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. 3 Issue 4 : March 2015
Hedging of Financial Derivatives: Contrivance to Maximize Returns Pages From : 01-09
Author(s) : Peter Leo Deepak,Dr. R. Amudha
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   The origin of the stock market in India goes back to the end of the eighteenth century when long-term negotiable securities were first issued. However, for all practical purposes, the real beginning occurred in the middle of the nineteenth century after the enactment of the companies Act in 1850, the advantage of limited liability that generated investor interest in corporate securities.BSE and NSE have established themselves as the two leading exchanges and account for about 80 per cent of the equity volume traded in India. There is a perception among the traders that derivatives are highly riskyand at the same time provides high returns. This paper analyzes three financial derivative products of NSE, namely, Nifty futures & options, Gold ETF and Currency futures, in combination as a basket of derivative products, for two opposite trend periods. Though it is highly risky to trade derivative products, it is essential to prove that the risk can be reduced at a maximum level without affecting the returns. The researcher attempts to examine the risk and returns of these products individually and in combo by applying few of the option strategies to prove that the derivatives though risky, it is a viable opportunity to enhance returns or minimize the loss. This paper will help the traders, investors and academicians to understand the derivatives market as also the effective applicability of the trading techniques as well, .

Poverty Alleviation Strategies and New Economic Model in Malaysia Pages From : 17-31
Author(s) : Dr. Mohd Zin Mohamed,Dr. John Antony Xavier
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   Poverty eradication remains high on the national agenda. Malaysia’s seriousness about poverty eradication - one of the millennium development goals - has enabled it to achieve a drastic reduction of the poverty rate from 60% in the 1970s to 3.8% in the 20009. Hard core poverty has been virtually eliminated, declining to 0.7% in 2009. Although the incidence of poverty is low, pockets of poverty exist with high incidence among specific ethnic groups and localities. The New Economic Model (NEM) takes the fight against poverty to even further heights. Unveiled in 2010, the NEM is the roadmap to double Malaysia’s current per capita income of USD 7,000 to USD 15,000-17,000 by 2010 and, thereby, qualify as a high-income country in line with its Vision 2020. This ambition causes the NEM to focus on the lower 40% income households who have experienced a relatively flat income growth rate compared to those in the top 20% and middle 40% households who have enjoyed steep income growth rates over the last three decades. Combining descriptive and analytical methods involving interviews with selected high-level officials directly involved in poverty eradication and secondary data, the paper evaluates Malaysia’s efforts at poverty eradication over the last 50 years. It highlights the approach taken by the NEM in combating poverty. Much of Malaysia’s success has been the result of its macro- and micro-management of poverty eradication. At the macro level, policies and plans spell out the broad strategies to conquer poverty. The determination of poverty eradication as one of the six national key result areas brings poverty eradication under micro scrutiny. Specific policy initiatives and programmes are being implemented to wipe out pockets of poverty. The practical value of this paper is that it offers policy-makers a digest of workable trategies critical success factors in poverty eradication. 
Oil Price Volatility and its Impact on the selected Economic Indicators in India Pages From : 10-16
Author(s) : Dr. P. Srithar,N.Bairavi,G.Mariselvam
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   Crude oil is the most widely used energy resource in the world and it accounts for nearly 40% of the global energy demand and its consumption is estimated to be over 85 million barrels per day. As India is one of the non-OPEC (Organization of the Petroleum Exporting Countries) countries it fulfills its domestic demand by way of import as India has a much lower level of production. Any slight fluctuation in the oil prices can have both direct and indirect influence on the economy of the country. This research paper aims to analyze the impact of oil price volatility on the selected economic indicators of India. Growth in GDP, employment, inflation, industry and business, trade etc is the various economic indicator of a country. For the purpose of this study, GDP, inflation and stock market (NSE) are analyzed to know the impact of oil price volatility on it for the period 2003 to 2013. It evaluates the GDP growth performance and assesses the historical trends of the CPI, NSE and oil price in India. The relationship among oil price, gross domestic product, NSE index and inflation is measured with the help of multiple regression models individually. The study has been made by taking GDP, NSE and CPI as dependent variables and oil price as an independent variable. It is found that there is significant positive relationship between oil price and inflation. Gross domestic product and stock market of India are also affected by the oil price

Stock Price Reaction to Bonus Issue Pages From : 32-41
Author(s) : M. Muthukamu,Dr.S Rajamohan
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   Indian Economy, one among the fast growing economy in the world, has witnessed new heights in the Indian equity markets due to the recent earnings of the Indian companies in the recent times, which has lured the investors both domestic and foreign to show keen interest in making investments in the Indian equities. Investors react to any corporate actions instantaneously, explicitly on the announcement of bonus issues which play a vital role in the fluctuations of share prices. Various studies so far has proved that the behaviour of the investing community towards bonus issue differ according to the interpretations given about the present and future prosperity of the stocks in the respective nations. An attempt has been made in this study, to analyze the behaviour of the share prices in the Indian equity market towards the announcements of bonus issue, taking into account the price movements of the Nifty Index stocks that has announced its bonus issue, and to find out the impact of the price behaviour by comparing the stock performance with the performance of the market index. The purpose of the study is also to comprehend the behaviour of the Indian equity market, whether it aligns or differs with other major global equity markets. To assess the stock price reactions to bonus issue in the Indian equity market, Wilcoxon Matched Pairs Test has been applied in this study. The research has revealed that there is a significant impact on the price movement of shares in accordance with the size of the bonus issue in the Indian equity market as observed in other major global equity markets.