Green apparel buying behaviour: A study on Indian youth

Changes in demographics and availability of global clothing brands have brought several changes in Indian apparel industry. Green or organic clothing brands are becoming popular among Indians and likely to contribute to the revenues of apparel sector. Global and national apparel manufacturers have introduced organic clothing lines to cater to ecological conscious consumers. The purpose of this research was to examine the effect of consumer susceptibility to interpersonal influence (CSII), past green behaviour, green peer influence and green apparel knowledge on Indian youth's green apparel buying behaviour. A mix of convenience and random sampling was used for data collection. The sample (n = 981) comprised of youth of age group 18–24 years. Structural equation modelling was used to test the hypothesized relationships. Findings suggest that past green behaviour influenced green apparel buying behaviour. Green peer influence and green apparel knowledge had no impact on green apparel buying behaviour. Moreover, CSII had no influence on green apparel buying behaviour. The findings differ from earlier studies that suggest influence of social norms and peer group had an effect on green buying behaviour. Practical implications of the present study are discussed.     

Latent liquidity: A new measure of liquidity,with an application to corporate bonds

We present a new measure of liquidity known as “latent liquidity” and apply it to a unique corporate bond database. Latent liquidity is defined as the weighted average turnover of investors who hold a bond, in which the weights are the fractional investor holdings. It can be used to measure liquidity in markets with sparse transactions data. For bonds that trade frequently, our measure has predictive power for both transaction costs and the price impact of trading, over and above trading activity and bond-specific characteristics thought to be related to liquidity. Additionally, this measure exhibits relationships with bond characteristics similar to those of other trade-based measures.     

Firm specific and macro herding by professional and amateur investors and their effects on market volatility

We find a herding tendency among both amateur and professional investors and conclude that the propensity to herd is lower in the professionals. These results are obtained both when we consider herding into individual stocks and herding into stocks in general. Herding depends on the firm’s systematic risk and size, and the professionals are less sensitive to these variables. The differences between the amateurs and the professionals may be attributable to the latter’s superior financial training. Most of the results are consistent with the theory that herding is information-based. We also find that the herding behavior of the two groups is a persistent phenomenon, and that it is positively and significantly correlated with stock market returns’ volatility. Finally, herding, mainly by amateurs, causes market volatility in the Granger causality sense.