPS on Stock Price: A Study of Selected Public Sector Banks of India,” Prestig. Int. J. Manag. IT - Sanchayan, Vol.6, No.1, 2017, doi: 10.37922/pijmit.2017.v06i01.008.
[5] J. L. Seng and H. F. Yang, “The association between stock price volatility and financial news – a sentiment analysis approach,” Kybernetes, Vol.46, No.8, 2017. doi: 10.1108/K-11-2016-0307.
[6] G. Tanty and P. K. Patjoshi, “A Study on Stock Market Volatility Pattern of BSE and NSE in India,” Asian J. Manag., Vol.7, No.3, 2016. doi: 10.5958/2321-5763.2016.00029.9.
[7] S. A. Shah and U. Noreen, “Stock price volatility and role of dividend policy: Empirical evidence from Pakistan,” Int. J. Econ. Financ. Issues, Vol.6, No.2, 2016.
[8] Christiana Idowu Omotade, Etim Essien, Faith Obueni, Ukpabio Susan Ita, "How Corporate Governance Practices Shape Firm Transparency: A Deep Dive into Earnings Management in Nigeria," International Journal of Scientific Research in Multidisciplinary Studies , Vol.9, Issue.12, pp.44-51, 2023.
[9] G. Thouseef Ahamed, S. Aneel Amrutha Raju, "Corporate Governance Dynamics: Exploring Influence on Financial Performance and Market Valuation," International Journal of Scientific Research in Multidisciplinary Studies, Vol.10, Issue.2, pp.8-17, 2024.
[10] Faiz, M., & Das, D. (2024). A Study on the Factors Determining Share Price of aCompany. In International Journal of Research Publication and Reviews ,Vol.5, Issue.2, pp.1107-1111, 2024.