Business Analyst Journal

This book has interested me a lot for heralding a transformation in capitalism away from being shareholder-centred to becoming human-centred. The authors have documented this emerging change on the basis of sound empirical evidence wedded to appealing inductive logic. There are companies which have strategically integrated “humaneness” into their value creation, and have shown better economic performance in the process. And there are also companies which have massively invested in emerging markets to meet the needs of impoverished people in large numbers by doing a rethink of products and services, technology, and marketing, and they too have shown better economic performance. In other words, these companies have considered and included “humankind” at the bottom of the pyramid.

The paper explores the condition of instability of stationary state outcome as predicted by learning literature in defence of Rational Expectation Hypothesis-REH. By using Beauty Contest Parable in Grandmont’s temporary equilibrium framework, it is argued that under very weak and reasonable conditions agents extrapolate away from the stationary state. This result is achieved even while ignoring large deviations of the past - a method conclusively criticised by Grandmont.

The present study is an attempt to examine the price discovery mechanism between the stock one month futures and spot(cash) market index for the NSE Nifty Index. It investigate the lead lag relation between these two set of markets by analyzing daily closing prices data for both NSE Nifty stock index & also NSE Nifty one month futures index for a period Jan 1 , 2016 to March 28 2018 (501 observations). The econometric tools applied include Augmented Dickey Fuller (ADF) test & KPSS test of Stationarity of Variables, Johansen Co-integration test , VAR with Error Correction Mechanism test (after determining the optimal no. of lags) & BG Serial Correlation. The results of the study revealed that the spot and futures prices of NSE Nifty were co-integrated and also had significant error corrective mechanism where the speed of correction was very fast at 93 % per period moving from short run disequilibrium to long run equilibrium. The Granger cause-effect relation was however not observed even in the VAR Model as correction towards equilibrium was arrived at a very short period of time thereby contradicting the viewpoints of researchers that futures lead the spot rates in all major stock markets. The diagnostic tests confirmed that time series of spot and futures market was stationary at 1st difference and also free from serial correlation.

Foreign Direct Investment in Multi Brand Retail has been a contentious issue both for the policy makers and the foreign investors who are willing to invest in India. Various stakeholders are baffled to assess the overall implication of FDI in Multi Brand Retail. The purpose of this phenomenological study is to examine the perceived implications of FDI in Multi Brand Retail in India for various stakeholders. To address the central research question if it makes a sense to open the door for foreign investors in multi brand retailing in India, the authors have adopted an interpretative phenomenological analysis methodology to examine the experiences of the various stakeholders associated with foreign direct investment in multi brand retailing in India. Analysis of 52 significant statements from a series of semi structured interviews revealed that FDI in Multi Brand Retail would lead to a number of economic and social problems in India. However, it was also revealed that FDI in Multi Brand Retail would improve the logistics and infrastructural prospects in both the rural and urban areas in India. People are still skeptic with the issue of employment generation or displacement but majority of the participants feel that some form of employment will be generated as a result of FDI in multi brand retailing. The political and administrative structure shall play a critical role for the reform to be successfully implemented in India. The study is the first of its kind in India and certainly the study would help the scholars from the academia and the policy makers to presuppose their argument on FDI in multi brand retailing in India.

The present study makes an attempt to investigate the impact of India’s macroeconomic variables on the India’s flagship Stock Index: the NSE Nifty. The variables include monthly log transformed prices of the key macro variables viz. money supply, industrial production , rupee –dollar foreign exchange rate, Oil Price and Yield on Government Bonds. For financial variables, closing monthly prices of NSE Nifty, Oil Prices and rupee-dollar foreign exchange rate have been taken into consideration and analysis has carried out for a ten year period April 2008 to March 2018. For other macro variables we have taken closing value of their respective indices. The study employs Dynamic OLS technique of Stock and Watson (1993), a co-integration technique which corrects for simultaneity bias. To correct for the short run dynamics, an error corrective mechanism has also been established parsimoniously. Other tests included in the study are the Augmented Dickey Fuller for detection of unit root of variables and Causality tests between Nifty and each of the macro economic variables under study. The Dynamic OLS was carried out at optimal AIC Lag Identification criteria with maximum limit set at ‘3’ lags and ‘3’ leads. The Dynamic OLS was subject to parsimonious adjustment and the results showed that only three variables, CPI, Forex and Oil were having a co-integrating relation with the dependent variable NSE Nifty Prices. The Parsimonious ECM relation to determine the equilibrium link between short and long run and the results showed that lagged error term was significant and also negative with a figure of 0.51 thereby showing 51 % backward movement towards equilibrium in one period. The unit root diagnostic tests confirmed that time series of all the independent variables was stationary only at 1st difference with only NSE Nifty being stationary at level .

In the Present world of privatisation, liberalization, globalization, and technological advancement every banking sector organisation is employing work force at a very faster rate. So, conflicts has been also been multiplying at a very faster rate. Only optimal level of conflict is very useful for the development of creativity, high problem solving behaviours and productivity. High level of conflict creates dysfunctional impacts upon the organisations. This research paper examines the nature and extent of organisational conflict between public sector and private sector banks selected under study. Further comparative analysis has been done across all banks in order to judge the level and extent of organisational conflict in each bank.

In today’s scenario, finance plays an important part in everyone’s life. In order to avoid different types of problems in life, the person should invest the money in different types of avenues. The present study concentrates on the relation between the investor behavioral biases and their investment decisions. The information was gathered from 500 investors. The investors who invest through LSC Securities ltd in Punjab were considered. The multiple regression tests were used through SPSS to test the relationship among the factors. There was a relation between the behavioral biases of the investors and their investment decisions. There was positive relation among overconfidence bias and regret bias and investment decisions. There was no relation among conservatism bias and herding bias and the investment decisions.

Investors all over the world have been in search of a model that can help them in estimating the parity between risk and return relationship which paved the way for the models like CAPM, Conditional CAPM, multi factor CAPM model with different firm specific factors, Arbitrage Pricing Theory and various other modified versions of the same. The traditional theories however have been time and again criticised for being too simple and ignoring an important aspect which is very much evident in the emerging stock markets that is the Behavioural factor. The study tested applicability of APT in the Indian context using monthly data for the period January 2000 to December 2018. Factor analysis and Fama-Macbeth regression technique has been used to find out applicability of APT in the Indian context. Results were found to be partially suited towards the applicability of the APT in estimating the risk return parity of the 500 stocks listed on the Bombay Stock Exchange.

Economists for long have been fixated with the concept of a self-interested rational economic agent. Decision making by them however is not done in isolation from the society and societal culture plays a key role there. This article provides with a review of the existing work that relates culture to macroeconomic issues like growth and development.

The current liquidity fiasco is not anymore, a confidential matter. In view of the same, the current study is an attempt to investigate deeper in order to gain insights of the so-called liquidity crunch on key sectors in India such as Mutual Fund, Microfinance institution, Banking and the Corporate. The analysis indicates towards the grim fundamentals in the upcoming year(s). The silver lining shall be a combination of efforts from the central bank along with a fiscal boost in order to make the desired dent to a shiny future.