Informatics Publishing Limited

Jasmindeep Kaur ¹, Silony ²

Affiliations
1 Reader, Commerce Department, Punjabi University, Patiala
2 Finance Faculty, Amity Global Business School, Patna

Abstract

The present paper is related to penetration and progress of public sector and private sector banks in Punjab. For the purpose of study secondary data has been collected from Statistical Abstract of Punjab, Agenda Paper on State Level Bankers' Committee Meetings, District Credit Plans for various districts related to various years; and various web sites. The period from 1990-91 to 2007-08 has been chosen for the study. The scope of study covers the data of public and private sector banks in Punjab. It is found from the study that the both the type of banks grew drastically after banking sector reforms but the branches, deposits and advances of private sector banks increased at a faster rate than that of public sector banks. The share of rural branches in total branches of both the public and private sector banks decreased during the study period. Also, the disparity in growth of deposits and advances of private sector banks was greater than that of public sector banks. Deposits and advances of both the type of banks were distributed unevenly in different districts of Punjab. The tendency for deposits and advances in banks was found to be higher in developed districts than backward districts. The volume of business of public sector banks was more in rural and semi-urban areas while that of private sector banks was more in urban areas. The credit-deposit ratio of public sector banks presented a more dismal picture than private sector banks in Punjab. It is suggested to increase the attention of both the public and private sector banks on rural masses.

Keywords

Banks, Public Sector, Private Sector, Punjab

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Navleen Kaur ¹, Jasmindeep Kaur ²

Affiliations
1 S.A. Jain (P.G.) College, Ambala City, Haryana, IN
2 Punjabi University, Patiala, Punjab, IN

Abstract

The present study is an attempt to ascertain the determinants of profitability of automobile industry in India by taking a sample of all the automobile firms covering various segments of automobile industry in India viz. commercial vehicles, three wheelers, two wheelers, and passenger vehicles which are listed on Bombay Stock Exchange (BSE), for a period of eleven years from 2003-04 to 2013-14. In order to achieve the objectives of the study, firm-specific factors viz. financial leverage, size of firm, tangibility of assets, growth of firm, liquidity, inventory turnover ratio, debt equity ratio, debtors turnover ratio, total assets turnover ratio, average payment period, and cash liquidity of firm are regressed against return on assets ratio. Firstly correlation analysis and multiple regression analysis are applied to identify the factors affecting profitability of sample firms. Further, to find out the prominent factors that account for the variation in profitability of sample firms, stepwise regression analysis has been carried out. It was found that profitability of automobile industry in India is significantly influenced by the liquidity position of firm, growth of firm, inventory turnover ratio, debt equity ratio, and average payment period.

Keywords

Profitability, Automotive, Automobile, Multiple Regression Analysis, Stepwise Regression Analysis, Secondary Data.

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Navleen Kaur ¹, Jasmindeep Kaur ²

Affiliations
1 Department of Commerce, S.A. Jain (P.G.) College, Ambala, IN
2 Department of Commerce, Punjabi University, Patiala, IN

Abstract

The main objective of this study is to identify the most significant determinants of capital structure of original equipment manufacturers from Indian Automobile Industry which are listed on the Bombay Stock Exchange for the period 2003-04 to 2016-17. To achieve the objectives of the study, hypotheses were formulated on the basis of review of various theories of capital structure viz. Pecking Order Theory, Static Trade-off Theory, etc. and empirical evidences on the subject. Descriptive statistics, analysis of correlation, and panel data regression including regression diagnostics have been used as statistical tools to identify the most significant determinants of capital structure of the sample companies. STATA software was used for the analysis of the data used in the present study. The results of the analysis carried out in the study revealed that the most significant determinants of capital structure of the sample companies during the selected time period were profitability of company, size of company, liquidity position of company, tangibility of assets, and operating cash flow, while non-debt tax shield, and effective tax rate did not show any significant relationship with the capital structure of the companies under consideration during the period of study. The study also observed evidences in support of Pecking Order Theory, and Free Cash Flow Theory, but no evidences were found in support of Static Trade-off Theory. This study provides useful insight pertaining to the financing behaviour of automobile manufacturing companies in India.

Keywords

Capital structure, Debt, Automobile companies, Manufacturing, Panel data regression, Determinants.

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