IOSR Journal of Economics and Finance (IOSR-JEF)

Volume 3 - Issue 6

Paper Type : Research Paper
Title : Deteriorating Fiscal Outlook and Dependency of States on Centre in India
Country : India
Authors : Tawqeer Fatima
: 10.9790/5933-0360106  logo

Abstract: The fiscal outlook of the subnational governments has continued to deteriorate as there has been a rapid increase in their expenditure on the one hand and the revenue receipts lagging behind on the other hand. Hence, Subnational governments are becoming more and more policy dependent as well as fiscally dependent on federal government. The fiscal containment movement, by undermining subnational governments' independent revenue bases, is providing one more large push toward fiscal dependence. Alongside increased fiscal dependence, the accumulating impact of great number of federal mandates on subnational governments is institutionalizing increasing policy dependence as well. States have been more depending on high cost borrowing for financing their plans, with very little own funds and decelerating central assistance. As a result, the interest burden has been rising. There has been a steady increase in the share of revenue expenditure across the states over time. The paper concludes and clearly indicates that the urgency and the need for remedial measures to be undertaken at the states' level if the deterioration in the fiscal health of the states is to be arrested.
Keywords: Centre, Dependency, Expenditure, Fiscal Deficit, State

[1]. Reserve Bank of India, Handbook of Statistics on the Indian Economy, 2012-13.P.183.
[2]. Thirteenth Finance Commission Report, Government of India, 2010-15
[3]. Prasad, Kedarnath. Development of India's Financial System, Sarup & Sons, New Delhi p.222.
[4]. Singh.S.K. Public Finance in Theory and Practice, S. Chand & Company Ltd, New Delhi, P.508
[5]. Prasad, Kedarnath. Development of India's Financial System, op.cit.,p.22

Paper Type : Research Paper
Title : Property price and proximity to paper mill: a hedonic pricing analysis of Cachar Paper Mill
Country : India
Authors : Sujoy Das, Niranjan Roy
: 10.9790/5933-0360713  logo

Abstract: There are many empirical studies which demonstrated that house price is negatively related to environmental bad such as air pollution, noise, odour etc. However, dealing with industrial impact on house price we should take care of two opposite impacts i.e. positive and negative impact of industry. From the point of view of positive impact, industry provides employment both for the local and the outsider. There are number of out comers desire to stay in the region either for doing job in the industry or absorbing benefit from the built market. But what will happen in case when industry generates pollution as a by-product? In the blend of positive and negative impact of industry, the present study seeks to find out the impact of Cachar Paper Mill (CPM) on property value of the region. Applying Hedonic regression analysis the study found that CPM negatively affects rent of houses which are very closer to it however it has some positive impact on rent of houses which are closer to optimum distance from the mill.

[1]. Beron, K., Murdoch, J., and Thayer, M. (2001), "The benefits of visibility improvement: new evidence from the Los Angeles metropolitan area," Journal of Real Estate Finance and Economics, Vol. 22 , No. 2/3, pp. 319–337.
[2]. Deaton, B. J., and Hoehn, J.P. (2004), "Hedonic analysis of hazardous waste sites in the presence of other urban disamenities," Environmental Science & Policy, Vol.7 pp. 499-508,
[3]. Benitez, I.A., and Saphores, J.D. (2005), "Smelly local polluters and residential property values: A hedonic analysis of four orange county (Calfornia) cities," Estudios Economicos, Vol.20, No.2, pp. 197 -218.
[4]. Flower, P., and Ragas, W. (1994), "The Effects of Refineries on Neighbourhood Property Values," Journal of Real Estate Research, Vol. 9, No.3, pp. 319-338.
[5]. Lancaster, K. (1966), " A New Approach to Consumer Theory, Journal of Political Economy," Vol. 74, No.2, pp.132-157

Paper Type : Research Paper
Title : Relationship between CEO Pay and Firm Performance:Evidences from Malaysia Listed Firms
Country : Malaysia
Authors : Shakerin Bin Ismail, Natalie Vivienne Yabai, Low Joe Hahn
: 10.9790/5933-0361431  logo

Abstract: This study investigated the relationship between CEO pay and firm performance (return on asset, return on equity and profit margin) of 100 companies from the consumer product sector in Malaysia listed in Bursa Malaysia from 2006 to 2010. The research question for this study was will the payment of CEO affects the company's performance? Overall, most of the attestations results were found to have a relationship between CEO pay and firm performance. The correlations and regressions among the sub-variables of the firm performance and the CEO pay were found to be consistently positive ranging from weak positive to the strong positive.
Keywords: CEO Pay, Firm Performance, Agency Problem, Corporate Governance

[1]. Abowd (1990). "Does Performance-Based Compensation Affect Subsequent Corporate Performance?". Industrial and Labor Relations Review 23, February, pp. 52-72.
[2]. Abowd, J.M. & Kaplan, D.S. (1999). Executive compensation: Six questions that need answering. Journal of Economic Perspectives, 13, 4: 145–68.
[3]. Adams, R. B. (2012). "Governance and the financial crisis". International Review of Finance, Vol. 12 (1), pp. 7-38.
[4]. Agrawal and G. Mandelker (1987). "Managerial incentives and corporate financing and investment decisions". Journal of Finance 42, September, pp. 823-38.
[5]. Aggarwal R, Samwick A, (1999). Executive compensation, strategic competition, and relative performance evaluation: Theory and evidence. The Journal of Finance, 54: 1999–2043.

Paper Type : Research Paper
Title : Causes of Default on Micro - Credit among Women Micro - Entrepreneurs in Kenya. A Case Study of Women Enterprise Development Fund (Wedf) Msambweni Constituency
Country : Kenya
Authors : Rashid Mwatemo Kamanza
: 10.9790/5933-0363247  logo

Abstract: The government of Kenya has developed many credit schemes aimed at providing cheap credit to women and the disadvantaged groups in the society however many of these programs have sustained heavy losses due to poor loan repayment. The main objective of this research was to establish the causes of default in micro-credit advanced to small scale women entrepreneurs by WEDF within Msambweni Constituency in Kenya. The specific objectives to be investigated were how business failure influences loan repayment, the influence of gender roles on loan repayment, the influence of borrower's entrepreneurial skills on loan repayment and how diversion of loan funds by borrowers affected the repayment of such loans. The study targeted a total of 74 women groups operating in the constituency which had benefited from the facility. Out of the 74groups, 19 groups were sampled each with membership of 10members, out which 4 members were picked from each of 19 groups using a simple random sampling for each stratum, so that every member of the sample population could have an equal and independent chance of being selected as a respondent. Data was collected by use of structured and semi-structured questionnaire and analysed by using quantitative technique and tabulated frequency tables, pie charts and bar graphs. The study found out that the amount of money given by WEDF was inadequate for investment that would generate returns to repay the loan and sustain the business and the entrepreneur, multiple and competing gender roles robbed off majority of the women entrepreneurs their time to attend to businesses; many did not find the applicability of the training attended in the running of their business and diversion of loans was true and it lead to repayment problems as the funds were used for other critical purposes but un intended. The recommendations are, the amount of loan advanced to women entrepreneurs be increased so that they can have adequate capital, loan beneficiaries be trained and advised to have other income generating activities so as to avert diversion of loan funds for other purpose.

[1]. Arsyad, L. (2006). Assessing factors affecting the repayment rate of microfinance institutions: case study of village credit institutions of Gianyar, Bali. GadjahMada International Journal of Business, 8(2), 247-273.
[2]. Awoke, M.U. (2004).Factors affecting loan acquisitioned repayment patterns of smallholder farmers in Inlka North-East of Delta State Nigeria. Journal of Sustainable Tropical Agricultural Research, 9, 61-64.
[3]. Chirwa, E.W. (1997). An econometric analysis of the determinants of agricultural credit repayment in Malawi. African Review of Money and Banking. Supplement of the Saving and Development Journal, 1(2), 107-119.International Journal of Business and Social Science Vol. 1 No. 2; November 2010 158
[4]. Conroy, J.D. (2002). Microfinance in Malaysia: Time to rebuild. The Foundation for Development Corporation. Brisbane. Australia.
[5]. Derban, W.K., Binner, J.M., & Mullineux, A. (2005).Loan repayment performance in community development finance institutions in the UK. Small Business Economics, 25, 319-332

Paper Type : Research Paper
Title : Disinvestment of Public Sector in India: Concept and Different Issues
Country : India
Authors : Sri Santosh Koner , Professor Jaydeb Sarkhel
: 10.9790/5933-0364852  logo

Abstract: This paper gives the definition of disinvestment, states the difference between disinvestment and privatisation, gives a brief account of public sector in India and changes in government policy towards the public sector. This Paper also consider some issues related to disinvestment such as why disinvestment, how much disinvestment, how to make disinvestment etc and conclusion.
Key words: Disinvestment, Government Policy, Management, Privatisation, Public Sector.

[1]. Arsyad, L. (2006). Assessing factors affecting the repayment rate of microfinance institutions: case study of village credit institutions of Gianyar, Bali. GadjahMada International Journal of Business, 8(2), 247-273.
[1]. Anshman, V. Rabi (2003), "Disinvestment of PSUS", Economic and Political Weekly vol.XXXVIII No. 10 (March 8-14, 2003). [2]. Ahluwalia, Montek Singh "Economic Reforms - A Policy Agenda for the Future". The Indian Journal of Commerce, Vol. 54, No. 3, July- September 2001

[3]. Datt &Sundaram,(2008) Indian Economy, S. Chand Publication, New Delhi.

[4]. Ganesh, G (1998), Privatisation Experience around the World. Mittal Publications, New Delhi.

[5]. NaibSudhir (2004), Disinvestment in India Policies, Procedures Practices, Sage publications. New Delhi

Paper Type : Research Paper
Title : Research paper on Case laws of Fraud, forgery and Corruption in Banks and Financial Institutions in India
Country : India
Authors : Hari Ram Anthala,
: 10.9790/5933-0365357  logo

Abstract: Corruption in civilized society is disease like cancer which is not detected in time is sure to spread its malignance among the polity of the country leading to disastrous consequences. Corruption is opposite to democracy and social order and being of only anti-people but also due to fact that it effects the economy of a country and destroy its cultural heritage. It poses threat to the concept of constitutional governance and shakes the very foundation of democracy and rule of law. The purpose of this study is get rid from fraud and corruption committed by the criminals, outsiders customers and employees of the banks and financial institutions and other State, Central and Local bodies, public and private sectors. The detection of fraud and corruption has become a big problem. This phenomenon surprisingly is not limited to a particular area, city, or country. It is throughout the world. The word fraud is defined under Sec. 17 of the Indian Contract Act, 1872 and Forgery is defined under Sec.163 of the Indian Penal Code, 1860. The main objectives of this research paper are as under:

Key Words: Fraud, corruption, forgery, Consumer Protection Act, CBI, CVC, Police, Banking &financial institutions

1 . Through Inspector of Police, CBI/SPE, A.P. Criminal Appeal No.1688 of 2008 with No.1700 of 2008 decided on
December3,2012 (2013) 2 SCC 162:
2 . UnderSec.420 of IPC and Sec. 420, 468 and 471 read with Sec.468 IPC and Sec. 13(2) Read with Sec.13 (1) (d) of Prevention
of Corruption Act, 1988
3 . Under Sec.120B of IPC, 1860 vide judgment &order dt.30.4 .2009
4. Under Sec.420B of IPC, 1860
5 . Under section 13(1) (d) of Prevention of Corruption Act, 1988

Paper Type : Research Paper
Title : Assessment of the Effectiveness of External Control Institutions on Public Funds Management: Evidence from Ondo State Nigeria.
Country : Nigeria
Authors : Olurankinse felix pH.d, Bayo fatukasi pH.d
: 10.9790/5933-0365867  logo

Abstract: The paucity of funds in the government treasury today vis-avis the public tremendous demand for social and infrastructural facilities and the attendant problems of wide spread economic crimes such as corruption and fraudulent practices necessitated the establishment of external control institutions by the government as a way of suppressing the surge of mismanagement of funds in our public sectors. Despite the presence of these control institutions, the number of public officers engaging in corrupt acts and fraudulent practices is frequently on the increase. A pertinent question that readily comes to mind therefore is to what extent have these institutions been able to reduce these crimes? The study was carried out purposely to look into the activities of some of these institutions in order to determine their level of effectiveness. The study made use of well structured questionnaires designed on five points likert rating scale. Two hundred copies of questionnaires were administered to public officers drawn from the Ministries, Parastatals, Corporations and Agencies. One hundred and sixty six copies of the administered questionnaires were retrieved from the field survey. Data obtained from the questionnaires response were presented in tables and the analysis was done using descriptive and empirical tools. The descriptive analysis employs the use of tables, percentages and charts to describe the characteristics of the responses in the questionnaire. The empirical analyses employed the Censored Logistic regression of the Maximum likelihood technique to determine the relationship between effectiveness of external control and the three major factors. The result of the study shows that there is mismanagement of funds in our public sectors identified by fraud and corruption. Also, there is lack of accountability and transparency in managing public funds. The study recommends the need to strengthen Nigerian law enforcement and anti-corruption legislation to make external control independent of the executive. Also funding of these institutions should be autonomous and should be charged against the consolidated revenue fund.
Keywords: Public Fund, Control Institutions, Economic Crimes, Effectiveness, Accountability

[1]. Akanbi, M. (2005) Corruption and challenges of good Governance in Nigeria in Lai Olurode and Remi Anifowose (eds) Rich but Poor, Corruption and Good Governance in Nigeria, Lagos.
[2]. Aransi, I. O (2008) Bureaucratic Corruption in the public service. A case study of the Nigerian local Government in Adeyemo D. O. And Olojede, I.
[3]. Otite, O. (1986) On the Sociological study of corruption in Femi Adekunle (ed) Corruption in development, Ibadan, University press.
[4]. Sahara Africa (2002) Corruption Denied the ordinary citizen the basic means of livelihood.
[5]. Shehu, A.Y (2004) Combating corruption in Nigeria: Bliss or Bluster?, Journal of
[6]. financial crime,12(1):69-87

Paper Type : Research Paper
Title : Indian Stock market and Aggregate macroeconomic variables: Time Series Analysis
Country : India
Authors : Mohanamani. P , Dr. T. Sivagnanasithi
: 10.9790/5933-0366874  logo

Abstract: This study investigates the impact of macroeconomic variables on the behaviour of Indian Stock market. Monthly data about six macro economic variables such as BSE Sensex, Call Money rate, Exchange rate between Indian Rupees and US dollar, Foreign Institutional Investment, Industrial productivity, money supply and whole sale price index over the period 2006:04 to 2013:07 has been taken for study. Descriptive Statistics, Pearson's correlation matrix, Unit root test and Granger Causality tests have been applied to test the relationship between stock market and the above mentioned macroeconomic variables. The analysis reveals that Indian stock market is positively whole sale price index, money supply and industrial productivity. The exchange rate and inflow of foreign institutional investment are found to be insignificant to Indian Stock market. In the Granger Causality sense, whole sale price index and industrial productivity influence the stock market to a great extent.
Keywords: Macro economic variables, Indian Stock Market, Unit root tests, Granger causality test.

[1] Abdalla, I. S. A. and V. Murinde (1997), "Exchange Rate and Stock Price Interactions in Emerging Financial Markets: Evidence on India, Korea, Pakistan, and Philippines," Applied Financial Economics 7, 25-35.
[2] Ashima Goyal 2011,"History of monetary policy since independence", Indira Gandhi Institute of Development Research, Mumbai, WP-2011-018, September 2011.
[3] Bhattacharya, B. and J. Mukherjee (2003), "Causal Relationship between Stock Market and Exchange Rate. Foreign Exchange Reserves and Value of Trade Balance: A Case Study for India", The 5th Annual Conference on Money and Finance in the Indian Economy on January 2003.
[4] Bhattacharyya, B., Mukherjee, J. 2006. Indian Stock Price Movement and the Macroeconomic context - A Time Series Analysis. Journal of International Business and Economics 5:1, 167-181.
[5] Bahmani-Oskooee, M. and A. Sohrabian (1992), "Stock Prices and the Effective Exchange Rate of the Dollar" Applied Economics 24, pp:459-464.

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