Indian Institute of Management Tiruchirappalli

About: Indian Institute of Management Tiruchirappalli is a education organization based out in Tiruchchirappalli, India. It is known for research contribution in the topics: Emerging markets & Information technology. The organization has 47 authors who have published 105 publications receiving 1694 citations. The organization is also known as: IIM Trichy.

Systemic Concentration in Sponsored Search Markets: The Role of Time Window in Click-Through-Rate Computation

Abstract: Keyword-based search engine advertising markets on the Internet, referred to as Sponsored Search Markets (SSMs), have reduced entry barriers to advertising for niche players. Known empirical research, though scant and emerging, suggests that while these markets provided niche firms with greater access, they do exhibit high levels of concentration—a phenomenon that warrants further study. This research, using agent-based simulation of SSM, investigates the role of “market rules” and “advertiser practices” in generating emergent click share heterogeneity among advertisers in an industry. SSMs often rank ads based on the click-through rate (CTR) that gives rise to reinforcing dynamics at an individual keyword level. In the presence of spillovers arising from advertisers’ practice of managing keyword bids with a cost cap operating on the keyword portfolio, these reinforcing dynamics can endogenously generate industry-level concentration. Analysis of counterfactual markets with different window sizes used to compute CTR reveals that industry-level concentration bears an inverted-“U” relationship with window size.

A literature review on the anomalies observed in the newsvendor ordering behaviour

Abstract: In a classical newsvendor setting, the retailer places an optimal order quantity by finding a trade-off between overstocking and understocking of products. However, it has been observed that even the experienced managers do not always order an optimal quantity. In the early 2000s, researchers in the area of behavioural economics have taken roots to analyse the behavioural dynamics influencing the inventory ordering decisions in newsvendor settings. Later, a large number of research studies has focused its attention on understanding the cognitive biases and heuristics involved in the process of inventory decisions. The influence of individual heterogeneity such as gender differences, cultural differences, and hierarchical differences on the ordering pattern of individuals are also analysed. This article provides a detailed summary of the research progress in the behavioural newsvendor problem. It also provides a framework of the existing literature and identifies the research gaps to point future research possibilities.

Impact of excess cash on earnings management and firm value: Evidence from China

Abstract: This study examines how excess cash drives earnings management and firm value in China. Using a fixed effect panel regression on a sample of 12,629 observations covering 300 firms listed in the Shanghai Stock Exchange, we find that excess cash has a positive impact on firm value confirming pecking order theory. Our results show that earnings management has a negative impact on firm value in China, which supports the efficient earnings management view. We find that managers in Chinese firms are less likely to use excess cash for manipulating earnings. We provide empirical evidence that firms with excess cash seem to use it more for precautionary purpose than earnings management and the excess corporate liquidity of Chinese firms is used for value-enhancing activities. The test of robustness using the Instrumental Variable (IV) model confirms the results of the study. Our study merges two areas of corporate finance by incorporating agency problems concerning earnings management and cash holdings