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Indian Journal of Finance and Economics

Indian Journal of Finance and Economics

Frequency :Bi-Annual

ISSN :2582-2217

Peer Reviewed Journal

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Table of Content :-Indian Journal of Finance and Economics, Vol:4, Issue:1, Year:2023

LEVERAGE AND INVESTMENT OF THE INDIAN CORPORATE SECTOR - IS INVESTMENT ON A RECOVERY PATH?

BY :   Deba Prasad Rath and Sujeesh Kumar
Indian Journal of Finance and Economics, Year: 2023,  Vol.4 (1),  PP.1-38
Received: 16 January 2023  | Revised: 11 February 2023  | Accepted : 20 February 2023  | Publication: 29 June 2023 
Doi No.: https://DOI:10.47509/IJFE.2023.v04i01.01 

In the context of ongoing subdued investment, globally as well as in India, this paper revisits investment dynamics in India from the standpoint of the ‘augmented accelerator’ hypothesis. On an analysis of Indian corporate data for the period 1980-81 to 2018-19, we found that financial variables are assuming a greater role in determining the investment dynamics of the Indian corporate sector together with business expectations of the corporates and economic policy uncertainties. The paper attempts to provide a model-driven estimate of a threshold for Indian corporate leverage — estimated at around 60 per cent for debt-to-equity ratio and 28 per cent for debt-to-asset ratio, beyond which corporate leverage drags growth. An upcycle of investment is expected as the debt may build up for the corporates in the near future, which in a scenario of high capex from the government sector, would crowd in private investment and ensure durable growth recovery in the economy.

JEL Classification: E220, E710, G310, G380, Y10
???????Keywords: Investment, GDP, accelerator, business investment, policy uncertainty, business expectations


Deba Prasad Rath & Sujeesh Kumar (2023). Leverage and Investment of the Indian Corporate Sector – Is Investment on a Recovery Path?. Indian Journal of Finance and Economics. 4(1), 1-38. https://DOI:10.47509/IJFE.2023.v04i01.01

IDENTIFYING THE FACTORS OF SUPPLY CHAIN MANAGEMENT STRATEGY – A STUDY

BY :   Rupak Karmakar
Indian Journal of Finance and Economics, Year: 2023,  Vol.4 (1),  PP.39-44
Received: 19 January 2023  | Revised: 21 February 2023  | Accepted : 10 March 2023  | Publication: 29 June 2023 
Doi No.: https://DOI:10.47509/IJFE.2023.v04i01.02 

Communication and technology aids in product tracking and distribution result in higher customer contentment with the supply chain process when employees are connected through many succession of the supply chain workers likely feel more fulfilled and activities often run more smoothly. This article makes an attempt to explain the impact of technology, communication and self evaluation on supply chain management and our study tries to prove that communication, technology and self evaluation are the important component of successful supply chain management.

Keywords: Communication, Technology, Self-evaluation, Six Sigma.

Rupak Karmakar (2023). Identifying the Factors of Supply Chain Management Strategy—A Study. Indian Journal of Finance and Economics. 4(1), 39-44. https://DOI:10.47509/IJFE.2023.v04i01.02

TAXATION SYSTEM IN INDIA: A JOURNEY THROUGH THE ROOTS

BY :   Barkha Rani and Deepika Meena
Indian Journal of Finance and Economics, Year: 2023,  Vol.4 (1),  PP.45-51
Received: 29 January 2023  | Revised: 04 March 2023  | Accepted : 14 March 2023  | Publication: 29 June 2023 
Doi No.: https://DOI:10.47509/IJFE.2023.v04i01.03 

Taxation is a mark of civilization. Tax evolved and developed independently in the great ancient empires. The concepts that evolved were transported to other empires and cultures where tax ideas took root. This pattern continues through to today as nations are influenced by developments in tax from other countries. Taxes are traced from their roots on through mutations. This analysis traces the evolution of ideas about one of the most important policies facing any country: taxation. The article will demonstrate that elite ideas about tax policy have changed dramatically over the past century and that these ideas have had enormous consequences for the development of the modern income tax Act. You know the saying—nothing is certain except death and taxes. (Franklin, Benjamin Letter to Jean-Baptiste Le Roy, 13 November 1789). While that may be true, taxes tend to be more complicated and very inconsistent. And they didn’t always exist as they do today. will look at history from the manusmriti to India’s today through the prism of tax.We begin this entry by providing an overview of historical changes in taxation patterns, and then move on to discussing recent trends and patterns in taxation around India. The idea is not to enter into an exhaustive discussion of this theme but rather merely to give a chronology of the principal work in the light of the views of leading authorities. This paper is an attempt to give a brief look on the growth and evolution of taxes in India from the ancient times.

Barkha Rani & Deepika Meena (2023). Taxation System in India: A Journey through the Roots. Indian Journal of Finance and Economics. 4(1), 45-51. https://DOI:10.47509/IJFE.2023.v04i01.03

POPULATION AND ECONOMIC GROWTH NEXUS: EMPIRICAL EVIDENCE FROM NIGERIA

BY :   Sylvester Onyeoma & Blessing Ose Oligbi
Indian Journal of Finance and Economics, Year: 2023,  Vol.4 (1),  PP.53-72
Received: 18 February 2023  | Revised: 07 March 2023  | Accepted : 19 March 2023  | Publication: 29 June 2023 
Doi No.: https://DOI:10.47509/IJFE.2023.v04i01.04 

The increase in the level of population coupled with current economic challenges in Nigeria without any plausible control is of great concern. Thus, with the mechanics of Autoregressive Distributed Lag Bounds (ARDL) approach this study examined the consequence of soaring population in the country on economic growth using time series data from 1983 to 2021 sourced from Central Bank of Nigeria, World Bank Data Bank and NBS. The preliminary result showed a mean population growth rate of 2.57% and a 4.15 average RGDP growth rate during the period of the study. The empirical results also show a unidirectional causality from population growth to GDP growth. The study revealed that the growth of population with its components exerts a positive impact on the short run and a long run negative impact on economic growth in Nigeria. It was recommended that there should be proactive interventions by the government and NGO’s by way of educating the public on the importance and benefits of having a reduced number of children. The government should embark on massive employment generation schemes that will absorb the unemployed through strategic stimulus investments in targeted programmes and projects to checkmate poverty rate, unemployment syndrome and accelerate economic growth for sustainable development.

Keywords: Population, Poverty, Unemployment, ARDL, Modelling

JEL Classification: C22, C51, E27, H63, H81

Sylvester Onyeoma & Blessing Ose Oligbi (2023). Population and Economic Growth Nexus: Empirical Evidence from Nigeria. Indian Journal of Finance and Economics. 4(1), 53-72. https://DOI:10.47509/IJFE.2023.v04i01.04

EXCHANGE-TRADED FUNDS, HETEROGENEOUS AGENTS, AND FINANCIAL STABILITY

BY :   Michael H. Baumann, Michaela Baumann and Bernhard Herz
Indian Journal of Finance and Economics, Year: 2023,  Vol.4 (1),  PP.73-120
Received: 05 March 2023  | Revised: 17 March 2023  | Accepted : 29 March 2023  | Publication: 29 June 2023 
Doi No.: https://DOI:10.47509/IJFE.2023.v04i01.05 

Exchange Traded Funds (ETFs), esp. index funds, have seen an enormous growth over the recent decades. We investigate the financial market effects of actively traded ETFs in a heterogeneous agent model which is calibrated to historical data. We consider four types of traders, namely fundamentalists and trend followers who either trade ETFs or the underlying individual assets. We find that the complex interactions of investment strategies and the availability of ETFs generate interesting nonlinearities for typical market metrics such as susceptibility for bubbles, asset price volatility, asset price correlations, and mispricing. Thus, the growing popularity of ETFs as an investment vehicle gives rise to considerable regulatory challenges.

Keywords: Exchange-traded Funds, Financial Stability, Agent-based Model.

JEL codes: C63, D01, G10, G11, G40

Michael H. Baumann, Michaela Baumann & Bernhard Herz (2023). Exchange-Traded Funds, Heterogeneous Agents, and Financial Stability. Indian Journal of Finance and Economics. 4(1), 73-120. https://DOI:10.47509/IJFE.2023.v04i01.05

INVESTIGATING PUBLIC PERCEPTION AND PARTICIPATION IN WATERSHED MANAGEMENT: A CASE STUDY OF MAHARASHTRA

BY :   S. N. Tripathy and Prasanna V.Narayanasamy
Indian Journal of Finance and Economics, Year: 2023,  Vol.4 (1),  PP.121-147
Received: 11 March 2023  | Revised: 27 March 2023  | Accepted : 06 April 2023  | Publication: 29 June 2023 
Doi No.: https://DOI:10.47509/IJFE.2023.v04i01.05 

This paper discusses the challenges faced by poor and marginal farmers in India who rely on degraded land in rain-fed areas due to soil erosion and water resource depletion. The focus is on sustainable land and water resource management to boost productivity, conserve resources for future generations, and provide equitable livelihoods for the poor. The watershed is presented as a holistic approach to land and water management that has shown positive results in terms of enhanced soil and water conservation and agricultural productivity. However, it is challenging to prioritize people’s developmental needs and objectives over land or water and their potential for development. The paper employs mixed methods, including primary and secondary sources of data, FGD, and participation and perception indexes. The findings reveal a lack of ownership perception values among farmers, which hinders their active participation in watershed management. Therefore, it is crucial to cultivate an augmented sense of ownership among farmers to ensure their active participation in the program, ultimately leading to better management of resources in the area.

Keywords: Rain-fed agriculture, watershed development, people’s participation, Perception Index

JEL Codes: Q15, Q25

S.N. Tripathi & Prasanna V. Narayanasamy (2023). Investigating Public Perception and Participation in Watershed Management: A Case Study of Maharashtra. Indian Journal of Finance and Economics. 4(1), 121-147. https://DOI:10.47509/IJFE.2023.v04i01.06

THE IMPACT OF CLIMATE CHANGE ON CROP PRODUCTION IN NIGERIAN ECONOMY

BY :   Ozor Patience Lilian
Indian Journal of Finance and Economics, Year: 2023,  Vol.4 (1),  PP.149-163
Received: 21 March 2023  | Revised: 09 April 2023  | Accepted : 16 April 2023  | Publication: 29 June 2023 
Doi No.: https://DOI:10.47509/IJFE.2023.v04i01.07 

This paper examined the challenges posed by climate change in relation to crop production as it affects economic growth in Nigeria. Climate change presents a window of opportunity to open up policy spaces for dealing with uncertainty and complexity of agri food systems. The work used time series secondary data covering 1984 – 2021, obtained from the various editions of the Central Bank of Nigeria’s (CBN) Statistical Bulletin and World Development Indicators (WDI) as its main source of data. For our analysis, the autoregressive distributed lags (ARDL) technique was adopted in the estimation of the relationship between climate change and crop production. At the end of the study, it was discovered that climate change has an unequivocal deleterious effect on crop production, both in the short run and in the long run. There is also clear evidence from the study that crop production has significant and positive intertemporal effect on economic growth in Nigeria. Arising from these findings, the paper offers the following recommendations: adaptation strategies for climate change should be considered both in short-term and long-term to cope with the expected unpredictability of rainfall both in terms of periodicity and amount; the Nigerian Meteorological Services (NIMET)should adopt early warning system to guide farmers and other stakeholders on the appropriate time to plant in cases of drought or flooding; stakeholders and policymakers should focus on risk management in the most vulnerable areas and among the most vulnerable groups in order to reduce loss.

Keywords: Autoregressive Distributed Lags, Climate Change, Crop Production, Economic Growth

Ozor Patience Lilian (2023). The Impact of Climate Change on Crop Production in Nigerian Economy. Indian Journal of Finance and Economics. 4(1), 149-163. https://DOI:10.47509/IJFE.2023.v04i01.07

IS PUBLIC DEBT AFFECT THE INDIAN ECONOMY

BY :   K. Murugan and K. Kalaimani
Indian Journal of Finance and Economics, Year: 2023,  Vol.4 (1),  PP.165-191
Received: 23 March 2023  | Revised: 13 April 2023  | Accepted : 19 April 2023  | Publication: 29 June 2023 
Doi No.: https://DOI:10.47509/IJFE.2023.v04i01.08 

Public debt is one of the most important crises in recent decades not only in India but also World. The role of public debt in the government’s financial position in India and different state governments are a challenging factor. It has a crucial role in the process of economic development. There is a functional relationship between public debt and economic development in positive and negative aspects existence of empirical results indicated. The level of public debt is issued at international, national, and state levels in different countries after the financial crisis in 2008. Whenever increasing public debt is retard investment and economic growth. Repayment of interest rates to public debt is the biggest problem in India. The Union Government has spent one-third of its total revenue on interest payments meant to external and internal sources may be increased. It is the biggest problem for the Government of India and various state governments.

K. Murugan & K. Kalaimani (2023). Is Public Debt affect the Indian Economy. Indian Journal of Finance and Economics. 4(1), 165-191. https://DOI:10.47509/IJFE.2023.v04i01.08

IMPACT OF EXCHANGE RATE AND CRUDE OIL PRICE ON INDIAN STOCK MARKET

BY :   Gautam Das
Indian Journal of Finance and Economics, Year: 2023,  Vol.4 (1),  PP.193-203
Received: 29 March 2023  | Revised: 12 April 2023  | Accepted : 30 April 2023  | Publication: 29 June 2023 
Doi No.: https://DOI:10.47509/IJFE.2023.v04i01.09 

Recently the Indian stock market has achieved an esteemed milestone in terms of its market capitalisation; it has touched $3.3 trillion M-Cap and occupies world fifth largest market. The present study endeavours to study the impact of exchange rate and crude oil price on Indian stock market. During this ten year span the world has witnessed major events and catastrophe of gigantic proportion which halted the world economy. The de-dollarization initiatives, the war and pandemic have shaken the power index in the world polity. The study aspires to investigate cointegration relationships among Crude oil, Exchange rate in impacting the stock market. The study is based on the secondary data retrieved from various authentic sources such as CMIE, Prowese database, Yahoo finance etc. for the study period from1st April 2013 to 30th September, 2022. In the course of analysis, we have employed various statistical and econometric tools such as ADF unit root test, Johansen cointegration analysis and Granger causality test. Johansen cointegration test result indicates that there exists no long-term relationship among the selected variables. Granger causality test result also failed to explain any causality among the variables.

Keywords: Crude Oil Price; Exchange Rates; Stock Price Indices; Johansen Cointegration Test, Granger Causality Test

Gautam Das (2023). Impact of Exchange Rate and Crude Oil Price on Indian Stock Market. Indian Journal of Finance and Economics. 4(1), 193-203. https://DOI:10.47509/IJFE.2023.v04i01.09

AN ENQUIRY INTO STABILITY AND EFFICIENCY IN INDIAN STOCK MARKET DURING POST REFORMS PERIOD

BY :   Triseeta Hazra and Arup Chattttopadhyay
Indian Journal of Finance and Economics, Year: 2023,  Vol.4 (1),  PP.205-229
Received: 30 April 2023  | Revised: 19 May 2023  | Accepted : 04 June 2023  | Publication: 29 June 2023 
Doi No.: https://DOI:10.47509/IJFE.2023.v04i01.10 

Stock market stability and efficiency play an important role to the investors as well as regulatory authorities. This study investigates the impact of recent financial crisis on the Indian stock market in the context of its efficiency and stability during post reforms era. In other words, this paper examines the weak form of efficiency of the Indian stock markets and also identifies the stability of stock market by measuring volatility centering the period of recently held global financial crises using daily returns of 2 major indices of BSE (Sensex), NSE (Nifty50) and 5 sectoral indices of NSE. We have applied break-point test, unit root test, auto-correlation test, runs test, volatility clustering test using GARCH (1,1) and EGARCH (1,1) models during the period of Jan 1996 to September 2022. The findings of the paper evidence the weak form of pricing inefficiency of the Indian stock market and also high persistence of volatility clustering in the stock returns indicating that the stock market is neither efficient nor stable over time (volatility is changing). Indian stock market becomes relatively stable after 2007-08 financial crisis. The outcomes of the paper help generate an intense hint to the investors and policy makers while making their decisions.

Keywords: Efficient Market Hypothesis (EMH), Random Walk Model, structural break, stability of Indian stock market, global financial crisis, EGARCH

JEL classification: G14, G01, G15

Triseeta Hazra & Arup Chattopadhyay (2023). An Enquiry into Stability and Efficiency in Indian Stock Market during Post Reforms Period. Indian Journal of Finance and Economics. 4(1), 205-229. https://DOI:10.47509/IJFE.2023.v04i01.10

STATUS OF INCOME AND SAVINGS OF SHGs IN ODISHA – A CASE STUDY OF BHADRAK DISTRICT

BY :   Mamata Panda and L. N. Das
Indian Journal of Finance and Economics, Year: 2023,  Vol.4 (1),  PP.231-241
Received: 26 March 2023  | Revised: 19 April 2023  | Accepted : 10 May 2023  | Publication: 29 June 2023 
Doi No.: https://DOI:10.47509/IJFE.2023.v04i01.11 

Mamata Panda & L. N. Das (2023). Status of Income and Savings of SHGs in Odisha–A Case Study of Bhadrak District. Indian Journal of Finance and Economics. 4(1), 205-229. https://DOI:10.47509/IJFE.2023.v04i01.11

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