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2757 items in total found

Working Papers | 1988

Estimation Errors and Time Varying Betas in Event Studies - A New Approach

Jayanth R. Varma and Samir K. Barua

The event study is one of the most powerful techniques for studying market efficiency. Over a period of time, researchers have made several modifications to the original methodology of Fama, Fisher, Jensen and Roll (1969). Nevertheless, the current methodology continues to suffer from several grave deficiencies. These deficiencies arise due to (a) a failure to take into account the variance covariance structure of the estimated abnormal returns (across time and across securities) and (b) fundamental shortcomings of the moving window technique used to deal with possible changes in the betas in the neighbourhood of the event. Our proposed methodology overcomes these deficiencies and provides statistically efficient estimates. We then extend the analysis to handle nonstationary parameters evolving according to a Kalman Filer model.

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Working Papers | 1988

Personal Taxes, Inflation and Valuation Under Earnings Retention Reinvestment

Ragunathan V

Modigliani and Miller demonstrated the impact of corporate taxes on valuation. Miller, Jaffe and Modigliani among others further studied the impact of personal taxes on valuation. Amoako-Adu attempted to analyse the impact of dividend taxes on valuation. Hochman and Palmon studied the impact of inflation on the aggregate debt-asset ratio by incorporating the tax considerations of investors firms explicitly. Rashid and Amoako-Adu attempted a comprehensive analysis of the effect of inflation on the total market value. All these authors have outlined the essence of the impact of taxes and inflation on valuation quite correctly. However, MM's, Miller's and Hochman and Palmon's valuation models restrict themselves to the situation, where the investment is made only at time zero. When this is not the case, their model needs to be modified suitably. Amoako-Adu, and Rashid and Amoako-Adu's models were conceptually incorrect in that they ignored the effect of retentions and reinvestments of earnings on the market value of a firm. In this paper a comprehensive model is worked out to account for the effect of reinvested earnings on the market value of a firm. All the other models can be expressed as special cases of the model suggested in this paper.

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Working Papers | 1988

The Medium to Long-Term Impacts of Falling Energy Prices and Welfare Changes in Agriculture Sector

Tewari Devi D

Since the first energy price shock of 1973 a number of studies have reported the impacts of rising energy prices on agriculture sector. However, in the recent years real energy prices are falling in the international market. Casually one tends to believe that falling energy prices are good to agriculture sector but this may be falsified in the medium-to long-run situations. This paper develops a conceptual model to examine various falling energy price impacts on agriculture sector, and more specifically verifies the hypothesis by using an empirical model of Saskatchewan agriculture, Canada. Findings suggests, at least for Saskatchewan, that producers will not be better-off under falling energy price regime.

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Working Papers | 1988

Redefinition of Social and Organisational Roles

Parikh Indira J and Garg Pulin K

This paper explores the institution of marriage and work organization as held by women. Both systems demand responses from women for which they are often not prepared. Their dreams of romanticised marriage and fantasy of togetherness often lead them to dis-illusionment and dis-enchantment. Their career aspirations without the reality appraisal of organisations and their own definition of systems lead them to frustrations. They are pulled and pushed between social and organization role demands, and their own entrenchment in stereotypes of role taking. The conflict between the desired and the aspired daughter-in-law, wife and mother roles on the one hand and desired, aspired professional and career role on the other hand creates conflicts, stress and guilt. Women get caught with the internalization of the normative prescriptive modalities of social and work systems. The role models from family, culture and history are insufficient and inadequate for meaningful responses. This paper explores those areas of role taking by women which can help redefine and redesign new responses in both the systems. It deals with the reinterpretation of existing roles and arriving at an integrated perspective for women which can bring convergence within both the systems of family and work. This paper suggests that women who encounter in themselves the women-person dilemma and take charge of their own destiny in their hands to give it a shape, form and a meaning finally come to make choices for the wellbeing of both themselves and the system. In the absence of such an integration, women when confronted with the turmoil of the two systems either become conformists or rebels or exile themselves and end up making compromises rather than choices.

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Working Papers | 1988

Industrial Sickness in India: Magnitude and Identification Criteria

Dholakia Bakul H

The main purpose of this paper is to examine the criteria used by official agencies to identify industrial sickness and highlight the limitations of such identification criteria especially in the context of the nature of remedial action that needs to be taken to deal with this problem. Available empirical evidence indicates that, in the case of large industrial units, industrial sickness appears to be more of an industry-specific problem than a general problem as such. Official yardsticks for identifying industrial sickness are based on the criterion cash loss and the criterion of net worth erosion. Such criteria have the undesirable effect of delaying the identification of isck units by at least a couple of years or more. The recent concept of "weak" units is also unlikely to achieve the purpose of detecting industrial sickness at the incipient stage. As a result, a large proportion of the identified sick units is found to be non-viable and, therefore not eligible for any rehabilitation package. Under these circumstances, restructuring the procedures adopted by the financial institutions for identifying industrial sickness and introducing appropriate systems for early detection and prevention of sickness appear to be the main long term remedy for this problem.

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Working Papers | 1988

A Lot Size Model with Discrete Transportation Costs

Gupta Omprakash K and Rao P Poornachandra

The classical Harris-Wilson inventory model does not explicitly account for the costs incurred in transporting goods from the supplier to the buyer. Either such costs are assumed to be fixed and considered part of the ordering costs or they are assumed to be variable and are included in the item costs. In many situations, however, it is observed that a fixed cost is incurred for a transport mode, (of a given capacity), such as a truck or wagon. The very nature of this type of transport mode requires hiring of an integer number of trucks or wagons. Therefore the transportation cost function becomes a discrete function. In this paper we develop an inventory model with discrete transportation costs, and present an algorithm for the optimal lot size. Finally an example is given to illustrate the methodology.

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Working Papers | 1988

Quadratic Progamming Applications: A Review

Gupta Omprakash K and Shah Janath

This paper attempts to review applications of quadratic programming and quadratic integer programming. Major applications have been reported in the following areas: Finance, Agriculture, Economics, Production and Operations, Marketing, Public Policy, Water Resource Management and Transportation. Specific applications in each of these categories are briefly described.

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Working Papers | 1988

Marine and Inland Fishery Sectors in India: Issues Arising out of Privitization of Common Property Resources for Accelerating Production

Srivastava Uma Kant

The marine fishery resources are common property, theoretically accessible to all. However, due to cost and uncertainty of exportable resources, all types of boat owners tend to fish close to shore. Serious conflicts have been observed between the traditional and mechanized craft owners. Further, with the mechanization, decentralised landing places are giving way to more centralised landing and marketing places. Similarly, the inland fishery resources which are also common property, are now being privatized for the benefit of a few. This paper is designed to analyse Indian experience with emerging issues of equity, income distribution, employment and social tensions in the process of mechanization of marine fisheries and acceleration of production in inland fisheries.

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Working Papers | 1988

Does Type - A Moderate the Stress - Anger Relationship in Case of Managers

Pestonjee D M and Singh G P

The study reported in this paper examines the moderating role of Type-A pattern of behavioural disposition on the relationship between role stress and state-trait anger. A set of three psychometric instruments, namely, ORS Scale (Pareek, 1983), Can You Type Your Behaviour (Gmelch, 1982) and State-Trait Anger Scale (Spielberger et al, 1983) were administered on 547 management professional for the information pertaining to role stresses, Type-A-B behaviour patterns and state-trait angers respectively. Peason's product moment coefficient of correlation, subgrouping and hierarchical multiple repression analyses were used to analyse the data. Findings of the study revealed that Type-A pattern of behavioural disposition and state-trait anger associate positively and significantly with role stress variables. Further, more coefficients of correlation between state-anger and role stresses were found to be significant for Type-B managers than Type-As. Test of significance of difference revealed that relationship of state anger with six role stress variables, namely, interrole distance, role erosion, role overload, role ambiguity, resource inadequacy and overall role stress were significantly different and higher for Type-B managers. On the other hand, coefficients of correlation between trait anger and role stress variables were higher for Type-A managers as compared to Type-Bs. However, none of the relationship between the variables was found to be significantly different. Hierarchical multiple regression analysis revealed that form of relationship of two role stress variables (RS and REC) with state anger and of four role stress variables [RS, RE, RA and ORS(T)] with trait anger were significantly moderated by Type-A behaviour pattern.

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Working Papers | 1988

Distributional Impact of Government Expenditure - A Welfare Indicator Approach

Dholakia Archana R and Ravindra H. Dholakia

Existing approaches and empirical estimation of distributional impact of government expenditure so far have been heavily dependent on several restrictive assumptions which are questionable particularly for the developing countries where phenomena of externalities and indivisibilities play a vital role. Such approaches can, therefore, seriously distort not only the evaluation of government expenditure policies but also their future directions. In the present paper we develop a simple model based on a new welfare indicator approach. Such an approach avoids almost all the restrictive unrealistic assumptions of the earlier approaches. Our approach considers basic welfare which is the minimum desired welfare level rather than the total achievable welfare level of the population. The theoretical framework developed in the present paper is also extended to analyse the government expenditure policy questions if the empirical estimates based on our approach are available for the economy.

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