Indian Institute of Management Bangalore

About: Indian Institute of Management Bangalore is a education organization based out in Bengaluru, Karnataka, India. It is known for research contribution in the topics: Emerging markets & Context (language use). The organization has 491 authors who have published 1254 publications receiving 23853 citations. The organization is also known as: IIMB.

Private Placements, Regulatory Restrictions and Firm Value: Theory and Evidence from the Indian Market

Abstract: We present an extension of the Myers and Majluf (1984) model to examine private placements issued to owner-managers. Our main conclusion is that allowing private placements to insiders can mitigate, if not eliminate, the underinvestment problem. Our model predicts that announcement period returns for private placements should be: (1) positive; (2) dependent on regulatory constraints that determine the issue price; (3) positively related to volatility; (4) negatively related to leverage; (5) negatively related to owner-managers' shareholdings (6) related to proxies of manipulation; and (7) negatively related to illiquidity. We empirically test the model's predictions on a sample of 164 preferential allotments (private placements) issued in the Indian capital markets during 2001-2009 and report empirical evidence largely consistent with the model. In addition to the predictions of our model, we also find that announcement period returns of: (8) firms affiliated to business groups are not lower than those of stand-alone firms and (9) private placements made to (active) private equity investors are not higher than those made to (passive) banks or financial institutions.

The economics of coping strategies and financing adaptation action in India's semi‐arid ecosystems

Abstract: Purpose – The purpose of this paper is to provide a bottom‐up perspective about the operational and policy challenges of undertaking adaptive action in water‐scarce environments of India.Design/methodology/approach – A cross section of 112 small, medium and big farmers drawn from three semi‐arid villages of rural Bangalore District were surveyed to assess their dependence on natural habitats and elicit information on costs and benefits of undertaking adaptation activities. Also explored were the possible impacts of institutional financing systems and publicly funded programs on adaptation action in the study area.Findings – Small farmers in the study zone were conservation oriented and relied on a variety of terrestrial and aquatic habitats for cultivation operations. On the other hand, commercial and semi commercial farmers who practiced resource intensive cultivation systems were not conservation oriented and were reluctant to go beyond “modest” adaptation activities. Similarly loans provided by local f...

Transnational, Ethnic and Returnee Entrepreneurship: Perspectives on SME Internationalization

Abstract: The concept of transnational entrepreneurship (TE) has attracted much attention in scholarly literature in recent times. Transnational entrepreneurs have a bifocal orientation and maintain business and personal relationships in two different geographical spaces spanning across national borders (i.e. in their home and host countries) while running their enterprises. Returnee entrepreneurship (RE) deals with entrepreneurs who establish enterprises in their home countries on returning from host countries after having gained educational or business experience. While TE is a first step towards international entrepreneurship (IE), ethnic entrepreneurship (EE) is another facet that links TE and returnee entrepreneurship (RE) through the facilitating role played by the diaspora community comprising immigrants from the home country. This chapter provides an overview of the research on TE, RE and ethnic entrepreneurship and explains how they are facilitated by the diaspora of the new generation of opportunity and capability-based immigrants. It further provides an overview of the different theories about SME internationalization with special reference to transnational and returnee entrepreneurs. The concluding part of this chapter explains the role played by different factors such as market/political conditions, technological developments, production networks, social networks and human capital in facilitating or posing challenges to the internationalization process of SMEs, especially of TEs and REs.

Status of Ethics, Corporate Governance, CSR and Environment Education in Business Schools in India: An Exploratory Study

Abstract: The last two decades have witnessed unprecedented excesses by businesses across the world. The largest corporate frauds have raised questions on the limits of responsibility of business. The recent financial crisis has brought into question the managerial greed and the manner in which incentive structures have perpetuated such dysfunctional behaviors in organizations. With rapid growth and internationalization of businesses, there is an urgent need to examine the vocabulary of business organizations to include deliberately sustainability, ethics, governance and corporate responsibility. There have been several calls from thought leaders in business and academia to incorporate a deeper understanding of the principles pertaining to responsibility of business in the business school curriculum. The research is an attempt at understanding the state of the field of teaching in corporate governance (CG), ethics, corporate social responsibility (CSR) and environment and sustainability. While it is recognized that teaching of this subject is essential, not much is known about the content delivered in the courses, the pedagogy in the classroom, the teaching material used and the adaptation done for different kinds of nature of participants on the courses. This study was conducted using content analysis of websites and survey using a questionnaire to understand the status of education in this field. Some of the significant findings were that a large number of business schools in India offered courses in the field of ethics, CSR, CG and environment. The widespread prevalence of business ethics courses offered in business schools and a dearth of CG courses are also of significance.