The Portfolio Behaviour of Industrial Corporations in India

Abstract

The study presents models of portfolio behaviour for four industries, viz., cotton textiles, sugar, transport equipment and nonelectrical machinery. The first two industries are consumer goods industries and produce to stock. The other two are capital goods industries and produce to order. The study uses econometric techniques to estimate influence of variables explaining changes in capital stock, inventories, accounts receivable, cash balances and government bonds and also the composition of liabilities (debt and equity).