Commitment to capital raising for venture capital funds in India: An Application of ARDL Model

Venture capitalists (VCs) áourish on the ability to add funds to their kitty across nations. Consequently, VCsíability to convince Limited Partners (LP), who are their primary source of Önancing, plays a critical role in the venture capital investment growth in any economy. However, it is not easy to rake in capital from an investor. LPs assess the market conditions carefully before making their capital available to the VCs. This paper examines the macro-economic variables that ináuence the supply of money to venture capital funds in emerging economies such as India from an LPs perspective. The empirical analysis using Autoregressive-Distributed Lag (ARDL) approach reveals that supply of capital to the VC funds in India is ináuenced by macro variables as well as past investment behaviours. Macro-variables such as GDP growth, interest rate spread, global liquidity, and ináation rate signiÖcantly ináuence the supply of capital to the VC funds in India. However, stock market liquidity does not ináuence the supply side of the venture capital investment. Our analysis reveals that VCsífund raising in India is highly ináuenced by their past investment relation with the LPs.

Governmental Announcements and Indian Stock Market: Evidence from Indian Manufacturing Sector

The Indian Manufacturing sector lags behind in contributing to economic devel- opment, as compared to its peer nations and therefore, to boost the sectorís contribution to the economy and to transform the economy into a cashless economy, the government of India had announced three major steps, Make in India, Demonetization and GST. In the present study using event study methodology, the immediate impact of the announcements on the stock of the companies from the Indian Manufacturing sector is examined and found that the announcement of the Make in India positively ináuenced the security returns. In contrast, negative impact on the security prices is witnessed on the announcement of Demonetization, whereas the GST implementation has no impact.

Bank Revolving Credit as a Channel of Monetary Policy Targeting Interest Rates

This paper investigates the implication of bank revolving credit in the form of credit card loans as a channel of monetary policy targeting the federal funds rate since 1980. Credit cards have become increasingly popular and a necessity for many transactions and purchases in the United States. The revolving credit nature of credit card loans makes them an instant tool for consumer loans that can facilitate consumption. Using instrumental variable and two-stage least squares (2SLS) methodology, we analyze the implication of credit card loans to modern monetary policy that targets interest rates.

The determinants of Financial Inclusion and Digital Financial Inclusion in India: A Comparative Study

The access to the Önancial services and digital financial services in India has not yet transformed into their frequent use. Therefore, the present paper provides a comparative analysis of the individual level determinants for few main indicators of the two main dimen- sions of Önancial inclusion and digital Önancial inclusion: access and use, based on binary probit regression analysis using World Bankís 2017 Global Findex data. The paper concludes that education and workforce participation are positively associated with the access to Ö- nancial services and digital financial services and also with the use of most of the financial services and digital financial services. Another interesting result is that being a woman and poor reduces the probability of using mobile banking but do not a§ect traditional banking.

Effect of Debt to Equity Ratio and Firm Size of Return on Assets on Manufacturing Company in Indonesia Stock Exchange

This study aims to analyze the e§ect of Debt to Equity Ratio (DER) and Firm Size on ProÖtability proxy with Return on Asset (ROA) in Manufacturing company on the Indonesian Stock Exchange 2017-2019. The sample population in this study contains Manufacturing companies listed on the Indonesia Stock Exchange The number of companies used in this study were 127 company samples. The research data is quantitative data obtained from the quarterly Önancial report of Manufacture Companies. Data analysis using simple linear analysis with 5% signiÖcance level which aims to obtain how the overall ináuence of the relationship between Debt to Equity Ratio (DER), Firm Size variable and Return on Asset (ROA). The results showed that the variable Debt to Equity Ratio (DER) has a negative and signiÖcant e§ect on Return on Asset (ROA) with a value t greater than 0.005 and Firm Size has a negative and signiÖcant e§ect on Return on Asset (ROA) with a value t greater than 0.005. High DER ratio can give a picture of the negative e§ect on proÖtability and High Firm Size ratio can give a picture of the negative e§ect on proÖtability of Manufacture Company.

Estimation of Correlation between Capital Markets. Analysing the case of Central and Eastern European markets in the context of the COVID-19 pandemic

This paper analyses the behaviour of the existing correlations between Central and Eastern Europeís markets, namely Romania, Czechia, Hungary, Poland, Slovenia,Slovakia and Bulgaria and the developed ones in Germany, France and United Kingdom.The study brings a new perspective on the subject by capturing two major stress periods the Global Financial Crisis and the Örst wave of the COVID-19 pandemic. By estimating a BEKK model, as well as Spearmanís rank correlation coe¢ cient and the Diebold and Yilmaz Spillover Index, the study Önds strong similarities between the analysed markets, with a general decreasing trend of the correlationsí level, indicating increasing beneÖts of diversiÖcation.

Domestic and Foreign Transmission of the Global Financial Crisis in the Real Economy. The Polish Situation

This paper studies the contagion process of the 2008 Global Financial Crisis through several important Polish economic sectors: chemical, construction, food, IT, media, oil & gas and telecommunication. The results show a signiÖcant di§erence between the response of these sectors to the crisis. Chemical, construction, media and oil and gas were a§ected, in di§erent degrees, by a domestic Önancial contagion. The food industry was ináuenced in a negligible degree by contagion, while the IT and telecommunication sectors showed a decrease of their co-movements with the Önancial sector, both foreign and domestic.

Corporate governance features among European Union countries – an exploratory analysis

This study investigates European Union countriesí di§erences and similarities referring to corporate governance treated as (1) an external tool to overcome the conáict of interest described by the agency theory, and as (2) a result of an institutional environment. We conduct a cluster analysis and uncover an increased cross-country heterogeneity. Our Öndings might be of interest to European capital market investors. Differentiating between low-level corporate governance countries and high-level corporate governance countries may also be of regulatorsí interests who should search for other means to improve country-level corporate governance practices.

Bank-Based versus Stock Market-Based Development in Nigeria: A Fully-Modified Ordinary Least Squares Approach

This study examines the relative e§ectiveness of bank-based and market-based Önancial development on the economic growth of Nigeria with data from 1989 to 2018 us- ing the Auto-Regressive Distributive Lag (ARDL) estimation technique. The study found that bank-based Önancial development exerts positive and signiÖcant ináuence on Nigeriaís economic performance while stock market-based, rather than contributing positively to the economic prosperity, was found to have an insigniÖcant negative e§ect. Using GDP per capita growth for sensitivity analysis also showed a somewhat similar result. From this Önd- ing, the study concludes that bank-based Önancial development drives growth in Nigeria more than market-based. The study therefore recommends intensive Önancial literacy and inclusion campaign to create awareness and bolster public conÖdence in the stock market and the Önancial sector.

Attention to the Election-Economics-Politics (EEP) Nexus in the Indian Stock Markets

Do investors pay attention to the election-economics-politics (EEP) nexus in the stock markets? In examining this research problem during the 17th Lok Sabha Election in India, this study explores the cointegrating relationships of itsí stock marketsí returns and realised trade volumes with investorsíselective attention to keywords in Google searches. The article uses the autoregressive distributed lag (ARDL) model. It reveals ingenious Öndings that investorsíattention dynamics at EEP nexus cointegrate either with the stock-marketsí returns or realised trade-volumes. It also identiÖes investorsí attention myopia, where the cointegration twists once the nexus pulls o§ its election or economic factor/s.