Pub Date : 2023-06-25DOI: 10.1177/22785337231156244
Saif Siddiqui, Rajbeer Kaur
This study examines the static and time-varying cointegration between Mexico, Indonesia, Nigeria, and Turkey (MINT), and developed stock markets in USA and Japan by applying conventional cointegration methodology and rolling multivariate trace statistics over the period of 10 years. Overall, the findings of bivariate cointegration test suggested that MINT stock markets do not have significant long running relationship with Japan stock market. Hence, the scope of diversification exists accordingly. However, rolling trace statistics revealed the time-varying nature of integration between the markets considered in the study. The varying degree of cointegration is more likely to be caused by major economic, financial, and political events. Hence, the presence of equilibrium relationship among the markets in the sub-periods may limit the potential portfolio diversification benefits. Thus, lack of consistency in the findings of the static and dynamic cointegration analysis highlights the limitation of the static assessment. On the short-term linkage, the examination of dynamic conditional correlation (DCC) for each MINT-developed market pair suggested that Indonesia exhibits least correlation with USA and Japan and hence, offering highest portfolio avenues.
{"title":"Assessing Market Integration Between MINT and Developed Economies: Evidence from Dynamic Cointegration","authors":"Saif Siddiqui, Rajbeer Kaur","doi":"10.1177/22785337231156244","DOIUrl":"https://doi.org/10.1177/22785337231156244","url":null,"abstract":"This study examines the static and time-varying cointegration between Mexico, Indonesia, Nigeria, and Turkey (MINT), and developed stock markets in USA and Japan by applying conventional cointegration methodology and rolling multivariate trace statistics over the period of 10 years. Overall, the findings of bivariate cointegration test suggested that MINT stock markets do not have significant long running relationship with Japan stock market. Hence, the scope of diversification exists accordingly. However, rolling trace statistics revealed the time-varying nature of integration between the markets considered in the study. The varying degree of cointegration is more likely to be caused by major economic, financial, and political events. Hence, the presence of equilibrium relationship among the markets in the sub-periods may limit the potential portfolio diversification benefits. Thus, lack of consistency in the findings of the static and dynamic cointegration analysis highlights the limitation of the static assessment. On the short-term linkage, the examination of dynamic conditional correlation (DCC) for each MINT-developed market pair suggested that Indonesia exhibits least correlation with USA and Japan and hence, offering highest portfolio avenues.","PeriodicalId":37330,"journal":{"name":"Business Perspectives and Research","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-06-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41869860","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-23DOI: 10.1177/22785337231162755
Alisha Soni, Kanupriya Misra Bakhru
The ability to recognize valuable business prospects is the primary meta-skill for entrepreneurship and can be deliberated through entrepreneurial alertness. In the opportunity identification perspective of entrepreneurship, inadequate attention is provided for the development of entrepreneurial alertness and its effectiveness among students pursuing professional or postgraduate courses in a specific discipline. Therefore, the present study determines the intervening role of entrepreneurial alertness in the causal association of students’ prior knowledge and experience on their entrepreneurial intention. The data of 408 final level students studying Chartered accountancy course from the Institute of Chartered Accountants of India (ICAI) were gathered through cluster sampling. The statistical method of structural equation modeling (SEM) is used to examine the postulated associations. The results indicate that the students’ knowledge and experience appropriately stimulate the alertness for potential business prospects, which further motivates the intention for entrepreneurial actions. The partial intervention of entrepreneurial alertness is also observed ensuring that the use of knowledge and experience in identifying profitable business opportunity increases the chances of selecting a successful entrepreneurial career. The findings of the study contribute to the promotion of early-stage entrepreneurship among students of a specific discipline.
{"title":"Mediation Effect of Entrepreneurial Alertness Between Prior Knowledge and Experience on Entrepreneurial Intention Among Accountancy Students","authors":"Alisha Soni, Kanupriya Misra Bakhru","doi":"10.1177/22785337231162755","DOIUrl":"https://doi.org/10.1177/22785337231162755","url":null,"abstract":"The ability to recognize valuable business prospects is the primary meta-skill for entrepreneurship and can be deliberated through entrepreneurial alertness. In the opportunity identification perspective of entrepreneurship, inadequate attention is provided for the development of entrepreneurial alertness and its effectiveness among students pursuing professional or postgraduate courses in a specific discipline. Therefore, the present study determines the intervening role of entrepreneurial alertness in the causal association of students’ prior knowledge and experience on their entrepreneurial intention. The data of 408 final level students studying Chartered accountancy course from the Institute of Chartered Accountants of India (ICAI) were gathered through cluster sampling. The statistical method of structural equation modeling (SEM) is used to examine the postulated associations. The results indicate that the students’ knowledge and experience appropriately stimulate the alertness for potential business prospects, which further motivates the intention for entrepreneurial actions. The partial intervention of entrepreneurial alertness is also observed ensuring that the use of knowledge and experience in identifying profitable business opportunity increases the chances of selecting a successful entrepreneurial career. The findings of the study contribute to the promotion of early-stage entrepreneurship among students of a specific discipline.","PeriodicalId":37330,"journal":{"name":"Business Perspectives and Research","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47349796","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-21DOI: 10.1177/22785337231164205
Deepak Kumar, M. Sekher
Agriculture in India is undergoing a shift. It is due to a grim situation of increasing food production and rural economy linked with agriculture. On one side, agriculture production is led by 55% of cereal crops primarily based on minimum support prices (MSPs) by the Government of India. On the other side, horticulture accounts for only 16% of agriculture without many incentives. The cultivation cost is rising day by day. Unlike employee compensation, the market does not support farmers and their products. Despite rising production, sustainable agricultural growth is unlikely because of issues including groundwater depletion, climate change, and poor income. The MSP is driving the change in farmer’s lives in the changing nature of rural economy. However, the economic conditions of farmers have not changed much as the surveyed households (HHs) revealed based on MSP and its significance on economic condition of farmers. About 60% of farmers claimed that their income remained the same, 22% said that their condition got better, while about 14.43% of HHs claimed that their economic situation got worst. The study highlights that sustainable agriculture and changing nature of the rural economy will transform farmers’ conditions if they diversify the production of crops from cereals to non-cereal crops such as protein-based pulses or less water intensive crops such as millets.
{"title":"Minimum Support Price and the Changing Nature of Rural Economy and Its Implications on Agriculture in Haryana","authors":"Deepak Kumar, M. Sekher","doi":"10.1177/22785337231164205","DOIUrl":"https://doi.org/10.1177/22785337231164205","url":null,"abstract":"Agriculture in India is undergoing a shift. It is due to a grim situation of increasing food production and rural economy linked with agriculture. On one side, agriculture production is led by 55% of cereal crops primarily based on minimum support prices (MSPs) by the Government of India. On the other side, horticulture accounts for only 16% of agriculture without many incentives. The cultivation cost is rising day by day. Unlike employee compensation, the market does not support farmers and their products. Despite rising production, sustainable agricultural growth is unlikely because of issues including groundwater depletion, climate change, and poor income. The MSP is driving the change in farmer’s lives in the changing nature of rural economy. However, the economic conditions of farmers have not changed much as the surveyed households (HHs) revealed based on MSP and its significance on economic condition of farmers. About 60% of farmers claimed that their income remained the same, 22% said that their condition got better, while about 14.43% of HHs claimed that their economic situation got worst. The study highlights that sustainable agriculture and changing nature of the rural economy will transform farmers’ conditions if they diversify the production of crops from cereals to non-cereal crops such as protein-based pulses or less water intensive crops such as millets.","PeriodicalId":37330,"journal":{"name":"Business Perspectives and Research","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-06-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46870792","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-19DOI: 10.1177/22785337231163953
Kavita Kamboj, N. Kishor
Despite a plentiful supply of organic food in emerging economies, consumers are slow to adopt sustainable organic food behaviors. India is one of the top five nations in the world in terms of the total amount of agricultural land that is certified as organic, but the domestic organic consumption in the country itself is really sparse. Using the framework of the theory of reasoned action, this investigation explores how customers’ perceived values (health and hedonic values) influence their attitude toward purchasing organic food. Also, it elaborates on the moderating effect of media exposure to food safety issues to know its strength in the attitude–intention relationship. This research utilized PLS-SEM to analyze the structural relationships among the constructs, with 202 responses from consumers in India. The study found the strongest influence of hedonic value over health value and subjective norms on the green purchase attitude of consumers. To the best of our knowledge, this is the first study that investigated the moderating effect of media exposure on food safety issues on consumers’ attitude–intention relationship in a developing nation context. The study highlighted that people who have regularly been exposed to food safety related issues around them are more willing to buy organic food. Thus, it contributes to a more robust attitude–intention relationship among customers toward the purchase of organic food.
{"title":"Assessing the Effects of Customer-perceived Values Toward Organic Food: The Moderating Role of Media Exposure to Food Safety Issues","authors":"Kavita Kamboj, N. Kishor","doi":"10.1177/22785337231163953","DOIUrl":"https://doi.org/10.1177/22785337231163953","url":null,"abstract":"Despite a plentiful supply of organic food in emerging economies, consumers are slow to adopt sustainable organic food behaviors. India is one of the top five nations in the world in terms of the total amount of agricultural land that is certified as organic, but the domestic organic consumption in the country itself is really sparse. Using the framework of the theory of reasoned action, this investigation explores how customers’ perceived values (health and hedonic values) influence their attitude toward purchasing organic food. Also, it elaborates on the moderating effect of media exposure to food safety issues to know its strength in the attitude–intention relationship. This research utilized PLS-SEM to analyze the structural relationships among the constructs, with 202 responses from consumers in India. The study found the strongest influence of hedonic value over health value and subjective norms on the green purchase attitude of consumers. To the best of our knowledge, this is the first study that investigated the moderating effect of media exposure on food safety issues on consumers’ attitude–intention relationship in a developing nation context. The study highlighted that people who have regularly been exposed to food safety related issues around them are more willing to buy organic food. Thus, it contributes to a more robust attitude–intention relationship among customers toward the purchase of organic food.","PeriodicalId":37330,"journal":{"name":"Business Perspectives and Research","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-06-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42385345","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-15DOI: 10.1177/22785337231165870
Yamini Yadav, P. K. Naik
Studying sentiment is crucial for investors and portfolio managers to determine whether sentiment can be used as information to make profits. This study examines the relationship between irrational sentiment among investors and excess returns in the Indian stock market using monthly data from July 2001 to December 2019. The study constructs a composite sentiment index that includes condensed information from 10 variables. The empirical analysis reveals that the influence of irrational sentiment among investors on excess returns in the stock market is not uniform across quantiles. Specifically, our results indicate that the irrational sentiment index has information regarding contemporaneous (future) variation in excess returns in upper (all) quantiles. Results also suggest that the predictive ability of irrational sentiment is enhanced when market conditions are right. We also decompose the sentiment into positive and negative irrational sentiment and find an asymmetrical impact in upper quantiles but lost at lower quantiles.
{"title":"Investors’ Irrational Sentiment and Stock Market Returns: A Quantile Regression Approach Using Indian Data","authors":"Yamini Yadav, P. K. Naik","doi":"10.1177/22785337231165870","DOIUrl":"https://doi.org/10.1177/22785337231165870","url":null,"abstract":"Studying sentiment is crucial for investors and portfolio managers to determine whether sentiment can be used as information to make profits. This study examines the relationship between irrational sentiment among investors and excess returns in the Indian stock market using monthly data from July 2001 to December 2019. The study constructs a composite sentiment index that includes condensed information from 10 variables. The empirical analysis reveals that the influence of irrational sentiment among investors on excess returns in the stock market is not uniform across quantiles. Specifically, our results indicate that the irrational sentiment index has information regarding contemporaneous (future) variation in excess returns in upper (all) quantiles. Results also suggest that the predictive ability of irrational sentiment is enhanced when market conditions are right. We also decompose the sentiment into positive and negative irrational sentiment and find an asymmetrical impact in upper quantiles but lost at lower quantiles.","PeriodicalId":37330,"journal":{"name":"Business Perspectives and Research","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-06-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48427561","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-12DOI: 10.1177/22785337231156659
S. Manocha, Pritpal Singh Bhullar, P. K. Gupta
The current research aims to identify the factors that influence the investment behavior of the agrarian investor class, an untapped potential segment for the investment market, in India. The study observes the antecedents of investment behavior and intention. Thus, the present study analyses the responses of 400 agrarian rural respondents. Data from a well-structured questionnaire administered to the study’s target participants were analyzed using structural equation modeling. The results observed the utmost influence of financial self-efficacy in establishing the agrarian rural investors’ attitude and has least influence in determining personality traits and financial knowledge, which ultimately determine the investment intention of investors. Further, social influence has the least effect on how agrarian rural people think and act. The findings demonstrate that investment intention is the leading factor in cementing the investment behavior of agrarian rural investors. This article claims its distinctiveness by adding important insights to the literature of the investment behavior and intention for the Indian agrarian investor class.
{"title":"Exploring the Determinants of Investment Behavior: Evidence from Agrarian Investor Class of India","authors":"S. Manocha, Pritpal Singh Bhullar, P. K. Gupta","doi":"10.1177/22785337231156659","DOIUrl":"https://doi.org/10.1177/22785337231156659","url":null,"abstract":"The current research aims to identify the factors that influence the investment behavior of the agrarian investor class, an untapped potential segment for the investment market, in India. The study observes the antecedents of investment behavior and intention. Thus, the present study analyses the responses of 400 agrarian rural respondents. Data from a well-structured questionnaire administered to the study’s target participants were analyzed using structural equation modeling. The results observed the utmost influence of financial self-efficacy in establishing the agrarian rural investors’ attitude and has least influence in determining personality traits and financial knowledge, which ultimately determine the investment intention of investors. Further, social influence has the least effect on how agrarian rural people think and act. The findings demonstrate that investment intention is the leading factor in cementing the investment behavior of agrarian rural investors. This article claims its distinctiveness by adding important insights to the literature of the investment behavior and intention for the Indian agrarian investor class.","PeriodicalId":37330,"journal":{"name":"Business Perspectives and Research","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-06-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46589987","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-09DOI: 10.1177/22785337231172042
Kajal Panwar, M. Yadav, N. Puri
The COVID-19 pandemic had a tremendous impact on the energy sector because of demand factor. Volatility has emerged as a major concern in the energy industry and COVID-19 has cast a dark shadow over this characteristic. We predict the symmetrical and asymmetric volatility of energy market in India and USA during COVID-19 outbreak tenure. The energy market is proxied by crude oil and natural gas of these two countries. For an empirical estimation, standard generalized autoregressive conditional heteroscedasticity (s-GARCH) and exponential GARCH (e-GARCH) are employed based on daily observations spanning from March 25, 2020 to January 31, 2022. The result reveals that new information is captured and there is volatility persistence in both Indian and US energy markets. The conditional volatility decays over the time of these markets since it is backed by mean reversion and Indian energy market decays fast comparatively. Additionally, it depicts that there is no leverage effect in both Indian and US energy markets. This study furnishes an insight to the investors and portfolio managers with respect to risk prediction considering impact of good and bad news.
{"title":"Predicting the Symmetric and Asymmetric Volatility of Energy Market: Evidence from COVID Outbreak in India and USA","authors":"Kajal Panwar, M. Yadav, N. Puri","doi":"10.1177/22785337231172042","DOIUrl":"https://doi.org/10.1177/22785337231172042","url":null,"abstract":"The COVID-19 pandemic had a tremendous impact on the energy sector because of demand factor. Volatility has emerged as a major concern in the energy industry and COVID-19 has cast a dark shadow over this characteristic. We predict the symmetrical and asymmetric volatility of energy market in India and USA during COVID-19 outbreak tenure. The energy market is proxied by crude oil and natural gas of these two countries. For an empirical estimation, standard generalized autoregressive conditional heteroscedasticity (s-GARCH) and exponential GARCH (e-GARCH) are employed based on daily observations spanning from March 25, 2020 to January 31, 2022. The result reveals that new information is captured and there is volatility persistence in both Indian and US energy markets. The conditional volatility decays over the time of these markets since it is backed by mean reversion and Indian energy market decays fast comparatively. Additionally, it depicts that there is no leverage effect in both Indian and US energy markets. This study furnishes an insight to the investors and portfolio managers with respect to risk prediction considering impact of good and bad news.","PeriodicalId":37330,"journal":{"name":"Business Perspectives and Research","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-06-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41640263","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-29DOI: 10.1177/22785337231163946
Lifu Li, Kyeong-Hee Kang, O. Sohaib
This article establishes a research model to analyze how group support factors, including peers’ support and family support, impact college students’ motivation to establish online business. College entrepreneurs need to consult their family members before starting a new career because of the power distance. Meanwhile, based on the collectivist cultural background, college students understand the importance of cooperation with peers’ group. Furthermore, influenced by uncertainty avoidance thinking, college entrepreneurs tend to rely on group supports, such as family funds and peers’ experiences, to reduce the probability of failure. Hence, this research designs uncertainty avoidance thinking as a moderating factor to explore its impact on the correlation between group support factors and college students’ online business motivation. To test the research model, it utilizes Chinese college students as samples and distributes online questionnaires to them. Through analyzing 458 samples based on the partial least squares path modelling and variance-based structural equation modelling (PLS-SEM), the data analysis identifies that group support can positively affect college students’ online business motivation. The uncertainty avoidance factor also positively moderates the correlation between family support and college students’ online business motivation. To assist these students in establishing confidence in the online business, the Entrepreneurship Centre should pay much attention to the impact of peers’ support and family support.
{"title":"The Impact of Group Support on College Student’s Online Business Motivation: The Uncertainty Avoidance Thinking as a Moderating Factor","authors":"Lifu Li, Kyeong-Hee Kang, O. Sohaib","doi":"10.1177/22785337231163946","DOIUrl":"https://doi.org/10.1177/22785337231163946","url":null,"abstract":"This article establishes a research model to analyze how group support factors, including peers’ support and family support, impact college students’ motivation to establish online business. College entrepreneurs need to consult their family members before starting a new career because of the power distance. Meanwhile, based on the collectivist cultural background, college students understand the importance of cooperation with peers’ group. Furthermore, influenced by uncertainty avoidance thinking, college entrepreneurs tend to rely on group supports, such as family funds and peers’ experiences, to reduce the probability of failure. Hence, this research designs uncertainty avoidance thinking as a moderating factor to explore its impact on the correlation between group support factors and college students’ online business motivation. To test the research model, it utilizes Chinese college students as samples and distributes online questionnaires to them. Through analyzing 458 samples based on the partial least squares path modelling and variance-based structural equation modelling (PLS-SEM), the data analysis identifies that group support can positively affect college students’ online business motivation. The uncertainty avoidance factor also positively moderates the correlation between family support and college students’ online business motivation. To assist these students in establishing confidence in the online business, the Entrepreneurship Centre should pay much attention to the impact of peers’ support and family support.","PeriodicalId":37330,"journal":{"name":"Business Perspectives and Research","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-05-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44117701","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-24DOI: 10.1177/22785337231170491
Akshita Arora, T. Soni
The purpose of the article is threefold: (a) to analyze the causality between board independence and performance of the firm, (b) to examine the impact of board independence on financial performance, and (c) to ascertain whether the legislation of at least 50% of independent directors (IDs) influences the performance of the firm. We have employed a panel data framework for a sample of 442 Indian companies from 2013 to 2019. The estimation analysis has been conducted using panel Granger causality test, fixed effects method, and system generalized methods of moments. We further test whether the relationship differs across two categories of companies: one having IDs up to 50% and more; and second, the proportion is less than 50%. The results of our dynamic panel data analysis indicate that the ratio of IDs is found to have a positive association with the firm performance. Further, we found that firms with more than 50% IDs have a significantly higher firm performance than firms having less than 50% IDs. There should be an adequate ratio of independent members on board to avail benefits from their independent judgments without intervention in the ordinary course of business. It could be used as a preliminary study by the policymakers and regulatory authorities to set additional standards for the number and proportion of IDs.
{"title":"An Optimal Proportion for Independent Directors in the Boardroom: An Empirical Study","authors":"Akshita Arora, T. Soni","doi":"10.1177/22785337231170491","DOIUrl":"https://doi.org/10.1177/22785337231170491","url":null,"abstract":"The purpose of the article is threefold: (a) to analyze the causality between board independence and performance of the firm, (b) to examine the impact of board independence on financial performance, and (c) to ascertain whether the legislation of at least 50% of independent directors (IDs) influences the performance of the firm. We have employed a panel data framework for a sample of 442 Indian companies from 2013 to 2019. The estimation analysis has been conducted using panel Granger causality test, fixed effects method, and system generalized methods of moments. We further test whether the relationship differs across two categories of companies: one having IDs up to 50% and more; and second, the proportion is less than 50%. The results of our dynamic panel data analysis indicate that the ratio of IDs is found to have a positive association with the firm performance. Further, we found that firms with more than 50% IDs have a significantly higher firm performance than firms having less than 50% IDs. There should be an adequate ratio of independent members on board to avail benefits from their independent judgments without intervention in the ordinary course of business. It could be used as a preliminary study by the policymakers and regulatory authorities to set additional standards for the number and proportion of IDs.","PeriodicalId":37330,"journal":{"name":"Business Perspectives and Research","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-05-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41642827","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-19DOI: 10.1177/22785337221148580
Ishfaq Gulzar, Azhar Imtiyaz Bisati, S. I. Haque
This article presents the System Generalized Method of Moments (SGMM) results on the empirical association between innovation and corporate governance for a panel data set of 88 manufacturing companies in India listed on the NSE 200 Index from 2014 to 2020. GMM approach controls the potential sources of endogeneity inherent in the innovation—corporate governance relationship which mainly arises due to unobserved heterogeneity and simultaneity bias. We empirically analyze corporate governance and innovation to understand the market value of research and development practices of manufacturing companies in India. Our results indicate that Board size, Board meetings, and CEO duality support the “value creation” hypothesis of corporate governance of manufacturing companies in India. However, ownership concentration and Board meeting contradict “value creation hypotheses.” Therefore, this study identifies various factors of corporate governance that can help manufacturing companies in India in innovation and growth options. Further, this study recommends that ownership concentration and Board meetings should be properly assessed, as the concentrated owners should not merely act as expropriates, but rather should enable the long-term sustainability of the firm by taking the initiative, which enhances growth.
{"title":"Endogeneity and the Dynamics of Corporate Governance and Innovation in India’s Manufacturing Sector","authors":"Ishfaq Gulzar, Azhar Imtiyaz Bisati, S. I. Haque","doi":"10.1177/22785337221148580","DOIUrl":"https://doi.org/10.1177/22785337221148580","url":null,"abstract":"This article presents the System Generalized Method of Moments (SGMM) results on the empirical association between innovation and corporate governance for a panel data set of 88 manufacturing companies in India listed on the NSE 200 Index from 2014 to 2020. GMM approach controls the potential sources of endogeneity inherent in the innovation—corporate governance relationship which mainly arises due to unobserved heterogeneity and simultaneity bias. We empirically analyze corporate governance and innovation to understand the market value of research and development practices of manufacturing companies in India. Our results indicate that Board size, Board meetings, and CEO duality support the “value creation” hypothesis of corporate governance of manufacturing companies in India. However, ownership concentration and Board meeting contradict “value creation hypotheses.” Therefore, this study identifies various factors of corporate governance that can help manufacturing companies in India in innovation and growth options. Further, this study recommends that ownership concentration and Board meetings should be properly assessed, as the concentrated owners should not merely act as expropriates, but rather should enable the long-term sustainability of the firm by taking the initiative, which enhances growth.","PeriodicalId":37330,"journal":{"name":"Business Perspectives and Research","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-05-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44754365","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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