Pub Date : 2023-09-29DOI: 10.17010/ijf/2023/v17i10/168549
Arfat Manzoor, Andleebah Jan, Mohammad Shafi
Purpose: The present study aimed to determine the influence of personality traits and demographic characteristics on the investment behavior of individual investors in North India. Design/Methodology/Approach: The current study adopted a survey method and purposive sampling technique to collect the data from 315 respondents using Google Forms. For analysis, a two-stage analysis approach was adopted. In the first stage, regression analysis was used for hypotheses testing, and in the second stage, an artificial neural network (ANN) approach was adopted to validate the regression results. Findings: The impact of the neurotic trait was found to be significantly positive on short-term investment decisions and significantly negative on long-term investment decisions. Conscientiousness was found to be a positive and significant predictor of long-term investment decisions and an insignificant predictor of short-term investment decisions. Among demographical variables, education was the only variable that positively and significantly impacted short-term investment decisions. In determining the long-term investment decisions, the role of all four demographic variables was found to be insignificant. Practical Implications: This study found its relevance among retail investors as this study would assist them in knowing their personality type before making investment decisions. Originality/Value: Determining the investment behavior of Indian retail investors by debating their personality traits and demographic variances made this study novel. The other feature that adds originality and novelty to this study is the use of a non-linear approach (ANN) along with a linear approach (regression) to predict the significance of the determining factors.
{"title":"Do Personality and Demographic Variances of Individual Investors Challenge the Assumption of Rationality? A Two-Staged Regression Modeling-Artificial Neural Network Approach","authors":"Arfat Manzoor, Andleebah Jan, Mohammad Shafi","doi":"10.17010/ijf/2023/v17i10/168549","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i10/168549","url":null,"abstract":"Purpose: The present study aimed to determine the influence of personality traits and demographic characteristics on the investment behavior of individual investors in North India. Design/Methodology/Approach: The current study adopted a survey method and purposive sampling technique to collect the data from 315 respondents using Google Forms. For analysis, a two-stage analysis approach was adopted. In the first stage, regression analysis was used for hypotheses testing, and in the second stage, an artificial neural network (ANN) approach was adopted to validate the regression results. Findings: The impact of the neurotic trait was found to be significantly positive on short-term investment decisions and significantly negative on long-term investment decisions. Conscientiousness was found to be a positive and significant predictor of long-term investment decisions and an insignificant predictor of short-term investment decisions. Among demographical variables, education was the only variable that positively and significantly impacted short-term investment decisions. In determining the long-term investment decisions, the role of all four demographic variables was found to be insignificant. Practical Implications: This study found its relevance among retail investors as this study would assist them in knowing their personality type before making investment decisions. Originality/Value: Determining the investment behavior of Indian retail investors by debating their personality traits and demographic variances made this study novel. The other feature that adds originality and novelty to this study is the use of a non-linear approach (ANN) along with a linear approach (regression) to predict the significance of the determining factors.","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135297363","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-29DOI: 10.17010/ijf/2023/v17i10/170881
Sheenam Lohan, Arpit Sidhu, Shubham Kakran
Purpose: The stock market is a highly dynamic financial marketplace that drives economic progress. This study employed bibliometric analysis, using tools like Biblioshiny and VOSviewer, to execute quantitative analysis on research papers around the stock market in terms of investor attention. It improved the literature review’s quality by analyzing 632 research papers from the Scopus database. Design/Methodology/Approach: The selected papers from 1994 to 2022 were reviewed and analyzed. A conceptual model identified significant themes, while a thematic map provided a comprehensive visual representation of the interconnections. Results: The analysis yielded noteworthy findings, highlighting a significant surge in academic publications. Most of the research regarding investor attention and the stock market has been concentrated in China, the UK, the USA, and Australia, indicating this topic’s global relevance. Among the identified high-frequency keywords, investor attention, investment, and attention stood out as prominent themes within the literature. Finance Research Letters and Pacific-Basin Finance Journal were identified as influential publication outlets. Originality/Value: This research introduced novel bibliometric analysis techniques, providing robust insights into the stock market concerning investor’s attention. Integrating a conceptual model and thematic map enhanced understanding and contributed innovatively to the field. Practical Implications: The study offered regulatory implications, aiding policymakers in understanding the stock market concerning investor’s attention. Practitioners could utilize the findings for informed decision-making in stock companies and gain insights into emerging research trends.
{"title":"Impact of Investors’ Attention on the Global Stock Market : A Bibliometric Analysis","authors":"Sheenam Lohan, Arpit Sidhu, Shubham Kakran","doi":"10.17010/ijf/2023/v17i10/170881","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i10/170881","url":null,"abstract":"Purpose: The stock market is a highly dynamic financial marketplace that drives economic progress. This study employed bibliometric analysis, using tools like Biblioshiny and VOSviewer, to execute quantitative analysis on research papers around the stock market in terms of investor attention. It improved the literature review’s quality by analyzing 632 research papers from the Scopus database. Design/Methodology/Approach: The selected papers from 1994 to 2022 were reviewed and analyzed. A conceptual model identified significant themes, while a thematic map provided a comprehensive visual representation of the interconnections. Results: The analysis yielded noteworthy findings, highlighting a significant surge in academic publications. Most of the research regarding investor attention and the stock market has been concentrated in China, the UK, the USA, and Australia, indicating this topic’s global relevance. Among the identified high-frequency keywords, investor attention, investment, and attention stood out as prominent themes within the literature. Finance Research Letters and Pacific-Basin Finance Journal were identified as influential publication outlets. Originality/Value: This research introduced novel bibliometric analysis techniques, providing robust insights into the stock market concerning investor’s attention. Integrating a conceptual model and thematic map enhanced understanding and contributed innovatively to the field. Practical Implications: The study offered regulatory implications, aiding policymakers in understanding the stock market concerning investor’s attention. Practitioners could utilize the findings for informed decision-making in stock companies and gain insights into emerging research trends.","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135297514","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-29DOI: 10.17010/ijf/2023/v17i10/170558
Pia Barve, Sushma Nayak
{"title":"Strengthening Market Discipline by Depositors : A TISM and MICMAC Approach","authors":"Pia Barve, Sushma Nayak","doi":"10.17010/ijf/2023/v17i10/170558","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i10/170558","url":null,"abstract":"","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135296701","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-29DOI: 10.17010/ijf/2023/v17i10/171602
Alexander Georgievich Gurinovich, Alexey Alimovich Shakhmametiev
{"title":"Taxation of Economic Cross-Border Operations for Providing Services in Electronic Form","authors":"Alexander Georgievich Gurinovich, Alexey Alimovich Shakhmametiev","doi":"10.17010/ijf/2023/v17i10/171602","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i10/171602","url":null,"abstract":"","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135296706","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.17010/ijf/2023/v17i9/173183
Satyaban Sahoo, Sanjay Kumar
Purpose : The study aimed to empirically investigate the asymmetric volatility spillover relationship among the sectors of the Indian capital market during the COVID-19 period. Methodology : The study employed the asymmetric dynamic conditional correlation (ADCC) model to measure volatility spillover among the sectoral indices with asymmetric effects to assess the impact of bad news. The study further calculated the time-varying conditional correlation. Findings : The empirical analysis indicated short-run and long-run volatility persistence among sectoral indices of the Indian capital market. Furthermore, the results also showed the significant effect of bad news on the volatility of the sectoral indices. The time-varying conditional correlation suggested a high correlation among the sectoral indices during COVID-19. So, there was only a limited opportunity for portfolio diversification among these sectors during the crisis period. Practical Implications : The findings may assist financial advisors in assessing the relationship among sectors of the Indian capital market during the crisis period. While constructing the equity investment portfolio during the crisis period, financial managers must wait for the market to stabilize before determining whether sector diversification is appropriate or required. Originality : The ADCC model presented previously unresearched evidence of volatility spillover among the sectors of the Indian capital market during the COVID-19 crisis. The empirical findings would enable investors to make important investment and portfolio diversification decisions in sectors of the Indian capital market.
{"title":"Volatility Spillover Among the Sectoral Indices of the Indian Capital Market : Evidence from the COVID Period","authors":"Satyaban Sahoo, Sanjay Kumar","doi":"10.17010/ijf/2023/v17i9/173183","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i9/173183","url":null,"abstract":"Purpose : The study aimed to empirically investigate the asymmetric volatility spillover relationship among the sectors of the Indian capital market during the COVID-19 period. Methodology : The study employed the asymmetric dynamic conditional correlation (ADCC) model to measure volatility spillover among the sectoral indices with asymmetric effects to assess the impact of bad news. The study further calculated the time-varying conditional correlation. Findings : The empirical analysis indicated short-run and long-run volatility persistence among sectoral indices of the Indian capital market. Furthermore, the results also showed the significant effect of bad news on the volatility of the sectoral indices. The time-varying conditional correlation suggested a high correlation among the sectoral indices during COVID-19. So, there was only a limited opportunity for portfolio diversification among these sectors during the crisis period. Practical Implications : The findings may assist financial advisors in assessing the relationship among sectors of the Indian capital market during the crisis period. While constructing the equity investment portfolio during the crisis period, financial managers must wait for the market to stabilize before determining whether sector diversification is appropriate or required. Originality : The ADCC model presented previously unresearched evidence of volatility spillover among the sectors of the Indian capital market during the COVID-19 crisis. The empirical findings would enable investors to make important investment and portfolio diversification decisions in sectors of the Indian capital market.","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135688135","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.17010/ijf/2023/v17i9/173184
Aditya Keshari, Amit Gautam
Purpose : The study analyzed the return and volatility spillover among the Indian and overseas stock markets, namely Luxembourg, the United States, and the United Kingdom, where the assets are cross-listed. The increased worry of investors, regulators, and dealers about stock market volatility produced by worldwide integrated stock trading has focused on the symmetric and asymmetric volatility caused by the cross-listing of tradable assets that has damaged the domestic stock market. Methodology : The analysis for the study incorporated the longitudinal time series of daily closing prices from January 01, 2011, to December 31, 2021, of the sample indices taken from the Bloomberg terminal. The study used GARCH, EGARCH, and PARCH models to analyze the return and volatility spillover among the Indian and cross-listed stock markets. Findings : The findings indicated that prior index return volatility was significant and impacted current index return volatility. The findings also suggested that volatility exhibited asymmetric behavior, with positive shocks to volatility having different impacts than adverse shocks. The Luxembourg Stock Exchange was negligible in all models, implying it is exogenous. Practical Implications : It was suggested that investors use information from another market to forecast the behavior of one market. The current analysis supported this assumption by demonstrating the market dominance of the United States. By focusing on market activity in the United States, preventative measures could be taken to minimize worldwide shocks. Originality : The present study incorporated the impact of cross-listing of tradable assets and volatility, which was yet to be investigated earlier despite cross-listing being an essential aspect of the spillover effect.
{"title":"Stock Market Volatility Due to Cross-Listing of Tradable Assets","authors":"Aditya Keshari, Amit Gautam","doi":"10.17010/ijf/2023/v17i9/173184","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i9/173184","url":null,"abstract":"Purpose : The study analyzed the return and volatility spillover among the Indian and overseas stock markets, namely Luxembourg, the United States, and the United Kingdom, where the assets are cross-listed. The increased worry of investors, regulators, and dealers about stock market volatility produced by worldwide integrated stock trading has focused on the symmetric and asymmetric volatility caused by the cross-listing of tradable assets that has damaged the domestic stock market. Methodology : The analysis for the study incorporated the longitudinal time series of daily closing prices from January 01, 2011, to December 31, 2021, of the sample indices taken from the Bloomberg terminal. The study used GARCH, EGARCH, and PARCH models to analyze the return and volatility spillover among the Indian and cross-listed stock markets. Findings : The findings indicated that prior index return volatility was significant and impacted current index return volatility. The findings also suggested that volatility exhibited asymmetric behavior, with positive shocks to volatility having different impacts than adverse shocks. The Luxembourg Stock Exchange was negligible in all models, implying it is exogenous. Practical Implications : It was suggested that investors use information from another market to forecast the behavior of one market. The current analysis supported this assumption by demonstrating the market dominance of the United States. By focusing on market activity in the United States, preventative measures could be taken to minimize worldwide shocks. Originality : The present study incorporated the impact of cross-listing of tradable assets and volatility, which was yet to be investigated earlier despite cross-listing being an essential aspect of the spillover effect.","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135687619","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose : Corporate governance (CG) is the mechanism to direct and control companies. Corporate governance and ownership structure have a direct influence on firm performance. This research paper examined the relationship among three variables: CG, ownership structure, and firm performance. Methodology : CG mechanisms included board independence, CEO duality, and audit committee independence. Insider ownership and foreign ownership determined ownership structure. Return on assets and return on equity were used to assess a company's performance, and Tobin's Q was used to assess market performance. A sample of 50 NSE-listed firms was taken. STATA 14.1 was used for analysis, and multiple and hierarchical regression were used. Findings : The findings indicated that CG variables and ownership structure positively affected firm performance. To elaborate, CEO duality, audit committee independence, insider ownership, and foreign ownership were positively related to firm performance. However, board independence was the only variable that influenced firm performance negatively. Practical Implications : One of the study’s essential findings was the negative impact of board independence on firm performance. This had some practical implications because only a few persons are qualified to act as independent directors. Hence, one person is appointed in many companies simultaneously, leading to biased decision-making. Thus, companies must ensure that independent directors are appointed after proper screening and deliver their duties as expected. Originality : Instead of utilizing the standard system found in the literature, we relied on a single measure structure and used a variety of CG mechanisms.
{"title":"Corporate Governance Mechanism, Ownership Structure, and Firm Performance : Evidence from India","authors":"Surbhi Jain, Lakhwinder Kaur Dhillon, Rashmi Aggarwal, Teena Bagga","doi":"10.17010/ijf/2023/v17i9/173182","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i9/173182","url":null,"abstract":"Purpose : Corporate governance (CG) is the mechanism to direct and control companies. Corporate governance and ownership structure have a direct influence on firm performance. This research paper examined the relationship among three variables: CG, ownership structure, and firm performance. Methodology : CG mechanisms included board independence, CEO duality, and audit committee independence. Insider ownership and foreign ownership determined ownership structure. Return on assets and return on equity were used to assess a company's performance, and Tobin's Q was used to assess market performance. A sample of 50 NSE-listed firms was taken. STATA 14.1 was used for analysis, and multiple and hierarchical regression were used. Findings : The findings indicated that CG variables and ownership structure positively affected firm performance. To elaborate, CEO duality, audit committee independence, insider ownership, and foreign ownership were positively related to firm performance. However, board independence was the only variable that influenced firm performance negatively. Practical Implications : One of the study’s essential findings was the negative impact of board independence on firm performance. This had some practical implications because only a few persons are qualified to act as independent directors. Hence, one person is appointed in many companies simultaneously, leading to biased decision-making. Thus, companies must ensure that independent directors are appointed after proper screening and deliver their duties as expected. Originality : Instead of utilizing the standard system found in the literature, we relied on a single measure structure and used a variety of CG mechanisms.","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135687629","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.17010/ijf/2023/v17i9/173181
Kamal Krishna Ludhani, Sanjay Kumar
Purpose : This study was conducted to provide a comprehensive overview of the significant influences of Indian Journal of Finance publications over the past 11 years. This study analyzed the journal’s publication and citation structures and identified the top authors, institutions, and countries contributing to its content. Methodology : We analyzed the journal’s bibliographic data using VOSviewer, Gephi, and Bibliometrix-R. Through bibliographic coupling and keyword cooccurrence networks, common research themes were identified. In addition, three-field plots were generated to visualize relationships among authors, countries, institutions, and keywords. Findings : The analysis revealed 10 significant research themes from the journal’s publications. These themes encompassed various areas of study, including (a) volatility in the Indian stock market, (b) corporate governance and capital structure, (c) financial inclusion, (d) evaluation of bank performance and efficiency, (e) dividend policy and shareholders’ wealth, (f) behavioral finance, (g) macroeconomic variables and the Indian economy, (h) asset pricing and market efficiency of stock markets, (i) initial public offer pricing and analysis, and (j) mutual funds. Practical Implications : This study provided valuable insights into the influential research themes within the analyzed journal’s publications by conducting a comprehensive bibliometric analysis. The findings contributed to understanding the journal’s knowledge landscape and could serve as a foundation for future research in related fields. Originality : This study offers a detailed retrospective examination of the Indian Journal of Finance from 2011 to 2022. This analysis provided valuable insights into the journal's evolution and contributions within the specified period.
{"title":"A Retrospective Overview of <i>Indian Journal of Finance</i> Between 2011 and 2022","authors":"Kamal Krishna Ludhani, Sanjay Kumar","doi":"10.17010/ijf/2023/v17i9/173181","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i9/173181","url":null,"abstract":"Purpose : This study was conducted to provide a comprehensive overview of the significant influences of Indian Journal of Finance publications over the past 11 years. This study analyzed the journal’s publication and citation structures and identified the top authors, institutions, and countries contributing to its content. Methodology : We analyzed the journal’s bibliographic data using VOSviewer, Gephi, and Bibliometrix-R. Through bibliographic coupling and keyword cooccurrence networks, common research themes were identified. In addition, three-field plots were generated to visualize relationships among authors, countries, institutions, and keywords. Findings : The analysis revealed 10 significant research themes from the journal’s publications. These themes encompassed various areas of study, including (a) volatility in the Indian stock market, (b) corporate governance and capital structure, (c) financial inclusion, (d) evaluation of bank performance and efficiency, (e) dividend policy and shareholders’ wealth, (f) behavioral finance, (g) macroeconomic variables and the Indian economy, (h) asset pricing and market efficiency of stock markets, (i) initial public offer pricing and analysis, and (j) mutual funds. Practical Implications : This study provided valuable insights into the influential research themes within the analyzed journal’s publications by conducting a comprehensive bibliometric analysis. The findings contributed to understanding the journal’s knowledge landscape and could serve as a foundation for future research in related fields. Originality : This study offers a detailed retrospective examination of the Indian Journal of Finance from 2011 to 2022. This analysis provided valuable insights into the journal's evolution and contributions within the specified period.","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135687735","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-31DOI: 10.17010/ijf/2023/v17i8/173009
Anil Kumar, Madhu Totla
Purpose : The study aimed to broaden and contextualize the emerging knowledge about the impact of initial public offerings (IPOs) on the operating performance and financial health of public firms in India and whether oversubscription and underpricing of the IPO firms determined the change in performance. Design : It entailed the comparison of pre-IPO and post-IPO performance for 3 years by employing data from 95 IPO firms getting listed on the main board segment of NSE and BSE in India between April 2012 and March 2018. Methodology : The methodology consisted of both univariate and multivariate data analysis techniques. Multivariate regression analysis determined whether underpricing and subscription levels determined IPO firms’ post-issue long-run operating performance. Findings : The study suggested that operating performance dropped significantly while financial health improved post-IPO. Both oversubscription and underpricing were not predicting factors of change in performance post-IPO. Rather, issue size, offer price, and post-issue promoter holding significantly and negatively impacted the change in performance ; whereas, age positively and significantly determined the change in performance after the IPOs. Practical Implications : The study recommended that, with the indication of earnings management being done just before the IPOs, investors need to exercise caution in relying on the financials immediately before the IPO. The findings of the study will guide investors in making accurate investments in the primary and secondary equity markets. Originality : Unlike previous research, this study examined the impact of IPOs on the firms’ financial health post-issue and whether subscription to IPOs determined the change in performance of new listings on the main board segment in India.
{"title":"Do Oversubscribed IPOs Perform Better in the Long Run? Evidence from the Emerging Economy of India","authors":"Anil Kumar, Madhu Totla","doi":"10.17010/ijf/2023/v17i8/173009","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i8/173009","url":null,"abstract":"Purpose : The study aimed to broaden and contextualize the emerging knowledge about the impact of initial public offerings (IPOs) on the operating performance and financial health of public firms in India and whether oversubscription and underpricing of the IPO firms determined the change in performance. Design : It entailed the comparison of pre-IPO and post-IPO performance for 3 years by employing data from 95 IPO firms getting listed on the main board segment of NSE and BSE in India between April 2012 and March 2018. Methodology : The methodology consisted of both univariate and multivariate data analysis techniques. Multivariate regression analysis determined whether underpricing and subscription levels determined IPO firms’ post-issue long-run operating performance. Findings : The study suggested that operating performance dropped significantly while financial health improved post-IPO. Both oversubscription and underpricing were not predicting factors of change in performance post-IPO. Rather, issue size, offer price, and post-issue promoter holding significantly and negatively impacted the change in performance ; whereas, age positively and significantly determined the change in performance after the IPOs. Practical Implications : The study recommended that, with the indication of earnings management being done just before the IPOs, investors need to exercise caution in relying on the financials immediately before the IPO. The findings of the study will guide investors in making accurate investments in the primary and secondary equity markets. Originality : Unlike previous research, this study examined the impact of IPOs on the firms’ financial health post-issue and whether subscription to IPOs determined the change in performance of new listings on the main board segment in India.","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136035454","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-31DOI: 10.17010/ijf/2023/v17i8/173010
Pratiksinh S. Vaghela, Jimmy M. Kapadia, Harsheshkumar R. Patel, Ashishkumar G. Patil
Purpose : The paper investigated the interrelationship between university students’ financial literacy, attitude, and financial behavior. The study examined the effect of financial literacy on financial behavior via financial attitude. Methodology : The study adopted an explanatory research design that investigated the interrelationship between financial literacy, attitude, and financial behavior. A survey method was used to collect the data with a structured questionnaire from university students from Surat, Gujarat. Data analysis was performed using a structural equation modeling approach with the help of SPSS and AMOS version 21. Findings : The study found that university students’ financial literacy scores were high. The students scored an average of 70% while answering questions related to financial literacy. The results of two hypotheses in the study revealed that university students with high scores on financial literacy had positive financial attitudes, which leads to more desirable financial behavior. Practical Implications : Universities and governments should develop a mechanism to identify students with poor financial literacy levels and offer opportunities for skill-based training to upgrade their financial knowledge. Furthermore, marketers of financial products and services might develop financial awareness programs for students with poor financial literacy, which would lead to targeting their future potential customers. Marketers might also use their level of financial literacy to segment their future marketing strategies for this cohort. Originality : The study revealed the relationship between financial literacy, attitude, and behavior among students in an emerging market in India.
{"title":"Effect of Financial Literacy and Attitude on Financial Behavior among University Students","authors":"Pratiksinh S. Vaghela, Jimmy M. Kapadia, Harsheshkumar R. Patel, Ashishkumar G. Patil","doi":"10.17010/ijf/2023/v17i8/173010","DOIUrl":"https://doi.org/10.17010/ijf/2023/v17i8/173010","url":null,"abstract":"Purpose : The paper investigated the interrelationship between university students’ financial literacy, attitude, and financial behavior. The study examined the effect of financial literacy on financial behavior via financial attitude. Methodology : The study adopted an explanatory research design that investigated the interrelationship between financial literacy, attitude, and financial behavior. A survey method was used to collect the data with a structured questionnaire from university students from Surat, Gujarat. Data analysis was performed using a structural equation modeling approach with the help of SPSS and AMOS version 21. Findings : The study found that university students’ financial literacy scores were high. The students scored an average of 70% while answering questions related to financial literacy. The results of two hypotheses in the study revealed that university students with high scores on financial literacy had positive financial attitudes, which leads to more desirable financial behavior. Practical Implications : Universities and governments should develop a mechanism to identify students with poor financial literacy levels and offer opportunities for skill-based training to upgrade their financial knowledge. Furthermore, marketers of financial products and services might develop financial awareness programs for students with poor financial literacy, which would lead to targeting their future potential customers. Marketers might also use their level of financial literacy to segment their future marketing strategies for this cohort. Originality : The study revealed the relationship between financial literacy, attitude, and behavior among students in an emerging market in India.","PeriodicalId":38337,"journal":{"name":"Indian Journal of Finance","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136035455","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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