Advances In Management

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Advances In Management






Vol. 9(3) March 2016

Analysis of risk and return of traditional and socially responsible investing (SRI): an empirical study of Asia and India

Rangotra Rahul

The study explores if there is any significant difference in the risk and return of the investment in socially responsible companies and traditional companies? For comparing the SRI investments with traditional investment, monthly returns of S and P traditional Broad Market and SRI indices at Asia and India level of last 10 years or from the year from which the index was started whichever was earlier were used for analysis. For analysing the significant difference between the average returns and variance (risk), t and f-test are respectively used in the paper. It is found that there is no significant difference between the SRI investment and traditional investments with one exception i.e. variance (risk) is significantly higher in S and P Asia Alternative Energy Index than S and P Asia Pacific BMI (Broad Market Index).

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Sustainable Development impossible without shift in Economic paradigm

Baber Hasnan

The world seeks desperately a change. People realize that important social, environmental and economic shifts are afoot. There are now over seven billion humans on the earth. Yes, technology is helping us to communicate, systematise and learn on a global scale. Developing economies are growing in all continents and the ‘global middle class’ is bigger than ever before. Yet disparity between the worlds’s rich and poor continues to grow wider, both between and within countries. The contemporary world economic crisis which may be followed in years to will be triggered by demographic and climate change, population increase and political volatility – exposes fundamental weaknesses and even flaws, not just in the operations of the banking system, but in the economic fundamentals that have been generally accepted until now on both Left and Right – bogus as they were at a time of individualism and the refusal of traditional wisdom. Alternative economic paradigms may be possible, but in order for these to be taken seriously, it needs to be confirmed that they can become the basis of a successful economy and the finest way to do that is to find examples of practical application of these ideas i.e. models of alternative practice.

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The Threshold Effect of Financialization of Non-financial Corporates on Capital Expenditures -Evidence from China

Xiao Ming, Cui Chao, Guo Ying and Bushra Sarwar

Financialization of non-financial enterprises is an important part of economic financialization. Using financial statements of China’s non-financial listed companies during period 2007-2014, this study has econometrically analysed the relationship between financialization and capital expenditure. This study finds that the financialization is negatively associated with capital expenditure threshold effect. The increase in Asset-Liability ratio will increase the negative impact of financialization on the capital expenditure and the increase of operating income growth will ease negative effect of the financialization on capital expenditure. This study will be helpful to have better understanding of finalization of non-financial enterprises specifically for Chinese non-financial listed firms.

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