Sahu (1999)1 in his article titled A simplified model for Liquidity Analysis of paper industry examined the liquidity

of paper industry. The earning before depreciation was computed and it was assumed that the liquidity management of a company in a particular year was effective if its earning before depreciation was positive. The empirical findings revealed a very high predictive ability of the estimated discriminant function. Nagarajan and Barthwal (2000)2 carried out a study on Profitability and size of firms and observed that the size of the firms and profitability were positively correlated. They found that large firms would be in a positive to take advantage of technical know how and economies in manufacturing, marketing, supervision and in raising capital. Debasish Sur (2001)3 in his study on Liquidity Management: An overview of companies in Indian power sector made a comparative analysis of the liquidity management in electricity generation and distribution industry. The study was conducted for the period 1987 1988 to 1996 1997. It was concluded that the overall liquidity should be managed in such a way that it should not slow down profitability and the liquidity should also contribute towards increase in profitability. Latha Arun Reddy (2002)4 under look a study entitled Profitability and Growth Indian Manufacturing Industries and examined the profitability of the Indian paper industry with reference to the financial statistics of joint stock companies in India by the RBI during the period 1950 1951 to 1973 1974. The prime objective of the study was to look at the relationship between growth and profitability using regression models and computed growth rates. The author observed that there was a strong positive correlation between growth and profitability in the paper industry. Marcus (2002)5 under took a study entitled Profitability and size of the firm: some future evidence in which he made an attempt to re- evaluate the

hypothesis that the rate of return increases with the size of the firm, against new data within an enhanced analytical frame work. He claimed that the hypothesis did not perform uniformly in all the industries and that it can not therefore be accepted as having general validity. Radha (2003)6 compared the Capital Structure and Profitability of Indian Airlines and Air India. She found that return on capital employed, liquidity and turnover were positively associated with debt equity ratio. She suggested that both the corporations should try to use less interest bearing loans. Natware and Vivek Sharma (2004)7 examined the Efficiency of Liquidity Management in Hindustan Petroleum Corporation Ltd. They conclud ed that the Liquidity Management in Hindustan Petroleum Corporation Limited is not satisfactory and they suggested that reducing the inventories can increase quick ratio and better inventory management increase creditability and liquidity. Floros and Vougas (2006)8 examined the hedging effectiveness of financial and commodity derivatives markets. Especially in the context of Indian commodity futures markets, there are very few studies on hedge ratio and hedging effectiveness. Reb and Connolly (2007)9 conducted two experiments on the endowment effect which examines the role of subjective ownership by independently manipulating factual ownership and physical possession of an object. Results suggested that the endowment effect did not rely on factual ownership by itself, but was the result of subjective feelings of ownership induced by possession of the object. Mishkin (2009)10 the initial signals of financial crisis are the following: decline in the prices of shares, increase in the interest rates and borrowing by the corporate sector, as well as non- anticipated changes in the inflation.

Reference
Sahu R.K., A Simplified Model for Liquidity Analysis of Paper Industry, The Management Accountant, Vol.37, No.3, Sep. 1999, pp.1027 1033. Nagarajan.M and Barthwal R.R., Profitability and Structure: A Firm Level Study of Indian Pharmaceutical Industry, Indian Economic Journal, Vol. 38, No.2, Oct Dec 2000, pp.70 84. Debasish Sur, Liquidity Management: An Overview of Four Companies in India Power Sector, The Management Accountant, Vol. 36, No. 6, June 2001, pp.407 412. Latha Arun Reddy, Profitability and Growth- Indian Manufacturing Industries, Artha- Vikas, Vol.XIX, No.1 2, Jan- Dec 2002,pp.1. Marcus M., Profitability and Size of the Firm; Some Future Evidence, Review of Economic and Statistics, Vol.51, 2002,

pp.104 -107. Radha, M.(2003), Capital Structure and Profitability Analysis. A Comparative Study of Indian Airlines and Air India. Natware. P.C and Vivek Sharma (2004), Liquidity Management of Hindustan Petroleum Corporation Limited An empirical study, The Management Accounting, Vol. 39. Floror C and Vougas D.V (2006), Hedging Effectiveness in Greek Stock Index Futures Market 1999 2001, International Research Journal of Finance and Economics, Vol, 5 Sep, pp. 7-18. Reb Jochen and Connolly Terry (2007), Possession Feeling of Ownership and the Endowment Effect, Judgment and Decision Making, Vol.2, No.2, pp 107- 114. Mishkin S Frederic (2009), The Economic of Money, Banking and Financial Markets, 9th Edition, Prentice Hall.