Indian Journal of Finance and Banking

AN EMPIRICAL STUDY OF INTEGRATED REPORTING PRACTICES AS VOLUNTARY DISCLOSURES IN INDIAN ENERGY COMPANIES

2023-01-18T15:53:38+00:00

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.

INDIAN MOBILE BANKING IN POST COVID-19: AN ANALYTICAL STUDY AND GRATIFICATION FROM THE ASPECT OF KANO MODEL

2023-02-07T17:36:46+00:00

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.

CORPORATE GOVERNANCE AND FIRMS’ PERFORMANCE: EVIDENCE FROM DHAKA STOCK EXCHANGE

2023-02-17T18:18:36+00:00

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.

EXAMINING CONVENIENCE, WEBSITE DESIGN & SOCIAL INFLUENCE AS DETERMINANTS OF USERS’ INTENTION TO USE FINTECH SERVICES

2023-02-25T15:24:55+00:00

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.

IMPACT OF FIRM PERFORMANCE ON STOCK RETURNS: EVIDENCE FROM LARGE-CAP, MID-CAP AND SMALL-CAP STOCKS

2023-03-18T07:28:49+00:00

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.

AN EMPIRICAL STUDY OF CUSTOMER SATISFACTION TOWARDS E-BANKING SERVICES IN DELHI

2023-03-18T07:29:43+00:00

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.

STARTUP SUSTAINABILITY BASED ON GOVERNMENT, TECHNOLOGY, AND MARKET: EMPIRICAL STUDY MEDIATION OF PERFORMANCE & SATISFACTION

2023-03-18T07:30:22+00:00

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.

VALUE DRIVERS OF BANK EQUITY MARKET PRICE

2023-03-20T17:28:26+00:00

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.