Author
Surenderrao Komera
Bio: Surenderrao Komera is an academic researcher. The author has contributed to research in topics: Bankruptcy & Capital structure. The author has an hindex of 5, co-authored 10 publications receiving 176 citations.
Topics: Bankruptcy, Capital structure, Cash flow, Corporate group, Debt
Papers
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TL;DR: The authors examined the extent to which financing constraints affect the research and development (R&D) expenditure of Indian manufacturing firms during the period 1991-2011 and found a significant positive relationship between a firm's R&D expenditure and internal cash flow.
102 citations
TL;DR: In this paper, the authors examined the relationship between executive compensation and firm performance among Indian firms and found that firm performance measured by accounting, as well as market-based measures, significantly affects executive compensation.
Abstract: The study examines the relationship between executive compensation and firm performance among Indian firms. The evidence suggests that firm performance measured by accounting, as well as market-based measures, significantly affects executive compensation. We also test for the presence of persistence in executive compensation by employing the system-generalised methods of moments (GMM) estimator. We find significant persistence in executive compensation among the sample firms. Further, we report the absence of pay–performance relationship among the smaller sample firms and business group affiliated firms. Thus, our findings cast doubts over the performance-based executive compensation practices of Indian business group affiliated firms.
79 citations
TL;DR: In this article, the relevance of the pecking order theory of capital structure among emerging market firms in the light of their debt capacity concerns was examined, and the authors found that the theory fares poorly among firms that face higher asymmetric information costs.
Abstract: We examine the relevance of the pecking order theory of capital structure among emerging market firms in the light of their debt capacity concerns. We consider the financing choices of all public listed Indian firms during 1992 to 2011 for the empirical analysis. The estimated annual pecking order coefficients range from 0.23 to 0.56, rejecting the argument that sample firms follow the pecking order while making their financing choices. We find that the pecking order theory fares poorly among firms that face higher asymmetric information costs. It is found to be performing relatively better among firms without debt capacity concerns. We also report an improvement in the pecking order coefficient once the concave nature of the relationship between debt issuances and financial deficit is considered. However, the pecking order approach when nested in the conventional leverage regression model, adds abysmally small amount of explanatory power. Overall, we argue that the pecking order theory fails to explain sample firms’ financing choices.
29 citations
TL;DR: In this article, the authors investigated the relationship between business group affiliation and research and development (R&D) activities of Indian firms and found that degree of related diversification is positively associated with the affiliates' innovation efforts.
Abstract: The decision to undertake investment in innovative activities is an important strategic choice made by firms. This study investigates the relationship between business group (BG) affiliation and research & development (R&D) activities of Indian firms. Using an empirical approach that accounts for endogeneity and selection bias, we observe that BG affiliation has significant positive influence on the sample firms’ R&D activities. Employing various proxies for institutional development, we show that the effect of BG affiliation on R&D declines with the improvements in institutional and regulatory mechanisms. Further, this study explores the linkages between diversification strategies at the group level and R&D investments by firms affiliated with BGs. Results show that degree of related diversification is positively associated with the affiliates’ innovation efforts.
18 citations
TL;DR: This article examined the exante performance of 1185 firms that filed for bankruptcy between 1992 and 2009 and found that firm specific poor operating performance and industry wide distress are the principal causes of corporate distress.
Abstract: We examine the ex-ante performance of 1185 firms that filed for bankruptcy between 1992 and 2009. Evidence suggests that firm specific poor operating performance and industry wide distress are the principal causes (contributing 42% each for cash flow shortfall) of corporate distress. We observe vitiating investment, operating, and financing performance of the sample firms starting from four years prior to their bankruptcy. Further, we report less severe decline in capital expenditure in the case of state controlled firms and business group affiliated firms, indicating the presence of "soft budget constraints" among the sample firms. Logistic regression, estimating firm level distress probabilities offer indirect evidence for "risk sharing argument" among business group affiliates.
7 citations
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TL;DR: In this article, the authors report the phenomenon of supply chains with the poor as suppliers or distributors in developing countries and identify operations management (OM) research opportunities, and provide some stylized models to serve as potential seeds for modeling-based research in this area.
Abstract: Many social enterprises and some companies have developed supply chains with the poor as suppliers or distributors to alleviate poverty and to create revenues for themselves. Such supply chains have created new research opportunities because they raise issues fundamentally different from those examined in the existing operations management literature. We report this phenomenon of supply chains with the poor as suppliers or distributors in developing countries and identify operations management (OM) research opportunities. We also provide some stylized models to serve as potential seeds for modeling-based research in this area.
122 citations
TL;DR: Wang et al. as mentioned in this paper used the gray correlation method to empirically test the relationship between green finance and the upgrading of industrial structure in China and found that green finance has the strongest effect on the tertiary industry and will lead to its rapid development.
99 citations
TL;DR: In this article, the authors used Generalized Method of Moments (GMM) estimation of panel data for 664 firms from selected 20 emerging markets during the period of 2006-2013, and found that institutional quality has significant impact on R&D investment.
89 citations
TL;DR: In this paper, the authors examined 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.
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...
88 citations
TL;DR: In this paper, the authors examined how business group affiliation influences the relationship between board diversity and firm performance as a contextual/confounding factor, and found that board demographic diversity is positively associated with the firm performance (Tobin's Q) of standalone firms, but this association is negative for group-affiliated firms.
88 citations