Indian Journal of Research in Capital Markets https://www.i-scholar.in/index.php/ijrcm <p>INDIAN JOURNAL OF RESEARCH IN CAPITAL MARKETS (ISSN 2394-3459; indexed in Indian Citation Index, Google Scholar among others) is a double blind peer reviewed refereed journal that aims at the dissemination and advancement of research in Capital Markets. The aim of the Journal is to provide a platform to researchers, practitioners, academicians, and professionals associated with the field of Capital Markets. To encourage and promote research across a wide breadth of areas pertaining to Capital Markets, the Indian Journal of Research in Capital Markets invites submissions of original, empirical, and theoretical papers as well as case studies and book reviews covering diverse areas of Capital Markets that are listed as follows:</p><p><span>• Analysis and design of trading mechanisms;</span><br /><span>• Behaviour of asset prices in financial sectors;</span><br /><span>• Capital, security, and derivatives markets; securities and derivatives trading and pricing (stocks, bonds, currencies, commodities);</span><br /><span>• Corporate governance;</span><br /><span>• Corporate restructuring: Share buybacks, delisting, mergers, and acquisitions;</span><br /><span>• Credit markets and leverage buy outs;</span><br /><span>• Dividends, bonus, and rights issues and rates of return;</span><br /><span>• Global integration of Indian capital markets-IDRs, Sponsored ADRs/GDRs, etc.;</span><br /><span>• Market efficiency;</span><br /><span>• Market mechanisms;</span><br /><span>• Market micro structure;</span><br /><span>• New issues market and merchant banking;</span><br /><span>• Normative theory of financial management;</span><br /><span>• Optimal order placement strategies;</span><br /><span>• Performance and regulations of mutual funds;</span><br /><span>• Private placements: preferential issues, qualified institutions placements;</span><br /><span>• PSU disinvestment;</span><br /><span>• Real estate investment trusts;</span><br /><span>• SME issues;</span><br /><span>• The role of information in securities market;</span><br /><span>• Theories of market equilibrium;</span><br /><span>• Valuation of bonds, convertible debentures, and market for debt;</span><br /><span>• Valuation of financial and real assets;</span><br /><span>• Valuation of stocks and functioning of the stock markets;</span><br /><span>• Valuation, trading, hedging, investing, and pricing issues in global stock, bond, commodity, currency, and derivative markets. It also welcomes studies of market theory, regulation, and investment management; and</span><br /><span>• Value investing.</span></p> Associated Management Consultants Pvt. Ltd. en-US Indian Journal of Research in Capital Markets 2394-3459 Is Social Media Engagement and Sentiments the Right Metric for Investing in Crypto-Currencies? Implications for Entrepreneurs and Investors https://www.i-scholar.in/index.php/ijrcm/article/view/222591 <p><strong>Purpose :</strong> This study examined the relationship between social media engagement and cryptocurrency prices, considering information asymmetry and lack of historic data in the cryptocurrency market.</p><p><strong>Approach :</strong> The study analyzed the correlation between social media engagement and prices of major cryptocurrencies using a graphical approach. Data on daily social media reach, mentions, engagements, and cryptocurrency price changes were collected for three sets of 16 days each.</p><p><strong>Findings :</strong> The study showed diverse relationships between social media engagement and cryptocurrency prices. Bitcoin exhibited a strong positive correlation, Altcoins showed a moderately positive correlation, and Stable Coins demonstrated a weak negative correlation. No significant correlation was observed for utility tokens and security tokens.</p><p><strong>Practical Implications :</strong> The study suggested that entrepreneurs should focus on creating engaging content to boost cryptocurrency prices instead of relying solely on social media engagement. Retail investors should exercise caution when using social media for investment decisions, as it may not accurately reflect a cryptocurrency’s true value or potential.</p><p><strong>Originality/Value :</strong> This study contributed to the understanding of the complex relationship between social media engagement and cryptocurrency prices. The study highlighted the need for thorough research and consideration of multiple factors when making investment decisions in the cryptocurrency market.</p><p><strong>Conclusion and Implications :</strong> The study’s implications extend to entrepreneurs and retail investors in the cryptocurrency market. Entrepreneurs should consider social media engagement as one factor among many to increase cryptocurrency prices and be aware of its limitations. Retail investors should conduct thorough research and consider multiple factors, as relying solely on social media engagement may not accurately assess a cryptocurrency’s potential.</p> Debashish Sakunia Biswajita Parida 2023-03-01 2023-03-01 10 Integration Between Stock Market Returns and Interest Rate and its Impact on Inflation : Empirical Evidence from Five Countries https://www.i-scholar.in/index.php/ijrcm/article/view/222592 <p><strong>Purpose :</strong> The present study tried to investigate the impact of the equilibrium relationship between deposit interest rates and the stock market return on inflation.</p><p><strong>Methodology :</strong> Five countries, namely Brazil, Hong Kong, India, Japan, and the United States of America, were used as a subject of study. Statistical tools such as Granger and Toda Yamamoto causality were used to understand the causal relationship along with some other auxiliary statistical tools such as Johansen cointegration, t-test, and auxiliary autoregression. For inflation, we used the consumer price index as a proxy, whereas the residual series of purchasing power generated by the deposit interest rate and the stock market return were used as the second series.</p><p><strong>Findings :</strong> We found that for countries where there is no equilibrium relationship, a unidirectional causal relation was established from the residual to the consumer price index, and no causality was found for countries where the relationship existed. The outcome indicated that if the difference in purchasing power generated by two variables has some kind of trend or seasonality, it will cause some sort of movement in the inflation of a nation.</p><p><strong>Practical Implication :</strong> The findings can help in curing economic illnesses, such as deflation and inflation, with proper policy implementation.</p><p><strong>Originality :</strong> The literature consists of mixed results and bidirectional causality; thus, through this paper, I tried to build a narrative to explain the causal direction. Furthermore, I avoided using return or interest for the analysis ; rather, it was converted into purchasing power concerning the base year.</p> Bishal Routh 2023-03-01 2023-03-01 10 Behavioral Finance - An Emerging Theory : A Review Study https://www.i-scholar.in/index.php/ijrcm/article/view/222593 <p><strong>Purpose :</strong> This paper debated market efficiency and asset pricing through an extensive review of literature in favor as well as against the well-known efficient market hypothesis (EMH). The purpose of this paper is to provide a comprehensive literature review of behavioral finance to label it as an alternate theory of asset pricing.</p><p><strong>Methodology/Design/Approach :</strong> In this paper, the literature review is divided into three parts. Part-1 provides a review of EHM, its dominance, and downfall. Part-2 discusses the rise of behavioral finance as an alternate theory, and part-3 discusses the influencing factors of investment behavior. Three criteria were set for the selection of the articles. First, only relevant and most articles published from 2000 – 2022 were selected, and second, the most important articles published before 2000 were also included. Third, only those articles were selected that were published in the English language.</p><p><strong>Findings :</strong> Comprehensive literature review in this paper helped in solving the market efficiency problems. It shows how the concepts of market efficiency and rationality were challenged by the new field of a discipline known as behavioral finance. Through further discussion on behavioral finance, this paper points out many gaps and also suggests how to bridge them.</p><p><strong>Originality/Value :</strong> This is an extensive study that not only discusses the rationality approach of asset pricing through EMH, but also discusses behavioral finance and its relevance to asset pricing. This study can assist the researchers to focus more on behavioral finance and explore more determining factors of the investment behavior of the investors.</p> Arfat Manzoor Andleebah Jan Mohammad Shafi 2023-03-01 2023-03-01 10 A Study on Wealth Management During Crisis : An Empirical Study Using Downside Risk Approach in India https://www.i-scholar.in/index.php/ijrcm/article/view/222594 <p><strong>Purpose :</strong> The present study identified the factors influencing shareholders' wealth during a crisis like COVID-19. The growing importance of the capital asset pricing model (CAPM) in shareholders' minds leads to identifying new important factors that ruin wealth during a downturn. Hence, the present study is a humble attempt to find such a factor identified as downside beta.</p><p><strong>Methodology :</strong> The main independent factor, namely market risk premium, is very popular as CAPM of equity returns. The importance of protecting wealth becomes more important than creating wealth. This leads to considering only downside market movement to understand equity returns in the current study. Furthermore, a proposed model was introduced as Downside CAPM (D-CAPM). D-CAPM structural changes were captured during COVID-19 by taking data from April 1, 2019 – March 31, 2020, and April 1, 2020 – March 31, 2021.</p><p><strong>Findings :</strong> We found that the slope of the relationship relatively showed more sensitivity to downside movement. However, individual stocks' slope of relationship improved after COVID-19. It showed improved return sensitivity after the COVID-19 scenario, even when the market turned negative.</p><p><strong>Practical Implications :</strong> The outcome of this study will aid investors, investment advisors, portfolio managers, and others in protecting and managing their wealth even during a crisis using the DCAPM method.</p><p><strong>Originality :</strong> Unlike prior research on D-CAPM, this study attempts to capture structural changes in the model during COVID-19 in India.</p> Divya Kumari Abhishek Parikh 2023-03-01 2023-03-01 10