Investment Behaviour in Indian Sugar Industry: An Econometric Study

Contents: 1. Theme focus and problem setting. 2. Theoretical issues and evidences: a review. 3. Determinants of fixed investment behaviour. 4. Determinants of inventory investment behaviour. 5. Determinants of external finance and dividend behaviour. 6. Investment dividends and external finance: a simultaneous determination. 7. Summary and conclusions. References. Appendices. This book traces the history problems and prospects of Indian sugar industry in the pre reform period i.e., prior to 1991. The main focus of this work is the investment behaviour over the years of large public limited sugar companies which are non-governmental in nature. Three important aspects of investment behaviour of Indian sugar industry namely investment, dividends and external finance are analysed in the framework of flexible accelerator model. In the models on fixed investment and inventory investment the lag structure is extended to the financial variables also. In the analysis of fixed and inventory investment, importance is given to the role of demand factors. The role of dividend policies and investment outlays on external finance is also examined. The interaction between fixed and inventory investment expenditure is also examined. Similarly the interdependence among investment dividends and external finance is also studied. The book gives some interesting conclusions which may be of help to those who matter in this industry.