The paper evaluates the effect of Working Capital Management (WCM) on firm profitability of selected textile companies in India. The study is based on secondary data collected by CMIE from the companies' annual reports for the years 2011-2020. Regression analysis is used on a panel sample of 98 companies from India's Bombay Stock Exchange. Various financial ratios related to Working Capital (WC) and profitability and panel data techniques like Fixed Effect Model, Random Effect Model and Hausman test, etc. are also used. The results showed that WCM has a significant impact on a firm's profitability in the textile sector. FullArticle...

The paper investigates the trade-off between audit efforts and audit risk post implementation of IFRS and its impact on audit fees for selected publicly listed nonfinancial Indian firms. The sample consisted of 750 firm-year observations from the nonfinancial companies listed on Bombay Stock Exchange from FY2009-10 through FY2018-19. We used the Dynamic Ordinary Least Squares (DOLS) regression model in a panel framework and ensured robustness by introducing observant variables. The study found a significant decrease in the audit fee growth in the post-IFRS period, which was justified by the trade-off between audit efforts and audit risk. Further, the study found that improved disclosure, accounting quality, and auditor rotation negatively impacted audit fees. Auditor expertise was found to significantly increase audit fees. To the best of the authors' knowledge, this is the first study to analyze the association between IFRS and audit fees by critically examining the trade-off between audit efforts and audit risk post FRS implementation in emerging countries. The findings of our study have significant implications not only for the upcoming phases of mandatory IFRS implementation in India but also for emerging and developing economies that intend to mandate IFRS. The firms intending voluntary adoption of IFRS can also use this study to make informed decisions. FullArticle...

Investing in index funds provides the investors an opportunity to invest in a bunch of stocks falling under the same umbrella. Investors reap some advantages in investing in an index rather than in individual stocks. With this perspective, BSE took the initiative to provide a platform for investors to invest in a group of listed IPO companies and launched the S&P BSE IPO Index in the year 2009. In this paper, an attempt has been made to understand the differences in returns generated by S&B BSE IPO Index by considering the PE ratios. The difference in returns generated by this Index and the listing-day and long-term returns generated were studied. And also, the difference in terms of the risks of investing in the S&B BSE IPO Index and the listing-day and long-term risks of stocks that issued IPOs have been measured. FullArticle...

Generating the best returns commensurate with the risk appetite is very important for an investor in capital markets. After determining the past returns and risk behavior of a stock and assuming it to be the same in the future, optimal portfolio strategies can be worked out for different investment objectives. While it is known that expected returns and expected risks go hand in hand, there is no existing literature that has examined the exact nature of the relationship between the risks and returns on optimal portfolios in the Indian capital market. Therefore, this study examines the dynamics of risk-return relationship in the case of optimal portfolios designed for different objectives, and also validates the efficient frontier for the Indian capital market. It shows that the improvement in the returns of optimal portfolios happen at a decreasing rate with the increase in the risk appetite of an investor, indicating the nonlinear relationship between risks and returns. The implications for managers and investors have also been discussed. FullArticle...

The paper explores the credit risk position of an organization, which is beneficial for the associated stakeholders. Altman Z-Score model provides a reliable method to predict the bankruptcy position of an organization using ratios derived from the balance sheet variables of the company. The study aims at measuring credit risk for five selected Indian Companies listed on National Stock Exchange, viz., Larsen and Toubro, KEI Industries, BHEL, Grindwell Norton and Finolex, based on their market capitalization. Financial data for 10 years, from 2011 to 2020, is used. The study provides substantial material concerning the insolvency/bankruptcy position of each of these companies using Altman's Z-Score model. FullArticle...

The availability of complex financial products has increased considerably over the years, and at the same time, individuals are increasingly taking charge of their own financial security. However, there is very little or no information about whether these individuals have the financial knowledge and skills to navigate this new, increasingly complex economic scenario where stock markets play a vital role in all dimensions like never before. Many saving instruments are now intrinsically linked to financial markets and the retail investor has to understand the whole picture before taking a decision to buy or sell. The paper enumerates the factors influencing stock market participation. Whether these factors include financial literacy or the free flow of information from the capital market or inflation rate, etc., and whether they have a bearing on better investment decisions is something to be explored. The paper attempts to study these factors impacting investment behavior. To better understand literacy and its relation to financial decision making, the relationship between these variables, i.e., literacy and financial planning, and literacy and saving behavior, has been studied using unsupervised Machine Learning (ML) algorithms. The findings could be helpful to investment advisers in relooking their clients' data and honing their financial consultancy plans. FullArticle...