Mehul Raithatha

Bio: Mehul Raithatha is an academic researcher from Indian Institute of Management Indore. The author has contributed to research in topics: Corporate governance & Emerging markets. The author has an hindex of 6, co-authored 21 publications receiving 139 citations. Previous affiliations of Mehul Raithatha include Indian Institute of Management Ahmedabad & University of Mumbai.

Are internal governance mechanisms efficient? The case of a developing economy

Abstract: This study examines the relationship between internal corporate governance mechanisms and corporate financial performance. We examine this relationship considering the endogeneity between corporate governance and firm characteristics utilising a sample of large listed Indian firms. We construct and validate a "Corporate Governance Index (CGI)" based on six internal governance mechanisms affecting the governance of Indian firms. The study estimates the model using the simultaneous equation method. The results obtained suggest that corporate governance has a positive association with corporate financial performance. Thus, the firms will gain by improving their corporate governance as it leads to better corporate financial performance, which is in the interest of all stakeholders.

Impact of corporate governance on financial disclosures: Evidence from India

Abstract: The paper aims at identifying impact of corporate governance variables i.e. board structure (board size, board independence, board activity and board busyness) and ownership structure (foreign promoters holding, institutional shareholding and CEO duality) on financial disclosures made by the Indian firms. Using cross sectional data of 325 listed firms for the financial year 2009-10, we compute financial disclosure score (using 171 checklist points) based on disclosure requirements of accounting standards. We find average disclosure score of 73%, maximum and minimum being 100% and 46% respectively. Our finding support agency theory in terms of monitoring role of board since board size is found to be significant however we do not find any influence of board independence on the disclosures. The study also supports resource dependency theory in terms of outside directorship which might provide exposure to different corporate environment, brings diverse perspectives and knowledge to the directors and this in turn leads to improved disclosures. We also support the notion that having foreign promoter shareholding improves disclosures.

Knowledge spillovers and new ventures' export orientation

Abstract: textWe draw on the knowledge spillover literature to suggest that a country's proportion of export-oriented new ventures represents an outcome of knowledge spillovers that stem from foreign direct investment (FDI) and international trade (export spillovers) as well as a source of knowledge spillovers (entrepreneurship spillovers). To test the hypotheses, we use macrolevel data from 34 countries during the period 2002-2005. We find that the relationship between FDI and international trade on the one hand and a country's proportion of export-oriented new ventures on the other differs for higher- and lower-income countries. In addition, a country's proportion of export-oriented new ventures affects the subsequent emergence of new businesses.

Firm performance, corporate governance and executive compensation in Pakistan

Abstract: This study examines the effects of firm performance and corporate governance on chief executive officer (CEO) compensation in an emerging market, Pakistan. Using a more robust Generalized Method of Moments (GMM) estimation approach for a sample of non-financial firms listed at Karachi Stock Exchange over the period 2005–2012, we find that both current- and previous-year accounting performances has positive influence on CEO compensation. However, stock market performance does not appear to have a positive impact on executive compensation. We further find that ownership concentration is positively related with CEO compensation, indicating some kind of collusion between management and largest shareholder to get personal benefits. Inconsistent with agency theory, CEO duality appears to have a negative influence, while board size and board independence have no convincing relationship with CEO compensation, indicating board ineffectiveness in reducing CEO entrenchment. The results of dynamic GMM model s...

Acquiring new technologies and capabilities: A grounded model of acquisition implementation

Abstract: In this study, we explore seven in-depth cases of high-technology acquisitions and develop an empirically grounded model of technology and capability transfer during acquisition implementation. We assess how the nature of the acquired firms' knowledge-based resources, as well as multiple dimensions of acquisition implementation, have both independent and interactive effects on the successful appropriation of technologies and capabilities by the acquirer. Our inquiry contributes to the growing body of research examining the transfer of knowledge both between and within organizations. Propositions are developed to help guide further inquiry into the dynamics of acquisition implementation processes in general and, more specifically, the process of acquiring new technologies and capabilities from other firms.