IMPACT OF FINANCIAL PERFORMANCE OF CEMENT INDUSTRIES ON INVESTMENT DECISION IN COLLATERAL SECURITIES

S. POUNSAMY; Dr.A.SAMINATHAN

Volume : VI, Issue : I, January - 2017

IMPACT OF FINANCIAL PERFORMANCE OF CEMENT INDUSTRIES ON INVESTMENT DECISION IN COLLATERAL SECURITIES

S. Pounsamy, Dr. A. Saminathan

Abstract :

The present study aimed to know the impact of financial performance of cement industries on investment decision in collateral securities in major cities of Tamilnadu. The investor has various alternative options for investing savings to flow in accordance with his preference. Savings are generally flown into investment with an expectation of return, but savings kept as cash are unproductive. Savings are invested into return yielding assets depending on their risk and return characteristics. To determine the proper price for a firm�s securities, the security analyst must forecast the dividend and earnings that can be expected from the firm. This is the heart of fundamental analysis – that is, the analysis of determinants of value such as earnings prospects. Ultimately, the business success of the firm determines the dividends it can pay to shareholders and the price it will command in the security market. Because the prospects of the firm are tied to those of the oader economy however, fundamental analysis must consider the business environment in which the firm operates. For some firms, macroeconomic and industry circumstances might have a greater influence on profits than the firm�s relative performance within its industry. In other words, investors need to keep the big economic picture in mind.