rolf w. banz 1980 studied the association between market value of common stock of a firm and its return. the result shows that small nyse firms had larger risk adjusted returns than larger nyse firms over a forty year period. stattman 1980 reveals that stocks with high book equity to market equity tend to yield unusually high returns. bandari 1988 find the leverage effect. it implies that higher debt equity ratio always has higher risk than low debt equity ratio. sanjay seghal srividya subramanian 2012 an higher pay out firms provides lower returns and low pay out firms provides higher returns. sanjay seghal srividya subramanian 2012 studied whether high level of earnings persistence is due to accruals or cash flow component. the report shows that excessive accrual portfolio tend to provide elevated returns as contrast to low accrual portfolio. one factor capm failed to capture the acccural anomaly but it was described by three factor fama french model owing to the risk premium supported by size factor. it is found that earnings occurs is more attributable to cashflows than accruals. sanjay seghal 2012 studied the profitability anomaly for the indian stock market.