IIM Indore seeks to be a contextually-relevant business school with world-class academic standards that develops socially-conscious managers, leaders and entrepreneurs. IIM Indore is committed to: Excellence in management education, research, and training, Use of contemporary participant-centric pedagogies and teaching methods, A presence in emerging segments of management education.

IIM Indore

Pricing of initial public offerings (IPOs) has received considerable attention from the perspective of asymmetric information theories, among others. Specific aspects of emerging markets have been incorporated into models to explain the varying degrees of underpricing. Using three features that are deemed to be important for such economies, that is, principal–principal conflicts, disclosure norms and legitimacy of the top management, and two different classes of investors, institutional and retail, two frameworks have been designed to explain the expected levels of underpricing under various pair-wise combinations of these parameters. The state of the secondary market, which is an important determinant of the decision to go public, is incorporated into the framework

Finance and Accounting

Fulltext

Journal of Emerging Market Finance

Perspective on Underpricing of IPOs in Emerging Economies

Banks’ ownership and their performance form two important dimensions of the entire gamut of banking function. This article strives to establish a link between the two by studying commercial banks in India. Conducting a panel data analysis of 89 commercial banks over the period from 2008–2009 to 2012–2013, one could observe that ownership indeed mattered when net interest margin (NIM) or per-employee profitability was considered, but when return on assets (ROA) was considered, there was not much of a difference among banks when differentiated on ownership basis.

World University root node

Does Ownership Structure Influence Bank Performance?: Evidence from an Emerging Economy

Due to increased linkages between the spot and the derivatives markets, one might expect that expiry dates in derivatives markets could cause price-volatility and traded-quantity to increase for underlying securities in the spot markets. If such increments are indeed noticed, and if expiry date is the single most important cause for such movements, one would further expect the price-volatility and traded quantity for the underlying stocks to come down the very next day. This paper tests the effect of expiry date on the price-volatility and traded quantity of one hundred underlying securities that formed the most traded derivative contracts on individual securities on the National Stock Exchange (NSE) of India. The study found that the price volatility did not increase significantly on expiry date or decrease the day after, while the traded quantity indeed increased on the expiry dates and decreased significantly the day after.

Journal of International Business and Economics

Does expiration date have an effect on price volatility and traded volumes? Evidence from Indian securities market

PurposeThis review paper aims to compare the various dimensions in the finance literature pertaining to the Anglo-Saxon Model (Stockholder Model) prevalent in the USA and the UK with the German Model (Stakeholder Model) of corporate governance prevalent in Germany and continental Europe. The present study identifies different strands of research on the various dimensions of these models, along with aspects of governance in emerging economies and the phenomenon of the convergence of these governance mechanisms.Design/methodology/approachThe literature review on corporate governance models has been carried out on the themes of internal and external governance mechanisms. The review considers agency theory along with principal–principal (PP) conflicts as the fundamental blocks explaining the need for governance structures.FindingsThe traditional models of governance, along with the incorporation of PP conflicts, will result in a hybrid model inculcating the best of both the traditional models. However, convergence in the true sense may not be possible owing to fundamental differences pertaining to cultural, economic, legal and socio-economic aspects of the firm.Originality/valueThis paper proposes a framework incorporating the interplay of managerial talent and controlling shareholders to understand the governance system that may be applicable for firms in emerging economies.

Corporate Governance

Divergence or convergence: paradoxes in corporate governance?

Over the past decade Indian commodity futures markets have grown at a rapid pace. Reopening of Indian commodity futures markets has provided an opportunity for investors to achieve diversification benefits. At the same time during periods of high inflation, trading in several commodity futures was stopped owing to the belief that investment in commodity futures markets contributes significantly to the increase in commodity prices. Studies have shown that growth in commodity futures markets has no direct role in increasing commodity prices. The present study looks at the developments in Indian commodity futures markets in the past decade. The first part of the present study examines the potential diversification benefits available to Indian investors when they allocate a part of their investable income to commodity futures. The second part of the study examines the inflation hedging potential of commodity futures in a conventional portfolio of stocks and bonds during inflation.A number of portfolios were constructed with and without commodity futures to unveil the diversification benefits offered by commodity futures when incorporated in a conventional portfolio of stocks and bonds. To recognize the diversification benefits, which can be realized by investors on adding commodity futures, asset allocation strategies, namely, strategic asset allocation and tactical asset allocation (momentum and term structure strategy) were analysed from 2004-2012 on a yearly basis using monthly data of most liquid commodity futures contracts traded on Indian commodity futures exchanges. Momentum and term structure signals were used to formulate investment strategies, which exhibited positive returns on average. These investment strategies served as a tool for allocating commodity futures to conventional portfolio of stocks and bonds. Results show that inclusion of commodity futures to a conventional portfolio provided diversification benefits.Inflation has an adverse impact on investors. The surge in inflation necessitates the search for assets with inflation hedging potential. Commodity futures have positive correlation with inflation and negative correlation with stocks and bonds. Thus, during high inflation, the presence of commodity futures in a conventional portfolio of stocks and bonds may iii possess potential to combat ill effects of inflation and act as an inflation hedge. The second part of the present study examines the inflation hedging potential of commodity futures during different inflationary regimes. We chose commodity futures that respond best to inflation and form inflation tracking portfolios. Analysis of conventional portfolios with and without inflation tracking portfolios shows that commodity futures act as an inflation hedge.The present study reveals that it is possible to improve the performance of a conventional portfolio by investing in commodity futures and that these instruments provide inflation hedge to the conventional portfolio during periods of high inflation. In the present scenario, where RBI is likely to give permission to banks and FIIs to invest in Indian commodity futures markets and considering periods of high inflation, results of both the studies are relevant and important to investors.

Economics

ACRN Proceedings in Finance and Risk Series ‘13

PERFORMANCE OF INDIAN COMMODITY FUTURES MARKET: AN ANALYSIS

Numerical growth of business schools has been significant since their inception in India as well as the world over. Different categories of business schools surfaced, exhibiting varied emphases on 'theory' and 'practice' in classroom lectures. 'Lawlessness' in functional areas of management led to laissez- faire and all kinds of people and teaching material started entering the MBA classroom; and all kinds of business schools started emerging on the scene. Formidable threat faced by management programmes and management educators, today the current 'knowledge bowl' available for delivery in classrooms is criticized as lacking the status of science. Leading institutes of management endowed with faculty resources are the appropriate places to generate revised and refined theories of management by establishing centres geared towards econophysics and psychophysics.

Irish Medical Journal

Abounding Haze around Accumulated "Knowledge": A Formidable Threat Staring at Management Educators

Intellectual Waves in Finance and Accounting

This paper analyses the factors influencing debt proportions in the capital structures of companies in Malaysia. Predictors of debt proportions are chosen based on apriori reasoning that underlies the current capital structure theories that are oriented to bankruptcy risks, asymmetric information, agency conflicts, non-debt tax shields apart from those with conventional capital structure explanations. This is a continuous cross-sectional regression analyses that was carried out for a period of two years on a sample of 95 and 82 companies chosen from the companies listed on Bursa Malaysia Berhad (KLSE). Size, Safety Considerations, Deviations from Target Debt variables have emerged as the most significant predictors of debt proportions; and Non-Debt Tax Shields, Profitability, Agency Conflicts, and Free Cash Flow Variables have emerged as other debt predictors of importance.

UNITAR e-Journal

FACTORS INFLUENCING CAPITAL STRUCTURES: AN ANALYSIS OF COMPANIES IN MALAYSIA

Journal of Managerial Finance and Research

Capital Structure Peril: Limit Debt in Corporate Finance

Advances in Global Business Research

Growth, Non-Debt Tax Shields, Agency Conflict and Corporate Debt: A Study of the Malaysian Corporate Sector

Developments in the Theory of Finance: Impact of Quantitative Disciplines

Initial Public Offerings in India - A Study of their Performance

Indian Journal of Finance and Research

Initial Public Offerings - An Attractive market for Foreign Investors

Journal of Applied Finance

Initial Public Offerings - Indian Experience with Equity Issues

Journal of the Management Association, PSG College of Technology

ASD'Innovations in Financial Instruments - New Dimensions to Corporate Financial Strategies in India

Business Spectrum

Indian Automobile Industry Industry Volatility in the Four Wheeler Sector

Pricing of Initial Public Offerings in India Some Issues

The Lease Purchase Decision in the Theory of Finance