Sep '2021


The IUP Journal of Financial Risk Management

ISSN: 0972-916X

A 'peer reviewed' journal indexed on Cabell's Directory, and also distributed by EBSCO and Proquest Database

It is a quarterly journal that focuses on identifying Financial risk in Capital/Debt/Forex markets and their management models; Derivatives as Price Discovery Tools and Hedging devices; Hedging techniques; Asset-liability management; Organizational culture, Risk-bearing capacity and Leadership role in management of risk. The journal provides a platform for cutting-edge research in the field of financial risk management.

Privileged access to Online edition for Subscribers.

Focus Areas
  • Identifying Financial Risk
  • Risk Management Models
  • Accounting for Derivatives
  • Risk-Hedging Techniques
  • Asset Liability Management
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Article   Price (₹) Buy
Global Cues and People's Reactions: A Twitter Sentiment Analysis
50
Feasibility of Creation of Rainfall Risk Market in India: A Perception Analysis
50
Pricing of Orchard Forwards
50
Using Petroleum Stock Derivatives for Hedging Oil Price Volatility Risk: A Study of Iranian Firms
50
Contents : (Sep '21)

Global Cues and People's Reactions: A Twitter Sentiment Analysis
V Vijaya, Ravi Thodla and Seeboli Ghosh Kundu

In the current scenario, every investor has to be alert to local information as well as glocal (global and local) news and cues. Social media and microblogging are some online platforms where the information is shared and gathered quickly involving less cost. Twitter is one such platform, where brief updates are available to the public or a selected circle of contacts. It conveys the author's mood and emotional status. Hence, the content can be regarded as a valid indicator for a temporary, authentic and instantaneous public mood state. The posting of news on social media also triggers stock market movements due to the knee-jerk reactions caused by investor sentiments. This study tries to find the relationship between the sentiments and global cues with respect to the Indian stock market. The large-scale data analysis gives a strong base to witness and predict values by taking into consideration the emotive moods and trends associated with social and economic indicators. The study reveals a significant relationship between public mood as a reaction to global cues and the stock market movement, with special reference to Nifty index. In particular, the Brexit Referendum, FOMC (Federal Open Market Committee) decisions and Bank of Japan monetary policy review are likely to have triggered volatility in the said market.


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Article Price : ? 50

Feasibility of Creation of Rainfall Risk Market in India: A Perception Analysis
Bharath V, Jyothi Shivakumar N M and G Kotreshwar

This paper studies the feasibility of rainfall risk market in India. Perceptional studies on feasibility of creation of rainfall risk market are essential to understand the ecosystem of our capital markets to design, develop and trade rainfall-risk products like rainfall futures and options. The study is exploratory in nature because no research has been done on the feasibility of rainfall risk market based on stakeholders'/experts' perceptions. It is based on the primary data collected through a structured questionnaire and circulated among the selected sample of 208 respondents. The respondents are academicians, executives working in insurance/reinsurance companies, professionals working in commodity/stock exchange, stockbroking, and practicing CA/CMA/CS/CFA professionals. The findings indicate that there exists scope for creating rainfall risk markets in India. However, creating awareness amongst the stakeholders is a prerequisite for creation of such markets. The results of the study are likely to chart a road map that lays down a clear path for design and development of rainfall risk markets.


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Article Price : ? 50

Pricing of Orchard Forwards
Rahul Rangotra

The paper analyzes the applicability of the conventional Cost of Carry (COC) model for pricing orchard forwards in India. Firstly, the paper discusses the assumptions of the COC model and the reasons for its non-applicability in orchard forwards. Secondly, it tries to develop a methodology to estimate the inputs required to apply the COC model in the case of orchard forwards in India. The major problems in using the model are estimating the spot price of the orchards, information asymmetry between the orchard owners/farmers and the dealers and assessing the COC. In the end, the model is modified so that it can be applied to calculate the price of orchard forwards.


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Article Price : ? 50

Using Petroleum Stock Derivatives for Hedging Oil Price Volatility Risk: A Study of Iranian Firms
Zahra Ghadiri, Bharath V and G Kotreshwar

Oil price volatility is one of the major sources of risk impacting Iranian oil revenues. Stabilization of the oil revenues through hedging is necessary for sustaining a stable economy. Petroleum stock derivatives are of interest for hedging oil price volatility. The hedging instruments studied in the present paper are derivative contracts of New York Mercantile Exchange (NYMEX) oil stocks. Employing econometric methods, the paper evaluates risk hedging strategies to attain the optimum position efficiency. The results indicate that applying derivative contracts would lead to substantial reduction in the level of oil revenue risks.


© 2021 IUP. All Rights Reserved.

Article Price : ? 50