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Stock Price and Green Finance Markets: A Comparison of Pakistan and India

DOI: 10.4236/jssm.2025.186030, PP. 476-499

Keywords: Return on Assets, Green Finance Market, Inferential Statistics, AR Modeling, Forecasting

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Abstract:

This study determines countries’ stock prices and green finance markets, with an emphasis on India and Pakistan. Time series data were collected from 2010 to 2020, consisting of ten companies in each country and their Return on Total Assets (ROTA). To this end, descriptive statistics and inferential statistical tools, supplemented by an Autoregressive AR(1) model, were used to analyze the raw time-series data collected to generate predictions. Vedanta, Adani, and Tata are the three companies with the highest ROTA in India (signifying the highest level of expected profitability over a 10-year forecast period). The ROTA that it predicted was more bullish than that inferred from historical data, suggesting that most companies were experiencing deteriorating returns on tangible assets. Among some of the largest companies in Pakistan, Engro and Nestle were discovered to have been first placed in generating profit from their assets during the period under consideration; PSO and POL were the least successful. Nestle was the only company in which ROIC decreased over time, but all companies except Nestle followed a decreasing trend in their ROTA values. This study implies that green finance markets in these two countries may provide distinct opportunities for investors.

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