International Journal of Financial Management

S.M. Tariq Zafar ¹, Adeel Maqbool ², Anju Fortyal ³

Affiliations
1 Director, Roorkee Collage of Management & Computer Application Roorkee
2 Director, Narvadeshwar Management College, Lucknow
3 Assist. Professor, S.B College, Vikas Nagar, Uttrakhand

Abstract

With increasing Industrialization, investment decisions in banking sector becoming more critical. Ever since Indian economy adopted globalization and opened its doors to MNCs, the Indian banking industry has been witnessing new products, efficient services and stiff competition. Its survival in competitive environment largely depends on its efficient fund generation policies, profitability and efficient management which requires a careful analysis of the profitability, competitive policies and massive investment which can be achieved with reliable saving and investor's durability to absorb competitive market risks. Thus in the light of recent developments, a careful analysis of the profitability of Indian banking sector is inevitable. The present study attempts to analyze the leverage position of Indian banking industry and its impact on EPS, its risk and return and profitability. For the purpose10 year data from 2000-01-20009-10 of ten Indian banks SBI, BOB, AB, SB, ICICI, HDFC, DB, CB, IDBI, and OBC have been taken, the value of leverages has been calculated and on the calculated leverages value Mean, Standard deviation, Skewness and Kurtosis has been calculated. After the calculation of the leverages relationship has been calculated of all leverage with EPS value.

Keywords

DFL, OL, CL, EPS, Correlation, SBI, BOB, AB, SB, ICICI, HDFC, DB, CB, IDBI, and OBC

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S.M. Tariq Zafar ¹, D.S. Chaubey ², S.R. Sharma ³

Affiliations
1 Director, Charak Institute of Business Management, Lucknow, IN
2 Director, UIBS, Dehradun, IN
3 Director, MIT, Dehradun, IN

Abstract

In the current unpredictable and volatile economic environment, the investment avenues have been changing rapidly. The stock market is one of them. There are multiple unpredictable factors which affect the performance of the global market time to time. In recent years, we have observed an unprecedented growth in the complexity of instruments for trading and risk management in international market and thus issues of international stock market linkages and the relationship between the Asian stock markets and others stock markets deserves to be investigated to justify the risk and return factor after the Asian Financial Crisis. This is the fi rst exhaustive study of its kind on linkages and the interrelationship between the Asian stock markets and others stock markets namely, Malaysia (Kuala), Singapore (Strait), Philippines (Pse), Indonesia (Jakarta), China (Shanghai), Japan (Nikkie), Korea (Kospi), and the US (Dow) and reveal that stock markets of Thailand, Japan and China are exogenous before, during and after the crisis respectively. For the purpose of study composite sample consisting of all the stocks based on weekly stock indexes is been used to construct panels and for the same the total samples are separated into three sub periods - January 2005 to December 2007, January 2008 to December 2008, January 2009 to December 2009. The fi rst part of paper gives an insight about the Asian and US stock markets and its various aspects. The second part consists of data and their analysis, collected from the various websites and manuals. The short-term linkage was tested through granger causality test based on Vector Error Correction Model (VECM), and the co integration or long-term linkage was through Engle- Granger co integration test. The empirical results show that the number of signifi cant cointegrating vector is higher during the crisis periods compared to other periods and concludes that the linkages between the Asian and the US stock markets are stronger in the post-crisis period

Keywords

VECM, Unit Root, DF test, ADF test, Shanghai, Nikkie, Kospi, Dow, Stock market

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S.M. Tariq Zafar ¹, D.S. Chaubey ², S.M. Khalid ³

Affiliations
1 Director, Charak Institute of Business Management, Lucknow, U.P., IN
2 Director, United Institute of Business Studies, Dehradun, IN
3 Independent Financial Consultant

Abstract

Survival of economy depends upon smooth supply of financial resources which is possible only if nation banking sector is effective, efficient and strong. Its goodwill, fund generation and its effective allocation, profitability, efficient management of dividend payout and profit retention play important role in its survival and growth. No company can ignore dividend but strategically invite careful analysis of it to develop everlasting solution to the problem of payout and retention ratio which impact share price and maximization of wealth. The present study attempts to analyze the impact of dividend on shareholders wealth of eleven selected Indian banks listed and actively traded in National Stock Exchange (NSE) during the period 2006 to 2010 using multiple regression technique, in addition t-values, the coefficient of determination (R2) has been calculated and its significance also been tested with the help of F-Value. The first part of paper gives an insight about the dividend and its legal implications. The second part consists of data and their analysis which revealed the fact that there is significant impact of dividend policy on the shareholder's wealth in Indian banking companies. At the end, concluding remarks and suggestions are given. Gilt schemes are seen to have been positive. However, the observed positive performances of the selected schemes are not statistically significant.

Keywords

Dividend Per Share (DPS), Market Price Per Share (MPS), SD, T-Values, Sig- Value, P/E Ratio, Retained Earnings (RE)

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