A Panel Analysis of the Effectiveness of the Asset Management in Indian Agricultural Companies

Abstract

In the Indian marketplace, agriculture is an essential function. Cultivation is one of India's largest businesses. The various agricultural operations help ensure the country’s development. Considering the relevance of agricultural companies, this study attempts to measure the effectiveness of asset management by these companies (the top 5 as per market capitalisation). This highlights the need to understand the relationship between net profit and fixed assets. Another objective is to measure the trend in fixed assets and profitability of the top agricultural companies in India. To do this, a regression analysis and time series analysis was carried out on the dataset. The Jarque-Bera test was used to ensure normality, followed by the calculation of poolability. The study found that India's top agribusiness companies balance their fixed assets according to profitability. So if an agricultural company wants to ensure its survival, continuance, earnings, and growth, it must manage its fixed assets efficiently in tandem with the profits gained.