The Impact of Financial Crisis on the Corporate Risk and Return- A Comparison between the Finnish and Indian companies
Singh, Manjinder (2018)
Jyväskylän ammattikorkeakoulu
2018
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2018121321362
https://urn.fi/URN:NBN:fi:amk-2018121321362
Tiivistelmä
Abstract
In order to evaluate the stock performance in the market due to financial crisis of 2008, the risk and return variations for Indian and Finnish companies were studied over a period of 2005 to 2017, as risk and return relationship is most mportant for taking the correct financial decisions. The Capital Asset Price Model was the theoretical foundation for the study. The secondary data of companies was the source of the gathered information that had been extracted through the reliable sources such as company's annual reports, official databases and websites. These values were analysed through the SPSS analysis software. The graphical analysis, regression analysis and descriptive analysis had been done for testing the prepared set of hypotheses with respect to the research questions. After keenly observing the findings, it could be concluded that stock returns had been performing better before crisis and its performance fall down during the financial crisis period and remained lower even after the crisis. The systematic risk, unsystematic risk and total risk got higher for the term of crisis as compared to their measures before and after crisis. The relationship between risk and returns had been significantly defined for their dependence on each other. The average of 15 Finnish and 30 Indian stocks had fallen down during the whole period of 2005 to 2017 due to financial crisis.
In order to evaluate the stock performance in the market due to financial crisis of 2008, the risk and return variations for Indian and Finnish companies were studied over a period of 2005 to 2017, as risk and return relationship is most mportant for taking the correct financial decisions. The Capital Asset Price Model was the theoretical foundation for the study. The secondary data of companies was the source of the gathered information that had been extracted through the reliable sources such as company's annual reports, official databases and websites. These values were analysed through the SPSS analysis software. The graphical analysis, regression analysis and descriptive analysis had been done for testing the prepared set of hypotheses with respect to the research questions. After keenly observing the findings, it could be concluded that stock returns had been performing better before crisis and its performance fall down during the financial crisis period and remained lower even after the crisis. The systematic risk, unsystematic risk and total risk got higher for the term of crisis as compared to their measures before and after crisis. The relationship between risk and returns had been significantly defined for their dependence on each other. The average of 15 Finnish and 30 Indian stocks had fallen down during the whole period of 2005 to 2017 due to financial crisis.