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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