ICTACT Journal on Management Studies

P. Arun Prakash ¹, A. M. Mohamed Sindhasha ²

Affiliations
1 School of Management Studies, Bannari Amman Institute of Technology, IN
2 Department of Business Administration, Jamal Mohamed College, IN

Abstract

This empirical study critically examines the linkage between net interest margin of 43 public and private sector banks and bank specific determinants for the period 2002-2003 to 2013-2014. The study aims to find the association between Net Interest Margin (NIM) and bank specific determinants with the help of statistical tools such as descriptive statistics, multiple correlation analysis and multiple regression analysis. The analytical results confirmed the statistically significant relationship between net interest margin of public and private sector banks and bank specific factors such as return on investment, operating profits to total assets, provisions and contingences to total assets and burden to total assets ratios.

Keywords

Net Interest Margin to Total Assets, Public and Private Sector Commercial Banks, Return on Investment, Multiple Regression Analysis.

Full Text

     

P. Arun Prakash ¹, S. Gokul Kumar ¹

Affiliations
1 School of Management Studies, Bannari Amman Institute of Technology, IN

Abstract

This empirical study analyses the linkage between foreign direct investment of BRICS countries and macroeconomic Indicators for the period 2002-2003 to 2013-2014. The study aims to find the relationship between FDI of BRICS countries and macroeconomic indicators with the help of econometrics tools such as Unit Root Test Analysis, Johansen Co-integration test, Granger Casualty Test and Panel Data Regression Models such as Fixed Effect and Random Effect model). The analytical results revealed the long term relationship between FDI of BRICS countries and macroeconomic indicators during the study period. It is found that all the macroeconomic variables are co-integrated with FDI and variables such as log of Gross Capital Formation and Log of Trade Openness granger caused FDI of BRICS countries in bi-directional mode. It is also observed from the results that explanatory variables such as size, inflation, log of Gross Capital Formation, Log of Labour Cost, and Log of Trade Openness are having statistically significant relationship with FDI of BRICS countries.

Keywords

BRICS, Macroeconomic Indicators, FDI, Econometrics.

Full Text

     

Malabika Deo ¹, P. Arun Prakash ²

Affiliations
1 Department of Commerce, School of Management, Pondicherry University, IN
2 School of Management Studies, Bannari Amman Institute of Technology, IN

Abstract

This study empirically examines the co integration of the Indian stock market with special reference to National Stock Exchange, with the major stock exchanges in the world. The study of the existence of interlink ages among international capital markets has considerable implications on determining the extent of portfolio diversification as well as macroeconomic policies of individual countries. The changing conditions in the international stock market have led global investors to think of other leading market which offers immense returns. Asian Markets have emerged as desired investors centre for the global players. However, their movement is also subject to the volatility prevailing in the international markets. The results of Johansen cointegration test confirmed the existence of long term relationship between NSE Nifty and other indices of major stock exchanges in the world.

Keywords

Stock Market Integration, Long Run Relationship, Global Stock Markets, Johansen Cointegration Test and Granger Causality Test.

Full Text

     

P. Arun Prakash ¹

Affiliations
1 Department of Commerce with Accounting and Finance, PSG College of Arts and Science, IN

Abstract

This study is a maiden attempt to determine the influence of macroeconomic indicators on foreign institutional investment inflows during the period 2009 to 2016 which is considered as post financial crisis period. For the purpose of the study, econometric tools like Normality Test, Hetroscedasticity Test, ARCH LM Test, Breusch-Godfrey Serial Correlation test, Unit Root Test Analysis, Granger Causality Test and Auto Regressive Distributed Lag Model (ARDL) have been extensively used. The results of ARDL model confirmed the strong influence of macroeconomic variables such as foreign institutional investment inflows with one lag and two lags. Nominal Effective Exchange Rate (NEER) with 3 lags, BSE_RETURN and Index of Industrial Production (IIP) on Foreign Institutional Investment Inflows (FIIs).

Keywords

Macroeconomic Indicators, FIIs, ARCH Model, Co-integration and Granger Causality.

Full Text

     

P. Arun Prakash ¹, A. M. Mohamed Sindhasha ²

Affiliations
1 Department of Commerce with Accounting and Finance, PSG College of Arts and Science, IN
2 Department of Commerce, Jamal Mohamed College, IN

Abstract

This empirical study critically investigates the relationship between return on Assets of 43 scheduled commercial banks in India and bank specific determinants for the period 2002-2003 to 2013-2014. The study aims to find the association between Return on Assets (ROA) and bank specific determinants with the help of statistical tools such as descriptive statistics, multiple correlation analysis and multiple regression analysis. The analytical results confirmed that the SBI and associates banks and new private sector banks operate in the same fashion whereas nationalised banks and old private banks are functioning in a similar way. These results imply the unique attributes of scheduled commercial banks.

Keywords

Return on Assets to Total Assets, Public and Private Sector Commercial Banks, Return on Investment and Multiple Regression Analysis.

Full Text

     

P. Arun Prakash ¹, R. Uma Maheshwari ¹

Affiliations
1 Department of Commerce - Accounting and Finance, PSG College of Arts and Science, IN

Abstract

The present study aims at finding out the interaction between Banks’s Assets Quality and Macroeconomic Variables of public and private sector commercial banks in India. Banks Assets Quality is measured through the level of Non-Performing Assets. It specifically analyses the causality and statistically significant association between NPA and macroeconomic factors for the period 2003-2014. The study has applied various econometric tools such as unit ischolar_main test, Granger Causality test, and Auto Regressive Hetroscedasticity Model. To analyse the NPA of commercial banks, the researchers have taken GNPA Ratio as proxy. The empirical results of ARCH model exhibited that macroeconomic variables such as inflation, credit growth, deposits growth, unemployment rate, weighted average lending rate and exchange rate are having statistically significant association with GNPA Ratios of commercial banks. Based on the analysis, it is inferred that exogenous variables such as GDP, inflation, credit growth and Exchange Rate are having unilateral relationship with GNPA whereas variables like Index of Industrial Production, Unemployment Rate and Weighted Average Lending Rate are having bivariate grange causal relationship with GNPA of Public and Private Sector Commercial Banks.

Keywords

GNPA, Inflation, IIP, Deposits Growth and Exchange Rate.

Full Text