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The academic literature has examined why bank runs happen based on the work of 2022 Nobel Prize-winning economists Diamond and Dybvig. They have found the source of banking/financial crisis in terms of mismatch between liabilities (deposits being short term and savers wanting to short-term access to their money) and assets (long term and illiquid). The Lakshmi Vilas Bank (LVB) crisis intensified when it came under Prompt Corrective Action (PCA) of the Reserve Bank of India (RBI). This situation provides the opportunity to study whether the elements embodied in the theoretical models like Diamond and Dybvig hold true for LVB crisis. This study aims to examine the reasons for the demise of LVB in India using DuPont financial model, peer group analysis and time series structural break in crucial financial parameters.

The study examines the reason for insolvency of LVB using financial ratios, financial models (DuPont), financial distress model (Z-score) and asset-liability management. The study also adopts univariate structural break models using quarterly financial data covering the key financial measures used in the RBI’s PCA framework.

LVB crisis is like Diamond–Dybvig model, in the sense, savers requiring short-term access to their money (liquidity for their deposits) on the information of high non-performing assets, which further deteriorates the illiquid nature of loan portfolio (assets) of banks. The study finds its profit margin (net interest margin and non-interest margin) and managerial efficiency had started deteriorating since 2018. The study finds that LVB’s main weakness lies in its limited credit appraisal ability, its monitoring and weak internal controls. Lending to sensitive sectors (like real estate, capital markets and commodities) and exposure to large business groups also contributed to its weakness. The study also finds huge, elevated asset-liability mismatch, especially in the short-term maturity buckets. Using univariate econometric time series model, the study also confirms financial weakness being evident much earlier than the time when resolution was undertaken by the RBI through PCA.

The study has implications for analysing and monitoring financial distress of banks. The study also has implications for devising banking regulation and supervision.

The study brings in a perspective of the banking regulations using the application of PCA framework on a listed private sector bank. The authors combine an accounting ratio model and combine risk measures that could identify the incipient risks in a bank. The authors believe this will help in refinement of banking regulations and better monitoring mechanisms.

The European Union’s Digital Markets Act (DMA) calls for far-reaching changes to the way economic activity will occur in EU digital markets. Before its remedies are imposed, it is critical to assess their impacts on individual markets, the digital sector, and the overall European economy. The European Commission (EC) released an Impact Assessment in support of the DMA that purports to evaluate it using cost/benefit analysis.

An economic evaluation of the DMA should consider its full impacts on dynamic competition. The Impact Assessment neither assesses the DMA's impact on dynamic competition in the digital economy nor evaluates the impacts of specific DMA prohibitions and obligations. Instead, it considers benefits in general and largely ignores costs. We study its benefit assessments and find they are based on highly inappropriate methodologies and assumptions. A cost/benefit study using inappropriate methodologies and largely ignoring costs cannot provide a sound policy assessment.

Instead of promoting dynamic competition between platforms, the DMA will likely reinforce existing market structures, ossify market boundaries, and stunt European innovation. The DMA is likely to chill R&D by encouraging free riding on the investments of others, which discourages making those investments. Avoiding harm to innovation is critical because innovation delivers large, positive spillover benefits, driving increases in productivity, employment, wages, and prosperity.

The DMA prioritizes static over dynamic competition, with the potential to harm the European economy. Given this, the Impact Assessment does not demonstrate that the DMA will be beneficial overall, and its implementation must be carefully tailored to alleviate or lessen its potential to harm Europe’s economic performance.

The case is written based on publicly available data from primary sources such as the company’s annual reports, company website and the company’s presentations, as well as from secondary sources comprising newspaper articles, research papers, research magazines, magazine articles, industry reports, research reports, etc. as indicated in the references. The company’s financials and peer data are sourced from the Thomson Reuters Eikon database.

The case examines the financial position of Macy’s, Inc., America’s largest and one of the oldest premier departmental stores, with a consolidated annual turnover of US$18,097m in the fiscal year 2020/2021 (FY, 2021). Over the previous few years, the company had been struggling with decreasing market share and profitability mainly due to increasing competition from online retailers and deep discounters, which was affecting the company’s share price. With the appointment of a new chief executive officer (CEO) in fiscal year (FY) 2017, Macy’s, Inc. undertook several changes to revive its financial health and improve its market share. However, it still registered heavy losses of US$3,944m in the FY 2020/2021, the company’s first time in the past decade. With many retailers filing for bankruptcy, was there more that Macy’s could do to improve the company’s position and regain lost investor confidence? Will its entry into emerging markets play a crucial role in its turnaround?

The case can be used in undergraduate and postgraduate courses such as accounting for managers, financial statement analysis, management accounting, introduction to accounting and advanced financial statement analysis. The case can also be effectively used to understand the primary fundamental analysis of the company that involves understanding the company’s positioning and strengths, weaknesses, opportunities and threats analysis. The case would also help business management and entrepreneurship students to get a preliminary idea about the change management process. Finally, the case can be used to familiarize students with using Microsoft Excel to build financial analysis worksheets.

Teaching notes are available for educators only.

This paper aims to understand the spatiotemporal influence of metro rail connectivity on housing prices in surrounding areas. The study assesses the average annual price shift for apartments around metro stations in Delhi during the previous decade, specifically from 2010 to 2019. The authors examine the spatiotemporal extents to which housing prices are determined by the prominence of metro stations and spatial development around metro stations.

The authors perform the cross-tabulation analysis to calculate chi-square values to test the hypotheses concerning the responsiveness of the housing market in Delhi to the number of locational variables in the areas connected with the mass public transportation system.

The empirical findings verify the existence of a housing market overvaluation in Delhi around metro stations until 2013, which was eventually re-adjusted after 2014. The key findings of the study suggest the role of location variables concerning metro rails in the shooting up of the housing prices in the city. In addition, the research establishes the association of annual housing price shifts to the metro rails in the short-term, mid-term and long-term in conjunction with the distance from the metro station.

In the market, the prices are often overvalued by real estate agents due to better connectivity to the metro stations. The overvaluation eventually causes massive downfalls in housing markets and rollouts as a risk for the investors. However, the effect of mass transportation on housing prices is mixed in nature, limited to a certain extent only and not as influential as frequently portrayed by the market forces. This effect loses colour with time.

The aim of this study was to appraise the delivery of information communication technology (ICT) projects and identify key determinants for stakeholder integration.

Given that empirically, little was known about stakeholder integration in the ICT sector and its influence or effect on project delivery; qualitative method was used. Forty-seven semi-structured interviews were carried out to derive senior project practitioners and policymakers' constructs of stakeholder integration and infrastructure performance improvement of ICT projects. The verification and validation of the proposed assessment tool were achieved through the use of focus group discussion.

As established in this research study, there is a need for project delivery teams to evaluate the level of stakeholder integration, the formulation of a project business case, the project processes and issues of compliance and regulation in ICT projects. What is evident in the findings of the study is that the management model adopted for the stakeholders in the Kenyan ICT sector ought to make communication the fulcrum of their engagement.

The inferences made herein are critical in contributing to knowledge regarding the ICT infrastructure project management terrain in developing countries. There is evidence in the study to conclude that the concept of stakeholder management and integration has implications for the sustainability of ICT projects. One of the issues that predominantly featured in the research was the input of stakeholder integration in terms of project sustainability.

This paper explores the connection between capital structure and financial performance within European listed firms. The primary objective is to demonstrate an inverse U-shaped relationship between these two variables and pinpoint an optimal debt-equity mix.

In this study, we adopt a dynamic modeling approach to investigate the relationship between a firm’s capital structure and financial performance. Drawing on well-established theories and prior empirical studies, our model examines 3,121 dividend-paying firms from 41 European countries over 14 years, from 2008 to 2021. To enhance the reliability of our findings, we employ two distinct estimation techniques: the fixed effect model (FE) and the system generalized method of moments (System-GMM).

This study reveals an inverse U-shaped relationship between the firm’s financial performance, measured by the return on equity (ROE) and its capital structure (total liability to total assets ratio). Furthermore, an optimal capital structure of about 29% is determined for all firms in the sample, and about 21%, 28% and 41% industry-specific capital structure for manufacturing, real estate and wholesale trade, respectively.

This paper contributes to existing knowledge by empirically determining an optimal capital structure for listed firms across various industries in Europe, which very few studies have attempted to do in the past. An optimal capital structure is an invaluable benchmark for managers and other stakeholders, informing their decision-making.

A shift in supply management is underway. Nonlinear connections of buyers and sellers in business ecosystems challenge conventional supply management practice. Digital technologies and network connectivity lower the costs of connecting and collaborating with loosely related external parties. This paper aims to explore how this challenges conventional purchasing and supply management (PSM) practice.

This paper builds on the extended case research method. It is based on a theoretical conceptualization, which is explored through a case study.

The authors find that both supply management’s contribution to value creation, value appropriation and collaborative interfaces change with the emergence of multifaceted business systems.

The paper is developed within a specific industrial context, and the findings are not directly transferrable to other contexts. However, the authors believe that on an analytical level, there is value in transferring the insights into other manufacturing contexts.

Managers must challenge the taken-for-granted thinking that follows from linear supply management practices and start rehearsing the role of PSM when dealing with supplies from business ecosystem lead firms.

This research takes up a novel issue, highly relevant for PSM practitioners as well as for theory. To the best of the authors’ knowledge, nothing has been written about the colliding business logics of conventional PSM and that of business ecosystems.

This study aims to examine the factors that influence the relationship between sustainability and financial performance (FP) of the European listed companies.

This study analyzed data from 795 companies in 21 European countries by applying linear mixed-effects multilevel regressions, a two steps system generalized method of moments and quantile regression models to uncover the links between sustainability and FP.

The past four decades have witnessed abundant research to determine the relationship between corporate sustainability and FP. Thus, conducting further research in 2023 could be seen as “reinventing the wheel.” Yet, earlier research considered firms as isolated entities with sustainability and FP being dependent only on that firm’s actions. By contrast, with the help of network governance theory, this study shows that a firm’s sustainability and FP depend on an interplay among interorganizational actors, such as institutional qualities, macroeconomic factors and an embrace of sustainability. Here, large firms play an essential role. Three significant findings are drawn. First, sustainability performance has a significant impact on FP in the European context. Second, the institutional quality (IQ) of the rule of law and control of corruption plays a crucial role in enhancing sustainability and FP, and finally the interaction of IQ and economic growth helps to increase companies’ market value (Tobin’s Q). The consistent and empirically robust findings offer key lessons to policymakers and practitioners on the interplay among multiple actors in corporate sustainability and FP.

A synergetic multifaced relationship between governmental institutions and corporations is inevitable for ensuring sustainable development. The degree of intimacy in the relationship, of course, will be determined by the macroeconomic environment.

In this research, this study theoretically and empirically identified that corporate sustainability and FP are not solely dependent on corporate operation. Rather, it is transformed, modified and shaped through an interaction of multiple actors’ trajectories in the macro business environment.

This study aims to intend to contribute to the literature by testing the effect of scepticism on green consumer behaviour through environmental concern, knowledge, value and willingness to pay more in the Indian context. Thus, the comprehensive model with new directions of antecedents of green consumer purchase behaviour and direct and indirect effects was examined using structural equation modelling.

The study adopted the hypo-deductive research design to test the proposed structural model. Cross-sectional data were collected through a predesigned questionnaire from the households living in Visakhapatnam city using a purposive sampling method. The proposed theoretical model was tested using structural equation modelling.

The results support five antecedents’ direct and indirect effects on green purchase behavioural intentions and actual buying behaviour, except for the indirect effect of green scepticism on green purchase behaviour (GPB). Similarly, scepticism is responsible for significant variation in GPB.

The present study’s findings imply the role of scepticism on GPB, and the policies of adopting green products need to be addressed. Green buying is an obscure task; however, it can be evident by adding eco-friendly aspects and persuading consumers of a win-win situation for themselves, the environment and the company.

This study adds to the field of knowledge by exploring and testing the factors affecting GPB, which was not emphasized earlier in the Indian context and second, by developing a theoretical consensus on testing the antecedents of GPB. The results strengthen the argument that scepticism is an antecedent that drives GPB.

The purpose of this study is to determine the impact of two-phase power law nanofluid on a curved arterial blood flow under the presence of ovelapped stenosis. Over the past couple of decades, the percentage of deaths associated with blood vessel diseases has risen sharply to nearly one third of all fatalities. For vascular disease to be stopped in its tracks, it is essential to understand the vascular geometry and blood flow within the artery. In recent scenarios, because of higher thermal properties and the ability to move across stenosis and tumor cells, nanoparticles are becoming a more common and effective approach in treating cardiovascular diseases and cancer cells.

The present mathematical study investigates the blood flow behavior in the overlapped stenosed curved artery with cylinder shape catheter. The induced magnetic field and entropy generation for blood flow in the presence of a heat source, magnetic field and nanoparticle (Fe₃O₄) have been analyzed numerically. Blood is considered in artery as two-phases: core and plasma region. Power-law fluid has been considered for core region fluid, whereas Newtonian fluid is considered in the plasma region. Strongly implicit Stone’s method has been considered to solve the system of nonlinear partial differential equations (PDE’s) with 10–6 tolerance error.

The influence of various parameters has been discussed graphically. This study concludes that arterial curvature increases the probability of atherosclerosis deposition, while using an external heating source flow temperature and entropy production. In addition, if the thermal treatment procedure is carried out inside a magnetic field, it will aid in controlling blood flow velocity.

The findings of this computational analysis hold great significance for clinical researchers and biologists, as they offer the ability to anticipate the occurrence of endothelial cell injury and plaque accumulation in curved arteries with specific wall shear stress patterns. Consequently, these insights may contribute to the potential alleviation of the severity of these illnesses. Furthermore, the application of nanoparticles and external heat sources in the discipline of blood circulation has potential in the medically healing of illness conditions such as stenosis, cancer cells and muscular discomfort through the usage of beneficial effects.