Volume-2 Issue-2, November 2022 – Indian Journal of Economics and Finance (IJEF)

J171710100624

IJEF Journal — Tue, 16 Jul 2024 05:13:17 +0000

The Indian Journal of Economics and Finance (IJEF) has ISSN 2582-9378 (online), an open-access, peer-reviewed, periodical half-yearly international journal, which is published by Lattice Science Publication (LSP) in May and November. The journal aims to publish high-quality peer–reviewed original articles in the area of Economics and Finance that covers International and Financial Accounting, Management and Cost Accounting, Tax, Auditing, Accounting Information Systems, Accounting Education, Environmental and Social Accounting, Accounting for Non-Profit Organisations, Public Sector Accounting, Corporate Governance: Accounting/Finance, Ethical Issues in Accounting and Financial Reporting, Corporate Finance, Investments, Derivatives, Banking and Capital Markets in Emerging Economies. #International and Financial Accounting #Management and Cost Accounting #Tax #Auditing #Accounting Information Systems #Accounting Education #Environmental and Social Accounting #Accounting for Non-Profit Organisations #Public Sector Accounting #Corporate Governance: Accounting/Finance #Ethical Issues in Accounting and Financial Reporting #Corporate Finance #Investments, Derivatives #Banking #Capital Markets in Emerging Economies #PhD ademic #Scopus #SCI #LatticeScience #Springer, #ScienceDirect #IEEE #Mendeley #Research #Scholarship #UGC #SSRN #LatticeScience #ESCI #Science #Journal #Conference #SSRN #PubLons #PhD #Academic #Scopus #SCI #LatticeScience #Springer, #ScienceDirect #IEEE #Mendeley #Research #Scholarship #UGC #SSRN #LatticeScience #ESCI #Science #Journal #Conference #SSRN #PubLons

Private Equity in India Fintech: A Lifecycle Analysis
Idris Ali¹, Dhiraj Sharma²

¹Idris Ali Yimer, Department of Commerce, Punjabi University, Patiala (Punjab), India.

²Dr. Dhiraj Sharma, Department of SMS, Punjabi University, Patiala (Punjab), India.

Open Access | Ethics and Policies | Cite | Mendeley | Indexing and Abstracting
© The Authors. Published by Lattice Science Publication (LSP). This is an open-access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)

Abstract: Over the past two and a half decades, India’s venture capital and private equity industry have undergone significant growth, driven by the liberalization of the Indian economy and the emergence of a dynamic start-up ecosystem. While the Fintech sector has been preferred for VCPE investments, research on private equity activity in this industry has been limited. This study aims to address this research gap by providing comprehensive insights into the lifecycle of private equity investments in the Fintech industry in India. The study examines private equity investment and exit activity in the Indian Fintech industry between 1998 and Q1 2023. Our research findings indicate that the Fintech industry in India has attracted considerable investments at notably higher entry valuation multiples. Moreover, a few sectors within the industry have garnered higher investments and valuation multiples. Private equity investors have generated significant returns from exits in the fintech industry, with M&As being the preferred exit route during the study period. However, our analysis indicates that exit valuation multiples were lower than entry multiples. This research provides valuable insights for investors and entrepreneurs seeking to understand the Indian Fintech industry and its potential for private equity investments. Three item lists of highlights ▪ Private equity investment in Fintech is significant, with the majority of investments occurring in the seed and early stages. ▪ The software and apps, personal finance, and insurance sectors generated the highest cash flows for exited deals in Fintech. ▪ Mergers and acquisitions were the most preferred exit routes for private equity investors in the Fintech space.

Keywords: Private Equity (G24), Fintech (G23)
Scope of the Article: Economics

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A2538053123

IJEF Journal — Mon, 15 Jul 2024 11:19:10 +0000

A Study on the Relation Between the Indian Stock Market and Indian Economy
B. Ashok¹, Abin P Sajan², Andrew Chacko³

¹Prof B Ashok, Xavier Institute of Management and Entrepreneurship, Bangalore (Karnataka), India.

²Abin P Sajan, Student, Xavier Institute of Management and Entrepreneurship, Bangalore (Karnataka), India.

³Andrew Chacko, Xavier Institute of Management and Entrepreneurship, Bangalore (Karnataka), India.

Abstract: The relationship between stock market growth and economic activity has long been an topical discussion amongst economist, market players and policy makers. A natural question that arises is wether macro Economics influences stock behaviour or if stock market has its own dynamics, Its logical to believe that healthy macro economic indicators will improve both demand and industry output and as well its profits and growth which in turn would drive up the stock prices and vice verse. In the context of India, this study makes an effort to determine the correlation between stock market development and economic growth. The analysis reveals a clearly defined long-run relationship between the stock market indicators and economic growth in India using cointegration and causality tests for the period of April 2010 to March 2020. The empirical findings demonstrate a two-way causal relationship between market indices and economic growth with respect to Macro-Economic indicators.

Keywords: GDP Scope of the Article: Economics

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A2502051121

IJEF Journal — Mon, 15 Jul 2024 11:10:46 +0000

The Effect of Organizational DNA on the Use of Management Accounting Practices: Using the Structural Equation Model
Saeed Pakdelan¹, Alireza Azarberahman², Hamid Saremi³, Mina Ghaderi⁴

¹Saeed Pakdelan, Assistant Professor & Head, Department of Accounting, Shandiz Institute of Higher Education, Mashhad, Iran.

²Alireza Azarberahman, Department of Accounting, Shandiz Institute of Higher Education, Mashhad, Iran

³Dr. Hamid Saremi, Department of Industrial Engineering, Asrar Higher Education Institute, Mashad, Iran.

⁴Mina Ghaderi, Department of Accounting, Shandiz Institute of Higher Education, Mashhad, Iran.

Abstract: The issue of cost management and the use of efficient and effective ways to improve financial and budgetary resources due to lack of resources, price competition, quality supply of goods and services and entry into global markets. Therefore, this field is one of the most important and challenging issues for economic enterprises, especially considering the recent economic and financial developments and crises. The statistical population of the study includes all small and medium-sized enterprises of Mashhad city (603 active enterprises) in 2019, which using the Cochran’s formula, 95 CEOs, finance managers and or accountants head were randomly selected. A questionnaire was used to measure the variables and in order to test the hypotheses, the structural model method with SPSS and PLS software were used. The results showed that organizational DNA has a significant effect on the use of management accounting techniques. It was also found that all organizational DNA determinants have a significant positive effect on the use of management accounting techniques.

Keywords: Management Accounting Techniques, Organizational DNA, Human Resources, Information Structure, Organizational Culture, Management Systems
Scope of the Article: Accounting

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B2531112222

IJEF Journal — Sat, 08 Oct 2022 08:59:38 +0000

Impact of Investor Sentiment on Portfolio Return – Do Economic and Market Conditions Matter?
Amit Rohilla

Amit Rohilla, Assistant Professor, Gargi College (University of Delhi), New Delhi, India.

Abstract: In a first of its kind, this paper tries to explore the relationship between investors sentiment and BSE Sensex return over the period January 2010 to December 2021 and under different market and economic conditions. Design/Methodology/Approach: The paper uses 32 market and macroeconomic variables as proxy to the investor sentiment. Principal component analysis has been used and the first 11 principal components with eigenvalue more than 1, have been selected to create investor sentiment sub-indices. Weighted/generalized least squares (GLS) method has been used to achieve the objectives of the study. Findings: We find that the impact of sentiment was significantly positive on portfolio return over the period of study. Furter, the slope of fivesentiment sub-indices increased in the boom period and the slope of two sub-indices increased significantly in the bull period. Research Implications: Findings of the study are helpful for retail investors, policy makers and other decision makers in the Indian stock market. Results are helpful for retail investors as guidelines for decision making and; also, they learn about the association between sentiment and portfolio return under different economic and market conditions. Originality/Value: The study contributes to the existing literature by exploring the relationship of sentiment and portfolio return in the Indian stock marketover different economic and market conditions.

Keywords: Bear, Boom, Bull, Dummy Variable, GLS, Investor Sentiment, Portfolio Return; Principal Component Analysis, Recession.
Scope of the Article: Investments, Derivatives

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B2530112222

IJEF Journal — Sat, 08 Oct 2022 08:53:06 +0000

Comparison of Rainfall and GDP: A Feasibility Study on Introducing Rainfall Derivatives in the Indian Weather Risk Market
Dileep N

Dileep N, Research Scholar, Department of Studies in Commerce, University of Mysore, Mysore (Karnataka), India.

Abstract: Precipitation is an economic indicator for the Indian economy. Because more than half of the Indian population is engaged in agriculture, and they depend on rainfall for their farming activities, along with farming, other sectors like manufacturing, transportation, banking, construction, and others are directly or indirectly affected by rainfall. The proposed study attempts to establish a relationship between the changes in rainfall and the GDP growth rate. The study demonstrates the opportunity and feasibility of introducing rainfall index-based derivatives in the Indian weather risk market. The study considered the average annual rainfall data of all 36 meteorological subdivisions and the GDP annual growth rate for the period from 1961 to 2020. The study performed simple correlation and regression with the SPSS software. The results of the correlation matrix show that there is a positive relationship between the selected two variables. According to the regression analysis, rainfall has a significant positive effect on India’s GDP growth rate. This result shows that there is a need for rainfall index based derivatives in the Indian weather risk market to absorb the rainfall risk. The purpose of this paper is to suggest a new kind of versatile tool to overcome the rainfall risk. Rainfall risk is covered by traditional insurance, index insurance, and reinsurance. However, all of them failed to effectively manage the rainfall risk. So, right now, rainfall derivatives are needed to make a full-fledged rainfall risk market.

Keywords: Rainfall Derivatives, Rainfall Index Based Futures, full-fledged rainfall risk market, GDP growth rate and Chicago Mercantile Exchange (CME).
Scope of the Article: Investments, Derivatives

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B2523112222

IJEF Journal — Sat, 03 Sep 2022 12:24:45 +0000

Remittances and Economic Growth: A Causality Analysis for Nepal
Udaya Bahadur Rana Magar¹, Naba Raj Upadhyaya²

¹Udaya Bahadur Ranamagar, Director, Department of Commerce and Supply under the Ministry of Commerce and Supply, Government of Nepal.

²Naba Raj Upadhyaya, International Relations Student at the Tribhuvan University of Nepal.

Abstract: This paper deals with remittance and the economic growth of Nepal. Remittance is a significant source of the Nepalese economy. It is one of the critical sectors, and it has directly related to the immigration of people. This study aims to identify the relationship between Nepal’s migration, remittance, and the economic growth. This paper is based on secondary sources of information. The Granger causality test examines the causality between remittance and economic growth of Nepal. The result of the Granger causality test shows that both the Nepalese people’s entry and exit from the country are significant for the economic growth of Nepal. The remittance received from migrated people is significant for the economic growth of Nepal. The contribution of remittance to GDP has increased, and the poverty level has decreased over the years. The education sector has improved, and the development level is gradually increasing. Therefore, there is an urgent need for policies with a high priority on national interests for managing international migration (both emigration and immigration) and remittance. This implies that the policy maker should implement an appropriate policy to invest in capital formation. It may be conducive to the economic growth of Nepal.

Keywords: Migration, Remittance, & GDP of Nepal
Scope of the Article: Corporate Finance

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D2521111422

IJEF Journal — Sat, 20 Aug 2022 08:45:13 +0000

Impact of Non-Performing Loans on Saudi Bank Profitability
Mahmoud M. Al Zyood

Dr. Mahmoud M. Al Zyood, Department of Finance, College of Business, King Abdulaziz University, Jeddah, Saudi Arabia.

Abstract: Non-performing loans (NPLs) have become increasingly worrying to the Saudi banking sector. Sanctioned loans have a repayment schedule, including principal and interest amounts. Excessive defaults on loans leads to a liquidity crisis throughout the banking sector, and can even cause bank failure. As a result, banks have to cover non-performing loans and maintain reserves under the instructions of the Saudi Arabia Central Bank, which severely affects profitability. This study analyzes the comparative position of non-performing loans in the Saudi banking sector over the period 2009-2017 to determine causes and impacts on bank profitability, using data from annual reports. The study variables are profitability (ROA and ROE) as the dependent variable, and non-performing loans ratio (NPLR) as the independent variable. The data was analyzed by correlation, regression, and analysis of variance (ANOVA) using SPSS. The empirical results represent that NBLR has a negative influence on the dependent variable.

Keywords: NBLR, non-performing loans (NPLs), ROA, ROE.
Scope of the Article: Banking

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D2519111422

IJEF Journal — Fri, 22 Jul 2022 10:37:44 +0000

Entry of Indian Millennials into Stock Market Post Pandemic: A Boon or Bane
Rajat Rana

Rajat Rana, UG Student, Amity Law School, Amity University, Noida (U.P), India.

Abstract: Since the pandemic pushed the economy to its knees, India’s youth population has been fueling a boom in the country’s investing environment, with millions of people switching to stock trading. Millennials in the country have been slowly buying equities, mirroring trends found in the United States and other major economies, as salary cuts, job losses, economic troubles, and increasing time at home have prompted the search for new sources of income. CDSL (Central Depositories Services I Ltd), one of India’s main securities depositories, reported a near 20% increase in new accounts in the six months after India imposed its first wave of coronavirus lockdowns, totaling more than 2.5 crores.

Keywords: Stock market, Millennial Investors, Retail Traders.
Scope of the Article: Capital Markets in Emerging Economies

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C2512051322

IJEF Journal — Sat, 02 Jul 2022 10:39:47 +0000

Covid-19 Paralyzing the Backbone of Indian Economy
Rajat Rana

Rajat Rana, UG Student, Amity Law School, Amity University, Noida (U.P), India.

Abstract: The Indian government’s three-decade-old economic reforms altered the terrain of various sectors of the Indian economy. The banking sector was no exception. As a result of reforms, this industry has seen significant changes. The banking sector plays vital role because it provides one of the most critical services for a developing economy. India is one of the largest economy in the world and its US$ 2.52 trillion1 banking industry is the backbone of the Indian economy. The sector recovered well from global financial crisis and demonstrated its resilience when the industrialized economies were affected. The banking sector in India is booming, thanks to the government’s efforts to increase financial inclusion. Today service sector contributes half to Indian GDP and banking makes up chunk of it. India must continue to exploit the growth of banking sector which will help in achieving the distant goal of becoming a developed economy.

Keywords: Banking Sector, Banks, Covid-19.
Scope of the Article: Banking

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D2516111422

IJEF Journal — Sat, 21 May 2022 07:34:32 +0000

Did Lockdown Affect Stock Returns of Airline Sector in India ?
Samrat Banerjee¹, Vidisha Agarwalla²

¹Prof. Samrat Banerjee, Assistant Professor, Department of Commerce, St. Xavier’s University, Kolkata (West Bengal), India.

²Vidisha Agarwalla, Department of Commerce, St. Xavier’s University, Kolkata (West Bengal), India.

Abstract: In this study, we will analyze the impact of lockdown on stock returns of airline industry in India. For this purpose, market model of event study methodology is used. The event window of 21 days have been taken to show the impact on stock returns due to announcement of lockdown. We will also understand how investors react at the time of fall in the stock market in terms of one industry and the impacts of lockdown in the economy of India. We will investigate into the impact of the first lockdown on returns, abnormal returns and cumulative abnormal returns for all three companies of the airline sector viz., GLOBALVECT.BO, SPICEJET.BO and INDIGO.BO. Data for this research was obtained from the official website of National Stock Exchange (NSE) . Conclusions were drawn based on this data and it was found that the lockdown had a more significant impact on abnormal returns of Indigo compared to that of Spice Jet and Global Vectra. Further, it can be inferred that the impact of lockdown on the average abnormal return and the cumulative average abnormal returns of the airline sector was highly significant, which displayed more volatility in stock prices.

Keywords: Lockdown, Stock Returns, Adverse Reaction, Artificial Intelligence, Airline Sector
Scope of the Article: Corporate Finance

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