Indian Journal of Finance and Banking 2020-09-12T20:08:47+00:00 Editor-in-Chief Open Journal Systems A Framework to Score the Risk Associated with Suspicious Money Laundering Activity and Social Media Profile 2020-08-24T10:21:39+00:00 Dillip Kumar Parida D. Prasanna Kumar <p>Money laundering has immense entailments. The criminal who possesses black money and wants to mask it as legitimate must fabricate the source to look genuine. It makes the crime organized and more systematic to break the financial system. The existing AML (Anti Money Laundering) solutions and its design based on the creation of a transaction profile. Most of the leading AML software focuses on financial transactions and rarely focuses on linked suspicious individual’s social media profiles. Social networking is one of the most popular platforms to interact with others and millions of users use these platforms to communicate with each other from around the world. At the same time, the web has plenty of social and demographic information to create an accurate profile that aims to construct a legitimate profile. This paper consolidates the fragmented discussion from several articles and provides a detailed view of fraud profile identification.&nbsp; Practical insights are identified from various AML solutions and summarized from an extensive literature review. The risk scoring framework and definitions of filters can be widened to include more parameters for effective alert generation. In this paper, we propose an approach and risk scoring framework to assess customer profiles that drive the suspicious profile or transactions based on social media attributes.</p> 2020-07-15T22:36:25+00:00 ##submission.copyrightStatement## Portfolio Selection and Performance Evaluation Through Benjamin Graham’s Value Investing 2020-08-24T10:21:38+00:00 Vinay K. Srivastava Nitin Kulshrestha <p><strong>Purpose:</strong> The objective of this study is to validate the value investing concerning filtering valued stock in the Indian stock market (Nifty 50) &amp; United States (Dow Jones) during the period 2014 -20.</p> <p><strong>Design /Methodologies/Approach:</strong>&nbsp; We have selected the data of the National Stock Exchange and Dow Jones to apply the value investing technique for choosing the stocks and building a significant portfolio. Further, we compare the mean returns of B &amp; H passive strategy. The empirical analysis includes the selected portfolio from Jan 2014 to May 2020.</p> <p><strong>Results &amp; Practical Implication:</strong> The mean return of portfolio selected by Value investing outperform as comparative to passive strategy, i.e. Buy &amp; Hold strategy. The successful application of value investing will encourage the practitioners &amp; academicians of financial markets to research &amp; explore further uses &amp; practical impact of the present study.</p> <p><strong>JEL Classification Codes:</strong> F37.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p> 2020-08-03T00:00:00+00:00 ##submission.copyrightStatement## Failure of Operational PPP Projects in India Leading to Private Developer’s Apathy to Participate in Future Projects: A Case Study Based Analysis 2020-08-24T10:21:38+00:00 Sandeep Ganpat Kudtarkar <p>The goal of this study is to examine the failure of operational public-private partnership (PPP) infrastructure projects in India. The case study based analysis is done of eleven operational PPP projects from infrastructure subsectors like roads, metro rail, seaports, and power projects to investigate various risks faced during the life cycle of projects. The construction risks like land acquisition delay, change in scope, delay in financial closure resulting in time and cost overrun, revenue risk of not getting adequate revenue during operation phase and legal disputes between the authority and the concessionaire are prominent risks observed in these projects. Mitigating these risks through efficient life cycle contract management and appropriate allocation of risk creates adequate risk-adjusted financial returns to the private developers and value for money for the government. The study concludes that failure in contract and risk management in case of the majority of operational projects resulting in disappointing financial returns is the major reason for the private developer's apathy towards participation in a once successful PPP program in India.</p> <p><strong>&nbsp;</strong></p> 2020-08-05T22:05:01+00:00 ##submission.copyrightStatement## Dynamics between Digital Visibility through Social Media Marketing and Crowdfunding: Path to Succeed in Entrepreneurship 2020-08-24T10:21:37+00:00 Girish G P Seeboli Ghosh <p>Digital visibility through social media marketing has played a colossal role in the realm of entrepreneurship and fund-raising. Strong positive dynamics between social media marketing and crowd-funding has the impending to decipher demand-supply gap of fundraising at the pre-seed stage. In this study, we explore the relationship between usage of social media and awareness of crowd-funding as a viable option for raising pre-seed capital in an emerging market of India which has witnessed the exponential growth of start-up companies and entrepreneurship in the past few years. The results of the study suggest that awareness of different options of crowdfunding for raising pre-seed capital is strongly correlated with the effective usage of social media platforms by the organizations. From an organization’s perspective, it has been found that effective use of Social Media platforms increases with the duration involved in social media platforms. The results of the study give a perspective for all entrepreneurs, fundraisers, and start-up companies that how digital visibility through social media marketing can unravel the problem of crowd-funding. With a growing trend of today’s youth using social media marketing worldwide, the strong dynamics between crowd-funding and social media marketing is expected to breed exponentially in terms of their contribution to the economy, wealth generation, and job creation.</p> 2020-08-07T19:11:33+00:00 ##submission.copyrightStatement## Evaluating Rainfall Risk Profile of Indian Subcontinent Based on Index Metrics 2020-08-24T10:21:37+00:00 Bharath V Kotreshwar G <p>Floods and droughts represent an embedded monsoon factor impacting the Indian economy. Evaluating monsoon risk based on rainfall index metrics could help design appropriate alternative risk transfer products.&nbsp; This study proposes a new set of rainfall indices that can be used to explore the excess rainfall risk profile of the Indian Subcontinent. The study proposed a new set of indices for evaluating excess rainfall risk profiles which are defined as Excess Rainfall Days (ERDs). The methodology proceeds in a step-wise form: Empirical values of ERDs over 50 years for selected MSDs of India are derived, and then these index values are analyzed for determining the degree of variability and volatility, followed by the examination of the degree of inter-correlation amongst indices of selected Meteorological Sub-divisions. The research is based on the applications of econometric models such as the Augmented Dickey-Fuller (ADF) test followed by the GARCH model. The results revealed that several of the statistical properties of ERD indices support the idea that these indices could be used as building blocks for designing rainfall derivatives similar to HDDs/CDDs underlying temperature derivatives.</p> 2020-08-09T00:19:35+00:00 ##submission.copyrightStatement## Ethiopian Women Economic Empowerment Through Microfinance 2020-08-24T10:21:36+00:00 Belay Mengstie Amanpreet Singh <p>Women's economic empowerment a strategy helping women to participate in the process of making decisions, supporting income increment, asset possession. The main aim of this study is to investigate the microfinance impact on women economic empowerment considering age and education as moderators. Data for this study have been collected from 346 respondents of microfinance beneficiary women. For data analysis multiple regression and moderated regression with Hayes (2018) process macro software were used in the study. Regression results showed that credit amount, age, number of training, marital status, education level, have a significant impact on the development of women's economy. However, the business experience has an insignificant impact on the development of women's economy. Moderated regression results revealed that age and education did not have a moderation role in the relationship between microfinance service and on the economic empowerment of women. Microfinance affects women's economic empowerment by improving women's independent income, increasing asset possession levels, and improved monthly saving amount. Moreover, the study proved that the microfinance institution has a vital role in women entrepreneurs' development and business exposure.</p> 2020-08-15T10:31:54+00:00 ##submission.copyrightStatement## The Impact of COVID-19 Pandemic on the Relationship between India’s Volatility Index and Nifty 50 Returns 2020-08-25T06:28:02+00:00 Jyothi Chittineni <p>The paper intends to re-examine the relationship between India’s Implied Volatility Index (IVIX) and Nifty 50 Returns during this COVID-19 pandemic. The study results are important for two reasons, one is to understand whether Indian VIX is fulfilling the purpose of measuring the near future volatility of Nifty 50 during this pandemic, and secondly, it reports the impact of COVID-19 on the investors’ perceptions about the returns and its volatility. The study results documented that the Nifty return and IVIX are moving independently during the COVID-19 pandemic and there is no association between market size and the market move. The one period lagged Nifty returns have a significant influence on the future market volatility. The combined impact of negative and positive Nifty returns on IVIX is not significant during the COVID-19 period. This implies that the Indian investors are not much worried about the fluctuation in the market price or size of the market during the COVID-19 pandemic period. The investors might be taking the market decline as an opportunity to invest and market rise as an opportunity to sell the stocks. Indian investors are much focused on the fundamentals than the market movements during this pandemic. The study results are important for the fund managers, policymakers, and analysts to understand the dynamics of emerging market volatility and the trading behavior of Indian investors.</p> 2020-08-25T06:25:13+00:00 ##submission.copyrightStatement## Impact of Demographic Traits and Personality Traits of Investors on Their Risk-Bearing Capacity: A Study with Special Reference to Investors of Kerala 2020-08-29T18:02:55+00:00 Athira K Mohamed Kutty Kakkakunnan <p>Investment decisions form a major part of every individual’s life. Behavioral finance which puts forward a new dimension in the field of finance recognizes that investment decisions are made after considering numerous psychological, economical and social factors. One of the important criteria considered while making any such decision is the risk. It includes uncertainties associated with the investment opportunity as well as the investors’ risk-bearing capacity. Investors’ risk-bearing capacity is in turn determined by numerous other aspects. An effort is made here to determine whether the risk-bearing capacities of investors are influenced by the demographic factors and personality traits. 120 investors of Kerala State were selected as the sample for this purpose. Analytical results indicated that the risk-bearing capacity is dependent on gender, occupation, and monthly income of the investors. Further, it was noticed that those who have low neuroticism scores and high scores in agreeableness, extraversion, and conscientiousness took higher risks compared to others. This indicated that neuroticism trait was found to have a negative correlation with risk-bearing capacity whereas; agreeableness, extraversion, and conscientiousness were found to have a positive relation. The study concluded that factors like demography and personality have a strong influence on an investor’s risk-bearing capacity.</p> 2020-08-29T17:55:16+00:00 ##submission.copyrightStatement## Antecedents of Financial Inclusion: Evidence from Tripura, India 2020-09-03T11:54:51+00:00 Ranjit Singh Sankharaj Roy Bhartrihari Pandiya <p>The present research assesses the determinants of financial inclusion of members of Self Help Groups (SHGs). The research work is done with primary data collection from around 380 members who are beneficiaries of 95 SHGs in Tripura, India. After performing factor analysis, six major factors named Physical Infrastructure, Financial Awareness, IT Infrastructure, Suitability of Financial Products, Ease of Banking and Economic Status of members of SHGs were identified as major factors that play a pivotal role in bringing financial inclusion of the members of SHG. In these 6 factors, some other factors were also added such as age, income, education, landholding, the regularity of income, earning members count, gender, caste, location, religion, etc. Fitting ordinal logistic regression model, it was found that, the important factors that have an impact on financial inclusion on the members of the SHGs are financial awareness, ease of banking and economic status of the members, the relevance of financial products, physical infrastructure, monthly income, landholding, education, age and their status with respect to the BPL category. The decision-makers in power should collaborate with financial institutions should consider and apply this finding during the disbursement of loans.</p> 2020-09-03T11:50:31+00:00 ##submission.copyrightStatement## An Analysis of the Effects of Corona Virus (COVID-19) on International Financial Derivatives Market, 2020 2020-09-07T20:06:31+00:00 Taskin Afrina Tahrima Haque Beg Nurul Mohammad Zayed Md Shakib Hossain Shahiduzzaman Khan Shahi <p>This research article develops a rational framework to comprehend the spatiotemporal structures of epidemic illness (COVID-19) incident, its applicability, and its significances to financial markets action. The article proposes a paradigm shift which is a new multidimensional geometric approach that has to apprehend all proportional and asymmetrical strategic illustrated tendencies. The epidemic impact on economic activity differs in terms of magnitude and intensity: an economy experiences a supply and demand shocks in the short-run with instant effects in output and employment. This has generated unparalleled amounts of vulnerability, which is a relatively limited amount of time that has incurred substantial risks to investors. This paper seeks to chart the general dynamics of global derivatives markets with country-specific threats and structural threats. The COVID-19 catastrophe has accelerated crucial disturbances for exchange rates and international capital cycles. Cross-border portfolio investment halted in many developing markets as well as in some progressive economies in 2020. All show that in this pandemic situation coronavirus affects financial markets and extreme volatility in the financial market. Nations have not had to utilize capital supervision. To assistance foreign currency liquidity, numerous developing markets have negotiated in the foreign exchange market and slowed down regulations on capital influxes. The globalization of financial markets is directed to the gigantic expansion of magnitude and diversification of financial trades. Finally, all sections show and describe in detail this topic and give some recommendations to overcome this situation.</p> 2020-09-07T20:04:44+00:00 ##submission.copyrightStatement## Impact of Cash Deals and Related Industry Merger on Synergies Gains: A Case of Indian M&A 2020-09-12T14:56:09+00:00 Anjala Kalsie Neha Singh <p>A firm's financial attributes play an essential part in the merger decision. The present paper attempts to improve the existing literature on assessing M&amp;A activity in Indian corporate. This research paper aims primarily to analyze the (a) Synergies realized when the mode of payment in the merger deal is cash, (b) impact on bidder liquidity when payment is made in cash (c) Synergies realized when both target and acquirer in the deal belong to related industry, i.e. the merger is horizontal and (d) assess the impact on bidder leverage when payment is made in equity. The paper has analyzed a panel of 120 major Indian M&amp;A deals from 2005 to 2015, having three years of data pre and post-merger. Instrument Variable Probit Regression analysis has been employed in the study. The key results from the analysis show that in case of payment method in the deal being cash, M&amp;A appears financially favorable for the bidder companies. The results of the empirical analysis of the study do support the generation of synergies in the case of horizontal mergers. The combined firm has also found to have lower liquidity for Indian Mergers &amp; Acquisitions. Significant results have also been obtained for the leverage variables indicating fewer borrowings for the merged firm.</p> <p><strong>JEL Classification Codes</strong>: G34, C35, M41.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p> 2020-09-11T00:00:00+00:00 ##submission.copyrightStatement## Qualitative Assessment of Basel III Liquidity Standards and its Application in the UAE 2020-09-12T20:08:47+00:00 Manoj Kapur Arindam Banerjee Kunjana Malik <p>The Basel Committee for Banking and Supervision (BCBS) introduced two key liquidity ratios to strengthen the short- and long-term liquidity positions of the banks around the globe. These ratios were designed to achieve two key distinct objectives. Firstly, to encourage banks' short-term resilience to the liquidity risks by ensuring there are sufficient high-quality liquid assets to survive a significant stress which may last for 30 days. Calculation of this ratio is called as Liquidity Coverage Ratio (LCR). Secondly, to promote bank resilience over a longer time horizon, at least annually, by creating additional incentives for banks to fund their activities with more stable sources of funding. This led to creation of Net Stable Funding Ratio (NSFR). While these structural ratios are mostly quantitative, the underlying factors that are needed to calculate these ratios include qualitative factors as well. The paper analyzed the implementation of Basel III standards for the banking sector in the UAE. In particular, the timelines specified by the Central bank of the UAE and its implementation by the Domestic-Systemically Important Banks (D-SIBs) in the UAE was tracked by this paper. The study found a disconnect between the disclosure requirements by Basel III and disclosure made in the published annual financial statements of the banks. The study also discussed the extent of disclosures made by the D-SIBs and how relevant disclosures may improve the transparency of the liquidity risk management of the bank.</p> <p><strong>JEL Classification Codes</strong>: E58, G32, G38.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p> 2020-09-13T00:00:00+00:00 ##submission.copyrightStatement##