Authors: Rastogi Shailesh, Kanoujiya Jagjeevan, 

Journal: Social Responsibility Journal, 2023.

Publication date: 10 Nov 2023

Publisher: Emerald Publishing. 

URL: Access Paper

Abstract:

The purpose of the study is to explore the association of disclosures for the performance of banks in India. Design/methodology/approach: Panel data analysis (utilising static and dynamic models) is applied on the data of 34 Indian banks (for time-frame 2015–2019) to explore the association of disclosures (as transparency and disclosure index) with the performance of banks (as profitability, risk-taking and technical efficiency (TE)). The regulation, competition and ownership concentration variables are taken as control variables. Findings: None of the banks’ performance measures applied in the study is significantly associated with the disclosures. This situation implies that disclosures do not impact the performance of the banks in India. The reason is that disclosures and performance are two different activities that aim at different purposes. Research limitations/implications: This study does not provide output for the association between disclosures and the value of the banks and confines itself to explore the association between disclosures and performance of the banks only. This limitation can be the future scope of the study. Originality/value: There is no other study that solely focuses on exploring the association of disclosures with the performance of the banks. Disclosure has more significant importance in banks because of the inherent nature of opaqueness in banking operations. Therefore, the current study’s findings have substantial implications for policymakers, managers and investors of the banks.

Authors: Rastogi Shailesh, Singh K.,  Kanoujiya Jagjeevan.

Journal: Social Responsibility Journal, 2023.

Publication date: 01 Nov 2023

Publisher: Emerald Publishing. 

URL: Access Paper

Abstract:

Nowadays, informed decision-making is catching up. Technological advancements and computing ability further fuel and facilitate this tilt toward informed decision-making. In such a scenario, data is cynosure. Therefore, the ability to gather data by a nation (incredibly accurate public data) becomes equally important and relevant, as measured by statistical performance indicators (SPI). This study aims to explore the association of financial inclusion (FI); environmental, social and governance (ESG); poverty; and SPI. Design/methodology/approach: The panel data of 140 nations for nine years are gathered to explore the association of FI, ESG and poverty with the SPI. Panel data estimation is conducted to arrive at the results. Findings: The findings of this study highlight mixed outcomes for FI. ESG is positively associated with SPI, but poverty is not associated with SPI. These findings imply that an increase in FI may reduce the statistical capacity of the nations. An increase in ESG increases the capacity. However, change in poverty does not influence the SPI. The recommendation based on this study’s outcome suggests auditing the FI and poverty vis-à-vis SPI to ensure SPI’s veracity and robustness in the long run. Originality/value: The way in which the individual social, economic and environmental indicators influence the SPI needs to be tested to establish the veracity and robustness of the SPI, which is barely researched as observed in the literature.

Authors: Kanoujiya Jagjeevan, Bhimavarapu V.M., Rastogi Shailesh.

Journal: Vision, 2023.

Publication date: Nov 2023

Publisher: Sage Publications India Pvt. Ltd

URL: Access Paper

Abstract:

Banks are facing varied issues worldwide. The existing set of performance measures of banks lack a cohesive and concerted approach for adequate fulfilment of the purpose. This study proposes a holistic view of the bank performance, which includes profitability, risk-taking (non-performing asset [NPA]), and regulation. It has been observed that Indian banks fare miserably in this litmus test of comprehensive performance measure. The meanest of the expectation that NPA should be affected by the regulatory mechanism is found surprisingly missing in the Indian banks. The existing literature has not taken a holistic view of bank performance, and therefore, the findings of this study provide enough impetus to all the stakeholders of the banks to respond. Policy makers and regulatory bodies can redirect both the banking governance and regulation so that the basic tenet of comprehensive bank performance expectations, as raised in this study, are met reasonably.

Authors:  Rastogi Shailesh, Kanoujiya Jagjeevan, Tejasmayee P., Parashar N., Dani A.

Journal: Journal of Risk and Financial Management.

Publication date: Oct 2023

Publisher: Multidisciplinary Digital Publishing Institute (MDPI).

URL: Access Paper

Abstract:

The literature abounds with studies on the impact of the growth of nations on the environment. However, studies on the financial materiality of environmental concerns are found less often. This study aims to determine the impact of environmental concerns on a nation’s GDP per capita (GDPC). In addition, the influence of developed nations and democracy is also explored. The data for 106 countries and ten years (2011–2020) are procured from World Bank’s official website. The countries with incomplete data for a balanced panel are not included. Panel data econometrics (quantile regression) is applied to analyze the data. Environmental concerns are measured with the help of environmental efficiency (EE) using data envelopment analysis (DEA). It is found that environmental efficiency (EE) negatively impacts the GDPC for low levels of GDPC. However, no association of EE with GDPC is witnessed in the case of high GDPC levels. In addition, developed nations positively moderate the EE’s impact on the GDPC when the GDPC levels are high. Moreover, democratic nations negatively moderate the EE’s impact on the GDPC when low GDPC levels exist. The main implication of the current study is that developed high GDPC countries could bear a significant chunk of the cost of EE. This way, the adverse impact of an increase in EE on the GDPC (by low GDPC counties) could be dodged, and by the efforts of developed high GDPC countries, EE could be increased significantly without adversely impacting their GDPC. © 2023 by the authors.

Authors: Sidhu Anureet Virk, Abraham, Rebecca, Bhimavarapu Venkata Mrudula, Kanoujiya Jagjeevan, Rastogi Shailesh. 

Journal: Journal of Risk and Financial Management.

Publication date: Sept 2023

Publisher: Multidisciplinary Digital Publishing Institute (MDPI).

URL: Access Paper

Abstract:

The current study investigates the impact of the liquidity coverage ratio (LCR) on the efficiency of Indian banks for the period 2010 to 2019. The study examines the effect of internal bank elements like ownership structure, transparency and disclosure, and technological advancement on the relationship between the LCR and efficiency. Bank efficiency proxied as technical efficiency is evaluated by applying the data envelope analysis approach. Applying the panel data regression technique, the authors discover that the LCR has a positive impact on the technical efficiency at a constant return to scale of banks. The relationship between the LCR and the technical efficiency at a variable return to scale is non-linear. Initially, as liquidity increases, the efficiency of banks improves, after reaching its optimum level, efficiency starts to decline. Furthermore, liquidity tends to improve efficiency of banks with higher promoter stakes, whereas opposing results are evidenced for institutional investors and technological advancement. © 2023 by the authors

Authors: Rastogi Shailesh, Doifode Adesh, Kanoujiya Jagjeevan, Singh Satyendra Pratap. 

Journal: South Asian Journal of Business Studies.

Publication date: 30 Aug 2023

Publisher: Emerald Publishing.

URL: Access Paper

Abstract:

Purpose: Crude oil, gold and interest rates are some of the key indicators of the health of domestic as well as global economy. The purpose of the study is to find the shock volatility and price volatility effects of gold and crude oil market on interest rates in India. Design/methodology/approach: This study finds the mutual and directional association of the volatility of gold, crude oil and interest rates in India. The bi-variate GARCH models (Diagonal VEC GARCH and BEKK GARCH) are applied on the sample data of gold price, crude oil price and yield (interest rate) gathered from November 30, 2015 to November 16, 2020 (weekly basis) to investigate the volatility association including the volatility spillover effect in the three markets. Findings: The main findings of the study focus on having a long-term conditional correlation between gold and interest rates, but there is no evidence of volatility spillover from gold and crude oil on the interest rates. The findings of the study are of great importance especially to the policymakers, as they state that the fluctuations in prices of gold and crude oil do not adversely impact the interest rates in India. Therefore, the fluctuations in prices of gold and crude may generally impact the economy, but it has nothing to do with interest rate in particular. This implies that domestic and foreign investments in the country will not be affected by gold and crude oil that are largely driven by interest rates in the country. Practical implications: Gold and crude oil are two very important commodities that have their importance not only for domestic affairs but also for international business. They veritably influence the economy including forex exchange for any nation. In addition to this, the researchers believe the findings will provide insights to policymakers, stakeholders and investors. Originality/value: Gold and crude oil undoubtedly influence the exchange rates but their impact on the interest rates in an economy is not definite and remains ambiguous owing to the mixed findings of the studies. The lack of studies related to the impact of gold and crude oil on the interest rates, despite them being essentials for the health of any economy is the main motivation of this study. This study is novel as it investigates the volatility impact of crude oil and gold on interest rates and contributes to the existing literature with its findings. © 2021, Emerald Publishing Limited.

Authors: Kanoujiya Jagjeevan, Jain Pooja, Banerjee Souvik, Kalra Rameesha, Rastogi Shailesh, Bhimavarapu Venkata Mrudula.

Journal: Journal of Risk and Financial Management.

Publication date: Aug 2023

Publisher: Multidisciplinary Digital Publishing Institute (MDPI)

URL: Access Paper

Abstract:

The firm’s valuation (FV) is the key element for all stakeholders, particularly the investors, for their investment decisions. The main impetus of this research is to estimate the effects of the debt ratio (DR, i.e., leverage) on the FV (i.e., assets and market capitalisation) of the non-financial firms listed in India. The quantile panel data regression (QPDR) on the secondary data of 76 non-financial BSE-100 listed firms in India is employed. This study also checks the effect of the net profit margin (NPM) as profitability on the association between DR and FV. The QPDR estimates result in multiple quantiles and provide evidence in scenarios. The findings reveal a positive relationship of DR to assets only in higher quantiles, i.e., 90%ile), and a negative association of DR is found with a market capitalisation in all quantiles. Under the interaction effect, profitability (NPM) does not affect the association of DR with assets but negatively affects the association of debt ratio with market capitalisation in the middle (50%) quantile. The findings indicate that leverage (DR) affects a firm’s value. The study’s outcomes are helpful to all stakeholders, particularly investors, to realise the leverage (DR) as a critical indicator of FV before making any investment decisions. Managers should also consider lower debt ratios for better firm value. The present analysis is original and holds novelty in the form of the moderating role of the net profit margin, i.e., the profitability of the firm between DR and FV in the non-financial firm in India. To the best of our knowledge, no such studies have been performed to look for the association of the debt ratio with a firm’s value under the effect of profitability in different quantiles using quantile regression. © 2023 by the authors.

Authors: Rastogi Shailesh, Kanoujiya, Jagjeevan.

Journal: Tourism Review.

Publication date: 11 July 2023

Publisher: Emerald Publishing.

URL: Access Paper

Abstract:

Purpose: This study aims to determine the mutual association between the volatility of macroeconomic indicators (MIs) and India’s tourism demand. Design/methodology/approach: Bivariate generalized autoregressive conditional heteroscedasticity (GARCH) models are applied to estimate the volatility spillover effect (VSE) from one market to another. Compared to the other methods, bivariate GARCH has wide acceptance for estimating the VSE. The monthly MIs and tourism demand data (2012–2021) are gathered for empirical analysis. Findings: The evidence of the growth-led tourism (GLT) demand is seen. In the short term, tourism-led growth (TLG) is indicated. However, this TLG does not sustain itself in the long run. There is significant evidence in favour of the VSE from the MIs to the tourism demand ensuring GLT in India. Practical implications: The main implication of the current study is to ignore the short-term influence of tourism demand on the economy because it does not sustain itself in the long run. However, the long-term influence of macroeconomic indicators on tourism demand should be seen with caution. Hedging, if possible, may be considered to protect the tourism sector’s interests from adverse economic fallouts. Originality/value: There is a lack of studies on the volatility (especially on the VSE) between MIs and tourism demand. Hence, this study fills the research gap and presents a novel and unique contribution to the extent of the knowledge body on the topic and significantly contributes. © 2023, Emerald Publishing Limited.

Authors: Kanoujiya Jagjeevan, Rastogi Shailesh, Abraham Rebecca, Bhimavarapu Venkata Mrudula. 

Journal: Journal of Risk and Financial Management.

Publication date: 01 July 2023

Publisher: Multidisciplinary Digital Publishing Institute (MDPI).

URL: Access Paper

Abstract:

Firms’ financial distress (FD) is a major issue for smooth business activities. Timely recognition of FD should be a prime concern; otherwise, it may cause a nasty bankruptcy situation. The FD issue is paramount to researchers, policymakers, and investors. Several factors, whether they are financial or non-financial, may be responsible for financial distress. Such aspects specific to the firms have been explored. Exogenous factors such as competition can also be responsible for a firm’s FD situation. In view of this, this study proposes to determine competition’s impact on financial distress in the Indian context. BSE 100 (“Bombay Stock Exchange”)-listed non-financial firms (NFFs) in India, over a timeframe of 2016–2020, are incorporated in this study. Panel data econometrics is performed for hypothesis testing. This study is novel in its approach, employing multi-technique analysis for measuring financial distress. FD is measured using Altman Z-scores, BOS, and AC distress scores variants. The Boone index (BI) and Lerner index (LI) are undertaken for the competition assessment of NFFs in India. The findings have contrasting views based on BI and LI; BI is positively connected to Z-scores; however, LI negatively connects to Z-scores. The findings suggest that competition (reverse of BI) positively affects financial distress (reverse of Z-score), while competition (reverse of LI) has an adverse effect on FD. It is also found that competition as BI affects FD non-linearly (inverted U shape connection). This means that competition (or market power) initially increases financial distress (or financial stability), and after a specific limit, it reduces financial distress. It can also be said that market power improves financial soundness to a specific limit, and after that, it starts decreasing financial stability. The study’s findings provide fresh and exciting evidence for the connectivity of competition and financial distress. This situation has noticeable implications for all stakeholders and policymakers concerned with the survival of Indian listed firms. The significant connection of competition with financial distress implies that all stakeholders should consider competition an essential element for a firm’s financial distress. © 2023 by the authors.

Authors: Pushp Aman, Gautam Rahul Singh, Tripathi Vikas, Kanoujiya Jagjeevan, Bhimavarapu Venkata Mrudula, Parashar Neha.

Journal: Journal of Risk and Financial Management.

Publication date: 01 May 2023

Publisher: Multidisciplinary Digital Publishing Institute (MDPI).

URL: Access Paper

Abstract:

Financial inclusion is an emerging economic growth paradigm, especially in developing economies like India. It is an essential barometer for the all-encompassing growth of a country and its economy. However, there is still a debate regarding the effect of Financial Inclusion (FI) on achieving sustainable development. This study aims to determine if FI helps achieve Sustainable Development Growth (SDG) in India and if internet subscribers significantly influence the connection between FI and SDG. Secondary data from 16 states and one UT in India have been collected for 2017–2019. Therefore, the sample data is recent and covers a large country span. The data source is NITI Aayog and PMFBY (“Pradhan Mantri Fasal Bhima Yojana”) reports. The findings of this research are that FI has a positively significant relationship with sustainable development goals (SDG) in India. However, when the internet subscribers are high, the FI’s positive association with SDG gets reduced. PMFBY and SDG have been used for the first time, along with internet subscribers as moderators. The outcome has direct policy implications for improving the nation’s financial inclusion and economic growth. © 2023 by the authors.

Authors: Kanoujiya Jagjeevan, Abraham Rebecca, Rastogi Shailesh, Bhimavarapu Venkata Mrudula.

Journal: Journal of Risk and Financial Management.

Publication date: 01 April 2023

Publisher: Multidisciplinary Digital Publishing Institute (MDPI).

URL: Access Paper

Abstract:

Transparency and disclosure (T&D) of information trigger the interest of all stakeholders, including investors in a company. Cognizance of the company’s financial health before investing is very necessary. Disclosure of information in the firm’s financial reports reflects the firm’s financial performance. A firm’s financial health protects investors’ and other stakeholders’ interests and the firm’s long-term sustainability. Owing to the importance of T&D and a firm’s financial health, this paper investigates the impact of T&D on the financial distress (FD) of non-financial firms (NFFs) listed in India. This study examines both linear and nonlinear connectivity of T&D and financial distress (FD). Their association is also investigated in a competitive scenario (under the moderating effect of competition). The panel data analysis is incorporated into the study having 78 NFFs as cross-sectional units with a timeframe from 2016 to 2020. Altman Z-score measures a firm’s FD (higher Z-score means low FD). BOS (Berger, Ofek and Swary) and AC (Almeida and Campello) scores are taken to consider investors’ perspectives of the firm’s FD. The T&D and Lerner indexes are used to assess the level of T&D and competition. The findings reveal that a higher T&D level decreases a firm’s financial stability or increases a firm’s FD. In nonlinear association, it is found that T&D has an inverted U-curved connection with financial stability or U-curved association with FD. It indicates that initially, higher T&D reduces FD, and after a threshold, it increases FD. However, under competition, T&D is not found to be significantly impactful for FD. The study is novel as no previous study has focused on such association under competition and taking investors’ perspective of a firm’s FD. © 2023 by the authors.

Authors: Kanoujiya Jagjeevan, Singh Kuldeep, Rastogi Shailesh. 

Journal: Managerial Finance.

Publication date: 27 March 2023

Publisher: Emerald Publishing.

URL: Access Paper

Abstract:

Purpose: Ownership concentration (OC) is an essential element of corporate governance (CG) for a firm’s performance. The purpose of the study is to investigate the connectivity of OC (particularly considering promoters’ holdings) with the firm’s financial distress (FD) of non-financial firms (NFF) listed in India. Design/methodology/approach: The panel data regression analysis (applying quantile regression for the 25th quantile, 50th quantile, and 75th quantile) is employed to inspect the connection between OC (promoters’ holdings) and the firm’s FD (computed using Altman Z-scores). The data for a cross-section of 78 listed firms (non-financial) in India, considering the time frame of five years (2015–16 to 2019–20), are cumulated for the study. The leverage (leverage ratio), competition (Lerner index), valuation (mcap), sales, and profitability (net profit margin) variables are incorporated as control variables. Findings: The study’s findings reveal that OC (promoters’ holdings) positively relates to the firm’s FD because OC negatively associates with Zscore (as Zscore is inverse to FD). Additionally, the non-linear association also indicates positive connectivity of OC and Zscore (a U shape association), alternatively showing a negative non-linear connection of OC (promoters’ holdings) with the firm’s FD (inverse U shape association). This result implies that initially, promoters’ holdings enhance the firm’s FD, and after a maximum threshold, promoters’ holdings start reducing FD in non-financial listed firms in India. The findings also show an interesting aspect of OC at different quantiles. The results indicate that a higher OC is powerful when distress is both high and low to achieve stability. Conversely, less OC among promoters is required to achieve such stability when the distress is medium (50th quantile). Research limitations/implications: The scope of the study is limited to NFFs listed in India, which is one of the limitations of the present paper. Hence, this does not provide evidence for financial firms. Only one aspect of OC (promoters’ holdings) is considered in the current study. However, OC can also be explored for FD in terms of institutional and retail investors. These limitations can be considered as the present study’s future scope. Originality/value: Most of the studies regarding OC have explored the broader aspect of OC. However, the current study has narrowed the OC to promoters’ holdings. No other study exclusively examines the association of OC (as promoters’ holdings) with the firm’s FD. Promoters’ holdings have a more significant role in a firm’s CG practices because of direct involvement of promoters’ holdings in business activities. Thus, the present study’s findings have notable implications for managers, policymakers, and investors concerned with the financial health of firms. © 2022, Emerald Publishing Limited.

Authors: Sidhu Anureet Virk, Jain Pooja, Singh Satyendra Pratap, Kanoujiya Jagjeevan, Rawal Aashi, Rastogi Shailesh, Bhimavarapu Venkata Mrudula.

Journal: Journal of Risk and Financial Management.

Publication date: 01 Feb 2023

Publisher: MDPI

URL: Access Paper

Abstract:

The present study primarily examines the impact of financial distress (FD) on the dividend policy of 33 banks working in the Indian economy from 2010 to 2019. In addition, we further explore the association between financial distress and dividend policy under the influence of shareholder activism (SHA). Using the static panel data regression technique, it is revealed that financial distress is non-linearly associated with the dividend policy of banks in an inverted U-shape. In the initial phase of a distressing situation, banks tend to have a liberal dividend policy. However, after reaching the pressure point, the banks start to squeeze dividend distribution to the stakeholders. Furthermore, the significant impact of shareholder activism has been found in the association between financial distress and the dividend payout policy of banks. From the policy perspective, the study will provide the policymakers with a clear all-round perspective of distressing situations, as the current research involves exploring the impact of distress on the dividend policy that will help the experts in basically understanding the adverse effect of financial distress and the repercussions, respectively, on the earning of the shareholders. © 2023 by the authors.

Authors: Rastogi Shailesh, Singh Kuldeep, Kanoujiya Jagjeevan.

Journal: Asian Review of Accounting.

Publication date: 2023

Publisher: Emerald Publishing.

URL: Access Paper

Abstract:

Purpose: The study intends to determine the environment, social and governance (ESG)’s impact on the firm’s value. In addition, how ownership concentration (OC) and transparency and disclosures (TD) influence the impact of firm’s ESG on its valuation (firm value). Design/methodology/approach: The relevant panel data with a sample of 78 Indian firms for five years (2016–2020) are gathered. Both linear and nonlinear connections of firm’s ESG with its value are tested. In addition, TD and two components of OC (stakes of promoters and institutional investors) are empirically tested as moderators on the connectivity of the firm’s ESG with its value. Findings: The linear association of firm’s ESG with its value is found insignificant. ESG is found to have a positive and nonlinear (U-shaped) impact on the value of the firms. TD does not moderate the connectivity of firm’s ESG with its valuation (firm value). The higher stakes of promoters positively affect the association of firm’s ESG with the valuation. However, the high stakes of institutional investors retard the ESG’s influence on the firm value. Research limitations/implications: The study is on Indian firms for five years. A sample of more than one nation and a longer duration (10 years) could have helped better determine the associations among the variables. In turn, these limitations can be the present study’s future scope. In addition, the authors find a lack of standardisation of the ESG scales, which is a problem in measuring it. Using standardisation scales of ESG for the analysis can also be future scope on the topic. Practical implications: The investors would be wary of the level of ESG to influence the firms’ value positively. Managers also need to be careful to have sincere efforts for ESG to reap its rich dividends. Policymakers may take cognisance that despite having board seats (in a few cases), institutional investors negatively (instead of positively as expected) influences the ESG’s association with the firm’s value. They may bring some guidelines or legislative changes to fix responsibility on the part of the institutional investors. Originality/value: No study reports the linear and nonlinear association of ESG on the firm’s value to observe clearer connectivity between the two. Similarly, no study is observed to have promoters and institutional investors as moderators on the association of firm’s ESG with the valuation (firm value). Hence, the present study considerably augments the extant literature on the topic and its contribution. © 2023, Emerald Publishing Limited.

Authors: Kanoujiya Jagjeevan, Pal Soumyadip, Rastogi Shailesh.

Journal: ASIA PACIFIC JOURNAL OF TOURISM RESEARCH

Publication date: 23 April 2023

Publisher: ROUTLEDGE JOURNALS.

URL: Access Paper

Abstract:

Cryptocurrencies and tourism have gained traction worldwide in the last few years. However, no research has been conducted to understand the relationship between the two. This paper examines the impact of the volatility spillover effects (VSE) of cryptocurrencies on the tourism sector in India. Using monthly time-series data (from August 2015 to January 2021) of the selected cryptocurrencies and foreign tourist arrivals (FTA) and foreign exchange earnings (FEE) from foreign tourism, we assess the volatility (short and long-term) impacts of cryptocurrencies on tourism (through changes in the monthly number of FTAs in India and FEEs of India through foreign tourism). The study applies Multivariate GARCH models (BEKK-GARCH and mGJR-GARCH). The findings suggest that there is an existence of volatility connections between cryptocurrencies and foreign tourism in India. These findings have noticeable implications for policymakers to understand the importance of cryptocurrency and blockchain for tourism sector policies in India.

Authors: Bhimavarapu Venkata Mrudula, Rastogi Shailesh, Kanoujiya Jagjeevan, Rawal, Aashi.

Journal: FUTURE BUSINESS JOURNAL.

Publication date: 22 Aug 2023

Publisher: SPRINGER.

URL: Access Paper

Abstract:

Distressed companies create panic among the investors, and the overall effect comes on the economy and leads to a degraded image and value of the companies. Transparency and disclosure involve disclosing the operational as well as the financial performance and corporate governance practices employed by the firms. A corporation or person is said to be in a financial distress (FD) if they are unable to keep their pledge to make payments on time. The current study seeks to shed light on the effects of Financial Distress (FD) and Transparency and Disclosure (T & D) on the value of non-financial firms operating in India. The study makes use of panel data analysis (PDA). The authors of the study used secondary data of non-financial companies included in the S & P BSE 100 index for five fiscal years, from 2015-2016 to 2019-2020. Altman Zscore for FD measure and Tobin’s Q, MCAP, and MTB for the firm’s valuation is considered. Our study established that Financial Distress (FD) negatively impacts a firm’s valuation because a positive association between Zscore (financial soundness) and a firm’s value is found. However, Transparency and Disclosure (T & D) have no significant impact on the firm’s valuation. We also find evidence that financial distress significantly impacts the value of firms under the influence of T & D. With the help of information about financial distress provided in our study, companies can analyze and take required steps to minimize the probability of being in a state of insolvency or being bankrupt. Investors can also gain knowledge of the business factors and their effect on a company’s valuation so that they can cautiously choose and include healthy companies in their targeted list of companies to invest in. No such study has been conducted till now in any of the developing countries that include finding the impact that (FD) as well as (T & D) have on the value of the firms in the non-financial sector.

Authors: Rastogi Shailesh, Kanoujiya Jagjeevan.

Journal: JOURNAL OF ECONOMIC AND ADMINISTRATIVE SCIENCES.

Publication date: 01 Aug 2023

Publisher: EMERALD GROUP.

URL: Access Paper

Abstract:

PurposeThe nexus of commodity prices with inflation is one of the main concerns for a nation’s economy like India. The literature does not have enough volatility-based study, especially using the multivariate GRACH family of models to find a link between these two. It is the main reason for the conduct of this study. This paper aims to estimate the volatility effects of commodity prices on inflation.Design/methodology/approachFor ten years (2011-2022), future prices of selected seven agriculture commodities and inflation indices (wholesale price index [WPI] and consumer price index [CPI]) are gathered every month. BEKK GARCH model (BGM) and DCC GARCH model (DGM) are employed to determine the volatility effect of commodity prices (CPs) on inflation.FindingsThe authors find that volatility’s short-term (shock) impact on agricultural CPs to inflation does not exist. However, the long-term volatility spillover effect (VSE) is significant from commodities to inflation.Practical implicationsThe study’s findings have a significant implication for the policymakers to take a long-term view on inflation management regarding commodity prices. The findings can facilitate policy on the choice of commodities and the flexibility of their trading on the commodities derivatives market.Originality/valueThe findings of the study are unique. The authors do not observe any study on the volatility effect of agri-commodities (agricultural commodities) prices on inflation in India. This paper applies advanced techniques to provide novel and reliable evidence. Hence, this research is believed to contribute significantly to the knowledge body through its novel evidence and advanced approach.

Authors: Pal Soumyadip, Kanoujiya Jagjeevan, Rastogi Shailesh, Agarwal Bhakti. 

Journal: INTERNATIONAL JOURNAL OF CONTEMPORARY ECONOMICS AND ADMINISTRATIVE SCIENCES.

Publication date: 01 June 2023

Publisher: INT JOURNAL CONTEMPORARY ECONOMICS & ADMINISTRATIVE SCIENCES.

URL: Access Paper

Abstract:

Covid-19 (C-19) has resulted in economic and financial meltdowns across the world. The countermeasures to tackle the virus created economic loss for people from every stratum. Macroeconomic indices like unemployment, inflation, and GDP growth rates were severely hit. This study estimates the C-19’s volatility impact on four macroeconomic variables (gold prices, interest rate, crude oil prices, and exchange rate in the Indian economy. The paper uses daily time series data of the macroeconomic variables and cases of C-19 in India for the period from 5th January 2020 to 4th April 2022. The volatility impact of COVID-19 is measured using Bi-Variate GARCH models. The GARCH models (BEKK-GARCH [BG] and DCC-GARCH [DG]) provide robust results. The result finds the existence of both short and long-term C-19’s volatility impact on all variables, although in different degrees. This paper is original since it considers the impact of these four variables altogether and the study contributes to the literature by capturing the volatility spillover effects of these four variables using BEKK-GARCH and DCC-GARCH. This paper significantly delivers key implications to policymakers to critically treat C-19 for economic stability while making policies.