The regulatory provisions in India ensure that IPO investors are able to observe the participation levels of other subscribers prior to their own subscription decisions. This should reduce the information asymmetry between the foreign institutional (FIIs) and domestic institutional investors (DIIs). We argue that because of this setting we should observe less difference in their investment patterns and performance. Our results, however, show that (a) FIIs subscribe to IPOs more aggressively than DIIs; (b) DIIs have better IPO selection ability than FIIs; and (c) in the post-listing period, FIIs reduce their IPO holdings more extensively than DIIs. FIIs reduce their post-listing holdings especially in firms that are smaller, younger, have higher stock volatility while increasing on stocks with higher returns, indicating that FIIs chase hot markets. Overall, in spite of transparency-enhancing regulations, the investment patterns of FIIs and DIIs differ significantly
This study investigates the change in efficiency and productivity of banking industry during the period of 2007/08 to 2011/12 and analyzes the effects of various indicators on the efficiency of the twenty two commercial banks in Nepal. Malmquist Index is used as to measure the efficiency and productivity where as Tobit regression is used as to analyze the determinants of efficiency. Overall, the results show that the productivity change of commercial banks in Nepal has improved over the sample period and that the increase in productivity change in Nepalese commercial banks is due to the technical progress rather than efficiency components. It also reports that the decline in efficiency change is due to decline in both pure efficiency change and scale efficiency change. The Tobit regression model found positive relationship between debt to equity ratio and efficiency as well as between capital adequacy and efficiency. Further, profitable banks with lower leverage and higher capital adequacy ratio are found to be more efficient and bank loans seem to be more highly valued than alternative bank outputs i.e., investments and securities.
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