Rajesh Desai - Academia.edu (original) (raw)

Papers by Rajesh Desai

NMIMS Management Review

Purpose: Sustainability disclosures are being increasingly adopted as value relevant by investors... more Purpose: Sustainability disclosures are being increasingly adopted as value relevant by investors but they are still in a budding stage in India. The present study examines the factors affecting emission revelation by Indian companies. Methodology: The emission data disclosed by 39 Indian companies on the CDP (Carbon Disclosure Project) are taken as samples for this study and the relevant financial data of these companies are collected for analysis. A logistic regression approach has been applied to determine the disclosure possibility of selected companies. Findings: From the findings, it is inferred that the size, profitability and leverage are the key determinants of emission disclosure for the sample firms. While size has a significant positive impact, profitability and leverage are negatively related to emission revelation. Practical Implications: The current research will add value to the existing environmental research, especially in emerging economies. Further, it will assis...

Asian Journal of Accounting Research

PurposeThe present study examines the initial working capital policy (WCP) and its evolution for ... more PurposeThe present study examines the initial working capital policy (WCP) and its evolution for newly established manufacturing firms.Design/methodology/approachUsing panel data of 162 firms over a period of 10 years, the study analyses the persistence-cum-convergence in WCP over the subsequent years through descriptive analysis and difference of means test. Further, the prevalence of ß – convergence, and σ-convergence has been examined using standard least squares regression, dynamic panel analysis and the Wald test.FindingsThe results indicate that sample firms continue to follow the initial WCP in the subsequent years with a gradual convergence in the WCP. Alternatively, the firms with aggressive (conservative) WCP at the time of incorporation will continue following it. Further, the firms with aggressive initial WCP have witnessed higher growth than those with conservative initial WCP.Research limitations/implicationsFindings will assist managers and practitioners to understand...

The Journal of Wealth Management

Copernican Journal of Finance & Accounting

In the present era, sustainable business practices have become an important metric for measuring ... more In the present era, sustainable business practices have become an important metric for measuring the organisational effectiveness. Shareholders have added sustainability as an important dimension of firms’ performance and consider it as value relevant for determining the market value of any company. Given the premises, present study examines the impact of CO2 emission on the market value of the firm (measured by market-to-book value ratio and Tobin’s Q ratio) in the context of a developing country. Current study is based on panel data of 230 firm-year observations collected from the annual report of Carbon Disclosure Project (CDP) and annual report of sample companies. Using panel least square regression analysis, the findings indicate significant adverse impact of CO2 emission on the firm value. In other words, shareholders assign negative value to higher discharge of carbon dioxide and reflect the same by lowering the market value of shares. Further, the results are checked for ro...

South Asian Journal of Business Studies, 2021

Purpose The purpose of this study is to examine the effect of carbon emission on accounting and m... more Purpose The purpose of this study is to examine the effect of carbon emission on accounting and market-based financial performance of Indian companies. Design/methodology/approach Firms reporting emission data on Carbon Disclosure Project (CDP) are considered for empirical analysis and the data have been collected for the period from 2013 to 2019. The study adopts Heckman's regression model to control for self-selection bias and it also examines the moderating role of environmental sensitivity through industry-wise analysis. The results are also checked for potential endogeneity using generalized methods of moments estimation. Findings Primarily, the findings postulate a significant negative impact of carbon emissions on both measures of financial performance. Further, it also determines that environmentally sensitive firms are more exposed to such negative influence of emission compared to nonsensitive companies. Research limitations/implications Current research will enhance t...

International Journal of Managerial and Financial Accounting, 2021

Management and Accounting Review, 2021

A sustainable and financially stable banking system is a prerequisite to achieve comprehensive gr... more A sustainable and financially stable banking system is a prerequisite to achieve comprehensive growth as well as economic and social well-being of residents of any country. This research focused on analyzing profitability of Indian banks and how it is affected by lending in the priority sector. Priority sector lending (PSL) mainly includes deployment of credit to weaker and neglected segments of an economy. The study adopted a distinctive measure to represent total PSL by classifying it into four sub-segments i.e., agriculture, industrial, service, and personal credit. Applying panel least square regression with fixed and random effects model, the study concluded that agricultural lending has a significant negative impact on bank profitability whereas the service sector lending adds positive value towards financial profitability of banks. Industrial and personal credit were found to be insignificant factors affecting profitability. The study will be beneficial to banking professiona...

upgrading. Banks are the backbone of emerging economy like India and require to be cultivated for... more upgrading. Banks are the backbone of emerging economy like India and require to be cultivated for meeting the financing requirements of the modern corporate. Current paper isintended to assess the relation between capital structure on profitability of the Indian banking industry. For study secondary data for a reference period of 7 years (2011-12 to 2017-18) has been collected from annual reports of 12 major banks constituting Bank Nifty – a leading bank

Copernican Journal of Finance and Accounting, 2021

One of the most critical decisions in corporate finance is to decide about the source of fund to ... more One of the most critical decisions in corporate finance is to decide about the source of fund to be employed. The mix of debt – equity used to generate funds is termed as Capital Structure (CS). Research on Capital Structure and its impact on financial performance has gained momentum from the pioneering article of Modigliani and Miller (1958). Since then it has been one of the most debated and controversial aspects of corporate finance. Researchers have contributed in form of theories as well as empirical findings to study the relation between capital structure and financial performance. Current paper reviews the existing studies in the area of CS and financial performance and also propose a conceptual model that describes the interrelationship between CS and financial performance based on detailed discussion of widespread literature. This model reckons important variables of financial performance affected by CS which help research scholars in further investigation. Researchers can ...

Vision: The Journal of Business Perspective, 2021

This study examines the effect of debt financing on market value of firm and evaluates the modera... more This study examines the effect of debt financing on market value of firm and evaluates the moderating effect of firm size on this relationship. Tobin’s Q and market-to-book value ratio are used as proxy for market value whereas long-term as well as short-term debt ratios are considered to indicate debt financing. Using data of 164 capital goods sector companies for 10 years (from 2010 to 2019), panel least square (PLS) regression with fixed and random effects (RE) model has been applied for data analysis. Based on findings, the study reports significant negative impact of borrowings (both long-term and short-term) on market value of selected companies. Further, the outcome of study confirms that firm size moderates the relationship between debt financing and firm value. The magnitude and significance of the effect of debt are stronger for small firms as compared to medium and large firms. Present verdicts will assist managers in designing capital structure policies by considering it...

Indonesian Management and Accounting Research, 2020

Capital structure (CS) is defined as combination of various sources of funds employed in business... more Capital structure (CS) is defined as combination of various sources of funds employed in business. Appropriate source of financing is inevitable for any company to exist. Present paper analyses the determinants affecting the choice of debt or equity of selected power and energy sector companies of India. For the purpose of empirical testing, panel data of 25 listed companies has been collected for 10 years (2010-2019). Based on panel regression model, the study concludes that profitability, tangibility, liquidity, non-debt tax shield, and interest coverage ratio are major determinants of CS choice of selected companies. In addition to this, study also validate the applicability of CS theories in Indian set up and concludes that power & energy companies follow the propositions of pecking order and trade-off theory. The findings of the paper will be useful to managers as it portrays critical factors affecting the CS and analysing their impact on financing decision. It will also enrich...

Indian financial system is dominated by presence of banks which act as heart and soul of the econ... more Indian financial system is dominated by presence of banks which act as heart and soul of the economy. Banks channelize the funds from savers to investors. Present study analyze the lending trends in selected heavy and key industries as well as difference in average lending ratio of PSBs across 7 years from 2010-11 to 2016-17. Credit deployment data of 18 PSBs has been analyzed using ANOVA during the study period. The study reveals that there is no significant difference in lending ratio of selected PSBs across the industries during the study period.

Journal of Commerce & Accounting Research, 2020

Financial performance of a firm is a function of its financing sources which are affected by firm... more Financial performance of a firm is a function of its financing sources which are affected by firm-specific as well as market-specific factors. Though substantial literature is available on capital structure, there are very few studies which have concentrated on Indian food processing industry. The research paper investigates the factors affecting the financing choice of a company considering its relative size and market share. On the basis of literature review, eight important factors are identified and their impact on the long-term and short-term borrowings have been tested using multiple regression model on balanced panel data of 40 firms for 5 years (2014 – 2018). The study concludes that tangibility, liquidity, growth opportunities and operating cash flows are major determinants of long-term and short-term liability. The paper has also found that small firms primarily borrow more with high profit whereas medium and large firms prefer equity and retained earnings as profits increases.