Indian Institute of Management Ahmedabad

About: Indian Institute of Management Ahmedabad is a education organization based out in Ahmedabad, India. It is known for research contribution in the topics: Context (language use) & Emerging markets. The organization has 1828 authors who have published 4011 publications receiving 59269 citations. The organization is also known as: IIMA & IIM Ahmedabad.

A metric for customer lifetime value of credit card customers

Abstract: Estimating customer lifetime value (CLV) is becoming increasingly important in order for firms to identify and invest on prospective profitable customers. A credit card issuer firm has to take several different decisions regarding a customer throughout her stay with the firm. CLV estimation can help a firm in making some of these crucial decisions. In this paper, we have presented a conceptual model for revenue from a credit card customer and have further presented a metric for CLV. This metric has been designed specifically for credit card customers. We have simulated different states of a customer to demonstrate how the proposed metric works.

Frequentist validity of highest posterior density regions in the multiparameter case

Abstract: In a multiparameter set-up, this paper characterizes priors which ensure frequentist validity, up to o(n-1), of confidence regions based on the highest posterior density. The role of Jeffreys' prior in this regard has also been investigated.

How Does Regulation Affect the Relation Between Family Control and Reported Cash Flows? Comparative Evidence from India and the United States: Cash Flow Reporting: Family Control and Regulation

Abstract: Manuscript Type Empirical. Research Question/Issue We conduct a two-country study to understand (i) how family and non-family firms engage in classification shifting to manage reported operating cash flows in each country; (ii) how this behavior varies between the two countries; and (iii) how corporate governance regulation introduced independently in each country moderates the observed behavior. Research Findings/Insights We find that family ownership has different effects on quality of cash flow reporting in the two countries. Furthermore, country-level regulation moderates these effects differently. In particular, (i) firms in both countries engage in manipulating operating cash flows, but the evidence is stronger in the United States; (ii) family firms in India engage in more shifting than non-family firms, but this is not observed in the United States; and (iii) family (non-family) firms in India increase (reduce) shifting, whereas only non-family firms in the United States increase shifting after regulation. Since non-family firms in India raise more external capital than family firms after regulation, we infer that family firms in India reacted to this competition for capital and resorted to shifting. Theoretical/Academic Implications Most studies assume that the incentives for family firm behavior are the same in different market settings. However, factors such as efficiency of public capital markets, enforcement of corporate laws and regulations, and other institutional practices can cause differences in family firm behavior across different market settings. We investigate the behavior of family and non-family firms in each of these markets and study how a feature of the national governance system, regulatory design, moderates this behavior. Practitioner/Policy Implications Our findings should be useful to global investors and regulators in both emerging and developed markets. The results indicate how similar regulation in the two different settings can trigger differences in the behavior of firms.