Welcome to Guest !
       IUP Publications
              (Since 1994)
Home About IUP Journals Books Archives Publication Ethics
  Subscriber Services   |   Feedback   |   Subscription Form
- - - - - - - - - - - - - - - - - -- - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
The IUP Journal of Applied Finance
ISSN: 0972-5105
A ‘peer reviewed’ journal indexed on Cabell’s Directory,
and also distributed by EBSCO and Proquest Database


Previous Issues

The IUP Journal of Applied Finance is a quarterly finance journal that showcases empirical research in applied finance. IJAF provides research articles on business environment, regulatory environment, equity markets, debt markets, corporate finance, financial services, portfolio management, international finance and risk management.

Privileged access to Online edition for Subscribers.
Editorial Board
Information to Authors
Focus Areas
  • Business Environment
  • Regulatory Environment
  • Equity Markets
  • Debt Market
  • Corporate Finance
  • Financial Services
  • Portfolio Management
  • International Finance
  • Risk Management
The Impact of Political Instability on Investor Sentiment and Market Performance: Evidence from Tunisian Revolution
Does Derivative Trading Facilitate Price Discovery and Risk Management?
Contribution of Market Intermediaries to the Growth of Securities Market in India: Assessing the Relationship and Impact
The Impact of Futures Trading on Indian Banking Industry
Select/Remove All    
(Oct 2017)

The Impact of Political Instability on Investor Sentiment and Market Performance: Evidence from Tunisian Revolution

--Hayet Soltani, Abderrahmen Aloulou and Mouna Boujelbene Abbes

This paper studies the impact of political instability on stock market dynamics by comparing the interaction between market returns, volatility and investor sentiments before and after the Tunisian revolution. The results of the estimation of simultaneous equations—GMM 2S method—linking the return, risk and investor sentiment confirm that during the period of political stability, investor sentiment did not affect market return and volatility. However, during the period of the Tunisian revolution and thus political instability, significant bidirectional relationship between investor sentiment and market volatility and return is highlighted. These results confirm that investors’ behavior compounds the political instability effect on Tunisian market.

Article Price : Rs.50

Does Derivative Trading Facilitate Price Discovery and Risk Management?

--Mehak Arora and Ramesh Chander

As it is quite obvious that agriculture is a seasonal industry, risk is at all times inbuilt in the trading of commodities. Trading of commodity futures assists in price discovery and management of risk, which as a result reduces the unpredictability in the price of the fundamental commodity. In this paper, an endeavor has been made to scrutinize the relationship between price discovery and prevarication efficiency of commodity futures for five agricultural commodities chosen from diverse categories. The outcomes stated in this paper are essentially projected to catch the attention of policy makers for policy making and the hedgers to invent prevarication tactics. This paper intends to recognize whether futures prices facilitate determination of spot prices or vice versa. The mandatory data for this study was collected from the National Commodity and Derivatives Exchange (NCDEX) of India. The study derived implications using Augmented Dickey Fuller test, Granger Causality test, Johansen cointegration test and estimating the variance of the hedged and unhedged portfolio. The results of the study convincingly point out that futures prices do serve the function of price discovery proficiently for spot prices. The outcomes of the study disclose that commodity futures exchange provides a proficient hedge against the risk emerging from unpredictable prices of chosen commodities.

Article Price : Rs.50

Contribution of Market Intermediaries to the Growth of Securities Market in India: Assessing the Relationship and Impact

--Manjari Agarwal

In today’s world, securities market cannot be imagined without the services of a large number of intermediaries who act as conduits between users and suppliers of funds. Intermediaries help in matching preferences of risk, liquidity and maturity characteristics of both suppliers and buyers of securities. They intermediate in the securities market by establishing a direct relationship between supplier of funds and suppliers of securities. Therefore, to have a comprehensive view of the relationship specifically between securities market intermediaries and securities market developments, this study has been undertaken. The study attempts to explore the relationship, both conceptually and empirically, between the functioning of intermediaries and securities market. The study found that there exists a strong correlation between the value added by securities market intermediaries and share prices in India. There is a long-term relationship between value added by securities market intermediaries (market capitalization per market intermediaries) and share prices in India. Further, both the variables taken for the study are found to be cointegrated. Thus, broadly it can be concluded that intermediaries have provided depth to the securities market, thereby facilitating the flow of funds from investors to demanders of money.

Article Price : Rs.50

The Impact of Futures Trading on Indian Banking Industry

--Nivedita Mandal

Derivatives trading is always at the center of discussion in any financial phenomenon. It has been discussed, argued and defended in many forms as to how the derivatives trading has brought distress and crisis in financial market. While a few derivatives disaster stories were enough to bring the entire business of derivatives under the limelight and make every one worry about unknown risks associated with derivatives, it has gained popularity as a measure of risk mitigation too. This paper explores the impact of futures trading of Bank Nifty Index on the underlying cash market of the sectoral index of Bank Nifty. This is an attempt to study how the onset of futures trading has affected that particular industry in terms of inducing or stabilizing volatility in the spot market. Moreover, the informational efficiency and market integration of the spot market have also been analyzed as a result of futures trading in that segment. GARCH model with futures dummy has been used to analyze the impact of futures trading on spot Bank Nifty Index volatility during the period 2000 to 2013. Two separate GARCH models have been fitted in the pre- and post-futures period to examine the relationship between new information release and spot market volatility following the onset of futures trading. The study has shown that over the time, index futures trading improved the overall performance of the spot market of banking sector by providing better exposure to global factors, by quicker information assimilation, and by reducing the persistence of volatility.

Article Price : Rs.50



- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Click here to upload your Article

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.