Pub Date : 2022-03-28DOI: 10.1177/22779752211073552
W. Aslam, Iviane Ramos de Luna, M. Asim, Kashif Farhat
The study aims to identify the role of preceding self-service technologies (SSTs) in the adoption of mobile banking (m-banking). More specifically, the study examines the impact of attitude (AT), perceived usefulness (PU) and perceived ease of use (PEOU) of online banking (o-banking) and ATM in the adoption of m-banking. By using the non-probability purposive sampling technique, the data was gathered through a structured questionnaire from the non-users of m-banking. The partial least square-structural equation modeling (PLS-SEM) technique was employed on 257 useful responses to assess the hypotheses. The findings provided evidence that the AT towards ATMs and o-banking significantly affects the AT towards m-banking (ATMB). Moreover, the PEOU of ATM and o-banking significantly affects the PEOU of m-banking. However, in the case of PU, only the usefulness of o-banking affects the usefulness of m-banking. The results also reveal that the AT, PEOU and PU of m-banking affect the intention to adopt m-banking (IMB). The study benefits the banking industry as it provides insights on how banks can use their preceding SSTs in developing a consumer’s intention to use m-banking. This is one of the early studies that considers the effect of PEOU and PU of previous SSTs on the adoption of m-banking. The multi-channel perspective, that is, ATMs and o-banking in the adoption of m-banking, also offers additional valuable insights and contributes to the literature of technology adoption. In the past, studies have not focused on the spillover effects of preceding SSTs. However, mature channels could be used in boosting a new channel.
{"title":"Do the Preceding Self-service Technologies Influence Mobile Banking Adoption?","authors":"W. Aslam, Iviane Ramos de Luna, M. Asim, Kashif Farhat","doi":"10.1177/22779752211073552","DOIUrl":"https://doi.org/10.1177/22779752211073552","url":null,"abstract":"The study aims to identify the role of preceding self-service technologies (SSTs) in the adoption of mobile banking (m-banking). More specifically, the study examines the impact of attitude (AT), perceived usefulness (PU) and perceived ease of use (PEOU) of online banking (o-banking) and ATM in the adoption of m-banking. By using the non-probability purposive sampling technique, the data was gathered through a structured questionnaire from the non-users of m-banking. The partial least square-structural equation modeling (PLS-SEM) technique was employed on 257 useful responses to assess the hypotheses. The findings provided evidence that the AT towards ATMs and o-banking significantly affects the AT towards m-banking (ATMB). Moreover, the PEOU of ATM and o-banking significantly affects the PEOU of m-banking. However, in the case of PU, only the usefulness of o-banking affects the usefulness of m-banking. The results also reveal that the AT, PEOU and PU of m-banking affect the intention to adopt m-banking (IMB). The study benefits the banking industry as it provides insights on how banks can use their preceding SSTs in developing a consumer’s intention to use m-banking. This is one of the early studies that considers the effect of PEOU and PU of previous SSTs on the adoption of m-banking. The multi-channel perspective, that is, ATMs and o-banking in the adoption of m-banking, also offers additional valuable insights and contributes to the literature of technology adoption. In the past, studies have not focused on the spillover effects of preceding SSTs. However, mature channels could be used in boosting a new channel.","PeriodicalId":43330,"journal":{"name":"IIM Kozhikode Society & Management Review","volume":"12 1","pages":"50 - 66"},"PeriodicalIF":1.6,"publicationDate":"2022-03-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44462428","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 : 2022-03-23DOI: 10.1177/22779752221083351
W. Ahmed, A. Fenton, M. Hardey, Ronnie Das
The management literature has extensively studied viral marketing in the last decade; however, there is a lack of research in understanding network structures and the role of influencers within popular cultural consumption, such as on-demand digital media and binge-watching. In this article, we investigate the role of social media in popularising the East Asian dystopian cultural drama Squid Game. We studied this phenomenon by analysing social network structures, dynamics and influencer characteristics that transformed Squid Game into a popular global digital cultural consumption sensation. Stemming from the foundational theories of popular culture binge-watching, network theory and the social media echo chamber effect, we demonstrate how careful ‘seeding’ and ‘broadcasting’ behaviour adopted by Netflix and key influencers helped the ‘reciprocal merging’ of creative media content within the broader social media space. Our study found that 13,727 Twitter users were tweeting or mentioned on the day show was released. Our research findings further present the characteristic of individual group-based echo chambers and their role in value co-creation towards expanding the network boundary through e-WOM. This phenomenon led to the show’s unprecedented popularity amongst a global audience within a short period. Contributions of our work expand viral marketing and echo-chamber concepts into the binge-watching and popular digital culture realm, where the interplay between dramatized Asian and Western dystopian social norms provided the very fabric of user-led promotion and value co-creation.
{"title":"Binge Watching and the Role of Social Media Virality towards promoting Netflix’s Squid Game","authors":"W. Ahmed, A. Fenton, M. Hardey, Ronnie Das","doi":"10.1177/22779752221083351","DOIUrl":"https://doi.org/10.1177/22779752221083351","url":null,"abstract":"The management literature has extensively studied viral marketing in the last decade; however, there is a lack of research in understanding network structures and the role of influencers within popular cultural consumption, such as on-demand digital media and binge-watching. In this article, we investigate the role of social media in popularising the East Asian dystopian cultural drama Squid Game. We studied this phenomenon by analysing social network structures, dynamics and influencer characteristics that transformed Squid Game into a popular global digital cultural consumption sensation. Stemming from the foundational theories of popular culture binge-watching, network theory and the social media echo chamber effect, we demonstrate how careful ‘seeding’ and ‘broadcasting’ behaviour adopted by Netflix and key influencers helped the ‘reciprocal merging’ of creative media content within the broader social media space. Our study found that 13,727 Twitter users were tweeting or mentioned on the day show was released. Our research findings further present the characteristic of individual group-based echo chambers and their role in value co-creation towards expanding the network boundary through e-WOM. This phenomenon led to the show’s unprecedented popularity amongst a global audience within a short period. Contributions of our work expand viral marketing and echo-chamber concepts into the binge-watching and popular digital culture realm, where the interplay between dramatized Asian and Western dystopian social norms provided the very fabric of user-led promotion and value co-creation.","PeriodicalId":43330,"journal":{"name":"IIM Kozhikode Society & Management Review","volume":"11 1","pages":"222 - 234"},"PeriodicalIF":1.6,"publicationDate":"2022-03-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43690591","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 : 2022-02-28DOI: 10.1177/22779752211061203
Md Aslam Mia, L. D. Pellegrina, Cheng Zhang, Sunil Sangwan
Enhanced productivity remains a crucial agenda for firms to attain cost and competitive advantages in the market. Hence, the main purpose of this study is to investigate the effects of efficiency wage (EW) on the productivity of microfinance institutions (MFIs) with respect to their dual objectives, namely, outreach (depth and breadth) and financial sustainability. Unbalanced panel data of 179 Indian MFIs were collected over the period 2010–2018 from the Microfinance Information Exchange (MIX) market platform (now obtainable from the World Bank catalogue). Under a static model setting (fixed effects model), the observed relationship between EW and MFI’s productivity is mixed. On the one hand, EW exhibits a strong and statistically significant positive relationship with the breadth of outreach, even after considering various control variables and alternative proxies of EW. On the other hand, EW shows no positive influence on the MFIs’ depth of outreach; rather, it results in a mission drift of MFIs, with the poorest of the poor being neglected (weak and insignificant for proxy of EW). Concerning the financial sustainability of MFIs, EW exhibits a positive and statistically significant effect, except for the profitability dimension when an alternative proxy of EW is used. A two-step system generalized method of moments (GMM) performed to limit endogeneity problems also validates most of our findings. The outcomes of this study could help MFIs’ managers in designing appropriate financial packages to enhance MFIs’ productivity and subsequently attain the dual objective of outreach and sustainability.
{"title":"Efficiency Wage and Productivity in the Indian Microfinance Industry: A Panel Evidence","authors":"Md Aslam Mia, L. D. Pellegrina, Cheng Zhang, Sunil Sangwan","doi":"10.1177/22779752211061203","DOIUrl":"https://doi.org/10.1177/22779752211061203","url":null,"abstract":"Enhanced productivity remains a crucial agenda for firms to attain cost and competitive advantages in the market. Hence, the main purpose of this study is to investigate the effects of efficiency wage (EW) on the productivity of microfinance institutions (MFIs) with respect to their dual objectives, namely, outreach (depth and breadth) and financial sustainability. Unbalanced panel data of 179 Indian MFIs were collected over the period 2010–2018 from the Microfinance Information Exchange (MIX) market platform (now obtainable from the World Bank catalogue). Under a static model setting (fixed effects model), the observed relationship between EW and MFI’s productivity is mixed. On the one hand, EW exhibits a strong and statistically significant positive relationship with the breadth of outreach, even after considering various control variables and alternative proxies of EW. On the other hand, EW shows no positive influence on the MFIs’ depth of outreach; rather, it results in a mission drift of MFIs, with the poorest of the poor being neglected (weak and insignificant for proxy of EW). Concerning the financial sustainability of MFIs, EW exhibits a positive and statistically significant effect, except for the profitability dimension when an alternative proxy of EW is used. A two-step system generalized method of moments (GMM) performed to limit endogeneity problems also validates most of our findings. The outcomes of this study could help MFIs’ managers in designing appropriate financial packages to enhance MFIs’ productivity and subsequently attain the dual objective of outreach and sustainability.","PeriodicalId":43330,"journal":{"name":"IIM Kozhikode Society & Management Review","volume":"11 1","pages":"235 - 252"},"PeriodicalIF":1.6,"publicationDate":"2022-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45710463","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 : 2022-02-22DOI: 10.1177/22779752211065798
Abedalqader Rababah, Sarfaraz Javed, Azam Malik
Purpose: The purpose of the study is to analyse the role of internal social capital and external social capital in determining the financial and non-financial performance of the firm and the effect of manager’s intangible capabilities on internal social capital and external social capital of firm in the context of the manufacturing sector of India. Design/methodology/approach: The data for this study is collected from 417 managers of manufacturing firms through a structured questionnaire and is analysed through SPSS and AMOS by performing confirmatory factor analysis and structural equation modelling. Findings: Findings reveal that a manager’s business experience, financial literacy and intellectual capital significantly enhance the firm’s internal and external social capital. Furthermore, it has been found that the internal social capital of the firm has the potential to enhance the performance of the firm in financial and non-financial terms. The external social capital also significantly derives from the firm’s financial performance; however, it has not significantly impacted its non-financial performance in the current study. Research limitations/implications: These findings provide many implications in theoretical and practical terms because the literature regarding social capital and the linkage among social capital, intangible capabilities and firm performance will be enhanced. The strategymakers and policymakers can also benefit from this study’s implications for making better strategies and policies regarding social capital and the firm’s performance. Originality/value: Past studies, though, examined the influence of social capital on business performance. However, no prior research addresses the phenomenon through which social capital can determine business performance while undertaking the role of a manager’s intangible capabilities in such a model. Therefore, the current study is the first to study the interrelationship among the manager’s intangible capabilities, social capital, and firm performance.
{"title":"Is Social Capital a Key Factor to enhance Firm’s Performance via Manager’s Intangible Capabilities?","authors":"Abedalqader Rababah, Sarfaraz Javed, Azam Malik","doi":"10.1177/22779752211065798","DOIUrl":"https://doi.org/10.1177/22779752211065798","url":null,"abstract":"Purpose: The purpose of the study is to analyse the role of internal social capital and external social capital in determining the financial and non-financial performance of the firm and the effect of manager’s intangible capabilities on internal social capital and external social capital of firm in the context of the manufacturing sector of India. Design/methodology/approach: The data for this study is collected from 417 managers of manufacturing firms through a structured questionnaire and is analysed through SPSS and AMOS by performing confirmatory factor analysis and structural equation modelling. Findings: Findings reveal that a manager’s business experience, financial literacy and intellectual capital significantly enhance the firm’s internal and external social capital. Furthermore, it has been found that the internal social capital of the firm has the potential to enhance the performance of the firm in financial and non-financial terms. The external social capital also significantly derives from the firm’s financial performance; however, it has not significantly impacted its non-financial performance in the current study. Research limitations/implications: These findings provide many implications in theoretical and practical terms because the literature regarding social capital and the linkage among social capital, intangible capabilities and firm performance will be enhanced. The strategymakers and policymakers can also benefit from this study’s implications for making better strategies and policies regarding social capital and the firm’s performance. Originality/value: Past studies, though, examined the influence of social capital on business performance. However, no prior research addresses the phenomenon through which social capital can determine business performance while undertaking the role of a manager’s intangible capabilities in such a model. Therefore, the current study is the first to study the interrelationship among the manager’s intangible capabilities, social capital, and firm performance.","PeriodicalId":43330,"journal":{"name":"IIM Kozhikode Society & Management Review","volume":"11 1","pages":"207 - 221"},"PeriodicalIF":1.6,"publicationDate":"2022-02-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48559817","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 : 2022-02-22DOI: 10.1177/22779752211072934
Abhishek Chakraborty, Nishant Kumar Verma, A. Chatterjee
Our work delves into supply chain coordination involving a single supplier selling a single product to multiple downstream buyers. We consider the case when the supplier proposes implementing vendor-managed inventory (VMI) for each buyer. The VMI contract involves the buyers charging a penalty to the supplier on the excess inventory whenever the supplier exceeds some pre-decided inventory threshold. Unlike the works covered predominantly in the VMI literature involving penalty, where both the penalty and the threshold are exogenous, we develop a model to determine both endogenously. In our study, the supplier deciding on the penalty and the inventory threshold needs to ensure that each of the buyers’ interests is protected, that is, none of the buyers becomes worse off from the optimal position, thereby ensuring the willing participation of all the buyers. We further compared our model with the centralized Joint Economic Lot Size (JELS) model and other existing models. We show that our model has a cost equivalence with the JELS model with unequal order intervals. We also show the superiority of our proposed model over the existing VMI models in terms of the overall costs. Finally, we examine the impact of size and ordering cost on each buyers’ costs through numerical analysis.
{"title":"A Single Supplier Multi Buyer Supply Chain Coordination under Vendor- managed Inventory: Ensuring Buyers’ Interests in a Decentralized Setting","authors":"Abhishek Chakraborty, Nishant Kumar Verma, A. Chatterjee","doi":"10.1177/22779752211072934","DOIUrl":"https://doi.org/10.1177/22779752211072934","url":null,"abstract":"Our work delves into supply chain coordination involving a single supplier selling a single product to multiple downstream buyers. We consider the case when the supplier proposes implementing vendor-managed inventory (VMI) for each buyer. The VMI contract involves the buyers charging a penalty to the supplier on the excess inventory whenever the supplier exceeds some pre-decided inventory threshold. Unlike the works covered predominantly in the VMI literature involving penalty, where both the penalty and the threshold are exogenous, we develop a model to determine both endogenously. In our study, the supplier deciding on the penalty and the inventory threshold needs to ensure that each of the buyers’ interests is protected, that is, none of the buyers becomes worse off from the optimal position, thereby ensuring the willing participation of all the buyers. We further compared our model with the centralized Joint Economic Lot Size (JELS) model and other existing models. We show that our model has a cost equivalence with the JELS model with unequal order intervals. We also show the superiority of our proposed model over the existing VMI models in terms of the overall costs. Finally, we examine the impact of size and ordering cost on each buyers’ costs through numerical analysis.","PeriodicalId":43330,"journal":{"name":"IIM Kozhikode Society & Management Review","volume":"1 1","pages":""},"PeriodicalIF":1.6,"publicationDate":"2022-02-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41382609","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 : 2022-02-17DOI: 10.1177/22779752211051101
Aravind Reghunathan, Sridhar G
Marketers frequently use brand extensions to introduce new products and services. However, educators have limited resources to simulate the challenges of this strategy in classrooms. Using the scenario of a book being turned into a movie, we describe an experiential learning activity that guides students through the many stages of developing a brand extension. In this project, they also have the opportunity to put themselves in the shoes of a marketing manager in the preparation of a thorough plan for expanding an established brand to a new target market. The outcomes of its implementation in a marketing course, as well as the implications for marketing educators, are reviewed.
{"title":"Enjoy Your Favourite Book as a Movie: Using an Experiential Learning Exercise to Improve Student Understanding of Brand Extensions and Marketing Plan Preparation","authors":"Aravind Reghunathan, Sridhar G","doi":"10.1177/22779752211051101","DOIUrl":"https://doi.org/10.1177/22779752211051101","url":null,"abstract":"Marketers frequently use brand extensions to introduce new products and services. However, educators have limited resources to simulate the challenges of this strategy in classrooms. Using the scenario of a book being turned into a movie, we describe an experiential learning activity that guides students through the many stages of developing a brand extension. In this project, they also have the opportunity to put themselves in the shoes of a marketing manager in the preparation of a thorough plan for expanding an established brand to a new target market. The outcomes of its implementation in a marketing course, as well as the implications for marketing educators, are reviewed.","PeriodicalId":43330,"journal":{"name":"IIM Kozhikode Society & Management Review","volume":"12 1","pages":"112 - 126"},"PeriodicalIF":1.6,"publicationDate":"2022-02-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42765697","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 : 2022-02-15DOI: 10.1177/22779752211050693
P. Malhotra, P. Sinha
In its latest financial stability report, dated 11 January 2021, the Reserve Bank of India (RBI) emphasised the significance of balanced mutual funds in risk transmission. We investigate the transmission of volatility and contagion effect from Indian balanced funds to representative indices—Bank, PSU Bank, Private Bank, Financial Services, Broader Market, Services Sector and Fixed Income—using three established models: Diagonal BEKK (1995), Dynamic Conditional Correlation (DCC GARCH (2002)) and network model. In analyses of financial time series data, the COVID-19 pandemic has been widely regarded as a structural break. We may better understand the dynamism and scale of spillover before and during a crisis by dividing the study into two periods: pre-COVID-19 (January 2011–29 December 2019) and during COVID-19 (30 December 2019–20 April 2021). The results of all three models support our hypothesis of statistically significant spillover from balanced funds to chosen indices, with strong persistence and a marked increase in long-term volatility spillover, showing the presence of contagion effects. The findings of this paper can assist fund managers in diversifying their portfolios while also benefiting investors educationally. JEL Classification: C23, G12, G23
{"title":"Balanced Funds in India Amid COVID-19 Crisis: Spreader of Financial Contagion?","authors":"P. Malhotra, P. Sinha","doi":"10.1177/22779752211050693","DOIUrl":"https://doi.org/10.1177/22779752211050693","url":null,"abstract":"In its latest financial stability report, dated 11 January 2021, the Reserve Bank of India (RBI) emphasised the significance of balanced mutual funds in risk transmission. We investigate the transmission of volatility and contagion effect from Indian balanced funds to representative indices—Bank, PSU Bank, Private Bank, Financial Services, Broader Market, Services Sector and Fixed Income—using three established models: Diagonal BEKK (1995), Dynamic Conditional Correlation (DCC GARCH (2002)) and network model. In analyses of financial time series data, the COVID-19 pandemic has been widely regarded as a structural break. We may better understand the dynamism and scale of spillover before and during a crisis by dividing the study into two periods: pre-COVID-19 (January 2011–29 December 2019) and during COVID-19 (30 December 2019–20 April 2021). The results of all three models support our hypothesis of statistically significant spillover from balanced funds to chosen indices, with strong persistence and a marked increase in long-term volatility spillover, showing the presence of contagion effects. The findings of this paper can assist fund managers in diversifying their portfolios while also benefiting investors educationally. JEL Classification: C23, G12, G23","PeriodicalId":43330,"journal":{"name":"IIM Kozhikode Society & Management Review","volume":" ","pages":""},"PeriodicalIF":1.6,"publicationDate":"2022-02-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47754356","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 : 2022-01-28DOI: 10.1177/22779752211061207
Hrishikesh Desai
Item 503(c) of the United States Securities and Exchange Commission’s (SEC’s) Regulation S-K requires firms to disclose the ‘most significant’ factors that affect them in their Item 1A risk factor disclosures made in their 10-K (annual) or 10-Q (quarterly) SEC filings. Prior to COVID-19, firms discussed risk factors such as liquidity, competition, etc. as part of their Item 1A disclosures. The current pandemic has resulted in the COVID-19 risk factor being widely discussed as part of firms’ Item 1A risk factor disclosures. A ‘firm-specific’ discussion on this transient risk factor is unique in the sense that it can affect the salience of other, already disclosed, less transient but significant risk factors to investors and other stakeholders. Using a sample of 68 firms hard hit by COVID-19 with prior poor performance, I find that market reactions to their Item 1A risk factor disclosures were significantly more positive for firms that disclosed the COVID-19 risk factor in a certain firm-specific manner compared to those that didn’t. These results suggest that stakeholder perceptions of firms’ risk profiles are being biased to some extent as the less transient but other significant risk factors that were already affecting these firms seem to be underweighted by them in evaluating the firms’ risk profiles. I explain this bias further using the meta-theoretical framework of the elaboration likelihood model. I also propose a solution to this problem that involves making these disclosures in the form of risk matrices. JEL Classifications: G38, M10, M40, M41, M48
{"title":"Are Firms Biasing Stakeholder Expectations by Attributing Prior Poor Performance to COVID-19?","authors":"Hrishikesh Desai","doi":"10.1177/22779752211061207","DOIUrl":"https://doi.org/10.1177/22779752211061207","url":null,"abstract":"Item 503(c) of the United States Securities and Exchange Commission’s (SEC’s) Regulation S-K requires firms to disclose the ‘most significant’ factors that affect them in their Item 1A risk factor disclosures made in their 10-K (annual) or 10-Q (quarterly) SEC filings. Prior to COVID-19, firms discussed risk factors such as liquidity, competition, etc. as part of their Item 1A disclosures. The current pandemic has resulted in the COVID-19 risk factor being widely discussed as part of firms’ Item 1A risk factor disclosures. A ‘firm-specific’ discussion on this transient risk factor is unique in the sense that it can affect the salience of other, already disclosed, less transient but significant risk factors to investors and other stakeholders. Using a sample of 68 firms hard hit by COVID-19 with prior poor performance, I find that market reactions to their Item 1A risk factor disclosures were significantly more positive for firms that disclosed the COVID-19 risk factor in a certain firm-specific manner compared to those that didn’t. These results suggest that stakeholder perceptions of firms’ risk profiles are being biased to some extent as the less transient but other significant risk factors that were already affecting these firms seem to be underweighted by them in evaluating the firms’ risk profiles. I explain this bias further using the meta-theoretical framework of the elaboration likelihood model. I also propose a solution to this problem that involves making these disclosures in the form of risk matrices. JEL Classifications: G38, M10, M40, M41, M48","PeriodicalId":43330,"journal":{"name":"IIM Kozhikode Society & Management Review","volume":"11 1","pages":"171 - 182"},"PeriodicalIF":1.6,"publicationDate":"2022-01-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44715021","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}
{"title":"Book review: S. Ninan & V. Anand, 2019, Mind Master: Winning Lessons from a Champion’s Life","authors":"Krishnan T. N., Deepak Dhayanithy","doi":"10.1177/2277975221989814","DOIUrl":"https://doi.org/10.1177/2277975221989814","url":null,"abstract":"S. Ninan & V. Anand, 2019, Mind Master: Winning Lessons from a Champion’s Life. New Delhi: Hachette India. 272 pp., ₹599. ISBN-13: 978-9351951506.","PeriodicalId":43330,"journal":{"name":"IIM Kozhikode Society & Management Review","volume":"11 1","pages":"160 - 162"},"PeriodicalIF":1.6,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44567255","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 : 2021-12-30DOI: 10.1177/22779752211040267
S. Kumar
We investigate the causality in herding between foreign portfolio investors (FPIs) and domestic mutual funds (MFs) in the Indian stock market. The estimated herding levels are considerably higher than those observed in other international markets, and herding is prevalent in small stocks. We find that institutional investors follow contrarian-trading strategies, unlike what was documented in most other markets. Analysis of the aggregate herding measure shows a bi-directional causality between FPIs and MFs. Further analysis using directional herding measures indicate no evidence of causality between institutional herds on the sell-side. But we find causality on the buy-side and it is running in both directions between FPIs and MFs, implying a feedback of information. Given the tendency of institutions for herding in small stocks, adopting contrarian-trading strategies, the observed sell-side causality is perhaps having a salubrious effect. As institutional investors are contrarians, their trading activity will lead to price corrections in small stocks aligning with the fundamentals, thereby contributing to market efficiency. JEL Classification: C23, C58, G23, G15, G40
{"title":"Institutional Herding: Causality and Persistence","authors":"S. Kumar","doi":"10.1177/22779752211040267","DOIUrl":"https://doi.org/10.1177/22779752211040267","url":null,"abstract":"We investigate the causality in herding between foreign portfolio investors (FPIs) and domestic mutual funds (MFs) in the Indian stock market. The estimated herding levels are considerably higher than those observed in other international markets, and herding is prevalent in small stocks. We find that institutional investors follow contrarian-trading strategies, unlike what was documented in most other markets. Analysis of the aggregate herding measure shows a bi-directional causality between FPIs and MFs. Further analysis using directional herding measures indicate no evidence of causality between institutional herds on the sell-side. But we find causality on the buy-side and it is running in both directions between FPIs and MFs, implying a feedback of information. Given the tendency of institutions for herding in small stocks, adopting contrarian-trading strategies, the observed sell-side causality is perhaps having a salubrious effect. As institutional investors are contrarians, their trading activity will lead to price corrections in small stocks aligning with the fundamentals, thereby contributing to market efficiency. JEL Classification: C23, C58, G23, G15, G40","PeriodicalId":43330,"journal":{"name":"IIM Kozhikode Society & Management Review","volume":"11 1","pages":"183 - 194"},"PeriodicalIF":1.6,"publicationDate":"2021-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41943392","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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