Gaurango Banerjee - Academia.edu (original) (raw)

Papers by Gaurango Banerjee

Social Science Research Network, Oct 30, 2017

Journal of Financial Management and analysis, Jul 1, 2013

In this study, U.S. manufacturing firms’ short-term financial management measures including net w... more In this study, U.S. manufacturing firms’ short-term financial management measures including net working capital, inventory turnover and receivables turnover are examined over the 1971-2005 period. The impacts of firm size, profitability, tangibility, market-to-book ratio, leverage, as well as Federal Reserve monetary policy on short-term financial management measures are analyzed from an “insulation hypothesis” viewpoint. Our findings suggest that U.S. manufacturing firms in their short-term financial management behavior insulate themselves from the effects of monetary policy, and that firm size, profitability, tangibility, market-to-book ratio and leverage all have a significant role in the insulation effect. We find that contractionary monetary policy by itself does not affect firms’ net working capital, but the joint interaction effect of contractionary policy and higher firm leverage has a significant effect on the net working capital of firms.We also find that while contractionary policy significantly affects these firms’ inventory turnover, receivables turnover and asset turnover ratios, its impact on high leverage and low leverage firms are in opposite directions.

In this study, U.S. manufacturing firms' short-term assets, liabilities, term structure of debt a... more In this study, U.S. manufacturing firms' short-term assets, liabilities, term structure of debt and liquidity management ratios are examined over the 1971-2005 period. The impacts of firm size, profitability, tangibility, market-to-book ratio, leverage, as well as Federal Reserve contractionary monetary policy are analyzed from an "insulation hypothesis" viewpoint. We found support for "insulation hypothesis" whereby certain firm characteristics contribute to insulating the firm from the transmission effects of monetary policy. Also, contractionary monetary policy is found to have opposite impacts on high leverage and low leverage firms' holdings of short-term assets. Fed tightening of credit is seen to have a significant effect on account payables and long-term debt figures, and on the term structure of short-term vis-à-vis long-term debt.

Applied Financial Economics, Apr 1, 2004

ABSTRACT The role of several theoretical factors in determining the demand of US banks for borrow... more ABSTRACT The role of several theoretical factors in determining the demand of US banks for borrowed reserves from the Fed is empirically investigated. The main objective is to isolate the candidate(s) most likely responsible for the recent observed phenomenon of banks reluctance to borrow from the Fed, particularly since the mid-1980s. The results indicate that the declining number of banks due to mergers and consolidations holds much of the weight for explaining the weakened demand for borrowed reserves since the mid-1980s. Consistent evidence is found suggesting that US banks may have been unlawfully exploiting the discount window service for profit-taking purposes. This finding proves credible and suggests the need for further loan scrutiny at the Federal discount window.

The journal of applied management and entrepreneurship, Oct 1, 2008

Executive Summary In this paper we compare job satisfaction data from a Mexican factory before an... more Executive Summary In this paper we compare job satisfaction data from a Mexican factory before and after a pay cut of over fifty percent. Probably because of a lack of external opportunities, turnover intentions did not increase following the pay cut. However, morale appears to have been negatively affected. The most striking statistical result was an increased correlation between satisfaction with pay and with non-pay job facets after the pay cut - apparently, many workers were unable to separate their feelings about their reduced pay from other aspects of their jobs. We suggest that an important goal for managers responsible for implementing a pay cut is to help workers maintain this separation, and that a comparison of the correlations between satisfaction with pay and with non-pay facets before and after a pay cut may be a useful method of measuring of their effectiveness in doing so. Introduction Perhaps as a result of declining barriers within the world economy, workers in various parts of the world and in various industries have recently been asked to accept pay cuts. Erdogan, Kraimer and Liden state that "As organizations experience financial difficulties, pay cuts and pay freezes are becoming everyday occurrences in public and private organizations around the globe" (2004: 305). Indeed, a variety of organizations have recently made headlines with pay cuts or proposed pay cuts, including Hongkong Telecom (Slater, 1999), Mitsubishi (Tremblay, 1999), both American Airlines (Isidore & Ulick, 2003) and Delta Airlines (Weber & Tong, 2006), and U.S. automobile assemblers and their parts suppliers (Murray, 2005; Welch, 2006A, 2006B). This issue is particularly difficult because managers have traditionally tried to avoid pay cuts. Bewley (1998, 1999) conducted a survey of more than 300 U.S. business people and found that employers were quite reluctant to cut pay during the U.S. recession of the early 1990s. These employers disliked pay cuts because they believed they would hurt the morale and productivity of workers more than layoffs. One respondent explained that "A wage cut would give rise to morale problems. The employees would have a chip on their shoulders and would lose the fire in their bellies" (1999: 175). Layoffs, on the other hand, at least ". . . get the misery out the door" (1999: 16). Measuring managerial effectiveness. The management of workers affected by a pay cut is an increasingly important and largely unstudied issue. Given that a pay cut must be implemented, how can managers do so and still maintain worker morale? What are the criteria for effectiveness under these circumstances and how are they measured? Without a method of measuring managers' effectiveness in dealing with pay cuts, it is unlikely that significant progress can be made in understanding this issue. But measurement is especially difficult in this case. On one hand, we might suggest an objective measure of output or quality - if output does not decline or quality does not deteriorate after a pay cut, we might say that managers have handled the pay cut well. However, a problem with such an objective measure is that many factors beyond workers' control also affect output and quality. Also, pay cuts are likely to be implemented in chaotic times - for example, product lines might be added or discontinued so that output or quality might decline even though worker morale was good. On the other hand, we might suggest a perceptual measure, such as a self-report of worker effort or commitment - if the effort or commitment does not decline, we might say that managers have handled the pay cut well. However, dissatisfied workers may attempt to deceive managers as to the effort or commitment they devote to their jobs, and may even deceive themselves. Therefore we suggest that a more insightful method of measurement is needed. The purpose of this paper is to propose such a method. Pay cuts and job satisfaction. …

Social Science Research Network, Jul 1, 2016

In this study, U.S. manufacturing firms’ profitability measures including profit margins and retu... more In this study, U.S. manufacturing firms’ profitability measures including profit margins and returns on equity are examined over the 1971-2005 period. We find strong support for the “insulation hypothesis” as our results show that the profitability ratios and the valuation multiples of U.S. manufacturing firms are insulated from the effects of monetary policy, and that firm size, tangibility, and leverage all have a significant role in the insulation effect. We also find that while contractionary policy is significantly correlated with these firms’ profitability and price multiples, it has different impacts on high leverage and low leverage firms.

International Journal of Financial Management, 2015

<jats:p>The paper examines the Sarbanes-Oxley (2002) Acts immediate impact on board composi... more <jats:p>The paper examines the Sarbanes-Oxley (2002) Acts immediate impact on board composition and characteristics as well as possible reversals in its impact over time. Effects on directors age and tenure are analyzed over the 2001-06 sample period. Female participation in corporate boards is also studied in the pre-SOX and post-SOX periods. The dual roles of directors in being a member of the board as well as serving as either CEO, CFO, Chairman, Co-Chair, Founder, or Lead Director of their respective companies is also examined. We observe a short-term impact of SOX on board compositions due to changes seen in board characteristics between 2001 (pre-SOX), and 2003-05 short-term period (post-SOX). Also, we observe a reversal of board characteristics in 2006 to pre-SOX levels implying that the effects of SOX on board composition were short-lived, and needs to be monitored over time to ensure adherence to corporate accountability guidelines over the long-term.</jats:p>

Journal of Economics and Finance, Jul 1, 2016

This paper examines the impact of off-balance sheet derivatives usage by banks combined with fina... more This paper examines the impact of off-balance sheet derivatives usage by banks combined with financial statement items on their capital market risk measures. Financial markets liberalization policies in the 1990s, led to a surge in investment in Indian banks' stocks, and therefore, understanding capital market risk is of critical interest to domestic and foreign investors in bank stocks, as well as to bank managers. Using panel data analysis of publicly listed private and public sector banks, our findings indicate that bank size, core capital-to-risk adjusted asset ratio, and interest spread of banks are significantly related to the total return risk of bank stocks. The market risk of bank stocks is significantly positively related to the amount of derivatives usage and to the return on asset ratio of banks. Also, the firm-specific risk component of bank stocks is significantly affected by the volume of total assets, interest spread, and their core capital-to-asset ratio. The interest rate risk exposure of bank stocks is significantly related to the core capital-to-asset ratio, and the interest spread. The off-balance sheet derivatives exposure, bank size, and the core capital to risk adjusted asset ratios are seen to have a significant effect on the overall systematic risk

Journal of Economics and Business, 2001

This paper evaluates the implications of international policy coordination under the setting of a... more This paper evaluates the implications of international policy coordination under the setting of a common monetary authority and separate fiscal authorities. The paper considers a two-country framework with noncoordinated monetary and fiscal policies. The deviations of output, public expenditure, and inflation from target levels are obtained under symmetric and asymmetric regimes of rules and discretion. The expressions for output, inflation, and government expenditure deviation from target are also obtained under coordinating fiscal authorities and compared with similar expressions under insular fiscal policy making.

Journal of Intelligent Learning Systems and Applications

International Journal of Finance & Banking Studies (2147-4486)

This paper aims to analyse the effects of financial statement indicators and off-balance sheet it... more This paper aims to analyse the effects of financial statement indicators and off-balance sheet items affecting risk measures among Indian banks employing both panel data regression and a non-parametric decision tree approach. We explore the effects of bank size, leverage, exposure to contingent liabilities including off-balance sheet derivatives usage and macroeconomic factors on risk measures for banks. In this paper, it is also aimed to examine the effects of the major financial liberalization policy period in the domestic market in India that started in the mid-1990s and ended around 2004 as well as impacts of the 2008 global financial crisis on the risk measures of banks operating in India. As risk measures, we present a comparative analysis of liquidity, solvency, and interest rate risk measures of Indian banks across public (government) and private ownership categories. Main findings from our study demonstrate (i) significant impact of capital adequacy and the bank size on al...

Social Science Research Network, Oct 30, 2017

International Journal of Financial Management, 2015

<jats:p>The paper examines the Sarbanes-Oxley (2002) Acts immediate impact on board composi... more <jats:p>The paper examines the Sarbanes-Oxley (2002) Acts immediate impact on board composition and characteristics as well as possible reversals in its impact over time. Effects on directors age and tenure are analyzed over the 2001-06 sample period. Female participation in corporate boards is also studied in the pre-SOX and post-SOX periods. The dual roles of directors in being a member of the board as well as serving as either CEO, CFO, Chairman, Co-Chair, Founder, or Lead Director of their respective companies is also examined. We observe a short-term impact of SOX on board compositions due to changes seen in board characteristics between 2001 (pre-SOX), and 2003-05 short-term period (post-SOX). Also, we observe a reversal of board characteristics in 2006 to pre-SOX levels implying that the effects of SOX on board composition were short-lived, and needs to be monitored over time to ensure adherence to corporate accountability guidelines over the long-term.</jats:p>

The journal of applied management and entrepreneurship, 2008

Executive Summary In this paper we compare job satisfaction data from a Mexican factory before an... more Executive Summary In this paper we compare job satisfaction data from a Mexican factory before and after a pay cut of over fifty percent. Probably because of a lack of external opportunities, turnover intentions did not increase following the pay cut. However, morale appears to have been negatively affected. The most striking statistical result was an increased correlation between satisfaction with pay and with non-pay job facets after the pay cut - apparently, many workers were unable to separate their feelings about their reduced pay from other aspects of their jobs. We suggest that an important goal for managers responsible for implementing a pay cut is to help workers maintain this separation, and that a comparison of the correlations between satisfaction with pay and with non-pay facets before and after a pay cut may be a useful method of measuring of their effectiveness in doing so. Introduction Perhaps as a result of declining barriers within the world economy, workers in var...

Journal of Financial Management and analysis, 2012

This study focuses on the impact of the 2001 recession as well as the subsequent expansion on U.S... more This study focuses on the impact of the 2001 recession as well as the subsequent expansion on U.S. trade (i.e., retail and wholesale) firms’ short-term assets and liabilities. The paper also analyzes the differential effects on long-term debt and cash flow levels between retail and wholesale firms over the business cycle. We test for differences in inventory levels, trade credit extensions, and working capital financing between the retailers and wholesalers. Our results show that retailers tend to do worse in recessions when compared to the wholesalers. We find that net working capital and long-term debt levels of wholesalers are not significantly affected by the business cycle, whereas retailers have significantly less net working capital and more long-term debt in the recessionary period compared to the expansionary period. Interestingly, wholesalers are seen to increase their operating cash flows and have a larger cash outflow for financing during the recession. On the other hand...

In this study, U.S. manufacturing firms' short-term assets, liabilities, term structure of de... more In this study, U.S. manufacturing firms' short-term assets, liabilities, term structure of debt and liquidity management ratios are examined over the 1971-2005 period. The impacts of firm size, profitability, tangibility, market-to-book ratio, leverage, as well as Federal Reserve contractionary monetary policy are analyzed from an insulation hypothesis viewpoint. We found support for insulation hypothesis whereby certain firm characteristics contribute to insulating the firm from the transmission effects of monetary policy. Also, contractionary monetary policy is found to have opposite impacts on high leverage and low leverage firms' holdings of short-term assets. Fed tightening of credit is seen to have a significant effect on account payables and long-term debt figures, and on the term structure of short-term vis--vis long-term debt.

Journal of Financial Management and analysis, 2014

In this study, U.S. manufacturing firms’ short-term financial management measures including net w... more In this study, U.S. manufacturing firms’ short-term financial management measures including net working capital, inventory turnover and receivables turnover are examined over the 1971-2005 period. The impacts of firm size, profitability, tangibility, market-to-book ratio, leverage, as well as Federal Reserve monetary policy on short-term financial management measures are analyzed from an “insulation hypothesis” viewpoint. Our findings suggest that U.S. manufacturing firms in their short-term financial management behavior insulate themselves from the effects of monetary policy, and that firm size, profitability, tangibility, market-to-book ratio and leverage all have a significant role in the insulation effect. We find that contractionary monetary policy by itself does not affect firms’ net working capital, but the joint interaction effect of contractionary policy and higher firm leverage has a significant effect on the net working capital of firms.We also find that while contraction...

In this study, U.S. manufacturing firms’ profitability measures including profit margins and retu... more In this study, U.S. manufacturing firms’ profitability measures including profit margins and returns on equity are examined over the 1971-2005 period. We find strong support for the “insulation hypothesis” as our results show that the profitability ratios and the valuation multiples of U.S. manufacturing firms are insulated from the effects of monetary policy, and that firm size, tangibility, and leverage all have a significant role in the insulation effect. We also find that while contractionary policy is significantly correlated with these firms’ profitability and price multiples, it has different impacts on high leverage and low leverage firms.

The objectives of this study were to investigate bicultural border college business students’ att... more The objectives of this study were to investigate bicultural border college business students’ attitudes toward money, and to use the results to educate students about the possible impacts of their money attitude dimensions on their financial behavior patterns. A questionnaire survey using five-point Likerttype Money Attitude scale developed by Yamauchi and Templer (1982) was employed. Empirical results based on the K-means cluster analysis identified three groups of respondents. Statistical analyses revealed that there were significant differences between the money attitude dimensions with respect to cluster, gender and student classification.

The paper examines the implications of a common supply shock under the setting of a common moneta... more The paper examines the implications of a common supply shock under the setting of a common monetary authority and separate fiscal authorities. A two-country setup is considered in which the monetary policy for the countries is jointly managed by the common central bank, while the fiscal policy in each country is conducted by the respective governments. Monetary and fiscal policy making is undertaken under the alternative regimes of rules and discretion. The expressions for output and inflation are compared in the alternative regimes in the presence of an adverse supply shock and a beneficial supply shock. INTRODUCTION The paper considers a two-country model with a common central bank similar to the European Central Bank, and separate fiscal authorities similar to governments of member countries in the European Monetary Union (EMU). In this paper, the effects of an adverse and beneficial supply shock will be analyzed under alternative scenarios of commitment and discretion. Specifica...

Social Science Research Network, Oct 30, 2017

Journal of Financial Management and analysis, Jul 1, 2013

In this study, U.S. manufacturing firms’ short-term financial management measures including net w... more In this study, U.S. manufacturing firms’ short-term financial management measures including net working capital, inventory turnover and receivables turnover are examined over the 1971-2005 period. The impacts of firm size, profitability, tangibility, market-to-book ratio, leverage, as well as Federal Reserve monetary policy on short-term financial management measures are analyzed from an “insulation hypothesis” viewpoint. Our findings suggest that U.S. manufacturing firms in their short-term financial management behavior insulate themselves from the effects of monetary policy, and that firm size, profitability, tangibility, market-to-book ratio and leverage all have a significant role in the insulation effect. We find that contractionary monetary policy by itself does not affect firms’ net working capital, but the joint interaction effect of contractionary policy and higher firm leverage has a significant effect on the net working capital of firms.We also find that while contractionary policy significantly affects these firms’ inventory turnover, receivables turnover and asset turnover ratios, its impact on high leverage and low leverage firms are in opposite directions.

In this study, U.S. manufacturing firms' short-term assets, liabilities, term structure of debt a... more In this study, U.S. manufacturing firms' short-term assets, liabilities, term structure of debt and liquidity management ratios are examined over the 1971-2005 period. The impacts of firm size, profitability, tangibility, market-to-book ratio, leverage, as well as Federal Reserve contractionary monetary policy are analyzed from an "insulation hypothesis" viewpoint. We found support for "insulation hypothesis" whereby certain firm characteristics contribute to insulating the firm from the transmission effects of monetary policy. Also, contractionary monetary policy is found to have opposite impacts on high leverage and low leverage firms' holdings of short-term assets. Fed tightening of credit is seen to have a significant effect on account payables and long-term debt figures, and on the term structure of short-term vis-à-vis long-term debt.

Applied Financial Economics, Apr 1, 2004

ABSTRACT The role of several theoretical factors in determining the demand of US banks for borrow... more ABSTRACT The role of several theoretical factors in determining the demand of US banks for borrowed reserves from the Fed is empirically investigated. The main objective is to isolate the candidate(s) most likely responsible for the recent observed phenomenon of banks reluctance to borrow from the Fed, particularly since the mid-1980s. The results indicate that the declining number of banks due to mergers and consolidations holds much of the weight for explaining the weakened demand for borrowed reserves since the mid-1980s. Consistent evidence is found suggesting that US banks may have been unlawfully exploiting the discount window service for profit-taking purposes. This finding proves credible and suggests the need for further loan scrutiny at the Federal discount window.

The journal of applied management and entrepreneurship, Oct 1, 2008

Executive Summary In this paper we compare job satisfaction data from a Mexican factory before an... more Executive Summary In this paper we compare job satisfaction data from a Mexican factory before and after a pay cut of over fifty percent. Probably because of a lack of external opportunities, turnover intentions did not increase following the pay cut. However, morale appears to have been negatively affected. The most striking statistical result was an increased correlation between satisfaction with pay and with non-pay job facets after the pay cut - apparently, many workers were unable to separate their feelings about their reduced pay from other aspects of their jobs. We suggest that an important goal for managers responsible for implementing a pay cut is to help workers maintain this separation, and that a comparison of the correlations between satisfaction with pay and with non-pay facets before and after a pay cut may be a useful method of measuring of their effectiveness in doing so. Introduction Perhaps as a result of declining barriers within the world economy, workers in various parts of the world and in various industries have recently been asked to accept pay cuts. Erdogan, Kraimer and Liden state that "As organizations experience financial difficulties, pay cuts and pay freezes are becoming everyday occurrences in public and private organizations around the globe" (2004: 305). Indeed, a variety of organizations have recently made headlines with pay cuts or proposed pay cuts, including Hongkong Telecom (Slater, 1999), Mitsubishi (Tremblay, 1999), both American Airlines (Isidore & Ulick, 2003) and Delta Airlines (Weber & Tong, 2006), and U.S. automobile assemblers and their parts suppliers (Murray, 2005; Welch, 2006A, 2006B). This issue is particularly difficult because managers have traditionally tried to avoid pay cuts. Bewley (1998, 1999) conducted a survey of more than 300 U.S. business people and found that employers were quite reluctant to cut pay during the U.S. recession of the early 1990s. These employers disliked pay cuts because they believed they would hurt the morale and productivity of workers more than layoffs. One respondent explained that "A wage cut would give rise to morale problems. The employees would have a chip on their shoulders and would lose the fire in their bellies" (1999: 175). Layoffs, on the other hand, at least ". . . get the misery out the door" (1999: 16). Measuring managerial effectiveness. The management of workers affected by a pay cut is an increasingly important and largely unstudied issue. Given that a pay cut must be implemented, how can managers do so and still maintain worker morale? What are the criteria for effectiveness under these circumstances and how are they measured? Without a method of measuring managers' effectiveness in dealing with pay cuts, it is unlikely that significant progress can be made in understanding this issue. But measurement is especially difficult in this case. On one hand, we might suggest an objective measure of output or quality - if output does not decline or quality does not deteriorate after a pay cut, we might say that managers have handled the pay cut well. However, a problem with such an objective measure is that many factors beyond workers' control also affect output and quality. Also, pay cuts are likely to be implemented in chaotic times - for example, product lines might be added or discontinued so that output or quality might decline even though worker morale was good. On the other hand, we might suggest a perceptual measure, such as a self-report of worker effort or commitment - if the effort or commitment does not decline, we might say that managers have handled the pay cut well. However, dissatisfied workers may attempt to deceive managers as to the effort or commitment they devote to their jobs, and may even deceive themselves. Therefore we suggest that a more insightful method of measurement is needed. The purpose of this paper is to propose such a method. Pay cuts and job satisfaction. …

Social Science Research Network, Jul 1, 2016

In this study, U.S. manufacturing firms’ profitability measures including profit margins and retu... more In this study, U.S. manufacturing firms’ profitability measures including profit margins and returns on equity are examined over the 1971-2005 period. We find strong support for the “insulation hypothesis” as our results show that the profitability ratios and the valuation multiples of U.S. manufacturing firms are insulated from the effects of monetary policy, and that firm size, tangibility, and leverage all have a significant role in the insulation effect. We also find that while contractionary policy is significantly correlated with these firms’ profitability and price multiples, it has different impacts on high leverage and low leverage firms.

International Journal of Financial Management, 2015

<jats:p>The paper examines the Sarbanes-Oxley (2002) Acts immediate impact on board composi... more <jats:p>The paper examines the Sarbanes-Oxley (2002) Acts immediate impact on board composition and characteristics as well as possible reversals in its impact over time. Effects on directors age and tenure are analyzed over the 2001-06 sample period. Female participation in corporate boards is also studied in the pre-SOX and post-SOX periods. The dual roles of directors in being a member of the board as well as serving as either CEO, CFO, Chairman, Co-Chair, Founder, or Lead Director of their respective companies is also examined. We observe a short-term impact of SOX on board compositions due to changes seen in board characteristics between 2001 (pre-SOX), and 2003-05 short-term period (post-SOX). Also, we observe a reversal of board characteristics in 2006 to pre-SOX levels implying that the effects of SOX on board composition were short-lived, and needs to be monitored over time to ensure adherence to corporate accountability guidelines over the long-term.</jats:p>

Journal of Economics and Finance, Jul 1, 2016

This paper examines the impact of off-balance sheet derivatives usage by banks combined with fina... more This paper examines the impact of off-balance sheet derivatives usage by banks combined with financial statement items on their capital market risk measures. Financial markets liberalization policies in the 1990s, led to a surge in investment in Indian banks' stocks, and therefore, understanding capital market risk is of critical interest to domestic and foreign investors in bank stocks, as well as to bank managers. Using panel data analysis of publicly listed private and public sector banks, our findings indicate that bank size, core capital-to-risk adjusted asset ratio, and interest spread of banks are significantly related to the total return risk of bank stocks. The market risk of bank stocks is significantly positively related to the amount of derivatives usage and to the return on asset ratio of banks. Also, the firm-specific risk component of bank stocks is significantly affected by the volume of total assets, interest spread, and their core capital-to-asset ratio. The interest rate risk exposure of bank stocks is significantly related to the core capital-to-asset ratio, and the interest spread. The off-balance sheet derivatives exposure, bank size, and the core capital to risk adjusted asset ratios are seen to have a significant effect on the overall systematic risk

Journal of Economics and Business, 2001

This paper evaluates the implications of international policy coordination under the setting of a... more This paper evaluates the implications of international policy coordination under the setting of a common monetary authority and separate fiscal authorities. The paper considers a two-country framework with noncoordinated monetary and fiscal policies. The deviations of output, public expenditure, and inflation from target levels are obtained under symmetric and asymmetric regimes of rules and discretion. The expressions for output, inflation, and government expenditure deviation from target are also obtained under coordinating fiscal authorities and compared with similar expressions under insular fiscal policy making.

Journal of Intelligent Learning Systems and Applications

International Journal of Finance & Banking Studies (2147-4486)

This paper aims to analyse the effects of financial statement indicators and off-balance sheet it... more This paper aims to analyse the effects of financial statement indicators and off-balance sheet items affecting risk measures among Indian banks employing both panel data regression and a non-parametric decision tree approach. We explore the effects of bank size, leverage, exposure to contingent liabilities including off-balance sheet derivatives usage and macroeconomic factors on risk measures for banks. In this paper, it is also aimed to examine the effects of the major financial liberalization policy period in the domestic market in India that started in the mid-1990s and ended around 2004 as well as impacts of the 2008 global financial crisis on the risk measures of banks operating in India. As risk measures, we present a comparative analysis of liquidity, solvency, and interest rate risk measures of Indian banks across public (government) and private ownership categories. Main findings from our study demonstrate (i) significant impact of capital adequacy and the bank size on al...

Social Science Research Network, Oct 30, 2017

International Journal of Financial Management, 2015

<jats:p>The paper examines the Sarbanes-Oxley (2002) Acts immediate impact on board composi... more <jats:p>The paper examines the Sarbanes-Oxley (2002) Acts immediate impact on board composition and characteristics as well as possible reversals in its impact over time. Effects on directors age and tenure are analyzed over the 2001-06 sample period. Female participation in corporate boards is also studied in the pre-SOX and post-SOX periods. The dual roles of directors in being a member of the board as well as serving as either CEO, CFO, Chairman, Co-Chair, Founder, or Lead Director of their respective companies is also examined. We observe a short-term impact of SOX on board compositions due to changes seen in board characteristics between 2001 (pre-SOX), and 2003-05 short-term period (post-SOX). Also, we observe a reversal of board characteristics in 2006 to pre-SOX levels implying that the effects of SOX on board composition were short-lived, and needs to be monitored over time to ensure adherence to corporate accountability guidelines over the long-term.</jats:p>

The journal of applied management and entrepreneurship, 2008

Executive Summary In this paper we compare job satisfaction data from a Mexican factory before an... more Executive Summary In this paper we compare job satisfaction data from a Mexican factory before and after a pay cut of over fifty percent. Probably because of a lack of external opportunities, turnover intentions did not increase following the pay cut. However, morale appears to have been negatively affected. The most striking statistical result was an increased correlation between satisfaction with pay and with non-pay job facets after the pay cut - apparently, many workers were unable to separate their feelings about their reduced pay from other aspects of their jobs. We suggest that an important goal for managers responsible for implementing a pay cut is to help workers maintain this separation, and that a comparison of the correlations between satisfaction with pay and with non-pay facets before and after a pay cut may be a useful method of measuring of their effectiveness in doing so. Introduction Perhaps as a result of declining barriers within the world economy, workers in var...

Journal of Financial Management and analysis, 2012

This study focuses on the impact of the 2001 recession as well as the subsequent expansion on U.S... more This study focuses on the impact of the 2001 recession as well as the subsequent expansion on U.S. trade (i.e., retail and wholesale) firms’ short-term assets and liabilities. The paper also analyzes the differential effects on long-term debt and cash flow levels between retail and wholesale firms over the business cycle. We test for differences in inventory levels, trade credit extensions, and working capital financing between the retailers and wholesalers. Our results show that retailers tend to do worse in recessions when compared to the wholesalers. We find that net working capital and long-term debt levels of wholesalers are not significantly affected by the business cycle, whereas retailers have significantly less net working capital and more long-term debt in the recessionary period compared to the expansionary period. Interestingly, wholesalers are seen to increase their operating cash flows and have a larger cash outflow for financing during the recession. On the other hand...

In this study, U.S. manufacturing firms' short-term assets, liabilities, term structure of de... more In this study, U.S. manufacturing firms' short-term assets, liabilities, term structure of debt and liquidity management ratios are examined over the 1971-2005 period. The impacts of firm size, profitability, tangibility, market-to-book ratio, leverage, as well as Federal Reserve contractionary monetary policy are analyzed from an insulation hypothesis viewpoint. We found support for insulation hypothesis whereby certain firm characteristics contribute to insulating the firm from the transmission effects of monetary policy. Also, contractionary monetary policy is found to have opposite impacts on high leverage and low leverage firms' holdings of short-term assets. Fed tightening of credit is seen to have a significant effect on account payables and long-term debt figures, and on the term structure of short-term vis--vis long-term debt.

Journal of Financial Management and analysis, 2014

In this study, U.S. manufacturing firms’ short-term financial management measures including net w... more In this study, U.S. manufacturing firms’ short-term financial management measures including net working capital, inventory turnover and receivables turnover are examined over the 1971-2005 period. The impacts of firm size, profitability, tangibility, market-to-book ratio, leverage, as well as Federal Reserve monetary policy on short-term financial management measures are analyzed from an “insulation hypothesis” viewpoint. Our findings suggest that U.S. manufacturing firms in their short-term financial management behavior insulate themselves from the effects of monetary policy, and that firm size, profitability, tangibility, market-to-book ratio and leverage all have a significant role in the insulation effect. We find that contractionary monetary policy by itself does not affect firms’ net working capital, but the joint interaction effect of contractionary policy and higher firm leverage has a significant effect on the net working capital of firms.We also find that while contraction...

In this study, U.S. manufacturing firms’ profitability measures including profit margins and retu... more In this study, U.S. manufacturing firms’ profitability measures including profit margins and returns on equity are examined over the 1971-2005 period. We find strong support for the “insulation hypothesis” as our results show that the profitability ratios and the valuation multiples of U.S. manufacturing firms are insulated from the effects of monetary policy, and that firm size, tangibility, and leverage all have a significant role in the insulation effect. We also find that while contractionary policy is significantly correlated with these firms’ profitability and price multiples, it has different impacts on high leverage and low leverage firms.

The objectives of this study were to investigate bicultural border college business students’ att... more The objectives of this study were to investigate bicultural border college business students’ attitudes toward money, and to use the results to educate students about the possible impacts of their money attitude dimensions on their financial behavior patterns. A questionnaire survey using five-point Likerttype Money Attitude scale developed by Yamauchi and Templer (1982) was employed. Empirical results based on the K-means cluster analysis identified three groups of respondents. Statistical analyses revealed that there were significant differences between the money attitude dimensions with respect to cluster, gender and student classification.

The paper examines the implications of a common supply shock under the setting of a common moneta... more The paper examines the implications of a common supply shock under the setting of a common monetary authority and separate fiscal authorities. A two-country setup is considered in which the monetary policy for the countries is jointly managed by the common central bank, while the fiscal policy in each country is conducted by the respective governments. Monetary and fiscal policy making is undertaken under the alternative regimes of rules and discretion. The expressions for output and inflation are compared in the alternative regimes in the presence of an adverse supply shock and a beneficial supply shock. INTRODUCTION The paper considers a two-country model with a common central bank similar to the European Central Bank, and separate fiscal authorities similar to governments of member countries in the European Monetary Union (EMU). In this paper, the effects of an adverse and beneficial supply shock will be analyzed under alternative scenarios of commitment and discretion. Specifica...