T. Mallikarjunappa

Bio: T. Mallikarjunappa is an academic researcher from Mangalore University. The author has contributed to research in topics: Stock market & Earnings. The author has an hindex of 8, co-authored 36 publications receiving 224 citations. Previous affiliations of T. Mallikarjunappa include Central University of Kerala.

A modified directional distance formulation of DEA to assess bankruptcy: An application to IT/ITES companies in India

Abstract: One of the most significant threats of a national economy is the bankruptcy of its firms. Assessment of bankruptcy provides valuable information on which governments, investors and shareholders can base their financial decisions in order to prevent possible losses. Data envelopment analysis (DEA) has generally been used to assess the best relative efficiency of decision making units (DMUs). In this paper we modify directional distance formulation of DEA to assess bankruptcy. The method we develop is the most general non-oriented, non-radial directional distance model. This model measures worst relative efficiency within the range of zero to one. This is contrary to the best relative efficiencies of conventional DEA method. Our model locates worst performing DMUs and determines an inefficient frontier. This model simultaneously contracts output and expands input. This idea of bankruptcy assessment is in agreement with economic theory of bankruptcy. The study introduces a precise and comprehensive bankruptcy measure that could be used as an early warning system for bankruptcy assessment. Further, we apply our model to Information Technology (IT) and IT enabled services (ITES) companies in India as a case study. We find that Hewlett-Packard Globalsoft Ltd. has the least possibility of bankruptcy and Logix Microsystems has the greatest possibility of bankruptcy.

CSR expenditure, mandatory CSR reporting and financial performance of listed firms in India: an institutional theory perspective

Abstract: Purpose The purpose of this study is to examine the moderating effect of mandatory corporate social responsibility (CSR) reporting on CSR expenditure and financial performance of listed firms in India. It uses institutional theory to explain the relationship. Design/methodology/approach The study used the Indian stock market as the testing grounds and applied descriptive statistics, hierarchical regression and panel regression with fixed effect assumptions for 800 firm-year observations for the period 2010 to 2019. Findings The study shows a positive and statistically significant association between CSR expenditure and financial performance [return on assets (ROA) and Tobin’s q]. Also, the study shows a positive association between financial performance (ROA and Tobin’s q) and CSR expenditure. Furthermore, the study shows that mandatory CSR reporting leads to an increase in CSR expenditure. Finally, the study shows that mandatory CSR reporting moderates the association between CSR expenditure and financial performance stock price returns). The study control for any form of heteroscedasticity, serial correlation and endogeneity effects. Research limitations/implications The study used one country data to represent the emerging economies. The use of one country data can limit the generalisation of the study. Originality/value Different studies have examined mandatory CSR reporting association with CSR disclosure or financial performance. However, this study takes the discussion further and contribute a novelty to sustainability development studies with the examined moderating effect of mandatory CSR reporting in the association between CSR expenditure and financial performance.

The impact of derivatives on stock market volatility: a study of the nifty index

Abstract: This paper studies the volatility implications of the introduction of derivatives on stock market volatility in India using the S&P CNX Nifty Index as a benchmark. To account for non-constant error variance in the return series, a GARCH model is fitted by incorporating futures and options dummy variables in the conditional variance equation. We find clustering and persistence of volatility before and after derivatives, while listing seems to have no stabilisation or destabilisation effects on market volatility. The postderivatives period shows that the sensitivity of the index returns to market returns and any day-of-the-week effects have disappeared. That is, the nature of the volatility patterns has altered during the post-derivatives period.

Corporate social responsibility investment, third-party assurance and firm performance in India: The moderating effect of financial leverage

Abstract: Corporate social responsibility (CSR) has evolved since the nineteenth century and is becoming mandatory for firms. However, the association between CSR and financial performance remains fluid. The purpose of this paper is to examine the mediating effect of third-party assurance (TPA) and the moderating effect of financial leverage in CSR – financial performance relationship.,Panel and hierarchical regression models are used to analyse data covering 29 companies in the Indian stock market for the period, from 2010 to 2017.,The study shows that CSR has a positive association with financial performance (ROA (return on assets) and ROE (return on equity)) of listed firms in India. The second finding shows that TPA has a negative association with financial performance (ROA and ROE) and negatively mediate the association between CSR and financial performance (ROA and ROE). Further, the findings also show that financial leverage has a negative association with ROA but no association with ROE, and is unable to moderate the association between CSR and financial performance. Lastly, financial leverage has no association with TPA and unable to moderate the association between CSR and TPA.,The scope of the study is limited to large firms submitting sustainability reports based on the Global Reporting Initiative (GRI) guidelines, and this criterion is likely to limit the generalisation of the findings.,Capital market investors look for new markets to invest, and CSR results show a positive return for equity investors, which may encourage capital market investments in a mandatory CSR environment. The mediating effect of TPA has the potential to force managers to undertake CSR activities, which leads to a user-friendly environment and improved social sustainability.,Previous studies show a mix association between CSR and financial performance. Nevertheless, some of the possible reasons for the mix association have not received scholarly attention. Hence, the role of the mediating effect of TPA and the moderating effect of financial leverage in CSR-financial performance relationship.

A Study of Efficiency of the Indian Stock Market

Abstract: Market efficiency is examined in three forms: weak form, semi-strong form and strong form and each one deals with a different source of information. 1. Weak form efficient market - the prices of securities fully reflect all historical information and no excess returns can be earned by utilising historical share prices. 2. Semi-strong form - securities prices adjust instantaneously to available new information such as earnings announcements, bonus issue, merger and acquisition, etc. so that no excess returns can be earned by trading on that information. 3. Strong form efficient market - securities prices fully reflect all information, including inside or private information.

The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields (Chinese Translation)

Abstract: What makes organizations so similar? We contend that the engine of rationalization and bureaucratization has moved from the competitive marketplace to the state and the professions. Once a set of organizations emerges as a field, a paradox arises: rational actors make their organizations increasingly similar as they try to change them. We describe three isomorphic processes-coercive, mimetic, and normative—leading to this outcome. We then specify hypotheses about the impact of resource centralization and dependency, goal ambiguity and technical uncertainty, and professionalization and structuration on isomorphic change. Finally, we suggest implications for theories of organizations and social change.

A natural resource-based view of the firm

Abstract: Historically, management theory has ignored the constraints imposed by the biophysical (natural) environment. Building upon resource-based theory, this article attempts to fill this void by proposing a natural-resource-based view of the firm—a theory of competitive advantage based upon the firm's relationship to the natural environment. It is composed of three interconnected strategies: pollution prevention, product stewardship, and sustainable development. Propositions are advanced for each of these strategies regarding key resource requirements and their contributions to sustained competitive advantage.

TO: Planning Commission

Abstract: If the local government determines amendments to its comprehensive plan are necessary to reflect changes in state requirements, the local government shall prepare and transmit within 1 year such plan amendment or amendments for state review. Local governments are also encouraged to comprehensively evaluate and, as necessary, update comprehensive plans to reflect changes in local conditions. If a local government fails to comply it may not amend its comprehensive plan until such time as it complies.