“Sustainable Stock Price Prediction through Pooled OLS Analysis: Integrating Fundamental and Volatility Indicators in India’s Automobile Sector”
DOI:
https://doi.org/10.53555/jaes.v21i3.63Keywords:
Sustainable Finance; Entrepreneurship; Green Investment; Volatility; Strategic Management; Automobile Sector; Corporate Responsibility; AsiaAbstract
Purpose:
Stock price forecasting is still crucial to the emerging economies like India where the automobile industry is the engine of sustainable industrialization and entrepreneurship. This paper will analyze the combined effect of the basic indicators and market volatility in determining the movement in stock prices to make financial predictability a responsible investment and economic resilience tool.
Design/Methodology:
The Pooled Ordinary Least Squares (OLS) model of panel data regression was used in 20172024. The basic predictors are the Price-to-Earnings (PE) ratio, Price-to-Book (PB) ratio, and Return on Equity (ROE), and the proxy of volatility is the Standard Deviation (SD) of returns. To ensure that all variables were comparable, Z-scores were used to standardize them.
Findings:
The model describes approximately 52 percent of the stock price movements, indicating that PE, PB, and SD play a major role in price movements, whereas ROE has weak short-term effects. The integration of the valuation and volatility measures makes sustainable investment more predictable and the market more transparent.
Originality/Value:
The article bridges the gap between financial modelling and sustainable entrepreneurship and shows that the integration of valuation volatility can support ethical finance and industrial innovation in the new markets of Asia.
Practical Implications:
The finds give information to investors, analysts and policy makers who are concerned with responsible investment models that strengthen the stability of markets, financial literacy and inclusive economic development.
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Copyright (c) 2025 Vandana Lakhotia Ladha, Dr. Ajay Trivedi (Author)
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