Financial Innovation and Banks Performance: An empirical analysis of Indian Commercial Banks

Banerjee, Rilina Basu; Das, Simontini; Bhattacharya, Trisha

doi:10.1504/ijbir.2021.10039744

Cited by 2 publications

(2 citation statements)

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“…This aligns with the research (Parwati & Sudiartha, 2016), which emphasizes the adverse influence of heightened debt levels on investor interest and stock returns. However, contrary to this study, other research conducted by Allozi & Obeidat (2016) and Banerjee et al (2016) detected a significant negative effect of capital structure on stock returns.…”

Section: 7 Effect Of Capital Structure On Stock Returnscontrasting

confidence: 99%

Capital Structure's Role in Shaping Stock Return Dynamics

Budi Satoto

2024

jbmp

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This study examines the intricate relationships among capital structure, current ratio, return on assets (ROA), long-term debt-to-equity ratio, and stock returns within the property and real estate sector, utilizing a sample of 16 companies. Employing Structural Equation Modeling (SEM), capital structure is introduced as a mediating variable to elucidate its role in the association between the investigated financial metrics and stock returns. Results indicate that neither the current ratio nor ROA significantly influences stock returns, while the long-term debt-to-equity ratio negatively impacts capital structure. Surprisingly, the current ratio exhibits a positive effect on stock returns, while the long-term debt-to-equity ratio shows no significant impact. Notably, capital structure emerges as a positive determinant of stock returns. This study provides a novel perspective by introducing capital structure as a mediator, contributing to the existing body of knowledge. Practical implications suggest that property and real estate investors should consider financial ratios alongside external factors like exchange rates and economic conditions when making investment decisions. However, limitations associated with the study's focus on IDX-listed companies in this sector are acknowledged, necessitating careful interpretation of the findings.

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Section: 7 Effect Of Capital Structure On Stock Returnscontrasting

confidence: 99%

Capital Structure's Role in Shaping Stock Return Dynamics

Budi Satoto

2024

jbmp

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“…The central argument behind the supply-led hypothesis is that financial deepening is the decisive cause of economic growth. It believes that the optimal allocation of resources is the result of the development of the financial sector (Banerjee & Ghosh, 1998). The supply-led hypothesis shows that the causal relationship flows from finance to economic growth, and economic growth has no feedback response.…”

Section: Article Historymentioning

confidence: 99%

Medium Small Micro Enterprise (MSME) Development and Economic Growth: Causality Analysis

Jalunggono

Sugiharti²,

Islami³

et al. 2023

OJEP

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As a business sector with a fairly large contribution to national output, government support for Micro, Small, Medium Enterprises (MSMEs) is increasingly being increased, even though the ratio of MSME credit to total national credit is still very small. Capital difficulties are a classic problem faced by MSMEs, but the high growth of MSMEs is a gap that shows the resilience of MSMEs. Therefore, this study wants to analyze whether the existence of MSMEs encourages economic growth, or vice versa, economic growth must be boosted to increase MSMEs. This study investigates the causal relationship and long-term stability conditions between MSME credit distribution variables and Indonesia's economic growth in the 2011 - 2019 period, using Direct Error Correction Model causality on panel data. The estimation result shows that MSME credit distribution has a positive and significant relationship to economic growth only in a long term. On the other hand, the causal relationship between MSME credit and economic growth is not proven, which means that there is no reciprocal relationship between credit and economic growth, or said in here demand following hypothesis is not proven

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Financial Innovation and Banks Performance: An empirical analysis of Indian Commercial Banks

Cited by 2 publications

References 0 publications

Capital Structure's Role in Shaping Stock Return Dynamics

Capital Structure's Role in Shaping Stock Return Dynamics

Medium Small Micro Enterprise (MSME) Development and Economic Growth: Causality Analysis

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Financial Innovation and Banks Performance: An empirical analysis of Indian Commercial Banks

Cited by 2 publications

References 0 publications

Capital Structure's Role in Shaping Stock Return Dynamics

Capital Structure's Role in Shaping Stock Return Dynamics

Medium Small Micro Enterprise (MSME) Development and Economic Growth: Causality Analysis

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Financial Innovation and Banks Performance: An empirical analysis of Indian Commercial Banks