Competitive Strategies in

Globalized Economy

Editors

Dr. P. Baskar

M. Banumathi

S. Saravanakumar

Published by

Competitive Strategies in Globalized Economy

Copyright © 2012 by Bonfring

All rights reserved. Authorized reprint of the edition published by Bonfring. No part of this

book may be reproduced in any form without the written permission of the publisher.

Limits of Liability/Disclaimer of Warranty: The authors are solely responsible for the

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i

ANNAMALAI UNIVERSITY Pro-Chancellor Chettinad House

Rajah Annamalaipuram Chennai-600 028

12th July, 2012

Message

Dr.M.A.M. Ramaswamy, B.A., D.Litt.,

I am delighted to learn that the Management Wing of D D E, Annamalai University is

organizing an International Conference on Synchronizing Management Theories and

Business Practices, in association with Putra Intelek, Malaysia during July 27-29, 2012. I am

privileged to send my felicitations, greetings and best wishes to all the delegates not only

from India but also from various parts of the world.

The theme of the conference seems to be relevant and is need based. Management

practices are dynamic in nature. Whatever is taught in classrooms are obviously different

form the inherent practice of the corporate world. I am confident that the discrepancies,

deviations and divergence between principles and practice of management will be

discussed, during the three days of deliberations. I firmly believe that this Industry-

Institute interaction will result in fruitful recommendations to the Industry, Academic

Community and society at large.

I wish the International Conference all success.

(M A M Ramasamy)

iii

ANNAMALAI UNIVERSITY Vice-Chancellor

Annamalainagar-608 002 Phone: Office: 04144-238283

Res: 04144-238214, Fax: 04144-238080 E-mail: auvc_mr@hotmail.com

25th June, 2012

Message

Dr.M. Ramanathan, M.S. (G.S.), F.R.C.S. (Glasg), F.A.B.M.S

It gives me academic pleasure that the Business Administration Wind of DDE

Convenes the International Conference on Synchronizing Management Theories and

Business Practices in Association with Putra Intelek International College of Malaysia

during July 27-29, 2012. These deliberations will strengthen the connection between the

management theories and the practices. Further I learnt that the peer reviewed articles will

also be published in the form of book with ISBN and in the some of the International

Journals with ISSN. To make the deliberation live the organizers have also resolute to

award research Papers award for the session.

I wish the organizers for the grand success of this conference and I believe that

many more such conferences will be organized in future also to cater the needs of the

management people.

Dr.M. Ramanathan

v

ANNAMALAI UNIVERSITY Registrar

Annamalainagar – 608 002 Phone: Office: 04144 –238259

Fax: 04144 – 238080

13th July, 2012

Message

Dr.R. Meenakshisundaram, M.Com., M.Phil., Ph.D.,

I am much pleased to note that the Department of Business Administration–

Distance Education and On-Campus jointly organize the International Conference to bond

the theories and Business practices of Management. Since this the conference on Business

Practices all the fields of scholastic people are joining their hands to find out the solutions

to the challenges ahead when fusing the theories and the practices. Though the theories are

proved one, through such deliberations new theories could be invented to take up the

business practices for the benefit of the next generation in the globalised era. Even if it is

not a new venture to the faculties of Business Administration of Annamalai University, the

Directorate of Distance Education has entered into such new endeavor; I wish and

congratulate the organizing team for the great triumphant of this conference.

Dr.R. Meenakshisundaram

vii

ANNAMALAI UNIVERSITY Dean

Faculty of Arts Annamalainagar – 608 002

Message

Dr.D.Selvaraju, Ph.d.,

It is magnificent to know that the Management Wing of DDE, Annamalai University

has taken up the enormous task of the conducting the International Conference on

Synchronising the theories and the practicing in the field of Management which is the need

of the hour. At one time the Sellers had taken the importance and in one time Buyers had

taken the importance in the world of business. Now, we are in the third generation of

globalization. Now, the user pay policy has taken its own place. This is the opt time to

synchronise the theories with the business practices for further development. Such

synchronization will definitely solve the problems like global finanical crisis, melt down

etc. Such efforts are needed for the developing countries like India. To achieve the vision

2020 in the context of Business Practices, I hope that this International Conference will

pave a way for its own solution.

I wish the team for the wonderful and fruitful success of this conference.

Dr.D. Selvaraju

ix

ANNAMALAI UNIVERSITY Director

Directorate of Distance Education Annamalainagar – 608 002

Foreword

Dr. S. B. Nageswara Rao, Ph.D.,

The privilege given to me to offer a foreword to the Proceedings of the International

Conference on “Synchronising Management Theories and Business Practices: Challenges

Ahead gives me colossal pleasure to me. Though the sub themes include Management

Education, Social Issues, Psychology, economics etc. However there are three broad

themes. They are Marketing, Finance and Human Resource Management. These three

broad themes are having the interlink. In detail it could be explained as follows: Marketing

needs Human Resources and Finance. To make Finance proper marketing is needed. But in

the world of Liberalisation, Privatisation and Globalisation, one cannot easy to predict the

existing business practices with the old management theories. Because in most of the cases

the old theories do not give any expected solutions to the present day problems of business

practices. These books contain the high level and qualitative research articles by the

experts from the different sectors.

These books cover all the aspects of the management practices that synchronize the

theories in the present day context. Moreover, the language used in this book is very

simple and able to understand by the readers of all level. Above all the Editors have

designed the book in such a way that it meets the requirements of scholars of management

studies, businessmen, administrators, politicians and students of Business Administration.

I am sure; this book will be of immense help to the scholars pursuing research in the field

of Management Studies.

xi

Editorial Committee

Editors Dr. P. Baskar M. Banumathi S. Saravanakumar

Associate Editors Dr. N. Kumarasamy, Associate Professor in Management wing, DDE, Annamalai University Mr. R. Narayanan, Assistant Professor in Management wing, DDE, Annamalai University Mr. John Adaikalam, Assistant Professor in Business Administration, Annamalai University Dr. A. Selvarasu, Associate Professor in Business Administration, Annamalai University Dr. M. Thiagarajan, Department of Commerce, Dr SNS Rajalakshmi College of Arts and Science, Coimbatore T. Tiruvenkadam, Associate Professor, SSN College, Chennai

xiii

© 2012 Bonfring

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xv

© 2012 Bonfring

Contents

S. No. Title/Author Page No.

01 Paradigm Shift in Indian Banking Industry

M. Sulthana Barvin

01-03

02 Financial Leverage and Analysis

K. Selvam

04-07

03 A Study of Technical Analysis in Reliance Infrastructure Stock Using

Indicators - India Infoline Limited

T.V. Ambuli, D. GaneshKumar and S.A. Bilal Malick

08-13

04 Equity Linked Savings Scheme – a Boon or a Bane to Investor’s Wealth

Creation

Dr.R.R. Rajamohan and R. Sri Kaviya

14-19

05 Mutual Fund Knowledge and Experience: an Empirical Study of

Investors’ Perspective

Dr.B. Amarnath and K. Thulasi Krishna

20-24

06 Survival Skills of Business Management Professionals: A Study with

Reference to Banking Sector

M. Badmapriya and R. Harihara

25-31

07 An Analytical Study on Non Performing Assets of Banks in India

Dr. Nirmala Mohan and Dr. Florence John

32-36

08 Innovation and New Service Development in Indian Insurance

Companies

Dr.P. Anbuoli and R. Meikanda Ganesh Kumar

37-43

09 Role of Microfinance and Women Empowerment in Perambalur District,

Tamil Nadu

Dr.S. Balraj

44-47

10 Venture Capital and Entrepreneurship in India

B. Nageswara Rao and Dr.B. Amarnath

48-52

11 The Effect of Board Size and Board Composition on Performance of

Listed Financing Sector in Sri Lanka

S. Anandasayanan and Saseela Sivasubramaniam

53-58

12 Impact of Dividend Policy on the Shareholders’ Wealth in Sri Lankan

Listed Banks

Tharshiga Murugesu

59-62

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© 2012 Bonfring

13 The Relationship between the Companies’ Working Capital and

Profitability

K. Priya and S. Thusha

63-69

14 A Study on Retail Banking Services Rendered by BOI, Tiruchirappalli

Dr.D. Mahesh, S. Hema Nancy and C. Vaishnavi

70-73

15 Assessing Small and Medium Enterprises’ (SMEs) Performance through

Financial and Non- Financial Indicators in Sri Lanka

Dr.B. Nimalathasan

74-78

16 An Impact Analysis of Interest Rates and Changes of Interest Rates on

Stock Price and Changes on Stock Industry

Koperunthevy Kalainathan and K. Vijayarani

79-83

17 Impact of Capital Structure on Performance of Commercial Bank in Sri

Lanka

Sathana Vaikunthavasan and S. Bruntha

84-88

18 A Study on Exchange Traded Funds Trend in India

Dr.S.N. Geetha and Dr.K. Vimala

89-93

19 Institutionalization of Industrial Finance in India: Some Important Issues

Dr. Ganesh Kumar

94-98

20 A Study on the Impact of Foreign Direct Investment Inflow on Indian

Economy

S. Sreejith, Dr. Hareesh N Ramanathan and Dr.P.N. Harikumar

99-105

21 Private Equity: A New Investment Policy [Special Reference to India and

UK]

Rajdip Bhadra Chaudhuri and Utsab Mitra

106-111

22 A Study on the Agriculture Credit Lending by State Bank of India (SBI)

(With Special Reference to the Kancheepuram District)

Panjali and Dr.R. Kasilingam

112-116

23 Private Equity in India: Standing at Crossroad with Emergent Investment

and Legal Regime

Soumosri Pal

117-121

24 FDI in Retailing: Boost Employment Opportunities for India’s Yout

T. Elanchezhian, Dr.S. Mohankumar and Dr.V. Selvam

122-127

25 Green Finance –Bachat Lamp Yojana- An Energy Conservation Project

Implemented in the State of Kerala

Dr.M. JanarthananPillai and S. Sathichandran

128-133

26 Global Financial Crisis and its Impact on Indian Corporate Planning

G. Vara kumar and Dr.B. Amarnath

134-139

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© 2012 Bonfring

27 A Study on Lead Lag Relationship between Selected Index in Indian

Financial Markets

R. HariharaSudhan and G. Prithiviraj

140-145

28 Performance Evaluation of Selected Initial Public Offerings (IPO) in India

S. Rajkumar and Dr.D. Venkatramaraju

146-150

29 A Study on Financial Performance of District central Co-operative Bank.,

Cuddalore

V. Sundaramoorthy and Dr.K. Sentamilselvan

151-156

30 Impact of Foreign Direct Investment (FDI) Towards Globalisation -

Indian Scenario

K.B. Manikandan and DR.T.S. Vembu

157-162

31 A Study on the Applicability of CAPM Model to the Indian Banking

Industry

S. Dileep and Dr. G.V. Kesava Rao

163-168

32 A Study on Investment Viability of Risk and Return of Select Portfolio

with Special Reference to Religare Securities Limited, Calicut

Dr.V.M. Senthil Kumar, S.P. Sreekala and Dr.V. Santhi

169-174

33 Dynamic Linkage between Exchange Rate and it Sector Index ‘CNXIT’ of

NSE

MuktaVyas and Dr.A.V. Vedpuriswar

175-180

34 New Banking Policies for Housing Loan for Urban Poor – A Matter of

Cooperation

N. Vemanna

181-185

35 Customer’s Perception on Usage of Internet Banking

Dr.M. Janarthanan Pillai and S. Vijitha

186-194

36 Corporate Restructuring through Mergers and Acquisitions –A Study of

Selected Companies

Dr.C. Vethirajan

195-198

37 Mutual Funds – An Overview

Dr.D. Senthil

199-201

38 A Study on Emerging Trends in Finance with Special Reference to Public

Vs Private Sector Banks in India

S. Karthikeyan and Dr. C. Ramesh Kumar

202-209

39 Banking Sector and Human Capital Development (With Special Reference

to Public and Private Banks Operating in Bangalore City)

Dr.S. Umakanth and Dr.C. Ramesh Kumar

210-216

40 An Empirical Study of Life Insurance Products in Rural Areas

S. C. Babusundararaman and Dr.V. Sachithanantham

217-221

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© 2012 Bonfring

41 FDI in Indian Retail Sector

M. Senthil Mathi and Dr.N. Kalyanaraman

222-224

42 Mutual Fund Industry in India

R. Sundara Vadivel

225-229

43 Revised Schedule VI to the Companies Act, a Giant Leap in Financial

Reporting and Corporate Governance

Chinnsamy Ganesan

230-237

44 A Study on Investor Perception towards Various Investment Avenues

K. Shyamala and Dr.V. Shanmugasundaram

238-242

45 Don’t Let Perception Guide your Investment Decisions

Fayaz Ahmad Dar

243-249

46 Trends in Foreign Direct Investment in India

M. Sulthana Barvin

250-254

47 Importance of Working Capital Management in Financial Management

T. Rajamohan and N. Kumarasamy

255-259

48 Derivatives Trading – Its Impact on Investors in Indian Capital Market

Arcot Purna Prasad and Dr.V. Shanmugasundaram

260-266

49 A Study on Online Trading in Derivatives Market

S. Karthikeyan and Dr.C. Ramesh Kumar

267-271

50 Let’s Move to Behavioral Finance

Fayaz Ahmad Dar

272-276

51 An Empirical Study to Know the Role of Emotions in Individual

Investment Behavior

Mohd. Abbas Bhat and Fayaz Ahmad Dar

277-283

52 Portfolio Hedging of High Volatility Stocks using Index Futures with

Reference to Indian NSE

P.A. Mary Auxilia and G.Y. Vishwanath

284-289

53 Macro Economic Stabilization Tools in India in the Post Recession Phase

P. Chacko Jose and Ms. BinduBalagopal

290-293

54 Exploring the Linkage between Entrepreneurial Characteristics and

Business Performance

N. Kengatharan and Y. Lingesiya

294-301

55 Role of Trade Related Aspects of Intellectual Property Rights

D. Jayaprakash

302-304

56 An Empirical Investigation on Challenges Facing Corporate Governance

in India

P. Sathyanarayanan and Dr. C. Samudhra Rajakumar

305-311

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© 2012 Bonfring

57 European Crisis Impact on Indian Economy

J. Kirubakaran and Dr. M. Dharmalingam

312-316

58 Regulatory Frame Work of Corporate Governance in Indian Context

G. Vara kumar and B. Amarnath

317-323

59 Innovative Tools for Encouraging Tourism Sustainable Development in

Maharashtra

Dr. Bagherbagheriankasgari and Majidfattahi

324-328

60 The Role of Chamber of Commerce on Retail Business (in Pune City)

Majidfattahi and Dr. Bagherbagheriankasgari

329-333