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Purpose: Timely access to reasonably priced financing is critical to promote and sustain small and medium sized businesses (SMEs). This study aims to examine the role of the newly constituted SME exchanges in funding the growth of Indian SME firms. The impact of obtaining public equity capital on the firm's growth prospects, capital structure and credit profile is the focus of this paper. In addition, this study compares the cost and speed of raising capital on specialised SME exchanges to the main board. Design/methodology/approach: To examine the impact of raising public equity capital, this study uses a difference-in-difference (DID) regression analysis. SMEs that raised financing on the SME exchange between 2013 and 2018 make up the treatment sample. This study uses a propensity score matching technique to find the control group from a sample of unlisted enterprises to reduce the likelihood of selection bias. Findings: This study finds that SME profitability drops after an initial public offering (IPO), which is consistent with previous research. This study also discovered that after a company is listed, its total debt falls. This study also shows that after the IPO, there is no change in the borrowing costs of SME enterprises. Finally, this study finds an evidence of a decline in sales growth following the IPO, implying that the firms use the IPO money to rebalance their accounts after a period of heavy investment rather than for growth finance. Originality/value: A thriving and efficient equity financing market for SMEs has the potential to establish itself as a viable alternative to the existing dominant bank financing option. To the best of the authors' knowledge, this research is the first to examine the role of SME exchanges in the funding of Indian SME firms. [ABSTRACT FROM AUTHOR]

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]

The novel Corona Pandemic has put the world trade and economy in a great crisis. No country is free from the jaws of the deadly virus. It not only causing huge forfeiture of human life but also inducing economic disaster, with a halt in production, a crumble in consumption and a magnified unreliability in stock exchanges. The Covid-19 has severely disrupted the global supply chain system. All the sectors like aviation, tourism, retail, capital markets, oil and particularly Micro, Small and Medium Enterprises (MSMEs) are the most affected with negative repercussion. In the global view, the small businesses are the most sufferers than the big ones as they are vulnerable with lesser resources to redesign to the new social change. The main purpose of this article is to study the present status of Micro, Small and Medium Enterprises (MSMEs) of India and its sustainability amid this pandemic. It will notably discuss the impacts of Covid-19 on this sector and the initiatives taken to regenerate this sector. The study will be based on reviewing the available literatures considering research papers, reports and policy documents. This article comes forward with applicable recommendations for MSMEs facing this epidemic in India. [ABSTRACT FROM AUTHOR]

The world has become a global economic village. It has become necessary that the financial statements are prepared in a universal language. Due to the global nature of capital markets the need for a common set of accounting standards is being required by majority of investors. Convergence of IFRS (International Financial Reporting Standard) is one of the major change Indian companies are awaiting. Convergence to IFRS will facilitate Indian companies lower down the cost of raising funds, reduce accountants' fees and enable faster access to all major capital markets. It will also enable entities to establish objectives on the basis of global economic changes. This will eliminate the need for multiple reports and significant adjustment for preparing consolidated financial statements or filing financial statements in different stock exchanges. With the growth of Indian Economy and increasing integration with the global economies, Indian corporates are raising capital globally. Under the circumstances, it would be imperative for Indian corporates to adopt IFRS for their financial reporting. In India, the momentum of adopting the IFRS started way back in 2006. The accounting regulator of India, Institute of Chartered Accountants of India (ICAI) has laid down a road map for convergence into IFRS in a phased manner. Present paper gives an insight in to the various aspects of International Financial Reporting Standards. [ABSTRACT FROM AUTHOR]

This paper studies the feasibility of rainfall risk market in India. Perceptional studies on feasibility of creation of rainfall risk market are essential to understand the ecosystem of our capital markets to design, develop and trade rainfall-risk products like rainfall futures and options. The study is exploratory in nature because no research has been done on the feasibility of rainfall risk market based on stakeholders'/experts' perceptions. It is based on the primary data collected through a structured questionnaire and circulated among the selected sample of 208 respondents. The respondents are academicians, executives working in insurance/reinsurance companies, professionals working in commodity/stock exchange, stockbroking, and practicing CA/CMA/CS/CFA professionals. The findings indicate that there exists scope for creating rainfall risk markets in India. However, creating awareness amongst the stakeholders is a prerequisite for creation of such markets. The results of the study are likely to chart a road map that lays down a clear path for design and development of rainfall risk markets. [ABSTRACT FROM AUTHOR]

The capital market responds to precedent and unprecedented events. These events play an important role in market efficiency. The purpose of this paper is to elaborate the state of the stock market due to the recurring landslides in the Uttarakhand region in India. This study will help to determine the loss faced by the companies in the Indian stock market. Hence, analysing the "shock due to the natural disaster" in the stock market is an important issue. The study is based on secondary sources of information about various landslides in India. To calculate the "shock due to the natural disaster" in the stock market, we have employed event study methodology to measure this impact. The paper finds that a negative shock is brought by this catastrophic disaster on the Indian stock market. The impact of this shock is on each and every industry in the market; however, the most significant impact is felt by the top companies in the various industries. The market has shown a negative trend in its abnormal returns on and after the event day. Conversely, as the news of relief programmes were released by the government after three or four days, the market again started becoming normal. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of this paper is to examine the long-run relationship between the Indian capital markets and key macroeconomic variables such as interest rates, inflation rate, exchange rates and gross domestic savings (GDS) of Indian economy. Design/methodology/approach - Quarterly time series data spanning the period from January 1995 to December 2008 has been used. The unit root test, the co-integration test and error correction mechanism (ECM) have been applied to derive the long run and short-term statistical dynamics. Findings - The findings of the study establish that there is co-integration between macroeconomic variables and Indian stock indices which is indicative of a long-run relationship. The ECM shows that the rate of inflation has a significant impact on both the BSE Sensex and the S&P CNX Nifty. Interest rates on the other hand, have a significant impact on S&P CNX Nifty only. However, in case of foreign exchange rate, significant impact is seen only on BSE Sensex. The changing GDS is observed as insignificantly associated with both the BSE Sensex and the S&P CNX Nifty. The paper, on the whole, conclusively establishes that the capital markets indices are dependent on macroeconomic variables even though the same may not be statistically significant in all the cases. Originality/value - This study emphasises on the impact of macroeconomic variables on the stock market performance of a developing economy, whose performance is measured by these variables. [ABSTRACT FROM AUTHOR]

This paper examines the stability of the day of the week effect in returns and volatility at the Indian capital market, covering the period January 1991-September 2000. The paper specifies a generalized autoregressive conditional heteroscedasticity (GARCH) model on returns and introduces separate dummies for days in alternate weeks in the specification of both the mean and the conditional variance to examine the robustness of the day of the week effect in return and in volatility within a fortnight. Results are compared to those based on ordinary least squares (OLS) procedure to examine how erroneous the inference on day-level seasonality could be when the aspect of volatility is ignored. The paper finds evidence in favour of significant positive returns on non-reporting Thursday and Friday, in sharp contrast to the finding of significant positive returns only on non-reporting Monday by OLS procedure. Separate subperiod analyses reveal that there have been changes in daily seasonality in both returns and volatility since the mid-1990s at the Indian capital market, manifested in the opposite signs and changes in the level of significance of some similar coefficients across periods. These findings on the day of the week effects along with its variation within a fortnight suggest that stock exchange regulations and the nature of interaction between the banking sector with the capital market could possibly throw valuable insights on the origin of the day of the week/fortnight effect in returns, while interexchange arbitrage opportunities due to differences in settlement period could lead to a seasonality in volatility. [ABSTRACT FROM AUTHOR]

This paper presents an empirical analysis of the relationship between trading volume and stock return volatility in the Indian stock market. The initial analysis focus upon the volume-price change relationship. The relationship between price change and trading volume, irrespective of the direction of the price change, is significant across three alternative measures of daily trading volume for the aggregate market and individual stocks. Furthermore, evidence is found supporting the hypothesis that the volume-price change slope for negative returns is smaller than the slope for positive returns, thereby supporting an asymmetric relationship. Trading volume is then examined in the context of conditional volatility using a GARCH framework. The findings show a reduction in the significance and magnitude of the conditional variance equation coefficients, and a reduction in the persistence of variance when trading volume is added as an exogenous variable. Hence, there is prima facie evidence that if trading volume proxies for the rate of information arrival, then ARCH effects and much of the persistence in variance can be explained. [ABSTRACT FROM AUTHOR]

Purpose – Indian initial public offering (IPO) market has witnessed huge fluctuations in the post-Securities Exchange Board of India era. Although several new issues have entered the market during this period, only a few of them have managed to survive well. A lot of researchers have examined the aftermarket performance of such IPOs; however the phenomenon of IPO’s survival has remained a neglected issue in India. Hence, the need arises to investigate the factors behind the success and failure of new issues in the market. The purpose of this paper is to critically analyze the journey of IPOs in terms of their survival in the aftermarket. Design/methodology/approach – This study examines the survival profile of 3,374 IPOs in India from 1992 to 2011 across the issue, market and company-specific variables using “Logistic Regression” and “Survival Analysis” methodologies. Findings – The study reveals that IPOs of older firms, backed by reputed lead managers and with high demand are more likely to survive longer, whereas IPOs with high initial returns, higher risk and more delay in listing are less likely to survive longer in the market. Further, it has been found that increase in the size of IPOs accelerates their survival duration whereas high market level as well as high IPO activity decelerates such duration on the exchange. The survival probability and the duration of IPOs are negatively affected in case of agriculture, administration and support activities sectors, whereas positively affected in case of mining, construction, wholesale and retail, accommodation, information and communication, finance and insurance, and others sectors. Practical implications – The findings of this study have fruitful implication for the issuers, investors and the regulators as they can evaluate the future prospects of IPOs and can take the rational decisions accordingly. Originality/value – The study provides new evidences of the influence of certain factors on the subsequent survival of newly listed issues which has not been extensively explored in India. [ABSTRACT FROM AUTHOR]

Indian capital market has evolved much in the last two decades. In this research paper it is explored, whether certain financial parameters differ significantly with respect to IPO Grade. The Analysis showed, that four parameters namely, Current Ratio, Debt to Equity Ratio, Return on Assets and Return on Equity of the IPO bound companies differ significantly with IPO Grade. This study is done on IPOs in the context of Indian capital market, in the time period of 2007 to 2013. [ABSTRACT FROM AUTHOR]

Initial public offerings (IPOs) have a special place in finance, probably because they are the first opportunity to value a number of financial assets of company by variousparticipants of capital market. In India, initial public offerings (IPOs) have attracted many investors. Because companies coming out with IPOs are new and have no historical data to analyze. The success of IPO is critical for stockholders, companies, and the economy. Objectives: 1. To Study different IPOs during 2020-22 2. To analyze performance of Indian IPOs in short Run time frame. Research Approach The work in this research paper is carried out on the basis of empirical evidence. The study encompasses 33 IPOs which got listed on NSE of India for the period between 2020-2022. Thework is based on data collected from sources which are secondary in nature. The data required for research work is taken from website of National stock Exchange of India in the form of price quotes of shares and Nifty values. Themarket adjusted short term performance model, wealth relative index model along with other statistical measures is used for the study. Scope of work- The research work is restricted to companies which came out with public issues during the above specified period and got listed on NSE of India. Period -Year 2020-2022 Limitations of Study-The study covers external factors which affects the IPO performance. Originality-This research work is original and examines stock's listing profit or loss and its performance after the listing on recognized stock exchange. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of this paper is to survey managers of dividend-paying firms listed on the National Stock Exchange (NSE) in India to learn their views about the factors influencing dividend policy, dividend issues, and explanations for paying cash dividends and repurchasing shares. The authors compare the results to other dividend surveys based on firms in Indonesia, Canada, and the USA. Design/methodology/approach - The authors use questionnaire to gather primary data from a sample of 500 firms listed on the NSE. Findings - The most important determinants of dividends involve earnings (the stability of earnings as well as the level of current and expected future earnings) and the pattern of past dividends. Comparing the overall rankings of the 21 factors by respondents from Indian firms to those of Indonesian, Canadian, and US firms reveals statistically significant correlations. Respondents also perceive that dividend policy affects firm value. Respondents also view maintaining an uninterrupted record of dividends as important. The most highly supported explanations for paying cash dividends concern signaling, the firm life cycle, and catering. Although none of the theories of repurchasing shares is dominant, respondents provide little support for the agency explanation. Research limitations/implications - Although the tests suggest that the sample does not suffer from non-response bias, the findings should be viewed as suggestive rather than definitive because of the relatively low response rate. Originality/value - The paper presents new evidence about dividend policy of Indian firms. To the knowledge, this is the most comprehensive survey of Indian firms to date that captures managerial perceptions on both cash dividends and share repurchases. [ABSTRACT FROM AUTHOR]

Indian capital market regulator, Security Exchange Board of India(SEBI) introduced many path breaking rules and regulations in the Indian equity market in last two decades. Book building of Initial Public Offers (IPO) and IPO Grading are two such things. In the Indian context, book built IPOs, provide different quotas for different types of investors. Thus, it is possible to capture the appetite of the retail as well as the institutional investors, separately. Gain in any script at the close of first day's trading compared its issue price, adjusted for market movement is called under pricing. In this research paper, it is investigated, whether under pricing in any company's IPO has any relationship with the retail and also the institutional investors' subscription level. All the IPOs in the time frame, when IPO Grading was mandatory, are chosen for the study. The analysis shows that only retail investor's subscription level affect under pricing. [ABSTRACT FROM AUTHOR]

The present paper examines the relation between commodity market and capital market using 22 years monthly data for the period April, 1991 to March, 2013. Gold price represents commodity market and BSE Sensex is taken as proxy for capital market in India. The unit root test clarified that gold price and stock price were found to be integrated of order one using Augmented Dicky-Fuller test for unit root. The Granger causality test confirmed the presence of unidirectional causality which runs from gold price to stock price. It is established from the Johansen cointegration test that gold price and stock price are cointegrated, indicating an existence of long run equilibrium relationship between the two. VECM and wald test finally confirmed that there is a bi-directional relationship in the long-run between the two variables. We find a negative but low correlation between gold and sensex. Based on these results, we incline to suggest the favourable property of gold as an investment asset for the Indian emerging market. At least, gold provides a diversification and safe haven benefit to investors in the Indian market. The domestic Indian gold market tends to have resistance to heightened risk in the stock market as it preserves its low negative relation with stock market variations regardless of the market conditions. [ABSTRACT FROM AUTHOR]

Purpose Small and ignorant investors have had very unpleasant experiences in the stock market. They should be alert and have proper knowledge and understanding of the various problems that can arise in their dealings and how these can be resolved. This paper aims to analyse the investors’ probable solutions to their investment-related problems by using descriptives and factor analysis technique. Only Securities and Exchange Board of India (SEBI) can ensure a free and fair market and take India into league of major global capital markets in the next round of reforms.Design/methodology/approach By personally visiting the offices of the stockbrokers, 1,000 questionnaires have been distributed among retail equity investors of Punjab, i.e. Amritsar, Jalandhar, Ludhiana and Mohali. Stockbrokers have been selected using simple random sampling technique because of their large number. In total, 373 questionnaires have been filled up by the respondents, and 45 questionnaires have been found to be incomplete and thus have been excluded from the analysis. Remaining 328 questionnaires have been used for the analysis. The objective of the research is to study the investors’ probable solutions to their investment-related problems. The collected data have been analysed using descriptives and factor analysis technique.Findings It has been found that 24.7 per cent retail equity investors have filed complaints while dealing in the securities market; on the other hand, 75.3 per cent retail equity investors have not filed any complaint neither against the company nor against the intermediaries. It has been found that the authorities have taken 12-90 days and even four-five months in providing first reply to their complainants. Moreover, it has been found that in some of the cases, SEBI has written to the concerned companies to resolve the complaints, and some issues have been still pending with SEBI. It has been revealed that SEBI has taken quite long time to resolve the complaints, and equity investors have not been satisfied with the decisions of the SEBI. This study has further highlighted the importance of variables considered by investors as probable solutions to their problems while dealing with securities. The highest mean score has been found for the variable grievance redressal mechanism has been slow, followed by investors have been exploited by the malpractices of companies, merchant bankers and auditors, stronger regulations have been required to strengthen investor protection, investor has yet not educated enough to discriminate between good and not-so-good scrips, etc. These 22 variables measuring the construct of investors’ probable solutions to their problems have been analysed with the help of factor analysis. Six factors have been identified with the help of factor analysis, i.e. stability measures for stock market, investor awareness and education norms, measures to impart knowledge to investors, measures to protect investor rights, audit of companies and investor grievance redressal, and these factors have together explained 68.441 per cent of the variance in data.Research limitations/implications Based on the study done by the researcher, the following suggestions are identified for further research. As the present study is at a state level, it could be extended to national level. The impact of retail investment in capital market may be studied in view of rural investors. The study may further be carried out to analyse the impact of reforms on the functioning of stock exchanges. A study on the awareness of women investors about retail investment pattern could be attempted. Implications of internet stock trading in India can be taken up for study. Impact of technological innovation in capital markets can be studied.Practical implications This study would be of great use for investors who make decisions regarding investment. This study will help policymakers in formulating strategies and will also help credit rating agencies in rating the investment instruments.Social implications This study is of great help for investors and SEBI. This study guides the investors regarding various laws that have been formulated for their protection and guides the SEBI in making strict regulations for the protection of the investors.Originality/value This task is 100 per cent original and some authors have been quoted. [ABSTRACT FROM AUTHOR]

The issue is contentious since a huge proportion of the population is still devoid of easy access to capital markets for fruitful investments. Often, FIIs do not act rationally and excessive dependence on them can have disastrous consequences for the economy. FIIs are the first to-flee in case of any undesirable circumstances and this necessitates the need for having a strong domestic support. The FII flows also have another dark side. They normally invest in the top-run companies and this creates a buying pressure, which forced the indices upward, quite analogous to the rise in the price of a commodity due to a heightened demand. This leads to a cascading effect on even the undeserving stocks among others and because of the heavy manipulation that follows, the promoters and operators manage to escape the scrutiny. As a result, the small investors who are looking for cheap bargains get maneuvered into such stocks. Foreign Institutional Investors are now allowed to invest in equity, debts and derivative instruments subject to the limits of foreign ownership as well as ceilings on total investment per investor. As FII affects the real economy of India via rate of exchange and many other factors, there is a need to study the effect of FII (both equity and debt) on the movement of foreign rate of exchange (rupee to US dollar). This paper aims to study and identify the relationship between foreign capital flow andrate of exchange in India for the period January 2006 to January 2015 using monthly data. The data includes the Inflow of FII both Equity and Debt into India, Net FII, and Rate of exchange between Indian Rupee to US Dollar. Foreign investors are attracted to success stories; they are drawn to countries already growing, politically stable, and with a sizable purchasing power. It is attracting towards high rate of interest and large market size as well as certain level of scope for new business and innovative ideas. Foreign investment inflows to India continued to increase over the last two decades as a result of investment favourable policies adopted by the Indian government. There is sufficient evidence to show that there is significant relationship foreign capital flow on foreign rate of exchange. Research concludes that there exists unidirectional causality in the movement of FII investment in equity, Debt and the movement of rate of exchange in India. [ABSTRACT FROM AUTHOR]

This research paper examines the price behavior of equity shares of companies that indulge in insider trading of their securities. Further, it also analyzes whether reporting delays and industry differences have any impact on the magnitude of abnormal returns. A sample of 1,101 insider transactions by insiders of Bombay Stock Exchange (BSE) listed companies for the period April 1, 2009-March 31, 2013 has been utilized for analysis purpose, which includes 524 buy transactions and 577 sell transactions. The impact of insider transactions on share prices is ascertained by examining the abnormal returns on the date of transaction by using the market model. The findings of the study reveal that insiders are able to earn abnormal returns during one month post the event, whereas in the long run, the profits almost disappear. Time duration of reporting trades to stock exchange and industry differences impact the direction and magnitude of stock market returns. [ABSTRACT FROM AUTHOR]

Purpose - The purpose of this paper is to estimate time-varying conditional volatility, and examine the extent to which trading volume, as a proxy for information arrival, explain the persistence of futures market volatility using National Stock Exchange S&P CRISIL NSE Index Nifty index futures. Design/methodology/approach - To estimate the volatility and capture the stylized facts of fat-tail distribution, volatility clustering, leverage effect, and mean-reversion in futures returns, appropriate ARMA-generalized autoregressive conditional heteroscedastic (GARCH) and ARMA-EGARCH models with generalized error distribution have been used. The ARMA-EGARCH model is augmented by including contemporaneous and lagged trading volume to determine their contribution to time-varying conditional volatility. Findings - The paper finds evidence of leverage effect, which indicates that negative shocks increase the futures market volatility more than positive shocks of the same magnitude. In addition, the results indicate that inclusion of both contemporaneous and lagged trading volume in the GARCH model reduces the persistence in volatility, but contemporaneous volume provides a greater reduction than lagged volume. Nevertheless, the GARCH effect does not completely vanish. Practical implications - Research findings have important implications for the traders, regulatory bodies, and practitioners. A positive volume-price volatility relationship implies that a new futures contract will be successful only to the extent that there is enough price uncertainty associated with the underlying asset. Higher trading volume causes higher volatility; so, it suggests the need for greater regulatory restrictions. Originality/value - Equity derivatives are relatively new phenomena in Indian capital market. This paper extends and updates the existing empirical research on the relationship between futures price volatility and volume in the emerging Indian capital market using improved methodology and recent data set. [ABSTRACT FROM AUTHOR]

Indian capital market saw the launching of index futures and options on NSE on June 12, 2000 and June 4, 2001 respectively. This launching of derivatives in Indian stock markets was perceived to increase volatility in the stock market by some researchers, at the same time some other researchers anticipated decline in volatility. This paper tries to study whether the Indian stock markets show some significant change in the volatility after the introduction of derivatives trading. The study has been undertaken with a comprehensive daily data set from January 1, 1996 to March 31, 2007. To measure the volatility GARCH (1, 1) model has been used. The results show that the presence of derivatives markets on S&P CNX Nifty have declined the volatility marginally, and less reduction of volatility in spot market seems that presence of uninformed traders' activities in derivatives market. Marginal volatility reduction in spot market is associated with the increase in market efficiency and improved market depth in post derivatives period. This identification rejects "destabilizing forces hypothesis and supports "market completion" hypothesis on derivatives. [ABSTRACT FROM AUTHOR]

This paper examines if the Indian stock market moves with other markets in Asia and the United States in an era of capital market reforms and the sustained interest of foreign investors in that market. By using techniques of cointegration, vector autoregression, vector error-correction models, and Granger causality, we find that, though there is definite information leadership from the U.S. market to all Asian markets, the U.S. indexes do not uniquely influence the integration of Asian markets, while Japan is found to play a unique role in the integration of Asian markets. The U.S. market is seen not only to influence, but also to be influenced by information from most of the major Asian markets. The Indian stock return in recent times is definitely led by major stock index returns in the United States, Japan, as well as other Asian markets, such as Hong Kong, South Korea, and Singapore. More important, returns on the Indian market are also seen to exert considerable influence on stock returns in major Asian markets. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between stock market returns and volatility in the Indian stock markets using AR(1)-EGARCH(p, q)-in-Mean model. The study considers daily closing prices of two major indexes of Indian stock exchanges, viz., S&P CNX NIFTY and the BSE-SENSEX of National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), respectively for the period from July 1, 1997 to December 31, 2013. The empirical results show positive but insignificant relationship between stock returns and conditional variance in the case of NSE Nifty and BSE SENSEX stock markets. Besides, the analysis reveals that volatility is persistent and there exists leverage effect supporting the work of Nelson (1991) in the Indian stock markets. The present study suggests that the capital market regulators, investors and market participants should employ the asymmetric GARCH-type model that sufficiently captures the stylized characteristics of the return, such as time varying volatility, high persistence and asymmetric volatility responses, in determining the hedging strategy and portfolio management and estimating and forecasting volatility for risk management decision making at Indian Stock Exchange. [ABSTRACT FROM AUTHOR]

The market conditions are the most obvious and the least controllable that influence the decision of a company to issue an Initial Public Offering (IPO). The anecdotal literature suggests that timings are everything for an IPO. The market conditions are crucial not only for the performance of an issue but also for its survival on the trading exchange. The Indian primary market has witnessed several volatile market conditions in the post-SEBI (Securities and Exchange Board of India) era. The introduction of SEBI and abolition of Controller of Capital Issues (CCI) created 'hot issue phenomenon' in the market, wherein several new issues entered the market, however, only a few managed to survive in the aftermarket. Such high failure rate of IPOs and diverse market conditions generated the need to explore the survival profile of IPOs in India. Using the most sophisticated methodologies, i.e., logistic regression and survival analysis, the present study explores the survival profile of IPOs in hot market conditions of India. The empirical investigation reveals that most of the IPOs entered the market in hot issue period (1992-1996) but they failed to survive longer in the aftermarket. Overall, the Kaplan-Meier estimation exhibits a significant decline in survival rate and a growth in hazard rate during the first 50-60 months of listing. The analysis of market-specific variables and survival profile of IPOs reveals that issues in the period of high IPO activity fail to sustain longer on the exchange. Apart from this, several offering and company-specific factors also exhibit significant results. The findings of this study will have fruitful implication for the issuers, investors, regulators, and the entire capital market as they can evaluate the future prospects of IPOs and can take rational decisions accordingly. [ABSTRACT FROM AUTHOR]

This research explores the predictive power of the India VIX (volatility index) in emerging markets from April 2009 to March 2011. The results of the study show that the models including both the volatility indicator and the option market information have a stronger predictive power. With respect to the trading information from different types of investors in option markets, the trading information from the foreign institutional investors in option markets demonstrates a significantly positive relationship with the stock market volatility. In addition, the results of this paper also reveal that the India VIX GARCH volatility forecasting and stock index options are a strong indicator of future stock market volatility. The GARCH outperforms the historical volatility and the VIX volatility forecast in assessing the activities of Indian capital market. [ABSTRACT FROM AUTHOR]

Historically, IPOs have been observed to be underpriced. There are cycles in both the volume and the average underpricing of IPOs which may be attributable to the prevailing economic conditions. A large number of IPOs are made when there is a stock market boom. In contrast there is generally a decline in the IPO activity when the stock market conditions become adverse. The stock market crash may cause a short term behavioural change amongst investors or a structural change in the market which may affect IPO underpricing. The present paper investigates the impact of Indian stock market crash in the year 2008 on the underpricing of book-built IPOs. A significant difference is found in the level of IPO underpricing in the post stock market crash period as compared to pre stock market crash period. [ABSTRACT FROM AUTHOR]

The paper analyzes the varying perceptions of stock price volatility of Indian capital markets along with identifying possible reasons for volatility and measures the degree of volatility. It is evident from the values of co-efficient of variation and standard deviation that the market capitalization of NSE was highly volatile or less consistent when compared to BSE. There was a greater crash in the market prices was on account of Kethan Parekh stock market scam, Coupled with bearish trend in the markets apart from various other factors. Number of companies listed has declined abnormally over a decade and the share of NSE as increased significantly and equaling with that of BSE listed companies. Volatility in number of shares traded daily on NSE and BSE varies between 1.90 to 1.24 and 2.00 to 1.32 respectively. This represents that the volatility rate in BSE is greater than that of NSE. Relevance of the budget on stock price volatility is diminishing every year because of the critical policy decisions are taken on a regular basis by the government. [ABSTRACT FROM AUTHOR]

The relevance of beta as a measure of risk depends on the stationarity of beta over rime. The paper discusses the stationarity of beta in the Indian capital market using a sample of thirty eight equity securities listed in the Stock Exchange Mumbai. The study uses weekly closing prices from May 11, 1990 to February 6, 1996. The average beta based on Sensex is .8634 and based on BSE100 index is .7398 and no security has negative beta. The market explains roughly 5 to 60 percent of the variance in the individual security returns. Product Moment Correlation and Rank Order Correlation show that the betas are not stationary over rime and hence beta cannot be used as a measure of future risk for individual securities and small portfolios. The paper, further, finds that the betas have the regression tendency of moving towards the mean beta of 1. [ABSTRACT FROM AUTHOR]

Abstract: A growing body of research points to the fact that capital markets react to environmental news and thus create incentives for pollution control in both developed and emerging market economies. In this paper, we conduct an event study to examine the impact of environmental rating of large pulp and paper, auto, and chlor alkali firms on their stock prices. We find that the market generally penalizes environmentally unfriendly behaviour in that announcement of weak environmental performance by firms leads to negative abnormal returns of up to 30%. A positive correlation is found between abnormal returns to a firm''s stock and the level of its environmental performance. These findings should be viewed as further evidence of the important role that capital markets could play in environmental management, particularly in developing countries where environmental monitoring and enforcement are weak. [Copyright &y& Elsevier]

This paper is an attempt to analyze the important determinants of capital structure in Indian manufacturing industries in India in last decade. Over the past several years, financial economists and researchers have worked to bring more of scientific and predictive understanding in Corporate finance, this has been done by preparing formal theories that can be tested by empirical studies of corporate and stock market behavior. But this brings us to the most important issue to developing a well defined and exhaustive theory of capital structure which also find its applicability in actual market scenario and designing empirical tests that are powerful enough to provide a basis for choosing among the various theories. Several competing theories have reserchers have given there perspective in the form of theories, since Modigliani and Miller's famous propositions on the capital structure, to test the ground realities of capital market imperfections such as taxes, bankruptcy costs, agency costs, and information asymmetries. Therefore, the determinants of the capital structure of companies have been debated for long in corporate finance. To bring more clarity on it, this research attempts to test the important determinants of the capital structure of companies. [ABSTRACT FROM AUTHOR]

The study of behaviour of stock prices and information dissemination plays an important role in the development of stock market and to ensure effective allocation of capital to the most productive sectors of economy. It is particularly, more sensitive in the context of Indian Economy being a developing one and there is immense need to boost the economic process by accumulating resources from private sectors. It is well documented in the financial literature that private sector flourishes in the presence of efficient capital market. In this study a rigorous attempt was put forth to find whether the trading activities in the stock markets are satiable to counter the informational impact on share price by different researches and also to further instigate the new folds needed for conducting research in extended manner. There are numerous studies available to address the level of efficiency pertaining to the stock market, though this study is intended to cover the most influential available literature. [ABSTRACT FROM AUTHOR]

This paper examines the risk-return relationship in Indian stock market using symmetric and asymmetric GARCH-in-mean (GARCH-M) models. First the standard GARCH-M model is used, next since variance is proxy for risk, we ascertain if there is any significant relation between asymmetric variance and return using TGARCH-M, EGARCH-M and Power GARCH models. The study uses daily data on popular index S&P CNX Nifty of National Stock Exchange, India, during a period of two decades from July, 1990 to November, 2010. Further the period of Asian crisis is covered during the pre-derivative period of a decade and sub-prime crisis is covered during the post-derivative period of a decade to see the behaviour of volatility and risk-return relationship. The results show that both the TGARCH-M and PGARCH-M models are good for Indian market conditions. The asymmetric models find strong evidence of time-varying, highly persistent and predictable volatility in Indian market. It establishes that return is positively related to risk in Indian market during all periods. The risk-return relationship is positive and significant only at higher lags that too in the presence of dummyfut (variable which takes value 1 after derivatives and 0 before it). Further during sub-period analysis we find that risk-return parameter is higher in magnitude in pre-derivative period compared to post-derivative period. In both periods both the crisis had negative effect on return and positive effect on volatility. The rise in volatility during Sub-prime crisis is sharper compared to during Asian crisis. The findings are useful for financial decision making. [ABSTRACT FROM AUTHOR]

China and India are the world's most populous and rapidly developing countries and are often discussed together. We examine life insurance firms in these two countries between 2008 and 2016 using a game cross-efficiency model, which comparatively measures insurers' performance using Nash equilibrium weights. We investigate whether there is an optimal business model for three business dimensions: assets, funding and income. From our second-stage regressions we conclude that strategic focus is superior in terms of assets and income to diversification at the insurer level. At the capital market and economic levels, economic development, unemployment, stock market development and other variables are also important. Our study provides useful insights into how a business model can be made more efficient in large emerging markets. [ABSTRACT FROM AUTHOR]

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]

The objective of the present study is to find out the relation between bank stock returns and dividend per share, debt equity ratio and fixed assets turnover ratio of the select seven bank stocks included in the Nifty index for a period of 10 years from 2008 to 2017. Statistical techniques like correlation, multiple correlation and regression have been used for analyzing the data. The results show that only in the case of HDFC bank, there is positive correlation between stock return and dividend payout ratio, debt equity ratio and fixed assets turnover ratio. [ABSTRACT FROM AUTHOR]

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]

The study investigates the impact of derivatives listing on stock prices in the Indian capital markets. Significant positive abnormal return around derivative listing is found lending support to the market completion hypothesis. The results support the evidence obtained in the US, the UK and other developed countries that introduction of derivatives increases the opportunity set to invest in the markets and improves the overall efficiency of the capital markets. [ABSTRACT FROM AUTHOR]

Determining the linkage between stock price and gold price has been acknowledged as the issue of concern for numerous years. This study attempts to shed luminosity on the casual relation between the two major markets in India namely Capital market and Commodity Market. Gold price serves as the proxy for Commodity market and NSE S&P CNX Nifty serves as the proxy for Capital market. The study investigates the causal relationship of NSE S&P CNX Nifty with Gold Price for the period from April 2002 to March 2015 using econometric analysis such as Augmented Dickey Fuller (ADF) Test, Phillips- Perron (PP) Unit Root test, Granger Causality Test, Johansen Co integration test. The study is based on secondary data obtained from World Gold Council database and NSE database. ADF Unit root test and Phillips-Perron (PP) Unit Root test indicates that the selected time series are stationary at 1st difference. Results revealed in Granger Casuality test are that the return on NSE (S&P CNX NIFTY) does not have Granger causality relationship with gold price. The Gold price and return on NSE (S&P CNX NIFTY) has relationship between each other. In the short run there exist unidirectional relationship between gold price and return on NSE (S&P CNX NIFTY). Johansen Co integration test highlights that Daily Gold price and daily NSE S&P CNX Nifty index are co integrated with each other. This proves there exist a long-run causality relationship between these two variables. When the gold price changes, then there exist change in the Indian stock market indicator NSE (S&P CNX NIFTY). More explicitly, the study concludes that when the gold price changes, then there exist change in the Indian stock market indicator NSE (S&P CNX NIFTY). Change in stock market indicator does not impacted gold price. [ABSTRACT FROM AUTHOR]

A January effect, the subject of the study, is an external factor which explains the price abnormality. By the end of year, most investors sell stocks which show low performance. With the New Year, investors repurchase these stocks to their portfolio at a cheap price. This demand on stocks in the first month of the year increases the prices of stocks. There are several studies which shall confirm this assumption in the literature. The common feature of these studies is that incomes in January return more than December and the relevance is significant statistically. Three important reasons are argued which can explain this phenomenon. The first reason is that in January, investors want to repurchase their stocks at a cheap price which they sold in December in order to decrease tax losses. Therefore, investors sell their stocks in December in order to avoid tax. The second reason is that portfolio managers want to sell their stocks with low performance in order to ameliorate their portfolio. The portfolio manager wants to increase the portfolio performance by carrying out this transaction. The third reason is that portfolio managers aim at stock certificates of more small-sized companies by selling certain stocks and that they want to make profit over the value which they use as a criterion. On the other hand, there are also studies with different approaches about the availability of January effect in literature. In the study, whether January Effect is available has been analyzed by being examined using observations of 15 years, from 1998 to 2013, of the two major indices reported by National Stock Exchange (NSE), i.e. Standard & Poor's (S & P) Nifty and CNX Nifty Junior. The January effect is examined by using Friedman's sum rank test, Mann-Whitney U-test and dummy variable regression analysis, which are tests for seasonality. [ABSTRACT FROM AUTHOR]

Indian stock market was functioning with Accounting Period settlement cycle till December 31, 2001. But as per the recommendation of G-30 which was a group to determine the best international practices for securities clearing and settlements, Indian stock market has adopted T+2 rolling settlement cycle on April 1, 2003. Difference of settlement and clearing cycles of different stock exchanges might lead to the day of the week anomaly. Day anomaly in return and volatility of stock market was found to be affected by settlement cycle, and it changes over the period of time. Therefore, present study tries to investigate the effect of introduction of T+2 settlement cycle on day of the week anomaly in return and volatility of Indian stock market. Study analyzes daily closing price data of Sensex and Nifty over the period January 2, 1991 to January 31, 2013 covering 5,763 samples. Study computes descriptive statistics of each week days for both subperiods as well as for complete sample period. It also applies GARCH (1, 1) model for investigating the presence of day of the week effect in both return and volatility of Indian stock market. Empirical result reveals that before introduction of T+2 settlement, returns of Monday and Thursday were negative, while after the introduction of T+2 settlement, returns of all days are positive. By applying GARCH model, this study concludes that after the introduction of T+2 settlement, day of the week effect exists only in return of Indian stock market, but it does not exist in volatility of Indian stock market. [ABSTRACT FROM AUTHOR]

Market Overreaction is a very familiar and age-old craze amongst traders. Pigou (1929) defined it as a 'conducting rod along which an error of optimism or pessimism, once generated, propagates itself about the business world.' The question of whether or not Indian stock prices market is overreacted during any stock-specific news is best answered by a comprehensive and concurrent analysis of the various tests and data available while using the event study. This study wants to address the impact of size, volatility and asymmetry in the terms of investors' overreaction to the firm-specific news not only individually but also jointly. The outcome of this study helps to solve the problem concerning the extent to which quarterly announcements have informational content, and whether the investors are affected by the signals. The present study substantiates the policy recommendation for the market players as well as for the analysts in estimating earning announcement events under different market condition and different market capitalization value of the firm. [ABSTRACT FROM AUTHOR]

A great deal of research was devoted to investigating the randomness of stock price movements for the purpose of demonstrating the efficiency of capital markets. More recently, however researchers have demonstrated market inefficiency by identifying systematic variations in stock returns. These are called as calendar anomalies or stock market anomalies. The existence of seasonality or monthly effects in domestic and international markets suggests a market inefficiency, in that investors should be able to earn abnormal rates of return incommensurate with the degree of risk. Thus, this study focuses on stock market anomalies or calendar anomalies in Indian stock market. The results established are that the Indian stock market is not efficient and investors can improve their returns by timing their investment. [ABSTRACT FROM AUTHOR]

The present study attempts to examine the random movements in stock indices in the Indian equity market. It tests the random walk hypotheses in daily, weekly and monthly returns of six Indian stock market indices from January 2000 to October 2009. The indices considered for the purpose of the study include Nifty, CNX Nifty Junior, NSE 500, SENSEX, BSE 100 and BSE 500. The study uses Jarque-Bera (JB) Test for testing normality in return series. It also applies Box Pierce Q-Statistics and Ljung-Box (LB) statistics, and Augmented Dickey-Fuller (ADF) test to test whether return series follow random walk or not. The results indicate that there are no random movements in share indices. However, when we apply Lo and MacKinlay (1988) variance ratio test under the assumptions of both homoskedasticity and heteroskedasticity, we observe contradictory results. It is also found that sometimes heteroskedasticity is the source of non-random behavior in share indices. [ABSTRACT FROM AUTHOR]

In integated stock markets identical stocks will trade at equal prices in domestic and foregin markets. Understanding the degree of integration of a country's capital markets could assist policy maker's in formulating guidelines in emerging markets that are vulnerable to rapid capital inflow and flight of capital. It is difficult to measure stock market integration however Korajzck (1996) evolved a measure based on the International Arbitrage Pricing Theory. We examine how far the Indian stock market has integrated with the global market by observing the mis-pricing of assets in asset pricing model of portfolio theory. The Indian stock markets appear to be more integrated since late 1990s, perhaps due to lower barriers for foreign porfolio invertment funds and easier access for Indian firms to international markets. Finding of this study shows that as the level of integration increases, there is an argument for bringing down the barriers further. [ABSTRACT FROM AUTHOR]