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Kumar, Mohit
- Inter-Linkages between India and World Stock Markets and European Debt Crisis
Authors
1 Satyawati College (Evening), University of Delhi, Delhi, IN
Source
Journal of Commerce and Accounting Research, Vol 4, No 3-4 (2015), Pagination: 47-59Abstract
This paper examines the inter-linkages and long run cointegration of Indian economy with other economies of the world (US, Europe, Other Emerging markets, and World economy) using standard indices of MSCI over the period April, 2001 to March, 2013. We also investigate Indian economy's response to recent global turbulence European Debt crisis (EDC). We use Granger causality test, Johansen co-integration test and Impulse response analysis of Vector auto-regression framework to test various hypotheses. There is no contagious effect of EDC on Indian economy. During post-EDC, the Indian economy is granger caused by US and world economies. Further during the pre as well as post-EDC period, no cointegrating relationship has been found. This low level of co integration, despite presence of short run causal relationship, shows that global shocks might destabilize Indian economy in long run. Especially, Impulse response analysis revealed that Indian economy seems to be affected from the shocks created in the European markets and such shock persists in Indian economy for more than 10 months.These results have important policy implications. The policy makers need to understand that although there is no contagious effect of EDC on Indian economy but interdependency can destabilize Indian economy for much longer period.Keywords
Global Financial Crisis, Inter-Linkages, Granger Causality, Johansen Co-Integration Test, Impulse Response Analysis, European Debt Crisis.- Market Microstructure of Corporate Bond Market in India:An Empirical Analysis
Authors
1 Department of Commerce, Delhi School of Economics, University of Delhi, Delhi, IN
2 Satyawati College (E), University of Delhi, Delhi, IN
Source
Journal of Commerce and Accounting Research, Vol 6, No 2 (2017), Pagination: 9-15Abstract
A smooth and robust corporate debt market is considered crucial for the development and stability of an economy. A well-developed corporate debt market enables efficient allocation of funds, facilitates infrastructure financing, improves the health of corporate balance sheets and safeguards financial stability by sharing the burden of banking sector in financial system of an economy.
In the present paper, we have adopted historical approach of market efficiency to study the corporate bond market in India. The study investigates the difference between BSE and NSE platforms of trading in corporate bond market in India. Also, to study market efficiency of these market, historical approach of market efficiency has been used. This approach is based on the notion that as market matures, it became more efficient. The descriptive analysis and semi-log regression equations have been used on the datasets. The period of study is 9 years from April, 2007 to March, 2016.
The descriptive analysis supported the hypothesis that there is a difference between the two trading platforms of corporate bond market in India. During the period 2007-2016, it has been found that the number of trades at BSE was growing at lower rate but with higher average amount raised per trade than NSE. It shows that BSE has effectively filtered out better quality trades from trades from overall market. However, total amount raised at NSE was higher than BSE, it could be the reckless behaviour of investors or informational inefficiency and needs further investigation. The findings may help policymakers, regulators and participants to take judicious decisions to make trading in corporate bond market more beneficial for all stakeholders.
Keywords
Corporate Bond Market, Market Efficiency, Historical Approach, Indian Financial System.References
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