I am working on panel data for Oil and Gas industry of India, considering top 4 players that cover approx 85% of industrial market cap. EPS of companies is taken to be dependent variable. The result shows neither USD-INR exchange rate nor Crude oil prices impact the EPS of players, despite being major cost determinants. So does it signifies towards something or its a normal result obtained ?
Did you do coefficient diagnostics, residual diagnostics and stability diagnostics with the result?
No mam, just multi-variate regression was done, where both these factors had very high probability value, hence rejected.
Dear Aayush!
Could you please tell me about the panel time and other variables? Do you have any theoretical background for your model? You should firstly find the theoretical relationship between global oil prices, exchange rate and EPS of these companies. However, I guess you should find the empirical relationship between these variables. Otherwise, there are other crucial factors affecting on the EPS of these companies.
The best!
Ehsan
Sir, the independent variables that I have considered are:-
i. Price Earning Ratio (PE)
ii. Price to book ratio (PB)
iii. Dividend yield (DY)
iv. Book value (BV)
v. Total assets (Assets)
vi. Working capital (WC)
vii. Debt-equity ratio (DE)
viii. Net profit margin (NPM)
ix. Operating profit margin (OPM)
x. Revenue (Rev)
xi. Average USD-INR rate for every year (USD)
xii. Average crude price for every year (Crude)
xiii. Graham’s number (GN)
Whereas time-period taken in to consideration is 2005-06 to 2014-15 and companies chosen are:-
1. Reliance Industries Ltd
2. Indian Oil Corporation Ltd
3. Oil and Natural Gas Corporation Ltd
Thank you Mr Charbel Salloum.
What could be the concluded from such result ?
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