Sector-Wise Investment Return Dispersion in Indian CPSEs: A Comprehensive Study of Aggregation Methods

Abstract

Central Public Sector Enterprises (CPSEs) are integral to India’s economic framework, providing critical goods and services. To ensure long-term sustainability, CPSEs must consistently generate reasonable profits. A higher dispersion in investment returns indicates greater risk. Therefore, this study analyses the industry-wise dispersion of investment returns in Indian CPSEs over the period from 2010-11 to 2019-20. Secondary data was utilized for the study. Dispersion in investment returns was assessed using the Coefficient of Variation (CV). Additionally, a paired t-test was employed to identify significant changes in average dispersion across the selected period, and one-way ANOVA was used to examine differences in investment returns among various industries. The findings show significant variability in the rate of investment returns across industries, with some industries displaying better consistency in returns during the first sub-period compared to the second. The study also revealed significant differences in investment returns across industries, underscoring the impact of each industry’s performance on the overall investment returns of CPSEs. This study provides valuable insights into the dispersion of investment returns in CPSEs, offering a clearer understanding of the inherent risks across different industries and their cumulative effect on the financial health of CPSEs.