Title: Can issuers contribute to infrastructure development through municipal bonds in India? Evaluation of factors using AHP approach

Authors: Pali Gaur; Shikha Singh

Addresses: Regenesys Business School, Sandton, South Africa ' Sparsh Global Business School, Greater Noida, India

Abstract: This study aims to fill a gap in the literature by identifying, the most significant factors attributing to the slow growth of municipal bonds in India. Nine factors were identified, and then divided into three categories: proper governance, issuer's strength, government support. We used the analytical hierarchy process, a quantitative method of decision-making, to evaluate the importance of the factors presented in the study using data collected from 13 experts. The results showed that government support, as a category, is the most important. The analysis also indicated that audited reports, incentives to issuers, revenue stability and updated accounting and financial management practices are the most important factors among all nine sub-factors. We confer the propositions of the analysis for policy makers and other regulatory bodies through this paper.

Keywords: municipal bonds; issuers; municipal corporations; governance; AHP; infrastructure development; urban local body; ULB; bond market.

DOI: 10.1504/AAJFA.2025.143508

Afro-Asian Journal of Finance and Accounting, 2025 Vol.15 No.1, pp.41 - 58

Received: 23 Jul 2022
Received in revised form: 07 Jul 2023
Accepted: 02 Oct 2023
Published online: 30 Dec 2024 *

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