- Research Article
- 10.1016/j.jge.2026.100170
Does governmental activism affect firm leverage? Evidence from India
- Jan 01, 2026
- Journal of Government and Economics
- Saibal Ghosh
Publications from 2021 to 2026
Showing 10 of 20 papers
Does governmental activism affect firm leverage? Evidence from India
Integrating Advanced Metabolomics and Machine Learning for Anti-Doping in Human Athletes
The ongoing challenge of doping in sports has triggered the adoption of advanced scientific strategies for the detection and prevention of doping abuse. This review examines the potential of integrating metabolomics aided by artificial intelligence (AI) and machine learning (ML) for profiling small-molecule metabolites across biological systems to advance anti-doping efforts. While traditional targeted detection methods serve a primarily forensic role—providing legally defensible evidence by directly identifying prohibited substances—metabolomics offers complementary insights by revealing both exogenous compounds and endogenous physiological alterations that may persist beyond direct drug detection windows, rather than serving as an alternative to routine forensic testing. High-throughput platforms such as UHPLC-HRMS and NMR, coupled with targeted and untargeted metabolomic workflows, can provide comprehensive datasets that help discriminate between doped and clean athlete profiles. However, the complexity and dimensionality of these datasets necessitate sophisticated computational tools. ML algorithms, including supervised models like XGBoost and multi-layer perceptrons, and unsupervised methods such as clustering and dimensionality reduction, enable robust pattern recognition, classification, and anomaly detection. These approaches enhance both the sensitivity and specificity of diagnostic screening and optimize resource allocation. Case studies illustrate the value of integrating metabolomics and ML—for example, detecting recombinant human erythropoietin (r-HuEPO) use via indirect blood markers and uncovering testosterone and corticosteroid abuse with extended detection windows. Future progress will rely on interdisciplinary collaboration, open-access data infrastructure, and continuous methodological innovation to fully realize the complementary role of these technologies in supporting fair play and athlete well-being.
Read moreDid Deposit Insurance Reforms Improve Liquidity Creation? Evidence from Indian Banking
Abstract The role and relevance of deposit insurance as a mechanism to safeguard banking stability have been well recognised in the literature. However, little is known about whether and how such deposit insurance reforms affect bank liquidity creation. To inform this debate, we exploit the upward revision in the deposit insurance coverage for depositors in India in February 2020 and tease out the causal impact. The findings reveal that deposit insurance reforms increased liquidity creation for banks with a high capital buffer, consistent with the risk absorption hypothesis. The impact was primarily evident on the asset side and less pronounced on the liability side or off-balance sheet activities. Robustness tests reinforce these findings.
Read moreA Liquidity Mismatch Index (LMI) for Indian Banks
This paper constructs a liquidity mismatch index for domestic Indian banks using annual data from 2011 to 2022. The findings show that state-owned banks, on average, exhibit higher liquidity mismatches than private banks. Regression results indicate that liability-side liquidity pressures are not offset by additional asset-side buffers. The study highlights key policy implications for improving liquidity risk management.
Read moreTone at the top: leadership makeover and ESG focus in Indian private banks
Abstract Using a sample of listed private banks in India, the paper quantitatively investigates the issue of leadership makeover in Indian private banks and identifies its impact on ESG scores, including the individual pillars within the corporate governance framework. Using secondary data for 2011–2023, the findings indicate a positive and statistically significant impact of leadership makeover on ESG scores. The response differs across new and old private banks, as also concerning the pillars of ESG. In particular, freshly appointed CEOs in new private banks emphasise the environmental and social pillars of ESG, whereas CEOs of old private banks focus on the governance pillar. There is also a honeymoon versus consolidation phase, wherein CEOs in new private banks are typically proactive in the former phase, while those in old private banks have a more long-term approach. These findings suggest that the differential performance of private banks on the ESG score can be traced to CEO individualism, which is consistent with the Upper Echelons theory.
Read moreInvestigating the role of central bank's Emergency Liquidity Assistance as a lender of last resort
The reactions to the global financial crisis that started in 2007 and reached its peak in 2008 can be considered the beginning of new perspectives in financial markets.These responses included emergency liquidity assistance by the central bank and many restructuring and assistance programs for failed banks that included guarantees, capital increases, other forms of government support, etc.The widespread and excessive use of the concept of lender of last resort has been a defining and evolving feature of responses to various crises.Due to its multiple dimensions, this issue has influenced the economic and monetary policies of the central bank and can cause many problems for the banking and financial system.The purpose of the article is the need to review the payments that are made in the form of liquidity assistance to the banking system in the country.There are several frameworks in the world in this field, which are discussed in this article by examining the experiences of other countries at the time of liquidity assistance emergency and the importance of decision making and policy making.This article examines the interrelationship between banking stability and central bank liquidity assistance using dynamic panel data and data analysis.By examining the trend of regular overdrafts and facilities in Iran in order to provide liquidity to the banking system in the country, it can be noted that the role and functions of the central bank should be considered as the last resort.The results obtained in the research show that the central bank's liquidity assistance to banks with a lack of liquidity has had negative effects on the stability of the country's banking network.In this regard, access to the necessary strategies regarding the bankruptcy and recovery of weak banks is of particular importance.
Read moreDo deeds match words? India’s monetary policy needs to “walk the talk” for inflation anchoring
SMEs and financial dependence: how important are foreign banks?
PurposeThe importance of financial dependence of small and medium enterprises (SMEs) on their performance is a relatively unaddressed area of research. Relatedly, whether and to what extent foreign bank penetration exerts an impact in the presence of financial dependence also remains an open question. The purpose of the paper in this regard is to exploit unit-level data on Indian SMEs and assess the independent and interactive effects of financial dependence on SME behaviour, in the presence of foreign banks.Design/methodology/approachThis study uses fixed effects specification to address the issue. In subsequent analysis, this study also uses an instrumental variable approach for robustness.FindingsThe results indicate that financial dependence improves investment and employment, although there is a decline in productivity. These findings differ across size classes of SMEs. Similar is the evidence in the presence of foreign banks. In particular, foreign bank penetration leads to a decline in investment for micro and medium SMEs, although for small SMEs, the impact is found to be the opposite.Originality/valueTo the best of the author’s knowledge, this is one of the early within-country studies to examine the interface between SMEs and financial dependence and the role played by foreign banks in this regard.
Read moreGender gap in financial inclusion and financial stability: does climate risk make a difference?
ABSTRACT The gender gap in financial inclusion has remained stubbornly high. At the same time, policymakers have become increasingly focused on the potential impact of climate risk and, in particular, on the banking sector. The study combines these two strands of literature. In particular, it analyses the relevance of climate risk on bank stability when there exists a gender gap in financial inclusion. To inform this debate, we integrate data on climate risk with multiple waves of Findex data, focusing on both account ownership and use. The findings reveal that in countries with higher adaptive capacity, lower gender gap in account ownership exerts a positive impact on bank stability. In case of use, the impact is manifest more strongly in case of savings as compared with borrowings. The key takeaway from the analysis is policymakers need to be mindful of climate risk while assessing the link between financial inclusion and banking stability.
Read moreBank risk and returns: did prompt corrective action make a difference?
PurposeThe purpose of this paper is to assess the effects of prompt corrective action on bank risk and returns in an empirical framework.Design/methodology/approachThe paper uses a difference-in-difference specification to analyse whether and how PCA affects bank risk and returns. As part of robustness, the analysis also uses a fixed effects specification with Driscoll–Kraay standard errors to account for serial correlation and cross-sectional dependence.FindingsThe findings reveal that banks under PCA framework contribute less to systemic risk and exhibit higher market valuation. These findings differ across recapitalised versus non-recapitalised banks and for banks with differing asset quality, capital and profitability. The overall price impact is a decline in lending rates and deposit costs.Originality/valueTo the best of the author’s understanding, this is one of the early studies in the Indian context to carefully examine the linkage between PCA and bank behaviour.
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