Indian Journal of Finance最新文献

{"title":"Evaluation of Pooled Cross-Sectional Earnings Forecasting Models: An Indian Evidence","authors":"Sanket Ledwani, Suman Chakraborty","doi":"10.17010/ijf/2023/v17i8/173008","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i8/173008","url":null,"abstract":"Purpose : Earnings forecasts are essential for valuation, and a bleak coverage of analysts’ forecasts in emerging economies withholds the valuation research and practices. This study compared the pooled cross-sectional earnings forecasting models in the Indian market to choose alternative sources for earnings forecasts to solve the unavailability of analysts’ earnings forecasts. Specifically, evaluating the theoretical earnings forecasting models of three different propositions: the earnings persistence (Li & Mohanram, 2014, EP) model, the Hou, Van Dijk, and Zhang (2012, HVZ) model, and the Pope and Wang (Harris & Wang, 2019, PW) model. Methodology : This study considered all companies listed on NSE from 1995 – 2022 in an unbalanced panel structure with 36,591 firm years observations. Robust regression was used for the coefficient estimation because of its capability to handle outliers and provide a better model fit. Findings : The results showed that the pooled cross-sectional models are reasonably accurate with the Indian data, restricting average forecast errors between 3% to 10%. The coefficient of earnings greater than one across models signified a high persistence in earnings. The PW model outperformed the other two models in the short run with share prices as predictor variables; whereas, the EP model performed best in the long run. The PW and EP forecast offered incremental information fully encompassing the HVZ forecast. Practical Implications : This study elevated the application of valuation in theories in research and managerial practices where firms’earnings forecasts are an essential input. Originality : This study uniquely compared the earning forecasting models of three proportions in a single setup to validate and suggest sources of earnings forecast for the Indian capital market.","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":"105 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136035453","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"XBRL Adoption and Information Asymmetry : Evidence from the Indian Capital Market","authors":"Sushant Gupta, Ajay Chandel, Lalit Bhalla","doi":"10.17010/ijf/2023/v17i7/170240","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i7/170240","url":null,"abstract":"Purpose : The study was conducted in the context of the Indian capital market to find out the effect of adopting XBRL (eXtensible Business Reporting Language) on the reduction of information asymmetry and the impact of XBRL on the trading volume of the market. Methodology : In the current study, trading volume has been taken as the proxy variable to study the impact of XBRL adoption on information asymmetry. The study focused on the pre-and postadoption XBRL effect on information asymmetry, followed by the influence of the implementation of XBRL, which is measured by taking the trading volume of the Indian capital market as a proxy variable. Data for 270 listed firms were collected for this research during a 20-year period, from 2001–2020, including 11 years before the implementation of XBRL and 9 years after it. Findings : There is a significant difference in the information asymmetry pre- and post-adoption of XBRL by Indian listed firms. A strong positive and significant relationship has been found between XBRL and the trading volume of the Indian capital market due to a reduction in information asymmetry. Practical Implications : Listed companies might increase investments by offering their stakeholders XBRL-enabled software and services. Regulatory authorities can also enable companies to disclose reports that are useful to decision-making stakeholders according to the XBRL taxonomy. The adoption of XBRL helps reduce information asymmetry, increase companies’ valuation, and lower the cost of capital. Originality : This study contributes to the financial reporting and Indian capital markets fields. This study contributes to the literature by identifying the impact on Indian capital markets post-adoption of XBRL.","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135852685","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Impact of Non-Performing Assets on Financial Performance of Selected Merged Indian Public Sector Banks","authors":"Parmod Kumar Sharma, Babli Dhiman","doi":"10.17010/ijf/2023/v17i7/172829","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i7/172829","url":null,"abstract":"Purpose : The Government of India (GOI) restructured 13 public sector banks (PSBs) into five by amalgamation in recent years. The basis of their merger was not in the public domain. However, it was understood that the underlying reason was to obviate the need for repeated recapitalization of these banks due to the deterioration of their financials and the resultant erosion of their capital. The rising non-performing assets (NPAs) seemed to have impacted the financial performance of banks adversely, necessitating their restructuring. Therefore, the consolidation of the public sector banks aimed to make them bigger and stronger, enabling them to gain operational efficiency and access the market for their capital requirements. This study analyzed the impact of gross NPA (GNPA) on important financial ratios of public sector banks, including profitability ratios like ROA, ROE, and NIM, through correlation and regression analysis. An attempt was also made to find similarities in financial performance among different groups of amalgamated banks. Methodology : The sample of two merged bank groups with Punjab National Bank and Union Bank of India as anchor banks were put to statistical tests on the basis of secondary data for the period from 2011–2020. Tools like ratio analysis, descriptive stats, Pearson correlation, and linear regression were used to evaluate the extent to which GNPA impacted the financial performance of PSBs. Findings : The results indicated a negative correlation between the GNPA of PSBs and other key financial variables like CD ratio, NIM, ROA, ROE, and CAR. Also, the study highlighted the merger of weaker public sector banks with stronger ones. Practical Implications : On the basis of the factors and model of our study, the Government of India can decide to restructure some more banks in the future by way of mergers with banks already restructured or through the privatization route as earlier announced by the Finance Minister in her Budget speech of 2021. Originality : The earlier studies focused on finding the impact of financial indicators on the growth of NPAs; whereas, this study attempted to explore the negative effect of GNPA on the financial performance of banks.","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135852686","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Optimism and Self-Control : Complementary Predictors of Financial Risk-Taking Propensity Among Working Adults","authors":"Crystal Glenda Rodrigues, Gopalakrishna B. V.","doi":"10.17010/ijf/2023/v17i7/170966","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i7/170966","url":null,"abstract":"Purpose : The article aimed to investigate the complementary strength of two behavioral traits, namely, optimism and self-control, on the financial risk-taking propensity of working adults in India. In addition, the moderating effect of gender on the relationship of optimism and self-control with financial risk-taking propensity was examined. Methodology : The study adopted a cross-sectional-based survey approach with a sample consisting of 522 individuals of age 18 and above with diverse demographic characteristics. Purposive and convenience sampling techniques were employed for collecting data through a self-administered questionnaire. Structural equation modeling (SEM) was used to test the study’s hypotheses using the IBM AMOS software. Findings : The results revealed a positive association between optimism and financial risk-taking, while self-control showed a negative association. Further, the relationship between optimism and risk-taking propensity was moderated by gender, and this relationship was more pronounced among females. The study also revealed a contradictory finding which showed greater levels of optimism among females compared to males as opposed to prior research findings. Practical Implications : The study finds its importance among academicians who want to explore the complementary strengths of optimism and self-control in various other decision-making contexts. Financial service providers can look into the behavioral traits of optimism and self-control of their clients while assisting them in making financial decisions. Originality : The present study is unique as optimism and self-control as complementary predictors of the financial risk-taking propensity of working individuals have not been explored in the Indian context.","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":"108 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135852688","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Overseas Direct Investments to the Wholly Owned Subsidiaries and Their Association with Indian Macroeconomic Factors","authors":"D. Vijayalakshmi, Shalini K. Menon","doi":"10.17010/ijf/2023/v17i7/170039","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i7/170039","url":null,"abstract":"Purpose : The present study focused on analyzing the macroeconomic factors of the home country (India) before investing in a wholly owned subsidiary (WOS) established in a foreign country. When an investment is made in a WOS, the entity must focus on several factors that would ensure profitability in the long run. Methodology : The overseas investments to the WOS are made through equity, loan, and guarantee or a combination of the same. The study considered the total overseas direct investments to the WOSs. The performance of the total overseas investments was analyzed using descriptive statistics. The short-run and long-run associations between the total overseas direct investment and the macroeconomic factors of the home country were estimated by employing the Granger causality test and Johansen cointegration test. Findings : The results proved the existence of a short-run association between select macroeconomic factors and overseas investments. A long-run association also existed between the variables. Practical Implications : Apart from firm-specific factors, several macroeconomic factors should also be considered before investing. In this context, the study focused on the performance of the ODI from India to the WOS in particular and the home country’s macroeconomic factors that should be evaluated before investing in a foreign country. Originality : Although several research studies were conducted on the performance and growth of overseas direct investments, studies about investments to the WOSs established abroad is a new research dimension in the area of overseas direct investments in the Indian scenario.","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":"59 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135852687","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Are Liquidity and Credit Risk Key Determinants of Corporate Credit Spreads (CCS) in India?","authors":"L. B. M., S. Chakraborty, N. M. N.","doi":"10.17010/ijf/2023/v17i6/172773","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i6/172773","url":null,"abstract":"","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44461357","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Economic Policy Uncertainty and Government Bond Prices","authors":"Muhammadriyaj Faniband, Pravin Jadhav","doi":"10.17010/ijf/2023/v17i6/171549","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i6/171549","url":null,"abstract":"","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44717908","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Factors Impacting Corporate Social Responsibility of Top Firms Listed in India","authors":"Vikas Behal, Rajinder Kumar Uppal","doi":"10.17010/ijf/2023/v17i6/171974","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i6/171974","url":null,"abstract":"","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45226778","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"What Determines the Efficiency of Working Capital Among Rajasthan MSMEs?","authors":"S. Chadha, Deepak Kumar Tripathi, Ankita Tripathi","doi":"10.17010/ijf/2023/v17i6/171942","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i6/171942","url":null,"abstract":"","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67524474","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Academic Research on Indian Mutual Funds : A Systematic Review","authors":"Aditi Mohan, N. S. Bohra","doi":"10.17010/ijf/2023/v17i5/170161","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i5/170161","url":null,"abstract":"","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-05-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44081989","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}