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Palanisamy Saravanan

Bio: Palanisamy Saravanan is an academic researcher from Indian Institute of Management Tiruchirappalli. The author has contributed to research in topics: Enterprise value & Corporate governance. The author has an hindex of 9, co-authored 21 publications receiving 202 citations. Previous affiliations of Palanisamy Saravanan include Indian Institute of Management Ahmedabad & Indian Institute of Management Shillong.

Papers
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Journal ArticleDOI
TL;DR: In this article, the authors examined the performance implications of board size, composition and frequency of board meetings on the performance of banks and found that an increase in board size is associated with better bank performance within both low and high board size ranges.
Abstract: Purpose The purpose of this paper is to examine the performance implications of board size, composition and frequency of board meetings on the performance of banks. Design/methodology/approach The performance of banks is assessed on various parameters such as return on assets (ROA), Tobin’s Q, non-performing asset ratio (NPA ratio) and the net write-off ratio (NWO ratio). The effects of changes in board size and composition and frequency of meetings on the performance of banks are investigated using feasible generalized least square (FGLS) estimation of panel data covering a time span of five years concerning 40 banks incorporated in India. Frequency of board meetings is taken as a proxy for board activity and involvement. The authors have also tested for endogeneity issues in the model. Findings A curvilinear relationship was found between the board size and performance of banks. The authors have modelled a cubic form of the relationship for Indian banks. The authors’ findings indicate that an increase in board size is associated with better bank performance within both low and high board size ranges. Alternatively, increased board size is negatively associated with bank performance in the intermediate board size range. The study did not find any significant relationship between performance and frequency of board meetings and board composition. Research limitations/implications The behavioural variables reflecting the involvement of the board have not been incorporated in the model to determine the impact of board involvement on the performance of banks owing to the availability of data. It is hoped that this paper will be useful for major regulatory bodies such as the Ministry of Corporate Affairs (MCA), Securities and Exchange Board of India (SEBI), Company Law Board (CLB) and stock exchanges in India and other emerging economies in devising listing norms and other governance-related aspects. Originality/value Non-linear relationships between the board size and performance are not normally prevalent in emerging economies, especially in the banking sector. However, such a relationship exists among the Indian banks. This paper is the first of its kind to identify and address the same.

49 citations

Journal ArticleDOI
TL;DR: A systematic literature review of the research works on WCM has been performed using Google Scholar as discussed by the authors, where articles with citations of 50 and above as of June 05, 2018 are considered for the detailed citation based analysis.
Abstract: The purpose of this study is to take a stock of what has been studied on working capital management (WCM) so far and ascertain the factors which are more likely to be impacted by poor WCM. Moreover, it aims to spell out the areas for further research on WCM so that the body of knowledge can be expanded. A systematic literature review of the research works on WCM has been performed using Google Scholar. Articles with citations of 50 and above as of June 05, 2018 are considered for the detailed citation based analysis. Further, classification of such articles has been done on the basis of common themes followed by a thorough content analysis. The citation based analysis suggests that there is a growing popularity of studies related to WCM in recent times. However, majority of the impactful studies are published in relatively lower category journals. This further intrigues us to explore the content of such studies. Based on the content, the studies are classified under five different themes. It is found that majority of the highly cited articles have examined the relation between the WCM and profitability of the firms. Moreover, repetitive uses of few proxies in such studies have also been identified. This finding most probably explains the reason behind so many highly cited articles getting published in relatively lower category journals. In view of this, this study tries to explore further scope of research on WCM and lists down potential research questions for the future researches. Firstly, it provides an idea about the most cited area of researches related to WCM and the recent growth of studies in this domain. Academicians can decide upon their future area of research based on the findings related to the proxies and outcome from these studies. Secondly, it shows the most popular avenue of publishing the articles related to WCM which will certainly motivate the researchers to pursue such study. It has been found from the analysis that majority of the impactful articles are published in lower category journals. Therefore, this study identifies the reason behind the same and lists down some innovative research questions to provide some future research directions. Thirdly, the finance managers can use this finding to identify the relevant consequences of poor WCM. Finally, it can serve as a reference point for all future ideas related to WCM. The paper classifies the present literature on WCM into five major themes and performs a content analysis of the same. This is essential as the content analysis highlights different proxies used as inputs which effectively drive efficient WCM. Moreover, the study also identifies the huge scope of future research in the domain of WCM. According to our limited knowledge, such extensive literature review on WCM is rare.

41 citations

Journal ArticleDOI
TL;DR: In this article, the effect of corporate governance and performance variables on the executive as well as non-executive compensation structures in the Indian context was investigated. And the authors found that if the chief executive officer plays dual role (CEO cum chairman) in a firm, NEDs receive lower remuneration.
Abstract: Compensation received by the company directors attracted widespread attention in the recent literature. The existing research focused mainly on the executive compensation, and largely ignored non-executive compensation. Our study focused on the effect of corporate governance and performance variables on the executive as well as non-executive compensation structures in the Indian context. We obtained supporting evidence for managerial power theory as well as tournament theory in this paper. However, we could not find conclusive evidence for the agency theory with regard to executive compensation. Our research shows that as the board size enlarges, executive compensation rises further. However, we found that the proportion of non-executive directors (NEDs) on the board enhances executive compensation. We observed that if the chief executive officer plays dual role (CEO cum chairman) in a firm, NEDs receive lower remuneration. Our results reveal that the corporate governance variables namely board size, CEO duality and proportion of NEDs on the board have significant impact on the non-executive compensation. We affirm that our findings will be useful for the investors as well as institutions viz., the stock exchanges, academic institutions and the regulators as it integrates the relationship among the components of executive compensation, corporate governance and firm performance.

28 citations

Journal ArticleDOI
TL;DR: In this paper, the authors used data from 651 large Indian firms for the years 2006-2012 to find evidence of the beneficial role of independent directors in providing resources through their interlocks, contrary to the basic tenet that independent directors are chosen for their monitoring role to reduce agency costs.
Abstract: Drawing on resource-dependence theory, we hypothesized that in an emerging economy characterized by weak underdeveloped institutions, director interlocks would be a conduit of resources external to the firm. Using data from 651 large Indian firms for the years 2006–2012, we found that directors’, especially independent directors’, social capital and industry-level expertise enhanced firm performance. Our findings contribute by providing evidence of the beneficial role of directors in providing resources through their interlocks, contrary to the basic tenet of corporate governance that independent directors are chosen for their monitoring role to reduce agency costs.

24 citations

Journal ArticleDOI
TL;DR: In this article, the impact of corporate governance in the determination of firm value in the manufacturing firms in India has been studied and it is found that the firm value is significantly affected by the corporate governance variables for manufacturing firms.
Abstract: In this work an attempt is made to study the impact of corporate governance in the determination of firm value in the manufacturing firms in India. The purposing sampling method was adopted while choosing the sample firms that are listed in Bombay Stock Exchange (BSE). Out of 6000 firms listed in BSE, banking, insurance, financial firms were excluded as they are governed different bodes and their accounts and differently structured. Foreign firms, companies acquired during the period of investigation were also excluded, so the researchers choose a sample of 1732 firms and the relevant data were collected during the period 2001 to 2010. The data were analyzed using a multiple regression analysis to identify the factors that affect firm value. It is found that the firm value is significantly affected by the corporate governance variables for manufacturing firms.

24 citations


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01 Jan 2009
TL;DR: In this article, a second movement in institutional theory is emerging that gives greater emphasis to creativity and agency, and the authors develop this approach by highlighting coevolutionary processes that are shaping the varieties of capitalism (VoC) in Asia.
Abstract: In this paper we respond to calls for an institution-based perspective on strategy. With its emphasis upon mimetic, coercive, and normative isomorphism, institutional theory has earned a deterministic reputation and seems an unlikely foundation on which to construct a theory of strategy. However, a second movement in institutional theory is emerging that gives greater emphasis to creativity and agency. We develop this approach by highlighting co-evolutionary processes that are shaping the varieties of capitalism (VoC) in Asia. To do so, we examine the extent to which the VoC model can be fruitfully applied in the Asian context. In the spirit of the second movement of institutional theory, we describe three processes in which firm strategy collectively and intentionally feeds back to shape institutions: (1) filling institutional voids, (2) retarding institutional innovation, and (3) deploying institutional escape. We outline the key contributions contained in the articles of this Special Issue and discuss a research agenda generated by the VoC perspective.

214 citations

Journal ArticleDOI
TL;DR: In this article, a review of the literature of corporate governance and firm performance reveals that different measures have been used by the researchers to measure the performance and classified those measurements into accounting-based and market-based indicators.
Abstract: The main purpose of this study was to review the measurements that are related to the corporate governance. A close look at the literature of corporate governance and firm performance reveals that different measures have been used by the researchers to measure the performance. They classified those measurements into accounting-based and market-based indicators. Performance measurement has great significance in effective management of an organization and in the enhancement of the processes since only measurable things is manageable. Hence, the enhancement of the organizational performance requires some measurements to determine the impact of the level of organizational effectiveness upon business performance. This study can act as a reference to the researchers who are concerned with the firm performance measurements.

192 citations

Journal ArticleDOI
TL;DR: In this article, the authors examined the relationships among the study variables, which are top executive management characteristics and corporate performance in the context of Omani listed firms, with the help of two control variables.
Abstract: Consistent with the board of directors and top executive management’s role in ensuring and promoting investments for economic development, this paper aims to examine Omani executive management’s role in helping goals achievement in firms. This paper examines the relationships among the study variables, which are top executive management characteristics and corporate performance in the context of Omani listed firms, with the help of two control variables.,The study focused on a unique context, a developing nation, Oman and its exchange market for the past seven years (2011-2017). In addition, the data were collected from annual report according to board of directors and top executive management variables, and the financial data were obtained from DataStream. The study used the panel data approach to test the relationships characteristics of board of directors, top executive management and corporate performance.,Based on the obtained results, showed positive and significant positive relationships between some characteristics of top executive management and corporate performance, and significant negative relationships between others and the same. Specifically, board size, non-executive directors, general experience and account experience were in the former category, while board meeting was in the latter category. Finally, size and professional certificate of top executive management did not have a significant relationship with corporate performance.,This study, like previous studies has some limitations such as sample, country, variables and years; therefore, at the end of this study, many limitations and suggestions for future research studies are provided. Moreover, the study findings can be used by the market to assist managers to enhance corporate weaknesses.,The focus of the study was placed on the top executive management and corporate governance of Omani listed firms that has implications for practitioners particularly concerning the top executive management role. Added to this, the study conducted an investigation of the integration between board of directors and top executive management, with corporate governance among Omani listed firms. The study also provided information that has implications to academics when it comes to board of directors and top executive management strategies to encourage consideration of the relationship to develop best practices.

53 citations