Session Chair: Pradit Withisuphakorn, NIDA Business School

Paper Presentations:

Payment Banks: Sustainable Game Changer or a Passing Fad
Utkarsh Goel, Symbiosis Centre for Information Technology
Rishi Manrai, Symbiosis Centre for Information Technology

In this paper we focus on the recently licensed payment banks which are part of the ambitious Indian banking reforms towards complete financial inclusion. We study the stipulated regulatory framework and examine the need that led to the establishment of these banks. We examine the electronic and mobile banking experiences in other developing countries and discuss how establishment of payment banks is a step forward in the right direction. Further we analyse the huge market potential for these banks and discuss the challenges that need to be overcome to realise the prospects. Moreover, we examine the market and analyse how these new age niche banks may either compliment or compete with the traditional banks depending upon how the latter chose to operate.

Status of Green Banking in Bangladesh (Paper withdrawn/presentation cancelled) Md. Awal Al Kabir

Green banking is such a banking initiative that considers the environment and ecological factors while performing various banking activities. It follows the societal banking approach. Being a developing country Bangladesh emphasizes on the Green banking to ensure sustainable economic growth since 2011 by taking three phase initiatives such as direct and indirect investment in Green Banking; ensuring digital banking (mobile, online), practicing green office management, and capacity building through providing trainings. Last year in 2014 various banks in Bangladesh invested Tk 1423349.79 million for green banking which are three times more than previous year. Almost 77% branches of all banks are providing online services.

Exchange Rate Risk and its Determinants: A Study on Indian Non-Financial Manufacturing Firms (Paper withdrawn / presentation cancelled)
Swagatika Nanda, University of Hyderabad
Ajaya Kumar Panda, National Institute of Industrial Engineering
JVM Sarma, University of Hyderabad

The present study attempted to analyze the exchange rate risks of Indian non-financial manufacturing firms and its implications on corporate decision taking a sample of 295 firms listed in Bombay Stock Exchange (BSE) during the period 1995 to 2011. It also attempted to capture the key determinants of risk and observed that approximately 75 per cent of firms are significantly exposed to exchange rate fluctuations and out of them approximately 93 percent firms are negatively exposed. Most of the net exporter are having negative beta. Large numbers of high mark-up firms are not able to take the advantage of exchange rate pass-through. The firm specific factors like Debt, Asset Turnover and Firm size are significant enough to determine exchange rate risk within the firms.

Board Structure and FIRM Future Prospect: Financial Analyst Perspective
Pradit Withisuphakorn, NIDA Business School
Pornsit Jiraporn, Pennsylvania State University

Agency Theory and Information Asymmetry is the new theory of finance which affects the stock market price reaction. There is no extensive study on the CEO power and Board Structure effect on Financial Analyst Perspective. Staggered boards (or classified boards) constitute one of the most controversial governance provisions. A fierce debate continues on the costs and benefits of staggered boards. We contribute to the debate by investigating how financial analysts view staggered boards. It has been argued that staggered boards promote managerial entrenchment and exacerbate the agency conflict. To the extent that staggered boards are detrimental and the detrimental effect is not efficiently priced in the market, financial analysts should assign less favorable recommendations to firms with staggered boards. Our empirical results bear out this hypothesis, even after controlling for other governance provisions. A propensity score matching analysis also confirms that staggered boards are viewed unfavorably by financial analysts. Finally, further analysis shows that staggered boards are not merely associated with, but likely bring about poor analyst recommendations.