Purpose This paper aims to examine the determinants of the dividend policy of the construction companies in India. Design/methodology/approach Data from 2011 to 2016 (six years) of 45 listed construction companies in India are collected, and a strong balanced panel is created. Dividend per share is dependent variable, and profitability, unstable earnings, institutional holding, cash flow, tangibility, liquidity, growth opportunities, age of the firm, life cycle, leverage, size of firm and taxation are explanatory variables. The panel is tested for stationarity and finally fixed and random-effect panel regression model with robust estimation option is performed. Findings The random effect model is found fit with an R2 of 62 per cent, and profitability, life cycle and size of the firm show a significant positive effect on dividend payment. Cash flow shows a negative significant relationship, indicating the presence of agency problem. Rest of the variables indicated an insignificant relationship. Research limitations/implications The study is carried out on a small sample of 45 companies with data of only six years. Further, there may be behavioral and psychological factors that drive the decision to declare dividend. Those factors have not been considered in present study. Despite considerable efforts, the author could not find more studies specific to the construction sector. Hence, the variables identified in the present study are more generic, even though a few sector-specific studies have been included. Originality/value The dividend policy determinants for the construction sector in India are investigated, and a comprehensive model based on 12 explanatory variables is tested to find the drivers of dividend payout in Indian construction companies. From the investor’s point of view, the sector has immense potential in terms of dividend as well as capital appreciation. Therefore, the study can be useful to the investors to understand the drivers of dividend payout in the construction sector. It can also be crucial for companies to create an appropriate dividend policy so as to attract and retain investors. The study contributes significantly to the existing body of knowledge by recommending the salient drivers of dividend payout in the construction sector based on a comprehensive dataset and using robust methodology.
This paper investigates five leading equity market anomalies – size, value, momentum, profitability, and asset growth, for four Western European markets, namely, Germany, France, Italy and Spain, from January 2002 to March 2018. The study tests whether these anomalies reverse under different macro-economic uncertainty conditions, and evaluates if strategies based on time diversification can be formed using these equity market anomalies. Market anomalies were tested using four major asset pricing models – the Capital Asset Pricing Model, the Fama-French three-factor model, the Carhart model, and the Fama-French five-factor model. Macro-economic uncertainty was tested using two proxies, namely VIX and default premiums. Time diversified strategies were examined by estimating Sharpe ratios of combined portfolios formed by combining winner univariate portfolios. Value effect in Germany, Size effect in France and Profitability effect in Italy and Spain provide the highest unadjusted returns on long side strategies. No significant reversal of these anomalies was found under different macroeconomic uncertainties. Asset pricing tests show that CAPM works well for Spain and Italy, while Carhart’s model explains returns in Germany. The Fama-French five factor model does not seem to be a good descriptor of asset pricing for data. No suitable model for explaining asset returns is identified for France. Finally, it is observed that some of the equity market anomalies seem to be countercyclical and therefore provide time diversification opportunities. The study has implications for academicians, investors, and policy makers by providing insights for developing profitable investment strategies and highlighting the efficacy of alternative models as performance benchmarks.
Infrastructure development is a critical factor in boosting the economy. An increase in investment in infrastructure opens-up employment opportunities because of its backward and forward linkages. The changing demographics and environment will need the converged development of various infrastructure facilities in India. The government has promoted railways, roadways, ports, and civil aviation in recent decades, as evident from policy and programs. Even with the accelerated growth in infra projects in India, most of the infrastructure projects are delayed, primarily owing to regulatory approvals, land acquisition issues, shortage of skilled resources, ineffective dispute resolution mechanisms, and geological challenges. This paper highlights the prospects and progress of infrastructure projects along with issues and challenges.
Purpose The paper aims to identify the critical success factors (CSFs) at an individual level for real estate developers (REDs) in India. Design/methodology/approach Fifteen individual-level CSFs are identified from literature review. These CSFs are moderated through expert opinion, and they are customized for the real-estate sector. Five-point scale questionnaire is developed and furnished to REDs to understand the importance of these 15 CSFs. Fifty-six REDs responded to the survey. Using the responses from the survey, relative importance index is created for all 15 factors. These factors are also grouped in broad categories using exploratory factor analysis and the groups are further validated through confirmatory factor analysis. Findings The study finds that leadership quality, man-management skill, disputes resolution skill, ability to take risk and knowledge about construction and finance are the top five CSFs for REDs in India. The exploratory factor analysis resulted in five groups and they are named as “liaising with government,” “relationship management,” “knowledge management,” “skill management” and “ability.” The groups exhibit reasonable reliability and validity. Research limitations/implications Despite useful results, study being exploratory in nature is limited because of a small sample size. Despite best efforts, authors find reluctance from REDs to respond to the survey. Practical implications The findings of the study are important for REDs and success of their business. The business of REDs can improve if they exhibit leadership quality, man-management skill and disputes resolution skill. The ability of the developers to take risk and their knowledge about construction and finance can also be vital for the success of their business. Originality/value To the best of authors’ knowledge, this is the first attempt to identify CSFs for REDs in India.
Infrastructure development is a key building block towards enhancing domestic economic growth and sustaining the higher growth trajectory. Therefore, creating new and upgrading existing infrastructure will be critical to improve India’s global competitiveness. Nevertheless, financing infrastructure projects continues to remain the most difficult aspect to tackle with. The National Infrastructure Pipeline (NIP) envisages investing Rs. 100 trillion on infrastructure projects across various States during the five years up to 2025. The Government of India has recently launched a four-year National Monetisation Pipeline (NMP) worth an estimated Rs. 6 trillion, with an aim to unlock value of hitherto unutilized or underutilized public assets in the brownfield projects by engaging the private sector and to tap the operational efficiencies of private sector along with the management of existing physical infrastructure. In addition, this paper provides various perspectives on the asset monetization and its sustainability as a robust infrastructure financing tool.
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