Articles
EXPLORING AND PREDICTING THE ANTECEDENTS OF ENTREPRENEURIAL INTENTION OF UNIVERSITY STUDENTS IN PUNJAB

Prabhjot Kaur Manjit Singh Kanwaljeet Singh Rajdeep Singh

1st April 2017

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Entrepreneurial intention is a conscious state of mind that precedes action and guides career decision-making. It plays a pivotal role in an individual's decision to set up a new business. In order to foster the entrepreneurial intentions of the youth an examination of their entrepreneurial intentions should be done. The aim of this paper is to examine the entrepreneurial intentions among university students studying in the public universities of Punjab. Based on the Theory of Planned Behavior (TPB), a tailor-made entrepreneurship intention instrument is developed and used to measure the entrepreneurial intention of a sample of 300 students from public universities in Punjab. Structural Equation Modeling was used to study the relative impact of identified factors on entrepreneurial intention. The findings revealed that attitude towards the behavior; perceived behavioral control and entrepreneurial education had a significant impact on the entrepreneurial intention. The present study contributes to body of knowledge of entrepreneurial intention by extending theory of planned behavior model and incorporating one of the most valued motivational determinants namely entrepreneurial education.

THE INTERVENING EFFECT OF INTERNAL AND EXTERNAL FACTORS ON FINANCIAL PERFORMANCE OF BANKS: A CASE STUDY OF INDIAN PUBLIC SECTOR BANKS

Sanjeev Dhawan and Parvesh Kumar Aspal

1st April 2017

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The banks encourage capital formation, promote innovation, monetization and enhance business activities in the economy. Banks also play the role of facilitator of monetary policy. The success of banking sector depends upon the financial performance of the banks. The main objective of the present study is to examine the influence of bank specific (internal) factors and macroeconomic (external) factors on the performance of Public sector banks in India. The bank specific factors include Capital Adequacy, Asset Quality, Management Efficiency, Earning Quality and Liquidity. The macroeconomic factors such as GDP growth rate and average annual inflation rate were taken into consideration for analysis. The financial performance of public sector banks was measured by Return on Assets (ROA) and Return on Equity (ROE) variables. The results of the study reported that the except capital adequacy ratio variable all other bank specific variables (Asset Quality, Management Efficiency, Earning Quality, Liquidity) and macroeconomic variable gross domestic product had significantly influenced the financial performance of public sector banks in India. The implications of the study suggested that instead of optimum capital adequacy ratio maintained by banks, the other variables related with management and governance of banks had significant effect on financial performance of banks.

Book Review: THE EVOLUTION OF PATH DEPENDENCE

Aasheerwad Dwivedi

1st April 2017

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The introduction to the idea of path dependence and its relevance in development of historical Social Sciences begins from very common concept of history and historicity in narration. Contemporary research on this idea can be considered as part of broader intellectual movement which can be explained as quest for historical social sciences. One of the best descriptions of path dependence, in artistic sense, can be found in this book which is Paul Klee’s famous painting, Angelus Novus. The painting in which the angel gazes with mouth wide open and wings extended on the heap of the ruins of history has attracted many interesting interpretations. One interpretation by Walter Benjamin sees a strong wind blowing from paradise which prevents the angel from closing its wings. The wind drives the angel away from the past towards the future. This wind can be called progress. This interpretation has brought many comments: The landscape that angel sees, changes continuously. Can the journey of the angel through this landscape be conceptualized as path dependency? In certain sense yes, because there is no way it can escape its connection to the past.

Book Review: THE TOYOTA WAY TO LEAN LEADERSHIP

Paramjit Kaur

1st April 2017

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The book The Toyota way to lean leadership by Jeffery K Liker and Gary L Convis is a piece of comprehensive and exhaustive account of the Toyota as a company and the practice of its successful concept of lean leadership at every level of the management which are responsible to making Toyota one of the most successful car manufacturing companies of all times. It also discusses the reasons for failure the organisation suffered between 2007 to 2011 and the factors which were responsible for it. The book goes in detail about the role of lean leadership in an organisation such a Toyota and the lean leadership in Toyota is discussed in depth which helps us to understand the effort the authors have put to study the company, its processes and systems and also its people to help the readers understand the implications of lean leadership which built world class organisation such as Toyota. It also discusses the five year period where Toyota was going through a crisis and there were lot of issues which pointed at lack of clarity and vision of the top management and the senior leadership in the global markets away from the domestic Japanese market and the lessons that Toyaota learnt from three major issues which impacted its market leadership position.

Book Review: The Future of Indian Economy: Past Reforms and Challenges Ahead

Santosh Kumar

1st April 2017

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Indian economy started with economic reforms in 1991 which marked arrival of new era of the Indian economy, which definitely has raised its growth path at higher altitude. It becomes evidently clear if we compare the average GDP growth rate of 6.6 percent per annum for last 25 years (1990-91 – 2014-15) to that of 4.14 percent per annum for the pre-economic reforms 25 years (1964-65 – 1989-90). Such jump in average GDP growth rate of the Indian economy has brought India in quite a formidable position globally as an engine of world GDP growth as well as also a popular destination of global capital. If we look at the data of foreign exchange reserve, which highlights the directional flows of global capital, we find that it has risen from 5.84 billion dollar in 1990-91 to 341.64 billion dollar in 2014-15.i The foreign exchange reserves as percentage of GDP increased from 0.84 percent of GDP in 1990-91 to almost 34 percent of GDP in 2014-15.ii This clearly points out the degree of openness of the Indian economy to the global capital as well as the Indian economy as an important destination for global capital to extract the profits from India. We have also observed the decrease of inflation rate after the economic reforms period except few exceptional years around 2009-10, which points out an important objective achieved by the inflation targeting monetary policy of the RBI. Such transition of the Indian economy to better path of economic performance and economic stability is an outcome of sustained persuasion of economic policies conceptualised under the Washington Consensus.

Cyclicall Possibilities of Monopolistically Competitive Market Model

C. Saratchand

1st October 2016

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A dynamic model of monopolistic competitive industry is set out which is based on standard textbook formulations of a linear demand function and cubic cost function. The existence of the equilibrium, local stability and comparative dynamic properties of the model are set out. The Hopf Bifurcation theorem is employed to establish the possibility of cycles in the model.

THE IMPACT OF PUBLIC EDUCATION EXPENDITURE ON ECONOMIC GROWTH AND INCOME DISTRIBUTION IN INDIA

Vijay P. Ojha

1st October 2016

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In this study, a multisectoral neo-classical type price driven computable general equilibrium (CGE) model, with the additional feature that it includes a mechanism by which public education expenditure to build human capital augments the supply of educated/skilled labor, is used to analyse the impact of an increase in the former, financed by an increase in direct tax rates, on economic growth and income distribution in the Indian economy. The simulation results suggest that it is possible to increase investment in education in the resource constrained fiscal environment of the Indian economy, and reap the benefits in terms of a faster economic growth and an improved income distribution. The results also suggest that secondary education needs to be accorded higher priority, though, not necessarily, at the cost of higher education. Finally, to maximize the benefits in terms of economic growth it is desirable that investment in physical capital be increased simultaneously with investment in human capital (education).

THE STABILITY OF INDIAN STOCK MARKET AFTER DEMONETISATION

Narain and Asha Rani

1st October 2016

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This study attempts to analyse the impact of demonetisation of High Denomination Currency Notes (HDCNs) on the stability of Indian Stock market. The current central government announced the withdrawal of HDCNs from Indian currency in circulation in a move to curb black money from the Indian economy by making Rs. 500 and Rs. 1000 currency notes not remaining legal tender from 9th November, 2016. This sudden move of central government has resulted into short-term contraction of money supply in the economy. The change in the money supply has resulted into redistribution of portfolios of Indian investors. The logistics of replacement of currencies has affected all walks of life. The earlier experiences of demonetisation in 1946 and 1978 has alternatively been negative and then positive for Indian stock market. Using Event Study methodology, this study examines the information content of announcement of demonetisation of HDCNs by the central government. The study also employs ARDL methodology to establish a stable long-run relationship between money supply and stock market. It was observed that the current move of reduction in money stock in the economy has both short-term and long-term implication for the investors’ wealth. Sooner the restoration of money supply happens, faster the investors regain their lost wealth.

HAVE BILATERAL INVESTMENT TREATIES INCREASED FDI INTO SOUTH ASIA?

Sarthak Agrawal, Tanya Sethi and Aasheerwad Dwivedi

1st October 2016

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This paper econometrically investigates the effect of Bilateral Investment Treaties (BITs) on Foreign Direct Investment (FDI) into five South Asian countries. It employs an extensive panel data model to conclude that the BITs signed by Bangladesh, India, Pakistan, Nepal and Sri Lanka between 1970 and 2014 have not led to an increase in FDI--a result that is later established on theoretical grounds as well. When this conclusion is juxtaposed with compelling literature on the BIT’s deleterious impact on domestic sovereignty and independent policy space, the scope for a pareto superior outcome is envisaged; and this outcome is shown to be a Nash equilibrium using an augmented prisoners’ dilemma model with a provision for mutual cooperation.

SURVIVAL OF THE FITTEST: AN EMPIRICAL ANALYSIS OF IPOs IN THE POST-SEBI ERA

Garima Baluja

1st October 2016

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The Indian primary market has seen several fluctuations in the post-SEBI era. The introduction of SEBI and abolition of 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. This paper explores the survival profile of 3125 IPOs issued during 1992-1996 using most sophisticated methodologies i.e., Logistic Regression and Survival Analysis. The models take a range of information concerning offering, market, and corporate specific characteristics of IPOs. 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 market. 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 offering characteristics such as issue size, lead manager’s reputation, and IPO demand exhibit a positive influence, whereas initial returns, risk, and list delay exhibit a negative influence on the endurance of IPOs. The analysis of market specific variables and survival profile of IPOs reveals that issues in the period of high IPO activity fails to sustain longer on the exchange. The results of corporate specific variables validates that age of the company not only enhances the odds of survival of IPOs but also accelerates their survival duration in the aftermarket. The survival profile of IPOs varies across the several industries as well. 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.