Articles
VALIDITY OF CAPM BY USING PORTFOLIOS: EVIDENCE FROM INDIAN CAPITAL MARKET

K.M. Yaseer and K.P. Shaji

Volume 39, Issue 1 (Jan-Jun)

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This article tests the validity of Capital Asset pricing Model and compares the results of 16 periods including 14 sub periods which comprises 3 years each for the prediction of the expected returns in the Indian capital Market. The tests were conducted on portfolios having different security combinations. By using Black Jenson and Scholes methodology (1972) the study tested the validity of the model for the whole and different sub periods. The study used daily data of the BSE 100 index for the period from January 2001 to December 2010. Empirical results mostly in favor of the standard CAPM model. However, the result does not find conclusive evidence in support of CAPM.

A STUDY OF RELATIONSHIP OF FRANCHISOR AND FRANCHISEE

Kavita Sharma and Parminder Kaur

Volume 39, 2018

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In the relationship of franchisor and franchisee, the franchisor relies heavily on the franchisee for the financial information and information of the consumers to access local markets, and the franchisees are dependent on the trademarks and know-how and other support of the franchisors. Franchises always have a desire for autonomy to run their business, but franchisor don’t want to give the franchisee more autonomy because he thinks that if he give more autonomy to the franchisee then franchisee can compromise on the quality to save the cost and this can damage the reputation of the entire franchise system of franchisor but on the other hand if franchisor give less autonomy to the franchisee this may result in non satisfied franchisee. Therefore, the challenge in managing the franchising is to balance franchisor desire of maintaining brand image on the one hand and franchisee desire of autonomy on the other hand. This article examines the impact of relational governess, success, competition and Brand name as determinants to determine the level of autonomy and control of the franchisee. For this study Primary Data is collected through Structured Questionnaire for fast-food restaurants employees. The data were collected on a five-point Likert-scale. We had collected Secondary Data through various Journals and Reports and various websites. The data will be tabulated and reviewed methodically with the help of suitable tools and techniques such as regression etc.

RISK MEASURES IN FINANCE: CONGRUENT OR CONTRASTING?

Vaibhav Lalwani, Prateek Bedi and Devesh Shankar

Volume 39, Issue 1 (Jan-Jun)

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Risk has been defined and measured in different ways by academicians and practitioners. The choice of proxy for risk measurement can have a direct and conclusive impact on investment decisions. The question that we aim to answer in the study is: Does the choice of risk-adjusted performance measure really make a difference in the ranking of equity portfolios? To approach the issue, we categorise risk-adjusted performance measures in four groups: Volatility Based Risk Measures; Sensitivity Based Risk Measures; Downside Risk Measures and Tail Risk Based Measures. We calculate values of all these risk-adjusted measures for 111 equity growth oriented mutual fund schemes spread across AMCs (Asset Management Companies) in India for a period of 10 years starting June 2005 to June 2015. We use Spearman’s and Kendall’s rank correlation and prepare a cross-sectional matrix to find out the extent of congruence among ranking of schemes according to all risk-adjusted measures. We find a substantial degree of positive and significant concordance among rankings obtained by equity portfolios on the basis of different for risk-adjusted measures with rank correlations ranging from 0.61 to 0.99. The results of the study indicate that the choice of risk-adjusted measure is broadly inconsequential to investment decisions in the context of Indian equity markets. The findings are relevant for retail and institutional investors, fund managers, market regulators and academicians.

PRIVATE EQUITY IN INDIA: GROWTH AND EMERGENCE

Neerza, Vanita Tripathi and Simmarpreet Kaur

Volume 39, Issue 1 (Jan-Jun)

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The purpose of this study is to understand the trend, growth and emergence of private equity investment in India. Study involves discussion on the concept of private equity, its structure, emergence and drivers of growth. Data on private equity investment (deal value and volume) and exit (deal value and volume) is collected from 2004q1 to 2017q and log-lin regression analysis is performed. Study finds that private equity investment is a volatile activity in India. Over the past 13 years (2004-2017), the year 2015 attracted maximum investments and witnessed highest exits from private equity investors. IT&ITeS and real estate are the most preferred sectors. And late and growth stage companies are the most desired businesses for investment such institutional investors. Regression analysis report quarterly growth of 3.8% in investment value and 2.8% in investment volume from private equity investors. Also, results show quarterly growth of 3.4% in exit value and 2.7% in exit volume.

BOOK REVIEW OF CONFLICTS OF INTEREST: MY JOURNEY THROUGH INDIA’S GREEN MOVEMENT

Annavajhula J.C. Bose

Volume 39, Issue 1 (Jan-Jun)

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This is one of the best books I have ever read. It is a boldest taking stock of the state of affairs with respect to environmental harm and welfare in our country, without any apriori ideological blinkers, that leaves the reader with so many uncomfortable truths that evoke “the deepest sighs and the frankest shadows”, so to speak.The author, Sunita Narain (who also represents the spirit of Anil Agarwal the journalist and environmentalist) is the Director General of the Centre for Science and Environment, New Delhi; Director of the Society for Environmental Communications, and the editor of the fortnightly magazine, Down to Earth. She indeed represents the most exemplary tradition of political activism for common good in our country, and gives us its concrete flavour through this book.

BOOK REVIEW OF NO ONE UNDERSTAND YOU AND WHAT TO DO ABOUT IT

Monika Bansal

Volume 39, Issue 1 (Jan-Jun)

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Human beings have a proclivity to garble other people’s feedback to fit their own views. We are often misconstrued by people around, regardless of our efforts to communicate clearly. Communication is vital, however, the irony is that people have a remarkably tough time when it comes to knowing what exactly they are communicating. We assume that other individuals see us as we see ourselves, and that they see us as we truly are. However, the uncomfortable truth is that our daily interactions are often shaped by subtle biases that alters how other people perceive us and also alters our perceptions of them. When people don’t come across the way they intend to, it becomes vexing, resulting in disconnect that may lead to big problems in their personal and professional lives. Heidi Grant Halvorson, author and social psychologist clearly states that “the aim of this book is to facilitate an understanding of how other people really see us, and give us tools to alter our words (when necessary), and actions so that you can send the signal you want to send”.

BOOK REVIEW OF IN SEARCH OF EXCELLENCE (LESSONS FROM AMERICA'S BEST-RUN COMPANIES)

Kamaldeep Kaur Sarna

Volume 39, Issue 1 (Jan-Jun)

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The beauty of the book lies in the fact that these eight basics of management excellence are not something out of the box theories that everyone must have had expected, but instead these are like those golden phrases of truth that are easy to say and agree upon but very difficult to implement and execute. These all theories are very much interrelated and revolve around the most significant asset or the only ‘natural resource’ of any company – ‘people’.

SOCIAL SECURITY PRACTICES IN CO- OPERATIVE AND PRIVATE SUGAR MILLS OF PUNJAB: A COMPARATIVE STUDY

Ashutosh Gupta and Gurpreet Randhawa

Volume 38, Issue 2

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Social security benefits are a distinct part of the social policy of Government of India. Being a welfare state, India has a special social security mechanism for the workers employed in different industries and sugar industry is no exception. All the social security legislations are applicable on sugar industry except the Employees State Insurance Act, 1948 as it not applicable on seasonal industries like sugar industry. Considering the significance of social security benefits for the socio-economic development of the country, the present paper attempts to examine the current state of social security measures as perceived by the workers. With the help of a structured questionnaire data was collected from a sample of 490 workers (280 from co-operative sugar mills and 210 from private sugar mills of Punjab) drawn using referral sampling method based upon proportional representation of total population. The study concluded that co-operative and private sugar mills differ significantly from each other on maximum parameters of social security benefits. Most of workers of the co-operative sugar mill perceived social security measures to be more simple, useful, satisfactory and sufficient in comparison to the private sugar mill workers.

TRENDS AND PATTERN OF REMITTANCES FROM ABROAD TO INDIA

Tarun Manjhi

Volume 38, Issue 2

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India has been largest recipient of remittances for long time. Remittances play important role in economic development of any country particularly under developed and developing countries because it is an important and stable source of foreign exchange reserve and external finance. Apart from minimising gap between demand and supply of capital, it also facilitates consumption of different kinds of goods and services to migrants` households. This paper broadly tries to analyse change in trends and patters of inflow of remittances in India and changes in source of Indian remittances over period of time.

COST EFFICIENCY OF SCHEDULED COMMERCIAL BANKS: EMPIRICAL EVIDENCE FROM INDIA

Aparna Bhatia and Megha Mahendru

Volume 38, Issue 2

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The paper endeavours to assess the Cost Efficiency (CE) scores of all Scheduled Commercial Banks operating in India. In order to have comprehensive vision the cost efficiency is evaluated across ownerships well to identify the best performing and worst performing banking sector. The study also determines the nature of Return to Scale (RTS) of the Indian banking industry. Further, the paper recognizes the number of banks operating as leaders and laggards according to Cost Efficiency and its component scores. The results of Data Envelopment Analysis (DEA) suggest that Indian Scheduled Commercial Banks have never achieved full Cost Efficiency score of 1 in any of the years from 2002-03 to 2012-13. The sector-wise findings highlight that Foreign Sector Banks are the most cost efficient banks followed by Private Sector Banks and at last the Public Sector Banks.