https://www.cribfb.com/journal/index.php/ijfb/issue/feed Indian Journal of Finance and Banking 2020-05-28T00:04:02+06:00 Associate Professor K. M. Anwarul Islam info.ijfb@cribfb.com Open Journal Systems https://www.cribfb.com/journal/index.php/ijfb/article/view/454 Short-term Economic Indicators, Stock Market Indexes and Indian Oil and Gas Stocks Returns 2020-05-27T20:37:32+06:00 Rama Krishna Yelamanchili yrk@ibsindia.org <p>In this paper we examine the causal relationship between short term economic indicators, stock market indexes and oil and gas stocks returns. We postulate that economic indicators positively and significantly cause and predict stock market indexes and oil and gas stock returns in short run. In addition, we posit that stock market indexes cause and predict oil and gas stock returns in short run. To test our hypotheses we chose four short-term economic indicators, two stock market indexes, and 10 oil and gas companies. Our results indicate that there is no causal relationship between both short-term economic indicators and stock market indexes, and between short-term economic indicators and oil and gas stock returns. However, we receive support to one of our hypotheses that stock market indexes cause oil and gas stock returns. This causation is contemporaneous only and we observe that stock market indexes lack short-term predictive power of oil and gas stock returns. We conclude that investors need to be vigilant in considering coincident indicators as explanatory variables to predict stock returns. We suggest that stock market indexes are helpful to predict contemporaneous returns but not future returns of oil and gas stocks.</p> <p><strong>JEL Classification:</strong> B1, C32, D4, G2.</p> 2020-01-08T22:29:33+06:00 ##submission.copyrightStatement## https://www.cribfb.com/journal/index.php/ijfb/article/view/482 Why Private Sector Led Financial Inclusion Cannot Work for Development? Case of Micro Credit in India 2020-05-27T20:37:32+06:00 Seema Sahai seemassahai@gmail.com Rupamanjari Sinha Ray rupamanjari@mdi.ac.in S K Tapasvi tapasvi@mdi.ac.in <p>This paper analyzes the potential of the private sector-led micro-credit business to impact poverty. Despite the financial and policy support by donor agencies and multilateral agencies microcredit has not been able to create a positive impact on household income. The study concludes that the credit policy of private sector providers is not designed to create a substantial impact. Microcredit is a business model for doing business with the poor. All aspects of a credit policy including selection criteria, appraisal process, and product offered, and loan amount serves the interest of the lender and not that of the client.</p> <p>&nbsp;</p> 2020-02-18T00:00:00+06:00 ##submission.copyrightStatement## https://www.cribfb.com/journal/index.php/ijfb/article/view/500 Understanding Cognitive Dissonance of Indian Customers for Financial Products: A Multi-Dimensional Scale Development Approach 2020-05-27T20:37:31+06:00 Brajesh Bolia brajeshbolia@hotmail.com Sumi Jha sumijha05@gmail.com Manoj K Jha manojkjha40@yahoo.co.in <p style="text-align: justify;">The aim of the study was to understand the dynamics of cognitive dissonance in the context of financial product purchase. A mixed methodology research approach was undertaken to explore the attitudinal and behavioural dimensions (qualitative) and subsequent empirical validation (quantitative) with a sample of customers of financial products. Qualitative research was conducted through focus group discussions to arrive at a pool of 99 items which were then pruned and validated with the help of academic and industry experts. The items were empirically tested and validated with the help of appropriate statistical tools to arrive at a “5 factor and 25 items” measurement scale for cognitive dissonance. The study found two factors “<em>Emotional Gain</em>” &amp; “<em>Financial Concern</em>” as distinguishing factors emerging out as key findings. The arousal of cognitive dissonance after the purchase decision taken by consumer can be a major concern for marketers as it might result in order cancellations, loss of trust for the brand as well as loss of loyal customers. Measuring dissonance in financial product context post purchase can help marketers devise appropriate strategies to reduce dissonance, thereby retaining and attracting customers.</p> 2020-03-05T21:42:27+06:00 ##submission.copyrightStatement## https://www.cribfb.com/journal/index.php/ijfb/article/view/502 Corporate Governance Practices and Bank Performance: Evidence from Indian Banks 2020-05-27T20:37:31+06:00 Brahmaiah Bezawada brahmaiahb@ibsindia.org <p style="text-align: justify;">The study examines the corporate governance practices and analyzes the role of the board characteristics (size of the board, the composition of the board, and functioning of the board) on the performance and asset quality of banks. We use a sample of 34 commercial banks consisting of 19 public sector banks and 15 private sector banks from 2009 to 2018 accounting for 93 percent of the total banking industry in India. The study finds that busy directors and the number of meetings have a positive significance on bank performance. The percentage of independent directors and the percentage of busy directors influence a significant negative relationship on the net non-performing assets ratio. The board size and number of meetings are associated negatively with Tobin's Q significantly and the percentage of busy directors is a significantly positive impact on Tobin's Q. The board size has a significantly negative impact on bank performance. The research findings provide some insights into corporate governance to the RBI for considering appropriate policy guidelines on corporate governance in the banking industry in India. The paper adds to the existing literature on corporate governance mechanisms and banking industry performance.</p> <p>&nbsp;</p> 2020-03-07T02:03:36+06:00 ##submission.copyrightStatement## https://www.cribfb.com/journal/index.php/ijfb/article/view/522 A Study of Gross and Net Non-Performing Assets of Select Public Sector Banks in India for the Period 2007-2008 to 2017-2018 2020-05-27T20:37:31+06:00 Abhay Korde abhaykorde14@jbims.edu Kavita Laghate kavitalaghate@jbims.edu <p>The Non-Performing Assets (NPAs) are considered as one of the important parameters for anlysing the health of the Indian Banks.&nbsp; The Authors have taken a look at the Literature Reviews related to the non-performing assets related studies looked into by other Research Scholars.&nbsp; The authors in this research study has made an attempt to study the secondary data related to Gross and Net Non-Performing Assets or Loans of select Banks in India, which is available in the public domain of the regulators of Indian Banks i.e. Reserve Bank of India (RBI) from April 2007 to March 2018 and has performed the ABC analysis as per cumulative (decreasing method) to study the performance and the management and governance of those Banks.&nbsp; Finally, the authors conclude that some of the select Indian Banks taken for study appear in the various Groups formulated for study i.e. Group A (Poor Performance), Group B (Satisfactory Performance) and Group C (Good Performance) are thus a matter of great concern to the economy of the country.</p> 2020-03-25T19:27:24+06:00 ##submission.copyrightStatement## https://www.cribfb.com/journal/index.php/ijfb/article/view/523 Dispute Resolution on Unauthorized Liquidation of Futures Positions at the Leading Stock Exchange in India: A Case Study 2020-05-27T20:37:30+06:00 Bezawada Brahmaiah brahmaiahb@ibsindia.org <p>The paper studies compliances of Futures Trading rules and regulations of the Stock Exchange .in the derivate market in India. The paper applies case method approach to study the trading practices of trading members of the Exchanges. It investigates the derivative market’s misuses and abuses by the trading members of the Exchange. The paper provides guidance for the appropriate regulatory framework to curtail violations of rules and regulations in Indian derivative market, and enables the investor protection. The results may be generalized in the emerging markets. Hence, researchers are encouraged to study results further in other developed countries. The paper finds that these practices are not only violation of trading rules of the Stock Exchange but also unfair and unethical trading practices. The research findings and results may lack generalizability in a case study approach.</p> 2020-03-25T21:46:38+06:00 ##submission.copyrightStatement## https://www.cribfb.com/journal/index.php/ijfb/article/view/526 Accounting Practices and Organizational Performance: Evidence from Small and Medium Scale Enterprises in Sri Lanka 2020-05-27T20:37:30+06:00 Saseela Balagobei saseelab@univ.jfn.ac.lk <p>Over the past few decades, the researchers demonstrate consistent effort in investigating the Small and Medium scale Enterprises (SMEs). This sector plays a crucial role in the economic growth in both developing and developed countries. The research investigated how accounting practices influence the organizational performance of small and medium scale enterprises in Sri Lanka. Accounting practices consists of record keeping, budgeting practices and payroll accounting whereas organizational performance is measured by organizational goal achievement, organizational effectiveness and organizational efficiency records. A structured questionnaire was used to collect the primary data from 75 SMEs which were selected by means of the random sampling technique. The results revealed that among the accounting practices, only record keeping and budgeting practices have significant positive influence on organizational performance of Small and medium enterprises in Sri Lanka. It can be recommended that academic institutions and other bodies which are responsible for SMEs should organize training programmes for those operators who do not have the technical knowhow in the field of accounting to come to grips with it and also provide some SME-specific accounting guidelines and template forms for capturing accounting practices for the operators to use.</p> <p><strong>JEL Classification: </strong>M41.</p> 2020-03-28T20:36:44+06:00 ##submission.copyrightStatement## https://www.cribfb.com/journal/index.php/ijfb/article/view/539 Non-Performing Loan in Bangladesh: A Comparative Study on the Islamic Banks and Conventional Banks 2020-05-27T20:37:30+06:00 Sonia Rezina rezina.sonia@gmail.com Rubaiyat Shaimom Chowdhury rubaiyat.shaimom@gmail.com Nusrat Jahan jn.nusrat@gmail.com <p style="text-align: justify;"><span class="_5yl5">The banking business is one of the booming businesses in Bangladesh. But at present, the sector is struggling to be on the growth path due to the growing proportion of Non-Performing Loan (NPL). The NPL has instigated a negative influence on the growth of Banking Business. This study has compared the severity of the impact of operational modes between two mainstream banking systems, traditional banking and Islamic banking, which may affect Non-performing loans. Other variables such as governance of the banks, bureaucracy, and size of the banks, the difference in reserve ratio, capital adequacy ratio, and interest rates have different impacts on NPL. We have explained the impact of the variables on the bank performance as per mainstream banking operational model. Finally, we have proposed some evocative measures through which the Non-performing loan can be minimized.</span></p> 2020-04-06T21:37:19+06:00 ##submission.copyrightStatement## https://www.cribfb.com/journal/index.php/ijfb/article/view/545 Comparing the Applications of Management Accounting between Vietnamese Public Universities by the Degree of Autonomy 2020-05-27T20:37:29+06:00 Oanh Thi Tu LE oanhletu@gmail.com Phong Thi Thu Tran thuphonghou@gmail.com <p style="text-align: justify;">This study was conducted based on a survey of 53 public universities in Vietnam to evaluate the applications of management accounting in universities according to the following metrics: (i) Cost classification; (ii) Conducting and evaluating budgets; (iii) Management responsibility; and (iv) Using information to make short-term and long-term decisions. The results showed that public universities have some interest in management accounting information, especially responsibility accounting. However, management accounting information which has not been used much in Vietnamese universities includes controllable and uncontrollable costs and variance analysis between actual results and estimates. Regarding the degree of autonomy, fully or partially autonomous universities tend to apply management accounting more than non-autonomous universities in terms of the cost per student, the fees for repeat classes, and management responsibility. The research results showed the need to use management accounting information when universities increase their autonomy.</p> <p><strong>JEL Classification: </strong>M40, M41, M49.</p> 2020-04-15T22:28:08+06:00 ##submission.copyrightStatement## https://www.cribfb.com/journal/index.php/ijfb/article/view/585 Revisiting the Efficiency of Indian Banking Sector: An Analysis of Comparative Models Through Data Envelopment Analysis 2020-05-28T00:04:02+06:00 Jyoti Tanwar jyotanwar@gmail.com Himanshu Seth hseth91@gmail.com Arun Kumar Vaish arunkvaish@gmail.com N V M Rao nvmrao@pilani.bits-pilani.ac.in <p>This study examines the efficiency of the overall Indian banking industry using Data Envelopment Analysis (DEA) and to perform a comparative efficiency analysis of public, private, and foreign banks using six varied forms. Also, providing ranks to the banks based on their efficiency. The study incorporates BCC output-oriented DEA model using a sample of 50 Indian banks (public banks = 17, private banks = 18, foreign banks = 15) for a period ranging from 2009-10 to 2018-19, hence incorporating the after-effects of the financial crisis and demonetization, this study uses panel data from 2009-10 to 2018-19. The results showed that most of the Indian banks fall on the efficient side or are near to full efficiency. However, public banks outperform private and foreign banks in terms of their average efficiency. Results also specify that the performance of banks is sensitive to input-output variables, units under evaluation, and choice of the model. The current study has just focused on the internal factors for analyzing the efficiency of Indian banks; however, certain external factors might also impact the banks’ efficiency.</p> 2020-05-28T00:03:19+06:00 ##submission.copyrightStatement##