Journal of Contemporary Issues in Business Research

ISSN 2305-8277
An Empirical Analysis of Capital Generation in Indian Primary Capital Market During Post Liberalisation Era
An Empirical Analysis of Capital Generation in Indian Primary Capital Market During Post Liberalisation Era
Siddhartha Sankar Saha, 1and Mitrendu Narayan Roy2
Author Affiliations
  • 1&2 Department of Commerce, University Of Calcutta

  • Abstract

    Corporate finance is raised from the primary capital market through public offers, rights issues and private placement, etc. Public offer is the largest sources of funds from the primary capital market to the company. The initial and subsequent capital issue of securities like equity shares, preference shares, debentures or bonds can be made in the primary market through public issues as well as rights issues. This study analyses the growth and trend of capital generation in the market during 1993-94 to 2013-14 and establishes a relationship between growth of capital generation in this market and Gross Capital Formation (GCF) of the economy. Capital generation in the market is analysed based on 4 dimensions namely, total capital generation, capital generation based on type of issue and issuer and finally sector wise capital generation. Growth is calculated in simple percentage. A Linear Regression Analysis is performed on Log transformed values of capital generation under all select dimensions to analyse the trend. Finally, Pearson’s correlation is used to analyse the relationship between growth of capital generation in this market and growth of GCF. The study finds that capital generation in this market suffers from a volatile growth. However, their trend is positive during the period of study. Finally, growth of capital generation in this market is found to moderately influence overall capital generation in the economy.

    Keywords
    Primary Market; Capital Generation; Public Issue; Rights Issue; Listed Issuer; Unlisted Issuer; Gross Capital Formation.

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    MLA
    Saha, Siddhartha Sankar and Mitrendu Narayan Roy. An Empirical Analysis of Capital Generation in Indian Primary Capital Market During Post Liberalisation Era. Vol. 4. 2015. 2 vols.
    APA
    Saha, S. S., & Roy, M. N. (2015). An Empirical Analysis of Capital Generation in Indian Primary Capital Market During Post Liberalisation Era (Vol. 4).
    Chicago
    Saha, Siddhartha Sankar, and Mitrendu Narayan Roy. An Empirical Analysis of Capital Generation in Indian Primary Capital Market During Post Liberalisation Era. Vol. 4. 2 vols. 2015.
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    First published online before print: 2015
    Vol. 4, No. 2, 2015, pp. 63-75
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