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Article
Publication date: 17 February 2022

Vishnu K. Ramesh, Reshma K. Ramesh and Jithesh T.

The demand-side view of creditor rights posits a negative association between creditor rights and corporate borrowings. The purpose of this paper is as follows: first, the author…

Abstract

Purpose

The demand-side view of creditor rights posits a negative association between creditor rights and corporate borrowings. The purpose of this paper is as follows: first, the author examines whether the demand-side effect is more pronounced amongst firms with excess promoter shareholding. Subsequently, the authors analyze the impact of high promoter holdings on investment decisions owing to bankruptcy reforms.

Design/methodology/approach

To answer the above questions, the authors exploit the passage of the Insolvency and Bankruptcy Code (IBC) (2016) that strengthens the creditor rights of lenders, which impacts the borrowings and financing activities of Indian corporates. Using a panel of listed Indian firms over the period of 2012–2019, the authors analyze how the IBC affects firms’ borrowings and financing decisions with excess promoter holdings.

Findings

The authors find that bankruptcy reforms led to a statistically significant decline in the use of borrowed funds (primarily secured and long-term debt) by firms with high concentrated holdings. The analysis also indicates that firms with excess promoter ownership face an increased cost of debt due to bankruptcy reforms. As a result, firms with excess promoter holdings curtail their investments. Overall, the results indicate that India’s bankruptcy reforms significantly affect the firms’ financing and investment decisions with highly concentrated ownership.

Originality/value

While past research has explored the relationship between bankruptcy reforms and demand for/supply of debt, the authors provide novel empirical evidence on the role of promoter holdings that affects the relationship between bankruptcy law and financing and investment decisions. To the best of the author’s knowledge, this study is the first to investigate the role of ownership structure in the context of bankruptcy reforms by using a quasi-natural experiment.

Details

Indian Growth and Development Review, vol. 15 no. 1
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 20 May 2020

Precious Dapaah Opoku, Richard Kwasi Bannor and Helena Oppong-Kyeremeh

The purpose of this paper was to analyse the demographic, crop choice, institutional and environmental factors that will influence the vegetable growers in Bono and Ahafo regions…

Abstract

Purpose

The purpose of this paper was to analyse the demographic, crop choice, institutional and environmental factors that will influence the vegetable growers in Bono and Ahafo regions of Ghana to produce organic vegetables. The study also assessed the knowledge level of vegetable growers on organic certification processes.

Design/methodology/approach

Primary data were collected with the help of a structured questionnaire from 120 vegetable growers via a multistage sampling technique. The Heckman selection model was used to analyse the factors that influence farmers' willingness to adopt organic production as well as the intensity of adoption.

Findings

In this study, pepper (Capsicum spp) production, residential status, knowledge of organic certification processes, perceived negative environmental effect of conventional farming on the soil, and climate change positively influenced willingness to produce organic vegetables. Likewise, pepper production perceived negative environmental effect of conventional farming on the soil positively influenced the intensity of adoption. Household headship status, garden egg (Solanum integrifolium) production, perceived knowledge on grading and standards of vegetables, as well as the perception that only pesticides can be used to control vegetable pests negatively influenced the willingness to produce organic vegetables however perceived expertise of the farmer on grades and standards influenced intensity of adoption negatively.

Originality/value

In Ghana, even though most vegetable farmers do not have the requisite knowledge in the safe handling of pesticides, usage is widespread. Subsequent to this, is a health risk to farmers, consumers and the environment. As a result, there is a growing awareness that organic agriculture has a role to play in addressing problems associated with agrochemical use and over usage. However, most studies are consumer oriented with limited empirical research on the willingness to produce organics by farmers.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2019-0723

Details

International Journal of Social Economics, vol. 47 no. 5
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 5 February 2024

Vishnu K. Ramesh

This study aims to examine the role of economic political uncertainty (EPU) on various corporate policies, namely, cash reserves, investment, capital structure and operating…

Abstract

Purpose

This study aims to examine the role of economic political uncertainty (EPU) on various corporate policies, namely, cash reserves, investment, capital structure and operating activities of Indian listed firms.

Design/methodology/approach

To assess the influence of policy-related uncertainties, the author uses the India-specific EPU news-based index constructed by Baker et al. (2016) as a proxy for policy uncertainties. This study uses data from listed Indian firms spanning the period 2003 to 2019. The author uses panel regression models with firm-fixed effects to analyze the impact of EPU on corporate policies, including cash reserves, leverage and CAPEX, while considering key control variables.

Findings

In response to heightened EPU, firms tend to increase their cash reserves, curtail their investment activities and favour secured financing options. Notably, this study aligns with the “real options” framework, demonstrating that firms with substantial investment irreversibility significantly reduce their capital expenditures during periods of elevated EPU. Additionally, the results reveal that rising EPU corresponds to heightened borrowing costs and increased operating expenses for firms.

Originality/value

In contrast to prior research that predominantly investigated the impact of EPU on the decisions of listed firms in developed markets, this study delves into the role of EPU on corporate policies among listed firms in India. This focus is particularly relevant, given the significant policy changes that have transpired in the Indian business landscape in recent years.

Details

Indian Growth and Development Review, vol. 17 no. 1
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 15 January 2020

Ravi Sharma, Charcy Zhang, Stephen C. Wingreen, Nir Kshetri and Arnob Zahid

The purpose of this paper is to describe the application of soft systems methodology (SSM) to address the problematic situation of low opt-in rates for Precision Health-Care (PHC).

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Abstract

Purpose

The purpose of this paper is to describe the application of soft systems methodology (SSM) to address the problematic situation of low opt-in rates for Precision Health-Care (PHC).

Design/methodology/approach

The design logic is that when trust is enhanced and compliance is better assured, participants such as patients and their doctors would be more likely to share their medical data and diagnosis for the purpose of precision modeling.

Findings

The authors present the findings of an empirical study that confronts the design challenge of increasing participant opt-in to a PHC repository of Electronic Medical Records and genetic sequencing. Guided by SSM, the authors formulate design rules for the establishment of a trust-less platform for PHC which incorporates key principles of transparency, traceability and immutability.

Research limitations/implications

The SSM approach has been criticized for its lack of “rigour” and “replicability”. This is a fallacy in understanding its purpose – theory exploration rather than theory confirmation. Moreover, it is unlikely that quantitative modeling yields any clearer an understanding of complex, socio-technical systems.

Practical implications

The application of Blockchain, a platform for distributed ledgers, and associated technologies present a feasible approach for resolving the problematic situation of low opt-in rates.

Social implications

A consequence of low participation is the weak recall and precision of descriptive, predictive and prescriptive analytic models. Factors such as cyber-crime, data violation and the potential for misuse of genetic and medical records have led to a lack of trust from key stakeholders – accessors, participants, miners and regulators – to varying degrees.

Originality/value

The application of Blockchain as a trust-enabling platform in the domain of an emerging eco-system such as precision health is novel and pioneering.

Details

Industrial Management & Data Systems, vol. 120 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

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