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Research regarding the behaviour of the Indian capital market has been very limited. The risk-return relationship has been studied using only the Capital Asset Pricing Model; and the factor-structure of the return-generating process has not been studied. The present study subjects the CAPM and the APT hypotheses about the risk-return relationship to a series of empirical tests. The factor-structure of the return-generating process is identified using a multi-factor macro-economic model, which draws from the results of the asset pricing research in the West and the macro-econometric studies of the Indian economy. The empirical tests for the two models are based on the standard CAPM and APT methodologies which are modified to suit the Indian conditions. The factor-structure represented by the factor-score series (generated during the factor extraction process of the APT) is identified using a set of eight independent macro-economic variables. The sample returns for this study consist of the weekly returns for 78 securities from the Specified group and 20 securities from the Cash group of the Bombay Stock Exchange for the five year period from 1986 to 1990. The sample period is divided into two overlapping three-year estimation periods (1986-88 and 1987-89) and two non-overlapping one-year test periods (1989 and 1990).Based on the degree of observed normality of the weekly returns, the Specified group sample is divided into two sub-groups. The results suggest that the risk-return relationship in the Indian market is not in accordance with the CAPM hypotheses. The hypothesis of positive relationship between expected returns and the market risk-factor is not supported by the results. However, the prediction about non-pricing of the residual risk-factor is observed to be valid. On the other hand, the hypothesis of joint significance of risk-premia for a set of APT risk-factors is supported during most part of the sample period, especially for the five-factor model. The results suggest that the factor-structure of the return-generating process is characterised by the following systematic risk factors: growth risk with the index of industrial production-electricity as the proxy; interest rate risk with interest rates in the call money and the long-term government securities markets as the proxies; return on alternative assets (gold); inflation risk with Ml as the proxy; external sector performance with exchange rates and imports as the proxies; and investment and credit conditions in the market with M4 as the proxy. Based on these results, it may be concluded that the return-generating process of Indian capital market is characterised by a multi-factor macro-economic model and the risk-return relationship is in accordance with the APT hypothesis.

Complexity of organizations from the point of view of designing control systems, increased as we move from manufacturing to service organizations, and from for-profit to nonprofit organizations. The nonprofit organizations which are also professional organizations would rank as the most complex organizations. Study of literature and cases on nonprofit professional organizations showed that there is need for a critical look at the applicability of the existing framework of management control systems to these organizations. This called for an in-depth study of control systems of such organizations. Public hospitals are excellent example of such organizations. Hospitals are complex organizations, more so if they are state-owned and run on nonprofit lines. Public hospitals in recent times have drawn flak from several quarters for their poor performance. Studies on these hospitals are few and fragmented in nature. There is, therefore, need for an in-depth study of the control system of hospitals from practical side as well. The issues taken up for study in this dissertation are: 1. Identification of the goals of the hospital chosen: and, on the basis of this, identification of the generalized set of goals for hospitals. 2. Manifestation of control system of this hospital, and its congruence with the goals of the hospital. 3. Scope for enhancing the existing framework of control systems for hospitals as representative of professional service organizations. 4. Adaptability of control systems practiced in for profit hospitals for nonprofit hospitals. An exploratory study of this nature would be best served by a comprehensive and indepth study of a public hospital. Three hospitals in Delhi, run by the Central Government, were initially chosen to understand the issues involved in hospital management. After one round of data collection it was decided to concentrate on the All India Institute of Medical Sciences (AIIMS), as it is considered to be premier among the public hospitals. A premier hospital was chosen so that useful inferences can be drawn from it for other hospitals. The goals of the hospital were first identified. They are quality, beach, and resource endowment. Quality can be called the stated goal of AIIMS, and reach the emergent goal. Resource endowment is instrumental to achieving the other goals. Quality and Reach seem to conflict. However, consensus seems to exist among the stakeholders about eh primacy of the goal quality. Later, based on this study a generalized set of goals and their dimensions for hospitals in general has been proposed. The control system, as it operates, is categorized under two processes: ‘Professional control processes and ‘budgetary control system. Professional control is found to be effective in achieving quality but is at dissonance when it comes to achieving reach. The process mechanisms are discussed in terms of goal reiteration, legitimation, selection, and enculturation. At the outset, it seems that outpatient services are maintained to satisfy reach, and the inpatient services for quality. The budgetary control system is found wanting in several respects. The objective of the system seems to be inadequately defined as expenditure control, rather than efficient utilization of resources. The rationale for the system is furnished in terms of the contexts in which the system operates. Considering the peculiarities of the functioning of professional service organizations, which the existing categories of responsibility centre fail to capture, a new concept of Mission Centre has been introduced and its characteristics are outlined. The mission centres are managed by professionals, and they are governed by their values and beliefs, and norms. The values and beliefs are inculcated through the process of enculturation. Norms are derived from professional and organizational considerations. Some propositions have been offered in the light of the discussion on these concepts. In the context of the budgetary control system differences between the ‘DSS Approach’ as prescribed in the literature and perhaps practiced by for- profit organizations and the ‘Vigilance Approach’ as practiced in state-owned nonprofit organizations have been discussed.

Oversubscription of public issues of new equity shares was a common phenomenon experienced in India during the Seventies. The overwhelming public response to new equity issues, which are normally considered riskier than the existing shares, makes one wonder about their economic justification. This dissertation attempts an enquiry in that direction by examining the performance – measured by risk – during 1970-78. The objectives of the study were: (a) To measure initial performance, that is, performance from the date of closure of subscription list to the date of first quotation. (b) To see if initial performance is significantly different across: (i) different types of new issues, namely initial issues of new companies, further issues of existing non-FERA companies and FERA issues; (ii) different industries; (iii) the issues made at premium and the issues made at par; (iv) different categories of investors as defined by the number of shares applied for. (c) To test empirical validity of some of the popular hypotheses about performance of new issues. (d) To test market efficiency by measuring the after-market performance, that is, performance after the trading has started in the securities. A sample of 98 issues was selected from the newly quoted shares on Bombay Stock Exchange. A modified form of Capital Asset Pricing Model was used to measure the performance. The model accommodates changes in the systematic risk of securities as they get matured. A framework is developed for different methods to compute security return for initial performance. Implications of different financing strategies for new issues are discussed. An approach is given for computation of market return in Indian context. The results show positive initial performance irrespective of the method of computing the security returns. The performance is significantly different across different types of new issues and across different industries. Issues made at premium were not found to be better performers compared to those made at par. Lower categories of investors fetched higher returns compared to higher categories of investors. The results of examination of after-market performance indicate that the new issues continue to yield extra-normal returns up to one month after the trading has started in them. After the first month of trading, however, there are few departures from efficiency. The study has implications for operators in the securities market, corporations making public issues and policy-makers in the field of capital issues.

The construction industry plays an important role in the overall economy, social growth and development by its contribution to gross domestic product and employment. It is estimated that during the Sixth plan, the industry might have work potential of about Rs. 47000 crores in major sectors against an outlay of Rs. 82000 crores for the same sectors. The industry employed 11.83 lakhs of people in 1982 and the estimates indicate that above work potential might have generated 14000 million mandays of skilled and semiskilled labour and 6110 million mandays of managerial and technical staff. At the same time there is a growing concern about time and cost overruns on several projects already set up or being set up in India. Construction is one of the major phases of a project. Several reasons for such overruns are attributed to the nature of the construction industry. It is found that this industry is underdeveloped both in terms of trained manpower and essential equipment. Very few construction firms use techniques like networks for planning and delegation of authority at different levels leading to dilution of responsibility. Such dilution ultimately results in delayed during execution of projects. The objectives of the present study, therefore, were the followings: (1) To design a management control system for construction projects on the basis of general framework of control system and techniques of networks. (2) To identify problems of implementing a control system in a large construction firm and suggest solutions to such problems. (3) To test whether or not the organizational change arising due to implementing the new system is helpful to the organization, and (4) To develop measures of effectiveness of the control system. Methodology A large public limited construction firm was selected for the purpose of this study. Date for testing various hypotheses was collected through questionnaires. Pearson’s product moment correlation was used to identify the relationships. Step-regression was used to find out importance of various independent variables in explaining dependent variables. Major Findings (1) The Design and implementation of the management control system on the basis of general framework and techniques of networks were perceived to be leading to improved performance during execution of the project. (2) Implementation of the control system leads to changes in input information available to decision makers, changes in perspectives of decision-makers, and changes in decision process. (3) Perception of pay offs and increased level of communication are more important in affecting decision process. (4) The new system was perceived to be relevant, and people working with it showed higher commitment to and positive attitude towards the system. (5) Relevance of the system is associated with increased with increased level of communication, increased understanding of activities and usefulness of the system. (6) Commitment to the system is associated with felt-need for the system and commitment to the organization. (7) Attitude towards the system is associated with understanding of objectives, purposes and process of the control system. (8) Inspite of diverse requirements of clients and high competition for skilled manpower, R&D activities in construction methods are moderate. (9) The use of mathematical techniques in inventory control and use of computers in the industry are low. (10) Network techniques in planning and control of activities are used moderately.

This study examines budgeting from three different perspectives. 1. Industry practices and the importance of budgeting to organizations. 2. The relationships between the objectives of budgeting (planning evolution, motivation, coordination and education) and certain organizational variables viz. technology, participation, superior, subordinate relationship, need for independence and technical qualification. 3. Interrelationships among, participation, evaluator style, need for independence, performance and technology are studied in the context of budgeting. The fertilizer industry is the setting for the field study. An experiment, in which 71 students of a business school participated, was performed to generate additional data and to validate some of the findings of the field study. Methodology: Questionnaire data was obtained from six companies in the industry and from plant managers of two organizations, senior managers in these two organizations. Senior managers in these two organizations were also interviewed. Company records and publications pertaining to the industry were used to assess the importance of budgeting to organizations and to understand budgeting practices in the industry. The Findings 1. Organizations in the industry use budgets for planning. Budgets are established for all major departments. 2. Performance against the budget is not used for evolution or motivation. 3. The periodicity with which performance is reviewed is low. 4. Operating managers spend little time on the budget activity indicating that it is not viewed as important for day to day operations. 5. Technical education, technology and participation are positively associated with certain dimensions of budgeting viz. planning, coordination and evaluation. 6. Superior subordinate relationship and need for independence are negatively associated with motivation, coordination, evaluation and education. 7. Participation is positively associated with attitude and also with relevance. 8. Need for independence is positively associated with attitude but not participation. 9. Superior-subordinate relationship is positively associated with both attitude and participation. 10. The experimental study does not show an association between participation and performance or between participation and attitude. 11. The evaluator style is not associated with either attitude or performance. 12. Setting budgets does not appear to improve performance. 13. A new look at the impact of participation, budgeting and nature of the task is in order. The study indicates the existence of certain objectives or control. An understanding of the relationship between these objectives and organizational variables aids in the design of control systems and in diagnosing problem areas in the operation of various control systems. The mapping of various interrelationships between dimensions of control on the one hand and organizational variables on the other helps in developing a theory of control systems.

The stock market plays an important role in the allocation of capital resources. The market is allocation ally efficient when it maintains equivalent rates of return on comparable investments, for this would channelize funds to those users who utilize them most profitably. The pricing of securities is the principal device by which the market allocates capital. Consequently, the efficiency of the pricing mechanism influences the performance of the stock market, in discharging its role as an allocator of funds. In the past few years, there has been a substantial increase in the activities of the Indian stock markets, particularly with respect to the amount of capital raised. During the period April 1980 to March1982, the amount of funds raised from the stock market was of the order of approximately Rs.950 crores. This is in contrast to the sum of Rs.840 crores (approximately) raised during 19704-9. The Government policy also has favored increased mobilization of resources through the stock market. Given the increased level of activity, it is essential to examine the efficiency of the pricing mechanism of the stock market for the absence of the same would render it a poor allocator of resources. According to the theory of efficient markets, stock markets are efficient when prices fully reflect available information. The theory essentially asserts that ‘by acting on publicly available information it is not possible to improve returns beyond the stock market‘s assessment of what is the fair rate of return. The efficiency of the stock market can be of three kind’s viz., (i) weak form of efficiency (ii) semi-strong form efficiency and (iii) strong-form of efficiency. ' The present study attempts an examination of the weak and the semi- strong forms of efficiency of the pricing mechanism in the Bombay Stock Exchange. Further, the study attempts to estimate the stock market's speed of adjustment to information. The period of study is the six year period-starting from January 1976 and ending with December 1981. Two approaches have been used to investigate into the weak form of market efficiency. The first involves testing for statistical independence of successive price changes. The second approach involves the direct testing of different filter rules to determine whether these rates provide profits greater than a buy and hold strategy. The results of the test of the weak form of efficiency indicate that the historical price» series does not offer exploitable opportunities to the investor. The examination of the semi-strong form of market efficiency was done by analyzing the impact of the announcement of the issue of bonus shares by corporate managements, on the price of equity shares of these companies. Forty bonus issues, declared during the six year period starting January 1976 and ending with December 1981, made up the sample. The Market Model was utilized for isolating the systematic influence on the behavior of security returns. The behavior of the abnormal returns of securities suggests anti- cipation by the market of the declaration of bonus shares. The results indicate that the market tends to corroborate the new information made available with other information at its disposal. The price of the share is determined after taking into account all the available information. The stock market's speed of adjustment to information can be estimated by identify in the beginning and ending times of the adjustment process. Methodology based on the Shewhart control chart theory was employed for ‘Eh s purpose.' The results indicate the existence of two distinct clusters. ..The first cluster includes shares whose adjustment times to new information are short. The second cluster consisted of shares having longer adjustment times. Several implications of the findings of the study have been drawn for the market participants. The limitations of the study and areas of further research have also been indicated.