Showing papers in "Iimb Management Review in 2016"
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 authors developed an Indian scale for measuring impulsive buying tendency and validated it by examining its association with other relevant variables, such as conscientiousness and extraversion.
Abstract: With the opening up of the economy and the proliferation of mall culture, the economic relevance of impulsive buying behaviour has assumed significance. Impulsive buying behaviour is better understood by examining the impulsive buying tendency that shapes such behaviour, and since consumer behaviour differs across cultures, by incorporating an indigenous perspective in understanding and measuring the tendency. Studies were conducted to develop an Indian scale for measuring impulsive buying tendency and to validate it by examining its association with other relevant variables. A two factor, 8-item scale was developed; a significant positive relationship was seen between impulsive buying tendency and impulsive buying behaviour, and the relationship between impulsive buying tendency and self-control was found to be inversely significant. Results also showed significant relationship between impulsive buying tendency and the two personality constructs of Conscientiousness and Extraversion.
53 citations
TL;DR: In this article, the impact of brand equity on the operational performance of businesses in the Indian fast moving consumer goods (FMCG) industry is investigated, and the results indicate that there is a correlation between brand equity and operational performance.
Abstract: Measurement of brand equity has posed a big challenge to the companies in the Indian fast moving consumer goods (FMCG) industry. This paper investigates the impact of brand equity on the operational performance of businesses in the Indian FMCG industry. The research study adopts descriptive and exploratory approaches. The results indicate that there is correlation between brand equity and operational performance of business. The practical implications of the findings are that brand equity has to be effectively managed for improved operational performance of business.
42 citations
TL;DR: In this paper, the role of organisational citizenship behaviours (OCBs) in two types of open innovation (inbound and outbound) was examined and it was shown that OCBs positively predict both inbound and in-bound open innovation.
Abstract: We examine the role of organisational citizenship behaviours (OCBs) in two types of open innovation—inbound and outbound. Data were collected using the questionnaire survey technique from middle and top managers working in high-tech industries in Malaysia. Results show that OCBs positively predict both inbound and outbound open innovation. A closer look reveals that OCBs relate positively to out-bound open innovation in aggregate and in isolation. However, OCBs relate to in-bound open innovation in aggregate only. The implications of these results are discussed and limitations of the study are highlighted.
36 citations
TL;DR: A study and analysis of quality parameters of recommendation systems for LBSN with big data and a few quality parameters like parallel processing and multimodal interface have been selected.
Abstract: Recommender systems play an important role in our day-to-day life. A recommender system automatically suggests an item to a user that he/she might be interested in. Small-scale datasets are used to provide recommendations based on location, but in real time, the volume of data is large. We have selected Foursquare dataset to study the need for big data in recommendation systems for location-based social network (LBSN). A few quality parameters like parallel processing and multimodal interface have been selected to study the need for big data in recommender systems. This paper provides a study and analysis of quality parameters of recommendation systems for LBSN with big data.
28 citations
TL;DR: In this paper, the authors highlight the critical need for scaling up concerted efforts to enhance skill development in India, in the context of the country's transition to a knowledge based economy, through the creation of a professional skilled workforce.
Abstract: This article highlights the critical need for scaling up concerted efforts to enhance skill development in India, in the context of the country's transition to a knowledge based economy, through the creation of a professional skilled workforce Governmental efforts, especially in the recent past, in the arena of skill development through various schemes and programmes, management structures and processes, and the challenges encountered within these initiatives are discussed Further, identifying pathways for countering these challenges and effective implementation of the programmes are examined with a detailed interview with S Ramadorai, Chairman, National Skill Development Agency, Government of India & National Skill Development Corporation; former CEO, MD and Vice Chairman, Tata Consultancy Services
27 citations
TL;DR: In this paper, the authors developed a model to explain and forecast gold prices in India, using a vector error correction model, and identified investment decision and inflation hedge as prime movers of the data.
Abstract: Gold prices in the Indian market may be influenced by a multitude of factors such as the value of gold in investment decisions, as an inflation hedge, and in consumption motives. We develop a model to explain and forecast gold prices in India, using a vector error correction model. We identify investment decision and inflation hedge as prime movers of the data. We also present out-of-sample forecasts of our model and the related properties.
22 citations
TL;DR: The authors conducted a systematic review of response rate to surveys conducted in India and found that the average response rate for an organisational level survey is significantly lower while for individual level respondent groups it is significantly higher than those reported in the Western context.
Abstract: Despite a growth in the number of India-focussed articles appearing in leading business journals, there has not been a systematic review of response rate to surveys conducted in India. India differs significantly from Western nations not only in its cultural norms but also in its practical difficulties of doing empirical research. We analysed more than 2000 studies published in 26 refereed academic journals. We find that the average response rate for an organisational level survey is significantly lower while for individual level respondent groups it is significantly higher than those reported in the Western context. Results, implications and recommendations are discussed.
21 citations
TL;DR: In this article, the authors investigated the interactions of foreign institutional investments with market returns and market volatility in India using both static and dynamic models based on daily data and found that foreign investors are positive feedback traders while investing in the Indian market, and negative feedback traders during their withdrawal using the impulse response functions based on vector autoregression.
Abstract: This paper investigates interactions of foreign institutional investments with market returns and market volatility in India using both static and dynamic models based on daily data The findings of both models show foreign investors as positive feedback traders while investing in the Indian market, and as negative feedback traders during their withdrawal Using the impulse response functions based on vector autoregression, we find strong evidence that foreign institutional investments destabilise the market, particularly with selling activities, as they significantly increase the volatility
20 citations
TL;DR: The authors explored the safety net aspect of the labour market incentive for vocational education and training (VET) in the Indian context using two rounds of National Sample Survey data and found that there is a significant positive return of VET to the wages, and a significant number of individuals participate in salaried work.
Abstract: This paper explores the safety net aspect of the labour market incentive for vocational education and training (VET) in the Indian context. Using two rounds of National Sample Survey data this paper explores the wage, unemployment, and status of employment of the individuals who participate in the labour market after completing VET. It is observed that there is a significant positive return of VET to the wages, and a significant number of individuals participate in salaried work. However, unemployment from VET is quite high, particularly for the individuals who have done VET courses which correspond to lower levels of general education. Institutional factors which may impact this labour market outcome are also explored for the Indian context.
16 citations
TL;DR: This article surveys the changing approaches to the role of business in society and reflects on some of the practices in a conversation with NR Narayana Murthy, Founder, Infosys.
Abstract: With corporations playing a dominant role in society today, the centrality of the role of business to society is being researched from multiple perspectives ranging from moral, legal, economic, strategic, social, and environmental. Several approaches to and theories on the subject have emerged in the literature over the years, such as corporate social responsibility, stakeholder management, shared value, corporate citizenship, and corporate environmentalism, and have found acceptance in practice as well. This paper surveys the changing approaches to the role of business in society and reflects on some of the practices in a conversation with NR Narayana Murthy, Founder, Infosys.
TL;DR: The speakers in the panel highlight and provide examples of some of the challenges of changing processes and people to adapt to a new technology, which is invariably an import from a Western nation.
Abstract: The promise of information and communications technology (ICT) to deliver change is attractive and draws practitioners to experiment and build. Academics and researchers too believe in such benefits but point to certain challenges: changing processes and people to adapt to a new technology, which is invariably an import from a Western nation; the conflicts arising from the changes introduced by ICT, with some groups benefitting over others; and ensuring that the social change that is desired is indeed achieved, while disrupting existing arrangements. The speakers in the panel highlight and provide examples of some of these challenges.
TL;DR: In this paper, the influence of peer group environment on an individual's promotional choice in the context of premium promotions or freebies was studied and it was shown that higher interaction and educational orientation of group members influence the customer's promotional preference.
Abstract: The role of peer-group environment as an influencing factor in purchase decisions is well established. This paper broadens the above premise and studies the influence of peer-group environment on an individual's promotional choice in the context of premium promotions or freebies. Two sets of college students with distinctive peer-group settings in terms of their academic pursuit and residential details have been considered for the study. Discriminant analysis shows that higher interaction and educational orientation of group members influence the customer's promotional preference. Students pursuing professionally oriented courses had a distinctively higher preference for premium-promotions that were hedonic.
TL;DR: The authors showed that the cross-sectional volatility measure suggested by Garcia et al. is highly correlated with alternative measures of idiosyncratic volatility constructed as variance of errors from the capital asset pricing model and the Fama French model.
Abstract: Research does not indicate a consensus on the relationship between idiosyncratic volatility and asset returns. Moreover, the role of cross sectional higher order moments in predicting market returns is relatively unexplored. We show that the cross sectional volatility measure suggested by Garcia et al. is highly correlated with alternative measures of idiosyncratic volatility constructed as variance of errors from the capital asset pricing model and the Fama French model. We find that cross sectional moments help in predicting aggregate market returns in some sample countries and also provide information for portfolio formation, which is more consistent for portfolios sorted on sensitivity to cross sectional skewness.
TL;DR: In this paper, the authors empirically investigated the granular level risk of education loan using a cross section of data from 5000 borrowers obtained from four major public sector banks in India and found that education loan defaults are mainly influenced by security, borrower margin, and repayment periods.
Abstract: This paper empirically investigates the granular level risk of education loan using a cross section of data from 5000 borrowers obtained from four major public sector banks in India. The findings suggest that education loan defaults are mainly influenced by security, borrower margin, and repayment periods. The presence of guarantor or co-borrower and collateral significantly reduce default loss rates. The socioeconomic characteristics of borrowers and their regional locations also act as important factors associated with education loan defaults. The results suggest that by segmenting borrowers by probability of default and loss given default in a multidimensional scale, banks can adopt better risk mitigation and pricing strategies to resolve borrower problems.
TL;DR: In this article, the authors present a model of a bank with endogenous risk choices, where delegated monitoring by an active market in subordinate debt helps in containing the bank's risk shifting in the presence of deposit insurance.
Abstract: We present a model of a bank with endogenous risk choices, where delegated monitoring by an active market in subordinate debt helps in containing the bank's risk shifting in the presence of deposit insurance. In comparison to static ex ante contracting, an active market enables continuous monitoring by subordinate debt to penalise the bank's risk shifting. The model is instrumental in deriving optimal level of subordinate debt required to achieve equilibrium where banks choose risk levels consistent with the first best as envisaged by a social planner. The optimal quantity of subordinate debt further eliminates any risk shifting associated even with risk insensitive premiums.
TL;DR: In this article, consumers' exploratory tendencies (CET) have been assessed as potential motivators of proneness to eight types of deals, during the purchase of shampoo and refrigerator, two product categories.
Abstract: An understanding of the motivators of consumer deal redemption behaviour is expected to enable marketers to use deals more effectively. In this study, consumers' exploratory tendencies (CET) have been assessed as potential motivators of proneness to eight types of deals, during the purchase of shampoo and refrigerator—two product categories. Consumers showed varying proneness to different types of deals depending on the type of exploratory tendency that they needed to satisfy and the type of good that was on sale. These findings can enable marketers to choose the most appropriate type of deal to achieve their sales target.
TL;DR: In this paper, the superiority of the Yang and Zhang (YZ) estimator over the demeaned squared returns in detecting sudden breaks based on Inclan and Tiao (IT-ICSS) algorithm using Monte Carlo simulation experiments was investigated.
Abstract: This paper investigates the superiority of the Yang and Zhang (YZ) estimator over the demeaned squared returns in detecting sudden breaks based on Inclan and Tiao (IT-ICSS) algorithm using Monte Carlo simulation experiments. Our findings indicate that the IT-ICSS algorithm exhibits desirable size and power properties when applied with the YZ estimator in comparison to its use with the demeaned squared returns. Empirically, we validate the superiority of the YZ estimator by relating the detected breaks with the major macroeconomic events using various US dollar exchange rates. We find that the demeaned squared returns detect many spurious breaks.
TL;DR: In this paper, the authors show that on a national level and over a short time, the price-volume data for onions provide a bona fide example of a single-commodity demand curve.
Abstract: Managerial economics textbooks rarely include empirical examples of demand estimation of any commodity from real data, perhaps because in reality one must consider coupled demand systems. We suggest that on a national level and over a short time, the price–volume data for onions provide a bona fide example of a single-commodity demand curve. Since the onion has no real substitutes and taste for onions does not fluctuate, the demand curve does not shift over time. Empirical analysis of aggregated national level data yields a demand curve with two regimes: constant consumption at low prices, and constant budget at high prices.
TL;DR: In this paper, the authors investigate the brand migration of Bosch in India and develop seven propositions and conceptualise a framework for strategic communication of change in corporate identity (CI) based on an in-depth case study.
Abstract: This paper addresses a gap in the literature on communication of change in corporate identity (CI) by investigating the brand migration of Bosch in India. Based on an in-depth case study of Bosch in India, this paper develops seven propositions and conceptualises a framework for strategic communication of change in CI. The key propositions centre around strategic orientation, a constituency focussed approach, dual branding as an intermediate stage, integrating product messages with corporate messages, having a long time horizon to prevent loss of continuity, measuring effectiveness with a hierarchy of effects, and harnessing reciprocity of advertising and public relations.