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Ownership
Structure and Financial Performance: A Study of the Chemical
Industry in India
-- Vishwanathan
Iyer and Archana Pillai
This
paper seeks to examine the relationship between ownership
structure and financial performance of firms, with particular
emphasis on the dynamics of the relation between the two.
Theory tells us that managerial ownership of shares in a
firm generates two conflicting effects on management behavior,
i.e., the convergence effect whereby increased ownership
can improve corporate performance, and the entrenchment
effect, which counters it. A number of studies have sought
to evaluate these effects empirically. The relationship
between institutional holding and performance is also taken
up for study. Empirically, firm performance is expected
to have a positive correlation indicating its active involvement
in monitoring management. The idea in this paper is to test
the above empirically using Indian data pertaining to chemical
industry.
©
2004 IUP. All Rights Reserved.
Effect
of Environmental Regulation on the Productive Efficiency
of Firms: A Data Envelopment Analysis
-- Dr.Tripti Mishra
The
effect of environmental regulation on the productive efficiency
of firms and estimates of cost of pollution abatement can
be sensitive to specifications of the technologies of polluting
firms. This paper attempts to examine the effect of environmental
regulation on productive efficiency and the cost of production
by taking the case of Indian pulp and paper industry. Estimates
of productive efficiency of firms are obtained under the
alternative specification of technologies by output distance
function and input distance function. A translog functional
form has been used for this purpose.
©
2004 IUP. All Rights Reserved.
Productive
Efficiency of Indian Banks: An Analysis
-- Yogesh
Doshit, Rohit Dhokai and Nilesh Lodhia
The
objective of this paper is to examine the performance of
the Indian banking sector, measured and compared through
the construct of productive efficiency using the non-parametric
frontier methodology, Data Envelopment Analysis (DEA). The
efficiency scores, for three groups of banks, viz., State
Bank and its subsidiaries, other nationalized banks and
privately owned banks are determined for the three year
period, 1999-2002. The determinants of productive efficiency
are found using regression. This paper is based on the Intermediation
approach as opposed to the Production approach. Hence, the
inputs and outputs are measured in monetary value rather
than physical value. The study shows that the public sector
State banks, as a group, have highest efficiency, followed
by private sector banks, and the other nationalized banks
in India. These results are consistent over a three year
period, but, the efficiency differences diminish over a
period of time. The study also finds that profitable banks
are more productive and that CAR has significantly positive
impact on the productive efficiency.
©
2004 IUP. All Rights Reserved.
Impact
of Policies and Determinants of Capacity Utilization: A
Case Study
of Indian Public Limited Companies
-- K
S Sujit
Capacity
utilization is a crucial factor that not only affects growth
but also indicates the levels of resource utilization in
an economy. In most of the underdeveloped countries and
developing countries, utilization of resources is very low.
Higher the unutilized capacity, slower are the growth rates.
Hence, capacity utilization is an important indicator, which
should be taken care of for a sustained economic growth.
In India, there is continuous underutilization of capacity
in most of the industries. The reasons could be different
for this underutilization and differ industry-wise. Some
are supply factors and some are demand factors. However,
the result of three equations simultaneous system shows
that factors like growth of sales, advertisement and competitive
structure are important determinants of capacity in India.
The study suggests that investment alone to create additional
capacity wouldn't help in realizing higher growth rate in
India.
©
2004 IUP. All Rights Reserved.
Pharmaceutical
Profits and Government Policy Lessons
from the Pharmaceutical Industry's C-Shaped Profit Curve
-- Parashar
Kulkarni
This
paper examines the influence of government policy on the
performance of India's Pharmaceutical industry. Starting
with a brief note on the global position and growth of the
pharmaceutical industry in India, the paper analyzes the
profitability trend of the pharmaceutical industry between
1969 and 1999. It divides the trend into three periods on
the basis of profit trends and analyzes the regulatory environment
prevalent in those three stages. Finally the paper concludes
that regulatory policy exerts great degree of influence
on the performance of the pharmaceutical industry.
©
2004 IUP. All Rights Reserved.
Credit
Efficiency in Banks: A
Comparative Study
-- Dr.
S C Bardia
The
credit efficiency has emerged as a big challenge for the
banks. The quality of loans and advances provided to the
borrowers is important to maintain adequate liquidity and
also to improve the profitability of banks. This research
paper focuses, how Credit-Deposit ratio and Net NPAs to
Net Advances ratio are useful in analyzing the credit efficiency
of the banks. The study not only compares the proportion
of net NPAs as a percentage of net advances and credits
to deposits but also examines the significance of difference
by applying the statistical `t' test and the `f' test (ANOVA).
This research paper also offers some meaningful suggestions
to improve the financial soundness and the profitability
of the banks selected for this study.
©
2004 IUP. All Rights Reserved.
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