Journal Press India^®

We take pleasure in bringing-out this issue of the journal which provides us several scholarly contributions dealing with some of the essential questions related to finance, banking, investment and development studies. The papers in this issue show how financial systems are evolving with an increasing multiplicity, automation of activities and sustainability on a global scale. The submitted papers cover a wide range of topical research in the areas of capital market and exchange rate dynamics, ESG investing, development banking, micro-financing, and financial inclusion, among others. Submitted papers offer insights which are of theoretical, contextual and practical use to researchers, regulators, and policy makers as well as the industry practitioners.

The issue opens with the article, “Unveiling Causal Effects: Indian Stock Market Volatility and Exchange Rate Dynamics” by Khushboo and Kailash Chandra Pradhan. The study enhances our understanding of the link between stock market volatility and exchange rate in India. This study employs TARCH and the vector error correction methodology to uncover interesting sector specific dynamics and the effects of equity market volatility on currency returns. The study adds to the literature on financial integration and macro-financial stability in emerging markets. In addition, Arup Bramha Mohapatra’s article, “Exploring Return and Volatility Spillovers across Traditional and Emerging Financial Markets using Quantile VAR Analysis” examines return spill overs between equity, commodity, currency and cryptocurrency markets. The research reveals evidence of asymmetrical impact of volatility in the stock market on the Australian dollar as well as in the share markets of other country as per the state of international markets.

Capital market development is further explored through the contribution of Ashima Karmakar, Bhaskar Goswami, Sourav Chakraborty and Mukulika Roy titled “Macroeconomic Determinants of the Frequency and Volume of Indian IPOs”. Analysis of more than a thousand IPOs shows that public issue activities are affected chiefly by macroeconomic factors such as inflation, exchange rates, liquidity, and industrial production. The report highlights that the existing situation of the economy and the predictability of policy matter for an active primary capital market. The focus of the article “Impact of Capital Expenditure on Financial Variables of Listed Power Sector Companies and their Stock Performance Evaluation” by Bindal Totlani and Pankaj B. Trivedi on corporate investment decisions and firm valuation. The power sector is a capital-intensive sector where valuation efficiency is raising serious issues. This shows that capital expenditure engenders financial growth.

The banking sector’s digital transformation is changing customer experiences. In his paper “Determinants of Customer Satisfaction in E-Banking: Service Quality and Behavioral Insights”, Prabakaran Vijayan throws light on the determinants relating to customer satisfaction with respect to the banking sector of Oman. The research finds that innovation, transaction speed, and user engagement have significant effect on satisfaction, thus indicating the strategic importance of service quality and digital innovation in financial services. The issue also focuses on sustainable and responsible investing. The paper “From Awareness to Adoption: An Empirical Analysis of Stakeholders’ Perception on ESG Derivatives” by Sayam Sweta Parija and Gouri Prava Samal contributes timely insights on the nascent discourse on ESG-linked financial instruments in India. The challenges and the opportunities were examined by authors under ESG derivatives. Also, there is a requirement of standards for regulators along with developers, investors, and educators.  This contribution is highly relevant as financial markets are increasingly aligned with global sustainability goals and climate-related financial risks. In Amit Mirji’s article “Does Social Media Investor Sentiment Predict Short-term Abnormal Returns? Evidence from NIFTY 100 Stocks around Earnings Announcements”, the increasing impact of digital technologies on investment behaviour is examined. The study shows how the use of social media platforms is evolving with respect to the dissemination of information and the decision making of the investors. This study adds to the emerging areas of behavioral finance and financial technology through sentiment analysis and event-study methodologies.

In the article “Do Green Dividends Attract Millennial and Gen Z Investors? Evidence From the FMCG Companies” By Adarsh Mishra, Abhishek Srivastava and Audhesh Kumar, the investor’s preferences are explored further through the lens of sustainability. The paper takes on a very pertinent issue relating to the investment behaviour of younger generations who are increasingly motivated by environmental and social impact apart from financial returns. The results have implications for corporate dividend policies and ESG-focused investment strategies. The issue also shows how important finance can be for development and inclusion. Through her paper “Microfinance as a Catalyst for Women’s Economic Empowerment in Rural Kerala”, Nimisha Wilson demonstrates how microfinance initiatives, SHGs (Self-help groups) and interventions can increase women’s economic participation and empowerment.  Through the study, we come to know the developmental importance of inclusive finance for growth.

Ultimately, Hanumant Bhajantri’s write-up on ‘Determinants of Micro-enterprises’ Access to the Government Financial Assistance Programme: A Case Study of the Pradhan Mantri Mudra Yojana’ offers important proof regarding access to formal financial assistance among micro-entrepreneurs. In the study, the identification of demographic and regional determinants of loan access contributes to policy discussions on financial inclusion, entrepreneurship development and inclusive economic growth. The articles in this issue show how finance today has become a multidimensional phenomenon. They show that financial markets are affected not only by economic fundamentals but also by technology, sustainability, psychology and inclusive development objectives. The issue is a reflection of traditional finance research overlapping with emerging topics such as ESG investing, digital finance, social media analytics, and financial inclusion.

In this issue, our thanks go to all authors for their great contributions, to the reviewers and their rigorous and constructive valuable comments, and to the editorial and publication teams for their efforts. We hope that this research will spur further academic research and evidence-based decision-making for academics, practitioners, regulators, and policymakers alike. We encourage our readers to challenge these articles and continue their journey of knowledge in the sectors of finance, banking, investment and sustainable development.

Editor-in-Chief
Prof. Prashant Sharma

Associate Editor
Dr. Sushma Verma