Volume 4  •  Number  6  •  June  2010

Emerging Issues Involved In Cross-Border Securitization - A Critical Review

Cross-border securitization can take place without a governing country law, or under a very lax, fully enabling, country law. Yet, market and institutional intermediation are unlikely to arise, let alone flourish, without a legal infrastructure that provides uniform, predictable, stable rules of behavior. Or in other terms, international securitization is a process in which companies raise the funds from the foreign established capital markets. Traditionally, companies raise their capital by issuing securities for equity participation in the company or through loans to the company. In such a case, the security holder has recourse to the company itself for the repayment of their debt and the same is not immune from the risk of the company being bankrupt. However, this risk is removed through securitization, where the source of repayment is separated from the company and, thus the security holder is not dependent on the company for the repayment and not threatened by the company bankruptcy.

Swapneshwar Goutam
Hidayatullah National Law University
Raipur
Chhattisgarh
swami_swami1986@yahoo.co.in

Deepeshwar Goutam
Indian Institute of Planning and Management
 New Delhi
 

EVA is an acronym for Economic Value Added. It helps in measuring the corporate performance. EVA is not only a measure of performance, but also a framework that helps decision makers in an organization to bring in organizational change. It helps in providing complete financial management and incentive compensation system that helps in improvement of the professional lives of everyone in an organization by making them more empowered. EVA stands as a unique tool amongst most others because it includes a charge against profit for the cost of the entire capital that a company employs. This helps the management in producing much more wealth for shareholders, customers, and their own selves.

Dr.Himanshu Choudhary
Assistant Professor
Institute for International Management and Technology,Gurgaon ,Haryana
dr.himanshu.c@gmail.com

Vandana Sharma
Marketing Fellow
Adam Smith Institute of Management
Gurgaon,Haryana
 

Global Financial Crisis And Stock Return Volatility In India

In recent years, there has been a lot of noise in the media about stock market volatility. Market volatility has drastically increased in recent days and emerging as well as mature economies have been passing through a turbulent period, as reflected in all financial markets and asset classes. In the last year, we had been bombarded by media coverage of the financial crisis in US (the credit crisis, bankruptcies of US financial institutions, the bailout plan, etc.) which had added to this volatility. Market volatility had spiked, and political nations experienced turbulence that spilled over to all capital markets. The global economic slowdown, the US real estate decline, the credit crisis and the reversal in the resources trend created a great deal of turbulence and worry in the capital markets. Financial institutions and other companies around the world have been affected by volatility in the share and property markets.Shares and properties have been the asset types most affected by the recent market volatility. They are known as growth assets, and whilst they are inclined to a higher amount of risk compared to defensive asset types such as cash or fixed interest, they are also known for delivering higher returns over the long term. The relationship between risk and return cannot be avoided. The higher the risk, the higher the potential return.

P.K.Mishra
Senior Lecturer in Economics
Siksha O Anusandhan University
Bhubaneswar
pkmishra1974@gmail.com

K.B.Das
Professor
Department of A & A Economics
Utkal University
Bhubaneswar
drkbdas@gmail.com

B.B.Pradhan
Professor and Registrar
Siksha O Anusandhan University
Bhubaneshwar
registrar@soauniversity.ac.in

The Economic Analysis of Expectation Formation And The Rational Expectation Hypothesis

The idea of "rational expectations" has had a profound impact in shaping the economic theory. More dramatically, it has shaken the foundation of macroeconomic theory and has been associated almost exclusively with the so called New Classical revolution in macroeconomics. This idea is revolutionary because it attempts to focus attention on the underpinnings of economics: individual behaviour. Essentially, it enhances the behavioral assumptions of the "rational economic man" made by the conventional economic theory. This enhancement is done by extending the notion of rationality to the learning process. How do people learn? How do they acquire and process information to make accurate decisions? How do they handle uncertainty? More generally, do they posses the cognitive abilities to undertake complex decisions in an uncertain world? These questions were addressed implicitly by John Muth in explaining expectational behaviour. In his famous pathbreaking article (1961), Muth observed that even though expectations play a very important role in shaping the behaviour of economic agents, no theory of expectation formation was developed that was consistent with empirical evidence and principles of economic theory.

Dr.Aminul Islam
Assistant Professor
Jangipur College
Murshidabad,West Bengal

aminulislam177@gmail.com

A Study On The Preferences of LIC Policy Holders Towards Acquisition of Policies

 The process of globalization facilitated the entire country to serve the populace in a better manner through the invasion of Structural, Legal and Financial reforms. The process of globalization has been tunneled through many stages of liberalization, in order to cater to the needs and demands of the entire country. This process of liberalization warrants many public sector undertakings to imbibe the structural changes in their fold of operations to the tune of changes in the market structure, from monopoly to perfect competition. During the process of liberalization, LIC was one of the organizations to register the changes through Malhotra committee recommendations. Though LIC is the only corporation having 52 years of insurance expertise and 11 lakh agents, it also needs to render insurance services not only to the tune of an insurance regulator, but also according to the modern practices of new entrants in the insurance industry. It is an order of the day for LIC to bring forth changes in the policy- not only in marketing the insurance schemes, but also to register the views and opinions of prospects and policy holders during the moment of sale. Since inception of LIC, the insurance market in India was driven by sale of policies out of the efforts of agents rather than purchase from the policy holders.

M.P.Pandi Kumar
Sr.Grade Lecturer
PSG Institute of Management
PSG College of Technology
Coimbatore,Tamil Nadu
rajpanikumar@gmail.com

Dr.V.Manickavasagam
Professor
Department of Corporate Secretaryship
Algappa University
Karaikudi,Tamil Nadu

Performance Evaluation : A Comparative Study Between Indian and Foreign Equity Mutua Funds

Saving for the future is good. Investing for it is even better. Mutual funds have many benefits that make them one of the most efficient, cost–effective, and easy investments available. They are also ideal vehicles for individual investors who don't have the time, willingness or ability to manage their own portfolio of bonds or stocks. Indian mutual fund industry is one of the fastest growing sectors in the Indian capital and financial markets. The mutual fund industry in India has seen dramatic improvements in quantity as well as quality of product and service offerings in recent years.

Dr.V.Rama Devi
Professor
School of Management
KL University
Guntur,Andhra Pradesh

Nooney Lenin Kumar
Assistant Professor
Dept. of Management Science
Swarna Bharathi Institute of Management Science,Khammam,Andhra Pradesh
lels@rediffmail.com