Banking Sector Development and Economic Growth in India

Tripathy, Sasikanta; Pradhan, Rudra P.

doi:10.1177/0972150914543421

Cited by 12 publications

(9 citation statements)

References 20 publications

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“…Similarly, the firm size is also positively associated with firm value, and this is in line with the studies of Rovolis and Feidakis (2014). Further, the association of tangibility and firm value is positive and significant at the one percent level of significance, and this supports the agency cost theory, and is in support to the studies of Rajan and Zingales (1995) and Tripathy and Pradhan (2014). Profitability is negatively associated with the firm value, since the coefficient is significant and negative.…”

Section: Resultssupporting

confidence: 84%

“…In general, a positive effect of (past) profitability on efficiency has been expected. More profitable firms are generally better managed and thus are expected to be more efficient (Ebaid, 2009;Saeedi & Mahmoodi, 2011, Tripathy & Pradhan, 2014Frank & Goyal, 2003). On the other hand, leverage measured by long-term debt to stockholders' equity has been considered as the dependent variable.…”

Section: Methodsmentioning

confidence: 99%

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Leverage and firm performance: Empirical evidence from Indian food processing industry

Tripathy¹,

Shaik²

2020

10.5267/j.msl

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The current study examines the association between financial performance and leverage for 56 food processing firms listed in BSE over the period 2000-2018 using pooled OLS, fixed effects, and random effects models. The results indicate that leverage was significantly and positively associated with the firm performance. The results obtained are thus robust across the estimation methods. The pecking order theory and the static tradeoff theory, both seem to explain Indian food processing firms' decisions among the alternative theories of capital structure.

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Section: Resultssupporting

confidence: 84%

Section: Methodsmentioning

confidence: 99%

Leverage and firm performance: Empirical evidence from Indian food processing industry

Tripathy¹,

Shaik²

2020

10.5267/j.msl

Self Cite

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“…A survey of literature has shown that existing studies are biased towards the use of money market-based indicators of which domestic credit to the private sector has been used in all existing studies For instance, Shahbaz and Rahman (2012) used the conventional measures of financial development, while Tripathy and Pradhan (2014) limited their measure to banking sector only. However, Yartey and Adjasi (2007) based their study solely on capital market indicators for 19 exchanges in SSA.…”

Section: Methodsmentioning

confidence: 99%

More Finance or Better Finance in Feldstein–Horioka Puzzle: Evidence from SSA Countries

Raheem

2017

Global Business Review

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This study examined the role of financial development in the Feldstein–Horioka (FH) puzzle for 31 sub-Saharan African (SSA) countries for the period 1999–2011. Unlike previous studies that used traditional measures of finance (‘more finance’), we advocated for superior measures of financial development (‘better finance’). The baseline regression shows that ‘more finance’ increases the FH estimate, while ‘better finance’ serves as drag to the same retention coefficients. The reverse of these results was obtained when the baseline regression was extended to account for the interaction between savings and proxies for finance. The results obtained show a considerable improvement in the saving retention coefficient when ‘better finance’ was used as against ‘more finance’. This concretely reinforces the superior role of ‘better finance’ in mobilizing, distributing and utilizing savings for investment within these economies. Based on these findings, domestic resource mobilization can be a veritable vehicle for plugging the substantial investment gap in these SSA economies. However, such policy thrust must be complemented by far-reaching financial reforms.

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“…The study of Tripathy & Pradhan (2014) analyzed the short-run and long-run relationship, and causal relationships between banking sector development and economic growth of India from 1960 to 2011 that covered 52 years of post-independence for the country. There is strong evidence than development in the banking sector cause economic growth in the economy of India (Tripathy & Pradhan, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

Growth of Universal Banking in the Philippines: A Correlational Study with Economic Growth

Dayag

2019

IJFBS

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Banks are believed to instrumental to economic growth because it provides the financial backbone needed to spur economic development through business creation and expansion. A healthy and resilient banking sector signals economic growth and development that is sustainable. The efficient transfer of funds from those that has surplus of them towards those that need them has been made possible due to the intermediation of banks. In the Philippines, banking formally started in 1851 with the establishment of the Bank of the Philippine Islands, which up to this day, stands to be one of the country’s biggest and most stable universal bank. This study analyzes how universal banks grew over the years, and determines whether a correlation exists between universal bank growth and economic growth, using the variable of GDP growth rate as proxy for economic growth. The study showed that at the most recent periods, universal banks’ ROE and ROA are negatively correlated with GDP growth rate. Key words: Universal banks, History of banking, Economic growth of the Philippines, GDP growth rate

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Banking Sector Development and Economic Growth in India

Cited by 12 publications

References 20 publications

Leverage and firm performance: Empirical evidence from Indian food processing industry

Leverage and firm performance: Empirical evidence from Indian food processing industry

More Finance or Better Finance in Feldstein–Horioka Puzzle: Evidence from SSA Countries

Growth of Universal Banking in the Philippines: A Correlational Study with Economic Growth

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