Articles
CALENDAR ANOMALIES: EVIDENCES FROM EAST ASIAN STOCK MARKETS

Sandeep Vodwal

1st April 2017

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This paper attempts to investigate various calendar anomalies like Day of the week effect, Turn of the month effect, Holiday effect and January effect in the seven East Asian stock markets (China, Japan, India, Hong Kong, Taiwan, Mongolia and Korea) by using index returns and time varying econometric modelling methods. This study further investigates the presence of volatility clustering, symmetric information and leverage effect in these markets. The research paper has applied GARCH-M (1, 1), GJR-GARCH-M (1, 1) and E-GARCH-M (1, 1) models to investigate the aforesaid objectives. The study did not observe sign of Day of the week effect, and January effect but noticed the strong evidence of positive returns during the first four and last two trading days of the month in Indian, Taiwanese and Mongolian Stock Market. It is further observed that the Mongolian stock market shows significant negative returns during the month of August. The presence of Turn of the month for six days does not confirm that which day would give the excess returns in the stock market so, it would be highly difficult to generate excessive returns in these markets. This research also searched out that volatility in clustering, returns are highly volatile, and negative shocks transmits more volatility in the market than the positive shocks. The study also finds the strong evidence for the presence of “leverage effect” in all markets considered for the study. It may be inferred from the study that the absence of calendar anomalies indicates operational efficiency of East Asian Stock Market.

CORPORATE GOVERNANCE DISCLOSURE INDEX AND FIRM PERFORMANCE: EVIDENCE FROM NSE COMPANIES

Shikha Mittal Shrivastav and Anjala Kalsie

1st April 2017

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The paper analyses the relationship between Corporate Governance Disclosure Index (CGDI) and Firm Performance of 38 non-financial NSE listed companies in India for a period of five years from 2008-2012. The objective of the paper is to examine the level of disclosure and the impact of such disclosure on the firm performance of NSE Nifty companies.The firm performance measures include Tobin’s Q, Market to Book Value Ratio, Market Value Added, Return on Assets, Return on Capital Employed and Return on Equity. Econometric analysis is performed using Year-wise OLS Regression, Pooled OLS and Panel Data Models. The results of year-wise OLS regression analysis provided a strong evidence of strengthening of the relationship between CGDI and firm performance measures over the years. In brief, the research findings reveal that CGDI has a positive impact on firm performance based on market based measures as well as accounting based measures. The paper concludes firms that disclose more are likely to result in higher performance. The results also imply that firms are more willing to disclose more information leading to enhanced corporate governance mechanisms but there is still scope for the improvement.

INCIDENCE OF FINANCIAL LITERACY IN INDIAN HIGHER EDUCATION INSTITUTIONS: A STUDY OF UNIVERSITY OF DELHI’S STUDENTS

Narander Kumar Nigam and Saumya Jain

1st April 2017

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In the increasingly complex financial markets of today, financial literacy is being regarded as a crucial life skill. Financial literacy plays a vital role in generating demand for financial inclusion initiatives of government and contributes to the broader goal of social inclusion and sustained development. The present study is designed to measure the financial literacy level of higher education institutions in India and identify the sociodemographic factors affecting the level of financial literacy. The study was a survey based study conducted on 1064 students belonging to India's premier Central University, University of Delhi. The survey instrument was uniquely designed to measure financial literacy of youth through questions based on financial knowledge and financial awareness. The results revealed medium levels of financial literacy. The results showed that male students have higher levels of financial literacy. Commerce students display a higher level of financial literacy in comparison to arts and science students. A significant positive correlation is observed between financial literacy and financial behaviour. The present study identifies key areas such as banking sector, interest rates, inflation and investment where students lag behind and policy makers need to focus.

GLOBALISATION OF CONSUMER CULTURE: AN EMPIRICAL SURVEY OF CONSUMERS IN DELHI

Dipika Bansal

1st April 2017

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Increasing globalisation, worldwide investment and production strategies, growth of global transport and, media and, advances in information and communication technologies have all accelerated global market integration. As against a multi-domestic strategy, a natural form of international segmentation for marketers, the homogeneity among consumers has reduced within countries whereas increasing across countries. Thus, the decision as to standardize or customize marketing strategy requires analysis of the behaviourial positions undertaken by consumers in marketplace. The study attempts to explore the various positions of homogenisation, localisation, hybridisation or marginalisation acquired by consumers in the globalised world. Study results support the co-existence of the multiple marketplace positions among Indian consumers, thereby providing important managerial implications and directions for future research.

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.