Contemporary Business Studies - Academy of Knowledge Process ...
Contemporary Business Studies - Academy of Knowledge Process ...
Contemporary Business Studies - Academy of Knowledge Process ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
International Journal <strong>of</strong> <strong>Contemporary</strong> <strong>Business</strong> <strong>Studies</strong><br />
Vol: 3, No: 1. January, 2012 ISSN 2156-7506<br />
Available online at http://www.akpinsight.webs.com<br />
Correlation Between HDFC Bank EVA & HDFC Bank Share Price -0.61<br />
Correlation Between ICICI Bank EVA & ICICI Bank Share Price -0.17<br />
Correlation between ING Vyasya Bank EVA & ING Vyasya bank Share price -0.32<br />
Correlation Between Indusland Bank EVA & Indulsand Bank Share Price -0.41<br />
Correlation Between Karnataka Bank EVA & Karnataka Bank Share Price -0.29<br />
Correlation Between Kotak Mahindra Bank EVA & Kotak Mahindra Bank Share Price 0.02<br />
The correlation between EVA and stock price for Kotak is 0.02995 which is somewhat positive and<br />
negative <strong>of</strong> the Axis, HDFC, ICICI, ING Vyasya, Indulsand, Karnataka Banks have to between EVA and<br />
Market Value. Correlation between EVA and Market Value has showed too negative HDFC bank.<br />
Negative correlation show one variable is upside and second variable downsides visa a versa and positive<br />
correlation show two variables in upside or downside visa a versa.<br />
TABLE 9: Coefficient <strong>of</strong> Determination<br />
Banks Coefficient <strong>of</strong> Determination<br />
Axis bank 0.071685<br />
HDFC bank 0.374525<br />
ICICI bank 0.031106<br />
ING Vyasya bank 0.102826<br />
Among all banks, Induslnd bank 0.173659<br />
HDFC bank has<br />
highest coefficient <strong>of</strong> Karnataka bank 0.085797<br />
determination. A<br />
coefficient <strong>of</strong><br />
Kotak Mahindra bank 0.000897<br />
determination equal to<br />
0.37452 indicates that about 37.45% <strong>of</strong> the variation in Stock price <strong>of</strong> HDFC bank (the independent<br />
variable) can be explained by the relationship to EVA <strong>of</strong> HDFC bank (the dependent variable) which can<br />
be considered a Good fit to the data. Again for Indusind bank, a coefficient <strong>of</strong> determination equal to<br />
0.17365 indicates that about 17.37% <strong>of</strong> the variation in Stock price <strong>of</strong> Indulsand (the independent<br />
variable) can be explained by the relationship to EVA <strong>of</strong> Indulsand (the dependent variable), which can<br />
be considered a Moderate fit to the data. For Kotak Mahindra bank, ICICI bank, ING Vyasya bank, Axis<br />
bank and Karnataka bank the coefficient <strong>of</strong> determination is lower. It indicates that variation in Stock<br />
price <strong>of</strong> Particular bank (the independent variable) can be explained by the relationship to EVA <strong>of</strong><br />
respective bank (the dependent variable) which can be considered a bad fit to the data.<br />
Hypothesis Testing<br />
The hypotheses were studied using ANOVA. The p-value <strong>of</strong> ANOVA for Axis bank, HDFC Bank, ICICI<br />
Bank, ING Vyasya bank, IndusInd bank and Karnataka bank is 0.607, 0.197, 0.738, 0.535, 0.411 and<br />
0.573 respectively. All p-value <strong>of</strong> ANOVAs is greater than 0.05, except Kotak Mahindra bank, which<br />
enhances that none <strong>of</strong> bank, has significant impact <strong>of</strong> EVA over their Stock Price. The p-value <strong>of</strong><br />
ANOVA for Kotak Mahindra bank is 0.025, which is lesser then 0.05. It further enhances that EVA by<br />
Kotak Mahindra bank did have significant impact on Stock price <strong>of</strong> Kotak Mahindra bank.<br />
CONCLUSION<br />
32<br />
Copyright © 2012. <strong>Academy</strong> <strong>of</strong> <strong>Knowledge</strong> <strong>Process</strong>
Change language