This paper examines the effect of past dividend policy, leverage and profitability on the probability of increase in future value of the firm (in terms of market to book value ratio (MBVR)) for an emerging economy, India. It uses fixed effect logit model to predict the probability of increase in...

This paper attempts to identify the factors explaining IPO underpricing in an emerging economy, India, using 1842 companies that got listed on the Bombay Stock Exchange (BSE) from 1993 to 2001. Unlike the existing works that analysed the relation of ex-ante risk proxies and underpricing, this...

Several papers have identified the uncertainty of the investors and signaling intentions of the issuers behind IPO underpricing. This paper tests the implications of these models for the Indian IPOs over the last decade. The empirical findings show that there exists positive relationship between...

We find evidences of significant volatility co-movements and/ or spillover from different financial markets to forex market for Indian economy. Among a large number of variables examined, volatility spillovers from stock market, government securities market, overnight index swap, Ted spread and...

In this paper we empirically investigate the relationship between capital flows and exchange rates in India based on a new index of real effective exchange rates for the Indian Rupiah. Instead of using consumer price indices we deflate exchange rates by MSCI asset price indices. The...

Countercyclical capital buffer (CCCB) has been incorporated in the Basel III framework with the aim of ensuring that banking sector capital requirements take account of the macro-financial environment in which banks operate. It is likely to address pro-cyclicality in the banking business and its...

This study uses a GARCH model to estimate conditional volatility in the Indian overnight money market during the period 1999-2006. It finds that the bid-ask spread in the overnight market was positively related to conditional volatility during 1999-2002. This relationship, however, has undergone...

In this paper we empirically investigate the relationship between capital flows and exchange rates in India based on a new index of real effective exchange rates for the Indian Rupee. Instead of using consumer price indices we deflate exchange rates by MSCI asset price indices. The cointegration...

The paper investigates whether the effects of monetary policy on firm investment can be transmitted through leverage. The findings indicate that monetary contractions reduce investment for highly leveraged firms. The estimates imply that a 1 percentage point tightening of liquidity reduces...