What is it about?
This paper is an attempt to explore the fact that whether the literature promised value premium has any sector orientation. Analyzing around 210-480 companies listed on BSE-500 for the period of recent 18 years and after dividing the sample data into six sectors of prominence- Fast Moving Consumer Goods (FMCG), Financials, Healthcare, Information Technology (IT), Manufacturing and Miscellaneous, the paper investigated the presence of inter-sector and intra-sector value effect. Further, the paper sheds light on Price-to-Book Characteristics. The empirical results of the paper suggest that the difference in P/B ratio both between sectors and within sectors is statistically significant. The results further suggest that the value premium exists within the sectors. The paper has important implications for portfolio managers and retail investors.
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Perspectives
Writing this article has been an enricihing learning experience. The article deals with value investing - an investment philosophy that has its roots in 1930s and is still equally relevant.
Priti Aggarwal
Delhi School of Business
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This page is a summary of: Is value premium sector-specific? Evidence from India, Managerial Finance, August 2020, Emerald,
DOI: 10.1108/mf-02-2020-0049.
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