Global Financial Crisis and its Impact on India

Prasad, Abha; Reddy, Ch. Panduranga

doi:10.1080/09718923.2009.11892744

Cited by 22 publications

(14 citation statements)

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“…The financial crisis adversely affected global liquidity and increased the cost of borrowing. The Indian financial sector is not deeply integrated with the global financial system and thus, Indian banks and financial institutions remained largely unaffected (Prasad and Reddy, 2009). Nevertheless, as the financial crisis distorted global economies, India could not escape the adverse effects.…”

Section: 23mentioning

confidence: 99%

Leverage and performance: do size and crisis matter?

Danso

Lartey

Gyimah

et al. 2020

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PurposeThis paper contributes to the capital structure literature by examining the impact of financial leverage on firm performance and also the extent to which firm size and crisis matter in the leverage -performance relationship.Design/methodology/approachUsing data from 2403 Indian firms during the period 1995–2014, generating a total of 19,544 firm-year observations, panel econometric methods are employed to test the leverage-performance relationship.FindingsDrawing insights from agency theory and using Tobin's Q (TQ) as our main measure of performance, the authors uncover that financial leverage is negatively and significantly related to firm performance. The authors also observe that the impact of financial leverage on firm performance is lower for smaller firms than larger ones. Finally, the authors show that the 2007/08 financial crisis had no significant impact on the relationship between financial leverage and firm performance.Originality/valueThe paper provides fresh evidence on the impact of leverage on performance, particularly from the Indian context. This study is also among the first studies to examine the role of firm size and financial crisis in the leverage-performance relationship.

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Section: 23mentioning

confidence: 99%

Leverage and performance: do size and crisis matter?

Danso

Lartey

Gyimah

et al. 2020

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“…However, the turmoil in the international financial markets of advanced economies that started around mid-2007 has exacerbated substantially since August 2008. The first hint of the trouble came from the collapse of two Bear Stearns hedge funds in early 2007 (Prasad and Reddy, 2009). Subsequently a number of other banks and financial institutions also began to show signs of distress.…”

Section: Introductionmentioning

confidence: 99%

Evaluating the Performance of Indian Banking Sector using Data Envelopment Analysis during Post-Reform and Global Financial Crisis

Kumar¹,

Charles²

2012

CENTRUM Católica's Working Paper Series

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Enticed by the reform of Indian banking sector in the early 1990s and further slowdown in the economy as a result of global financial crisis in late 2000s, the current study analyzes the performance of Indian banks using data envelopment analysis. The performance is measured in terms of technical efficiency, returns-to-scale, and Malmquist productivity index for a sample of 33 banks, consisting of 19 public sector and 14 private sector banks during the period spanning 1995-96 to 2009-10. The jackknifing analysis, followed by the dummy variable regression model is used to identify the outlier and its possible impact on overall efficiency trends. Findings reveal that efficiency scores are robust in the sense that the inclusion of outlier does not affect the overall efficiency trends. The public sector bank is faintly doing better than the private sector banks in terms of (i) technical efficiency since 2003-04 and (ii) scale efficiency from 2000-01 onwards. There is growing tendency of public banks operating under increasing returns to scale, implying that substantial gains could be obtained from altering scale via either internal growth or consolidation in the sector. The difference in the Total Factor Productivity (TFP) change between these two types of banks is found to be statistically significant in favour of public sector banks. The technological change has been the dominating source of productivity growth, whereas, the contribution of pure efficiency change and scale change are found to be negligible in Indian banking sector during the period of study. The reform in Indian banking sector has clearly re-energized the Indian banking sector as a whole, resulting in a positive change in TFP through technological change possibly as a result of adoption of latest technology and new business practices in post reform period. However, there is evidence of shrink in the market resulting in movement of the banks towards increasing returns-to-scale as well as negative growth in TFP in both the sectors during the period of global financial crisis.

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“…The prime cause of collapse was US housing zz that emerged high in 2006. Thus, according to Prasad and Reddy (2009), throughout this era, mortgage agents fascinated by the huge payments, attracted purchases with meagre credit to admit housing mortgages with small or no deposits and not including credit checks. Financial institutions provided funds on the supposition that housing values would increase persistently.…”

Section: Nancial Crisis and Indiamentioning

confidence: 99%

“…Various factors of the Indian nancial system, like: Indian exchange rates, IT, foreign investment, foreign exchange outows, unemployment rate, volume of exports, stock market and banking, have been inuenced by the 2008 crisis started from the United States (Prasad and Reddy, 2009). However, the most instantaneous outcome was experienced on the meltdown of its foreign exchange and equity markets.…”

Section: Nancial Crisis and Indiamentioning

confidence: 99%

The properties of realized volatility and realized correlation: Evidence from the Indian stock market

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Vortelinos

Saha

2018

Physica A: Statistical Mechanics and its Applications

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This paper investigates the properties of realized volatility and correlation series in the Indian stock market by employing daily data converting to monthly frequency of ve dierent stock indices from January 2, 2006 to November 30, 2014. Using non-parametric estimation technique the properties examined include normality, long-memory, asymmetries, jumps, and heterogeneity. The realized volatility is a useful technique which provides a relatively accurate measure of volatility based on the actual variance which is benecial for asset management in particular for non-speculative funds. The results show that realized volatility and correlation series are not normally distributed, with some evidence of persistence. Asymmetries are also evident in both volatilities and correlations. Both jumps and heterogeneity properties are signicant; whereas, the former is more signicant than the latter. The ndings show that properties of volatilities and correlations in Indian stock market have similarities as that show in the stock markets in developed countries such as the stock market in the United States which is more prevalent for speculative business traders.

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Global Financial Crisis and its Impact on India

Cited by 22 publications

References 0 publications

Leverage and performance: do size and crisis matter?

Leverage and performance: do size and crisis matter?

Evaluating the Performance of Indian Banking Sector using Data Envelopment Analysis during Post-Reform and Global Financial Crisis

The properties of realized volatility and realized correlation: Evidence from the Indian stock market

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