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.

Identifying factors in currency exchange rate estimation: a study on AUD against USD

Abstract: The purpose of this paper is to estimate long-term currency exchange rate and also identify the key factors for decision makers in the currency exchange market. The study is expected to aid decision makers to take positions in the dynamic Forex market.,This study is based on quantitative and fundamental analysis of statistically oriented regression models. The trend of quarterly exchange rates is investigated using 110 variables including economic elements, interest rate and other currencies. This research is based on the same information that banks’ dealers use for the analysis. Ordinary least squares linear regression also known as “least squared errors regression” was used to estimate the value of the dependent variable.,The study concludes that “only Australian economic data” or “only the US economic data” cannot fully reflect the trend of AUD/USD. EUR influences AUD relatively larger than the other main market currencies. Six-month Australian interest rate itself affects AUD/USD trend much more than the six-month interest difference between AUD and USD.,The results indicate that the economic autoregressive moving average model can be used to predict future exchange rate using primary factors identified and not from the generic market or economic view. This helps adjust to the general, common (and possibly wrong) views when making a buy or sell decision.,This is one of the first studies in the context using the information of bank dealers for AUD/USD. This study is highly relevant in the current context, given the significant growth in Forex trade.

Impact of buy-back: empirical study on Indian markets

Abstract: This study empirically investigates the behaviour of share prices around share buy-back announcements by Indian firms using a standard event methodology. It was observed that there was a significant market reaction to the buy-back announcements during the announcement period viz. the announcement date and the day prior to it. The market reaction t persists on the first day after the announcement of buy-backs regardless of the buy-back mechanisms adopted by the firms. The analysis suggests that the share prices which recorded a rapid decline prior to the buy-back announcement remained almost constant for a few days immediately following the announcement and then declined again, but at a much slower pace. A pattern similar to that of the post announcement period was also observed after the occurrence of actual buy-back. This study also examines the firms’ choice of repurchase mechanism, and the link between those choices and the share price reaction.

Financing technology startups: an entrepreneur's dilemma

Abstract: Title – Financing technology startups: an entrepreneur's dilemma.Subject area – Entrepreneurship, finance, technology and innovation, general management.Study level/applicability – This case is suitable for students in finance, entrepreneurship and general management. The case seeks to understand the challenges of funding in technology startups and how they vary from product to service areas.Case overview – Availability of capital, short term and long term, is a major constraint faced by entrepreneurs. In India, in the technology sector, services companies have been able to innovate and grow whereas product‐based companies that survived the challenges of funding have been scarce. Aluru Karthik Prasanth is presented in the case as a young entrepreneur with passion and drive to pursue the commercialization of an idea he developed during his undergraduate studies in engineering. Leaving behind the beaten paths of MTech and employment, he decides to pursue MS entrepreneurship at IIT Madras. As he starts with ...

New Venture Valuation and Venture Capital Perspective: An Industry Level Analysis

Abstract: Valuation of new venture is a key pointer for decision making for both, the entrepreneur as well as the funding venture capitalists (VC). The value depends on certain assumptions which could significantly vary from either perspective as VCs aim at enhancing stake by parting with little money and vice versa for the entrepreneur. Although there exists traditional valuation methods in corporate finance literature none are free from drawbacks when applied for startup valuations due to varied interpretations of missing accounting information, non-existence of comparable companies, problems in estimating risk and discount factors. The objective of this research is to reduce this complexity by integrating industry structure variables in the valuation methods. As per well-established industry organization literature the industry structure variables affects firm performance. This implies that if a new venture is part of an industry characterized by high growth, high product differentiation and low concentration then the venture is expected to have adequate opportunities for superior future performance which is reflected in valuation of the firm. The empirical analysis of this research aims to identify the industry structure effects for a startup which could aid in assessing the performance and hence a robust valuation.

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...