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6th Competition Law and Policy Conference in Memory of Dr. Vedran Šoljan – ‘Challenges to the Enforcement of Competition Rules in Central and Eastern Europe’ & ‘Competition Policy Enforcement in Digital Economy: Recent Developments’

Author(s): Vlatka Butorac Malnar,Jasminka Pecotić Kaufman / Language(s): English Issue: 22/2020

The 6th Competition Law and Policy Conference in Memory of Dr. Vedran Šoljan, co-organised by the University of Zagreb – Faculty of Economics and Business (EFZG), the Croatian Competition Agency (AZTN), the Croatian Competition Law and Policy Association (HDPPTN) and the European Documentation Centre EFZG, was held in Zagreb on 12–13 December 2019. A conference devoted to competition law and policy developments in Croatia, the wider CEE region and the EU as a whole, started off in 2009 as a small scale event aimed at presenting the results of an EU merger control reform project, led initially by Professor Vedran Šoljan (University of Zagreb), and continued on by Professor Jasminka Pecotić Kaufman (University of Zagreb) after his untimely death in 2008. Eventually, the Conference evolved into a large-scale event, and a tribute to the late Professor Šoljan, gathering around 150 participants from Croatia and abroad.

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The Cosmoplanetary Economy of Lost Humanity: the Postnonclassical Version of Noospheric Ontology (Philosophical Reflection)

Author(s): Grigory Stanislavovich Smirnov,Alena Artemyeva / Language(s): English Issue: 26/2021

The article describes the theoretical basis of cosmoplanetary economy representations in their ontological, epistemological, axiological and praxeological dimensions that were suggested in science and philosophy in the 20th and 21st centuries. It is shown that the conceptualization of cosmoplanetary economy and economics comes from the works of Sergey Bulgakov, Sergey Podolinsky, Vladimir Vernadskiy, Nikita Moiseev, Vlail Kaznacheev, Pobisk Kuznetsov and manifests itself in various models of noospheric economy. It is concluded that in the current realities of the intensive scientific and philosophical search for some new economic and ecological theories, a complex model of “cosmoplanetary economy” is constructed as a meta-economy so as to ensure the survival of humanity in the face of the destructive force of global catastrophism of the 21st century.

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РАЗВИТИЕ РЫНКА КРИПТОВАЛЮТ В ЛАТВИИ И СТРАНАХ БАЛТИИ

Author(s): Alexander Masharsky,Ivan Skvortsov / Language(s): Russian Issue: 49/2021

The use of digital money creates not only threats, but also opportunities for economic development, but in Latvia and the Baltic countries, they are not sufficiently researched and not widely spread. The paper aims to identify the reasons for the lagging behind of the Baltic countries and Latvia in the development of the cryptocurrency market and to develop recommendations for improving its regulation and functioning. Based on the methods of cross-country, statistical and sociological analysis, the national factors of differences in the functioning and regulation of cryptocurrencies in Latvia, Estonia, and Lithuania have been identified and the risks of its use for illegal activities have been assessed. It is shown that the role of cryptocurrencies in the financial markets of the Baltic States is determined by the degree of their use for payments and investments, which depends on their recognition by the state and investors. It has been revealed that the definition of the concept of cryptocurrency in the EU and the Baltic countries, primarily in the money laundering and terrorist financing (ML/TF) directives, does not stimulate the use of its positive features. A correlation between the restrained attitude towards cryptocurrencies in Latvia and its large-scale business relations with the CIS countries with a higher proportion of shadow economy, caused by the peculiarities of its history and geographical location, has been revealed. The Latvian banking system, under the influence of international regulators, has become less appropriate for operations of non-residents from the East, which increases the risk of using cryptocurrency for ML/FT purposes. The factors of motivation, advantages and difficulties of the businessmen of the Baltic countries they face when dealing with cryptocurrency have been identified, and a discrepancy in the regulation of taxation of transactions with cryptocurrency and the respective activities in Latvia has been revealed. Recommendations are given to the state and private investors pertaining to the integration of cryptocurrencies into the economic space, the implementation of which will contribute to the development of the digital economy and growth of wealth of Latvian residents. The results of the study can be used to improve government regulation and private investments in the cryptocurrency market, as well as in the study and further research of this problem.

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INTERNATIONAL MIGRATION AND BRAIN CIRCULATION

Author(s): Franz Peter Lang / Language(s): English Issue: 49/2021

Many developed countries suffer the economic consequences of a growth- and wealth-limiting demographic gap, which they only can fill with immigration. Immigrants must be capable to be integrated into the receiving economy based on age and skills. However, emigration of elites raises in the home-countries the complex problem of “Brain Drain” (loss of human capital), which is offset by a “Brain Gain” in the destination country due to immigration. Recent research shows, that within the framework of a liberal migration policy there can be a "Brain Circulation" that has advantages for all countries involved.

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Perspectives of accumulation of funds in the accumulative pension insurance system of Ukraine

Author(s): Svitlana Berezina / Language(s): English Issue: 2/2017

The pension system existing in Ukraine does not correspond to the modern requirements of society and needs radical reforms in which the main focus should be on the introduction of a mandatory accumulative pension system. It is shown that accumulation of funds in accumulative pension system (APS) requires complex calculations. A model for accumulation of funds in the accumulative pension insurance system used in this paper makes it possible to determine a set of interrelated parameters – insurance premium rates, reasonable insurance periods, the desired rates of profitability, the required amount of savings, investment potential of accumulative pension system, etc. The amount of funds in accumulative pension insurance system depends not only on the basis of insurance (number of payers of insurance premiums), the amount of contributions (rate and object) and (primarily) on the term of beginning of payments of insurance premiums, the coefficient of profitability of invested funds and guarantees of their safety at all stages of functioning of the accumulative system. The analysis has shown that it is necessary: to cover all people employed in the economy with accumulative pension insurance; a rate of contributions should be determined not only by wages, but also by income; prior to the introduction of accumulative pension system – to create the necessary infrastructure, to develop a legal framework, to organize the management of accumulative funds, to solve the issues related to the protection of funds from the risks of losses. The beginning of introduction of the accumulative system should be postponed till 2020.

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Corporate governance and capital structure in the periods of financial distress. Evidence from Greece

Author(s): George Kyriazopoulos / Language(s): English Issue: 1.1/2017

This study examines the relationship between corporate governance and capital structure employing data from the Athens Stock Exchange for the period 2005-2014. This period encompasses the sovereign debt crisis erupted in Greece at the end of 2009 and still continues to hit households and businesses alike. The results from the panel regression analysis signify the role of corporate governance structures in determining the capital structure of the Greek listed firms. In particular, the empirical results reveal a negative impact of board size on debt levels, which is weakened during the debt crisis period. In contrast, the presence of outside directors provides the appropriate certification to use more debt. Finally, growth opportunities and profitability are the two firm-specific factors which effect was weakened during the financially-constraint period.

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Targowiska w łańcuchu dostaw żywności w Polsce w latach 2008–2018

Author(s): Krystyna Świetlik / Language(s): Polish Issue: 1/2020

The role of street markets in the food retail sector has declined since 2008. The aim of this paper is to illustrate changes in infrastructure in trading at street markets during the period 2008–2018, identification of the main factors influencing their development and pinpointing those which will have a bearing in future. Sources include secondary data from Central Statistical Office (GUS) originating from the Bank of Local Data (BDL), internal market statistics and published literature. Analysis of the data showed that the number of street markets in Poland declined by 1240 during 2008-2018, including 105 year-round markets and 1135 seasonal ones. The main reason for this change was the growth of discount stores and changes in customer preferences. Government programmes aimed at revitalising street markets, and legal regulations facilitating direct sale of food grown by farmers themselves have not reversed this trend. The observed significant increase in consumer interest in unprocessed food which is good for health and linked to the coronavirus pandemic, could result in a revival of street markets.

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Firm ownership and size versus innovation activities over the business cycle: near-zero inertia as a sign of the transition from the fifth to the sixth Kondratieff wave

Author(s): Aleksander Jakimowicz,Daniel Rzeczkowski / Language(s): English Issue: 4/2019

Research background: The innovation activity of Polish industrial processing enterprises is examined in a broader time context than typical business cycle frames, which makes it possible to look at the investigated problems from the perspective of Kondratieff waves. Purpose of the article: The aim of the research is to describe the combined effect of mutual interactions between the ownership and size of Polish industrial processing enterprises on the goals of innovative activity and their degree of importance for the further development of the innovativeness of those firms. These relations are examined in various phases of the business cycle. Additionally, taking secular changes into account made it possible to lend credence to the claim that the global financial crisis is a typical phenomenon for the breakthrough period between two Kondratieff waves. Methods: A characteristic feature of the applied method is the focus on the combined effect of the enterprise type and ownership structure on firms’ innovation over three periods: prosperity 2004–2006, crisis 2008–2010 and recovery 2012–2014. As regards statistical techniques, the Pearson’s χ 2 independence test and correspondence analysis were applied. The results of the research are presented in a graphic form in three- and two-dimensional correspondence maps, which indicate the co-occurrence of (1) ownership sectors and enterprise types taken together, and (2) effects (goals) of the innovative activity of enterprises, together with the degree of their influence (importance) for further innovative activity. Mutual interactions between ownership sectors and enterprise types were visually analysed, indicating significant features of the triangles representing them. Findings & Value added: A significant combined effect of the ownership sectors and enterprise types on firms’ innovative activity was found. There was a certain type of dynamic equilibrium between those variables, which changes depending on the business cycle phase. In the global financial crisis of 2008–2010, a surprising phenomenon was found, consisting of the growth of innovative activity in most enterprises as compared to the period of prosperity in 2004–2006. The enterprises achieved the goals assumed, and the degree of their importance proved the significant influence on further innovative activity of those firms. Additionally, it was demonstrated that in the period of recovery (2012–2014) mutual interactions between ownership and size eliminated the relationship between those variables and the goals of innovative activity, and eco-innovations proved to be directly subordinated to traditional types of innovations, mainly product and process innovations. Changes occurring in the last of the examined periods are related to the near-zero inertia of the entire industrial processing section, which allows to interpret the global financial crisis as a typical phenomenon for a breakthrough marking the end of one Kondratieff wave and the beginning of the next. Moreover, 2015 is identified as the year of breakthrough, ending the Fifth and beginning the Sixth Kondratieff Wave, which was related to the transition from the information and telecommunications revolution to the biomedical-hydrogen revolution. The calculations presented in this paper are consistent with those forecasts.

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Personal Characteristics Inspiring Initial Trust – What Matters in Service Encounters?

Author(s): Joanna Hernik,Adam Sagan / Language(s): English Issue: 2/2020

Research background: The following article concerns initial trust, i.e. trust which is formed during the first contact with a customer. Trust is, of course, an interdisciplinary category and as such it is defined in various ways; however, it is most often emphasized that it entails a positive attitude towards another person and a conviction that the person will meet our expectations. In relation to a particular individual, trust is connected with their identity, that is, with the attributes that distinguish them from other people, such as gender, skin color, way of dressing, or age. Purpose: The purpose of this article is to determine which qualities inspire trust in the case of financial services. Research methodology: Research was conducted using the paradigm of a mixed approach and combines the use of a projection technique and multilevel regression. The respondents assessed their perceived initial trust towards 100 salespersons shown to them in photographs depicting financial service encounters. The multilevel regression model (mixed regression) and conjoint analysis using the conjoint library of the R program and the STATA and Mplus programs were used to analyze the obtained nested data. Results: The obtained results revealed that among the main qualities inspiring initial trust are appropriate appearance (a gray or blue outfit is desired), white skin color (people were less trustful towards other races), owning a cell phone as a symbol of professionalism, and also a black-and-white background. Gender is also significant, since the research showed that men inspired more trust than women. On the other hand, age is less important than we thought. Novelty: Trust testing using projection techniques is rare in economic articles. The authors did not find similar works, so the novelty will be both the method used and the area of research.

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Nexus of Market Risk, Dividend Policy and Commercial Banks’ Performance in Sub-Saharan Africa

Author(s): Odunayo Magret Olarewaju / Language(s): English Issue: 2/2020

Research Background: The concept of risk is of great importance in any financial system, due to unstable economic situations and fluctuating environmental factors. Like other variables, risk has a significant effect on firms’ returns and profit. Purpose: This study aims at examining the relationship between dividend policy and performance taking cognisance of the uncontrollable risk (market risk). Research methodology: This study was modelled using 250 commercial banks from 30 selected Sub-Saharan African countries in the period 2008 to 2017. The Panel-Vector Error Correction Model was used to estimate the model. Result: From the long run analysis, a long run relationship between dividend policy, agency cost, and bank performance is evident. The disequilibrium will take about 39.5% yearly speed of adjustment to return to a steady state. There is an inverse relationship between Lending interest rate (market risk proxy) with bank performance while there is a positive relationship of foreign exchange rate (market risk proxy) and bank performance in SSA. Novelty: Market risk’s influence on the relationship between dividend policy and bank performance was firstly established. Therefore, it is recommended that the banking sector in SSA should focus more on endogenous factors and review some of their policies as these contribute more significantly to variations in their performance than exogenous factors.

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Oil Prices and the Algerian Exchange Rate: is there any Difference with Hidden Co-Integration?

Author(s): Hicham Ayad / Language(s): English Issue: 1/2021

Research background: The aim of this paper is to examine the long run relationship among oil prices and the Algerian Dinar exchange rate over the period January 1995–February 2020 in Algeria as one of the most important oil-exporting countries and one of the OPEC members. Purpose: This study investigated the co-integration relationship between oil prices and exchange rate in Algeria by testing the long-run relationship between the two variables and their positive and negative shocks. Research methodology: the study applied both the traditional co-integration analysis using Engle-Granger, Phillips-Ouliaris and Johansen-Juselius tests and the hidden co-integration presented by Granger and Yoon (2002). Results: The results revealed that there is no evidence of a co-movement and linkage between oil prices and exchange rate in Algeria over the period of study neither with the original series nor between the cumulative components whatever the dependent variable. Novelty: This paper fills in the missing link between the Algerian Dinar exchange rate and oil prices especially with the absence of the hidden co-integration analysis in the case of Algeria and most of the developing countries. To deal with the oil shocks according to Apergis and Miller (2007) and Narayan and Gupta (2015) studies where when they suggested distinguishing between the negative and positive oil price shocks because the asymmetric effect on the macroeconomic variables.

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Crisis management in public institutions - Croatian financial system and the Covid-19 pandemic

Author(s): Ante Žigman,Tomislav Ridzak,Mirna Dumičić Jemrić / Language(s): English Issue: Spec/2021

Crisis management in the context of public institutions is particularly important, due to the extremely large possible impact of the consequences of systemic crises on society as a whole. Suboptimal or too slow decisions of public institutions usually affect a much wider set of people, entities, and economic and financial developments than when it comes to crisis management in individual companies, even if they are systemically important. This paper focuses on the activities of the Croatian National Bank and the Croatian Financial Services Supervisory Agency in dealing with the crisis caused by the coronavirus pandemic and presents the most important activities of the government, government agencies, and commercial banks that have had an impact on financial stability. The analytical part of the paper presents the effect of trading suspension on the Zagreb Stock Exchange on 12th March 2020 and its implications on the market. Although it is still too early to make final assessments, given the course of the pandemic, the available data suggest that the activities of domestic institutions have so far been effective in maintaining financial stability in Croatia.

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A Taxonomic Analysis of the Structure of Prime Costs in Polish Clinical Hospitals

Author(s): Joanna Sikora-Alicka / Language(s): English Issue: 2/2021

Research background: The analysis of the genesis and the way of defining clinical hospitals allows us to conclude that the evaluation of their activities should consider many criteria, not only the treatment process in itself. Activities characteristic for a clinical hospital include, apart from the medical, also prophylaxis and preventative measures, preceded by the identification of health risks, soliciting research and creating new directions of medical research, as well as implementing new medical technologies and treatment methods (Article 3, paragraph 2, points 1–2, Journal of Laws of 2020, items 295, 567, 1493, 2112, i.e.) combined with the training of medical personnel. Which all makes those units unique among hospitals. Purpose: The article aims to confirm the thesis that, despite significant organizational and functional differences, due to the specific nature of their activities, clinical hospitals do not differ significantly in the structure of generated costs. Research methodology: The article proposes using the taxonomic method as a tool for a comparative analysis of Polish clinical hospitals between the years 2012–2016. The study was conducted from a space-time perspective and concerned 20 hospitals. The use of the hierarchical agglomeration method to assess the cost structure of clinical hospitals is, according to the author, a tool that should be used, in addition to standard methods, by both external and internal decision-makers, in the process of assessing the coherence of the activities of units. Results: The conducted research confirmed that despite the differences between the analyzed units, they are characterized by the same structure of prime costs. Novelty: These studies should form the basis for further, a more detailed, cause-and-effect analysis of the cost structure to identify the main determinants shaping total operating costs.

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Specifičnosti pripremanja kratkoročnog izvještaja menadžmenta u državama Jugoistočne Evrope

Author(s): Bobana Čegar / Language(s): English,Serbian Issue: 3/2021

Publication of a semi-annual management statement, according to the EU Transparency Directive, is mandatory for all listed companies in EU member states, while the originally defined obligation to present this report on a quarterly basis was abolished by amendments to this Directive in 2011. Analyzing the legislation and information published by issuers in Southeast Europe, on a sample of 225 companies from nine different countries, it could be concluded that the publication of a semi-annual management statement is mandatory in Bulgaria, Montenegro, Croatia, Romania, Northern Macedonia, Slovenia and Serbia, but not in Bosnia and Herzegovina. Almost all companies that submitted this report did so within the deadlines defined for the submission of interim financial statements and usually in such a way that both, the management statement and the financial statements, are a single document. However, in terms of the content of the interim management statement, there are significant variations, both between the observed countries and between the observed companies within the same countries.

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Ocjena uspješnosti projekata javno-privatnog partnerstva

Author(s): Željana M. Jovičić,Milko Štimac / Language(s): English,Serbian Issue: 2/2021

Public-private partnership is a form of collaboration between the public and private sectors realized by combining resources, capital and expertise, with the aim of satisfying mutual interests. The basic principle in the decision-making process on establishing a public-private partnership as a way of implementing projects is the possibility of achieving greater value for money. This is achieved through the effects of deadline shortening, increasing the quality or range of the final product, lowering the cost, but also transferring some risk from public to private partners – that is, the financial effect of that reallocation. Using the method of case studies from practice in the Republic of Srpska, the results obtained show significant doubt in the success of the application of this model, especially in sensitive activities (health sector). The main causes of the failure of public-private partnership projects have been identified: failures in the preparatory stages of contract award; oversized procedures and procedures; poor communication and coordination between participants in the process; an insufficiently developed system of control and protection of public interest; fl at estimates of economic parameters (especially discount rates) in the process of preparation and implementation of these projects.

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Mjesto i uloga industrije osiguranja u ekonomskom razvoju Bosne i Hercegovine

Author(s): Željko Šain,Jasmina Selimović,Edin Taso / Language(s): English,Serbian Issue: 2/2021

Insurance industry and insurance activity have a significant place in the economic development of any country. It is true of Bosnia and Herzegovina as well. There is a mutual correlation of proportionate character between the degree of country’s economic development and the development of the insurance industry and activity. In 2019, insurance premium in the whole world amounted to 6 trillion 292 billion and 600 million USD. Thus, a large amount of money, only based on premium, is a good reason for insurance companies to be considered as some of the greatest institutional investors in the world. Insurance has three basic functions: the function of protection, the function of mobilization and accumulation of financial resources, and the socio-economic (social security) function. Based on the official data, the paper presents comparative indicators of the development of financial markets and financial position of the insurance industry in the world, Balkan region, and Bosnia and Herzegovina. Besides a series of presented data, a particular interest is attached to the ratios of premium per capita to the share in GDP in EU27 and BiH. In 2019, EU27 premium per capita amounted to 2,122 euro, while in BiH it amounted to 112. In the same year, the share of premium in GDP was 6.81% for EU27 and 2.19% for BiH. These indicators are sufficient evidence of the power of insurance industry in the economic development of Bosnia and Herzegovina. COVID-19 pandemic is a new systematic risk and a big and complex threat. The title of the paper focuses on the impact of the current pandemic on the insurance industry and the economic development. According to Allianz Risk Barometer for (Allianz Global Corporate & Specialty − AGCS) in 2020, the diseased caused by coronavirus is in the very top of global business risks and, at the same time, adversely affects other leading business risks in the world. In this way, it also directly affects the insurance industry and the economic development.

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Modelling and forecasting monthly Brent crude oil prices: a long memory and volatility approach

Author(s): Remal Shaher Al Gounmeein,Mohd Tahir Ismail / Language(s): English Issue: 1/2021

The Standard Generalised Autoregressive Conditionally Heteroskedastic (sGARCH) model and the Functional Generalised Autoregressive Conditionally Heteroskedastic (fGARCH) model were applied to study the volatility of the Autoregressive Fractionally Integrated Moving Average (ARFIMA) model, which is the primary objective of this study. The other goal of this paper is to expand on the researchers' previous work by examining long memory and volatilities simultaneously, by using the ARFIMA-sGARCH hybrid model and comparing it against the ARFIMA-fGARCH hybrid model. Consequently, the hybrid models were configured with the monthly Brent crude oil price series for the period from January 1979 to July 2019. These datasets were considered as the global economy is currently facing significant challenges resulting from noticeable volatilities, especially in terms of the Brent crude prices, due to the outbreak of COVID-19. To achieve these goals, an R/S analysis was performed and the aggregated variance and the Higuchi methods were applied to test for the presence of long memory in the dataset. Furthermore, four breaks have been detected: in 1986, 1999, 2005, and 2013 using the Bayes information criterion. In the further section of the paper, the Hurst Exponent and Geweke-Porter-Hudak (GPH) methods were used to estimate the values of fractional differences. Thus, some ARFIMA models were identified using AIC (Akaike Information Criterion), BIC (Schwartz Bayesian Information Criterion), AICc (corrected AIC), and the RMSE (Root Mean Squared Error). In result, the following conclusions were reached: the ARFIMA(2,0.3589648,2)-sGARCH(1,1) model and the ARFIMA(2,0.3589648,2)-fGARCH(1,1) model under normal distribution proved to be the best models, demonstrating the smallest values for these criteria. The calculations conducted herein show that the two models are of the same accuracy level in terms of the RMSE value, which equals 0.08808882, and it is this result that distinguishes our study. In conclusion, these models can be used to predict oil prices more accurately than others.

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A dynamic MST-deltaCoVaR model of systemic risk in the European insurance sector

Author(s): Anna Denkowska,Stanisław Wanat / Language(s): English Issue: 2/2021

This work is a response to the EIOPA paper entitled ‘Systemic risk and macroprudential policy in insurance’, which asserts that in order to evaluate the potential systemic risk (SR), the build-up of risk, especially risk arising over time, should be taken into account, as well as the interlinkages occurring in the financial sector and the whole economy. The topological indices of minimum spanning trees (MST) and the deltaCoVaR measure are the main tools used to analyse the systemic risk dynamics in the European insurance sector in the years 2005-2019. The article analyses the contribution of each of the 28 largest European insurance companies, including those appearing on the G-SIIs list, to systemic risk. Moreover, the paper aims to determine whether the most important contribution to systemic risk is made by companies with the highest betweenness centrality or the highest degree in the obtained MST.

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Changes in the impact of US macroeconomic news on financial markets the example of the Warsaw Stock Exchange

Author(s): Henryk Gurgul,Jessica Hastenteufel,Tomasz Wójtowicz / Language(s): English Issue: 4/2021

Due to the high importance of the American economy, in the past, announcements of US macroeconomic data were shown to have a significant impact on financial markets in general, and on European stock markets in particular. However, as this effect may vary in time, this paper examines the changes in the impact of US macroeconomic news on the WIG20, the main index of the Warsaw Stock Exchange. Based on intraday data from 2004-2019 we study the changes in significance and in the strength of the reaction of WIG20 to announcements of unexpected values of 13 indicators describing the American economy. On the basis of the event study analysis, we describe the reaction of the WIG20 index in the first few minutes after these kinds of announcements.

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Indian banking industry: a new evidence from a profitability perspective

Author(s): Shailendra Rai,Miia Chabot,Jean-Louis Bertrand,Imlak Shaikh / Language(s): English Issue: 2/2021

While India is set to become the world’s most populous country by 2050, it is also the home to the world’s largest number of unbanked individuals. This paper aims to investigate the profitability issue with a focus on public banks. Using a new methodology based on comparisons tests and panel analysis that test unobserved heterogeneities between banks. We show that public banks are not low performers, nor can private banks be considered high performers Finally, we show that the proportion of non-performing assets (NPAs) is a real concern and requires urgent attention of government and regulators for Indian banks to serve profitability their home market. Banks that make more profits on non-interest income are not necessarily less profitable than others. Further, outcomes favour the ideas that if public banks are able to clean-up their non-performing assets as well as follow a sound prudential regulation, their profits could strongly grow. Future reforms must consider the public bank’s key role in the growth of the India’s economic outlook, especially when it comes to projects of social importance and national priority. The study is based on 105 banks with cross-sections from 2003–2016; however, India’s government has initiated reforms in the banking segment, which has led to a significant decrease in government stake and the number of banks.

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