Demonetization, Corporate Adaption And Financial Policy

Authors

  • Dipen Roy
  • Sandip Kumar Santra
  • Pawan Prasad

DOI:

https://doi.org/10.33516/rb.v44i1.57-68p

Keywords:

Demonetization, Corporate Performance, Electronic Transactions.

Abstract

Initially there was a speculation that demonetization would leave a great negative effect on corporate performance. This study unfolds that corporate sector, except some selected industries, was marginally affected by the demonetization drive. Rally of BSE Sensex from 26,000 in November 2016 to 36,000 in January 2018 confirms the truth. It has been observed that, instead of standing as onlookers, the corporate houses immediately began adopting strategies to combat the shock resulting from the demonetization drive. Besides introducing some changes in the methods of doing business they reaped the advantage of the resulting scenario. The authors have used both primary and secondary data to trace the resulting developments and the strategies the corporate houses adopted to cope with the challenges and shocks caused by demonetization drive of 2016. Methodology used is basically horizontal analysis of financial statements. The findings of the study can be counted as a generalized lesson useful for successful management of a firm in the event of systematic shocks caused by monetary interventions initiated by the government of the country.

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Published

2018-04-01

How to Cite

Roy, D., Santra, S. K., & Prasad, P. (2018). Demonetization, Corporate Adaption And Financial Policy. Research Bulletin, 44(1), 57–68. https://doi.org/10.33516/rb.v44i1.57-68p

Issue

Volume 44, Issue 1, April 2018

Section

Articles
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Europe PMC

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