K. V. Bhanu Murthy

Delhi Technological University | Delhi College of Engineering · USME

Recent business failures and corporate scandals, the world over, and particularly in India, point towards greed and financial irregularities by top leaders of these corporate entities. In the post-covid crisis scenario, when many businesses suffered because of lockdown, all that is needed is revisiting of governance model and make it more purposefu...

Foreign Direct Investment (FDI) plays an important role in the long-term economic development of a country. The growth of FDI depends upon international economic conditions and policies along with the potential of an economy to absorb FDI. This paper has laid out the overall policy frame work for facilitating FDI inflows in India and study the over...

With globalisation, there has been a phenomenal rise in Foreign Direct Investment (FD). Since this is likely to lead to an intermational relocation of production and consequent generation of income and employment. This would lead to international specialisation of production and is likely to maximize of global welfare. This would however, be hamper...

This paper aims at analysing the state of the Digital Economy by observing growth patterns of some Developmental Variables (GDP and GDP Per capita) and some digitisation variables. We have analysed with the help of growth models, correlation and Granger Causality amongst Developing, Developed and the World Economy during a period of recent 15 years...

Extant literature is not unequivocal about IPO pricing. It is almost silent about the misallocation in the capital market. IPO pricing is mostly argued from the point of view of listing gains/losses.

This study aims to gain insights on various issues that surround stock market volatility. For this purpose, more than forty empirical studies have been examined to critically assess issues like, heteroscedasticity, asymmetric effect, risk-return framework, spillovers and forecasting accuracy. With the help of time-series plots, the study demonstrat...

The main objective of this research paper is to examine the short run performance of IPOs by taking one-month performance. There exists a notion that the performance of IPO stocks has improved in the short run after going public. In this study, the data for short run analysis are taken for 30 days. We try to test the empirically the short run perfo...

It is, generally, argued that we can attribute the rise and fall of stock market to the flow of funds and investment by Foreign Institutional Investors (FII). The Indian stock market is visited by three major players—FIIs, Mutual Funds (MF) and Domestic Institutional Investors (DIIs). This article lays down the analytical framework for comparing th...

In this paper the attempt is to raise another dimension of trade, namely, the value of Chinese currency vis-à-vis US dollar. One of the main motivations of our paper is to address the prime question of whether the Chinese currency is actually undervalued or has it been appreciating over the years? The current trade war is, at least, in part driven...

US–China economic ties have expanded substantially since China began reforming its economy and liberalizing its trade regime in the late 1970s. Total US–China merchandise trade rose from $2 billion in 1979 (when China’s economic reforms began) to $636 billion in 2017. China is currently the United States’ largest merchandise trading partner, its th...

"Given the importance of Sensory Marketing in the field of QSR (Quick Service Restaurant) industry, the objective of this paper is to identify the key sensory factors that influence customers’ selection of a fast food restaurant. The purpose is to find out the factors in order of influence to answer the question of whether sensory factors play any...

In a federal economy like India, it is important to understand the fiscal relations between different layers of government to bring out their implications for revenue generation, revenue sharing and taxation. This paper describes the functional responsibilities and sources of revenue of local bodies, explains the present constitutional arrangements...

While the notion of Environmental Kuznets Curve (EKC), which relates economic development to pollution, is well established, there is controversy about its shape, incidence and determinants. Moreover, there is an avowed relationship between economic development and international trade. This leads to the conceptualization of the trade-environment tr...

The last two decades have witnessed intense competition among countries, particularly developing economies, to attract foreign direct investment (FDI). This is because FDI fills the gap between desired investment and domestic private investment and helps them to acquire new technology and managerial skills. This paper attempts to understand the evo...

The competition among countries to attract foreign direct investment (FDI) has increased significantly in the last two decades. While comparing FDI flows across countries, the comparison between India and China is a significant area of interest as these two countries enjoy strong similarities with each other in terms of population and market size a...

The derivatives market in India got a shot in the arm with the Government deciding to treat income from derivatives trading as a non-speculative income. The decision to treat income from derivative trading as a non-speculative income has contributed to an increase in the trading volume in the derivative market since it provides for setting off of d...

The debate on growth and development has largely been argued during the seventies and eighties over the world. Subsequent to the eighties and nineties, the concern shifted towards the global environment through the emphasis on pollution and other forms of environmental degradation. Thereafter, the entire development debate has been revisited from t...

In this paper, we examine the Long-run performance of initial public offerings (IPOs). The data has been taken for 31 IPOs from the year 2000 to 2003. We have used Logistic Regression Model through SPSS Version 16 to test for the relationship between long run performance of IPOs and short run performance variables of the company. The analysis shows...

In this paper, we examine the Long-run performance of initial public offerings (IPOs). The data has been taken for 31 IPOs from the year 2000 to 2003. We have used Logistic Regression Model through SPSS Version 16 to test for the relationship between long run performance of IPOs and short run performance variables of the company. The analysis shows...

The global energy landscape is rapidly changing as a result of economic shifts and technological breakthroughs. There has been an increased focus on climate change through the phenomenon of global warming, which is caused by accumulation of green house gases (GHG) in the atmosphere. Efforts have been underway at the international as well as nationa...

There has been an on-going debate over the Market Infrastructure Institutions (MIIs): their number and growth, as well as, the need for regulation and governance of MIIs, including stock exchanges (Lee (2010)). This paper raises a set of questions: (i) What is the economic understanding of governance of MIIs?, (ii) What is its role in developing co...

The economic basis of globalisation lies in multilateralism where the intended impact is allocative efficiency. So, it can be said about foreign direct investment (FDI) that multilateralism implies importing capital from a variety of sources as may be most efficient rather than restricting them to a bilateral basis. This forms the motivation of thi...

This paper models the role of tax treaties in promoting foreign direct investment (FDI) with the help of panel data for 14 countries for the period 1993–2011. A fixed effects (least squares dummy variable) model is developed that captures macroeconomic factors such as gross domestic product (GDP) and per capita income (PCI) in ratio form of home to...

A paradigm shift has taken place in the conceptual framework of Corporate Responsibility which has led to the emergence of a holistic approach towards Governance, Corporate Social Responsibility and Environmental Accountability. We expect that social responsibility has a distinct and positive effect on the security prices in the stock market. This...

Customs duties are imposed to raise revenue for the government. Apart from the revenue function, import duties provide a protective barrier for domestic industries. Radical reforms have been introduced in the import tariff since 1991. These reforms were necessary because the customs tariff had become, over the years, very complicated in terms of mu...

Relationship between financial development and economic growth is a long-debated issue. The objective of this study is to determine if a relationship exists between financial development and economic growth. Better functioning financial systems ease the external financing constraints that impede firm and industrial expansion. On the other hand, cha...

This paper studies the impact of globalisation on Indian patents. An attempt is made to analyse the impact of globalisation on patent filings by Indian citizens from 1993 to 2011. Using semi-log and double-log regression models, we study the impact of FDI, GDP and R&D expenditure on patent filings by Indians. Our results show that real GDP per capi...

The purpose of this paper is to examine the Stolper-Samuelson Theorem in the context of India which is one of the central results of Heckscher-Ohlin theory. This theorem provides a definite way of analysing the effect of change in the prices of goods on the prices of factors of production due to tariffs. Since the theorem has been couched in terms...

With globalisation, there has been a phenomenal rise in Foreign Direct Investment (FDI). This has led to an international relocation of production and consequent generation of income and employment. This, in turn, has led to international specialisation of production and is likely to maximize global welfare. This could happen only if the concentrat...

The Indian tax system has successfully mobilised resources to finance administrative, welfare and developmental activities of public authorities. Besides being the main source of revenue for both Central and State Governments, it is an effective instrument to realise various socio-economic objectives of national policies. Further, tax policy is an...

Well-functioning markets are one of the most critical requirements of a market economy. However, markets work only when they are competitive. One of the essential pre-requisites of competitive market is flow of information to all agents. Thus, governance of companies needs to ensure transparency of information flows. According to John Kaler (2002)...

This paper is among the first to investigate the contagion effect of the 2007 financial crises across the 20 most developed countries in the world, through the use of correlation analysis, pair wise granger causality and VAR causality/ block exogeneity Wald tests. Results suggest that during the crisis period the transmission of information took lo...

The literature on crisis has often developed indices for measurement of crisis. The indices that have been developed in the earlier studies suffer from three problems: Conceptually, they include only exchange related variables and not other relevant variables that are crucial for international trade and international finance. The extant studies do...

This paper is amongst the first to investigate weak-form efficiency of the most developed (G-20) countries in the world. It also measures the impact of the 2007 financial crisis on the stock markets of these countries, in terms of their efficiency. Serial correlation test, ADF unit root test, Lo and MacKinlay (1988) variance ratio test, Chow and De...

Foreign direct investment (FDI) inflows are driven by both home country and host country conditions. It is for the host country to provide a conducive environment to FDI. Many developing Asian economies, including India, have redesigned their tax systems to make them internationally competitive. Bilateral tax treaties are seen as an instrument of p...

It is, generally, argued that we can attribute the rise and fall of stock market to the flow of funds and investment by Foreign Institutional Investors (FII). The Indian stock market is visited by three major players—FIIs, Mutual Funds (MF) and Domestic Institutional Investors (DIIs). This article lays down the analytical framework for comparing th...

The paper for the first time provides a theoretical framework for the conduct of business group owned banks. It introduces the phenomenon of business groups in the theory of financial intermediation by banks developed by Diamond (1984) with a view to analyze their impact on the result of financial intermediation. Two kinds of business groups are di...

Short-run market integration cannot be subsumed within the long run, since the money market is essentially for enabling the liquidity needs, through short term credit instruments. Through Ravallion (1986) tests we have examined short-run market integration of Money Market in India, including testing for the ‘central market hypothesis’. We find that...

With globalisation, there has been a phenomenal rise in Foreign Direct Investment (FDI). Since this is likely to lead to an international relocation of production and consequent generation of income and employment. This would lead to international specialisation of production and is likely to maximize of global welfare. This would however, be hampe...

The University System is confronted with a changed environment which necessitates re-engineering of higher education. The new framework is that of a new Pedagogic System that is to be embedded in the Knowledge Management System, in seamless manner, through pervasive computing. This paper argues that the University system is under great pressure fro...

The University System is confronted with a changed environment which necessitates re-engineering of higher education. The new framework is that of a new Pedagogic System that is to be embedded in the Knowledge Management System, in seamless manner, through pervasive computing. This paper argues that the University system is under great pressure fro...

The present financial crisis gives us an opportunity to think in retrospect about crisis. The objective of this paper is to identify and analyze various indicators of crisis, which were affected by the crises in East Asia with a more scientific and systematic approach through studying structural breaks, before, during and after crisis. Dummy variab...

This paper seeks to measure international currency crisis. It has taken the case of the A5 countries in 1997 and has developed a methodology meant to measure and explain currency crisis. The study uses Jha & Murthy (2006) approach for constructing composite indices for capturing the causes - macro-economic and financial - as well as an index of cri...

Although the paper "Competition and Monopoly in Indian Cotton Seed Market" (15 September 2007) is a good attempt at identifying some of the dynamics of the industry, the authors do not provide any explicit theoretical framework for analysing competition.

The sub prime crisis in US is the result of excessive amounts of loans made to people who could not afford them and excessive amounts of money thrown into the mortgage arena by investors who were very eager for high return. The crisis represents the other side of a phase when a low rate of interest, rising home prices and mortgage securitization br...

"Corporate governance deals with the ways in which suppliers of finance to corporations assure themselves of getting a return on their investment". This to our mind is an extremely narrow definition of corporate governance, especially in banks. Our approach to corporate governance in general is to define it in terms of responsibility and accountabi...

Extant studies treat the impact of entry on concentration and market structure mechanically; with some going further to naively identify fall in concentration as the cause of competition. It is the intention of this paper to critically examine these contentions by studying trends and determinants of the dynamics of market concentration with a view...

Extant literature is not unequivocal about IPO pricing. It is almost silent about the misallocation in the capital market. IPO pricing is mostly argued from the point of view of listing gains/losses. This paper seeks to explain the process and outcomes of IPO pricing in the capital market with the help of a basic model. With the help of certain cas...

This paper tests for market integration in 55 wholesale rice markets in India using monthly data over the period January 1970 - December 1999. The technique of Gonzalez-Rivera and Helfand (2001) is used to identify common factors across various markets. It is discovered that market integration is far from complete in India and a major reason for th...

Using an appropriate theoretical framework and econometric methodology, the study has sought to measure and model competition in private banking industry in India in an attempt to analyse the process of market dynamics in the industry. The changing scenario of private banking consequent to deregulation provided the motivation behind the study. It u...

I study a budget-constrained, private-valuation, sealed-bid sequential auction with two incompletely-informed, risk-neutral bidders in which the valuations and income may be non-monotonic functions of a bidder's type. Multiple equilibrium symmetric bidding functions may exist that differ in allocation, efficiency and revenue. The sequence of sale a...

This paper argues that the University system is under great pressure from industry (society) to deliver such finished products (graduates) from its system so as to be directly absorbed into industry and that too at a mass scale and in a short period of time. For this the University system has to undergo a process re-engineering so as to be able to...

Concepts evolve through time and over time they assume different meanings. The concept of competition is no exception. This paper discusses the evolution of the concept of competition in general with a view to derive a theoretical framework for analyzing competition in banking industry. Starting from the classical notions of competition it proceeds...

This paper argues that accountability, responsibility and governance go hand in hand. Evolving standards is a part of governance. Unless such a global perspective is adopted "Social Responsibility and the implications for Developing Countries", which is the theme for this workshop, cannot be unraveled. The purpose of this paper is to highlight how...

Starting from the famous but controversial statement of Peter Drucker (1981) - "There is neither a separate ethics of business nor is one needed", this paper goes on to argue that business ethics and social responsibility are not unrelated. It shows how it is necessary to distinguish between business philosophy and philosophy of business. Through t...

The thrust of agricultural policy during the sixties and seventies was towards restriction on trade. While this might have been the justified in the years of shortages the present trend towards surplus production of foodgrains necessitates a review of such restrictive policies. Also agricultural policy needs to tap the potential of the market by cr...

With globalization fast becoming an irreversible process, it is necessary to pay increased attention to the implications for environmental sustainability. However, the so-called environmental Kuznets curve (EKC) argument implies that rapid economic growth in many developing countries should be environmentally unsustainable. Environmental Sustainabi...

This paper tests for market integration in 55 wholesale rice markets in India using monthly data over the period January 1970 - December 1999. The technique of Gonzalez-Rivera and Helfand (2001) is used to identify common factors across various markets. It is discovered that market integration is far from complete in India and a major reason for th...

This paper tests for market integration in 55 wholesale rice markets in India using monthly data over the period January 1970 - December 1999. The technique of Gonzalez-Rivera and Helfand (2001) is used to identify common factors across various markets. It is found that wholesale rice markets are considerably fragmented. A major reason for this is...

The paper argues that Cobb-Douglas (CD) production function merits use for analysing the production process, not because it should be looked upon as a simple tool which can be handled easily or as a crude remedy for estimation, but because of the advantages it possesses. These advantages are due to the fact that it can handle multiple inputs in its...

We extend the analysis of Jha and Murthy (2003) to relate consumption to environmental degradation (conceived of as a composite) within a cross-country framework. We use the method of Principal Components Analysis (PCA) to construct an Environmental Degradation Index (EDI) for each country and global environmental degradation (GED) as the sum of th...

This paper emphasizes the role played by the level of global environmental degradation (GED) in economic development; this link has been ignored in the existing literature on the environmental Kuznets curve (EKC). We develop a composite environmental degradation index (EDI) using Principal Components Analysis (PCA) and relate it to an appropriate m...

The Environmental Sustainability Index (ESI) has been proposed by collaboration of the World Economic Forum, Geneva, Center for International Earth Science Information Network, Columbia University, and Yale Center for Environmental Law and Policy, New Haven as a measure of the overall state of the environment. This paper argues that the basic desig...

This paper articulates the necessity of emphasizing the absolute level of environmental degradation in different countries as a guide to understanding the links between such degradation and economic development. We argue the case for developing a composite environmental degradation index (EDI) and relating it to a better measure (in comparison to p...

We investigate the market microstructure of the wholesale markets for rice in India. We propose a general method of splitting the wholesale bid‐ask spread into its three constituent components: the order processing costs, the adverse information costs and the inventory holding costs. The bid‐ask spread reflects the extent of information asymmetry a...

This paper argues that the notion of sustainability as used in the extant literature is incomplete because of two reasons: (i) a neglect of the spatial dimensions of sustainability and (ii) the absence of a link between sustainability on the one hand and change in behavior on the other. This paper tries to address the second issue and argues that t...

This paper proposes a new method to break up the bid-ask spread in wholesale rice markets into its three components and applies the methodology to twelve major rice centers in India. The proposed methodology is claimed to be superior to the extant methods such as those of Stoll (1989) and George, Kaul and Nimalendran (1991). The split up of the spr...

The policy of allocation of food grains under rationing has been very ad hoc in India with allocation being fixed on a 'historical basis'. This paper uses four sets of pooled equations for predicting stable levels of per capita consumption of rice and wheat in physical terms in rural and urban India. Food grain demand is estimated for all the State...