The present paper examines the interaction between a bank and a development financial institution (DFIs) in a macroeconomic set-up both of whom can lend for working capital and investment finance purposes. Our analysis reveals that the reduction in the interest rate premium on bonds over the...

Banks and financial institutions play a major role in governance of non-financial companies in India through the mechanism of nominee directors. This paper probes two allied issues: firstly, the isolation of the firm specific factors which determine the presence of bank nominee directors on...

The paper examines the process of banking sector reforms in India. It notes the beneficial impact to the financial system consequent upon the reforms and highlights the current weaknesses in the banking system. Against this background, the paper identifies the emerging challenges and discusses...

The article traces the determinants of off-balance sheet activities in the Indian banking sector. Using data for the period 1996 to 2004, the article finds that not only regulatory factors, but also market forces captured by banks-specific characteristics and macro-economic conditions are at...

The analysis employs data on federal government-owned public enterprises (PSEs) since 1980s that encompasses the partial privatization programme to examine the likelihood of privatization. The results indicate that employment-intensive, high-paying but less profitable firms are more likely to be...

CEO compensation considerations have gained prominence in recent times, especially in the wake of the subprime turmoil. Using cross-section data on Indian manufacturing firms for 2007, the article explores the association between executive compensation and firm performance and concludes that pay...

Employing data for 1981--2009, this paper examines the factors influencing the volatility of state output, using India as a case study. The analysis appears to suggest that high income states exhibit relatively higher output volatility. At the state-level, the proximate determinants of a decline...

Purpose – Using data on Indian banks for 1997-2007, the purpose of this paper is to develop an index of banking fragility and subsequently examine the factors affecting the index. Design/methodology/approach – The author employs basic distributional assumptions to develop the index and...

Using data on Indian listed companies for 2005, the paper examines how firm ownership relates to auditor choice. More specifically, we test several hypotheses about the links between firm ownership, auditor relationships and earnings management. The results indicate that firms having high...

Using data on a sample of Indian firms from 1996-2006, we examine the effect of group affiliation on firm performance. After controlling for the differences in firm size, growth opportunities and leverage, the findings indicate that group affiliation exerts a salutary impact on firm performance,...