Determinants of Financial Performance of Indian Corporate Sector in the Post-Liberalization Era PDF Download
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Author: Ram Kumar Kakani
Publisher:
ISBN:
Category :
Languages : en
Pages : 20
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Book Description
This paper attempts to provide an empirical validation of the widely held existing theories on the determinants of firm performance in the Indian context. The study uses financial statement and capital market data of 566 large Indian firms over a time frame of eight years divided into two sub-periods (viz., 1992-96, and 1996-2000) to study Indian firms' financial performance across various dimensions viz., shareholder value, accounting profitability and its components, growth and risk of the sample firms. It reveals that even on the same data, the determinants of market-based performance measures and accounting-based performance measures differ due to influence of 'Capital Market Conditions'. We found that size, marketing expenditure, and international diversification had a positive relation with a firm's market valuation. Apart from these firm attributes that reflect either operating parameters of firms or 'strategic choice' of firm managers, we also found that a firm's ownership composition, particularly the level of equity ownership by Domestic Financial Institutions and Dispersed Public Shareholders, and the leverage of the firm were important factors affecting its financial performance. The different implications of the findings for various stakeholders of a firm are also discussed.
Author: Ram Kumar Kakani
Publisher:
ISBN:
Category :
Languages : en
Pages : 20
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Book Description
This paper attempts to provide an empirical validation of the widely held existing theories on the determinants of firm performance in the Indian context. The study uses financial statement and capital market data of 566 large Indian firms over a time frame of eight years divided into two sub-periods (viz., 1992-96, and 1996-2000) to study Indian firms' financial performance across various dimensions viz., shareholder value, accounting profitability and its components, growth and risk of the sample firms. It reveals that even on the same data, the determinants of market-based performance measures and accounting-based performance measures differ due to influence of 'Capital Market Conditions'. We found that size, marketing expenditure, and international diversification had a positive relation with a firm's market valuation. Apart from these firm attributes that reflect either operating parameters of firms or 'strategic choice' of firm managers, we also found that a firm's ownership composition, particularly the level of equity ownership by Domestic Financial Institutions and Dispersed Public Shareholders, and the leverage of the firm were important factors affecting its financial performance. The different implications of the findings for various stakeholders of a firm are also discussed.
Author: Sumit Kumar Maji
Publisher: Springer Nature
ISBN: 9811926662
Category : Business & Economics
Languages : en
Pages : 186
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Book Description
The book outlines the importance of Indian manufacturing sector and its growth under alternative policy regimes. The authors highlight the significance of various firm-specific and macroeconomic factors on the level of efficiency and profitability of the firms operating in the diverse manufacturing sector during the post-liberalization era. The book also examines the dynamic relationship between the select manufacturing sector-specific stock market indices and the various macroeconomic variables.
Author: Sudeep Kalakkar
Publisher:
ISBN: 9783659261534
Category :
Languages : en
Pages : 0
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Book Description
Author: V.R.Prabhakaran Nair
Publisher:
ISBN:
Category :
Languages : en
Pages : 25
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Book Description
The main objective of a shift from a controlled regime to a more liberal regime in the financial sector was to promote investment in the economy. The studies on the determinants of private investment in developing countries, against the traditional theories of investment, focussed on the role of government policy and tried to derive an explicit relationship between the principal policy instruments and private investment. Recent theoretical and empirical studies have produced results consistent with the idea that the economic policy of a nation is crucial in determining the domestic investment behaviour. These studies emphasised the role of financial sector development on private investment, and provide a framework for understanding the effects of changes in economic policies on private investment. In the present paper we study the determinants of manufacturing investment in the light of financial sector liberalization introduced in 1991. The results indicate that traditional determinants like output, profit etc still play a major role in determining investment than financial sector liberalization. Though the domestic financial liberalisation produced an environment conducive for investment, it could not succeeded in creating a sustained increase in capital formation in the post reform period. In other words, firms consider the demand factor, internal liquidity position and past investment decisions etc as the major indicators for future investment.
Author: Dr. Akshai Aggrawal
Publisher: Lulu.com
ISBN: 1312374160
Category : Education
Languages : en
Pages : 588
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Book Description
International Conference on Management of Globalized Business : Emerging Perspective was organised at Faculty of Management Marwadi Education Foundation's Group of Institutions, Rajkot Gujarat India in collaboration with Gujarat Technological University, Ahmedabad, Gujarat INDIA..
Author: Editors : Raj Kapila & Uma Kapila
Publisher: Academic Foundation
ISBN: 9788171882779
Category :
Languages : en
Pages : 328
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Book Description
Author: Robert E. Litan
Publisher: Brookings Institution Press
ISBN: 9780815752905
Category : Business & Economics
Languages : en
Pages : 474
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Book Description
A financial system is only as strong as the governing practices and institutions of its participants. The challenge to build efficient and accountable financial institutions that promote confidence is a problem that private financial sector executives and policymakers confront together. In this context, Financial Sector Governance takes a clinical approach to addressing the challenges in emerging and developed markets in each industry: capital markets, private banks, state-owned banks, asset management companies, public pension funds, and mutual funds. It also explores the linkages between public and private sector governance, and the policy implications for strengthening both sides. Financial Sector Governance emerges from the fourth annual Financial Markets and Development conference, organized by the World Bank, the International Monetary Fund and the Brookings Institution, during which participants from the public and private financial sectors of emerging and developed markets contribute to an expanding dialogue addressing key policy concerns.
Author: Asl? Demirgüç-Kunt
Publisher: World Bank Publications
ISBN:
Category : Bancos comerciales
Languages : en
Pages : 52
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Book Description
March 1998 Differences in interest margins reflect differences in bank characteristics, macroeconomic conditions, existing financial structure and taxation, regulation, and other institutional factors. Using bank data for 80 countries for 1988-95, Demirgüç-Kunt and Huizinga show that differences in interest margins and bank profitability reflect various determinants: * Bank characteristics. * Macroeconomic conditions. * Explicit and implicit bank taxes. * Regulation of deposit insurance. * General financial structure. * Several underlying legal and institutional indicators. Controlling for differences in bank activity, leverage, and the macroeconomic environment, they find (among other things) that: * Banks in countries with a more competitive banking sector-where banking assets constitute a larger share of GDP-have smaller margins and are less profitable. The bank concentration ratio also affects bank profitability; larger banks tend to have higher margins. * Well-capitalized banks have higher net interest margins and are more profitable. This is consistent with the fact that banks with higher capital ratios have a lower cost of funding because of lower prospective bankruptcy costs. * Differences in a bank's activity mix affect spread and profitability. Banks with relatively high noninterest-earning assets are less profitable. Also, banks that rely largely on deposits for their funding are less profitable, as deposits require more branching and other expenses. Similarly, variations in overhead and other operating costs are reflected in variations in bank interest margins, as banks pass their operating costs (including the corporate tax burden) on to their depositors and lenders. * In developing countries foreign banks have greater margins and profits than domestic banks. In industrial countries, the opposite is true. * Macroeconomic factors also explain variation in interest margins. Inflation is associated with higher realized interest margins and greater profitability. Inflation brings higher costs-more transactions and generally more extensive branch networks-and also more income from bank float. Bank income increases more with inflation than bank costs do. * There is evidence that the corporate tax burden is fully passed on to bank customers in poor and rich countries alike. * Legal and institutional differences matter. Indicators of better contract enforcement, efficiency in the legal system, and lack of corruption are associated with lower realized interest margins and lower profitability. This paper-a product of the Development Research Group-is part of a larger effort in the group to study bank efficiency.
Author: Rahul KrishnajiKavishwar
Publisher: Archers & Elevators Publishing House
ISBN: 8194517044
Category : Antiques & Collectibles
Languages : en
Pages :
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Author:
Publisher:
ISBN:
Category : Industrial relations
Languages : en
Pages : 644
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