Company-specific antecedents to stock returns: a statistical investigation with special reference of the NIFTY 50

Sweta Goel, Nikhil Yadav, Nassir Ul Haq Wani and Aamir Aijaz Syed

International Journal of Diplomacy and Economy, 2025, vol. 11, issue 2, 105-123

Abstract: This study examines the relationship between stock returns and company-specific factors. Specifically, the study investigates the effect of Growth, Earnings, Dividends, Financial Ratios, Risk and Volatility on the stock returns of companies listed on the Indian Stock Exchange. The study used an ex post facto research design. The population comprised all companies listed on NIFTY 50, National Stock Exchange, India. Multiple regression analysis is used to analyse the data and test the hypothesis that financial indicators significantly impact stock returns. Findings reveal that several independent variables, such as Earnings per Share, Dividend Payout Ratio and Price-to-Book Ratio had a statistically significant relationship with stock returns. This study provides valuable insights for investors and analysts regarding the stock selection process. The findings suggest that combining company-specific factors can help predict stock returns. Few studies have addressed the interplay of company-specific factors and stock returns. This paper provides unique insights into this relationship in a developing economy using comprehensive financial metrics and advanced statistical techniques.

Keywords: company-specific factors; stock returns; dividends; financial ratios. (search for similar items in EconPapers)
Date: 2025
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