Anshu Agrawal

Bio: Anshu Agrawal is an academic researcher from Indian Institute of Management Ahmedabad. The author has contributed to research in topics: Capital structure & Revenue. The author has an hindex of 2, co-authored 2 publications receiving 19 citations.

Sustainability of airlines in India with Covid-19: Challenges ahead and possible way-outs

Abstract: Coronavirus outbreak has been highly disruptive for aviation sector, threatening the survival and sustainability of airlines. Apart from massive losses attributed to suspended operations, industry foresee a grim recession ahead. Restrictive movements, weak tourism, curtailed income, compressed commercial activities and fear psychosis are expected to compress the passenger demand from 30 to 60%, endangering the commercial viability of airlines operation. Fragile to withstand the cyclic momentary shocks of oil price fluctuation, demand flux, declining currency, airlines in India warrants for robust structural changes in their operating strategies, business model, revenue and pricing strategies to survive the long-lasting consequences of Covid-19. Paper attempts to analyze impact of lockdown and covid crisis on airlines in India and possible challenges ahead. Study also suggests the possible way-out for mitigating the expected losses.

Modified Total Interpretive Structural Model of Corporate Financial Flexibility

Abstract: In present dynamic environment, financial flexibility has become an important constituent of corporate finance decisions. Financial flexible firms are ostensibly more resilient to exogenous shock vis-a-vis non-flexible firms. Capital structuring decisions, payout decisions and conservative cash policy are various tactics adopted by financial managers for attaining financial flexibility. Present study attempts to identify key enablers of financial flexibility and structure them into a total interpretive structural model using modified TISM approach. Using literature review, business environment, cost of capital, stage of life cycle, free cash reserves, agency relations, payout policy, and leverage are identified as seven constituents of corporate financial flexibility. Based on their interpretive interdependencies/ relationship, a hierarchical model of financial flexibility is developed exhibiting a holistic view of financial flexibility decisions from triggers to final outcome. The findings result into a four-step novel framework situation-actors-actions-outcome framework of financial flexibility, with business environment and stage of life cycle as situation/ triggers, free cash reserves and agency as actors/precursors, payout and leverage as actions/ decisions and cost of financing as outcome of financial flexibility decision. Model lends credence to financial flexibility as situation-specific decision. It is a reservoir to address exogenous income and investment shocks. Firms generating free cash flow are invariably flexible to meet income and investment shocks. However, firms with fluctuating operations need buffer in form of cash reserves or debt capacity to address the contingencies. Investment in good corporate governance practices can serve as an intangible reserve and an alternative to costly tangible ways such as cash surplus and leverage. Such firms with shareholders’ support are deemed more flexible in payouts, capital structuring, investment decisions and overall operations, and less reliant on external financing.

The impact of covid-19 on financial management: evidence from Romania

Abstract: The COVID-19 pandemic has disrupted every facet of life globally. Business and commerce are key areas where the monetary crunch has been acutely felt. This study aims to analyze the various key cha...

Optimal Capital Structure and Industry Dynamics

Abstract: This paper provides a competitive equilibrium model of capital structure and industry dynamics. In the model, firms make financing, investment, entry, and exit decisions subject to idiosyncratic technology shocks. The capital structure choice reflects the tradeoff between the tax benefits of debt and the associated bankruptcy and agency costs. The interaction between financing and production decisions influences the stationary distribution of firms and their survival probabilities. The analysis demonstrates that the equilibrium output price has an important feedback effect. This effect has a number of testable implications. For example, high growth industries have relatively lower leverage and turnover rates.

A review of tourism sustainability in the era of Covid-19

Abstract: Abstract In the era of COVID-19, most of the countries are in a dilemma about the recovery of the loss of tourism industry due to the lockdown or to change the track from the disaster to a rare, invaluable, and unexpected opportunity as a glimpse of hope in future through the emergence of new paths. During this pandemic, as per UNWTO, the tourism industry is the most affected globally. The purpose of the study is to review some dimensions to come back with preventive measures so that the tourism sector can recover the loss as soon as possible and to reset a better pathway towards the sustainable development of the tourism industry. This paper is designed based on a literature review. The research methodology technique is based on a previous literature review on the various dimensions of tourism sustainability in the era of Covid-19. The results of this systematic literature review-based discussion reveal the dimensions of tourism sustainability in the era of Covid-19 and help the tourism sector in prospective recovery with some transformations. Various stakeholders of the tourism industry are offered practical recommendations to rethink, revive and reset the tourism sector for maintaining sustainability during and after this unexpected critical situation.