The Sensitivity of Bank Stocks towards Risk Management: An Indian Perspective

This paper tries to use the financial statements information of banks concerning the risk management abilities and to find their sensitivity towards bank stocks performance. The theoretical framework is based on the accounting variables of the bank. By identifying the selected ratios, the overall risk management ability of banks is examined with the help of panel data regression with one-way fixed effects. The results shows that the risk management scores or indicators positively impacted the stock returns of the banks.