Recent advances in our understanding of capital structure decisions have not yet made their mark upon our capital budgeting techniques and practices. This paper attempts to bridge this gap. In doing this, it offers a surprisingly simple approach for managers to follow in marking financial...

The Capital Asset Pricing Model is a single period model which specifies a linear relationship between return on an asset and return on the entire market. The model is widely used in literature as if a portfolio of securities can be designed based on a unique value of systematic risk. In this...

Modigliani and Miller demonstrated the impact of corporate taxes on valuation. Miller, Jaffe and Modigliani among others further studied the impact of personal taxes on valuation. Amoako-Adu attempted to analyse the impact of dividend taxes on valuation. Hochman and Palmon studied the impact of...

The extent literature on valuation identifies several important variables affecting the value of a firm. These include, corporate and personal taxes, reinvestments, leverage, dividend policy, and inflation. But, most of the papers have focussed only on a small number of these variables at a time...

This paper while agreeing with the general thrust of the Narasimham Committee Report. Calls attention to some logical corollaries of the Report and analyses some possible fallout from implementing the Report. We agree with the view that control of banking system should be under an autonomous...

As in many other countries, India five year old credit rating industry has grown rapidly amidst persistent doubts about the quality of the rating service. This paper evaluates the ratings given by India leading credit rating agency, CRISIL. We find that CRISIL ratings are not only too liberal by...

The paper critically examines the accounting standards setting process in India and compares the Indian process with the processes prevailing elsewhere in the world. The paper concludes that the Indian standards setting process is neither transparent nor robust. Even though the Accounting...

In this paper an attempt has been made to comment on the contents of the Draft Regulation for ‘Substantial Acquisition of Shares in Listed Companies’ of SEBI (Consultative Paper 1). The authors broadly concur with the guiding principles, thrust and coverage of the proposed regulation. They...

The Economic reform process initiated by the Government of India since July 1991 envisaged a major shift from an over regulated and protected regime to a deregulated and market oriented system. The period since 1991 has seen some important changes in the approach to and the content of India’s...

Though the Indian equity market has shown some encouraging growth in the last decade, the Indian debt market has continued to remain sluggish. In an environment where India is keen to attract foreign investments, it will be imperative to develop the secondary market for debt. This study,...