Commissions-motivated agents have historically helped the development of many markets, but research suggests brokers motivated by commissions sometimes steer consumers towards inappropriate products. This issue is particularly important in household financial markets where consumers may be...

Mutual fund companies typically charge investors distribution fees, such as 12b-1 fees in the United States, which they then use to pay commissions to brokers. We evaluate a major Indian investor protection reform that limited the ability of mutual funds to charge distribution fees to pay broker...

The competitiveness of the IPO underwriting market suffers from the concentration of restricted mandates in the hands of a limited number of underwriters with good reputations. Academic research has focused extensively on the relationship between underpricing and the influence of an individual...

Despite harmful effects, Real Earnings Management (REM) is increasingly becoming more popular method of earnings management than Accruals based Earnings Management (AEM) (Cohen et al., 2008; Commerford et al., 2018). We argue that, when firms’ organizational structure has extended boundaries with...

We provide direct evidence on how firms prioritize the Corporate Environment Responsibility (CER) budget as part of their Corporate Social Responsibility (CSR) in India. We argue that polluting firms share higher responsibility towards the environment and hence they should spend more on CER,...

We study the possible effect of government infusions on promoting financial stability and diffusing financial crises in emerging markets. While government led bank capital infusions in US and other developed markets have been usually contingent an external shock or crisis episode, India presents...

We exploit a counterfactual regulation that forced profitable Indian firms to contribute a minimum of 2 percent of their net profit towards Corporate Social Responsibility (CSR) to assess whether CSR spending should remain voluntary or regulated. We find that mandatory CSR spending does not have...

This paper uses the Fama-French three-factor model to explain the cross-section of stock returns over various time scales using a new approach. The new approach is based on a wavelet multiscaling method that decomposes a given time series on a scale-by-scale basis. The empirical results provide...

This paper examines the effect of initial margin requirements on long-run and short-run volatilities in the Japanese stock market using the Component GARCH model. Our empirical results show that when we do not divide the margin requirement into positive and negative changes, increasing margin...

How does the optimal risk exposure of assets change as their investment horizons increase? Does this impact investment portfolio decision-making, in particular, optimal asset allocation between value and growth strategies over various investment horizons? This paper adopts a new approach to...