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- W2060917295 abstract "Purpose – The purpose of this paper is to examine the applicability of stock selection criteria of Benjamin Graham in Indian capital market to determine which rules specifically can help the investors to augment their return on investment. Design/methodology/approach – The independent sample t -test has been employed to examine the stock return differences among the companies which fulfill maximum number of the criteria and the companies fulfilling minimal number. The significance of the excess returns yielded by the criteria is assessed through one sample t -statistics. Further, the applicability of each and every criterion is examined using pooled OLS regression analysis. Findings – The mean market adjusted returns of the companies which fulfill maximum number of the criteria are significantly different from the companies which fulfill minimal number. The companies those are able to fulfill at least any five criteria, yield excess returns to the investors. However, regression analysis makes it evident that all the criteria are not applicable in present economic environment. Research limitations/implications – The study recommends that an investor should give due importance to variables mainly high earnings yield, discount to tangible book value and net current asset value, lower leverage and stability in earnings in order to screen value maximizing securities. Originality/value – This paper extends discussion on application of Graham's stock selection criteria in Indian stock market. The study also enriches the literature on value investing strategies by extending discussion on reasons for the applicability/inapplicability of the Graham's stock selection criteria." @default.
- W2060917295 created "2016-06-24" @default.
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- W2060917295 date "2014-10-28" @default.
- W2060917295 modified "2023-09-24" @default.
- W2060917295 title "Examining the relevance of Graham's criteria in Indian stock market" @default.
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- W2060917295 doi "https://doi.org/10.1108/jamr-10-2013-0058" @default.
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