60 results
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2. Spreading Wings.
- Subjects
ORGANIZATIONAL goals ,STOCK exchanges ,BUSINESS expansion ,BUSINESS planning - Abstract
The article highlights the goal of JK Paper to grow its export target and expand its distribution network across tier-II and tier-III markets. It highlights the achievements of JK Paper including its 50th anniversary of listing on the Bombay Stock Exchange (BSE) in India and investment in its unit in Odisha to augment production capacities of uncoated paper. Also discussed are the business growth plans of JK Paper that include enriching the green cover through social farm forestry.
- Published
- 2015
3. Revisiting the Long-Run Dynamic Linkage between Dividends and Share Price with Advanced Panel Econometrics Techniques.
- Author
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Mohapatra, Sudatta Bharati and Kar, Nirmal Chandra
- Subjects
STOCK prices ,DIVIDENDS ,ECONOMETRICS ,STOCK exchanges ,VALUE (Economics) - Abstract
The log-linearized present value model (PVM) has been widely used in corporate finance to understand the long-run relationship between share price and dividends using panel data. However, the application of recently established panel econometric approaches that account for slope heterogeneity and cross-section dependency in the recent literature regarding the long-run link between share price and dividends in an Indian setting is limited. This paper re-examines the log-linearized PVM in an Indian setting using newly developed panel unit root, cointegration, and long-run dynamic estimation approaches. This study employed a panel dataset of 60 Bombay Stock Exchange (BSE)-listed Indian firms paying regular dividends for 28 years (1990–2017). The study found unit root, cointegration, and a long-run relationship between dividend and share price series for Indian firms during a 28-year sample period. By demonstrating the presence of a long-run link between share price and dividends, this paper contributes to the literature on the PVM, which is crucial in comprehending market rationality and share price behavior in India. This paper also discusses issues related to panel data, such as cross-section dependency and slope heterogeneity, as well as panel econometric approaches that can be applied in the appropriate settings. [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF
4. Price extremes and asymmetric dependence structures in stock returns: the emerging market evidence.
- Author
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Thazhungal Govindan Nair, Saji
- Subjects
RATE of return on stocks ,PRICES ,STOCK prices ,BUSINESS cycles ,STOCK exchanges ,EXTREME value theory ,STOCK price forecasting - Abstract
Purpose: Equity research in experimental psychology reveals investors' overreactions to bad news events. This study of asymmetric price structures in equity markets investigates whether such behavior predicts stock returns in an emerging market of India. Design/methodology/approach: The research decomposes Bombay Stock Exchange (BSE) Sensex returns into Extremely Positive Returns (EPR) and Extremely Negative Returns (ENR) based on extreme values at first and then tests their lead–lag relations. Findings: The empirical finding is consistent with the existing evidence of asymmetric news effects on stock returns in India. In precise, ENR robustly predicts one-month-ahead EPR for the sample period from January 1991 to March 2020. This predictive power persists even in the presence of popular valuation ratios and business cycle variables. Practical implications: The paper explains the rationale of extreme value modeling in price forecasting. Investors can find additional utility gains from market cycle information while predicting extreme returns in Indian stock market. Originality/value: The paper is unique to understand business cycle effects in extreme return reversals in emerging markets. [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF
5. Benchmarking the private sector banks in India using MCDM approach.
- Author
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Gupta, Sanjay, Mathew, Manoj, Gupta, Swati, and Dawar, Vinay
- Subjects
PRIVATE banks ,PRIVATE sector ,ANALYTIC hierarchy process ,ECONOMIC indicators ,STOCK exchanges ,FINANCIAL performance - Abstract
The study aims to rank the performance of Indian private sector banks on the basis of their financial capability. The study is focussed on those banks which are listed in the Bombay Stock Exchange (BSE), for the period from 2014–15 to 2018–19. The financial performance of selected Indian private banks is ranked using a hybrid Multi‐Criteria Decision Making (MCDM) technique, that is, AHP‐TOPSIS. The Analytical Hierarchy Process (AHP) is used to determine the weights of 10 financial performance pointers, and further Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) is used to provide rankings and benchmarking of the private sector banks. Thereafter, overall ranking is given to the selected banks using interval‐valued TOPSIS (IV‐TOPSIS) for a combined period of 5 years. Sensitivity analysis has been performed to check the robustness of the method and its impact on the final ranking of the banks. Results showed that HDFC bank is the top performer and is ranked first for all the years consecutively during the period 2014–2019 and has set a financial indicator benchmark for other competitor banks. South Indian Bank showed the worst results in each year and stood last in the overall ranking. The IndusInd bank is followed after HDFC bank by improving its performance from 2014–19. With a slight margin, Kotak Mahindra Bank ranked after IndusInd. Through the AHP‐TOPSIS technique, each year the private sector banks ranking differs among themselves depending upon the financial performance pointers. Based on interval‐valued TOPSIS (IV‐TOPSIS), it was found that the overall HDFC was the top‐performing bank and South Indian Bank was the worst‐performing bank among all other banks. The results obtained from sensitivity analysis were found to be consistent with IV‐TOPSIS. The paper used the AHP technique, which is subjective in nature, and the results depend on the opinion of the experts. This study will assist the investors who want to channelize their funds in private banks having shares enlisted in BSE. It will accommodate banks to compare and judge their financial performance along with improving their performance and planning their future strategy. AHP‐TOPSIS utilized by past researchers is unable to bring out the cumulative performance for banks, but in this paper, IV‐TOPSIS is utilized, which can be effectively used to evaluate the cumulative performance of banks. The study tries to fill the gap in the literature by providing the overall ranking to private sector banks in India on the basis of financial indicators. [ABSTRACT FROM AUTHOR]
- Published
- 2021
- Full Text
- View/download PDF
6. CSR during COVID-19: exploring select organizations' intents and activities.
- Author
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Ramya, S.M. and Baral, Rupashree
- Subjects
COVID-19 ,COVID-19 pandemic ,SOCIAL responsibility of business ,STOCK exchanges ,STOCK price indexes - Abstract
Purpose: This paper aims to explore the immediate proactive corporate social responsibility (CSR) efforts undertaken by select organizations in India in response to the coronavirus (COVID-19) pandemic and the approach they have adopted toward it. Design/methodology/approach: Semi-structured interviews were conducted with 27 senior managers across top Bombay Stock Exchange indexed organizations from the manufacturing and services sector in India during the national COVID-19 pandemic lockdown between March and June 2020. Manual content analysis and the Gioia method were used to arrive at the insights. Findings: Results of the analysis showcase the spirited immediate CSR measures undertaken by the select organizations in the broader interests of the community at large. The study also highlights the need for a paradox approach toward CSR strategy. Research limitations/implications: Given that the present study adopts an exploratory qualitative research design, the scope for generalization is rather limited. Practical implications: This paper classifies COVID-19 related initiatives undertaken by selected few top organizations in India and attempts to justify the need to opt for a paradox approach toward CSR strategy. Originality/value: To the best of the author's knowledge, this is one of the first few studies to have attempted to put forth a dialog at the intersection of COVID-19 and CSR with rich insights gained from qualitative data collected during India's intense lockdown period and offering a different perspective with the inclusion of paradox theory into the discussion. [ABSTRACT FROM AUTHOR]
- Published
- 2021
- Full Text
- View/download PDF
7. Do sustainability committee characteristics affect CSR performance? Evidence from India.
- Author
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Jarboui, Anis, Dammak Ben Hlima, Nada, and Bouaziz, Dhouha
- Subjects
SOCIAL responsibility of business ,STAKEHOLDER theory ,EVIDENCE gaps ,INSTITUTIONAL ownership (Stocks) ,STOCK exchanges - Abstract
Purpose: This study aimed to investigate the effect of sustainability committee (SC) characteristics (size, independence, the number of meetings, and expertise) on corporate social responsibility (CSR) performance in the Indian context. Design/methodology/approach: This research measures the CSR performance of 60 Indian non-financial firms listed on the Bombay Stock Exchange (BSE) over the period 2014 to 2019 using the ASSET4 environmental, social, and governance database. The authors resorted to fixed-effect panel regressions to capture the individual effect present in the data. Findings: The results show that CSR performance is positively and significantly influenced by SC independence, size, and expertise. However, the number of SC meetings does not affect CSR performance. The results also demonstrate that CSR performance is positively and significantly associated with board independence. Research limitations/implications: This paper adds to the existing literature by examining the effect of SC characteristics on the firms' CSR performance in India as one of the oldest stock markets in the world, which would help test the validity of the agency and stakeholder theories in an old and big emerging market context. Practical implications: The findings allow managers to understand the mechanisms affecting CSR performance and how the characteristics of the SC can participate in its growth and development. Moreover, this study has implications for researchers, suggesting that future CSR studies should take into account the SC characteristics as potential determinants that explain CSR, such as CSR activities and CSR practices and strategies. Originality/value: The present research contributes to the literature by investigating the effect of SC characteristics on the firms' CSR performance, thereby providing additional evidence on the issue. Several previous studies have examined the link between corporate governance and CSR performance with a focus on external oversight mechanisms, namely institutional ownership or analyst coverage or internal oversight mechanisms, such as board gender composition, board independence, separation of board Chairperson and CEO roles, and the existence of SC on the board, but these studies did not examine the SC characteristics. The present research fills the gap. [ABSTRACT FROM AUTHOR]
- Published
- 2023
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8. Formation Of Strong Indian Capital Market -- From The Annals Of History.
- Author
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Suneja, Shaleen and Kumar, Ashish
- Subjects
FINANCIAL markets ,CAPITAL market ,BOND market ,CITIES & towns ,HISTORICAL source material - Abstract
Capital market that we see today in India has evolved over more than two centuries and its genesis lies in developments that took place during rule by East India companies. The nascent markets that emerged during the period have matured and are one of the most progressive markets in the world today. The Indian capital markets are robust, use best of the technologies and generate interest from across the world. This work draws inspiration from many printed resources that include, academic articles, reports and books. The paper attempts to identify the nascent stages of formation of capital markets in the country over time. From a historical perspective the Indian capital market is closely interwoven with the Bombay Stock Exchange which is also first exchange to be formed in Asia. The paper also covers shape of present-day capital market that has emerged over time. The paper explains how the capital markets have expanded across different cities for several decades and then, constrained with the environmental changes, they consolidated. [ABSTRACT FROM AUTHOR]
- Published
- 2023
- Full Text
- View/download PDF
9. COVID-19 Vaccination Effect on Stock Market and Death Rate in India.
- Author
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Behera, Jyotirmayee, Pasayat, Ajit Kumar, and Behera, Harekrushna
- Subjects
COVID-19 vaccines ,DEATH rate ,COVID-19 pandemic ,STOCK price indexes ,GOVERNMENT policy ,STOCK exchanges ,COST effectiveness - Abstract
The COVID-19 epidemic has brought attention to the vulnerability of new illnesses, and immunization remains a viable option for resuming normal life. This paper examines the influence of COVID-19 vaccination on the death rate and the performance of stock market in India. For this study, COVID-19 vaccination and death rate data is gathered from the Ministry of Health and Family Welfare (MoHFW) portal, and the data for the stock index is taken from the Bombay Stock Exchange (BSE), India. In order to achieve a precise representation of feature significance and distribution, EDA (Exploratory Data Analysis) is utilized in this study. The impact of COVID-19 immunization on the mortality rate and stock market index is investigated using both statistical analysis and Machine Learning Regression-based models. The models are remarkably accurate in reproducing actual result. The empirical study suggests that vaccination has a strong positive impact on the stock market and reducing the death rate. Furthermore, the policies recommended by government and monetary authorities coupled with COVID-19 vaccine supported the stock market recovery in pandemic. [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF
10. IMPACT OF IND AS ON ACCOUNTING NUMBERS: AN ANALYTICAL STUDY IN CONTEXT OF INDIAN COMPANIES.
- Author
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Sharma, Antima, Kalra, Nisha, and Soral, G.
- Subjects
NUMBER theory ,FINANCIAL statements ,CHI-squared test ,STOCK exchanges ,INSURANCE companies ,MARKET capitalization ,ACCOUNTING - Abstract
This paper tries to examine the impact of Ind AS on some accounting numbers and also to examine if there is any statistically significant difference among the prevailing opinions regarding Ind AS adoption in India. We took the top 45 companies from the Bombay Stock Exchange, according to their market capitalisation, and excluded banking, non-banking financial companies, and insurance companies due to non-availability of data, and made a questionnaire for opinion survey. We applied paired t-test on the secondary data and a chi-square test on the primary data. No statistically significant difference was found in the accounting numbers after the adoption of Ind AS. Results also revealed that there is homogeneity in the opinion of respondents with different work experiences and occupations regarding the impact of Ind AS on accounting numbers. Indian companies should provide more disclosure in their financial statements, so that the informational content of accounting numbers can be increased. [ABSTRACT FROM AUTHOR]
- Published
- 2022
11. Rational Bubbles and Volatility Persistence in India Stock Market.
- Author
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Onour, Ibrahim A.
- Subjects
STOCK exchanges ,MARKET volatility ,STOCK prices ,DIVIDEND yield ,EMERGING markets ,CAPITAL gains ,LOG-linear models ,LOGARITHMS - Abstract
This paper employs a combination of unit root tests and fractional integration technique to test for rational bubbles in Bombay Stock Exchange (BSE). It is indicated in the paper that evidence of a unit root in dividend yield is consistent with presence of rational bubbles in the stock prices. The results in the paper strongly support evidence of rational bubbles in BSE. Moreover, the paper also investigates the degree of conditional volatility persistence to show persistence of shocks to stock price volatility is short-termed. [ABSTRACT FROM AUTHOR]
- Published
- 2010
12. Impact of anchor investors on IPO returns during pre-market and aftermarket: evidence from India.
- Author
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Gupta, Vikas, Singh, Shveta, and Yadav, Surendra S.
- Subjects
GOING public (Securities) ,STOCK exchanges ,INVESTORS ,ANCHORS - Abstract
Purpose: The unique regulatory design of India provides us with the opportunity to disaggregate traditional initial public offering (IPO) underpricing into three categories: voluntary, pre-market and post-market. The presence of anchor investors in India makes it a compelling case to study. These individuals were introduced to bring transparency in the book building process, but their impact on pre-market and post-market underpricing was not foreseen. Therefore, the purpose of this paper is to evaluate the impact of anchor investors on the IPO underpricing after disaggregation and on the long-run performance of an IPO. Design/methodology/approach: A sample covering 232 IPOs from a period of 2009–2018 is included. The empirical analysis explores the impact of various firm-specific as well as market-specific variables on IPO underpricing. The financial data for the empirical analysis are extracted from Prime database and websites of National Stock Exchange and Bombay Stock Exchange. To deal with the outliers effectively, this paper deploys "robust-regression." Findings: The study finds that investor's subscription rate and voluntary underpricing impacts the pre-market but do not have any impact on the post-market while the age of the firm has a different impact on both the markets and the number of anchor investors have the same impact in both markets. Anchor investors' participation increases the pre-market as well as post-market underpricing. Lastly, the long-term performance of IPOs backed by the anchor investors is high relative to the IPOs not subscribed to by the anchor investors. Originality/value: This paper is believed to be the first attempt to study the impact of anchor investors on the disaggregated IPO underpricing. The findings of this study will have a great insight for the investors. [ABSTRACT FROM AUTHOR]
- Published
- 2020
- Full Text
- View/download PDF
13. A study of corporate social responsibility practices of the top Bombay Stock Exchange 500 companies in India and their alignment with the Sustainable Development Goals.
- Author
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Poddar, Anushree, Narula, Sapna A., and Zutshi, Ambika
- Subjects
SOCIAL responsibility of business ,STOCK exchanges ,SUSTAINABLE development ,SOCIAL sciences education ,MARINE biology - Abstract
This paper highlights the organic link that exists between the corporate social responsibility (CSR) activities undertaken by the Indian corporate sector and their alignment with the Sustainable Development Goals (SDGs) from 2014–2016; the period after mandatory CSR came into existence as per Indian Companies Act. In this study, we identify critical areas pertaining to SDG goals neglected by corporate sector as far as CSR investments are concerned. We find that more CSR investments must be drawn towards climate change, biodiversity, Sustainable consumption and production, marine life and conserving flora and fauna. The sectoral analysis reveals that the companies falling under sectors that have a higher environmental footprint and impact are more concerned about taking up initiatives through CSR. The geographic analysis revealed that efforts need to be made to increase CSR expenditure in seven north‐eastern states, Jammu and Kashmir, and Union Territories. This paper recommends that the system needs to be further reviewed in light of the current observations. [ABSTRACT FROM AUTHOR]
- Published
- 2019
- Full Text
- View/download PDF
14. Cointegration of Developed Economies and Indian Stock Market After Economic Reforms.
- Author
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Kannan, R. Kumara and Jesiah, Selvam
- Subjects
COINTEGRATION ,ECONOMIC reform ,STOCK exchanges ,GRANGER causality test - Abstract
The main purpose of the paper is to investigate whether and to what extent the Bombay Stock Exchange (BSE), India is integrated with the major mature markets in the US, UK, Germany and Japan. The dataset has been divided into: post Asian Crisis but before Euro Emerged (July 1997-January 2002); after Euro but before US Subprime Crisis (February 2002-November 2007); from the US Subprime Crisis before Modi's emergence as national leader (December 2007-April 2014); and after Modi's emergence (May 2014-July 2016). The study uses unit root test, Johansen-Juselius test, GARCH(p, q) model estimation, and Granger causality test for the purpose. [ABSTRACT FROM AUTHOR]
- Published
- 2019
15. Parametric Determinants of Borrowings in Indian Hotel Industry.
- Author
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Kumar, Sushil and Bodla, B. S.
- Subjects
HOTELS ,STOCK exchanges ,RATE of return ,CAPITAL ,CORPORATE debt - Abstract
This paper provides an empirical examination of the determinants of borrowings in hotel companies listed on Bombay Stock Exchange. A sample of 50 hotel companies listed on BSE was studied and it is revealed that the 'company size', 'return on capital employed' and 'non-debt tax shield' are the most important determinants of total debt ratio in hotel industry in India. While the 'collateral value of assets', 'company size' and 'return on capital employed' are the most important determinants of long term debt ratio in hotel industry in India. The paper has been divided into five sections i.e. backdrop, review of literature, research methodology, results and discussions followed by conclusions. [ABSTRACT FROM AUTHOR]
- Published
- 2010
16. An Analysis of Lead-Lag Relationship Between Stock Returns Using Spectral Methods.
- Author
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Bhandari, Avishek and Kamaiah, Bandi
- Subjects
RATE of return ,STOCK exchanges ,INTERNATIONAL markets ,MARKET prices - Abstract
This paper examines the relationship between BSE Sensex and three other developed markets in the frequency domain. Cross-spectral methods, which are important in discovering and interpreting the relationships between economic variables, are used to analyze the relationships between different price series. Cross-spectral methods, developed using Fourier techniques, give valuable information regarding the correlation structure in the frequency domain. This paper applies these methods to study the lead-lag relationship between BSE Sensex and other international markets. The results show no significant co-movement of Indian stock prices with developed market prices at lower frequencies; and in the long run, the developed stock markets seem to lead Indian market. However, in the short run, some evidence of behavioral similarities is observed. [ABSTRACT FROM AUTHOR]
- Published
- 2015
17. VOLATILITY OF INDIAN STOCK MARKET WITH REFERENCE TO CHANGE IN FII POLICY 20.
- Author
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DAVE, AMEE I. and PARIKH, PRIYA D.
- Subjects
MARKET volatility ,STOCK exchanges ,INSTITUTIONAL investors ,STOCKS (Finance) ,DEBT - Abstract
The Foreign Institutional Investors (FIIs) have emerged as noteworthy players in the Indian stock market and their growing contribution adds as an important feature of the development of stock markets in India. FII is allowed to enter into our country only through stock exchanges either in the form of equity or debt. It makes an impact on the rise or fall of SENSEX, since FII is allowed to be purchased or sold daily. This paper attempts to study the impact of market openings to FIIs, on Indian stock market behavior. India announced its policy on 8th March 2001 for FII investments in equity and related instruments. Using stock market data related to Bombay Stock Exchange, for both before and after the FIIs policy announcement day. An empirical examination has been conducted to assess the impact of the market opening on the return and volatility of stock return. This Research paper is mainly divided into two parts. Firstly researcher has examined impact on stock prices & average return before and after event day. And secondly it's been examined change in volatility in the Indian stock market by comparing variances of return for the event period under study. We have tried to cover one year time period before and after the event day to understand the exact validity and reliability of the result. Moreover the sample size of our study is 500 days daily market return. However validity of results and empirical tests has been taken place by applying Wilcoxon-Mann -Whitney test, also called as the rank sum test. Finally results indicate that there are no significant changes in the Indian stock market average returns and volatility of stock prices returns after changes in percentage of investment from 24% to 49%. [ABSTRACT FROM AUTHOR]
- Published
- 2013
18. Examination of Efficient Frontier Under Constraints in Indian Equity Market.
- Author
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Kanagaraj, A. and Kumar, Abhinav
- Subjects
STOCK exchanges ,MINIMUM variance estimation ,STANDARD deviations - Abstract
This paper takes into account a set of risky stocks from the Indian equity market with a view to constructing efficient frontiers and examining the optimal portfolio behavior under various constraints. The paper uses Sensex 30 stocks daily prices along with daily BSE Sensex index price data as market benchmark for 10 years starting from 2006 in constructing and optimizing portfolio with the minimum variance and maximum return under different constraints. The paper makes an attempt to identify the efficient frontiers by estimating the average return of the portfolio and iteratively minimizing the standard deviation or risk of the portfolio to the minimum possible level. It is observed that the efficient frontiers shift towards left as constraints are relaxed in its formation. So, according to the study, the most constrained efficient frontier is the one with value-at-risk at 95% and short sales not allowed. The most relaxed efficient frontier is the one with short sales allowed, as it is to the leftmost position in the combined graph created, as shifting of the efficient frontier to the left in the return-risk graph means same returns for lower levels of risk. [ABSTRACT FROM AUTHOR]
- Published
- 2017
19. The holiday effects in stock returns: a challenge for the textile and clothing industry of India.
- Author
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SHAKILA, BOLAR, PRAKASH, PINTO, HAWALDAR, IQBAL THONSE, SPULBAR, CRISTI, and BIRAU, RAMONA
- Subjects
CLOTHING industry ,TEXTILE industry ,EFFICIENT market theory ,TEXTILE machinery ,STOCK exchanges ,HOLIDAYS - Abstract
Copyright of Industria Textila is the property of Institutul National de Cercetare-Dezvoltare pentru Textile si Pielarie and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
- Published
- 2020
- Full Text
- View/download PDF
20. Do Stock Returns in India Follow a Random Walk?
- Author
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Sadath, Anver, Hiremath, Gourishankar S., and Kamaiah, Bandi
- Subjects
STOCK exchanges ,RANDOM walks ,AUTOCORRELATION (Statistics) - Abstract
This paper empirically investigates the behavior of stock returns of two premier stock markets in India, namely, the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Specifically, the paper seeks to examine whether the security returns in these two markets follow Random Walk Hypothesis (RWH). Towards this end, data on major indexes during the period June 2, 1997 to February 29, 2009 are analyzed using variance ratio and autocorrelation tests. The results are inconclusive as both the tests provide mixed results. [ABSTRACT FROM AUTHOR]
- Published
- 2012
21. Corporate governance and payout policy: evidence from India.
- Author
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Rajput, Monika and Jhunjhunwala, Shital
- Subjects
CORPORATE governance ,DIVIDENDS ,STOCK exchanges ,DIVIDEND policy ,FAMILIES - Abstract
Purpose: The purpose of this paper is to study the impact of ownership structure and corporate governance on dividend policy in emerging markets, like India. The study also analyses the moderation effects of board independence between ownership and dividend payout. Design/methodology/approach: The data set of 1,546 Indian firms over the period of 2006-2017 has been used in this study. Tobit and logistic regression methods has been used. The data used in this study are collected from the Centre for Monitoring Indian Economy (CMIE) Prowess database. The sample firms are listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Findings: First, the study finds a significant positive influence of corporate governance on the decision to pay dividend and is an important determinant of the payout decision. Second, the study finds a significant negative relationship of family ownership with dividend payout decisions which indicates that family firms pay lower dividend. Finally, the result from the interaction effect of board independence with family ownership has significant positive influence on dividend policy. Originality/value: This is one of the first attempt to show that there is an interaction between independent board and ownership structure. It shows that more independent and non-executive directors in the board of family controlled firms are likely to pay more dividends. [ABSTRACT FROM AUTHOR]
- Published
- 2019
- Full Text
- View/download PDF
22. Short-Term Integration Dynamics of Developing and Developed Stock Markets: Evidence from India, China, US and European Markets.
- Author
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Rajhans, Rajni Kant and Singh, M. K.
- Subjects
STOCK exchanges ,ECONOMIC shock ,DEVELOPING countries - Abstract
The dynamics of integration is studied in two time frames: short-term and long-term. The focus of this paper is to evaluate the short-term integration dynamics of stock exchanges of India (Bombay Stock Exchange - BSE) and China (Shanghai Stock Exchange - SSE) with US (S&P500) and Europe (FTSE100). Granger Causality Test was used to identify the direction of causality, and impulse response was used to identify the effect of shocks from one market to the other markets. The outputs suggest that BSE Granger-causes FTSE100 and S&P500. But SSE does not Granger-cause S&P500 and FTSE100. This result contradicts the findings of the prior research (Janak Raj and Sarat, 2008), which suggest that Indian stock markets do not Granger-cause US, European and other developed markets. The impulse response of S& P500 to BSE suggests that any shocks from BSE to S&P500 survive for a period of two days. This study would help portfolio managers and investors to view diversification from a new perspective and take advantage of it. [ABSTRACT FROM AUTHOR]
- Published
- 2014
23. CAPITAL ASSET PRICING MODEL AND INDIA STOCK MARKET WITH AUTOREGRESSIVE INTEGRATED MOVING AVERAGE MODEL.
- Author
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Kundu, Amit and Mukhopadhyay, C. K.
- Subjects
STOCKS (Finance) ,CAPITAL ,STOCK exchanges ,INVESTMENTS ,INVESTORS - Abstract
PURPOSE THE objective of this study is to empirically investigate the applicability of CAPM for some selected stocks listed in the Bombay Stock Exchange (BSE) over the period January, 2014 -- August, 2015. More specifically, the study is directed to examine (i) the individual risk premia were directly related to market premia, (ii) the risk-return relation for these stocks were positive as dictated by the CAPM, (iii) the stocks were 'underpriced' or 'overpriced' and (iv) the risk adjusted relative performance of these selected stock with respect to the market. (v) the role of CAPM in the choice of stocks by a rational investor. Design/Methodology/Approach: The Market Model, developed by Sharpe (1964), holds that most shares maintain some degree of positive correlation with market portfolio. When market rises, most shares tend to rise. Sharpe postulated a linear link between a security return and the market return as a whole such that the excess return on a security is linearly and proportionately related to the excess return on the market portfolio. Let us consider a security i with expected return E(R
i ). Then for any risk free return (Rt *) E(Rm ) = Rt * = βi [E(Rmt ) -- Rt *] ... (1) Where E(Ri ) = expected rate of return on security i Rt * = risk free rate of return E(Rm ) = expected rate of return on the market portfolio E(Rit ) = Rt * = the excess of rate of return on security i over the risk free rate of return = the risk premium for the security i E(Rmt ) -- Rt * = the expected rate of market return over the risk free rate = the market premium βi = the sensitivity of the risk premium of the security i to the market premium Therefore, the equation (1) states that the risk premium for any individual security (i) equals the market premium times the corresponding β1 . Thus, according to Sharp's model, the only common factor affecting all securities is the market rate of return. All other factors, like dividend yields, price-earning ratios, quality of management and industrial features bear no separate influence on E(Rit). Findings: The study shows that (a) CAPM held good completely for 13 stocks. So CAPM was not found to be applicable to all the stocks under study. (b) 19 stocks display white noise. For 12 of these stocks CAPM held completely (i.e., α≠0, β≠0) and for 5 of these stocks CAPM held partially (i.e., α≠0, β≠0). (c) 11 stocks display ARIMA (p,o,q) structures of stochastic process. For 10 of these stocks CAPM holds partially (i.e., α≠0, β≠0). However, one of these stocks is found to be supportive of CAPM. (d) 10 stocks with white noise or ARIMA (p,o,q) structures, displaying support for CAPM completely (i.e., α≠0, β≠0) or partially (i.e., α≠0, β≠0) and which excelled both by the Trenor and Sharpe measures, were, 'undervalued' by nature. These are Bharat Petrolium, Cipla Ltd, HDFC, Kotac Mahendra, Larsen, Lupin, Maruti Suzuki Ltd., Punjab National Bank, Asian Paints, Hindustan Unilever. (e) For 5 of the stocks having white noise structures, which excelled both by the Trenor and Sharpe measures, CAPM held completely. Evidently, all these stocks are 'undervalued' . These are Bharat Petrolium, Kotac Mahendra, Punjab National Bank and Asian Paints and Hindustan Unilever. All these stocks are defensive. Research Limitations/Implications: It considers a time period January, 2014 -- August, 2015 for some selected stocks listed in the Bombay Stock Exchange (BSE). Practical Implications: A rational investor may decide to choose a stock with the potentiality of (i) attaining superior risk-adjusted performance in the market (ii) stabilizing the volatility of portfolio which he already possesses and (iii) reaping higher actual rate of returns than expected. In such case, he would choose a 'defensive', 'undervalued' stock. In this case, his choice gets limited to 3 stocks (Cipla, Asian Paints and Hindustan Unilever) with white noise structure for returns. Originality/Value: This study empirically investigates the applicability of CAPM for 30 selected stocks listed in the Bombay Stock Exchange (BSE) over the period January, 2014 -- August, 2015. More specifically, the study is directed to examine if individual risk premia were directly related to market premia, if the risk-return relation for these stocks were positive as dictated by the CAPM, if the stocks were 'underpriced' or 'overpriced' and the role of CAPM in the choice of stocks by a rational investor. [ABSTRACT FROM AUTHOR]- Published
- 2016
- Full Text
- View/download PDF
24. Negotiating Global Finance.
- Author
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Lagerwaard, Pieter
- Subjects
STOCKBROKERS ,FINANCE ,ANTHROPOLOGY ,STOCK exchanges - Abstract
This paper delineates how stockbrokers in Mumbai negotiate (contest, reconcile and appropriate) global finance. In recent years, the social studies of finance have grown profoundly, enhancing our understanding of finance across disciplinary boundaries. However, the way in which global finance is practised by local stockbrokers in non-western financial markets has received minor attention. Even though the Mumbai financial market is comparatively small, it is an instructive case due to a transition of financial practices over the previous two decades. Despite these rapid changes, the Bombay Stock Exchange (BSE), the oldest exchange in India, and its ‘traditional’ brokers remain active and relatively influential. Drawing on present-day experiences as well as historical recollections of BSE stockbrokers, this article shows that global finance is not an unambiguous or predictable force, but instead negotiated and thus actively shaped by local stockbrokers. [ABSTRACT FROM AUTHOR]
- Published
- 2015
- Full Text
- View/download PDF
25. How to obtain high returns with lower volatility in emerging markets?
- Author
-
Agarwal, Nipun and McMillan, David
- Subjects
EMERGING markets ,MARKET volatility ,ECONOMIES of scale ,STOCK exchanges - Abstract
Emerging markets equity indexes are usually seen as high return with a high degree of volatility associated with them. However, this should not be the case, if you choose high-quality firms that have increasing returns and lower volatility. The intent of this paper is to introduce the risk weighted alpha (RWA) indexation method that helps identify stocks that have stable increasing returns with lower volatility. In order to review this method in the context of emerging markets scenario, this paper takes the example of the Sensex index listed on the Bombay Stock Exchange (BSE) that comprises India's top 30 stocks by market capitalisation. Results show that some stocks like Hindustan Lever do show increasing returns and lower volatility. The RWA Sensex index outperforms the BSE Sensex index, while still maintaining a beta that is the same as that in the BSE Sensex index. [ABSTRACT FROM AUTHOR]
- Published
- 2014
- Full Text
- View/download PDF
26. Testing Weak Form of Efficiency Hypothesis for Indian Stock Market.
- Author
-
Kaur, Manjinder and Dhillon, Sharanjit S.
- Subjects
STOCK exchanges ,MARKET volatility ,AUTOCORRELATION (Statistics) ,MUTUAL funds - Abstract
The present paper is aimed at checking weak form of efficiency hypothesis for Indian stock market by using daily data for Bombay Stock Exchange, Sensitive Index (sensex) for the period July 1, 1991 to Dec. 29, 2006. The Indian stock market indicated efficiency as random walk hypothesis for sensex is accepted. The results of variance ratio test and unit root test are similar and accept the random walk for Indian stock market but the results from autocorrelation and Ljung Box (Q
LB ) test reject the hypothesis of random walk. Since variance ratio test is more powerful than the other tests performed in the study, we go by the results of variance ratio test. The volatility persistence is due to the asymmetry in the availability of publicly available information other than historical prices of stock indices and private information, which is generally withheld by select groups such as mutual funds, management, financiers and stock exchange officials. [ABSTRACT FROM AUTHOR]- Published
- 2011
27. Value and Contrarian Investment Strategies: Evidence from Indian Stock Market.
- Author
-
Jagirdar, Sharneet Singh and Gupta, Pradeep Kumar
- Subjects
FINANCIAL markets ,STOCK exchanges ,PORTFOLIO management (Investments) ,INVESTORS ,INVESTMENT policy ,VALUE investing (Finance) - Abstract
Value and contrarian investment strategies are two basic approaches which are widely used by investors worldwide. Both value and contrarian investment strategies are assumed to pick the same stocks even though the approach to picking the stocks is different. Furthermore, both investment strategies are supposed to work in various forms of market efficiency. The present study aims to empirically review and analyze the investment strategies, value and contrarian, by creating a portfolio of returns of listed stocks in India's Bombay Stock Exchange (BSE) over a period from 1990–91 to 2018–19. A Venn diagram is used to explain the selection of stocks under both investment strategies with analysts' forecast recommendations. The findings show that value and contrarian investment strategies essentially select different stocks at any given point in time. Moreover, the study finds that both investment strategies can work in the same form of market efficiency. This study brings new insights to scholars, analysts, and investors for analyzing investment strategies and their portfolio composition. [ABSTRACT FROM AUTHOR]
- Published
- 2023
- Full Text
- View/download PDF
28. Board characteristics, ownership concentration and SME IPO underpricing.
- Author
-
Arora, Nischay and Singh, Balwinder
- Subjects
ABNORMAL returns ,STOCK exchanges ,EMERGING markets ,GOING public (Securities) ,REGRESSION analysis ,INVESTOR protection - Abstract
Purpose: This study aims to explore the moderating impact of governance structure, that is, board characteristics including board size, board independence, board committees and ownership structure like ownership concentration, on the underpricing of small- and medium-sized enterprise (SME) initial public offerings (IPOs) in the context of an emerging economy such as India. Design/methodology/approach: Using a sample size of 403 SME IPOs listed on Bombay Stock Exchange SME platform and National Stock Exchange EMERGE, this study uses moderated hierarchical regression analysis to investigate these relationships. Findings: The findings highlighted that board independence, board committees and ownership concentration negatively influence underpricing measured using market-adjusted excess returns. While analysing the moderating relationship, this study finds that ownership concentration positively moderates the relationship between board independence and underpricing, as well as the relationship between board committees and IPO underpricing. Research limitations/implications: This study is limited to a single country only. Although perfectly suitable for our research inquiry, it is imperative to check the validity of the findings by extending it to other emerging countries with similar socio-economic characteristics. Furthermore, this study tested the hypotheses concerning three board characteristics only. Hence, it could be extended to explore additional governance characteristics for a more comprehensive understanding. Practical implications: This study provides a foundation for managers to adopt a fine-grained approach to effectively design the board structure ahead of an IPO event. Additionally, the findings may assist policymakers in formulating various policies and guide regulators in regulating the limit on ownership held by various shareholders to prevent their opportunism. The results of this study may further advise potential investors interested in SME IPO firms to critically consider the ownership concentration as a driving factor when scrutinizing their investment portfolios. Originality/value: This study is unique as it advances the debate on the importance of a governance characteristic, that is, ownership concentration, as a moderating variable in the underexplored context of IPO underpricing of small- and medium-sized firms in India. [ABSTRACT FROM AUTHOR]
- Published
- 2023
- Full Text
- View/download PDF
29. The Dynamic Connectedness between Risk and Return in the Fintech Market of India: Evidence Using the GARCH-M Approach.
- Author
-
Bhatnagar, Mukul, Özen, Ercan, Taneja, Sanjay, Grima, Simon, and Rupeika-Apoga, Ramona
- Subjects
MARKET volatility ,FINANCIAL technology ,PORTFOLIO management (Investments) ,STOCK exchanges ,MARKET prices ,INVESTMENT advisors - Abstract
Fintech allows investors to explore previously unavailable investment opportunities; it provides new return opportunities while also introducing new risks. The aim of this study is to investigate the relationship between risk and return in the fintech industry in the Indian stock market. This article is based on market-based research that focuses on demonstrating the volatility in the fintech market's prices and demystifying the opportunities. Secondary data were collected from the Bombay Stock Exchange's official fintech industry website from January 2017 to July 2022 to determine whether there is any dynamic link between risk and return in the Indian fintech market. The variance-based Mean-GARCH (GARCH-M) model was used to determine whether there is a dynamic link between risk and return in the Indian fintech market. The findings emphasize the importance of taking the risk of investing in India's fintech industry. The implications for stock investors' and fund managers' portfolio composition and holding periods of equities or market exposure are significant. Finally, depending on their investment horizons, the Indian fintech industry may yield significant profits for risk-taking individuals. [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF
30. An overview of Indian stock market and its efficiency.
- Author
-
Mishra, Ramkrushna and Gupta, Neha
- Subjects
STOCK exchanges ,GOVERNMENT policy ,BUSINESS models ,STANDARD & Poor's 500 Index - Abstract
The Indian stock market nation investment must share and stock market the owners for broker commission annual income based 2 or 5 % giving in money. The Indian capital soared demand is gold has proved to be very attractive investment opportunity. Then input or output physically in the doing it. But now is online process in inflation and investment GDP, export, import, positive. we are over viewing the Indian stock market and its efficiency. When we talk about Indian stock markets, most of the people who invest have only heard of two stock exchanges in India - the Bombay Stock Exchange (BSE) and the National Stock Exchange.A blue chip is a nationally recognized, well-established, and financially excellent company. Blue-chip companies are aware of the weather fall and operate profitably in the face of adverse economic conditions, which contribute to a long record of sustainable and reliable growth. Simple collections of poker chips include white, red and blue chips, tradition says that the value of the blues is very high. If a white chip is worth $ 1, a red is usually worth $ 5, and a blue is $ 25. Tesla is officially a blue-chip stock. Electric Vehicle Company S&P 500, U.S. The company that joins the stock market index and oversees the benchmark announced on Monday. Companies operate primarily with the aim of making profits, and they continue to strive to further develop these profits. However, it is the various strategies and decisions they take in this process that shape the path to growth. This factor distinguishes good companies from bad companies and makes a profit from non-profits. Profitable ones bring significant returns to their shareholders. The growth of a company comes not only with the scale but also with the efficiency of the operations, which is a gradual process. Strategies taken by management create or break the path to growth, and we as investors should always study the business model of a company. It is essential to have a macro perspective when running a business and keep in mind various factors such as government policy, interest rates, shareholder claims (including debt and shareholders). [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF
31. Disclosure of Intellectual Capital: Evidence from Indian Annual Reports.
- Author
-
Singhal, Soumya, Gupta, Seema, and Gupta, Vijay Kumar
- Subjects
INTELLECTUAL capital ,CORPORATION reports ,HUMAN capital ,VALUE creation ,STOCK exchanges ,INTEGRATED circuits industry - Abstract
The shifting of the economy from manufacturing-based to knowledge-based has raised the importance of Intellectual Capital (IC) in the business value creation process. Although IC has been recognized in integrated reports, limited information about it is still reported in traditional financial disclosures. The present study examines the extent of intellectual capital disclosure (ICD) in Indian firms and assesses the gap between stakeholder expectations and industry disclosure procedures. For this purpose, content analysis has been performed on a sample of 30 non-financial firms listed on the Bombay Stock Exchange (BSE) for the year 2019-2020 by constructing a disclosure index of 42 items based on previous studies, under the three categories of IC, namely, structural capital, relational capital, and human capital. The results reveal that the overall disclosure of intellectual capital by Indian firms is low. The companies disclose only 42% of the Intellectual Capital items. Further, it is found that maximum number of companies are disclosing structural capital, while human capital disclosure obtains the minimum score. The results imply the need to develop a proper framework for reporting intangibles in the annual statements of organizations in India. [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF
32. Impact of Elimination of Dividend Distribution Tax on Indian Corporate Firms Amid COVID Disruptions.
- Author
-
Agrawal, Anshu
- Subjects
CONSERVATISM (Accounting) ,DIVIDENDS ,COVID-19 ,DIVIDEND policy ,FREE cash flow ,STOCK exchanges ,CORPORATE taxes ,FINANCIAL performance - Abstract
Economic fallouts from COVID-19 have been unprecedented across all industries, with a handful of exceptions. The present study attempts to capture the impact of dividend distribution tax elimination, introduced through the Indian Finance Act 2020, on corporate dividend behavior in India. It explores the determinants of dividend payouts, changing payout decisions, dividend behavior of regular payers, and the prevalence of factors associated with changing payouts. Out of the top 1000 firms, based on their market capitalization at the Bombay Stock Exchange, 509 non-financial firms pursuing consistent dividend payments from 2015 to 2019 are analyzed. The study also examines the dividend behavior of regular payers exhibiting a stable or step-up payout from 2015 to 2019. COVID's impact on the firm's financial performance and sentiments seems to dominate, suppressing investors' expectations of enhanced payouts associated with dividend distribution tax advantages, with considerable reductions in payouts and omissions shown by regular and irregular payers in 2020 and 2021 vis-à-vis the preceding years. The findings signify that the dividend payouts of sample firms are positively associated with the firms' size, MBV ratio, and past dividends, and negatively allied with free cash flows and the EBITDA margin. Regular payers are observed to be more sensitive to past dividends. The study lends credence to the conservatism and prevalence of signaling and catering theories in the dividend behavior of Indian corporate firms. [ABSTRACT FROM AUTHOR]
- Published
- 2021
- Full Text
- View/download PDF
33. Trends and Patterns in Indian Board Structure.
- Author
-
SONI, TARUN K. and ARORA, AKSHITA
- Subjects
CORPORATE governance ,REGULATORY reform ,STOCK exchanges ,ONE-way analysis of variance ,AGE groups - Abstract
The board structure of Indian companies has witnessed a sea change in terms of its size and composition. Our study presents the trends and patterns in board characteristics for the last two decades for the top 500 companies listed on the Bombay Stock Exchange. We have made an attempt to measure variations across different sectors, age groups, and time periods in the mean values of variables by using one-way ANOVA. The differences between mean values and variances of board characteristics have been examined for two different time periods (2002-2010 and 2011-2019) using paired t-test. The contribution of our study is the comprehensive analysis of board trends suggesting significant differences in board size and composition across different sectors and time periods. The significant differences across different sectors also highlight heterogeneity among different sectors which should be taken into account while formulating different policies related to corporate governance. The regulatory reforms can be treated as crucial milestones towards developing stronger corporate governance mechanisms in India and regulators may deliberate on taking the reforms to the next level. Further, future scholars may ponder over the company's strategic choices being followed for the functioning of their internal governance mechanism. [ABSTRACT FROM AUTHOR]
- Published
- 2021
- Full Text
- View/download PDF
34. An Analytical study of Financial Ratios and their effect in EPS on Cement Companies in India.
- Author
-
Sengupta, Ashok and Singh, Gajraj
- Subjects
CAPITAL structure ,STOCK exchanges ,STOCKHOLDER wealth ,CEMENT ,CEMENT industries ,FINANCIAL ratios ,EARNINGS per share ,SAMPLE size (Statistics) - Abstract
The cement industry has a massive contribution to India's GDP and infrastructure development. Due to the demand of cement, new companies from outside also started functioning in our country, but these industries face several problems. Companies are closed or merged due to a lack of financial sustainability and capital structure problems. The study is based on the effect of capital structure on shareholder's value. In this study as a researcher, it has been tried to study and find out the relation of ROA, ROE, leverage ratios, and correlation with EPS. The sample size is five companies from the BSE list (Bombay Stock Exchange), and the last five years of data are studied. As the cement industry is capital-centric, this study will help the industry understand the facts that fulfill the financial objectives. [ABSTRACT FROM AUTHOR]
- Published
- 2021
- Full Text
- View/download PDF
35. DETERMINANTS OF DIVIDEND PAYOUT DECISIONS OF ORIGINAL EQUIPMENT MANUFACTURERS FROM INDIAN AUTOMOBILE INDUSTRY.
- Author
-
Kaur, Navleen
- Subjects
ORIGINAL equipment manufacturers ,DIVIDEND policy ,AUTOMOBILE industry ,STOCK exchanges ,DIVIDENDS ,REGRESSION analysis - Abstract
The purpose of this study is to identify and analyze the variables that significantly affect dividend payout decisions of Original Equipment Manufacturers (OEMs) from Indian automobile industry listed on the Bombay Stock Exchange (BSE). Analysis is based on balanced panel data with 180 observations of 12 companies over a period of 15 years i.e. from 2003-04 to 2017-18. Descriptive analysis, correlation analysis, and static panel data regression analysis including regression diagnostics have been used as statistical tools to achieve the purpose of the study. STATA software was used to analyze the data in the present study. The findings indicate that the significant determinants of dividend payout decisions of sample companies during the study period were profitability, size, book value per share, tangibility of assets, leverage and price earnings ratio. The findings of the study support various theories of dividend policy viz. Signalling, Pecking Order, and Transaction Cost. As per authors’ knowledge, this is the first study focusing on the determinants of dividend payout decisions of OEMs in India using the data from 2003-04 to 2017-18. The empirical findings of the present study will provide useful insight pertaining to dividend payout decisions to various stakeholders of different companies and will also be helpful to the future researchers. [ABSTRACT FROM AUTHOR]
- Published
- 2021
- Full Text
- View/download PDF
36. Market Adaptability and Evolving Predictability of Stock Returns: An Evidence from India.
- Author
-
Bhuyan, Biswabhusan, Patra, Subhamitra, and Bhuian, Ranjan Kumar
- Subjects
EFFICIENT market theory ,STOCK exchanges ,MARKETS ,EMERGING markets - Abstract
This study attempts to examine the adaptive market hypothesis and evolving predictability of stock returns using four decades of daily data from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India. The recent developed automatic portmanteau ratio (AVR) and wild bootstrap automatic variance ratio (WAVR) test are used for analysis. We also estimate both the AVR and WAVR statistics in the rolling window framework to examine evolving predictability. The results revealed that BSE and NSE are informationally inefficient in the weak-form. The results of rolling window analysis suggested that the degree of predictable patterns evolves over the period due to global and regional economic and non-economic events. Further, the study compare which stock market is more efficient and found that NSE is more efficient than BSE. The findings of this study provide essential inputs to investors on trading strategies in dynamic economic situations and policymakers to formulate an appropriate policy that can make the Indian stock markets efficient. [ABSTRACT FROM AUTHOR]
- Published
- 2020
- Full Text
- View/download PDF
37. Market turns tricky.
- Author
-
Roongta, G. S.
- Subjects
STOCK exchanges ,SECURITIES trading ,FINANCIAL markets ,EFFICIENT market theory - Abstract
The article offers updates on the status of the Bombay Stock Exchange (BSE Sensex) as of June 3, 2013. BSE Sensex was reduced from 20444.61 to 19568.49 in the week that ended on May 24, 2013. The author comments that it is the highest weekly fall so far, and left experts wondering about the change in the market direction.
- Published
- 2013
38. Herding Behavior and Market Conditions: Empirical Evidence from Bombay Stock Exchange, India.
- Author
-
Goel, Payal
- Subjects
STOCK exchanges ,BEHAVIOR ,MARKETING models ,MARKETS ,EVIDENCE - Abstract
The study seeks to investigate how market participants behave, with special reference to herd behavior wherein investors imitate the investment patterns of their fellow investors. It further explores the magnitude of such behavior not only during normal circumstances, but also during severe upswings and intense downturns, with special focus on the Indian stock market. Two most extensively time-honored models given by Christie and Huang (1995) and Chang et al. (2000) have been applied to examine the herding component by scrutinizing the wide dispersions of the security returns as regards the standard market model on a large dataset of monthly returns of BSE 500 index for a period of 18 years, i.e., from April, 2000 to March, 2018. The study found absence of herding behavior in the Indian stock market. [ABSTRACT FROM AUTHOR]
- Published
- 2019
39. The Value Relevance of Corporate Voluntary Disclosure: Evidence from India.
- Author
-
Saha, Rupjyoti and Kabra, K. C.
- Subjects
ORGANIZATIONAL ideology ,MARKET capitalization ,PANEL analysis ,CAPITAL market ,STOCK exchanges - Abstract
The purpose of this study is to examine whether or not voluntary disclosure made by Indian listed companies are value-relevant in the capital market. The sample consists of top 100 non-financial, non-utility companies based on market capitalization listed on the Bombay Stock Exchange (BSE) over the period 2014-2017. Data regarding voluntary disclosure level has been collected by analyzing the contents of annual reports. In order to investigate the impact of voluntary disclosure on firm value, fixed-effect panel data regression model is employed. Furthermore, Two Stage Least Squares (2SLS) regression model with instrumental variables is used as a robustness test to alleviate the endogeneity issue. The findings of the study reveal that voluntary disclosure is value-relevant, i.e., impacts the firm value. The more the voluntary disclosure made by the companies, the higher the value they have in terms of market capitalization. Therefore, this finding provides impetus to managers to disclose more information voluntarily to meet the information needs of the stakeholders. By evaluating the value relevance of overall voluntary disclosure, the study contributes to the relevant literature, as there is paucity of studies regarding how the market participants perceive voluntary disclosure in an emerging market such as India, which is subjected to market imperfections. [ABSTRACT FROM AUTHOR]
- Published
- 2019
40. Does Ownership Structure Affect Firm Performance in an Emerging Market? The Case of India.
- Author
-
Panda, Brahmadev and Bag, Dinabandhu
- Subjects
EMERGING markets ,STOCK exchanges ,INSTITUTIONAL investments ,FINANCIAL performance ,PANEL analysis - Abstract
Research aim: This study aims to examine the impact of ownership structure (ownership concentration and identities) on the financial and market performance of Indian listed firms, post the US financial crisis 2008. Design/Methodology/Approach: This study is based on a six-year financial dataset of 100 Bombay Stock Exchange (BSE) listed firms, from FY 2009-10 to FY 2014-15. The study applies the static panel data model (pooled OLS, fixed effect and random effect) and the dynamic panel data model (two-step generalised method of moments) for the hypotheses testing. Research findings: This study finds that in the case of ownership concentration, large owners have no link with the financial performance. However, they have an adverse impact on the market performance. The presence of promoters, domestic institutions and foreign institutions appears to boost the financial performance, whereas the foreign institutional investment seems to enhance the market performance. Theoretical contribution/Originality: The major contributions of this study are the two dimensions of ownership concentration (large owners) and identity (types of owners) being considered as ownership structure, the use of the dynamic panel models to check for the endogeneity issue and the post US financial crisis analysis derived from this study. All of these contribute to the impact of ownership volatility and performance variation in the context of India, thereby making this study a novel one. Policy implications: Policymakers should consider developing more lucrative policies so as to encourage institutional investors to invest in the Indian market. This is because domestic and foreign institutional owners are central to the enhancement of both the corporate financial and market performance. Further, corporate executives should aim to prevent inefficiencies so as to safeguard the interest of large owners. Research implications/Limitations: This study has used ownership structure as one of the essential governance mechanisms. Future research may consider other mechanisms like board structure or CEO duality. [ABSTRACT FROM AUTHOR]
- Published
- 2019
- Full Text
- View/download PDF
41. Signal irrelevance of corporate governance practices during Initial Public Offerings in India.
- Author
-
Handa, Rekha, Singh, Balwinder, and Sharma, Sharad
- Subjects
GOING public (Securities) ,CORPORATE governance ,CAPITAL market ,STOCK exchanges ,SIGNAL theory - Abstract
A sample of initial public offerings (IPOs) of firms listed on the Bombay Stock Exchange between April 2003 and March 2014 has been used to investigate the relevance of corporate governance in the post-IPO capital market performance. Signal theory has been used to understand the phenomenon of post-IPO capital market performance vis-à-vis signal cast by corporate governance attributes. The study finds investors ' indifference to governance mechanism put in place by IPO-firms in compliance with the listing requirements. The outcomes of the study provide essential feedback for IPO-firms and the Security Exchange Board of India, the Indian capital market regulator. [ABSTRACT FROM AUTHOR]
- Published
- 2018
42. The Relationship Between Ownership Types and Corporate Governance and Disclosure Practices of Firms Listed on Indian Stock Exchange.
- Author
-
Madhani, Pankaj M.
- Subjects
CORPORATE governance ,BUSINESS enterprises ,STOCK exchanges ,STOCKHOLDERS - Abstract
Corporate governance is an institutional arrangement that not only addresses the agency problem between shareholders and managers of the firm, but also provides the context for the decisions taken by the top management of the firm. In this context, the main question is whether ownership types influence corporate governance practices of firms. This research empirically studies corporate governance and disclosure practices of firms segregated according to types of ownership, i.e., foreign firms, private sector firms and public sector firms. Such firms are diverse entities with different management philosophy, responsibility and structure. This research focuses on firms across various sectors listed on Bombay Stock Exchange (BSE) and seeks to identify whether corporate governance and disclosure practices of foreign firms, private sector and public sector firms are significantly different. The research also emphasizes the salient features of firms according to ownership types. The findings shed light on the governance and disclosure practices of firms segregated according to ownership types in the legal and institutional environment of India. [ABSTRACT FROM AUTHOR]
- Published
- 2016
43. Corporate Governance and Disclosure Practices of Indian Firms: An Industry Perspective.
- Author
-
Madhani, Pankaj M.
- Subjects
CORPORATE governance ,DISCLOSURE ,LONG-term business financing ,STOCK exchanges - Abstract
Corporate governance stands for responsible business management geared towards long-term value creation. Good corporate governance is a key driver of sustainable corporate growth and long-term competitive advantage. It focuses on a company's structure and processes to ensure fair, responsible, transparent and accountable corporate behavior. This study attempts to examine the impact of the nature of sector or industry on corporate governance and disclosure practices of firms by identifying and testing the empirical evidence for such relationship for firms listed on the Bombay Stock Exchange (BSE) in the form of S&P BSE sector indices. The sample firms represent different sectors, like auto, metal, oil and gas, consumer durables, capital goods, FMCG, healthcare, IT, and power. The findings reveal that no significant correlation exists between the industry type and the level of disclosure in the Indian context. [ABSTRACT FROM AUTHOR]
- Published
- 2014
44. Sensex 26100 level is critical.
- Author
-
Vasudeo, Hitendra
- Subjects
STOCK exchanges ,INDIAN economy ,BANKING industry - Abstract
The article provides an overview of the state of the Indian Stock market as of October 2014. Topics discussed include the level of the Bombay Stock Exchange Sensitive Index (BSE Sensex), correction in BSE Mid Cap Index, and resumption of correction phases in BSE Bankex. Also cited are some strategies of traders to prevent Sensex loss at 26100.
- Published
- 2014
45. Stock Market Efficiency and Common Stochastic Trends: A Case of NSE and BSE.
- Author
-
Srinivasan, P.
- Subjects
STOCK exchanges ,ECONOMIC equilibrium ,ARBITRAGE - Abstract
Johansen's cointegration and Vector Error Correction Model (VECM) are employed to examine the integration and causality between the two dominating Indian stock markets: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The daily closing prices of NSE S&P CNX Nifty and the BSE Sensex indexes are used. Database from July 1, 1997 to August 31, 2010, comprising a total of 3,244 observations are considered. The analysis reveals the existence of market integration between the BSE and NSE. The study further confirms a bidirectional relationship between the two markets and that they strongly influence each other. Besides, the empirical results of VECM ensure the existence of speed of adjustment process to the previous period's deviation (short-run disequilibrium) from long-run equilibrium between the BSE and NSE via the process of arbitrage. The present study suggests that correction to long-run equilibrium allows systematic profits to be obtained in the short run. Whilst this disequilibrium behavior describes short-run market inefficiency, the consequent arbitrage activity moves the two major Indian stock markets-the BSE and NSE-toward long-run equilibrium (in levels), and this is consistent with market efficiency in the long run. Thus, market inefficiency in the short run ensures market efficiency in the long run. [ABSTRACT FROM AUTHOR]
- Published
- 2011
46. Trade-Off between Risk and Return.
- Author
-
VIJ, MADHU and TAMIMI, MOHAMMAD
- Subjects
INVESTMENTS ,INVESTORS ,STOCK exchanges ,STOCKS (Finance) - Abstract
Two fundamentals, which affect the investment decisions of a rational investor, are risk and return. The study examines the application of CAPM in estimation of the systematic risk and expected returns of a sample of Bombay Stock Exchange listed sixty stocks. All the stocks are from Drug industry with different market capitalization and the sample period ranges from 2001 through 2007. The research methodology involves the use of regression for estimation of the alpha and beta value of the stocks and portfolios. Further 't' test and 'z' test are used to test the statistical reliability of the stocks and portfolios parameters. The study holds CAPM good in Indian stocks market in explaining the systematic risk of the Drug stocks and establishing the trade off between risk and return. It reports the linear and propotional relationship between portfolio risk and portfolio return in the line of CAPM postulation. [ABSTRACT FROM AUTHOR]
- Published
- 2010
47. Bull trend till Budget.
- Author
-
Roongta, G. S.
- Subjects
STOCK exchanges ,ELECTIONS ,POLITICS & government of India, 1977- ,BULL markets ,INVESTOR confidence - Abstract
The article reports on the trend of the stock markets in India following the election results on February 10, 2015. Topics discussed include the victory of the Aam Admi Party (AAP), the recovery of the Bombay Stock Exchange Ltd. (BSE) Sensitive Index (Sensex), and the impact of a bull market on investor confidence. Also mentioned is information on the stocks in the mid-cap and small-cap categories including Graphite India Ltd., Tata Global Beverages Ltd., and Bajaj Holdings & Investment Ltd.
- Published
- 2015
48. Index momentum restored.
- Author
-
Vasudeo, Hitendra
- Subjects
STOCK exchanges ,STOCK price indexes - Abstract
The article offers information on the continuous growth of India's S&P Bombay Stock Exchange Sensitive Index (SENSEX).
- Published
- 2014
49. India sets ball rolling on IPOs of two stock exchanges.
- Author
-
Loh, John
- Subjects
GOING public (Securities) ,STOCK exchanges ,INDIAN economy, 1991- - Abstract
India's securities regulator finally gave the thumbs up to the listing of its two stock exchanges this week, a project that has been in the works since the turn of the century. The move is a huge milestone, and market watchers hope it will give the bourses more clout to stay on top of their game, writes John Loh. [ABSTRACT FROM AUTHOR]
- Published
- 2015
50. Correction halted: Expect peak to be tested.
- Author
-
Vasudeo, Hitendra
- Subjects
STOCK exchanges ,STOCKS (Finance) ,MID-capitalization stocks ,SMALL capitalization stocks ,INVESTORS - Abstract
The article reports on the improvements in the stock exchange of Bombay Stock Exchange (BSE) Sensex in India in December 2013. Topics covered include the closure of the stock exchange as well as the strong weekly movement of the economy. Also mentioned are the weekly resistance in the market and the selection of mid cap and small cap stocks by investors in India.
- Published
- 2013
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