Pradiptarathi Panda

This article examines the impact of spillovers from unconventional and conventional monetary policies during and after the COVID-19 pandemic. The study analyses eight countries—five advanced economies (Australia, Canada, New Zealand, the United Kingdom, and the United States) and three emerging economies (Brazil, India, and South Africa), to assess monetary policy spillovers across eight sectors from 2019 to 2025, using the event study methodology. The results indicate that emerging markets experienced greater sectoral monetary policy spillovers than advanced economies. In the case of conventional monetary policy spillovers, both advanced and emerging markets responded similarly. Monetary policy is one of the most effective policies for guiding sectoral dynamics. The results of this study may help investors and policymakers. JEL Codes : E4, E44, E5

Market-wide position limits (MWPL) and bans on F&O trading in stocks have been enforced in Indian markets since 2004. However, despite the rapid growth in derivative trading volumes in recent years, questions about the optimal position limits and their impact on market quality remain largely underexplored. During the 2019 COVID pandemic, the Securities and Exchange Board of India (SEBI) reduced the MWPL thresholds to 50% of the pre-COVID level to counter systemic risks and extreme market volatility. This regulatory change provides a natural setting to evaluate the impact of changes to MWPL and F&O on market quality in the Indian derivatives market. We find that the changes to MWPL resulted in reduced liquidity and volatility in the spot and futures markets compared to the pre-COVID levels, which declined further during the post-COVID period. However, the volatility in the future markets, particularly the overnight volatility, was greater than the spot market during the ban period. The stocks under repeated bans demonstrated significantly higher overnight volatility in futures, while other volatility measures were higher in the spot market. This analysis offers valuable insights into the evolution of liquidity and volatility in the Indian derivative markets during various pandemic phases.

This study examines the nonlinear dependence and tail dependence of BRICS countries’ stock markets and the contagion effect among Brazil, Russia, India, China, and South Africa (BRICS) countries’ daily stock markets using the COPULA model from January 2000 to February 2019. The study employs the DCC-MGARCH model and Diebold and Yilmaz volatility spillover model to assess the interdependence dynamics across BRICS countries’ stock markets. The copula results suggest that the BRICS country’s stock markets are independent of each other. The conditional correlation between BRICS is negative and statistically significant, suggesting that the negative relationship among BRICS is an important signal for international investors to diversify among these countries and get the economic value of their investment. Further, Brazil, China, and South Africa are the net volatility transmitter, at the same time India and Russia are the net volatility receiver during the study period. The study proposes that policymaker of BRICS needs to interchange views and mutually map policies to appeal to global investment more.

Purpose: The present study aims to verify whether there is a positive (negative) role being played by the institutional investors on the loss-making companies' performance.Design/methodology/approach: The authors employ panel data regression and two-step system generalised method of moments (SYS-GMM) to test the above objective.Findings: The empirical results clearly show that no positive relation is found between institutional investors and loss-making companies' performance.Research limitations/implications: The findings of the study might have significant implications for firms to improve the firms' operational performance [return on assets (ROA)]. Also, the firm's financial performance [return on equity (ROE)] could be improved by increasing profitability which will reflect in the share prices of the firms whereby the performance can build the investors' confidence over the firm. Market performance (Tobin's Q) could be increased by providing more attractive offers and discounts to customers to capture the business opportunities available in the market.Practical implications: The overall findings might have for reaching implications in the manufacturing sector with regard to allowing (disallowing) institutional investors.Social implications: The results of the study may help both companies and institutional investors.Originality/value: This is the maiden attempt to study whether loss-making companies could be positively (negatively) impacted by the arrival of sophisticated institutional investors [foreign institutional investors (FIIs) and domestic institutional investors (DIIs)]. Further, this study is largely different from previous studies in terms of using new variables which are related to firm characteristics and valuation multiples. Further, seeing if the institutional investors tend to enhance the firm performance is curious.

This study applies vector autoregression to capture the relationships among inflation, cotton spot and futures price. Further, the autoregressive distributed lag model has been applied to capture the impact of rainfall on the cotton spot and futures price. The result of this study reveals that cotton spot price positively impacts cotton futures, while rainfall negatively impacts the price of cotton futures. There is no impact of inflation on cotton spot and futures markets. Due to the sensitivity of crops to rainfall, the monsoon plays a vital role in price discovery in the agricultural market. Similarly, inflation is another significant issue linked to agricultural prices. Further, any movement in futures prices driven by the speculative activity of traders in the commodity derivatives does not contribute to changes in the spot prices.

Indian securities markets have undergone significant transformations in the recent past. The paper discusses and documents initiatives taken by the market regulator to expand and deepen the securities markets, including encouraging innovations in financial instruments, improving market efficiency by appropriate and timely regulatory interventions, expanding issuers’ base and investors’ participation for inclusive growth, ensuring regulatory compliance for fair play of market forces. The study helps investors, intermediaries, and regulators outside India to gain insights into recent developments and opportunities they offer to make the Indian securities market their preferred investment destination. The study concludes with the papers’ key findings on “Investor interest and innovative instruments” in the special issue.

This study uses the MGARCH-BEKK model and Diebold–Yilmaz (DY) volatility spillover index to examine volatility spillovers among BRICS countries’ stock markets. The study finds that the own volatility spillover is more than the cross-markets and has increased during the financial crisis. In contrast, the cross-markets volatility spillovers have decreased after the financial crisis. The total net return spillover increased during the crisis period (27.30%) and the pre-crisis period (25.50%) in comparison with the post-crisis period (6.30%) and the whole sample period (10.70%). Brazil is the highest net volatility transmitter among the BRICS countries’ stock markets, and China is the highest net volatility receiver. We learned from the volatility network connectedness that China is highly connected with India regarding volatility. Foreign institutional investors may use this study’s result to find diversification opportunities across the BRICS stock markets. JEL Codes: F3, G11, G12, G15

The present study endeavours to perform a systematic review of the literature related to the impact of corporate governance on dividend policy in the last two decades. This study uses the systematic literature review process . 143 articles were identified initially and subsequently further narrowed down to 66 most relevant articles for the scope of this study. This paper critically examines the influential studies in the literature related to the impact of corporate governance on dividend policy. The literature review related to corporate governance is analysed from two broad perspectives i.e. (a)Impact of Shareholder protection on dividend pay-out and (b) Impact of Controlling stakeholders on dividend pay-out. Our findings are as follows. Firstly, a vast majority of studies have found a positive relationship between better corporate governance practice and higher dividend pay-out. Secondly, the study finds that the majority of the research has been done in the USA and Europe while limited studies have focussed on emerging markets. Finally, our reviews show that there is a dearth of studies that evaluate the impact of the structural changes in corporate governance in various emerging markets. This study contributes to the extant literature in several ways. It highlights the research gaps in this field and provides a potential agenda for academicians and research organizations for future research.