PurposeThis paper aims to examine the presence of momentum profit in the Indian stock market and seeks to explore the sources of momentum profit employing both risk based and behavioral models. R2, idiosyncratic volatility, and delay measures are employed in order to test behavioral models.Design/methodology/approachThe paper follows Jegadeesh and Timan's methodology in constructing momentum portfolios.FindingsThe study finds strong presence of momentum profits in India during 1995‐2006. The risk based models such as CAPM and Fama‐French fail to account for the phenomenon. Idiosyncratic risk exhibits a positive relation with momentum, lending support to behavioural factors as source of momentum phenomenon.Practical implicationsIn forming portfolios, selecting the stocks which have been winners in the last three and six months can help investors and fund mangers earn substantial profit.Originality/valueThe study employs behavioral variables to explain the momentum phenomenon. In the Indian context it is an unexplored area.
Advanced drug delivery system has now gained preference over the conventional drug delivery system. One such research is nanoemulsion which is famous among the researchers because of ease of formation, stability, clarity, increased absorption rate leading to increasing in bioavailability and potential to form a formulation with both lipophilic as well as the hydrophilic drug. Long lasting stability (up to years) and ability to encapsulate both lipophilic and hydrophilic drug has given this colloidal system a valuable position in drug delivery. This article contains information on components required for its fabrication, preparation methods and evaluation parameters along with its application in drug delivery and future aspects of this advanced drug delivery system.
The Capital Asset Pricing Model (CAPM) predicts that expected returns on securities are a positive linear function of their market ß s (betas) and market ß is adequate to describe the cross-section of expected returns. There is a controversy regarding the empirical validity of CAPM. This article reviews the content and scope of the model, examines the issues in the controversy, and provides an empirical assessment of the model in India. It notes that the evidence is not sufficient to drop the use of CAPM; one must, however, recognize and understand its limitations.
Corporate boards of directors play a central role in the corporate governance of modern companies. Post Enron's, sweeping regulatory changes were made, particularly regarding the role of directors in the SOX Act, 2002. Such far reaching reforms have not been witnessed in the past 70 years of corporate governance history (Byrenes, 2003). In India, in line with these regulations, Narayanamurthy Committee's report of SEBI came into force in 2006. This study examines the relationship between board size and firm valuations of companies listed in the BSE 100 index covering a five year period, 2004-05 to 2008-09, using the framework of panel data methodology. In the Indian context the results are in consonance with similar studies showing a positive impact of larger board sizes on firm valuations measured by Tobin's Q.
A predictable pattern in equity returns based on the calendar time is dubbed as calendar anomaly. The prevalence of calendar anomalies is considered evidence against the efficient market hypothesis. This article examines one of the most important calendar anomalies, the turn-of-the-month (TOM) effect, in 12 major Asia-Pacific markets during the period January 2000 to April 2015, using both parametric and non-parametric tests. Under investigation, 11 out of 12 markets exhibit significant TOM effects that are independent of the turn-of-the-year (TOY) effect. Moreover, these effects are not present during the period of financial crisis. The persistence of the TOM effect in these markets, even after a quarter of a century of its initial reporting, is a puzzle which needs an explanation.
We lack an overarching and unifying theory of corporate governance. The most popular theoretical framework, the agency theory, led to the evolution of the Anglo-Saxon model of corporate governance that is used widely to help the board of directors in curbing excessive executive power in the hands of management. However, with the blurring of the roles of the principal and the agent, the currently prevalent governance frameworks, based on this theory, have become self limiting and ineffective. Efforts to supplement the agency theory with alternative theoretical frameworks such as the stakeholder theory and the stewardship theory have, at times, tended to place the board of directors in conflict with their legal obligations that requires them to work in the interests of the shareholders. A governance model based on the Gandhian concept of trusteeship, while providing fresh insights, suffers from problems in implementation and remains, at best, an idealistic goal to aim for. We need new theoretical insights that will take us towards a comprehensive theory of governance. This paper seeks to revisit the discussion on the various theoretical frameworks for corporate governance and suggests that a new and different framework is required as the underlying theory for corporate governance. One such framework is based on viewing the �organization as an organism� with its primary focus on the organization�s longevity and growth and which seeks to maximize the long term strategic value for an organization.
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