American Finance & Banking Society [Affiliated Societies]
GREEN BANKING INITIATIVES FOR SUSTAINABLE DEVELOPMENT: PRACTICES AND PERFORMANCE OF COMMERCIAL BANKS
Concerns about environmental sustainability and climate change have prompted commercial banks to adopt green initiatives, such as dedicated "Green Funds" and eco-friendly products, to support sustainable development. Regulatory frameworks and stakeholder pressures are driving banks to integrate environmental responsibility and corporate social responsibility into their operations. Green banking is defined as integrating environmentally friendly practices, such as sustainable lending, carbon footprint reduction, and financing for renewable energy, into banking operations. Standard practices include funding eco-friendly projects and minimizing the bank's carbon footprint. These initiatives aim to align financial activities with ecological conservation and long-term economic stability. This study examines green banking practices across 10 commercial banks (5 public, 5 private) in Jaipur, India, focusing on their impact on banks' environmental Performance. A survey using structured questionnaires collected data from 161 bank employees (including branch managers, branch heads, relationship managers, and assistant managers) across all ten banks. Subsequently, correlation and regression analysis were conducted to assess the relationship between green practices and environmental performance indicators. The results reveal a statistically significant and positive impact of green banking on the environmental Performance of both public and private sector banks. Quantitatively, the regression model explains about 71.3% of the Variance in the ecological performance measure (R² =0.713), indicating that sustainability-oriented practices substantially improve outcomes. The major finding is that green banking initiatives alone account for roughly 71.3% of the variation in banks' environmental outcomes in this sample. Overall, these results highlight the strong empirical association between banks' green initiatives and their environmental Performance. JEL Classification Codes: G21, G41, E44.
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper
Green Banking, Banks’ Environmental Performance, Green Banking Practices, Sustainability, Sustainable Development
Copyright (c) 2025 Shaifali Mathur , Sakshee Lakhani http://creativecommons.org/licenses/by/4.0
TESTING SEMI-STRONG FORM MARKET EFFICIENCY: THE CASE OF INDIAN PHARMA SECTORS
The Efficient Market Hypothesis (EMH) holds that security prices fully reflect all publicly available information, leaving no scope for abnormal gains from fundamental or technical analysis. Despite extensive research, the semi-strong form of EMH remains inconclusive in developing markets. This study examines the degree of semi-strong-form efficiency in the Indian pharmaceutical industry. It explores how effectively the stock prices of leading firms, Sun Pharmaceutical, Dr. Reddy’s Laboratories, Zydus Life Sciences, Cipla, and Torrent Pharmaceuticals, reflect publicly accessible information. The analysis covers five years from 2018–19 to 2022–23 and utilizes the Core Competency Strategic Intent (CCSI) model to assess the relationship between firm fundamentals and market valuation. Tobin's Q (market value to book value) and employee cost as a percentage of sales are considered representative indicators of valuation and strategic intent. Empirical results show that stock prices in this sector respond more rapidly to short-term, quantifiable factors such as sales performance. In contrast, long-term strategic elements exert a weaker effect on valuation. A numerical evaluation of Tobin's Q across firms indicates varying degrees of mispricing, suggesting both overvaluation and undervaluation. Overall, the study finds that the Indian pharmaceutical sector exhibits only partial adherence to the semi-strong form of market efficiency, as investors appear to prioritize immediate financial outcomes over comprehensive strategic fundamentals. JEL Classification Codes: G12, G14.
Aggressiveness Index, Semi-Strong Market Efficiency, Tobin's Q
Copyright (c) 2025 Janvi Joshi , Krunal Joshi http://creativecommons.org/licenses/by/4.0
SHIFT FROM BANK DEPOSITS TO INVESTMENTS IN INDIA: IMPLICATIONS FOR BANKING STABILITY
Over the last twenty years, the financial landscape of Indian households has undergone a significant transformation, characterized by a decline in dependence on traditional bank deposits and an increasing preference for market-oriented investment options. This shift reflects broader changes in financial behavior driven by macroeconomic factors, shifting consumer preferences, and advancements in financial technology. This study aims to explore the transition from traditional bank deposits to alternative investment opportunities in India and assess their impact on the liquidity and stability of the banking sector. By examining long-term trends, the research considers the determinants of this shift, including GDP growth, inflation, interest rates, financial literacy, and engagement with digital platforms. A mixed-methods approach is utilized, integrating quantitative analysis of secondary data sourced from the Reserve Bank of India (RBI), AMFI, and leading commercial banks, alongside qualitative insights drawn from existing literature and publicly accessible datasets. Analytical tools such as regression analysis, correlation metrics, and pivot tables are employed to investigate the relationships among macroeconomic indicators, deposit behaviors, and investment trends. The findings indicate a strong positive correlation between GDP and both deposits and investments. In contrast, financial literacy and digital engagement exhibit a significant inverse relationship with deposit preferences and a direct correlation with investment decisions. Additionally, regression analysis reveals that factors beyond traditional interest rates and banking metrics are increasingly influencing the growth of investments. These results highlight the evolving dynamics of household financial behavior in India and their long-term implications for deposit mobilization and the operational frameworks of commercial banks. JEL Classification Codes: G21, G41, E44.
Financial Behaviour, Investments Preferences, Bank Liquidity, Financial Literacy, Fintech Platforms, India, Household Savings, Monetary Policy, Digital Finance, Banking
Copyright (c) 2025 Rukmini Mundhara http://creativecommons.org/licenses/by/4.0
A CASE STUDY ON RISK MANAGEMENT SYSTEM OF A RURAL COOPERATIVE BANK IN INDIA
Rural Cooperative Banks (RCBs) are supervised by National Bank for Agriculture and Rural Development (NABARD) under CAMELSC rating framework. The CAMELSC model is principally performance-oriented while risk factors are not effectively incorporated. NABARD’s Enhanced CAMELSC model, which will be fully implemented by the end of FY26, includes additional risk and control indicators. The purpose of this study is to examine liquidity risk, interest rate risk and credit risk of a District Cooperative Central Bank (DCCB) having good financial position as per the C, A, E and L components of CAMELSC model. Name and data of the bank have been partially modified to maintain confidentiality of the data not available in public domain. The study is based on policies, committee proceedings and quantitative data obtained from a DCCB, discussion with bank officials, and periodic returns submitted to NABARD. The study employed various guidelines by RBI and NABARD. The stock and flow approaches suggested that the bank had moderate liquidity risk. Application of Interest Rate Sensitivity Statements, Macaulay Duration of investment portfolio, and MCLR methodology for interest rate benchmarking showed low interest rate risk. Altman’s z-score model illustrated credit risk in institutional clients viz. PACS and logistic regression model for retail customer scoring indicated limitation in capturing credit risk of its retail customers. The capital adequacy assessment also indicated the bank had insufficient RoA to give dividend as per its mandate. Bank did not have governance mechanism in place such as Credit Risk Management Committee or having effective ALCO to carry out executive functions of monitoring and controlling risk controls/ limits as per the policy. JEL Classification Codes: G21, G28.
Risk Management Systems, Risk Governance, Rural Cooperative Banks, District Cooperative Central Bank
PRACTICALITIES OF AGENT BANKING FOR FINANCIAL INCLUSION IN RURAL AREAS OF BANGLADESH
Agent banking is an indispensable part of the inclusive banking system for advancing greater financial inclusion in Bangladesh. These services represent the new extension of branch banking, offering formal banking services in rural regions at a low cost via agents and outlets. The purpose of this study is to examine the agent banking practical uses to meet the financial services needs of the rural population in Bangladesh. Moreover, this study investigates the relation between agent banking presence in rural areas and its uses. Five years of secondary data regarding agent banking have been collected from the statistics department of Bangladesh Bank and presented in tabular form. Besides, to portrait the real picture of practical uses of agent banking, a rural user’s case study has been used in this study. Descriptive with an analytical approach has also been used to analyze the data. Besides, correlation analysis has also been used to measure the relation between agents, outlets, and rural practices. This study found that agent banking services are practically used in rural areas for deposit collection, loan disbursements, remittance services, and utility bill payment. Moreover, it has discovered a favorable relationship between agent banking presence and useful applications in rural areas. The practical applications of the agent banking have advanced significantly in rural areas and included those who were previously denied access to these financial services. While the number of agents and outlets are not sufficient, total rural account holders in agent banking remain low compared to the rural adult population. JEL Classification Codes: G21, G51, G53, C87.
Agent Banking, Rural Financial Inclusion, Agent, Outlets, Correlation.
Copyright (c) 2024 Mohammad Rezaul Kabir, Kaniz Fatema, Ashok Bijoy Das, Nityananda Chandra Barman
THE SLOWDOWN IN FINTECH MERGERS & ACQUISITIONS: ANALYZING MAJOR GLOBAL DEALS AND SECTORAL IMPLICATIONS FOR 2023
The FinTech sector, characterized by rapid innovation and growth, has witnessed a significant slowdown in mergers and acquisitions (M&A) during 2023. This contraction contrasts sharply with previous years, where deal activity was driven by strong market demand for disruptive technologies. Rising inflation, higher interest rates, and economic uncertainty have prompted firms to exercise caution, delaying or downsizing strategic acquisitions. This study investigates the reasons behind the reduction in FinTech M&A activity and its implications for firms operating in the sector. The research examines major M&A transactions in 2023, focusing on firms across key FinTech sub-sectors such as payments, SaaS, and wealth management. Data from financial databases such as Bloomberg and Dealogic were analyzed, alongside industry reports and public disclosures, to evaluate deal volumes, financial metrics, and strategic motivations. A combination of quantitative financial analysis and qualitative case studies was used to assess the financial health of acquiring firms and their post-merger performance. The results reveal that economic factors, particularly rising borrowing costs and inflationary pressures, have significantly impacted the number and scale of FinTech M&A deals in 2023. However, high-growth segments like payments and SaaS continue to attract strategic investments. The findings suggest that while overall deal activity has contracted, firms focusing on select acquisitions in high-growth areas are likely to achieve long-term competitive advantages. The analysis also highlights the growing importance of operational efficiency in M&A strategies, as companies navigate an uncertain economic landscape. JEL Classification Codes: G34, G21, O33.
FinTech, Mergers & Acquisitions, Economic Slowdown, Inflation, Interest Rates .
MICROFINANCE AND WOMEN MICROENTREPRENEURS: KEY VARIABLES INFLUENCING SOCIO-ECONOMIC AND FINANCIAL SUCCESS
As Bangladesh has almost a 49.5:50.5 ratio of male to female, the utilization of women workforce in GDP is very significant where microfinance has been enabling women to initiate microenterprises since 1974. That microfinance can contribute to the socio-economic and entrepreneurial financial success of women required proper investigation. This study examines whether microfinance impacts the socio-economic development of women microentrepreneurs and whether microfinance impacts the financial performance of women-led microenterprises. This primary and secondary database-driven mixed-methods study surveys from 273 women-led microentrepreneurs using a homogenous survey questionnaire and their enterprises throughout Bangladesh. The study employs primary responses from the women microentrepreneurs and utilized Ordinary Least Squares (OLS) and Ordered Logit (Ologit) regression to analyze the mutual relationship between the socio-economic development of women microentrepreneurs and the seven explanatory variables including four relevant control variables to meet the first research objective. The study has also used a paired t-test methodology to meet the second research objective, comparing the microenterprises’ three years' average net income before and after taking microfinance. The results reveal that microfinance has a significant impact on their socio-economic development where all the independent variables except Q4IV and control variable Q8CV have shown significant relation with dependent variable. Additionally, the study confirms a statistically significant relationship between microfinance and the financial performance of those microenterprises. The study contributes to the field of research with a mixed-methods statistical facility to analyze microfinance's impact on both socio-economic and financial performance dimensions of women microentrepreneurs using both primary and secondary data. JEL Classification Codes: G21, O16, J16, L26.
Bangladesh, Entrepreneurship, Financial Performance, Microenterprise, Microfinance, Socio-economic Development, Women Empowerment, Women Microentrepreneurs.
Copyright (c) 2024 Gourav Roy, Popy Rani Sarkar
TO INVESTIGATE THE TREND AND EXPANSION OF PRIVATE EQUITY INVESTMENT IN INDIA
This paper delves into India's burgeoning realm of private equity investment, examining its growth trends, sectoral preferences, and risk profile. Utilizing log-lin regression analysis of detailed data from 2012 to 2022, we unveil insights into deal value and volume for investments and exits. Our findings paint a nuanced picture. While India presents compelling opportunities, it also harbours inherent risks for private equity players. Notably, 2020 witnessed the highest influx and divestment of capital, highlighting the dynamic nature of the market. Construction, information technology, and real estate are the hottest sectors, attracting significant investor attention. The quantitative analysis reveals a steady annual growth of 5.4% in private equity investment value, further bolstered by a notable 3.4% weekly increase. These robust figures solidify India's position as a burgeoning private equity hub. Furthermore, we venture beyond historical patterns, offering valuable predictions for the next ten years. This vital forecast equips investors and stakeholders with critical insights to navigate the evolving landscape of Indian private equity. In conclusion, this study comprehensively analyses private equity's rise and inherent risks within the Indian context. Through data-driven insights and future projections, it empowers informed decision-making and strategic planning for navigating the promising yet dynamic realm of private equity in India. JEL Classification Codes: E22, L16.
Private Equity, India, Investment, Risk, Growth, Log-Lin Regression, Predictions, Exit, Construction, Information Technology, Real Estate.
CAMEL MODEL ANALYSIS AND DISCRIMINANT ANALYSIS OF COMMERCIAL BANKS’ PERFORMANCE IN GUYANA, SOUTH AMERICA
The study evaluates the performance of commercial banks in Guyana using prudential ratios that capture the five essential dimensions of a bank’s operation. It applies the CAMEL rating system and Linear Discriminant Analysis on quarterly prudential ratios of all the commercial banks that operated in Guyana between 2017 and 2021. The CAMEL analysis reveals that Demerara Bank Limited (DBL) is the best-performing bank, and the Guyana Bank for Trade and Industry (GBTI) is the worst-performing bank. However, the one-way ANOVA technique suggests no significant differences between the average values of the prudential ratios in the CAMEL model. Based on the Linear Discriminant Analysis, only four ratios differentiate between good-performing and poor-performing banks. These findings provide valuable insights to regulators that employ these tools to identify poor-performing banks to safeguard the stability and soundness of their domestic banking system. By applying the CAMEL rating system and Linear Discriminant Analysis simultaneously in Guyana, an emerging economy in the Caribbean, for the first time, the study contributes to the literature that utilizes these tools to assess the performance of commercial banks. JEL Classification Codes: G21, G24, L25.
CAMEL Model, Prudential Ratios, Discriminant Analysis, Indigenous Banks, and Foreign Banks.
Copyright (c) 2023 Vincent A. Raja, Sukrishnalall Pasha, Kumar Ganapathy, Maria Christy
EQUITY PRICE DETERMINANTS OF INDIA'S NIFTY NEXT 50 INDEX FIRMS'
An investor must perform research on a stock before investing in it. It becomes critical for a financially savvy investor. As a result, stock prices have long been a source of attraction. Researchers have worked hard to identify the elements influencing stock prices and returns. This paper is an attempt to identify the factors predicting the market price of Equity in India. The secondary data about 2017 to 2022 of NIFTY's Next 50 index companies is analyzed using OLS regression. The findings of the regression are ratified through a qualitative approach by the semi-structured open-ended survey and interviewing experts. The obtained responses are transcribed and coded. Matrix coding has been performed using a qualitative tool such as NVivo to understand the pattern of codes. The study finds that dividend rate, book value, and return on net worth are statistically significant and positively influence the market price of sample firms. Debt to equity ratio has a negative impact on market price. Economic value added (EVA) was found to be a new variable that significantly impacted the market price of shares. The study findings are helpful to the market participants to make wise and knowledge-based investment decisions. The study's findings will also add to the existing body of knowledge regarding stock valuation. JEL Classification Codes: C53, C55, G12, G17, O16.
Equity Price, Determinants, Regression, EVA, India.
Copyright (c) 2023 Amit Hedau, Sarbesh Mishra
IMPACT OF PRADHAN MANTRI JAN DHAN YOJANA PROGRAM ON ACCESS TO CREDIT
This research paper investigates the impacts of the Pradhan Mantri Jan Dhan Yojana (PMJDY) program on access to credit for individuals living below the poverty line in India since its inception in 2014. The PMJDY initiative aims to enhance financial inclusion and alleviate poverty by providing banking services and credit access to marginalized populations. The paper begins with a comprehensive literature review, tracing the historical context of financial inclusion in India, the evolution of policies, and previous research on the subject. It then delves into the PMJDY program's features, implementation, and progress, highlighting its efforts to offer zero-balance accounts and overdraft facilities. The paper employs regression analyses, both at the national and district levels, to examine the relationship between various factors, such as GDP per capita, population density, literacy rates, and PMJDY adoption. These analyses had shed light on the success of the PMJDY program in advancing financial inclusion throughout different regional dynamics. The findings provide insights into the program's effectiveness in improving credit access for the economically disadvantaged. Ultimately, this research contributes to the ongoing discourse on financial inclusion and informs policymakers on strategies to combat poverty and foster inclusive economic growth especially with policies relating to credit access. JEL Classification Codes: C00, B21, G18, G53.
Access to Credit, Banking Services, Financial inclusion, Poverty Alleviation.
DEMYSTIFYING THE MISERY BEHIND LOAN APPS IN INDIA
Digital lending contributed to meeting the financial needs of people who had otherwise faced many difficulties in getting the required money in a very short period of time. All that comes with ease cannot be presumed to have a happy ending. Loan apps increased and created havoc. In the wake of many undesirable situations leading to the suicidal deaths of people who have fallen prey to unscrupulous lending through loan apps, this paper tries to bring into light the digital loan apps and their features, the factors responsible for unscrupulous digital lending, the mechanism adopted by loan apps operators to cheat and harass the borrowers, and finally studies the intervention by the regulatory bodies. The loan app operators leveraged the gaps in the regulatory system to override their business coupled with the dire need of people to raise easy finance via loan apps. This paper aims to explore the RBI (Reserve Bank of India), the regulatory body for the supervision and control of the banking system of India, guidelines on digital lending, and provide precautions to whosoever wants to avail finance through digital loans. The data is collected from the report published by the RBI and various articles from the electronic media. The study highlights that the financial user must be vigilant at every step in the loan availing process and ensure that the process happens transparently and within the regulatory ambit laid by the RBI. JEL Classification Codes: G2, G21, K000, K240.
Digital Lending, Digital Lending Apps, Lending Service Provider (LSP), Know Your Customer (KYC).
INTERNAL AUDITOR CHARACTERISTICS AND FINANCIAL REPORTING QUALITY: EVIDENCE FROM BANGLADESH
This study aims to examine the relationship between internal auditor characteristics and financial reporting quality in the context of the banking sector in Bangladesh. To achieve this objective, this study used a quantitative research methodology by using a questionnaire survey. Data were collected (495 respondents from 45 banks) from the internal auditors of banking companies in Bangladesh which cover 78% of the population. This study uses five important characteristics of internal auditors as exogenous variables such as auditors’ independence, auditor proficiency, professional qualification, auditors’ experiences, and the leadership style of the chief audit executive. SmartPls-4 is used as statistical software to determine the relationship between exogenous and endogenous constructs. Findings indicate that professional qualification has the highest positive significant impact on financial reporting quality. Results also revealed that other characteristics like au auditors’ independence, auditor proficiency, and auditors’ experiences has also positive significant effects on financial reporting quality. However, the leadership style of the chief audit executive has no positive significant impact on financial reporting quality. The findings of this study encourage the level of understanding of the internal auditors, regulators, top management, policy maker of the organization, investors, and other stakeholders regarding the quality of financial reporting of banking sectors in the perspective of an emerging economy. JEL Classification Codes: M40, M41, M42, H83, F65.
Financial Reporting Quality, Auditor Characteristics.
Copyright (c) 2023 Md Gulam Sharoar Hossain Khan
VALUE DRIVERS OF BANK EQUITY MARKET PRICE
The Indian banking sector has shown robustness and resilience in the face of challenges on account of rising non-performing assets and economic upheavals. The market value of bank equity is a reflection of the financial performance of banks and macroeconomic factors. 22 bank-specific variables and 5 macroeconomic factors representing profit management, capital management, shareholder value management and risk and leverage management, India’s Real GDP Growth Rates (Factor Cost), Money Supply growth, Bank Credit growth, Deposit growth rate and Inflation are used in this study. 19440 observations are examined from the financial data of 40 commercial banks (private and public sector banks for a period of eighteen years. The data is analyzed using panel regression. Hausman and Pagan's test was conducted to find the best-fit model. The results show that Finance Charge Coverage (FCCR), Advance Loan funds, Current Ratio, Beta and Asset Turnover have a negative impact on bank equity value and Activity Mix, Revenue Efficiency, Earnings Retention, and Cost Management shows a positive significant relationship with equity value. Factors like FCCR affects the market values of public sector banks and private sector banks differently Growth in GDP, Inflation shows a positive relationship with the market value of bank equity. Growth in Money Supply has a differential impact on the market value of private sector banks and public sector banks. The results provide useful insights to understand the determinants of the market value of bank equity. It can help bankers frame strategies to maintain and enhance the market value of their equity. JEL Classification Codes: E52, E58, M41.
Bank equity, Market value, Indian Banks, Macro-Economic Factors, Value Drivers.
Copyright (c) 2023 Chitra Gounder, Jyoti Nair
STARTUP SUSTAINABILITY BASED ON GOVERNMENT, TECHNOLOGY, AND MARKET: EMPIRICAL STUDY MEDIATION OF PERFORMANCE & SATISFACTION
Start-ups are one of the driving forces of growth and development for developed economies, although emerging economies are now striving to encourage start-ups for the advancement of the country with the support of the startup ecosystem. However, 90 percent of the start-ups failed within a year of their establishment. This study focuses on the factor affecting the sustainability of start-ups, and it is based on primary data collected from 384 start-ups in India. This empirical study analyzed, whether factors such as government support, market orientation, and technology orientation, affected the sustainability of the start-ups by using entrepreneurial satisfaction and performance of the start-ups as the mediators. Correspondingly, the study analyzes the mediation effect of entrepreneurial satisfaction between performance and startup sustainability. The results conveyed that government support, and technology affected startup business sustainability by fostering startup enterprise performance and entrepreneurial satisfaction, while market orientation does not mediate business sustainability using startup enterprise performance as the mediator, and technology orientation affected startup business sustainability with entrepreneurial satisfaction as the mediator. JEL Classification Codes: E20.
Startups, Sustainability, Satisfaction, Performance, Market Orientation, Government Support, Technology, Incubators.
Copyright (c) 2023 Shivani Shivhare, Nupur ., V Shunmugasundaram
AN EMPIRICAL STUDY OF CUSTOMER SATISFACTION TOWARDS E-BANKING SERVICES IN DELHI
Digital solutions are a must for Gen Next banking. There has been a surge in tech-enabled digital payments marking a shift in the operations of banks vis-a-vis technology and customer behavioural patterns. The last two years have witnessed a significant rise in digital transactions from 40 billion in 2020 to 87 billion in 2021 in India. Given the increasing preference for contactless banking, banks need to understand their customers better. The purpose of the study is to gauge customer perception towards e-banking services. The study uses the following variables, namely, user interface, content, communication, responsiveness, customer support services, data protection and recommendation of banks to others to find out the relationship with the age of the customers. The questionnaire method is used for conducting the study with a sample size of 200 customers. The cross-tabulation statistical test is applied using SPSS software for data analysis. The study covers the post-pandemic period and chalks out the strategies to increase digitalization in the banking industry which is required for the sector to flourish. Key findings indicate that the banking industry's current framework needs to find secure solutions to reduce online crimes and e-banking fraud. Based on the findings, better instruments and mechanisms for e-banking services must be put in place. It is recommended to develop a customized user interface for e-banking applications, enforce cyber laws and regulations to curb e-banking frauds and assist customers by setting up in-house cyber redressal cells. Based on time constraints, the study is limited only to 200 customers and the findings rest on the opinion and perception of our chosen sample size. JEL Classification Codes: G21, G28.
E-Banking, Technology, Digital Financial Services, Customer Satisfaction.
Copyright (c) 2023 Sana Parveen, Vardah Saghir, Sana Beg
IMPACT OF FIRM PERFORMANCE ON STOCK RETURNS: EVIDENCE FROM LARGE-CAP, MID-CAP AND SMALL-CAP STOCKS
In this article, we analyse the impact of firm specific factors, namely, total income, net profit, and earnings per share (EPS) on stock returns of companies from the large cap, mid-cap and small- cap (LMS) categories using the panel quantile regression. We also use the ordinary least square method to compare our panel regression results. We select companies from NSE Large Cap100, NSE Mid Cap 100 and NSE Small Cap 100 Indices and each index is composed of 100 companies. These indices reflect the overall state of the Indian stock market. Our empirical analysis based on quarterly data from June 2010 to March 2022 shows some important findings. First, net sales significantly and negatively affect stock returns across the large, mid, and small cap stocks. Second, net profit and EPS have a substantial and positive impact on companies from all the categories. However, the coefficients are not significant across all quantiles. In short, the impact of firm specific factors on stock returns is not homogeneous across the LMS stocks implying that these factors do not influence stocks in a uniform way. The plausible reason may be that large, mid, and small cap companies share differences in terms of market capitalisation, growth potential and volatility. JEL Classification Codes: C31, G11, G12, G32, L25.
Firm Performance, Net Sales, Net Profit, EPS, Stock Return.
Copyright (c) 2023 Muhammadriyaj Faniband, Pravin Jadhav, Kedar Marulkar
EXAMINING CONVENIENCE, WEBSITE DESIGN & SOCIAL INFLUENCE AS DETERMINANTS OF USERS’ INTENTION TO USE FINTECH SERVICES
An amalgamation of the financial sector with information technology has brought a tremendous transformation in the financial services sector that resulted in FinTech, which is an invention that makes it easier and more convenient for users to conduct financial transactions digitally. So, the present study aims to examine Convenience (C), Website Design (WB) & Social Influence (SI) as the determinants of users’ Intention to Use (ITU) FinTech Services. For the study, we collected data through a survey instrument using the hybrid mode of data collection from 257 FinTech users. Data analysis and hypotheses testing was done by using SmartPLS 4 software. The findings of the study concluded that determinants namely, Convenience (C), Website Design (WB) & Social Influence (SI) have a significant positive influence on users’ Intention to Use (ITU) FinTech Services. Hence, all hypotheses framed in the study were accepted. The outcome of this study will facilitate FinTech service providers to design more specialized services for their consumers. Further, it contributes to the literature concerned with the FinTech service sector and antecedents of ITU FinTech services. JEL Classification Codes: G41, O30, O31, 033.
Convenience, FinTech Services, Financial Technology, Social Influence, Website Design.
Copyright (c) 2023 V Shunmugasundaram, Shanu Srivastava
CORPORATE GOVERNANCE AND FIRMS’ PERFORMANCE: EVIDENCE FROM DHAKA STOCK EXCHANGE
Well-managed corporate governance mechanisms play an important role in improving corporate performance. Good corporate governance is fundamental for a firm in different ways; it improves company image, increases shareholders' confidence, and reduces the risk of fraudulent activities. This research aims to investigate the relationship between corporate governance and firm performance in a sample of 58 companies listed on the Dhaka Stock Exchange (DSE) using the data of 2016-2021. For this objective, this study used a number of corporate governance indices, including board size, board independence, members of the audit committee, and board effectiveness. The impact of those indices has been analyzed on the performance indicators of a firm like EPS, ROA and ROE. In this research, firm size and leverage ratio serve as control variables. In addition, the influence of independent factors on dependent variables has been analyzed using multiple linear regression. From the regression, the study found that board independence is a solo factor that is significant on the firm performance and has a positive impact. This research also observed no statistically significant correlation between Board Size, Board Effectiveness, and Audit Committee on the firms’ performance. JEL Classification Codes: A1, A30, C1, G17, Y8.
Corporate Governance (CG), ROA, ROE, EPS, Firm Performance, Board Effectiveness, Board of Directors, Audit Committee.
Copyright (c) 2023 Shaikh Masrick Hasan, Sk. Alamgir Hossain, Roushanara Islam, Md. Mahedi Hasan
INDIAN MOBILE BANKING IN POST COVID-19: AN ANALYTICAL STUDY AND GRATIFICATION FROM THE ASPECT OF KANO MODEL
The purpose of the present research paper is to understand the research questions related to M-banking. It is the time call to take up Virtual Banking (VB) with Zero Contact Banking (ZCB) as a preventive measure to COVID-19. The study also admits the comparative analysis on the gratification of M-banking users considering factors/attributes of the Kano Model. The researcher has undertaken Integrative Approach (IA) for both, related to literature reviewed and survey so far observed. Both primary data through well-structured questionnaires from 900 M-banking users of SBI, HDFC, and Citi Bank (300 from each) and secondary data from published sources have been cantered and cited to understand the syntactic research gap. The researcher has followed Stratified Random Sampling for sample banks considering the date of establishment, volume and value of M-banking transactions, number of employees, and Convenient Random Sampling for M-banking users, to make the sample representative. The objectives were studied thoroughly and hypotheses were tested in SPSS. The researcher has used Kolmogorov-Smirnov (D-Statistic) and Shapiro-Wilk test (W-Statistic) to test data normality, Cronbachs’ Alpha to test Data Reliability, Descriptive Statistics i.e. frequency and per cent count to describe data and Chi-square to measure significant associations and differences if any. The researcher has drawn an epilogue purely on the basis of data collection and analysis. The researcher has conducted Pearson’s Product Movement Correlation, to suggest a correlation on Y-intercept Model to show an association between volume and value of M-banking transactions of SBI, HDFC, and Citi Bank and suggested a model fit to regression equation. This paper gives a unique insight into KANO model. JEL Classification Codes: A1, A30, C1, G17, Y8.
Virtual Banking, Gratification, Kano Model, Marketing Research Theory.
Copyright (c) 2023 Bhadane Jaywant, Rajiv Nayan, Gaikar Vilas Bhau, Kawaljit Singh, Joshi Bharat
AN EMPIRICAL STUDY OF INTEGRATED REPORTING PRACTICES AS VOLUNTARY DISCLOSURES IN INDIAN ENERGY COMPANIES
Integrated Reporting (IR) provides various stakeholders with a wide range of highly informative and analytical value. The literature on IR reflects a positive view towards adopting IR practices, and the Security Exchange Board of India (SEBI) suggested that the top 500 listed entities followed IR practices voluntarily in Feb 2017. Therefore this study examined the trend and disclosure of IR followed by select Indian energy companies in a comparative manner sector-wise and operational area-wise from Financial Year (FY) 2017-18 to 2021-22. The top four electricity and petroleum companies listed on the Bombay Stock Exchange (BSE) based on market capitalization have been selected to examine IR practices. A checklist of 21 contents based on the IR framework is constructed to check the level of IR practices in select energy companies. Late adoption, lack of proper understanding of the IR framework, and common and different reporting trends were found in six select energy companies. These companies should have reported core values such as connectivity of information, conciseness and, reliability & completeness. IR practices of one company fully complied with the IR framework, and the IR practices of another company reflect a need for more connectivity of information only. Petroleum companies disclosed more readable IR practices in one place in the Integrated Annual Report (IAR) compared to electricity companies. Managerial and policy implications suggested at the end of this study should be adopted and enacted by organizations and regulatory authorities, respectively, for the soundness of IR practices from an Indian perspective. JEL Classification Codes: M41, M48, G38.
Integrated Reporting, Voluntary Disclosures, Sustainability Reporting, Non-Financial Reporting, Corporate Reporting.
Copyright (c) 2023 Shivam Agnihotri, Pramod Kumar, Kapil Harit, Devdutta Bharti
INTERFERENCE OF ABORTION LAW ON THE RELATIONSHIP BETWEEN ECONOMIC DEVELOPMENT AND FERTILITY RATE OF WOMEN
The last few decades have seen unprecedented economic growth and fertility decline. However, the relationship between economic development and fertility rate varies across the countries due to country-specific characteristics. There are two schools of thought in the existing literature: the first holds that women's fertility declines with economic development, which happens in tandem with industrialization, while the second holds that fertility rises with economic development because it encourages early marriage, coupled with, increase in economic security. However, there is a dearth of information in the literature regarding how various birth control regulatory systems affect the connection between fertility and economic development. Therefore, the present study attempts to analyze the relationship between birthrate and growth of GDP per capita in 182 nations (using panel data from 1990 to 2012). The study has three major findings. First, it implies the U-shaped association between economic progress and fertility rate is not universal. Second, the law affects women's fertility. More abortion restrictions boost a woman's fertility. Finally, cultural influences like previous periods' fertility rates affect the current period's fertility, indicating an intertemporal link. The study contributes to the in-depth understanding of the determinants of fertility rate. It identified how the abortion law influence the relationship between economic development and fertility rate. The findings can help in designing the fertility control measures, based on a country’s status of economic development. JEL Classification Codes: K42, O1, J13.
Abortion Law, Economic Development, Fertility, Intertemporal Relationship.
Copyright (c) 2022 Dona Ghosh, Chandril Bhattacharyya
DEPICT THE ROLE OF FACTORS AFFECTING BEHAVIOR OF INVESTORS TOWARD SETTING THE INVESTMENT AVENUES AND CHOOSING THE BEST INVESTMENT PLATFORM: AN EMPIRICAL ANALYSIS
The present study depicts the role of various factors affecting the behavior of investors towards set investment platforms and their priorities in choosing the best investment avenues. Its first aim is to get fully acquainted with various factors: Demographics and other influencing factors affecting investors' behavior towards choosing investment avenues. The second aim is to find the best investment platform in the Indian financial system. The third one perceives investors' perceptions and behavior while choosing their best investment priority and selecting the best investment platform. And fourth measures the relationship between various factors and investment avenues. The study mainly concerns and focuses on generating new epistemology (knowledge) in financial investment decisions with the effect of influencing factors for choosing the best investments, simultaneously getting a conceptual framework with Financial Behavior & Attitude glimpse. This study hypothesizes the demographic factors affecting behavior or not and measures relationships between other investment influencing factors & investment avenues. The study has conducted an empirical analysis based on observation, personal experience, and data collection through generated questionnaire links shared with the target audience. The target audience is housewives, daily wage earners, working professionals, government employees, and businessmen, with a sample size of 160. The data analysis and measurement are based on Percentage Analysis, T-test, and ANOVA. JEL Classification Codes: G2, G4, G5, D1, M5, R3.
Factors Influence, Investors Behavior, Financial Investment Opportunities/Avenues, Investment Platform, Financial Behavior & Attitude.
Copyright (c) 2022 Suraj Sharma, Ashish Tripathi
THE GROWTH TRAJECTORY OF UPI-BASED MOBILE PAYMENTS IN INDIA: ENABLERS AND INHIBITORS
"Unified Payments Interface" (UPI), an innovative mobile-based payment system, was introduced by the Government of India to support its digitization initiatives. Not just in India, UPI has expanded globally by being implemented in Bhutan and is on the verge of being launched in ten more countries in north and southeast Asia and, the UAE & Africa. Thus the study examines UPI's growth and significance to the transformation of India's mobile payment systems, its global reach and further expansion. The study consists of two parts, with an initial focus on scholarly literature published in the last five years since the UPI's inception in April 2016. Out of 177 papers, the method yielded 14 notable peer-reviewed publications. Other sources include government policy papers, news materials, and research undertaken by national or international organizations such as Kantar, Statista, ASSOCHAM, Deloitte, Nielson, Ericsson, etc. Despite its early launch, UPI swiftly outperformed all other digital payment methods in India, including mobile wallets. Google Pay, PhonePe and Paytm were early drivers of UPI payments. However, the government-backed Bharat Interface for Money application failed to achieve its potential. Moreover, the Covid-19 pandemic has little impacted the growth of UPI. Another major finding is that transaction failure, and cyber frauds must be addressed for improved UPI uptake, and a greater focus will be on credit and cash withdrawals via UPI. The study concluded that Near field communication-based UPI payments will revolutionize peer-to-merchant payments. JEL Classification Codes: C00, C10, C80, G28.
Digital Payments, Mobile Payments, M-wallets, Unified Payments Interface, UPI.
Copyright (c) 2022 Abhishek Kumar, Rajesh Kumar Choudhary, Saroj Kumar Mishra, Sanjay Kumar Kar, Rohit Bansal
BOARD MEETING FREQUENCY AND PERFORMANCE OF PUBLIC SECTOR BANKS IN INDIA
This paper aims to analyze the effect of the frequency of board meetings on the performance of public sector banks in India. According to agency theory, frequent board meetings may lead to more concentrated monitoring, lowers the agency cost, contributes to more exchange of ideas among the board of directors, and assist them to be more equipped with the information, which ensures better financial performance. This paper investigates this assumption of agency theory on the performance of public sector banks in India. The number of committees, frequency of board meetings, and audit committee meetings are a proxy of corporate governance mechanisms. Return on Assets (ROA) is a proxy of financial performance. The duration of the study is 2015-2019, and secondary data is used. Panel regression is employed to analyze the impact of variables of corporate governance mechanisms on the performance of public sector banks. Our results find no significant impact of any governance variables used in the study on the ROA of the banks. The study makes an original contribution by providing a comprehensive study related to the process and activity of the board and its impact on the performance of banks. The findings of this paper will help examine the board's process and lead to improvement in concern. JEL Classification Codes: G21, G34, G38.
Agency Theory, Board Meetings, Board Committees, Bank performance, Corporate Governance.
Copyright (c) 2022 Shweta Taluka, Suhasini Verma, Jeevesh Sharma
ASSESSING RELATIVE WEIGHT OF DETERMINANTS OF INVESTMENT IN INDEX SCHEME OF MUTUAL FUNDS
The main aim of this study is to assess the relative weight of determinants of investment in Index schemes of mutual funds. The target population for the study came out to be 880. Using a simple random sampling method, the sample size was determined to be 268. Of these, 262 bank employees responded to the questionnaire, and the rest 6 were reluctant. A 95% confidence interval and ±5% margin of error have been used to estimate the overall sample confidence level. For the practice of data, the collection questionnaire method was used. Ordinal logistic regression and Kendall are used to assess the relative weight of determinants of investment in different index schemes of mutual funds. The study discovered that various psychological characteristics like risk perception and attitude are significant determinants of mutual fund investment in Tripura. Also, the interaction effect with demographic and psychological factors influences the volume of investment in mutual funds in Tripura. The study has good inputs for the fund managers of mutual fund Companies. They can know the determinants of investments in mutual funds and their impact on the volume of investment. This study will guide the policymaker on which determinants should be given more weight. The study will assist in designing a strategy for what level of training is required to improve psychological factors toward investment in the mutual fund. The study is very original. It is first attempted to assess the relative weight of determinants for preferring index schemes of the mutual fund. JEL Classification Codes: E22, G11, G21, G41, P4.
Bank Employees, Behavioural Finance, Mutual Fund, Preference.
Copyright (c) 2022 Debadrita Dev, Sujit Deb, Ranjit Singh, Lokendra Puri
DIVIDEND POLICY: A BIBLIOMETRIC ANALYSIS
The dividend is one of the controversial topics in Financial Management which mean earnings of management how much amount is distributed to the shareholders and what percentage is retained in the business. The main objective of the study is to provide a comprehensive overview of previous studies related to the topic of Dividend Policy in the context of statistical analysis of published articles/documents around the world. For this purpose, Bibliometric Analysis was conducted through the Bibliometrix library and the Biblio-Shiny platform of RStudio. The web of Science database was used for the collection of data on the topic of Dividend Policy. The search was made in the web of science database with the keywords “The dividend policy”, “Dividend payouts”, “Determinants” and “Lintner model” covering the period of 20 years from 2002 to 2022. The publications/documents/articles included in the study were written by 839 authors from all over the world. The Bibliometric Analysis of the collected data indicates that the Dividend Policy has a significant contribution to scientific production. In 2011, there was a great increment in the number of publications and since 2018 the publications are continuously increasing. USA, UK and China are the pre-eminent countries having significant contributions to research on Dividend Policy. JEL Classification Codes: G3, G35.
Bibliometric Analysis, Dividend Payouts, Dividend Policy, Lintner Model.
Copyright (c) 2022 Divya Saini, Priti Sharma
IMPACT OF COVID-19 PANDEMIC ON FINTECH AND FINANCIAL INCLUSION IN INDIA
The study seeks to investigate how the pandemic of Covid-19 has impacted customer engagement in using Fintech services and resultantly the status of financial inclusion in India. This study is empirical and analytical in nature. Digital payment is taken as a proxy of FinTech. The data is collected from primary and secondary sources. To understand what persuades a customer to use FinTech services, the response to a survey questionnaire has been obtained from 310 respondents through e-mail and hand collection. Factor analysis is used to investigate the factors that impacted customer engagement in digital payment, before and after the Covid-19 pandemic. The factors used in this model are access, usage, technology, and financial literacy. Results show that there is a significant positive relationship between all the factors and the use of FinTech services. There is a significant positive relationship between FinTech and financial inclusion, as already established by the previous studies. The findings of this review are pivotal as they can serve as useful input for the ongoing debate directed towards increased use of FinTech in achieving greater financial inclusion. The findings suggest that by advancing the technology and increasing financial literacy, access, and use of FinTech services can be increased which in turn will increase financial inclusion in developing countries. JEL Classification Codes: F65, O32, Q55, H80, M10.
Covid-19, FinTech, Digital Payment, Financial Inclusion, Financial Literacy.
Copyright (c) 2022 Megha Gupta, Suhasini Verma
FACTORS IMPACTING LIQUIDITY OF BANKS: AN EMPIRICAL STUDY FROM THE BANKING SECTOR IN THE UAE
The primary purpose of this research is to substantiate the factors that impact the liquidity of the banks in the UAE. This research paper is an extension of the thesis that the primary author has undertaken to prove the test of significance and provide concrete evidence that the identified idiosyncratic and market related factors have significant impact on the liquidity risk for the banks in the UAE. The primary author has performed linear regression to identify the relation of the dependent and independent variables and once the test of significance is proved, the factors have been ranked using MURAME approach as part of ultimate thesis research objectives (MURAME approach is not forming part of this research paper). The research paper focusses on top 10 banks in the UAE and the study spans from 2010 to 2019. The study employs idiosyncratic factors like Deposit growth, NPL, CAR, ROA and market factors like GDP, Inflation, Unemployment, Oil prices and studies its relationship on dependent factor i.e., liquidity. Series of diagnostic tests are performed to find the impact of liquidity on idiosyncratic and market related factors. JEL Classification Codes: E58, G32, G38.
Liquidity, Idiosyncratic Factors Market Related Factors, Regression Analysis, UAE
Copyright (c) 2022 Manoj Kapur, Arindam Banerjee, Kunjana Malik
DETERMINANTS OF DIVIDEND POLICY: AN EMPIRICAL INVESTIGATION OF INDIAN COMPANIES USING PANEL DATA ESTIMATION TECHNIQUE
The decision to pay dividends by companies is among the most researched and contentious topics in corporate finance as, according to some scholars, it has a bearing on companies' valuation. The purpose of this research is to find out important factors that act as determinants of the dividend policy of Indian companies. The study employs secondary time series data gathered from the latest data available from the CMIE (Centre for Monitoring India) Prowess database. The study has been divided into three time periods i.e. 1) 2000-01 to 2009-10, 2) 2010-11 to 2020-21, 3) 2000-01 to 2020-21, by merging the two time periods and the panel data regression technique has been applied. The results of the analysis suggest that Return on assets, Debt to equity ratio, Cash and cash equivalents & Debt to total capital ratio significantly affect dividend yield from 2000-01 to 2009-10 and from 2000-01 to 2020-21, whereas the results of the analysis from period 2010-11 to 2020-21 found Sales/Size, Return on the asset, and Debt to total equity ratio as determinants of dividend policy. These results corroborate the earlier findings that profitability, liquidity, and leverage are important factors in the decision-making of companies regarding the payment of dividends. JEL Classification Codes: G1, G3, M2.
Dividend Yield, Dividend Policy, Indian Companies, Leverage, Panel Data.
Copyright (c) 2022 Razique Anwar, Sandeep Kumar