Economics and Business
Quarterly Reviews
ISSN 2775-9237 (Online)
Published: 12 July 2021
Demonetization Impact on Liquidity of Large Corporates in India
Srinivas Gumparthi, Pradeepa S.
SSN School of Management, India
Download Full-Text Pdf
10.31014/aior.1992.04.03.369
Pages: 57-66
Keywords: Demonetization, Liquidity, Corporates, MSME, Langitudinal
Abstract
This paper ‘Demonetization Impact on Liquidity of Large Corporates in India’ focuses on the changes in the Liquidity pattern of the companies’ in-order to cope up with the Business Risk that emerged due to the unforeseen Demonetization Policy of the Government of India. The study aimed at finding the performance of various sectors on liquidity parameters during pre and post demonetization period. The study covered the companies listed in NIFTY 50 over the period of 6 years from 2014-2019. The methodology used for analysis is the longitudinal study under descriptive analysis as it involves the repeated observations of the same variables over a period of time. As the paper focuses on the top companies listed, though companies faced the uncertainty during that particular period of demonetization, they bounced back at the earlier than the MSME companies. Some sectors like FMCG, Pharmaceutical were immune to demonetization as it has an inelastic demand in the market and demonetization created giant opportunities for the software sector as the country has been shifted towards digitalization. Found short-term implications for the cash-intensive sectors but in the long run it helps in the growth of the economy, which in turn will have a positive correlation with the growth of companies.
References
Charan Singh (March 2018), “India since Demonetization”, Economics and Social Science, Indian Institute of Management, Bangalore
Dr Sutinder Singh (November, 2017), “Demonetization and its impact on Indian Economy”, International Journal of Engineering Sciences & Research Technology
Nomita Sharma (2017), “Innovation for Survival: Entrepreneurial Response of Indian MSMEs to Demonetization”, University of Delhi, New Delhi
Dr.Nimalathasan B, Priya K (Aug 2013), “Liquidity Management and Profitability: A Case Study of Listed Manufacturing Companies in Sri Lanka”, University of Jaffna
Monika Bolek, PhD, Bartosz Grosicki, M.A. (Jan 2015), “How to evaluate Financial Liquidity of a company using the Discriminant Analysis”, University of Lodz, Faculty of Economy and Sociology, Lodz, Poland
Mrs.S.Vimala, Dr.J.P.Kumar (Dec 2016), “An Analysis of Liquidity Management of Select Pharmaceutical Companies in India”, Rathinam Institute of Management, Coimbatore (TN), India
Dr. (Smt.) A.N.Tamragundi, Purushottam N Vaidya (Dec 2016), “Liquidity – Profitability Relationship: A Study of Ten Leading FMCG Companies in India”, International Journal of Management (IJM)
Rohit Bansal, Vipan Bansal (Apr 2012) “A Research Paper on Determinants of Corporate Liquidity in India”, International Journal of Marketing and Technology
Eleonora Kontusa and Damir Mihanovicb (2019), “Management of liquidity and liquid assets in small and medium-sized enterprises”, Economic Research-Ekonomska IstraZivanja
Shweta Mehrotra (Apr 2013), “Working Capital Trends and Liquidity Analysis of Fmcg Sector in India”, IOSR Journal of Business and Management (IOSR-JBM)