Search results

This study aims to explore the impact of systematic liquidity risk on the averaged cross-sectional equity return of the Indian equity market. It also examines the effects of illiquidity and decomposed illiquidity on the conditional volatility of the equity market.

The present study employs the Liquidity Adjusted Capital Asset Pricing Model (LCAPM) for pricing systematic liquidity risk using the Fama & MacBeth cross-sectional regression model in the Indian stock market from January 1, 2012, to March 31, 2021. Further, the study employed an exponential generalized autoregressive conditional heteroscedastic (1,1) model to observe the impact of decomposed illiquidity on the equity market’s conditional volatility. The study also uses the Ordinary Least Square (OLS) model to illuminate the return-volatility-liquidity relationship.

The study’s findings indicate that the commonality between individual security liquidity and aggregate liquidity is positive, and the covariance of individual security liquidity and the market return negatively affects the expected return. The study’s outcome specifies that illiquidity time series analysis exhibits the asymmetric effect of directional change in return on illiquidity. Further, the study indicates a significant impact of illiquidity and decomposed illiquidity on conditional volatility. This suggests an asymmetric effect of illiquidity shocks on conditional volatility in the Indian stock market.

This study is one of the few studies that used the World Uncertainty Index (WUI) to measure liquidity and market risks as specified in the LCAPM. Further, the findings of the reverse impact of illiquidity and decomposed higher and lower illiquidity on conditional volatility confirm the presence of price informativeness and its immediate effects on illiquidity in the Indian stock market. The study strengthens earlier studies and offers new insights into stock market liquidity to clarify the association between liquidity and stock return for effective policy and strategy formulation that can benefit investors.

The purpose of this paper is to examine the capital structure determinants and speed of adjustment (SOA) toward the target capital structure of firms.

The study has used the generalized method of moments (GMM) model and two-stage least squares (TSLS) to the panel data of 3,310 Indian firms, from January 2000 to March 2018, to determine the adjustment speed toward target capital structure. Further, the study employed a fully modified ordinary least square technique to shed light on the dynamic nature of the adjustment process.

The results of the GMM estimations indicate that Indian firms are adjusting their capital structure toward the target rate of 10.38 percent per year. Similarly, the findings of TSLS estimate specify a SOA of 15.49 percent per year. The low adjustment speed suggests the prevalence of higher adjustment costs of Indian firms.

Future research can be undertaken by including certain macroeconomic factors such as GDP, inflation and the interest rate, which also affect the SOA since firms are pretentious by market conditions while designing capital structure for firms.

In the current financial and regulatory set-up when there are frequent perturbations in the capital market, the study will be valuable for regulators, firms and academicians. The work would enable the concerned stakeholders to manage their scare resources and capital effectively by a better way to make informed decisions. It will facilitate managers of young companies to identify and regulate the factors that are more pertinent for them to make flexible financial decisions concerning the capital structure.

The study amplifies on previous studies and provides new insights on the speed of the adjustment process of Indian firms, helping to modify and refine their capital structures toward the optimum capital structure. This will not only enhance the financial flexibility in the capital structure of Indian corporates but also be of great value to the policymakers and other stakeholders.

Major cereal staples such as wheat, white rice and corn have a significant negative impact on the environment, a low nutritional profile and are associated with obesity. In comparison, alternative staples (such as rye, quinoa, buckwheat, etc.) are more environmentally sustainable and nutritious, yet are underused. There has been a recent surge in research into and awareness of alternative staples, but the current understanding of the different drivers of and barriers to their consumption remains fragmented.

The present study attempts to assimilate and incorporate the current knowledge on the drivers of and barriers to the consumption of alternative staples. Eighty-one empirical studies were curated and analysed according to stringent protocols in order to examine the existing research profile and themes arising from prior research in this domain.

The study presents a profile of the extensive existing literature examining the drivers of and barriers to the consumption of alternative staples. The thematic analysis of selected studies resulted in the identification of six drivers and seven barriers. The drivers are an awareness of health; awareness of environmental factors; recommendations; awareness of the brand, labels and source of origin; household structure and demographic attributes. The barriers are difficulty in preparation, lack of familiarity, lack of availability, lack of affordability, culture, product attributes and sensory attributes. The various research gaps and avenues for future research associated with the drivers and barriers identified are also presented.

The key outcomes of the study are the presentation of the research profile, the identification of various drivers and barriers, the recognition of gaps in the research and avenues for future research and, finally, the development of a theoretical framework entitled “Behavioral reasoning towards the consumption of alternative staples (BRCAS)”. The study offers various insights for nutritionists, marketers, policymakers and consumers by increasing awareness of alternative staples.