Purpose: The purpose of the study is to analyze motivation behind payment of cash dividend by the firms in India in presence of tax provision that discourages payment of dividend by imposing tax on firms at the time of distribution.Design/methodology/approach First, consistent with Jensen's...

Way back in 1934, Graham and Dodd observed the importance of earning power in investment theory. According to them, history of actual earning with a reasonable expectation should be approximated in future. The empirical study of Ball and Brown (1968) contends that - of all the sources of...

The paper empirically investigates the reasons behind poor asset quality of the Indian banks. The substandard asset quality is due to skewed nature of GDP distribution with service sector contributing around 53% of GDP. The efficiency of the said sector is attributable to deployment of strategic...

Singapore -a common law origin first world country has a built-in system of reasonably adequate investors' protection with high degree of security of property right. Consistent therewith the present paper empirically demonstrates that minority shareholders extract dividend from the firms as an...

Confronted by economic uncertainty and bleak prospect during the UPA 2 regime in India large corporates hoarded cash accumulated through robust performance of earlier years. At variance with the existing literature empirical evidence indicates that the marginal value of liquidity seemed to...

Based on ‘ agency theory' the present study argues that in a negotiated and collateral security based debt financing system where the need for debt financing of the firms is largely met by the banks in absence of active and liquid corporate debt market , there should be a two way relationship...

Turnaround companies are defined as those which after reporting accounting loss consecutively for two or more quarters announces profit for the first time. Between 2004 and 2009 by analyzing the data of 49 such turnaround companies, we document about 9% cumulative average abnormal return (CAAR)...

There exist conflicting arguments as regards the role of high liquidity on firm performance. Excess liquidity reduces financing cost in presence of information asymmetry but creates agency problem as the self-serving manager may not use the liquid fund in the stockholders' best interest. The...

The paper explores the impact of board composition and ownership structure on firm performance of Indian firms from 2009-2013 in presence of certain unique statutory provisions relating to independent directors and limits on ownership concentration. The results show that after controlling for...