Using a sample of Indian firms, we study the determinants of corporate cash holdings in an emerging economy. We study the excess and deficit cash holdings and assess the impact of leverage, accrual quality and working capital accruals on cash holdings. We find that after controlling for growth and size, leverage depends upon whether the firm holds excess or deficit cash. Levered firms with high profitability (measured via return on equity—ROE) hold less cash as compared to firms holding less than desired cash even if the profitability is high, and ample growth opportunities are available. We also find that while operating profit has no significant impact on cash holdings, volatility of sales does have a positive and significant impact. Firms having ready access to capital market (proxied by size and amount of leverage) are less likely to hold cash. Therefore, we argue that such firms can focus on value-generating activities without having to worry about liquidity. At the same time, smaller firms with good profitability (measured as return to equity) may also hold less cash as presented in this study.
India, has traditionally been involved in various corporate socially responsible (CSR) activities. This paper presents an empirical analysis of CSR activities of some selected public and private organization in India. The key objective of this analysis is to review the companies' CSR investment in sustainability, disclosure, governance, and CSR stakeholders. The Hypotheses development explains the positive significant relationship between CSR and firm performance. Then the methodology section explains sample selection and data source. Using these data, the CSR practices in selected public and private companies are evaluated based on the Global Reporting Initiative guidelines, and a comparative study of the impact of CSR practices on companies' profitability is conducted. The study also focuses on how CSR influences these companies' gross margins, as well as the correlation between environmental concerns and return on investment. The result of this study are appropriate for India's present scenario demonstrating that all companies are conducting CSR operations, but there is a substantial difference in the CSR disclosure practices of the selected firms. The private companies in India invests more in CSR but spend less on the environmental aspects whereas the public companies invest less in CSR but almost spend their entire CSR expenditure on the social and environmental aspects.
This article examines the level of cointegration of the weekly returns of Bombay Stock Exchange (BSE), the representative index of India, with those of other major Asian markets of China (Shanghai), Hong Kong (Hangseng), Japan (Nikkei) and Taiwan using the vector autoregression (VAR) for long-term dependencies and copulas for tail dependencies. A linear relationship is observed among all these markets, but the upper and lower tail dependencies of the BSE with Nikkei and Hangseng are found to be much stronger. The Clayton copula was used to study the lower tail dependency and the Gumbel copula for the upper tail dependencies of the returns. These results will be helpful for international portfolio diversification and the investors may find India, Japan and Hong Kong markets attractive for such diversifications. In addition, the GARCH(1, 1) methodology was also employed for studying the long-term variances of each of the market and it is observed that the weekly volatility of Nikkei is much higher as compared to other markets, while that of the BSE is moderate. Apart from this, all these markets show excess kurtosis, pointing towards heavy-tailedness of the return series apart from the non-normality. The VAR results show that BSE weekly returns are affected by up to two lags of the Hong Kong stock market (HANG). At the same time, the NIKKEI and the SHANG are affected by up to 1 week and 2 week lags of the BSE, respectively.
PurposeThe purpose of this study is to provide a new way to optimize a portfolio and to show that combining the Hurst exponent and wavelet analysis may help to increase portfolio returns.Design/methodology/approachThe authors use the Hurst exponent and wavelet analysis to study the long-term dependencies between sovereign bonds and sectoral indices of India. The authors further construct and evaluate the performance of three portfolios constructed on the basis of Hurst standard deviation (SD) – global minimum variance (GMV), most diversified portfolio (MDP) and equal risk contribution (ERC).FindingsThe authors find that an ERC portfolio generates positive superior return as compared other two. Since our sample includes periods of two crisis – post-2007 financial crisis and the ongoing pandemic, this study reveals that combining government bond with equities and gold provides a higher returns when the portfolios are constructed using the risk exposures of each asset in the overall portfolio risk.Practical implicationsThe findings provide guidance to portfolio managers by helping them to select assets using the Hurst approach and wavelet analysis thereby increasing the portfolio returns.Originality/valueIn this study, the authors use a combination of Hurst exponent and wavelet analysis to understand the long-term dependencies among various assets and provide a new methodology to optimize a portfolio. As far as the authors’ knowledge, no study in the past has attempted to provide a joint framework for portfolio optimization and therefore this study is the first to apply this methodology.
Corporate social responsibility (CSR) represents a form of international private business self-regulation that contributes to the social aims of a charitable, activist, or philanthropic nature through helping ethically based practices. The benefits from CSR like generating better public image, enhance in community support, enhance in market share, enhance in the satisfaction of the consumer, enhance in the exports, offering better quality services and products, and enhance in the productivity is not considered as the perception level consumers. This paper analyzes the effect of CSR activities on the fast moving consumer goods (FMCG) industries on the basis of the retention of the consumers of FMCG products. Initially, a questionnaire is prepared that consists of five categories. Each category is composed of more than ten questions. The information related to the questionnaire is obtained in the view of the professional students from Odisha. The customers are requested to fill the exact information as much as possible. Next, a higher-order statistical analysis is considered for realizing the behaviour of the categories. Additionally, the usage of deep learning called Optimized RNN (O-RNN) is used for predicting the customer retention in maintaining the CSR on FMCG industries. The improvement in the traditional RNN is done by optimizing the hidden neurons by the improved form of Sea Lion Optimization Algorithm (slno) called Modified slno (M-slno) with the intention of minimizing the error among the actual and the predicted outcome, hence it is called as O-RNN. The retention of the customers regarding the effect of CSR activities on FMCG companies and the benefits from CSR is investigated using the O-RNN prediction analysis against several traditional deep learning models as well as different statistical measures.
CSR is a business strategy that works in a world where brand value and reputation are increasingly seen as an organization's most valuable asset. It can build the loyalty and trust that ensure a bright sustainable future. In our complicated, international society, partnerships have become grade by grade apparent. these agencies aren't made a decision on their effects but on their conduct as properly. therefore CSR have to have become a essential piece of each a part of commercial enterprise lifestyles and this acquires improvement budgetary execution, builds profitability, higher danger and emergency the board, increased specialist obligation, extraordinary individuals of the own family with government and networks, upgraded brand clearly well worth and notoriety this brings to lengthy haul staying power and affordable development to the corporation. primarily based on these, this investigation is under taken to recognise whether or now not CSR exercising of Nalco has affected on the long haul staying energy and supportable development of the company, the exam implemented organized ballot and assembly method to collect the data from the respondents. The exam has applied chi rectangular method to check theories and both the non-obligatory idea are mentioned and check uncovers that additives of CSR exercise of the agency effects on lengthy haul patience and maintainable improvement of the enterprise. as a result, there may be a requirement for NALCO prepared in Odisha to improve the CSR workout and revealing it usually.
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