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Open Access
Article
Publication date: 24 May 2022

Sudarshan Maity and Tarak Nath Sahu

Both branch and automated teller machine (ATM) are playing a crucial role in banking coverage expansion in India. People prefer to go to an ATM for withdrawal of money…

Abstract

Purpose

Both branch and automated teller machine (ATM) are playing a crucial role in banking coverage expansion in India. People prefer to go to an ATM for withdrawal of money rather waiting in a queue for hours at a branch. Without the existence of a full-fledged brick-and-mortar branch, ATM also plays an important role by providing basic banking services. In India, a significant part of the population is excluded from banking access. The present study aims to investigate how the branch and ATM penetration influence financial inclusion.

Design/methodology/approach

The study covers the period from 2008–2009 to 2019–2020. With the application of Welch's t-test a comparative study is being conducted between branch and ATM. Further, with the application of regression analysis, the study analyses how the branch and ATM network expansion influence financial inclusion.

Findings

Though in recent times customers prefers to visit an ATM and its growth rate is higher than branches, the study found no significant differences between the growth of branch and ATM. Further, results of regression show both branches and ATMs have significant impacts on financial inclusion.

Originality/value

In micro concept both have a common role in respect of service provided to customers. While in macro concept a list of specific services can be provided through branch level only. This study has a significant role, considering the importance of branches or ATMs and cost of installing a physical branch.

Details

Rajagiri Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0972-9968

Keywords

Open Access
Article
Publication date: 25 October 2021

Sudarshan Maity and Tarak Nath Sahu

Access to finance, especially by the poor and marginalized section of the population, is a prerequisite for creating employment opportunities, economic growth, poverty…

Abstract

Purpose

Access to finance, especially by the poor and marginalized section of the population, is a prerequisite for creating employment opportunities, economic growth, poverty reduction and social cohesion. Access to finance makes transactions quicker, cheaper and safer. Most people around the world having an account in a formal financial institution serve as an entry point into formal financial sector. This study aims to analyze the status of financial inclusion in Assam with respect to demographic penetration, geographic penetration and usage ratio, i.e. credit–deposit ratio.

Design/methodology/approach

The study covers a period of 12 years from 2007–08 to 2018–19. Both the parametric and non-parametric statistical tools have been used to analyze the various dimensions of financial inclusion.

Findings

The study clearly indicates that there is a significant difference between Assam and aggregate India in financial inclusion and the status of Assam is somewhat lower as compared to the aggregate financial inclusion status of India. To achieve a satisfactory level of financial inclusion, it is not enough to open a bank account for the excluded people, but banks must look at flexibility and timeliness in services to offer a complete package to this segment of the population.

Originality/value

The study is a significant attempt to meet the shortcomings and improve banking coverage for achieving financial inclusion.

Details

Vilakshan - XIMB Journal of Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0973-1954

Keywords

Open Access
Article
Publication date: 4 May 2022

Premananda Sethi, Tarak Nath Sahu and Sudarshan Maity

This study aims to examine the influence of corporate governance variables on firm performance and also to find out whether the corporate governance mechanism is capable…

Abstract

Purpose

This study aims to examine the influence of corporate governance variables on firm performance and also to find out whether the corporate governance mechanism is capable of mitigating the vertical agency crisis. Here the researcher uses corporate governance mechanisms such as board meeting frequency, board independence, percentage of non-executive directors, percentage of woman directors on board and the board size to measure the firm performance and, at the same time, tries to mitigate the agency crisis, which is measured through return on asset and asset turnover ratio.

Design/methodology/approach

The present study considers period from 2009 to 2020 with data corresponding to a panel of 271 non-financial firms listed in 500 NSE index, India. The study introduces a panel regression model to analyze the data collected from the sample firms.

Findings

The study detects a positive as well as a statistically significant relationship between board size and vertical agency cost. The study also observes a negative relationship between board independence and agency cost. Further, the study finds a positive relationship between corporate governance variables and firm performance, though it is non-significant.

Originality/value

As the study progresses, the study detects a negative relationship between non-executive directors and agency costs. This study tries to give policy prescription to the corporate policymaker regarding various measures to be taken by the firm for the improvement of firm performance and reduction of owner and manager conflict inside the company. The study fills the literature gap by revealing a significant relationship between corporate governance, vertical agency crisis and firm performance.

Details

Asian Journal of Economics and Banking, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2615-9821

Keywords

Open Access
Article
Publication date: 4 August 2021

Ritu Pareek, Tarak Nath Sahu and Arindam Gupta

This study aims to attempt to evaluate and establish the relationship between gender diversity (GD) on the board and corporate sustainability performance.

Abstract

Purpose

This study aims to attempt to evaluate and establish the relationship between gender diversity (GD) on the board and corporate sustainability performance.

Design/methodology/approach

A sample of 212 non-financial companies listed on the National Stock Exchange has been considered for a period of 2013–2014 to 2018–2019. For the purpose of the analysis, this study has conducted the static panel data model analysis and also some diagnostics tests to arrive at robust results.

Findings

This study, from its analysis, interprets that GD or the proportion of women directors in the company plays a significant role in the decisions related to the sustainability performance of the company. Alongside GD, the profitability of the company, measured in terms of Tobin’s Q, and firm size are also seen to have a positive impact on the sustainability performance of the company.

Practical implications

This study from its findings contributes to the existing works of literature by highlighting the impact of GD on the sustainability performance of the firm. This study thus recommends the recruitment of an ample number of females in the top-notch positions of the board to create a gender-diverse management team to reap the benefits of leadership styles of both genders.

Originality/value

Very few studies have been conducted on the dynamics of women’s directorship, especially in an emerging economy like India. This study thus tries to fill this important gap in the literature by examining the relationship between board GD and sustainability performance of Indian firms.

Details

Vilakshan - XIMB Journal of Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0973-1954

Keywords

Open Access
Article
Publication date: 16 July 2021

Sudarshan Maity and Tarak Nath Sahu

Bank mobilizes savings and transforms it into credit for investments in various sectors, which helps the economy running. The purpose of this paper is to examine the…

Abstract

Purpose

Bank mobilizes savings and transforms it into credit for investments in various sectors, which helps the economy running. The purpose of this paper is to examine the efficiency of three bank groups in India with data spanning from 2009–2010 to 2018–2019.

Design/methodology/approach

The study uses data envelopment analysis for measuring the efficiency of the selected banks. It measures the efficiency both from the revenue dimension and from the supply-side dimension of financial inclusion.

Findings

The study finds that foreign banks on average are working efficiently far better than the public-sector and private-sector banks. It indicates that foreign banks in India are operating at 92.53% efficiency level, whereas private- and public-sector banks are operating at 90.20 and 86.04% efficiency levels, respectively. Further, the result of the Friedman test reveals that there is no significant difference in efficiency scores amongst these three bank groups. As major challenges, non-performing assets of the banking industry to be reduced by 15% as radial and 53.18% as slack.

Originality/value

One of the notable innovativeness of this study is that, unlike most of the previous studies that are mostly selected few banks and specific group, the present study may place itself as a unique inquiry in the domain of technical efficiency in macro concept by considering three major bank groups operating in India. An important contribution of the study is the classification of reasons behind the inefficiency, i.e. managerial or inappropriate scale size and further projections of input factors for the same level of output.

Details

Asian Journal of Economics and Banking, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2615-9821

Keywords

Article
Publication date: 17 August 2021

Ritu Pareek and Tarak Nath Sahu

Taking hints from the lacunas in the field of ownership structure and corporate social responsibility (CSR) performance of the firms in India, especially when the…

Abstract

Purpose

Taking hints from the lacunas in the field of ownership structure and corporate social responsibility (CSR) performance of the firms in India, especially when the moderating effect of certain corporate governance mechanism comes into play, this study aims to attempt to fulfill the gap by exploring the ownership structure of the firm (i.e. foreign ownership, institutional ownership and government ownership) and the CSR performance of the firm, when moderated by board independence of the firm. In an additional analysis, the study explores the non-linear effect of foreign ownership structure on the CSR performance in the Indian context.

Design/methodology/approach

The study incorporates a strongly balanced panel data set of 280 non-financial National Stock Exchange 500 listed firms for the study period of 2013–2019. The study uses both static and Arellano–Bond dynamic panel model under generalized method of moments (GMMs) framework to establish the relationship between the studied variables.

Findings

The study acknowledges a positive impact of the foreign investors in the CSR performance of Indian firms with a higher proportion of independent directors on the board. The study further finds a contrarian role of government ownership in Indian context among the sampled firms. The study also in its extended analysis finds a non-linear inverted U-shaped relationship between foreign ownership (FO) and the CSR performance, which shows that FO positively impacts the CSR performance until a threshold level of 34% after which the curve starts declining.

Practical implications

One of the major implications this study provides for the corporate policymakers is that the firms with a string penchant for philanthropic activities such as CSR should be concerned with attracting more foreign investors in their shareholding. Also, a higher proportion of independent directors on the board boost the engagement of the firm in CSR works.

Originality/value

The moderating effect of board independence in the ownership structure–CSR relationship attempted by this study is a rare attempt in a developing economy, such as India, and offers a fresh dimension to the study. Also, the non-linearity relationship between FO and the CSR performance and the threshold level providing the twofold effect of the variables is an innovative research attempt, especially in regard to a developing country like India.

Details

Corporate Governance: The International Journal of Business in Society, vol. 22 no. 1
Type: Research Article
ISSN: 1472-0701

Keywords

Open Access
Article
Publication date: 6 May 2020

Shantanu Ghosh and Tarak Nath Sahu

This study aims to measure and further compare the countries in terms of the achievement in the degree of financial inclusion over the study period and between income…

Abstract

Purpose

This study aims to measure and further compare the countries in terms of the achievement in the degree of financial inclusion over the study period and between income groups considering 26 nations from Asia for the period 2013-2017.

Design/methodology/approach

While measuring the degree of financial inclusion, the study prepares an index using weighted arithmetic mean and the inverse of the Euclidean distance method. Further, comparison between the study period and between the income groups has been made using the dependent samples t-test as well as the Wilcoxon signed-rank test and independent samples t-test, respectively.

Findings

The study extends empirical insights by laying out the ranks for the countries considered for each of the study periods individually as well as in terms of mean financial inclusion scores for the study period. Further, comparison in terms of mean financial inclusion scores shows significant differences between the income groups, whereas the differences between the study periods turn out to be non-significant.

Research limitations/implications

Less availability of intended variables over time restricts the predictive capability of sketching the phenomena in a true sense and claims further an exhaustive research to pursue in the future.

Practical implications

With the declining trend except for 2016-2017 in the achievement of financial inclusion scores over time, the study suggests emphasizing the initiatives targeted to include the excluded within the ambit of the formal financial system, which somehow seems unstable.

Originality/value

The novelty of the study lies in the portrayal of a measure that seems representative of the scale for development with deeper insight.

Details

Rajagiri Management Journal, vol. 14 no. 1
Type: Research Article
ISSN: 0972-9968

Keywords

Abstract

Details

Investment Behaviour
Type: Book
ISBN: 978-1-78756-280-6

Abstract

Details

Governance-Led Corporate Performance: Theory and Practice
Type: Book
ISBN: 978-1-78973-847-6

Open Access
Article
Publication date: 10 February 2021

Megha Agarwalla, Tarak Nath Sahu and Shib Sankar Jana

This study aims to establish the dynamic relationship between international crude oil prices and Indian stock prices represented by the Bombay Stock Exchange (BSE) energy index.

1016

Abstract

Purpose

This study aims to establish the dynamic relationship between international crude oil prices and Indian stock prices represented by the Bombay Stock Exchange (BSE) energy index.

Design/methodology/approach

Using Johansen’s cointegration test, vector error correction (VEC) model, impulse response function and variance decomposition test the study tries to ascertain the short-term and long-term dynamic association between the oil price shock and the movement of stock price and Granger causality test is applied to find out the nature of causality.

Findings

Considering vector autoregression estimation, the present study analyzes the relationship between the variables and tries to make a valid conclusion. The result of the co-integration test exhibits the presence of a long-term association between these two macro-economic variables during the period under study. Also, in the short-run VEC Granger causality result reveals that the movement of international crude oil price significantly influences the Indian stock price.

Research limitations/implications

To get a more robust result the study can be further extended by taking a longer time period with data of shorter time-frequency such as daily or weekly and further by using more sophisticated econometric and statistical tools. Further, the study can be extended to firm-level investigation considering the forward trading concentration with the Indian oil basket.

Social implications

In today’s globalized era, forecasting of share price movement helps investors in predicting the market and invest accordingly. Through this liquidity of the markets enhance and markets become more active in the global arena.

Originality/value

This study represents fresh findings in the changing time period the linkage between crude oil prices and stock prices which are of value to the academicians, researchers, policymakers, investors, market regulators, etc.

Details

Vilakshan - XIMB Journal of Management, vol. 18 no. 2
Type: Research Article
ISSN: 0973-1954

Keywords

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