Finance

Banking Industry plays a significant role in the growth of economy in any country. The journey of Indian Banking Industry has faced many ups and downs at the time of economic crises. In last three years India’s average economic growth rate is nine percent and targeted to increase to ten percent within next five years. From the time of 18th Century to the reform period, the banking industry play a vital role like, Nationalization to Privatization and increase in Foreign banking sectors. Banking industry in India has also achieved a new height with the changing times. The use of technology has brought a revolution in the working style of the banks. Nevertheless, the fundamental aspects of banking i.e. trust and the confidence of the people on the institution remain the same. In this paper an attempt has been made to identify the Structural Changes, challenges and opportunities for the Indian Banking Industry. The article is divided in two parts. Initial part includes the introduction, historical background, structure and present scenario of Banking Industry and the concluding phase focuses on the challenges of banking industry in 21st Century and various challenges which are likely to be faced by Indian banking industry.

The introduction of corporate government practices in Nairobi stock exchange saw the Bull Run that kicked off in the Nairobi Securities Exchange in the year 2006, which made the market gain more than 50%. As earnings of companies increased, so did the demand for shares by the public, corporate governance was incorporated as a strategy for the company success. The price appreciation forced many companies to split shares owing to the nature of majority of the Kenyan and foreign investors who wanted to invest in listed companies. Companies such as Kenol/ Kobil (Kenya Oil Company Limited), East African Cables Limited, CMC Holdings Limited, ICDCI (Centum Investments Company Limited) and Barclays Bank Limited that were highly priced opted to split shares to make them accessible to the public, and to benefit the company as well as potential investors. Corporate governance formulated and implemented legislation and enforcement procedure in place within the CMA and the NSE, to curb massive falsification of financial reports, conspicuous dealings in the NSE and illegal collaboration of stockbrokers with the intention to defraud investors. It is good corporate governance that even with the recent collapse of many stockbrokerage firms investor confidence in the capital corporate governance still is high. This study explores the contribution of the corporate governance on investor confidence in Nairobi Securities Exchange; recommend the possible solutions to curb corporate governance irregularities that lead to tremendous loss of investor money and confidence.

The Ministry of Corporate Affairs has introduced the MCA21 e-Governance programme with a view to providing all services relating to ROC offices on-line in e-Governance mode.MCA21 replaces the erstwhile practices broadly consisting of physically filing of documents, incorporation of companies and inspection of documents with the Registrar of Companies. This project is the first of its kind and is intended to create a health business eco system conducive to foreign investment thereby boosting the Indian economy. This paper investigate whether the goals of the project i.e to improve the service standards to all the stakeholders have been achieved or not ?what are the new amendments in MCA project and how it is beneficial to all the stakeholder?. The analysis shows that among other e-governance programmes MCA 21 is the one which have a positive impact on the user and day by day its importance is increasing .It does not include other offices like Liquidators , CLB(Company Law Board)/Tribunals and Courts. Many up gradations were done in MCA 21 project like –XBRL,NEFT but still there is a need for increasing the awareness about use of online procedures relating to MCA and improvement in website facility during peak season.

In this research toward optimizing resource allocation, an innovative learning algorithm will used to select and optimize portfolio in Tehran Stock Exchange. A new method was proposed based on the combination of ICA (Imperial Competitive Algorithm) and GA (Genetic Algorithm) which improves the convergence speed and accuracy of the optimization results.. The obtained results show that compared with the previous method, the proposed algorithms are at least 32% faster in optimization processes; also the variance convergence speed is smaller than the ICA and GA.

This study evaluates the individual and overall performance of commercial banking industry in Pakistan consists of 20 banks contains almost 90% of the share in terms of deposits, advances, total assets, profitability and labor force divided into four group large, medium, small conventional banks and a group of Islamic banks for the period which is characterized by slow economic growth and precarious macro economic indicators started from 2006 till 2010 by using non parametric technique Data Envelopment Analysis. Technical efficiency under CRS and VRS models and scale efficiency in respect of production and intermediation approaches are evaluated. This study earmarks and reason out the most efficient and inefficient banks, overall performance which is seen under slow growth in commensurate with the economic growth. Where as, Islamic banking group is less efficient but flourishing significantly among all groups. Performance of large conventional banks is less affected with economic upheavals.

This research study is an attempt to examine the impact of Neutral Information, Classic, Accounting Information, Firm-Image Coincidence, Advocate Recommendation and Personal Financial Needs on individual investors’ decision making through the empirical research from Pakistan equity market. The objective of this study is that how an investor makes his decisions and what are the main factors that influence on the investor’s decision making. Quantitative research was conducted to determine the relationship between desired explanatory and response variables and also to check the reliability of questionnaire by Cronbach's alpha. Regression analysis is used to check the intensity between variables. For this purpose, SPSS 20 is used. Result shows that there is a strong positive correlation between variables as (r=0.858) and also value of R-Square (0.81) indicates that 81% independent variables effecting the investors decision. At the end it is recommended to the investors that they should invest freely in the stock market but the investment they make should not be made by making a proper feasibility plan and they should gain all the information about the factors that can influence their investment decisions.

In this paper, we exam firm’s incentive to manage earnings raising external capital varies with investor beliefs. Under the spline specification regression: a firm is more likely to management earnings when investors are more optimistic about the industry prospects, but more reluctant when investor belief is low. We evaluate monitory cost to explore the reasons and find that using venture capitalists as specialized investors with lower monitoring costs than other institutional investors, earnings management is less likely for low investor beliefs but more likely for high investor beliefs for VC-backed firms relative to non-VC-backed firms. We can also obtain the same results as former study that auditor’s quality negatively related with earnings management. Considering above consequence, we documents IPOs firms engaged in managing earnings with high investor beliefs have an influence on the long-run abnormal stock return performance. These findings have implications for investors, firms, and accounting standard setters. More prudential monitory is important during market booming periods.

Seasonal or calendar anomalies in equity markets (over specific days, weeks, months, and even years) have attracted a widespread attention and considerable interests among practitioners and academics alike. The day of the week effect refers to the existence of a pattern on the part of stock returns, whereby these returns are linked to the particular day of the week The primary objective of the study is to investigate the existence of seasonality in stock price behavior in Indian stock market, more specifically to investigate the existence of the day of the week effect in banking sector. The rationale behind the selection of banking sector is stocks in this sector always experience high volatility in the market, linked to the movement of broad market index and banking in India is critical to economic development of the nation. Thus this sector hence needs special attention by investors. The period of the study is from 3rd November 1994 to 31st December 2013. For the purpose analysis, the study has employed daily price series that have been obtained from the official website of National Stock Exchange (NSE). The daily price series of selected nine banks were selected for this study, and used multiple regression technique to examine the significance of the regression coefficient for investigating day of week effects. It is found that all the nine selected banks evidenced day of the week effect and mostly either on Monday, Tuesday or Wednesday. Only IDBI, OBC and PNB evidenced significant Thursday effect. The existence of seasonality in stock returns violates the weak form of market efficiency because equity prices are no longer random and can be predicted based on past pattern. This facilitates market participants to devise trading strategy which could fetch abnormal profits on the basis of past pattern. These findings have important implications for the financial managers, financial analysts and investors. The understanding of seasonality would help them to develop appropriate investment strategies.

The core objective of cureent study is to investigat the costs of financial distress of ongoing manufacturing sector of Pakistan. A panel of 146 manufacturing firms Pakitan are selected for this study for the period of 2001-2011. Two most applicable panel data teachniques (fixed effects and random effects models) are utilized to investigate the costs of financial distress and Hausman’s specification test recommended that fixed effects model is most appropriated model in this study. The results of fixed effects model suggest that financial distress of onging firms of Pakistan has significant direct impact on opportunity losses in case of Pakistan after control average collection period, total assests growth, fised to total assets ratio, tangibility of aessts and sector distresssed. The upcoming studies msut explore direct costs of financial distress and bankruptcy in case of manufacturing as well as service sector of Pakistan.

Corporate governance is leadership that has the rules, processes, or laws by which businesses are operated, regulated, and controlled, the internal factors are defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients, and government regulations. A corporate governance perspective committed to ethical behaviours in business is very essential for business growth, the organization ethical operations and culture has been on the periphery of corporate governance and board leadership, linked mainly to corporate reputation. However, in today’s globalized and interconnected world, investors and other stakeholders have come to recognize that environmental, social, and governance based on the ethical responsibilities of a company as integral to its performance and long-term sustainability. Internal control procedures and policies implemented by an entity's board of directors must be in line with the values of the organization, audit committee, management, and other personnel to provide reasonable assurance of the entity in achieving its objectives related to reliable financial reporting, operating efficiency, and compliance with laws and regulations. Internal auditors in an organization should be able to test the design and implementation of the entity's internal control procedures and the reliability of its financial reporting. The global financial crisis has heightened the need for corporate boards of directors to provide well informed strategic direction and engage in oversight that stretches beyond short-term financial performance. Doing so prepares companies to more comprehensively address risks, by anticipating potentially adverse impacts on people and the environment and managing tangible and reputational risks. It can also generate wealth by creating shareholder value through an increase in business opportunities and broader access to markets. In recent years, corporate governance based on the ethical values has received increased attention because of high-profile scandals involving abuse of corporate power and, in some cases, alleged criminal activity by corporate officers. An integral part of an effective corporate governance regime includes provisions for civil or criminal prosecution of individuals who conduct unethical or illegal acts in the name of the enterprise.