Title: Modelling EPS of an Indian auto major

Authors: Ranjan Chaudhuri

Addresses: Industrial Management, National Institute of Industrial Engineering (NITIE), Vihar Lake, PO NITIE, Mumbai 400087, India

Abstract: The earnings per share (EPS) are critical for financial management of organisations. This paper examines the modelling of the EPS in the least complex structural form. The paper adds to the existing body of knowledge in econometric modelling through application of the group method of data handling (GMDH) algorithms. The GMDH works on the principle of criteria of choice or selection of the model to be made from a small number of data points. GMDH then determines the model of optimum complexity by shifting through a large number of models. Consequently, the best model is obtained in this prediction process. The subjective error of the model is minimal. The analysis is supported by case study of an Indian auto major.

Keywords: group method of data handling; GMDH; earnings per share; EPS; modelling; self-organisation techniques; optimum complexity; India; automotive manufacturing; automobile industry; financial management; econometrics.

DOI: 10.1504/IJSBA.2014.067143

International Journal of Strategic Business Alliances, 2014 Vol.3 No.4, pp.250 - 262

Received: 03 Jul 2014
Accepted: 17 Sep 2014
Published online: 07 Feb 2015 *

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