No abstract

The purpose of the paper is to investigate whether women directors impact the risk and return of Indian banks. This study employs panel data models for a sample of 29 Indian banks that form part of the National Stock Exchange 500 index for the period 2009–2016. This paper concludes that women directors influence the accounting returns (measured through Return on Assets) of Indian banks. However, it was found that women directors did not affect the risks (measured through Equity Beta and gross NPA to Total Assets) of the sample banks. This paper contributes to the literature and practitioners in several ways. To the best of the knowledge of the authors, no study has examined the impact of women directors on the risk and return of banks operating in India. Hence, the findings of this article have substantial implications both to academia and practitioners.

The present study analyzes the trading activity of Indian mutual funds and investigates whether Indian mutual fund managers are engaged in herding behaviour. Results are compared with previous studies in mature as well as developing markets to determine the level of maturity of the Indian capital market. Measure of herding developed by Lakonishok et al. (1992) has been used. The study found strong evidence of herding in the overall sample. Managers herd primarily when they trade in large capitalization stocks or stocks that belong to the most famous indices. The herding effect seems to affect both purchases and sales of stocks. The level of herding is more in Indian stock market as compared to developed markets. Furthermore, the Indian mutual funds tend to herd more often when purchasing than when selling a stock, and when trading large stocks. The study will contribute to the discussion regarding market efficiency and traditional asset pricing models validity. Evidence on herding by institutional investors, could explain whether there are different types of

This paper investigates the impact of introduction of derivative instruments and leverage and asymmetric effect on spot market volatility (Nifty) in India during the period October 1995 to December 2006 by using GARCH, EGARCH, TARCH and component ARCH model. The results suggest towards a decline in spot market volatility and market efficiency improved after introduction of index futures, stock futures, stock options and index options on the spot market due to increase impact of recent news. This study also finds evidence of leverage and asymmetric effect on spot market where the conditional variance is an asymmetric function of past innovation, rising proportionately more during market declines. It is also observed that the asymmetric GARCH models provide better fit than the symmetric GARCH model. Thus to predict stock market volatility, one should use the asymmetric model which can capture the so-called leverage effect observed in our study.

Earnings management has attracted lots of academicians towards the research due to the emerging frauds and downfall of great corporate giants of the world. Mainly earnings measurement is based on the accounting estimates which managers can easily manipulate for their self-interest. The study investigates the relationship between cost of capital and the earnings measurement for the Indian firms. Measurement of earnings is mostly computed by taking either discretionary accruals (DAC) or non-discretionary accruals (NDAC). Present study has used Dechow, Sloan, and Sweeney (1995) model for earnings measurement and for analyzing the results. Panel data regression has also been used. Findings of the study conclude that DAC has a significant influence on cost of capital, but NDAC has no influence.