Convergence of growth rate of profitability in Maharatna and selected Navratna companies in India

Krishna Singh and Debasish Sur

International Journal of Business and Globalisation, 2022, vol. 31, issue 3, 295-308

Abstract: The present paper attempts to analyse the process of convergence of profitability measured in terms of return on capital employed in Maharatna and selected Navratna central public sector enterprises in India during the period 2002 to 2014. While analysing the absolute and conditional beta convergence as well as modified sigma convergence, fixed effect regression model was used. The net outcome derived from the analysis of the absolute and conditional beta convergence indicates a significant convergence with respect to the overall profitability in both the Maharatna and Navratna companies. The modified sigma convergence reflects that the differences in achievements of return on capital employed in different companies within the group stepped up over time. The study also reveals that the central public sector enterprises with lower initial earning capability grew faster as compared to the companies with higher initial overall profitability.

Keywords: profitability; convergence; return on capital employed; ROCE; Maharatna and Navratna companies. (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=126746 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbglo:v:31:y:2022:i:3:p:295-308

Access Statistics for this article

More articles in International Journal of Business and Globalisation from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().