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Purpose: The purpose of this paper is to contribute to the existing literature on financial risk disclosure by examining a sample of non-financial Indian companies listed on the Bombay stock exchange (BSE) to explore the degree of information about financial risks contained in their annual reports. Design/methodology/approach: To study the financial risk disclosure of Indian companies, a sample of 206 non-financial companies has been derived from the top 500 listed companies at BSE. The method used in this study to analyze risk disclosure is content analysis. A total of 1,854 annual reports are scanned through software Nvivo-12 to find different types of risk words. Overall, risk disclosure, category wise risk disclosure, year-wise risk disclosure and sector-wise risk disclosure are assessed. The risk disclosure index is also computed. Findings: The results show that there are some risk disclosure practices in Indian companies. No general pattern is observed. Companies are following vague method of risk disclosure. In the true sense, Indian companies are now started risk disclosure practices since 2018. This may be because of pressure from regulating bodies and stakeholders with greater detail about their financial risks. Originality/value: This study is carried out for Indian non-financial companies. The paper adds to the literature relating to financial risk disclosure in developing countries. [ABSTRACT FROM AUTHOR]

Purpose: The preference of firm corporate social responsibility (CSR) spending is shaped by different groups of owners and the institutional environment in which the firm operates. This paper aims to study the heterogeneity among the controlling groups and firms' internationalization in influencing the CSR decision in emerging economy firms. Design Methodology Approach: This paper draws understanding from institutional theory to inspect the propensities of various ownership groups such as lending institutions (LI), domestic mutual funds (MF) and foreign institutional investors (FIIs). The empirical analysis was conducted from a sample of 1,594 unique Bombay stock exchange (BSE)-listed non-financial Indian firms during the 2014–2019 period using Tobit panel regression analysis. Findings: The findings reveal that firms' CSR activities are impacted differently by ownership share of different types of institutional investors after controlling for firm-level resources and capabilities. Lending institutions, FIIs and MF are supportive of CSR investments by firms along with international investments by the firm. Further, the results show that the CSR spend is positively influenced by the business group affiliation of the firm compared to the unaffiliated group of firms. Practical Implications: The analysis has implications for both institutional investors and multinational firms. In the merging market context, managers and owners who target long term strategies such as CSR will benefit from increasing shareholdings of creditors (lending institutions). They can also take steps to improve their transparency and corporate governance structure so as to attract foreign institutional investments, thus, in turn, helping the internationalization process of the firm. Originality Value: This paper considers the role of the diverseness of the ownership institutional investors along with the moderating effect of business group affiliation of the firm and international investments in impacting the CSR spend. This disparity has not been previously studied with the latest data in an emerging economy context. [ABSTRACT FROM AUTHOR]

Stock markets use information to determine the intrinsic values of assets and stocks. Markets take time to assimilate information and use it efficiently. This paper attempts to analyze the intraday information usage and assimilation patterns in the Bombay Stock Exchange (BSE) using the Generalized Auto Regressive Conditional Heteroskedasticity (GARCH) approach. Using more than 53,000 time series observations of the BSE Sensex, the paper has empirically tested the information usage and assimilation in the BSE and found that during very short intervals of five minutes, markets give preference to new information. The markets then increasingly assimilate existing information and take around half-hour to assimilate the information adequately. The markets then once again start seeking new information for decision making. [ABSTRACT FROM AUTHOR]

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]

Purpose: The purpose of this paper is to examine the dynamics between income diversification and performance (cost, profit, revenue, technical, pure technical and scale efficiency) for 38 listed Indian banks within panel data framework during the period 2004-2005 to 2015-16. Design/methodology/approach: This study computes bank's cost, profit, revenue, technical, pure technical and scale efficiency within intermediation approach with data envelopment analysis (DEA) as a performance indicator, followed by exploring the association between income diversification and bank performance using truncated Tobit regression within panel data framework. Findings: Tobit regression results revealed inverted U-shaped relationship between the income diversification and estimated efficiency parameters for the overall panel. Size and bank intermediation ratio seems to be a major factor in exploiting the potential benefits of income diversification. The author reconfirmed the inverted U-shaped relationship with these efficiency parameters for exclusive subsamples consisting of government-owned and private sector banks. Research limitations/implications: Inverted U-shaped relationship between the income diversification and estimated efficiency parameters suggest that banks should go for limited diversification to improve performance. Thus, regulators and banks should pursue limited diversification strategy for improving banking efficiency. Originality/value: This study computes bank performance (cost, profit, revenue, technical, pure technical and scale efficiency) based on DEA followed by exploring the association between performance and income diversification for 38 Bombay stock exchange listed banks. [ABSTRACT FROM AUTHOR]

With increasing doubts over the capabilities of the existing asset pricing models, Fama and French in the 1990s, developed the Three-Factor Model (TFM) as an extension to CAPM with two added premiums: size and value. This paper applies TFM theory to India to provide an insight into its validity in an emerging market.A priori information requires all three variables to show a significant positive relationship with excess returns but in this study, results indicate a number of discrepancies. The regressions find many coefficients insignificant and in some cases, show negative relationships between excess returns and the size and value premiums. The value premium particularly, appears negative for lower beta portfolios questioning the stability of the variable across beta values. The regressions represent high explanatory power but like in literature, this may be attributable to survivor bias or data snooping. Thus, it can be concluded that TFM is not a good fit in India over the chosen sample period. [ABSTRACT FROM AUTHOR]

We fill a gap in the finance literature by re-examining the performance of value and growth strategies in India. Fama and French (1998) note that stock returns in India increase with market capitalization and price-to-earnings ratio (P/E). Their emerging market data are limited, however, and their counter-intuitive results for India markets are neither statistically nor economically significant. We use a large and recent data set, and we are surprised to find that Fama and French's odd results have maintained their sign and strengthened dramatically. In particular, we find that stock returns in India increase strongly with both market capitalization and P/E, and decrease strongly with dividend yield. International investors need to beware that India markets do not follow the patterns that we have seen in most other markets, and that growth beats value on the Bombay Stock Exchange. [ABSTRACT FROM AUTHOR]

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]

This study investigates the effect of shifting of shares from one group to another on share prices and market liquidity on the Bombay Stock Exchange. The study uses an event study to analyse share price changes and liquidity around announcement and actual date of switching. The overall results suggest weak evidence of positive reaction of the market to the up-switch of shares from Group B1 to Group A. However, there is a negative reaction in case of up-switch from Group B2 to Group B1. In case of down-switch from Group A to Group B1 and from Group B1 to Group B2, the study found that the market does not respond to the announcement of the down switch but incorporates such information at the time of actual switch. The study also reveals a sharp fall in liquidity after the date of announcement for both the up-switched and the down-switched firms but this decline is relatively subdued after the date of actual switch. [ABSTRACT FROM AUTHOR]