Arya Kumar | BITS Pilani (original) (raw)
Papers by Arya Kumar
Journal of Applied Management and Investments, 2015
Succession is a key to ensuring longevity of firms hence is important in family business research... more Succession is a key to ensuring longevity of firms hence is important in family business research. The factors that influence successors’ decisions to join family businesses in India are studied. A list of 21 factors from the literature is tested on 351 students. Multivariate discriminant analysis is used. The results show that self-efficacy and external opportunities have a negative effect and parental preparation has a positive effect on the decision to join a family firm. External opportunity is further examined by a regression analysis and is found to be correlated to the perception of the father’s success in the family firm.
Banks are considered as the backbone of the economic financial system of a nation. Any failure in... more Banks are considered as the backbone of the economic financial system of a nation. Any failure in the financial performance or financial breakdown will affect the whole banking sectors as well as other dependent sectors heavily. Any issues related to financial distress or the financial problem will make the bank in a shortage of capital. The Altman Z- Score helps in testing the credit strength of the banking sector in the Indian economy as the Altman Z-Score is based on five financial ratios to assess the profitability, leverage, liquidity, solvency, and activity. So in this paper, this model is used to study the level of financial distress of banking sectors. Further, Higgins model suggests various methods to measure the performance of firms like financial leverage (debt ratio and equity ratio), liquidity (current ratio), and assets efficiency (total asset turnover). However, the sustainable growth rate is a method that identifies the performances of firms that they supposed to ach...
Environmental Science and Pollution Research
The quest for rapid economic development by modern nations has led to an unprecedented increase i... more The quest for rapid economic development by modern nations has led to an unprecedented increase in carbon emissions. Knowledge spillovers from increasing trade activities and effective environmental regulations have been suggested as viable means of controlling these rising emissions. To that end, this study aims to examine the impact 'trade openness' and 'institutional quality' had on CO 2 emissions in BRICS countries from 1991 to 2019. Three indices, namely, institutional quality, political stability, and political efficiency, are constructed to measure the overall institutional impact on emissions. A single indicator analysis is conducted for a deeper investigation of each index component. Given the existence of cross-sectional dependence among variables, the study uses the modern dynamic common correlated effects (DCCE) method to estimate their long-run relationships. Confirming the pollution haven hypothesis, the findings reveal that 'trade openness' indeed is a cause of environmental degradation in the BRICS nations. Through reduced corruption, improved political stability, bureaucratic accountability, and better law and order, 'institutional quality' is found to be contributing positively to environmental sustainability. It is also confirmed that renewable energy sources do have a positive environmental impact; however, it is found to be insufficient to offset the adverse effects caused by non-renewable sources. Based on the results, it is advised that BRICS countries should strengthen their cooperation with developed countries so that positive spillovers of green technologies may occur. Moreover, renewable resources should be aligned with firms' profits so that sustainable production practices can become the new norm.
Environmental Science and Pollution Research
Millennial Asia
The recent economic disturbances such as the outbreak of coronavirus, the Russia–Ukraine war, and... more The recent economic disturbances such as the outbreak of coronavirus, the Russia–Ukraine war, and disrupted supply chains, have resulted in high inflationary shocks that are difficult to combat. The most vulnerable to these global shocks are developing countries where trade is a crucial factor in economic growth. In this context, the study aims to investigate the impact of trade openness and output gap on inflation in BRICS countries from 1999Q1 to 2018Q4. Owing to growing economic integration and rising cross-sectional dependence, the study employs Dynamic Common Correlated Effect (DCCE) model to examine the long-run relationship between the variables. In addition, the study employs Dumitrescu and Hurlin (2012) to investigate the causal relationship between variables. The findings suggest that a more open trade policy helps to reduce rising domestic inflation. The price lowering impact of export openness outperforms the inflationary impact of imports, resulting in flattened Phillip...
The banking industry in India was passing through a critical phase in late eighties when question... more The banking industry in India was passing through a critical phase in late eighties when questions were raised about the viability of the banking institutions. Financial reforms were introduced along with economic reforms in early nineties to make the banking system more efficient, viable and responsive to changing economic environment, so as to develop a financial sector that could be globally competitive. The introduction of various reforms in a phased manner did result in strengthening the system, as was evident from various indicators such as improvement in capital adequacy, reduction in non-performing assets, increased return on assets and equity etc. However, the greatest challenge to banking industry during last one and a half decade of their growth has been management of Non- Performing Assets (NPAs). The model for understanding causes for NPAs focuses on implications of factors such as credit deposit ratio, gross domestic product, priority sector advances, bank rate etc. Th...
Qualitative Research in Financial Markets, 2019
Purpose This paper participates in the debate on market efficiency and correct approach for asset... more Purpose This paper participates in the debate on market efficiency and correct approach for asset pricing through a comprehensive review of literature in favor, as well as against the long held belief of market efficiency. The purpose of this paper is to understand emerging trends in behavioral finance and establish its future potential as a mainstream alternative theory of asset pricing. Design/methodology/approach The review and discussion of literature is mainly divided into three different sections that are –theories supporting efficient market hypothesis (EMH); studies providing evidences from the stock market on the failure of EMH and studies on behavioral finance, discussing separately investors’ behavioral biases keeping in mind their effect on stock prices; and providing empirical evidences on the effect of investor sentiment on stock prices. Findings The review of literature from both the point of views has helped in understanding the market efficiency issue and changing d...
Microfinance has emerged as an important mechanism to reach out financial services, mainly micro ... more Microfinance has emerged as an important mechanism to reach out financial services, mainly micro credit to the poor. Though there are several players in this domain still the sector is predominantly occupied by public sector banks. Presently most of the directed lending to the poor is being disbursed through group lending method. Since 1969, expansion in bank branches and adoption of technology has improved the delivery mechanism of credit products by the banks; there still exists a wide gap between demand and supply of financial products. Priority sector lending still faces challenge of sustainable recovery performance. Under priority sector lending, field functionaries often cite poor recovery and high cost associated with recovery for their underperformance. At the same time indigenous money lenders have continued their presence in the market.
Afro-Asian J. of Finance and Accounting, 2017
Studies on volatility forecasting models indicate superior performance of generalised autoregress... more Studies on volatility forecasting models indicate superior performance of generalised autoregressive conditional heteroscedasticity (GARCH) type models in the modelling conditional variance of asset returns. The utility of GARCH parameters lies in their ability in explaining the persistence of the conditional variance. The estimate of persistence provides a quantitative measure of the impact of a sudden significant change in the asset return on its future volatility. This study attempts to analyse the magnitude and time-evolving pattern in the persistence of conditional volatility using data on S&P CNX NIFTY 50 (henceforth, Nifty) benchmark index. The GARCH (1, 1) model is fitted on daily returns and a simple iterative scheme is used to re-estimate GARCH parameters on samples of different sizes and different time periods. The GARCH estimates obtained through repeated estimations furnish empirical evidence on the nature and consistency of the persistence parameter. Findings of the study confirm high persistence in the volatility process and indicate a positive relationship between the conditional volatility and volatility persistence.
Afro-Asian J. of Finance and Accounting
Global Business and Economics Review, 2022
International Journal of Economics and Business Research, 2022
Journal of Public Affairs, 2021
Journal of Applied Management and Investments, 2015
This study explores demographics of family businesses successors. A gap exists in understanding I... more This study explores demographics of family businesses successors. A gap exists in understanding Indian family businesses and the families running them, while the impact of economic and social changes in India on family businesses is unknown. An exploratory study involving a survey of 351 respondents investigated Indian family businesses. The results highlight successors joining family businesses at a younger age, the increasing role of daughters, and the prevalence of traditional industries. The increased interest of family members in family businesses may be driven by large turnover and large workforce. There are also examples of successors leaving businesses with lower turnover.
The Indian higher education system is the third largest in the world, after China and the United ... more The Indian higher education system is the third largest in the world, after China and the United States. There has been an exceptional growth in number of universities, colleges as well as enrolment in higher education system particularly during last 15 years. The ratio of professional to non-professional enrolment has been almost 1:3. Key challenge before higher education system in India is to make it relevant and purposive, so that it responds to societal needs and enables students to get meaningful employment opportunities. The areas in which there is a need to come out with policy perspective at macro level and innovations at institutional levelare Quality and Excellence, Equity and Access & Inclusion. There is a dire need for the teaching community to keep coming out with innovations in teaching-learning process, in particular in the areas of curricula, pedagogy, and assessment which should make learning an enjoyable experience and more and more purposive to the societal needs....
Human existence and development have long been mainly dependent on use of energy - for survival g... more Human existence and development have long been mainly dependent on use of energy - for survival growth and development. The prosperity of mankind...
Successors play a critical role in the future of family businesses, to either grow, maintain or s... more Successors play a critical role in the future of family businesses, to either grow, maintain or sometimes even wind them up. Succession depends upon multiple factors including intent of the successor and the reasons for the successor to join the family business. This paper attempts to undertake a detailed literature review on succession in family managed businesses. The rationale for joining family businesses is examined around succession as a process, analysis at multiple unit levels, the role of the founders and other members, the phases of succession, geographic, economic and demographic factors. The objective is to identify the issues in career choices and the gaps that exist in research particularly with reference to Indian economy.
The article “Operational Risk in Banks-Mapping, Assessment and Measurement Issues” is about the c... more The article “Operational Risk in Banks-Mapping, Assessment and Measurement Issues” is about the concept of operational risk process mapping, and various issues related to risk assessment as well as issues related to its measurement. The article discuss which are the major assessment and measurement approaches that may provide high level of insights and consistent communication to higher authorities so that necessary steps may be initiated in time.
Journal of Applied Management and Investments, 2015
Succession is a key to ensuring longevity of firms hence is important in family business research... more Succession is a key to ensuring longevity of firms hence is important in family business research. The factors that influence successors’ decisions to join family businesses in India are studied. A list of 21 factors from the literature is tested on 351 students. Multivariate discriminant analysis is used. The results show that self-efficacy and external opportunities have a negative effect and parental preparation has a positive effect on the decision to join a family firm. External opportunity is further examined by a regression analysis and is found to be correlated to the perception of the father’s success in the family firm.
Banks are considered as the backbone of the economic financial system of a nation. Any failure in... more Banks are considered as the backbone of the economic financial system of a nation. Any failure in the financial performance or financial breakdown will affect the whole banking sectors as well as other dependent sectors heavily. Any issues related to financial distress or the financial problem will make the bank in a shortage of capital. The Altman Z- Score helps in testing the credit strength of the banking sector in the Indian economy as the Altman Z-Score is based on five financial ratios to assess the profitability, leverage, liquidity, solvency, and activity. So in this paper, this model is used to study the level of financial distress of banking sectors. Further, Higgins model suggests various methods to measure the performance of firms like financial leverage (debt ratio and equity ratio), liquidity (current ratio), and assets efficiency (total asset turnover). However, the sustainable growth rate is a method that identifies the performances of firms that they supposed to ach...
Environmental Science and Pollution Research
The quest for rapid economic development by modern nations has led to an unprecedented increase i... more The quest for rapid economic development by modern nations has led to an unprecedented increase in carbon emissions. Knowledge spillovers from increasing trade activities and effective environmental regulations have been suggested as viable means of controlling these rising emissions. To that end, this study aims to examine the impact 'trade openness' and 'institutional quality' had on CO 2 emissions in BRICS countries from 1991 to 2019. Three indices, namely, institutional quality, political stability, and political efficiency, are constructed to measure the overall institutional impact on emissions. A single indicator analysis is conducted for a deeper investigation of each index component. Given the existence of cross-sectional dependence among variables, the study uses the modern dynamic common correlated effects (DCCE) method to estimate their long-run relationships. Confirming the pollution haven hypothesis, the findings reveal that 'trade openness' indeed is a cause of environmental degradation in the BRICS nations. Through reduced corruption, improved political stability, bureaucratic accountability, and better law and order, 'institutional quality' is found to be contributing positively to environmental sustainability. It is also confirmed that renewable energy sources do have a positive environmental impact; however, it is found to be insufficient to offset the adverse effects caused by non-renewable sources. Based on the results, it is advised that BRICS countries should strengthen their cooperation with developed countries so that positive spillovers of green technologies may occur. Moreover, renewable resources should be aligned with firms' profits so that sustainable production practices can become the new norm.
Environmental Science and Pollution Research
Millennial Asia
The recent economic disturbances such as the outbreak of coronavirus, the Russia–Ukraine war, and... more The recent economic disturbances such as the outbreak of coronavirus, the Russia–Ukraine war, and disrupted supply chains, have resulted in high inflationary shocks that are difficult to combat. The most vulnerable to these global shocks are developing countries where trade is a crucial factor in economic growth. In this context, the study aims to investigate the impact of trade openness and output gap on inflation in BRICS countries from 1999Q1 to 2018Q4. Owing to growing economic integration and rising cross-sectional dependence, the study employs Dynamic Common Correlated Effect (DCCE) model to examine the long-run relationship between the variables. In addition, the study employs Dumitrescu and Hurlin (2012) to investigate the causal relationship between variables. The findings suggest that a more open trade policy helps to reduce rising domestic inflation. The price lowering impact of export openness outperforms the inflationary impact of imports, resulting in flattened Phillip...
The banking industry in India was passing through a critical phase in late eighties when question... more The banking industry in India was passing through a critical phase in late eighties when questions were raised about the viability of the banking institutions. Financial reforms were introduced along with economic reforms in early nineties to make the banking system more efficient, viable and responsive to changing economic environment, so as to develop a financial sector that could be globally competitive. The introduction of various reforms in a phased manner did result in strengthening the system, as was evident from various indicators such as improvement in capital adequacy, reduction in non-performing assets, increased return on assets and equity etc. However, the greatest challenge to banking industry during last one and a half decade of their growth has been management of Non- Performing Assets (NPAs). The model for understanding causes for NPAs focuses on implications of factors such as credit deposit ratio, gross domestic product, priority sector advances, bank rate etc. Th...
Qualitative Research in Financial Markets, 2019
Purpose This paper participates in the debate on market efficiency and correct approach for asset... more Purpose This paper participates in the debate on market efficiency and correct approach for asset pricing through a comprehensive review of literature in favor, as well as against the long held belief of market efficiency. The purpose of this paper is to understand emerging trends in behavioral finance and establish its future potential as a mainstream alternative theory of asset pricing. Design/methodology/approach The review and discussion of literature is mainly divided into three different sections that are –theories supporting efficient market hypothesis (EMH); studies providing evidences from the stock market on the failure of EMH and studies on behavioral finance, discussing separately investors’ behavioral biases keeping in mind their effect on stock prices; and providing empirical evidences on the effect of investor sentiment on stock prices. Findings The review of literature from both the point of views has helped in understanding the market efficiency issue and changing d...
Microfinance has emerged as an important mechanism to reach out financial services, mainly micro ... more Microfinance has emerged as an important mechanism to reach out financial services, mainly micro credit to the poor. Though there are several players in this domain still the sector is predominantly occupied by public sector banks. Presently most of the directed lending to the poor is being disbursed through group lending method. Since 1969, expansion in bank branches and adoption of technology has improved the delivery mechanism of credit products by the banks; there still exists a wide gap between demand and supply of financial products. Priority sector lending still faces challenge of sustainable recovery performance. Under priority sector lending, field functionaries often cite poor recovery and high cost associated with recovery for their underperformance. At the same time indigenous money lenders have continued their presence in the market.
Afro-Asian J. of Finance and Accounting, 2017
Studies on volatility forecasting models indicate superior performance of generalised autoregress... more Studies on volatility forecasting models indicate superior performance of generalised autoregressive conditional heteroscedasticity (GARCH) type models in the modelling conditional variance of asset returns. The utility of GARCH parameters lies in their ability in explaining the persistence of the conditional variance. The estimate of persistence provides a quantitative measure of the impact of a sudden significant change in the asset return on its future volatility. This study attempts to analyse the magnitude and time-evolving pattern in the persistence of conditional volatility using data on S&P CNX NIFTY 50 (henceforth, Nifty) benchmark index. The GARCH (1, 1) model is fitted on daily returns and a simple iterative scheme is used to re-estimate GARCH parameters on samples of different sizes and different time periods. The GARCH estimates obtained through repeated estimations furnish empirical evidence on the nature and consistency of the persistence parameter. Findings of the study confirm high persistence in the volatility process and indicate a positive relationship between the conditional volatility and volatility persistence.
Afro-Asian J. of Finance and Accounting
Global Business and Economics Review, 2022
International Journal of Economics and Business Research, 2022
Journal of Public Affairs, 2021
Journal of Applied Management and Investments, 2015
This study explores demographics of family businesses successors. A gap exists in understanding I... more This study explores demographics of family businesses successors. A gap exists in understanding Indian family businesses and the families running them, while the impact of economic and social changes in India on family businesses is unknown. An exploratory study involving a survey of 351 respondents investigated Indian family businesses. The results highlight successors joining family businesses at a younger age, the increasing role of daughters, and the prevalence of traditional industries. The increased interest of family members in family businesses may be driven by large turnover and large workforce. There are also examples of successors leaving businesses with lower turnover.
The Indian higher education system is the third largest in the world, after China and the United ... more The Indian higher education system is the third largest in the world, after China and the United States. There has been an exceptional growth in number of universities, colleges as well as enrolment in higher education system particularly during last 15 years. The ratio of professional to non-professional enrolment has been almost 1:3. Key challenge before higher education system in India is to make it relevant and purposive, so that it responds to societal needs and enables students to get meaningful employment opportunities. The areas in which there is a need to come out with policy perspective at macro level and innovations at institutional levelare Quality and Excellence, Equity and Access & Inclusion. There is a dire need for the teaching community to keep coming out with innovations in teaching-learning process, in particular in the areas of curricula, pedagogy, and assessment which should make learning an enjoyable experience and more and more purposive to the societal needs....
Human existence and development have long been mainly dependent on use of energy - for survival g... more Human existence and development have long been mainly dependent on use of energy - for survival growth and development. The prosperity of mankind...
Successors play a critical role in the future of family businesses, to either grow, maintain or s... more Successors play a critical role in the future of family businesses, to either grow, maintain or sometimes even wind them up. Succession depends upon multiple factors including intent of the successor and the reasons for the successor to join the family business. This paper attempts to undertake a detailed literature review on succession in family managed businesses. The rationale for joining family businesses is examined around succession as a process, analysis at multiple unit levels, the role of the founders and other members, the phases of succession, geographic, economic and demographic factors. The objective is to identify the issues in career choices and the gaps that exist in research particularly with reference to Indian economy.
The article “Operational Risk in Banks-Mapping, Assessment and Measurement Issues” is about the c... more The article “Operational Risk in Banks-Mapping, Assessment and Measurement Issues” is about the concept of operational risk process mapping, and various issues related to risk assessment as well as issues related to its measurement. The article discuss which are the major assessment and measurement approaches that may provide high level of insights and consistent communication to higher authorities so that necessary steps may be initiated in time.