Journal Press India

Editorial

January - June 2024, Volume 11, Issue 1

The present issue of Mudra Journal of Finance and Accounting covers reviews and empirical research articles from diverse fields of accounting and finance, including stock returns and volatility, IPOs, decentralised finance, behavioural finance, ESG, and investment decision-making. The first article in the current issue, "Analysis of Stock Returns Volatility of the Oil and Natural Gas Industry Using GARCH," by Ritika Agarwal and Pratim Barua, aims to analyze and compare the volatility of stock returns of Oil and Natural Gas Corporation (ONGC) and Indian Oil Corporation Limited (IOCL). The second article, “Unveiling the Impact of COVID-19 Fear on the Success of Indian IPOs: A Comprehensive Examination,” by Shivani Kalra, Amit Kumar Singh, Sunidhi Gupta, and Gummadi Gopika Sneha aims to investigate how COVID-19-induced fear affects the immediate profitability of initial offerings in India from early 2020 to late 2021. Nidhi Walia, Poonam Bandha, and Naina Goyal assess the role of decentralised finance using emotion theory and lexicon sentiment analysis in their article "Unmasking the Twitterverse: Analysing Sentiments towards DeFi."

Anisha Sinha, Shanu Srivastava, and V. Shunmugasundaram wrote a study called "Role of Overconfidence as a Mediator between Behavioural Biases and Investment Decisions in Life Insurance." It looks into how overconfidence affects investment decisions and how it acts as a bridge between life insurance investors' behavioural biases and their investment choices. The study reports that overconfidence mediates the relationship between availability, conservatism, and investment decisions. Another study, "An Empirical Analysis of Exchange Rate Volatility in India during the COVID-19 Pandemic and the Russia-Ukraine War," by Shanu Kumar and Abhishek Pandey, examines India's exchange rate volatility against the backdrop of two significant global events: the COVID-19 pandemic and the Russia-Ukraine War. This empirical finding highlighted the immediate effects of the pandemic and geopolitical tensions, as well as potential long-term implications for India's economic environment.

Sunita Nandwani and Gurudatta Japee's article, "Investigating the Risk-Return and Volatility of the Environment, Social, and Governance Index and the Benchmark Indices," compares the risk-return and conditional volatility of the NIFTY100ESG index, the NIFTY500 Index, and the NIFTY100 Index. The study shows that positive shocks exert a more pronounced influence on conditional volatility in comparison to negative shocks. The study has significant implications for stakeholders because it provides insightful perspectives on the risk-return dynamics of sustainable investment and market portfolios. Anil Kumar Mohanty, Mukesh Babu Gupta, and Anup Kumar Roy assess the relationship between macroeconomic indicators and the stock market in their study "Dynamic Relationships between GDP and Inflation with Stock Prices: An Analytical Contemplation in the Indian Context" and report the existence of long-run significant relationships among the variables, finding that GDP positively influences stock prices, while inflation negatively influences stock prices. During the study period, Anil Kumar Mohanty, Mukesh Babu Gupta, and Anup Kumar Roy discovered a unidirectional causality between inflation and stock prices, and a bidirectional causality between GDP and inflation at a 10% level of significance.

The study "Investigation of the Herding Behaviour in the Indian Stock Market during the Russia and Ukraine Crisis: Evidence from the Nifty-50 Index" by Pukhram Rajiv Singh and Prallad Debnath conducted an investigation into herding behavior in the Indian stock market during the Russia-Ukraine crisis. The study found that herding behavior was present during the entire down-market trend, but there was no evidence of herding behavior during the up-market trend. Additionally, the study found that herding behavior was prevalent in markets with medium and low liquidity, while it was not present in markets with high liquidity throughout the entire period. However, the tension period demonstrated the presence of herding in markets with low liquidity, and during the crisis period, it was evident in both high and low liquidity markets.

The review article of the study “Emotional Intelligence and Investment Decision Making: A Systematic Review” by Akash Chaurasia and Krishna Murari examines the influence of emotional intelligence (EI) on investment decision-making (IDM) and also analyses the statistical tools and measurement models used by different researchers. The study's findings indicate a significant positive impact of emotional intelligence on investment decision-making. The study also reveals that financial literacy moderates the relationship between emotional intelligence and investment decision-making, while optimism bias (OB) and risk perception (RP) mediate this relationship.

Dr. Prashant Sharma
Editor-in-Chief

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