Arun Kumar Gopalaswamy

Bio: Arun Kumar Gopalaswamy is an academic researcher from Indian Institute of Technology Madras. The author has contributed to research in topics: Stock market & Emerging markets. The author has an hindex of 6, co-authored 22 publications receiving 110 citations. Previous affiliations of Arun Kumar Gopalaswamy include Asian Institute of Technology.

Trade, Financial Flows and Stock Market Interdependence: Evidence from Asian Markets

Abstract: Liberalization and globalization of Newly Industrialized Economies have contributed to increased integration of capital markets. This study tests whether convergence of macroeconomic variables and enhanced bilateral trade and financial flows causes greater interdependence of markets. Daily closing indices and quarterly differentials in interest, inflation, growth rates, exchange rates, trade of goods and services, direct and portfolio investment were used. Results revealed that markets of Asia are not immune to shocks originating in US although co-movements of macroeconomic variables do not help in explaining level of interdependence. Portfolio flows were found to be important than trade flows in explaining market interdependence.

Long run post issue performance of fixed price and book built IPOs: an empirical study on Indian markets

Abstract: Purpose: The purpose of this paper is to investigate empirically the difference in long run post issue performance of initial public offerings (IPOs) that tapped the Indian primary market through a fixed price offer and book building offer; also to assess the persistence of underperformance between these two routes of offering. Design/methodology/approach: The after market performance of the IPOs is empirically assessed based on their market prices and also taking into consideration the other factors associated with the after market performance such as the period of issue (boom/slump), sector in which the industry is operating, etc. Findings: The results suggest that there is no difference in the direction of performance of the issues post listing in the short run, however in the long run the issues that tapped the market through the book building route seemed to perform far better than the ones that raised money through a fixed price offer. The results also suggested that the average return irrespective of the route of issue remains the same and this is because of the high initial return of issues that tapped the market with fixed price offers. Originality/value: The paper provides useful information about the IPO markets of India and abroad, related literature and theories or hypotheses concerning methods of issue.

Intraday Variability and Trading Volume: Evidence from National Stock Exchange

Abstract: In this article, we investigate patterns in returns, volume and volatility and analyse the volume–return relationship using tick-by-tick data from the Indian equity market. Based on descriptive mea...

An analysis of timing decision in venture capital staged financing: evidence from India

Abstract: Staged financing is a prominent feature of the venture capital investment process With staged financing, venture capitalists (VCs) may choose to either make an investment or delay it at each round The purpose of this paper is to investigate the influence of market uncertainty, project-specific uncertainty and agency problems on these decisions,The study uses data from Indian firms that received venture capital funding between 2000 and 2017 The duration between funding rounds is analysed using survival analysis An accelerated failure time model is used to estimate the influence of market uncertainty, project-specific uncertainty and agency problems on the length of time between funding rounds,VCs delay investment when there are high levels of uncertainty in the market; if market uncertainty increases by 1%, delay in funding increases by more than 6% (almost a month) on average There is no statistically significant relationship found between the funding duration and project-specific uncertainty Agency problems motivate VCs to invest sooner An increase in agency problems results in a reduction of 55% (almost five months) in the length of time before the next funding round,This study has useful business policy implications It provides VCs with real option value drivers such as market uncertainty, agency problems, which influence the timing of decisions in staged investment processes It will help to make the choice between investing and delaying at each round of financing more robust Further, it is useful for VCs to differentiate between market uncertainty and agency problems against the backdrop of their different implications for staging decisions,Few studies have examined staging decisions from a real options perspective in the context of a developed economy and very few from a developing economy perspective This study increases understanding of staging decisions in the Indian context

Internationalization of Indian Enterprises : Patterns, Strategies, Ownership Advantages and Implications

Abstract: The recent spate of large cross-border acquisitions e.g. Tata Steel-Corus, Hindalco-Novelis, and Tata Motors-Jaguar/Land Rover, among others and Greenfield investments by Indian companies have helped in focusing attention on the emergence of new corporate players on the global scene. Indias emergence as a source of FDI outflows is impressive for its level of development. It is argued that the destinations, sectoral composition, motivations, and entry strategies of Indian investments have been changing with magnitudes. This paper examines the sources of Indian companies ownership advantages and trends, patterns and implications. It has been argued that the source of their ownership or competitive advantage lies in their accumulation of skills for managing large multi-location operations across diverse cultures in India and in their ability to deliver value for money with their frugal engineering skills honed up while catering to the largerpart of income pyramid in India.

Determinants of company innovation and market performance

Abstract: Purpose The present study focuses on two basic determinants of company innovation, namely quality practices of top management and process quality management. The purpose of the study is to explore the impact of these determinants on product and process innovation. Determining the impact of these dimensions of innovation on the market performance of a company is also an aim of the present study. Design/methodology/approach A research study was carried out on a sample of 433 Greek manufacturing and service companies. Data was obtained through a structured questionnaire from the Chief Executive Officers of the companies. Exploratory and Confirmatory Factor Analysis is applied to extract and validate all the latent factors considered in the suggested model, while their relationships are determined through Structural Equation Modelling. Findings The analysis of the empirical data shows that both the dimensions of company innovation examined in the present study (product and process innovation) are positively i...