Search results

We investigate the effect of the adoption of formal board structure and board processes on firm performance in Colombian family firms, in a context where firms can choose specific aspects of board structure and processes. We deploy insights from the behavioral governance perspective to develop arguments about how family businesses may choose board elements based on their degree of control over the firm (absolute control or less), and its effect on firm performance.

We use an unbalanced data panel of 404 firm-year observations. The data was obtained from the annual financial and corporate governance reports of 62 Colombian stock-issuing firms for the period 2008–2014 – due to change in regulation, data could not be added beyond 2014. Panel data technique with random effects was used.

The results show that board structure is positively associated with financial performance, however, this relationship is negative in businesses where family has absolute control. We also found that there is a negative association between board processes and performance, but positive association in family-controlled businesses.

Our research contributes to research streams on effects of family control in firm choices and on the interactive effect of governance choices and institutional context and more generally how actors interact (rather than react) with their institutional context.

The objective of this paper is to investigate the effect of working capital efficiency (WCE) and its components on the composite financial performance of a sample of Indian firms.

Our sample includes 796 non-financial listed firms from 2015–16 to 2021–22. Sample firms’ profitability, liquidity, solvency, cash flow management, and financial and operational leverage have been used to classify them into companies with high composite financial performance (HCFP) and with low composite financial performance (LCFP) by using K-Means Clustering technique. A composite financial performance score (CFPS) of 1 has been assigned to HCFP and 0 to LCFP. We have used logistic regression models with fixed effect to estimate the effect of cash conversion cycle (CCC) and its components, i.e. inventory days, accounts receivable days and accounts payable days on CFPS in the presence of control variables such as growth, leverage, firm size, and age.

The study finds that CCC and inventory days are inversely associated with CFPS. This finding shows that the firms’ WCE leads to superior financial performance on a composite basis.

The research findings are based on samples drawn from the population of the listed Indian non-financial companies. Since the operation, financial practices, working capital policies, and management styles of firms vary greatly among nations, the results of this study should be extended to firms in other countries after taking into account the degree of resemblance to the sample firms.

The findings of this study hold significant value for industry practitioners, as they provide guidance in determining the optimal allocation of funds for working capital and devising strategies for effectively managing inventory levels, credit sales, and vendor payments in order to increase the overall value of the company. This study aims to help investors in building their investment portfolios by identifying companies with superior composite financial performance. Investors can enhance the construction of their investment portfolios by strategically selecting companies that demonstrate superior overall performance.

The results of our study will help companies improve their WCM strategies to enhance their overall value, and their significance increases manifold during economic downturns. Business firms that perform well by efficiently managing their working capital have a multiplier effect on the economy and society at large in the form of GDP contribution, labor income, taxes to the government, investment in capital assets, and payments to suppliers.

To understand the impact of WCE on firms’ performance, the extant working capital literature focuses on some specific characteristics such as profitability, valuation, solvency, and liquidity. The limitation of employing a single parameter is its inability to present the comprehensive performance evaluation of firms. This study is among the earliest studies that focus on the holistic evaluation of WCE's impact on the composite performance of a company.

The present study apotheosises on the relationship between blockchain and fintech and its impact on the financial services sector. It then gauges into the various aspects that have been included in the published literature by the authors all across the world.

Post-pandemic, technology has led to tremendous opportunities in the financial sector, and the customers have started assessing financial services in online mode, thus enabling companies to innovate their business strategies. The present chapter aims to explore the areas where blockchain is benefitting the financial sector.

The objectives of this study were achieved through systematic review of literature performed with the help of bibliographic analysis. Further, a PRISMA model was developed, and the networks were derived with the help of Scopus analyser software and VOSviewer Version 1.6.15.

It is observed that since the introduction of the term and development of the first blockchain, a lot of work has been performed in the said domain, but it is still at a nascent stage. It is thus discovered that the string specific research documents got published in Scopus database from 2016 onwards, and a considerable amount is being performed by authors from China, the United States and India.

The present chapter exhibits the various dimensions in which a lot has to be yet explored and needs to devise innovative and full proof strategies which will enable to overcome the challenges, thus strengthening the position and working of the companies in Industry 5.0.

The purpose of this study is to understand the rational cogent correlation among the factors that are responsible for the implementation of entrepreneurship to reinstate the severely affected ecosystem during the coronavirus disease 2019 (COVID-19) pandemic.

This paper attempts to identify the various units of entrepreneurship and public policies of entrepreneurship from the coherent literature review and examine the units' objectives. Examination of these units will help understand how the economy can recover from the COVID-19 impact. Total interpretive structural modeling (TISM) and matrix impacts cross multiplication applique and classement (MICMAC) have been used to recognize the factors, which are responsible for detangling the slowdown of the economy.

On the basis of the literature review, a total of 13 factors have been identified. The TISM methodology represents the hierarchical structure of the recognized factors and examines the pros and cons.

The TISM lags to explain the strength and bond among the factors. The MICMAC addresses this problem and advises what factor plays an essential role and which factor impact is the least. An advocate administration of the factors could help to achieve a successful entrepreneurial plan.

An analytic study of the literature review demonstrates the relationship among the units to frame an entrepreneurial plan during the COVID-19 pandemic by using the TISM methodology. Hence, TISM provides reasonable facts to examine why and what factors need more attention for the generation of new business starters in the economic crisis.

The case study is designed to help students understand how the “growth at all costs” attitude can lead to compromised corporate governance in a start-up leading to disastrous implications for all the stakeholders. This case study aims to make students understand the components of the fraud triangle, the impact of financial fraud on various stakeholders, the role of venture capitalist (VC) investors and the importance of good corporate governance in start-ups. The case study presents an excellent opportunity for students to discuss the consequences of ignoring good governance in the pursuit of growth in a start-up. After analyzing the case study, the students shall be able to explain the concept of the fraud triangle and to be able to identify the motivation, opportunity and rationalization of financial irregularities in a start-up; analyze the impact of financial irregularities on various stakeholders; comprehend the business model of VCs and evaluate its influence on VC-funded start-ups; and appraise the importance of good corporate governance in start-ups.

The case study revolves around the confession of financial irregularities made by one of the cofounders of GoMechanic, a start-up headquartered in Gurugram, India. On January 18, 2023, Amit Bhasin confessed to financial irregularities in the company’s financial statements, leading to laying off 70% of the workforce of the company. GoMechanic had earlier raised close to US$62m [1] from maverick global investors including Sequoia Capital, Tiger Global, Orios Venture Partners and Chiratae Ventures, and was negotiating to raise Series D financing from the Japanese multinational SoftBank with aspirations to be a unicorn (start-up with a valuation of over $1bn). The confession led to a debate about the consequences of the “growth at all cost” culture being followed by start-ups as well as VCs. GoMechanic was not an isolated instance of a lack of governance in the start-ups. The confession had consequences not only for the GoMechanic but for the entire start-up ecosystem of India, which was the third largest in the world. Bhasin stated that the founders take full responsibility for the situation, and they were working on a plan which was most viable under the circumstances. However, it was not going to be easy to regain the confidence of the investors.

The case study is best suited for senior undergraduate- and graduate-level business school students and in executive education programs in courses such as corporate governance and ethics, private equity and entrepreneurial finance.

Teaching notes are available for educators only.

CSS 1: Accounting and finance

This study aims to explore and conceptualize metaverse adoption using a systematic literature review (SLR). It also aims to propose a conceptual model that identifies significant factors affecting metaverse adoption in the entertainment, education, tourism and health sectors.

A SLR was conducted using the “preferred reporting items for systematic reviews and meta-analyses” report protocol and the “theory, context, characteristics, methods” framework to include all relevant articles published up to March 2023, which were sourced from the Scopus and Web of Science databases.

The reviewed literature revealed that the countries with the highest publications in the field of metaverse were China and the USA. It was also found that the technology acceptance model was the most used theoretical framework. Survey-based research using purposive and convenience sampling techniques emerged as the predominant method for data collection, and partial least square-structural equation modeling was the most used analytical technique. The review also identified the top six journals and the variables that help to develop a proposed model.

This review presents a novel contribution to the literature on metaverse adoption by forming a conceptual model that incorporates the most used variables in the entertainment, education, tourism and health sectors. The possible directions for future research with identified research gaps were also discussed.