A Comparative Performance Analysis of Sustainability Themed Indices in India: Markov Regime Switching Approach

2021 ◽  
pp. 231971452110528
Author(s):  
Deepmala Jasuja ◽  
Jaya Mamta Prosad ◽  
Neeraj Nautiyal
Keyword(s):  
Performance Analysis ◽  
Financial Performance ◽  
Regime Switching ◽  
Superior Performance ◽  
Socially Responsible ◽  
Time Duration ◽  
Comparative Performance ◽  
Markov Regime Switching ◽  
Significant Difference ◽  
Sustainability Indices

Sustainability Indices serve as a benchmark for the companies screened for their superior performance on environmental, social and governance (ESG) parameters. This article intends to compare the overall and regime-specific financial performance of socially responsible indices of the National Stock Exchange, Nifty100 ESG and Nifty100 ESG Enhanced with Nifty50 (representing the market) from 1 April 2012 to 31 March 2020. Overall comparative performance analysis of these indices is conducted using risk-adjusted return measures and volatility has been captured through the TGARCH model. Further, time duration has been decomposed into regimes using Markov Regime Switching Model and the comparison of indices has been undertaken in both regimes. Our findings suggest that there is no significant difference between the return performance of sustainability indices and market benchmark index in single time duration and sustainability indices performing marginally better in both the regimes identified. This implies that socially responsible investments in India are providing reasonable returns to investors without comprising non-financial objectives. For corporates, it is a win–win situation to focus on ESG parameters to attract capital from investors and deliver better corporate financial performance and hence increasing the potential of growth of socially responsible investing in India.

scholarly journals Passive ESG Portfolio Management—The Benchmark Strategy for Socially Responsible Investors

2021 ◽  
Vol 13 (16) ◽  
pp. 9388
Author(s):  
Julian Amon ◽  
Margarethe Rammerstorfer ◽  
Karl Weinmayer
Keyword(s):  
Financial Performance ◽  
Portfolio Management ◽  
Asset Allocation ◽  
Factor Model ◽  
Five Factor Model ◽  
Strong Support ◽  
Socially Responsible ◽  
A Value ◽  
Significant Difference ◽  
The Impact

In this article, we investigate the notion of doing well while doing good from the perspective of passive portfolio strategies. We analyze a number of asset allocation strategies based on ESG-weighting and compare their financial and ESG performance for the US and Europe. We find no significant difference in the financial performance but superior ESG performance of ESG-based strategies. It can be concluded that, compared to a naive strategy, socially responsible investors are willing to pay a small premium for the impact of the portfolio via transaction costs when rebalancing the portfolio according to their preferences for social responsibility. In addition, when comparing the ESG-based strategies to a value-weighted strategy, we observe no significant difference in ESG performance but a high degree of significance in the superior financial performance of the ESG-based strategy. We also analyze the strategies with regards to the factor loadings given by the Fama–French five-factor model and a sixth factor denoted GMB (Good minus Bad) and find significant differences across the regions and strategies. Overall, the results show strong support of ESG-based strategies being preferred by socially responsible investors but also suggest that such strategies might be preferred by conventional investors looking for a passively managed alternative compared to a value-weighted index. Furthermore, it seems that such a strategy might be a more adequate benchmark for active SRI funds.

scholarly journals Financial Performance Analysis of SMEs Before and After Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX)

2018 ◽  
Vol 4 (2) ◽  
pp. 87
Author(s):  
Budi Wahyono
Keyword(s):  
Performance Analysis ◽  
Financial Performance ◽  
Initial Public Offering ◽  
Stock Exchange ◽  
T Test ◽  
Paired Sample ◽  
Significant Difference ◽  
Before And After ◽  
And Performance ◽  
Public Offering

SME funding needs have not been fully met. IPO is one of the efforts that can be done by SMEs to meet these funding needs. However, it is not yet known whether the financial performance of SMEs will increase after conducting an IPO. This study aims to analyze the financial performance of SMEs before and after the IPO. The sample of this study is SMEs that listed on the IDX in 2017, which is as many as five SMEs. SME financial performance is measured through three SME financial ratios, namely liquidity, solvency, and profitability. The paired sample t-test was used to compare the financial performance of SMEs before and after the IPO. The results showed that there is no significant difference in the financial performance of SMEs before and after the IPO. The results of this study provide recommendations for further research related to the valuation and performance of SME IPOs.

scholarly journals The case for the rope-pump in Africa: A comparative performance analysis

2006 ◽  
Vol 4 (4) ◽  
pp. 499-510 ◽  
Author(s):  
P. A. Harvey ◽  
T. Drouin
Keyword(s):  
Water Quality ◽  
Performance Analysis ◽  
Sub Saharan Africa ◽  
Northern Ghana ◽  
Technology Choice ◽  
Water Supplies ◽  
Comparative Performance ◽  
Significant Difference ◽  
The Impact ◽  
Rope Pump

The conventional handpump is the most popular technology choice for improved potable water supplies in rural sub-Saharan Africa. To date, however, it has failed to deliver satisfactory levels of sustainability, largely due to inadequate maintenance capacity. An alternative option to standardised imported handpumps is the locally manufactured rope-pump, which is considerably cheaper and easier to maintain but has been rejected in the past due to fears of impaired water quality. This paper presents the key aspects of a study in northern Ghana which compared the performance of rope-pumps with that of conventional handpumps, to determine whether or not the rope-pump provides a viable alternative for community water supplies across the sub-continent. User interviews, sanitary surveys, water quality analyses and technical performance measurements were used to develop a comparative performance analysis for the two pump types. The findings of the study indicated that the rope-pump out-performed the conventional handpump on the majority of counts and that, contrary to widespread perceptions, there was no significant difference between pump types with respect to the impact on microbiological water quality. Consequently, the rope-pump provides a significant technological opportunity to improve water supply sustainability in Africa.

PERBEDAAN FINANCIAL PERFORMANCE PASCA SECONDARY OFFERINGS

Wahana ◽  
2019 ◽  
Vol 22 (1) ◽  
pp. 41-49
Author(s):  
Djaja Perdana ◽  
Herbowo Herbowo
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Poor Performance ◽  
Rank Test ◽  
Growth Ratio ◽  
Significant Difference ◽  
Before And After ◽  
Signed Rank Test ◽  
Asset Turnover

This study aims to examine the differences in corporate financial performance before and after secondary offerings. The financial performance is proxied by WCR, DER, Solvency, ROA, ROE, Asset Turnover (ATO) and Growth ratio which representing the value of liquidity, financing, activity, performance and growth of the firm. The study involved 67 samples of the companies listed on the Indonesia Stock Exchange conducting secondary offerings during 2008-2013 period and selected through purposive random sampling method and using Financial Statement data from 2005-2016 period. Hypothesis test is performed using Wilcoxon Signed Rank test. The results of this study indicate that there is no significant difference in the ratio of Solvency, ROA and ROE between before and after secondary offerings, but there are significant differences in the ratio of WCR, DER, Asset Turnover and Growth. WCR ratio after secondary offerings increased, while DER ratio after secondary offerings decreased, the condition of both ratios showed better performance. While the indication of poor performance seen in decreasing asset turnover ratio and growth ratio.Keywords : agency theory, financial performance, secondary offerings

ANALISIS KINERJA KEUANGAN PERUSAHAAN PROPERTI YANG TERDAFTAR DI BEI SEBELUM DAN SESUDAH KEBIJAKAN LOAN TO VALUE

2019 ◽  
Vol 4 (1) ◽  
pp. 79-90
Author(s):  
Ghaniy Ridha Prima ◽  
Hermanto Siregar ◽  
Ferry Syarifuddin
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Stock Exchange ◽  
Sample Selection ◽  
Test Analysis ◽  
Asset Return ◽  
Return On Equity ◽  
Analysis Technique ◽  
Significant Difference ◽  
Before And After

The purpose of this study is to provide empirical evidence of the effects of the Loan to Value (LTV) policy on the financial performance of property and real estate companies listed on the Indonesia Stock Exchange (IDX). The sample selection uses a purposive sampling method of 42 property and real estate companies that meet the criteria. The research period is divided into 2 namely before the Loan to Value policy (2013-2014) and after the Loan to Value policy (2016-2017) with the Paired Sample t Test analysis technique. The test results show if the current ratio, Return on Asset, Return on Equity and Debt to Asset have significant differences between before and after the LTV policy is applied. While the fast ratio, cash ratio, net profit margin and Debt to Equity did not show a significant difference. Keywords: Financial Performance, Loan to Value, Property and Real Estate, Profitability Ratio, Liquidity Ratio, Solvability Ratio.

Financial Performance of ECIL, Hyderabad – An Analysis

2013 ◽  
Vol 3 (2) ◽  
Author(s):  
N. Jyothi ◽  
Dr. T. Satyanarayana Chary
Keyword(s):  
Public Sector ◽  
Performance Analysis ◽  
Private Sector ◽  
Financial Performance ◽  
Business Environment ◽  
Present Position ◽  
Short Term ◽  
Comprehensive Manner

Financial performance of individual organizations differ very significantly, however, the performance is distinguishable between public sector companies and private sector companies as their nature and size of investment and business environment is different . The ECIL is a very vast growing company which requires additional funds on a regular basis, whether internal or external. Particularly, the company needs both long term and short-term finances in view of its present position and enormous scope for improvement in the services provided. The present paper is a modest attempt to discuss the financial performance analysis of ECIL, Hyderabad in terms operating profits, capital employed ratios and turnover in a comprehensive manner over a period of 10 years.

Sign in / Sign up

Export Citation Format

Share Document