CKPIM Business Review

09

Authors: Dr. Anjala Kalsie and Ashima Arora

The objective of the paper is to establish the relationship between various components of working capital management on the stock prices of six FMCG companies in India. Hence the objective of the paper is to analyse the impact of current ratio, inventory turnover ratio, receivable turnover ratio and EPS on stock prices of Nestle, HUL, Marico, Dabur, Gillette, P&G. The time period for analysis is from April 2000 to March 2014. The data on various components of working capital is collected from annual reports of the companies. The data on stock prices is from Bloomberg. The frequency of the data is annual. The Fixed effects panel model was applied to find the impact of various explanatory variables on stock prices. The paper concludes that current ratio, inventory turnover ratio and EPS impact the stock prices and that the impact of receivable turnover ratio is relatively less. There is a negative relationship between current ratio and stock prices. Inventory Turnover Ratio, and EPS has a positive relationship with Stock Price.

15

Authors: P. Wilfred Isaac Newton and Dr. S. Madhavan

There are different types in mutual funds like Equity Fund, Money Market or Liquid Fund, Hybrid Fund, Debt or Income Fund, Gilt Fund, Index Fund, Exchange Traded Fund etc., But this study is focused on ETF and Index Funds. The present paper studies the growth trend of ETFs and Index Fund in India. In the dynamic financial world where investors are often rethinking asset allocation and reevaluating the merits of various investment products, Exchange Traded Funds (ETFs) have opened up a whole new range of investment opportunities and appear to be a creative solution to many investing queries. An alternative to index mutual funds, ETFs offer investors a low cost, tax efficient way to track their favorite market segments. This paper attempts to provide a conceptual framework of ETFs, so as to build awareness among investors about this relatively new financial product available to them.