Navdeep Aggarwal ¹

Affiliations
1 Department of Business Management Punjab Agricultural University Ludhiana, Punjab India

Abstract

The subject of market orientation has been of interest to both researchers and practitioners for several years. However, the major focus of research and discussions has been the market orientationperformance relationship. Despite having been pointed out by some authors, the development of insights to the factors that impede the development of market orientation have remained largely ignored- more so in developing economies and emerging markets like India. The objective of this study is to stop this trend. Using a modified version of MARKOR scale and replication of some items of Jaworski and Kohli (1993) study, the author has investigated potential organizational barriers to the development of market orientation in Indian companies.

Keywords

Market Orientation, Organizational Barriers

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Navdeep Aggarwal ¹, Mohit Gupta ¹

Affiliations
1 Department of Business Management, Punjab Agricultural University Ludhiana 141004, Punjab

Abstract

The flexibility and cash outflow certainties make option contracts one of the most favored instruments for hedging purposes. Among various option-based strategies, protective put and covered call have been very popular. However, not much work has been carried out to check the relative hedging performance of covered call and protective put strategies. Moreover, research has remained largely limited to developed markets. This study compares the hedging performance of covered call and protective put strategies by utilizing total returns index for S&P CNX Nifty as a stock portfolio and hedging the same through options available on S&P CNX Nifty. It was found that both covered call and protective strategies could outperform a simple buy and hold portfolio on risk adjusted basis. Specifically, portfolio with 5% ITM short call and portfolio with 2% ITM long put had superior performance. On comparison, protective put strategy outperforms the covered call strategy both in terms of hedging effectiveness and risk adjusted returns. After adjusting for non-normality also, the portfolio with 2% ITM put option offered the best statistics.

Keywords

Portfolio Hedging, Protective Put, Covered Call

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Mohit Gupta ¹, Navdeep Aggarwal ¹

Affiliations
1 School of Business Studies Punjab Agricultural University Ludhiana 141004, Punjab

Abstract

Renaming of stock corresponds to creation of a new name with the intention of developing a differentiated position in the mind of investors. Stock renaming, although, commonly referred to in financial press and periodically posted on stock exchange websites, has received little attention from academia especially in Indian context. We aim to fill this gap by analysing the impact of corporate name change on shareholder's wealth, using event study methodology. We focus on firms listed on National Stock Exchange and Bombay Stock Exchange, who have made stock name change announcements in the period starting from 1 April 2010 to 31 March 2012. We sampled 55 stock name change announcements and further categorized them into large cap, mid cap, and small cap stocks. We found no evidence of significant abnormal returns or significant cumulative abnormal returns in the event period (e-5, e, e+5) for large cap and mid cap stocks. We do find evidence of significant positive cumulative abnormal returns in the e+5 period and significant abnormal positive returns on e- 1 and e-2 days for small cap stocks.

Keywords

Stock Name Change, Event Study

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