International Academic Research Journal of Economics and Finance (IARJEF) - ISSN : 2227-6254 (Print)

Impact Factor - 68.16 (ICV) 2015

International Academic Research Journal of Economics and Finance (IARJEF) is a Double-blind peer-reviewed quarterly journal, published by Academic Research Publishers. The journal publishes research papers in the fields of Economics , Finance, Business, Marketing, Human resource management and relevant subjects. The journal is available only on print edition and the current issue can be viewed online. Authors can also download current article from online version.

Vol No. 2 Issue 1 : July 2013
Inflation in India: Empirical analysis using VAR Approach Pages From : 01-08
Author(s) : MadhuSehrawat,A. K. Giri
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   Central Banks across the countries are moving away from single indicator to multiple indicator approach towards conducting monetary policy. Further, diagnosis of the headline inflation alone could be misleading for policy purpose because inflation increases due to transitory factors also. To deal with such situations the concept of core inflation helps in determining the underlying trend in the headline inflation in formulating credible monetary policy to attain the price stability objective. In this context, this study explores the determinants of headline and core inflation for the period 2004 to December 2012 in Indian economy by employing Vector Autoregressive method It is found that both core and headline inflation variables have co-integrating relationship with the Index of Industrial Production, Reserve Money, Broad Money, Gold Prices, and Crude oil Prices. The granger causality results suggest that Index of Industrial Production causes headline inflation and core inflation (WPI excluding fuel and power). Broad Money causes core inflation2 (WPI excluding fuel and power), whereas crude oil price causes all three indicators of inflation (headline, core inflation1: WPI excluding food articles and core inflation2: WPI excluding fuel and power). It has been found that both crude oil price and index of industrial production are most important variables in explaining the variation in inflation. Thus the most significant impact on inflation comes via crude oil price and index of industrial production.

The Importance of Corporate Social Responsibility OnCompany Performance in Malaysia Pages From : 09-16
Author(s) : Selvan Perumal,Abdul Rahim Othman,Saed Adnan Mustafa
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   The concept of social responsibility of corporations has engendered considerable interest in Malaysia in recent years.While previous research on the relationship between corporate social responsibility and company performance haslargely been based on international data, this paper reviews the relationship between the adoption of corporate social responsibility dimensions and the company performance of public listed companies. 200 responses were received from apopulation that had already working in Malaysian public listed companies. The results derived from multi-groupstructural equation modeling within AMOS 7.0. Furthermore this paper found a significant relationship between economic, philanthropic and company performance. The findings imply the need for public listed companies, particularly main and ACEboard, to strategically leverage the effect of CSR on company performance.

An Empirical Analysis of the Relationship Between Stock Market Indices And Macroeconomic Variables: Evidences from India Pages From : 17-24
Author(s) : Pooja Joshi,A K Giri
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   The purpose of this study is to investigate the relationships between stock prices and macroeconomic variables in India. For this purpose the techniques of unit root tests, multivariate co-integration test and the Granger causality test have been applied between the BSE Sensitivity Index and the macroeconomic variables, viz., 91 days T-bills rate (TB), Foreign Institutional Investors (FIIs), Reserve Money (RM), Money Supply (Narrow Money-M1, Broad Money-M3), Gold Prices (GP), Crude Oil Prices (CP), Index of Industrial production (IIP), Foreign Exchange Reserve (FER), and Real Effective Exchange Rate (REER) using monthly data for the period from April 1994 to December 2012. The analysis reveals that macroeconomic variables and the stock market index are co-integrated. The granger causality test result shows that there exist unidirectional causal relationship from Foreign Exchange Reserve (FER) and T-Bill Rates (TB) to BSE Sensitivity Index, which shows that these two variables leads BSE Sensitivity Index, however, there is neither unidirectional nor bi-directional causal relationship between other macroeconomic variables with BSE sensitivity index during the period of study.

Impact of Brand Building Activities on the Shareholder Pages From : 25-33
Author(s) : Dr. S Sudalai Muthu,Suhas M Avabruth,Chandrashekar P
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   The importance of intangible assets has increased tremendously in the recent period. The significant influence of these intangibles on the shareholders value has been empirically proved and well documented for the developed economies. In our paper we try to examine the effect of brand building activities on shareholder’s value in Indian context using dynamic panel data model. We use advertisement and R&D expenditure as proxy for brand building activities and market value of equity and profits as a proxy for shareholders value. Our study reveals a significant influence of these spending on shareholder’s value on contemporaneous and temporal basis, but the effect of these spending when compared to the developed markets is muted and we also observe higher effect of advertising than the Research and Development as expenditure on R&D is comparatively less in India and R&D is much more risky than the advertisements. Our study based on the division of the data into large and small cap reveals a non uniform effect of advertising and R&D on large cap and small cap stocks. R&D and Advertising expenditure has a significant and profound effect on the large cap companies, where as the effect is subdued in case of a small cap companies.

The Effect of Fiscal Policy on Economic Development of Gulf Cooperation Council Countries Pages From : 34-42
Author(s) : Mr.Muteb Ahmed Almihbash
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   Fiscal policies can be defined as instruments that governments use to control economic development and growth. GCC countries consist of six Asian countries namely: Bahrain, Kuwait, United Arab Emirates, Oman, Kingdom of Saudi Arabia and Qatar. The most common fiscal policy instruments that a government can use to manage its economic development are three: taxation, public debt and government expenditure. Not much has been done on the GCC countries. This is the knowledge of GCC economics that the study presents. The objective of the study was to determine the effect/ impact of fiscal policy on economic development of GCC countries. In order to achieve this objective, the researcher used time series data from 1990 to 2011. The GNP per capita growth rate was used as a dependent variable while taxation and public expenditure were used as independent variables. The results of the analysis indicated that only Qatar had a direct positive impact between fiscal policy and economic development as it was expected. Therefore, a combination of policies is recommended in the case of GCC countries for desirable economic development to be achieved.