IMPACT OF TRADE INVESTMENT ON FIRM VALUE AND SOLVENCY POSITION

Abstract

The corporates are becoming larger and giants by spreading their control, joint control, or influence in domestic and foreign firms through trade investment for the expansion of business. Therefore the main objective of this study is to know the impact of trade investment strategies on firm value and solvency position of corporates. To meet this objective the data has been collected from 34 BSE listed companies. These companies are selected from automobile, FMCG, pharmaceutical, telecom, and information technology industry based on market capitalization and availability of data. The data has been analyzed using fixed effect panel regression analysis in STATA software. The study concludes that the trade investment strategies have significant impact on firm value. Therefore it is suggested to the corporates that in making trade investment decisions or corporate restructuring decisions this should be considered.