Shveta Singh

Factors affecting credit card use in India

Purpose – The purpose of this paper is to understand the moderating influence of Multi‐item List of Value (MILOV) on credit card attributes, age, and gender in credit use among Indian customers. The research examines the impact of “lifestyle” variables (convenience, use patterns, and status) on credit card use.Design/methodology/approach – Data were collected through mall intercept technique in six metropolitan cities of India. A self‐administered questionnaire was distributed to customers visiting the malls.Findings – Use and convenience emerged as the major determinants of credit card use among Indian customers. Use, convenience, and status attributes were moderated by “sense of belonging” and “sense of fulfilment” dimensions of MILOV. Young customers were likely to use credit cards.Research limitations/implications – The study does not examine the influence of customer income, occupation, and education on credit card use, as many customers were not willing to disclose the information. These demographic...

Innovativeness/Novelty-Seeking Behavior as Determinants of Online Shopping Behavior Among Indian Youth

The purpose of this research is to examine the relationship between innovativeness/novelty-seeking behavior of Indian youth and their online shopping behavior. Three hundred students studying in universities in the northern region of India between the ages of 18 and 24 years participated in the survey. The research findings show a positive relationship between innovativeness/novelty-seeking behavior and online shopping behavior. The article concludes that Indian youth are interested in online shopping Web sites because these Web sites provide the latest information about products and services. Their online shopping is influenced by Web site attributes such as convenience and flexibility. The surveyed population felt comfortable purchasing with cash because online transactions are considered insecure. The article concludes with some suggestions that companies can incorporate to successfully attract Indian youth to their Web sites for shopping.

Capital budgeting decisions: evidence from India

Purpose - The purpose of this paper is to understand current practices in capital budgeting (including real options) in Indian companies and provide a normative framework (guidelines) for practitioners (based on our findings and literature reviewed). Design/methodology/approach - A questionnaire survey was administered to 166 non-financial companies of the BSE 200 index. Secondary data were also collated from 2001-2011. Findings - Trends towards sophisticated techniques and sound capital budgeting decisions have continued in India. All sample respondent firms used discounted cash flow (DCF) techniques in conjunction with non-DCF techniques. Internal rate of return (IRR), used by more than three quarters of the sample companies, is favored over net present value (NPV), used by half of the sample companies. Real options are used by half of the sample companies. Permanent (long-term) capital has been used to finance fixed assets (net) and working capital (net). Research limitations/implications - The limitations of the study are that it is country specific and a detailed sectoral analysis of the constituent sectors of the sample companies could have perhaps provided deeper insight into the subject. Practical implications - The findings of this research, decades of teaching experience of the authors and the literature reviewed have been utilized to evaluate current practices and suggest possible improvements in decision making (through a normative framework). Originality/value - The findings show that there still remains a theory-practice gap in the usage of IRR over NPV. The usage of permanent (long-term) capital to fund fixed assets (net) and permanent working capital requirements, although sound, could be an indication of surplus funds which could be used to repay long-term debt or finance more asset building.

Indian Stock Market and the Asset Pricing Models

Asset pricing models are attempts to define the relationship between returns and risks. In this study, we test and compare the performance of three asset pricing models ? the Capital Asset Pricing Model, the three factor model of Fama and French (1993), and the five factor model of Fama and French (2015) ? on Indian stock market (an emerging economy). The study is based on the constituent companies of CNX 500, and covers a period of fifteen years ? from October 1999 to September 2014. The models are tested on portfolios formed on four firm characteristics ? market capitalization, ratio of book-to-market equity, profitability, and investment. We find that the three factor model performs better than the Capital Asset Pricing Model in all the cases. For portfolios formed on investment, the five factor model performs better than the other models. However, except for cases in which portfolios are formed on investment, the four factor model (without an investment factor) is a more parsimonious model.

Impact of Cash Dividend Announcements: Evidence from the Indian Manufacturing Companies

According to a recent survey by McKinsey and Company, the Indian manufacturing sector is expected to touch US

Exploring attitude of Indian customers towards internet banking

1 trillion by 2025.This study analyses the impact of the announcement of cash dividends on the stock price returns of the manufacturing companies listed on Bombay Stock Exchange using event study methodology. Further, it explores whether the US financial crisis recession impacted average abnormal returns (AARs) in the period of study. The empirical results show that cash dividend announcements have positive AARs. Overall, the results lend support to the signalling and informational content hypotheses of dividends. The paired samples t-test indicates a significant difference in the mean values of AARs in the pre-and post-recession phases, highlighting the impact of recession.

Volatility in Stock Returns

Internet banking is considered a latest technological fad, which is supposed to transform the traditional banking services. This research is focused towards understanding the suitability of internet banking as a delivery channel and consequently its acceptability in the minds of Indian customers. The customers’ concerns visible were related to difficulty in using internet, navigating the bank website and fears associated with committing mistakes that might result in financial loss and inconvenience.

Focus Group Technique to Study Customer Attitude Towards Online Travel Services in India

Although volatility in returns on equity stocks/shares is inherent, the presence of excessive volatility may not be preferred by a large number of equity investors (in particular, genuine long-term investors).

Changing Nature of the Value Premium in the Indian Stock Market

The development of Internet as a service delivery medium has gained ascendancy in recent years. In developing economies, where Internet usage is restricted to an elite few, the potential for e-service delivery channels is being recognized immensely. Online travel services are being accepted as a substitute for travel agents and brick-and-mortar formats. The research explores the attitude and perceptions of Indian customers towards online travel firms. The authors used Focus Group technique, as online travel is still in the embryonic stages and people are aware of its existence but are not familiar with its services. The authors intended to study their feelings and expectations about online travel. This flexibility was possible only through qualitative research technique. The authors considered using the focus-group technique as it is an appropriate technique for generating new ideas within a social context. Financial security of the transactions emerged as one of the strongest determinants of more prolific online behavior with regard to travel.

Basel I to Basel III: Impact of Credit Risk and Interest Rate Risk of Banks in India

The article aims to test whether the nature of value premium has changed over time in the Indian stock market. Contrary to the existing literature on the Indian market, the analysis suggests that post the global crisis, the value premium has nearly ceased to exist. Using price-to-book (P/B) ratio as the proxy, the findings are robust to employing capital asset pricing model (CAPM) and the Fama and French three-factor (FF) model, and five alternative measures of returns: equal-weighted (whole and trimmed sample) and value-weighted (whole, trimmed and winsorized sample). Chow test suggests that the model parameters have changed over time. While the decrease in premium has been discovered for other countries, there was no such study in the Indian context. This is the first attempt of its kind. The findings have important implications for academia and investors.