Firm Performance Determinants of FII in Indian Financial Service Sector

Authors

  • Ms. Monika Khanna Research Scholar, University Business School, Panjab University, Chandigarh, India.
  • Prof. Meena Sharma University Business School, Panjab University, Chandigarh, India.
  • Prof. A. K. Vashisht University Business School, Panjab University, Chandigarh, India.

Keywords:

Foreign Institutional Investment, Firm Performance, Financial Service Sector, ROE, Leverage, Book-to-Market Ratio

Abstract

Foreign investments results in capital inflow, improves labor productivity in a country as well as build up foreign exchange reserves to meet the current account deficit. FII considers firm performance as one of the crucial parameters while taking investment decision in foreign countries as it ensures more transparency in firm’s operations and safety of their funds. Considering the role of financial performance in investment decision of FII, the present paper by applying the yearly and pooled regressions shows the impact of firm performance on FII in the Indian financial service sector over a period of five financial years. Results showed that firm size, ROE and exports, have been found to have a positive impact on FII. Leverage and Book to market ratio, as expected have shown a negative impact on FII.

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Published

01-11-2021

How to Cite

Ms. Monika Khanna, Prof. Meena Sharma, & Prof. A. K. Vashisht. (2021). Firm Performance Determinants of FII in Indian Financial Service Sector. International Journal of Management Studies (IJMS), 5(2(7), 119–123. Retrieved from https://researchersworld.com/index.php/ijms/article/view/1884

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