Articles
Absence of Financial Sector in Modern Macroeconomics: Oversight or Overlook

Avinash Kumar Jha

Volume 42, Issue 1(Jan-Jun)

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The paper explores the question of why modern macroeconomics ignores the financial sector in its analysis despite Keynes’s crucial work on the link between expectations in financial markets and the economy’s ability to restore full employment through price mechanism. It explores the evolution of the concept of liquidity trap in macroeconomics text-books and indicates the dilution in it over the decades. Further, the theoretical necessity of efficient market hypothesis for modern microeconomics to ignore the financial sector is elaborated. Policy implications about the economies in general, and the financial sector in particular are highlighted.

Is diversification enough? Lessons from the agrarian past of Bihar

Rakesh Ranjan

Volume 42, Issue 1(Jan-Jun)

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The lack of sustained growth in agricultural output and deepening of paddy-wheat cultivation cycle over many decades have given impetus to policy prescription towards crop diversification in Bihar. The recent rise in area under fruits and vegetables as well as sugarcane has encouraged those who are observing the state’s prospects closely. This essay asks for abundant caution while acknowledging the need and benefits of crop diversification. It explores the colonial agrarian history of Bihar to find similar trends towards crop diversification that did not bring any improvement in the economic conditions of the cultivators involved. The past pattern suggests that the nature of land, labour, credit and produce market was such that it exploited Bihar peasantry to the benefits of those who controlled these crucial inputs as well as channels of international trade. This has important lessons for the policy makers when the path of crop diversification is taken. If the government is serious about increasing crop diversity to boost agricultural growth and incomes of cultivators, then the choice of the cultivators has to be tilted by institutional means.

Book Review on "Factfulness"

Annavajhula J.C. Bose

Volume 41, Issue 2 (Jul - Dec) 2020

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Book Review on "From Cowrie to Crypto – Blockchain and the Future of Money"

Vibhor Verma

Volume 41, Issue 2 (Jul - Dec) 2020

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Book Review on "Unfreeze: How to Create a High Growth Economy after the Pandemic"

Surinder Kaur and Parminder Kaur

Volume 41, Issue 2 (Jul - Dec) 2020

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Beauty Contest and Learning in Rational Expectation based Stationary State

Avinash Kumar Jha

Volume 41, Issue 2 (Jul - Dec) 2020

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The paper explores the condition of instability of stationary state outcome as predicted by learning literature in defence of Rational Expectation Hypothesis-REH. By using Beauty Contest Parable in Grandmont’s temporary equilibrium framework, it is argued that under very weak and reasonable conditions agents extrapolate away from the stationary state. This result is achieved even while ignoring large deviations of the past - a method conclusively criticised by Grandmont.

A Quantitative as well as Qualitative Study of CSR in the Selected Companies of IT Sector based in India

Astha Dewan and Srijana Singh

Volume 41, Issue 2 (Jul - Dec) 2020

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CSR has been an emergent area of research in the recent past. Most of the scholars, academicians and practitioners have made massive contributions in this field. The reason why IT sector is chosen is because it is uniquely positioned in terms of skills, expertise and facilities that can help benefit society in the long run. The companies that have been chosen are Infosys and Wipro as these are the top two companies that have satisfied the legal requirements in the context of CSR and have stayed profitable throughout. The main purpose of this study is to understand the history, concept and background of CSR in India, analyse the CSR expenditure for the post-mandate period of Infosys and Wipro and analyse the relationship between CSR and firm performance (net profit, operating margin, ROA, ROE and market capitalisation) separately for Infosys and Wipro. Lastly, the motive is to analyse the major CSR domains of the selected two companies and comment on the similarities and differences altogether. The sources of data used in this study are secondary and empirical in nature including annual reports of the selected two companies namely; Infosys and Wipro majorly for the post-mandate period (2014-19). The CSR expenditure and the profitability ratios including return on assets and return on equity has been considered based on the review of literature of CSR and firm performance. A CSR index has been created consisting of ten parameters explained in detail in the findings and analysis section. SPSS (statistical package for social sciences) 23 has been used to analyse the correlation and linear regression between the independent variable (CSR index scores) and profitability measures (net profit, operating margin, ROA, ROE and market capitalisation) separately. The findings suggest that in terms of CSR expenditure Infosys contributed more than 2% towards CSR during the financial years 2016-17, 2017-18 and 2018-19 and Wipro has even gone beyond 2% in the financial years 2015-16, 2016-17, 2017-18 and 2018-19. In terms of CSR and firm performance, it can be observed that there is a negative or weak correlation and no linear relationship between the scores of CSR index and the profitability measures with respect to Infosys and Wipro as well. In terms of CSR domains, as compared to Infosys, the CSR domains that can be added to the Wipro’s CSR activities can be rehabilitation of homeless and orphans and disaster management relief. The domains that can be added in the context of both the companies can be gender equality programs, women safety and dignity, enhancement of vocational skills for women and care and support for the elderly. Women can be focused more upon in terms of safety provision now-a-days.

Towards Developing a Theoretical Framework for Measuring the Work Life Balance of Teachers in Higher Education

Kinneri Jain, Ishwar Mittal and Anand Bansal

Volume 41, Issue 2 (Jul - Dec) 2020

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Work Life Balance (WLB) is a concept that is important in all spheres of life whether it is political, economic or social as it has been associated with individuals, families and institutions. Work life balance is not only about families and childcare nor it is about working less, it’s about working smart, giving whatever, you need for both work and home without jeopardizing one for the other and it's necessary for everyone whatever stage one is in life. Hence, there is a need to take into consideration various aspects of family and job and to ascertain to what extent the factors related to work and family help in the attainment of a good life. The building blocks of any society or country are teachers and the teaching profession. The present research paper aims to construct a theoretical framework with regard to WLB of people in the teaching area. The paper aims to identify the variables affecting the WLB of an individual and the variables which define the impact of WLB on individuals in teaching with regard to their life, family and organization with the support of existing literature. Identification of such variables and developing hypotheses thereupon would provide a better insight to understand the problems and expectations of teachers. The working environment and job requirements have become so complex now-a-days in colleges of higher education that the pressure on the teachers juggling with career growth to meet academic standards, has made it difficult for them to achieve work life balance. Measuring the factors affecting the work life balance of teachers in higher education with the help of theoretical framework has certain policy implications for those, who are constantly involved in developing strategies to combat the adverse work life balance situations.

Financial Parameters and Dividend Decisions of Indian Companies: An Empirical Investigation

Bunny Singh Bhatia

Volume 41, Issue 2 (Jul - Dec) 2020

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Purpose: Dividend has significant relevance from the perspective of managers, shareholders and potential investors. In this regard the present paper seeks to demystify various financial factors affecting the dividend decision of Indian companies and presents crucial implications. Methodology: The paper has applied OLS panel regression using two models to establish consistency and reliability. In this study, we have examined top 100 companies based on market capitalization during the year 2007 to 2018. Findings: The paper documented evidence pertaining to three most imperative financial variables which positively and significantly affect dividend policy of Indian companies is dividend history, current earnings and investment opportunities. It will have significant implications for managers, shareholders and academician. Implications: Dividend decisions are the one of the critical decisions of the financial management and have serious implications for managers, shareholder and academicians. The paper will provide implications for the predication of firm’s behaviour during financial crisis caused by COVID 19 and give useful insights to investors in their decision making during that period. From the perspective of investors looking for investment in stock with dividend yield, should invest in those companies having higher profitability, pattern of past dividend and opportunities of investment.

Dynamics of External Commercial Borrowings in India

Swami Prasad Saxena

Volume 41, Issue 2 (Jul - Dec) 2020

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This paper is an attempt to empirically examine the trends and Intricacies of ECB in India. It also tries to analyze the possible effects of new ECB policy announced on 16 January 2019. The study observes that ECB flows in last about three decades have been highly volatile, and the share of ECBs in the total external borrowing in India is rising fast. Though, government is progressively relaxing the ECB norms to boost the economy, there is need of careful management of ECBs by corporates as well as the government. While applying for ECB the corporates need to be cautious about the exchange rate risk and impact on balance sheet debt to use ECBs effectively; the government too should not be unmindful of the dangers of increasing reliance on such borrowings with external risks.