Institute of Management & Information Science, Bhubaneswar

Pratibimba: July-December 2012

TITLE

An Empirical Analysis to Determine the Factors Contributing the Currency Exchange Rate of US Dollar with Reference to Indian Rupee

AUTHORS

Dr. Ira Bapna 1 & Vishal Sood 2

ABSTRACT

The economy of India is the twelfth largest economy in the world by nominal value and the fourth largest by purchasing power parity (PPP). With the inception of liberalization, foreign exchange markets have witnessed explosive growth in trading volume. While the government has explicitly adopted a flexible exchange rate regime, in practice the rupee is one of most efficient “trackers” of the US dollar. This study examines the determinants of the composition of pricing of dollar. Our empirical results indicate that the currency composition of the dollar is primarily influenced by the Balance of Payments (BOP), Gross Domestic Product (GDP) and Prime Lending Rate (PLR). Secondary data has been used for the study. Tools of Econometrics like β, α and ei along with correlation has been used to ascertain the approximate value of the dollar and to explore the relationship between these three factors.

Keywords: Currency Exchange, GDP, BOP, and PLR


1 Director, Maharaja Ranjit Singh College of Professional Sciences at Indore, Phone: +91 9926181370

2 Faculty, Maharaja Ranjit Singh College of Professional Sciences at Indore,

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TITLE

Dynamics of Global Financial Turmoil and Its Impact on Indian Mutual Fund Market

AUTHOR

Joity Tomer 1

ABSTRACT

Mutual fund contributes more than two percent of share in India’s current GDP growth, thereby serves the needs of funding to economy. The recent financial turmoil began during summer 2007, decelerated the impressive growth of Indian mutual fund market and revealed its vulnerability amidst global financial turmoil. The interaction of real economy with financial market became the root cause to infect interlinking funding parties viz. the non-banking financial companies (NBFCs), mutual funds and commercial bank on behalf of the global illiquidity spiral after Lehman bankruptcy in September, 2008. In the way, Indian mutual fund industry started to suffer indirectly from the heat of financial turmoil. Thus, the legacy of financial turmoil as driven by the greedy actions of human beings for maximum returns aspiration led the spark and grabbed emerging economies into global recession. In the proposed paper, we have discussed some important aspects/ dynamics of financial turmoil and its impact on Indian financial sector in general and mutual fund market in particular. To measure the impact on mutual fund market, our study has introduced the dummy variable in regression technique using the monthly average data of mutual fund NAV from April, 2007 to March, 2010 for 15 different categories of schemes. Our study inculcates that the mutual fund market is impacted by global financial turmoil and the large pressure of turmoil was basically felt by few sections of mutual fund schemes like growth and balanced schemes, however it did not hit that hard to deteriorate the confidence of investors in mutual funds. Presently, Indian mutual fund market is completely out of the influence of financial turmoil and growing at a rapid pace as evident from the 45 percent rise in its assets under management during 2009 to the end of 2010.

Keywords: Global Financial Turmoil, Financial Market, Mutual Fund Market, Mutual Fund Schemes


1 Research Scholar, Department of Economics, Aligarh Muslim University (A.M.U) at Aligarh, Email: - joitytomer2020@gmail.com

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TITLE

An Analysis of Capital Structure of Manufacturing Firms in India

AUTHOR

Dr. Kapil Sharma 1

ABSTRACT

Capital structure decisions are significant managerial decisions for any organization. It was generally accepted that capital structure decisions affect the value of the firm and thus firms should select such financing mix as will maximize the shareholders wealth. But Modigliani and Miller (1958) concluded in their research that the value of the firm is independent of its capital structure. Since then the debate on capital structure has evoked amongst academician and practitioners. Although lot of work on capital structure has been done in developed countries but little work has been done in Indian context and in particularly Indian manufacturing sector. The paper aims to study the factors that effect determinants of capital structure of Indian manufacturing firms.

Keywords: Capital Structure, Profitability, Size, Liquidity, Risk


1 Reader, Institute of Management Studies, Devi Ahliya University at Indore, Email: kapil.mhow@gmail.com

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TITLE

Moral Edifice for Global Managers for Inclusive Growth

AUTHORS

Pranabananda Rath 1 & Dr. Sarjue Pandita 2

ABSTRACT

“Moral edifices are integral assets which influences the organization’s core activities. Moral values are present when setting goals, developing strategies and in day to day decision making.

Each manager is the representative of the share holders; he or she must at least act in accordance with the law, but may go beyond the requirements of the law in order to follow his or her own moral values. However, a group of manager based on their moral conception is analysed by descriptive ethics, with its reliance on economics, psychology, sociology and all other business and social disciplines. We cannot overlook the role of B-schools that are producing global managers; B- schools need to focus upon the inclusion and inculcating moral values that have become very integral part of business world and decision making. It is very difficult to explain how a moral decision is made. In this paper, we would provide exploratory research into how managers implicitly apply non normative approaches, when developing, applying, managing, and sustaining moral values.”

Keywords: Legitimizing diversity, Ethics, Optimism, Outsourcing, Moral value


1 Assistant Professor, Ajay Kumar Garg Institute of Management(AKGIM) at Ghaziabad, Email: pranabananda2001@gmail.com

2 Assistant Professor, Ajay Kumar Garg Institute of Management(AKGIM) at Ghaziabad, Email: dr.sarjue@gmail.com

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TITLE

Economic Value Addition: Value Creation in Banking Industry in India

AUTHORS

Asit Ranjan Mohanty 1, Sagarika Mishra2 & Dr. Samson Moharana 3

ABSTRACT

Economic Value Addition (EVA) is considered as a very important metric in determining and reviewing the financial performance of a company. This paper studies performance of Banks in India last 7 years( from FY 2004-05 to 2010-11) by taking EVA as performance metric. The sample consists of 23 Scheduled Commercial Banks (SCB of India), out of which 16 are Public Sector Banks (PSBs) and 7 are Private Sector Banks. Average EVA for Public Sector Banks in a year during this period is calculated at Rs.1246.67 cr as against Rs.1129.37 cr for Private Banks. With this, it revisits and updates the EVA studies of Indian Banks.

Since, the banks are required to maintain capital as prescribed by Bank of International Settlement (BIS), their reliance on capital market to mobilize Tier 1 capital (Common Equity including Tier1 Bond) has been increasingly gone up. EVA analysis has become more relevant when Banks are trying to become Basel III compliant and Asset Liability Management has become the prime focus wherein Banks have to protect the Net Interest Margin (NIM) and improve Return on Net worth (RONW). The application of EVA as a tool for valuation of Banks and Risk Based Pricing (RBP) is getting momentum in the Banking Sector across the globe.

Keywords: EVA, Financial Profit, Expected rate of Return, Risk Based Pricing, Asset Liability Management


1 Associate Professor, Accounting & Finance Area, Xavier Institute of Management at Bhubaneswar, E-mail: asit.mohanty@ximb.ac.in

2 Research Associate, Accounting & Finance Area, Xavier Institute of Management at Bhubaneswar, E-mail: sagarika@ximb.ac.in

3 Professor & Head of Commerce Department, Utkal University at Bhubaneswar, E-mail: samsonmoharana55@rediffmail.com

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TITLE

Customer Purchase Influencers and Need Drivers for Refrigerators in Changing Times

AUTHOR

Dr. Jai Singh Parmar 1

ABSTRACT

The post liberalization era have witnessed the direction for winds and motion of economic reforms towards the market oriented economy. In absence of barriers, the new players both from India as well as from abroad are entering in the Indian market with numerous products. The huge population, burgeoning middle class and westernized approach of the youth in India, offers a great market potential for such products and the market for consumer durables is no exception to this. The market for consumer durables especially for the refrigerators are facing a severe competition. Indian companies are forced to defend their position because many internationally reputed brands have entered in Indian market. Therefore, with excessive competition prevailing in the market, it becomes imperative on the part of the company to keep itself updated on the changing trends in the market regarding the consumer buying behavior. The market for refrigerator in India is mostly captured by the brands like - Whirlpool, LG, Samsung and Videocon. The lifestyle, need and preferences of the majority of the middle class in India are changing rapidly. Hence, in the light of these fast changing needs and preferences of the customers, it become necessary to study the changes in the customer behaviour towards the purchase decision of the different brands of refrigerators in the different regions of India. Through the present study, an attempt was made to analyze the buying behavior of the customers and to enumerate the major purchase influencers, motivators and reasons behind their purchase decisions.

This study is done by researcher to examine the influence of TV Ads on purchase request made by children belonging to different segments of the society including the Urban and Rural of Madhya Pradesh, purchase consideration, parents’ yielding to children’s purchase request and children’s reaction to parents refusal.

Keywords: Market penetration, Purchase influencer, Brand positioning, Band-wagon effect, Shop ambience


1 Associate Professor, Himachal Pradesh University Business School at SHIMLA, Email: Jai_sparmar@rediff.com

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TITLE

The Journey towards a Responsive Supply Chain - Minda Autocare Ltd.

AUTHORS

Biswaroop Singh 1 & Purna Chandra Ratha 2

ABSTRACT

In a highly competitive and high growth market, proper management of logistics and supply chain is an imperative. Furthermore, in most cases selecting to be either an efficient supply chain or responsive supply chain does not provide a suitable solution. Rather, it becomes very important to achieve the right mix of both, depending on the need. The changes in the technology (in IT and other areas), improvements in the infrastructure and mode of transportation, pressures of competition and growth compel an organization to periodically review its order processing and delivery mechanism. The case study of Minda Autocare Ltd. highlights the impact of technology on order processing and traces the shift from orders being placed through mail to use of web portals and implementation of ERP. Likewise improvements in the area of transportation in outbound logistics were made to make it a more responsive organization.

Keywords: Warehouse management, Responsive supply chain, Order processing, ERP system


1 Sr. Lecturer, Institute of Professional Studies & Research at Cuttack, Odisha, biswaroops@gmail.com

2 Professor, Dept. of Business Administration, Utkal University at Bhubaneswar, pcratha@gmail.com

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Institute of Management & Information Science, Bhubaneswar