IOSR Journal of Economics and Finance (IOSR-JEF)

Simsr International Finance Conference (SIFICO)

Volume 2

Paper Type : Research Paper
Title : Devising a Model for Accounting Fraud Detection Based on Benford's Law
Country : India
Authors : Dr. Shalini Talwar || Ms. Kinjal Mehta

Abstract: The objective of this research paper is to recommend an additional due diligence tool in order to identify the possibility of fraud on the basis of the financial statements of the concerned companies. The authors have used the Benford's law to devise a model that highlights the possibility of fraud in the financial statements. The model makes use of statistical techniques to identify the companies that have a high probability of the P&L statement numbers being manipulated. The authors have analyzed the income side and the expense side of statement of profit and loss separately for the companies identified for evaluation in the context of the current
study.

[1]. Benford, F., "The law of anomalous numbers," Proceedings of American Philosophical Society, pp. 78, 551-572, 1938
[2]. Durtschi, C., Hillison, W., and Pacini, C, "The Effective use of Benford's Law in Detecting Fraud in Accounting Data, " Journal of
Forensic Accounting, (5): 17-33,2004
[3]. Etteridge, M.L., and Srivastava, R.P., "Using digital analysis to enhance data integrity," Issues in Accounting Education, 14(4):
675-690, 1999
[4]. Hill, T.P, "A statistical derivation of the significant-digit law," Statistical Science, pp. 10, 354-363, 1995
[5]. Hill, T. P, "The difficulty of faking data," Chance 26, 8-13. 1999
[6]. Necomb, S., "Note on the frequency of use of different digits in natural number," American Journal of Mathematics, pp. 4, 39-40,
1881


Paper Type : Research Paper
Title : Comparative Study of Stocks' characteristics that move in or out
of the CNX NIFTY Index
Country : India
Authors : Prof Sunil Parmar || Dr. Pankaj Trivedi

Abstract: Lot of strategies are adopted by investors when trading in stocks listed on the exchange. Along with information available from brokerage houses and media alike, investors are known to refer to the data published by the exchanges and tend to follow them and carry out self-analysis. In such cases, it is essentially then becomes a game of pricing available versus the budgetary limitations of an investor. In such a scenario, it is highly likely for an investor to rely more on those factors, such as pricing and volume, for their decision
making, which in reality, may or may not be relevant at the point in time.

[1]. P. Balasubramanian & Dr. R. Radhakrishnan : "Measures for Improving Investor Confidence in Indian Primary Market with Special
Reference to Coimbatore District", International Journal of Marketing, Financial Services & Management Research, Vol.2, No. 10,
October 2013.
[2]. Pratap Chandra Pati and Prabina Rajib: "Volatility persistence and trading volume in an emerging futures market: Evidence from
NSE Nifty sotck index futures", The Journal of Risk Finance, 2010, Vol. 11, Issue 10, pp. 2296-309.
[3]. Roji George: " Price Reactions to Index Reorganization Announcements: Indian Evidence", Paradigm (09718907), 2009, Vol.13
Issue 2, p88.
[4]. Sibani Prasad Sarangi and Uma Shankar Patnaik: " A study on the impact of Futures and Options on Spot Market Volatility: A case
of S&P CNX NIFTY Index", The IUP Journal of Applied Finance, April, 2007.
[5]. Srikant Parthasarathy: "Price and Volume Effects Associated with Index Additions: Evidence from the Indian Stock Market", Asian
Journal of Finance & Accounting, Vol. 2, No. 2, 2010.


Paper Type : Research Paper
Title : A Contemporary study of microfinance: A study for India's underprivileged
Country : India
Authors : Prof Asha Bhatia || Dr.S.N.V.Sivakumar || Ankit Agarwal

Abstract: PM Narendra Modi's ambitious plan of "banking for all" to end financial untouchability is expected to reach out to 75 million people, almost 65% of the Indian population. Micro financing is the buzz word today. Mohammed Yunus laid the foundation of micro finance through Grameen Bank, Bangladesh in 1976. Microfinance Institutions (MFIs) in India exist under various legal structures such as NGOs, Section 25 companies and Non-Banking Financial Companies (NBFCs). The banking system of the country including commercial Banks and Regional Rural Banks (RRBs) and other sources such as cooperative societies and other large lenders have played an important role in the development of the sector by providing refinance facility to MFIs. Self help groups (SHGs) have been utilized by banks to enable reach to the most marginalized of their target consumers.

[1]. "Jan Dhan Yojana reflects poverty as 74% accounts hold zero balance‟, Nov 20, 2014, Business Today, Retrieved from
http://www.businesstoday.in/money/banking/jan-dhan-yojana-financial-inclusion-zero-balance-in-accounts/story/212500.html.
Accessed on 20/11/2015
[2]. "The fifty top microfinance institutions‟, (2007), Forbes magazine, Retrieved at http://www.forbes.com/2007/12/20/microfinancephilanthropy-
credit-biz-cz_ms_1220microfinance_table.html
[3]. Bhandawat, A. , Financial Inclusion - Role of Indian Banks in Reaching Out to the Unbanked, All Banking Solutions, Retrieved at
http://www.allbankingsolutions.com/Articles/Articles-AB-Financial-Inclusion.htm Accessed on18/11/2015
[4]. Bhatt, U., Deshpande, O., Panda, K., Parmanand, P., Prabhumirashi, M., (2015), Transacting Jan Dhan Yojana, KPMG, Retrieved at
https://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/PMJDY.pdfAccessed on 15/11/2015
[5]. Circular No: 65(A)/ MCID-04 / 2011-12, (2012), Revisiting the SHG Bank Linkage Programme, Mumbai, Retrieved from
https://www.nabard.org/pdf/SHG2_circular.PDF.Accessed on 20/11/2015


Paper Type : Research Paper
Title : Important Determinants of Capital Structure Decisions of Indian
Automobile Industry
Country : India
Authors : Dr. Rashmi Soni || Monik Shah || Sumit Chawla

Abstract: The Capital Structure of a firm describes how it has sourced its finances. This capital structure is comprised of the owned & the owed capital. There are a number of determinants that affect the decisions taken while determining this capital structure like cost of capital, control, flexibility etc. The Indian Automobile Industry is the seventh-largest auto producer in the world with an average annual production of 17.5 Million vehicles. It is the 4th largest automotive market by volume, by 2015. It contribues about 7% to the country's
GDP by volume and projects 6 Million-plus vehicles to be sold annually, by 2020.In this paper, we are going to study the capital structure of some of the prominent listed Indian Automobile companies. The objective is to find out the relationship between the capital structure, value of the firm, return on invested capital and various other factors of the firm. We will compare the financial ratios of these companies and find out if there is any correlation amongst them.
Keywords: Capital structure, Value of the firm, Return on invested capital and various other factors of the firm

[1]. Allen, D. E., Nilapornkul, N., & Powell, R. J. (2013). The Determinants of Capital Structure: Empirical evidence from Thai Banks.
Information Management & Business Review, 5(8), 401-410.
[2]. Ani, M. A., & Amri, M. A. (2015). The determinants of capital structure: an empirical study of Omani listed industrial companies.
Business: Theory And Practice, (2),
[3]. Ashraf, T., & Rasool, S. (2013). Determinants of Leverage of Automobile Sector Firms Listed in Karachi Stock Exchange by
Testing Packing Order Theory. Journal Of Business Studies Quarterly, 4(3), 73-83.
[4]. Boateng, A. (2004). Determinants of capital structure: Evidence from international joint ventures in ghana. International Journal of
Social Economics, 31(1), 56-66
[5]. GABA, D., & GARG, R. (2012). DETERMINANTS OF CAPITAL STRUCTURE IN AUTOMOBILE AND STEEL INDUSTRY.
Asia Pacific Journal Of Research In Business Management, 3(11), 1.
[6]. Kumar, R., & Bodla, B. S. (2014). A Study of the Determinants of Capital Structure Choice. BVIMR Management Edge, 7(2), 79-
93.


Paper Type : Research Paper
Title : A study of demographic factors influencing SME credit in Mumbai, India.
Country : India
Authors : P.S Raghu kumari || Dr. Pankaj Trivedi

Abstract: One of the greatest challenges that SMEs worldwide facing today is "Lack of financing". This study attempted to gain knowledge about SME credit and its influencing factors through demographic characteristics of the respondents in terms of their approach to SME loans from banks. Data were collected from SME owners by dividing the region into various clusters. Chi-Square and two sample independent t –tests were used to analyze the data. Results indicated that Form of the ownership, Number of employees, Type of activity, Age of the owner, Age of the firm, Amount of turnover proved to be dependent on loan approvals and Gender of the
owner proved to be independent of loan approvals. T-test results indicated that when it comes to credit factors like Collateral, Reputation of owner, Personal contacts in Bank and Financial capacity of business variances among male and female respondents' variances are not same.
KeyWords: Credit factors, Demographic factors, Lack of finance, Loans,SME credit,

[1]. Amitesh Kapoor(2012)‟Financing Strategies for SME‟s in India - A Way Out‟ , International Journal of Research in Commerce and
Management, Volume No. 3,Issue no. 11 (November)
[2]. Banerjee A.,et all.( 2007). Are Monitors Over-Monitored? Evidence from Corruption and Lending in Indian Banks.April MIT-RBI
[3]. Bexley J. B and Nenninger S (2012), Financial Institutions and the Economy. Journal of Accounting and Finance, 12(1).
[4]. Borbora, S. and Dutta, G. (2002), Impact of Reform: Shifting Role of IDBI. Finance India, 16(3), pp. 1035-1044.
[5]. Dasgupta, S. (2000), How ICICI Wants to Reinvent Itself. Asiamoney, 11(6), pp. 39-41
[6]. Bisman, Jayne, Goela, Neelam (2010): "The Small Industries Development Bank of India: a retrospective on SME financing"
Indian journal of Economics and Business, Vol. 9, Issue 4


Paper Type : Research Paper
Title : Role of Micro Finance Institutions in Development of Micro- Enterprises (MSMEs) in Mumbai - An Empirical Study
Country : India
Authors : Prof. (Ms.) Gazia Sayed || Dr. Pankaj Trivedi

Abstract: This research paper is based on the evolution of microfinance institutions (MFIs) and their contribution to the development of Micro-Enterprise viz. micro, small and medium scale enterprises (MSMEs) in Mumbai. This study sought to fill in the gap by examining the impact of microfinance institutions on growth and development of small and medium enterprises. A survey was conducted on 110 SME owners using structured questionnaire. Data from the respondents was analyzed and translated into useful information using the statistical package for social sciences (SPSS).

[1]. Anyanwu, C.M., 2003. The role of CBN of Nigeria in enterprises financing.
[2]. CGAP 2012. Financing Small Enterprises: What Role for Microfinance Institutions?
[3]. CGAP. 2011. Role of MFIs in Serving Micro and Small Enterprises, Industry Survey 2011. Washington, D.C.: CGAP.
[4]. Garba Bala Bello 2013. An Assessment Of The Contributions Of Microfinance Institutions On The Growth of The Small And
Medium Enterprises (Smes) In Nigeria
[5]. George Kwadwo Anane, 2013. Sustainability of Small And Medium Scale Enterprises in Rural Ghana: The Role Of Microfinance
Institutions
[6]. Idowu Friday Christopher (2010), Impact of Microfinance on Small and Medium-Sized Enterprises in Nigeria.
[7]. Lawson, B., 2007. Access to finance for SMES: Financial system strategy 2020.


Paper Type : Research Paper
Title : Risk Literacy and Numeracy of Students in Business Engineering
Country : India
Authors : Thomas B. Berger

Abstract: Risk numeracy, how confident people are with probability and graphical displays, is associated with how the deal with risk information. Numerous studies have created indices for measuring numeracy. We tested how good students at our university are in understanding risk information in three different areas: Risk numeracy, graphical literacy and reporting literacy. This is not only important in business for making informed decisions but also in every-day life, e.g. in dealing with health-related risk information. We conducted a survey of all first-year and last-year students with the help of different scales. The results shed some light on the
educational attainments of students.

[1]. M. Galesic and R. Garcia-Retamero, Statistical numeracy for health, in M. Galesic, R. Garcia-Retamero (Ed.). Transparent
communication of health risks (New York et al: Springer 2013) 15-28.
[2]. E. T. Cokely, M. Galesic, E. Schulz, S. Ghazal and R.Garcia-Retamero, Measuring risk literacy: The Berlin Numeracy Test,
Judgment and Decision Making, 7(1), 2012, 25-47.
[3]. M. Galesic, G. Gigerenzer and S. Straubinger, Natural frequencies help older adults and people with low numeracy to evaluate
medical screening tests. Medical Decision Making, 29(5), 2009, 368-371.
[4]. E. Peters and I. Levin, Dissecting the risky-choice framing effect: Numeracy as an individual-difference factor in weighting risky
and riskless options. Judgment and Decision Making, 3(6), 2008, 435–448.
[5]. E. Peters, Numeracy and the Perception and Communication of Risks. Annals of the New York Academy of Science, 11, 2008, 281-
7.

Paper Type : Research Paper
Title : Financial Inclusion and Financial Literacy: A Comparative Study in their interrelation between selected urban and rural areas in the state of West Bengal
Country : India
Authors : Shubhra Biswas (Sinha) || Arindam Gupta

Abstract: Financial inclusion provides access to financial products and services whereas financial literacy ensures awareness about these products and services. The principal objective of this paper is to test empirically whether financial literacy level of any area, viz., urban or rural, may be influenced by financial inclusion of that area along with other demographic variables. A comprehensive questionnaire is designed to cover major aspects of financial knowledge and household financial planning for the purpose of collection of primary data
relating to calculation of financial literacy score. A total of 90 respondents, 25 from rural and 65 from urban areas, could be finally reached from Kolkata and its two adjoining districts, 24 Parganas South and 24 Parganas North.

[1]. Lusardi, and O.S. Mitchell, Financial literacy around the world: An overview,Journal of Pension Economics and
Finance,Cambridge University Press, Vol. 10(04), 2011, 497-508.
[2]. Wood, K. Downer, B. Lees, and A. Toberman, Household financial decision making: Qualitative research with couples, Department
for Work and Pensions Research Report No. 805, London: DWP. 2012.
[3]. D.R. Nash, Financial literacy: An Indian scenario, Asian Journal of Research in Banking and Finance, Vol.2 Issue 4, April 2012,
79-84.
[4]. J. Y. Campbell, Household finance, The Journal of Finance.Vol. LXI, No. 4, August 2006, 1553-1604
[5]. L. Memdani, and K. Rajyalakshmi, Financial Inclusion in India, International Journal of Applied Research and Studies (iJARS)
ISSN: 2278-9480 Volume 2, Issue 8, Aug 2013


Paper Type : Research Paper
Title : A Comparative Analysis of Transfer Pricing Favorability among
Selected Economies
Country : India
Authors : Easha Shukla || Gaurav Tripathi || Rajeev Sharma

Abstract: Transfer pricing (TP) is an indistinguishable element of the International Financial Management. It has taken a very strong position in MNCs in a short span of ten years. In the present scenario, MNCs are emerging very rapidly and are inclining more towards the concept of transfer pricing. MNCs in different industries viz., manufacturing, ITeS, BPOs-KPOs, Services, etc. are using transfer pricing for their profit maximization by tax avoidance. The countries are earning tax by penalizing MNCs on the grounds of transfer
pricing through the litigation process. Thus, it can be said that on one hand, transfer pricing is benefitting MNCs and on the other hand, contributing to the revenue from taxes for different countries.

[1]. Borkowski, S. C. (1996). An analysis (meta-and otherwise) of multinational transfer pricing research. The International Journal of
Accounting, 31(1), 39-53.
[2]. KPMG (2014) Global Transfer Pricing Report 2014.
[3]. Lohse, T., Riedel, N., &Spengel, C. (2012). The increasing importance of transfer pricing regulations–a worldwide
overview.Retrieved from http://eureka.sbs.ox.ac.uk/4388/1/WP1227.pdf
[4]. UN.org (2011) Transfer Pricing Methods available from http://www.un.org/esa/ffd/tax/2011_TP/TP_Chapter5_Methods.pdf.
Accessed Nov 1st 2015


Paper Type : Research Paper
Title : Exploring the impacts of "Pradhan Mantri Jan-Dhan Yojana'-
PMJDY, in urban areas, w.r.t. Mumbai
Country : India
Authors : Prof. Sreelatha Guntupalli

Abstract: "Financial Inclusion‟ can be called as a movement, initiated by various committees of Reserve bank of India, to achieve the goal of bringing the low- income and disadvantaged groups of economy into the ambit of banking and financial services.As part of the National Mission on Financial Inclusion, the Pradhan Mantri Jan-Dhan Yojana- PMJDY, is an integrated approach of Government of India to bring "universal access‟ to banking facilities to every house hold, improve financial literacy, access to credit, insurance & pension facilities to every individual. A similar approach was launched in 2011 by the government, which was named "Swabhimaan‟, to achieve socio-economic equality by bringing the under-privileged segments into formal banking. The focus of "Swabhimaan‟ program was towards provision of banking facilities to rural areas. The bank sathi and bank mithr model enabled the rural households to receive government subsidies and benefits directly. But PMJDY created a comprehensive approach of including every individual and every household of the country, into the banking fold.

[1]. Aishwarya Sigh, Manoj Sharma & Mukhes Sadana; " assessing the most ambitious public financial inclusion drive in history,
Microsave India focus note #114, February 2015
[2]. Arundati Bhattacharya, The Journal of Indian Institute of Banking & Finance, July-September 2015
[3]. Banking on Change: Breaking the Barriers to Financial Inclusion, Barclays bank, 2012
[4]. Gitte Madhukar, " PMJDY: national mission on financial inclusion in India‟, TMRJ, 2015
[5]. Kaur et al., IJERMT, Volume 4, Issue 1, January 2015.
[6]. Singh, A.S., Venkataramani, B., & Ambarkhane, D. Social Science Research Network (SSRN), Aug 2014
[7]. Sinha A; "financial inclusion and UCBs‟, Economic development in India, volume 171, 2013
[8]. www:pmjdy.gov.in
[9]. www:iba.org.in.



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