Authors :
Rona Susan Varghese; Krishna M C
Volume/Issue :
Volume 9 - 2024, Issue 3 - March
Google Scholar :
https://tinyurl.com/ycybz5ew
Scribd :
https://tinyurl.com/y6pzetta
DOI :
https://doi.org/10.38124/ijisrt/IJISRT24MAR1897
Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.
Abstract :
Purpose:
The study explores the relationship between firm size, systematic risk, and stock returns across various industries. The
purpose of the study is to analyze how these factors influence stock returns and to provide insights for investors and financial
analysts. The theoretical framework is based on the Capital Asset Pricing Model (CAPM) and existing literature on firm
size, systematic risk, and stock returns.
Methodology:
The research methodology involves quantitative analysis using financial data from companies in different industries.
Variables such as firm size, systematic risk, and stock returns are measured and analyzed using statistical techniques and
models. The study aims to uncover patterns and relationships that can help in understanding the dynamics of stock returns
in diverse industry settings.
Findings:
The findings of the study reveal significant correlations between firm size, systematic risk, and stock returns. Larger
firms tend to exhibit lower systematic risk and higher stock returns compared to smaller firms. The analysis also highlights
industry-specific variations in the impact of firm size and systematic risk on stock returns, suggesting that industry dynamics
play a crucial role in shaping investment outcomes.
Originality:
This study contributes to the existing literature by providing empirical evidence on the relationship between firm size,
systematic risk, and stock returns in companies across different industries. The originality of the work lies in its
comprehensive analysis of these factors and its implications for investment decision-making.
Keywords :
Firm Size, Systematic Risk, Stock Returns, Industry Dynamics.
Purpose:
The study explores the relationship between firm size, systematic risk, and stock returns across various industries. The
purpose of the study is to analyze how these factors influence stock returns and to provide insights for investors and financial
analysts. The theoretical framework is based on the Capital Asset Pricing Model (CAPM) and existing literature on firm
size, systematic risk, and stock returns.
Methodology:
The research methodology involves quantitative analysis using financial data from companies in different industries.
Variables such as firm size, systematic risk, and stock returns are measured and analyzed using statistical techniques and
models. The study aims to uncover patterns and relationships that can help in understanding the dynamics of stock returns
in diverse industry settings.
Findings:
The findings of the study reveal significant correlations between firm size, systematic risk, and stock returns. Larger
firms tend to exhibit lower systematic risk and higher stock returns compared to smaller firms. The analysis also highlights
industry-specific variations in the impact of firm size and systematic risk on stock returns, suggesting that industry dynamics
play a crucial role in shaping investment outcomes.
Originality:
This study contributes to the existing literature by providing empirical evidence on the relationship between firm size,
systematic risk, and stock returns in companies across different industries. The originality of the work lies in its
comprehensive analysis of these factors and its implications for investment decision-making.
Keywords :
Firm Size, Systematic Risk, Stock Returns, Industry Dynamics.
