Purna Chandra Padhan - Profile on Academia.edu (original) (raw)

Papers by Purna Chandra Padhan

Effect of institutional quality on FDI inflows in South Asian and Southeast Asian countries

Heliyon, Feb 1, 2024

Theoretical Economics Letters, 2017

This study examines the effect of capital structure and firm quality on firm value of selected BS... more This study examines the effect of capital structure and firm quality on firm value of selected BSE listed Indian hospitality firms over a time frame of 2001-15. Variables including firm quality measured through Altman Z score, leverage, size, profitability, tangibility, growth, liquidity along with macro variables of growth in gross domestic product and inflation are taken into consideration for examining their impact on firm value. An empirical study has been carried out through panel data techniques by applying pooled OLS, fixed effects and random effects models. The findings of the study reveal a significant relationship of firm value with firm quality, leverage, liquidity, size and economic growth. The study shows that Modigliani miller theorem of capital structure irrelevance does not hold for Indian hospitality sector. It is of practical significance for hotel owners to reassess their capital structure to improve firm quality and firm's market performance.

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The decision to spend on Research and Development (R&D) is very crucial for the growth of any fir... more The decision to spend on Research and Development (R&D) is very crucial for the growth of any firm. This study explores the determinants of R&D intensities in selected Indian firms that spend on R&D activities. The impact of business house affiliation on R&D activities is also taken as a crucial factor determining R&D activities. The study found that R&D behavior for the period 2003-2009 is different from the year 2010. The year 2010 being the recovery year there has been significant rise in R&D spending among the selected firms. As there are some interrelated variables in the model, the simultaneity in the models is verified with Hausman tests and then two-stage least square method is applied for the empirical estimation and analysis. Outward orientation, profitability, imports of capital goods, advertisement etc. turned out to be important determinants of R&D intensity. Business group affiliation as such has a negative role in R&D intensity except for top-50 business houses in cer...

International Review of Education, 2018

Research has been conducted on the detrimental effects of using a foreign language for learning i... more Research has been conducted on the detrimental effects of using a foreign language for learning in Tanzania's secondary schools. While most studies recommend the use of a familiar language for instruction, the use of a foreign language in secondary education in Tanzania has been maintained. This has many consequences on the quality of education, and contributes to student dropout. Presenting a study carried out in the semi-rural areas of Dar es Salaam region in Tanzania, this article examines the extent to which language of instruction (LOI) contributes to school dropout. It postulates that the use of a foreign language for teaching and learning in Tanzanian secondary schools hinders the achievement of the United Nations' Sustainable Development Goals (SDGs). The study's findings, drawn from exploratory and qualitative narrative research, indicate that, notwithstanding the presence of several other factors, the use of a foreign language as LOI is a major contributor to student dropout. The use of an unfamiliar language of instruction contributes to students' lack of interest in and disengagement from learning, which ultimately pushes them out of the school system. This is because students usually perform poorly when an unfamiliar language is used as the language of examination and in classroom interaction. The study also reveals that the voices of both teachers and students are not in consonance with what would be expected in an ideal classroom teaching and learning environment. Student dropout from secondary education caused by an inappropriate LOI leads to myriad further problems which, in turn, negatively affect realisation of the SDGs in Tanzania. This article, therefore, concludes that LOI needs to be strongly factored into the development agenda. In order to ensure equitable access to quality secondary education, as required by SDG 4, the Government of Tanzania needs to adopt a language policy that promotes effective teaching and equal access to quality education in secondary schools. Keywords language of instruction (LOI) Á sustainable development Á equal access Á quality education Extended author information available on the last page of the article International Review of Education

When Is Aid Credible in the Emerging Asian economies? An Empirical Re-assessment from the Perspective of Economic Growth

Journal of the Knowledge Economy

Impact of earnings management on working capital management efficiency

Finance Research Letters

Efficiency of Indian Banks – private versus public sector banks: A two-stage analysis

Cogent Economics & Finance

Export and Economic Growth: An Empirical Analysis for India

Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics, 2004

Recent advances in time series analysis have permitted the investigation of the long-run and shor... more Recent advances in time series analysis have permitted the investigation of the long-run and short-run relationship between export and economic growth in terms of co integration analysis and error correction mechanism. The paper empirically examines the relationship between export and economic growth in the short-run and long-run by using Indian data over the period, 1950-51 to 2000-2001. There is some evidence of co integration to establish a long-run relationship between export and economic growth found through Johansen and Johansen Juselius Co integration tests. Using the Granger Causality test we find empirical support for unidirectional Granger causality running from export to economic growth.

The effects of ICT, electricity consumption, innovation and renewable power generation on economic growth: An income level analysis for the emerging economies

Journal of Cleaner Production

A Cointegration Approach to the Demand for Money under Liquidity Adjustment Facility in India: A Note

A B ST R A C T The decision to spend on Research and Development (R&D) is very crucial for the gr... more A B ST R A C T The decision to spend on Research and Development (R&D) is very crucial for the growth of any firm. This study explores the determinants of R&D intensities in selected Indian firms that spend on R&D activities. The impact of business house affiliation on R&D activities is also taken as a crucial factor determining R&D activities. The study found that R&D behavior for the period 2003-2009 is different from the year 2010. The year 2010 being the recovery year there has been significant rise in R&D spending among the selected firms. As there are some interrelated variables in the model, the simultaneity in the models is verified with Hausman tests and then two-stage least square method is applied for the empirical estimation and analysis. Outward orientation, profitability, imports of capital goods, advertisement etc. turned out to be important determinants of R&D intensity. Business group affiliation as such has a negative role in R&D intensity except for top-50 busines...

Is the QTM Controversy Settled

The present study tests the validity of the Quantity Theory of Money with the help of a new test ... more The present study tests the validity of the Quantity Theory of Money with the help of a new test procedure developed by Horvath & Watson (Econometric Theory, 1995) in a multiple cointegration framework. By using a fairly long quarterly data set of USA, Canada, Australia and Italy for the period 1975-I to 1998-II the study found that I(0) velocity is proved in all the sample countries, except Canada. Further, it found that all the sample countries have at least one unknown cointegrating vector between money supply, prices and real income, corroborating the propositions of QTM.

ICT, foreign direct investment and environmental pollution in major Asia Pacific countries

Environmental Science and Pollution Research, 2021

This paper examines the effect of ICT and FDI on environmental pollution in major Asia Pacific co... more This paper examines the effect of ICT and FDI on environmental pollution in major Asia Pacific countries during the year 1990–2018. We use Pooled Mean Group (PMG) and Dumitrescu-Hurlin Panel Causality for the estimation of the results. Our results suggest that ICT and FDI affect the carbon emissions or environmental pollution negatively. This implies that with the rise in ICT infrastructure and FDI inflows, environmental pollution decreases significantly in the long run. The Dumitrescu-Hurlin causality results suggest the existence of bidirectional causality among ICT and FDI which implies that increase in foreign investment leads to increase in ICT infrastructure and also, with increasing ICT infrastructure, the foreign investment increases in the Asia Pacific countries. On the policy forefront, the main focus should be targeted towards promoting FDI and ICT infrastructure in order to facilitate sustainable economic development in the Asia Pacific countries.

Cogent Economics & Finance, 2019

Liquidity is the ability of a bank to fund assets and meet obligations, as they become due, at re... more Liquidity is the ability of a bank to fund assets and meet obligations, as they become due, at reasonable costs. Technological and financial innovations have impacted the management of liquidity in banks. Declining ability to rely on core deposits, increased reliance on capital markets and recent turmoil in financial markets have created new challenges for banks in managing liquidity. The current study has discussed theories, indicators, factors influencing bank liquidity, and its implications on bank's capital and profitability. It has empirically analyzed the determinants of liquidity through Arellano-Bond estimates and studied the interrelationship of liquidity, regulatory capital, and profitability through 2-SLS system equations. It has found that bank size, profitability, leverage, net interest margin, CRAR, gross non-performing loans, and Central Bank Policy Rate are the significant determinants of banks' liquidity. The interactive effects among liquidity, profitability, and regulatory capital convey that banks can be more liquid with less profit, but less risky with more liquidity.

SSRN Electronic Journal, 2017

This study tries to explore the existence of herding behavior of investors in an entirely new ass... more This study tries to explore the existence of herding behavior of investors in an entirely new asset class, futures, in Indian futures market. For empirical analysis, it uses data of exchanged traded equity futures contracts, a part of futures and options segment of National Stock Exchange (NSE, India) from January 2011 to June 2016. Applying generalized least squares (GLS) regression model, the study found supporting evidences for existence of herd behavior for the study period, especially during macroeconomic news releases, in periods of extremely low (high) trading volume and spillovers from other markets. This analysis of herd behavior is key in understanding the bandwagon effect of investors, which results in inefficient asset pricing. As a policy implication, it is highly relevant to regulatory institutions responsible for efficient functioning of the financial system.

Savings and Development, 2008

This paper empirically examines the dynamic relationship between two short-term interest rates na... more This paper empirically examines the dynamic relationship between two short-term interest rates namely, repo rate (official) and call money rate (unofficial) during the full-fledged working of the liquidity adjustment facility in India. Using daily data, the study finds a strong relationship between the two rates in the long run and short-run, through cointegration tests and Error Correction Mechanism (ECM) respectively. The ECM and Granger causality test results reveal the bi-directional causality between the two rates in the short run and unidirectional causality from official to unofficial rate in the long run. The paper also examines the transmission of monetary policy impulses from official rates to unofficial rates and vice-versa. The Impulse Response Functions result shows that, in the short run, the interest rates responds to shocks to itself and other variables in the system, suggesting that monetary policy impulse can be efficiently transmitted to other financial markets.

Money and Economic Activity: Some Empirical Relationship for India

The Iup Journal of Monetary Economics, 2005

This paper empirically examines the short and long run response of economic activity (output-real... more This paper empirically examines the short and long run response of economic activity (output-real and nominal, and price level) to monetary changes in the Indian context under open economy (i.e., post-economic reform period). The empirical results, applying Johansen-Juselius cointegration tests on monthly data, support the existence of long run equilibrium relationship between money supply, interest rate, exchange rate and output, and the price level also. Through the impulse response functions and forecast error variance decomposition results, it is found that, money has both short and long run effect on the economic activity.

Modelling various financial variables involving time series data have received greater attention ... more Modelling various financial variables involving time series data have received greater attention among economists and policy makers across economies. Random walk model is one among such model which has widely applied pertaining to stock prices and other time series data. However, this paper applies a different dimension of the model for stock prices using firm level data in the Indian context. Daily adjusted closing prices of A rated 33 companies, spread across, different categories of Bombay Stock Exchange (BSE) Mumbai, have been used to tests whether stock prices follow random walk process or not. Perhaps this is a unique piece of study of RWM which applies to firm level data. Applying various unit root tests such Dickey and Fuller, Ng-Perron etc. The study finds sufficient evidence that stock prices of various firms supports random walk hypothesis during the study period and conclude that, it is practically difficult to predict the stock price based on past observations. Stock price do follow random walk process mainly due to firm specific factors apart from economic and financial factors.

Information, Price Discovery and Causality in the Indian Stock Index Futures Market

This study examines the price discovery process and lead-lag relationship between NSE S&P CNX... more This study examines the price discovery process and lead-lag relationship between NSE S&P CNX Nifty stock index futures and its underlying spot index, using daily data from January 1, 2004 to December 31, 2008. It investigates the long-term and short-term dynamics of prices between spot and futures market, using Johansen-Juselius cointegration test, Vector Error Correction Model (VECM), impulse response functions, and variance decomposition. In addition to it, the recently developed Granger non-causality tests of Toda and Yamamoto (1995) and Dolado and Lutkepohl (1996) have also been applied to examine the causal relationship between spot and futures markets. The obtained results support the existence of a long-run relationship between spot and futures prices. Further, VECM indicates short-run unidirectional causality from futures to spot market. In addition, the study finds unidirectional Granger causality from futures market to spot market through Toda-Yamamoto-Dolado-Lutkepohl (TYDL) causality test. The shape of the impulse response graphs shows that spot market has a larger response to shocks in the futures index than the futures responses to spot innovations. The results of variance decomposition indicate that the futures market shocks dominate over spot market in explaining the variation in spot market. However, disturbance originating from spot market contributes very less percentage variability to futures market. To conclude, futures price leads spot price and performs the price discovery function. The obtained results have important implications for traders, regulatory bodies and practitioners.

The Dynamic Relationship Between the Stock Price and Exchange Rate in India

The Iup Journal of Monetary Economics, 2006

The paper examines the dynamic relationship between stock price and exchange rate expressed in te... more The paper examines the dynamic relationship between stock price and exchange rate expressed in terms of long run, short run and causal relationships in the context of India, using monthly data for the period 1990-2004 to 2004-08. The well-known cointegration ...