Search results

The purpose of this study is to study the impact of new product announcements on the shareholder value in India since; there is lack of perceptive results regarding the impact. Also, an attempt has been made to analyse the determinants of value creation, by industry type, which has so far escaped the attention of researchers.

First, standard event study methodology has been used to measure the abnormal gains/losses of the announcing firms for the new product introductions. Second, regression analysis has been conducted to find out the relationship between the shareholder value and the firm and industry characteristic variables.

The results of the study show that the announcing companies in India have got significant positive returns during the announcement of the new product. The value stands at 0.00455 for the event day. In the second part, the application of the regression test has found that firm size, R&D intensity, free cash flow, debt ratio and market size are significant variables in the determination of the shareholder value.

The present study goes a step further in establishing the reasons for value creation when new product announcements are made by the Indian firms. The analysis has been carried out industry wise to identify the determinants of shareholder value in different industries. This would guide the decision makers at the strategic level and players of the stock market at large in taking much more informed decisions.

Before introducing new products, companies make announcements regarding the launch of the product which influences stock market yields of the announcing companies. Information content of the new product announcement has never been an exclusive focused stream of research. Therefore, an assessment of the impact of the content characteristics of the new product announcement on the shareholder value and the impact of source credibility (spokesperson) in making such announcements is a major gap in the existing literature. The paper aims to discuss these issues.

First, the standard event study methodology has been employed on the sample to measure the abnormal gains/losses accruing to the announcing firms. Second, moderated regression analysis (MRA) is employed to identify the characteristics of the new product announcement and to check the role of the spokesperson in creating shareholder value.

The results of the event study indicate that the abnormal returns are generated during the new product announcement. The results of MRA disclose the variables having a positive and a significant influence on the effective returns of the announcing companies. Likewise, the role of the spokesperson has come out brightly as a credible communicator.

The research provides a direction to the announcing companies regarding the content of the announcement leading to a positive perception among the investing community. Likewise, it also provides direction to the investor community about the characteristics of the announcement content they give weight age in forming a perception of strength in evaluating the new product announcement, to which they are largely unaware.

This paper seeks to compare target shareholders' wealth gains in domestic and cross‐border acquisitions in India. Two existing schools of thought namely, the industrial organizational theory and bid‐specific factors theory have been compared to identify which of these two theories affect the target shareholders' announcement wealth gains in India.

Standard event study methodology has been applied to compute the announcement returns for domestic and cross‐border acquisitions. Cross‐border effect is calculated to compare the value creation in the two sets of acquisitions. Furthermore, cross‐sectional regression analysis is conducted to capture the impact of bid‐related features on target shareholder's value creation.

The results indicate that both domestic and cross‐border acquisitions have created value for the target company shareholders on the announcement. Nonetheless, the analysis of cross‐border effect as well as regression analysis makes it evident that value creation is higher for domestic acquisitions as compared to cross‐border acquisitions due to the influence of various bid‐specific factors. Thus, in India, bid‐related variables are the fundamental drivers of the target's announcement wealth gains irrespective of the nationality of the acquirer.

The paper extends the discussion on the target's wealth creation in domestic and cross‐border acquisitions by segregating the existing literature into two schools of thoughts namely, the industrial organizational school and bid‐specific factors school in an emerging economy like India. Moreover, various reasons specific to Indian mergers and acquisitions have been forwarded to explain the subdued market reaction to cross‐border acquisitions.

The paper seeks to assess the impact of brand acquisition announcement on the wealth of the acquiring company's shareholders in India. Furthermore, announcement returns have been assessed and compared across FMCG versus pharmaceutical brand acquisitions and domestic versus cross border brand buyouts.

Standard event study methodology has been applied to compute the announcement returns for the overall sample of brand acquisitions. Besides, sectoral and cross border effect has been computed to assess and compare the shareholders' wealth gains of pharmaceutical versus FMCG brand acquisitions and domestic versus cross border buyouts respectively.

The results indicate that the acquiring company shareholders have gained positive and significant returns on the announcement of a brand acquisition as it offers instant access to brand names that are vital for the companies to compete effectively in a dynamic business environment. Further, it gives an assurance of better long‐term prospects for the acquiring company by adding certainty to the future cash flows. However, value creation is not universal; rather it is sector specific and country specific thus yielding higher wealth gains for the FMCG sector brand buyouts than the pharma ones and for the domestic brand acquisition than the foreign ones.

The study tries to establish an interface between marketing and finance literature, by assessing the impact of inorganically acquired brands on shareholder wealth within the framework of event study methodology. The study would go a long way in enabling marketing managers to assess and communicate the financial value of their branding strategies to the investors at large.

The purpose of this study is to utilize the concept of resource based approach to ascertain the resources and the interactions that exist among these resources leading to differential performance in the Indian pharmaceutical industry. Based on review of the literature, the study also highlights differences among companies operating in economically developed economies and in an emerging economy in the pharmaceutical industry, in terms of resources that matter.

Panel data ranging from 2005‐2010 comprising of the listed companies from the Indian pharmaceutical industry is analyzed using random effects regression technique.

The analysis reveals company age and the interaction of R&D expenditure with MD experience are significantly related to performance. Further, the analysis reveals a negative relationship of R&D expenditure with performance in two out of the four models and marketing expenditure is found to have no significant impact on performance.

The paper helps managers understand the resources they should build upon to improve performance.

The paper adds to existing literature on the resource based research in India, where the application of the concept is less prevalent.

The paper aims to analyze and compare the branding strategies used in the three sectors namely FMCG, services and durables.

Based on the literature review, a more comprehensive list of branding strategies is proposed. A content analysis of 600 randomly selected brands, 200 from each sector, is performed. The branding strategies used in the three sectors are explained and MANOVA is conducted to test the hypotheses about differences in the branding strategies across the three sectors.

The results reveal that the branding strategies vary across the three sectors. Single corporate brand strategy is predominantly used for durables and credence services. On the other hand, in case of FMCG and experience services, individual brand type endorsed by the corporate brand type is the most frequently used branding strategy. Thus, there is a trend towards corporate branding as corporate brand type is popular in all the sectors. Also, other than the single corporate brand strategy, as in case of durables and credence services, single brand type strategy is rarely used. For FMCG brands and experience services brands, companies are trying to leverage brand equity of two or more brand types.

The paper offers insights for designing branding strategies when branding a product/service. Brand managers may rely on corporate brand type when risk associated with a purchase is high, as in case of durables and credence services. However, when the risk associated is low, as in case of FMCG and experience services, individual brand type may be preferred, but at the same time, it should be endorsed by corporate brand type.

This study adds value to the growing body of literature on branding strategies by identifying a more comprehensive and simplistic list of branding strategies which is a major contribution of the paper. Further, this is one of a very few empirical studies on branding strategies and is a pioneering attempt to evaluate the branding strategies in the FMCG vis‐à‐vis services vis‐à‐vis durables sectors. It empirically substantiates that the three sectors are heterogeneous among themselves and homogeneous within themselves with respect to their branding strategies.

The use of technology in 4th industrial revolution is at its peak. Industries are trying to reduce the consumption of resources by effectively utilizing information and technology to connect different functioning agents of the manufacturing industry. Without digitization “Industry 4.0” will be a virtual reality. The present survey-based study explores the factual status of digital manufacturing in the Northern India.

After an extensive literature review, a questionnaire was designed to gather different viewpoints of Indian industrial practitioners. The first half contains questions related to north Indian demographic factors which may affect digitalization of India. The latter half includes the queries concerned with various operational factors (or drivers) driving the digital revolution without ignoring Indian constraints.

The focus of this survey was to understand the current level of digital revolution under the ongoing push by the Indian government focused upon digital movement. The analysis included non-parametric testing of the various demographic and functional factors impacting the digital echoes, specifically in Northern India. Findings such as technological upgradations were independent of type of industry, the turnover or the location. About 10 key operational factors were thoughtfully grouped into three major categories—internal Research and Development (R&D), the capability of the supply chain and the capacity to adapt to the market. These factors were then examined to understand how they contribute to digital manufacturing, utilizing an appropriate ordinal logistic regression. The resulting predictive analysis provides seldom-seen insights and valuable suggestions for the most effective deployment of digitalization in Indian industries.

The country-specific Industry 4.0 literature is quite limited. The survey mainly focuses on the National Capital Region. The number of demographic and functional factors can further be incorporated. Moreover, an addition of factors related to ecology, environment and society can make the study more insightful.

The present work provides valuable insights about the current status of digitization and expects to facilitate public or private policymakers to implement digital technologies in India with less efforts and the least resistance. It empowers India towards Industry 4.0 based tools and techniques and creates new socio-economic dimensions for the sustainable development.

The quantitative nature of the study and its statistical predictions (data-based) are novel. The clubbing of similar success factors to avoid inter-collinearity and complexity is seldom seen. The predictive analytics provided in this study is quite elusive as it provides directions with logic. It will help the Indian Government and industrial strategists to plan and perform their interventions accordingly.