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1 – 10 of 13This study aims to squeeze some critical viewpoints from the shifting landscape of business research (she), that conceals her true personality. Today, she is relentlessly…
Abstract
Purpose
This study aims to squeeze some critical viewpoints from the shifting landscape of business research (she), that conceals her true personality. Today, she is relentlessly struggling to strike a good balance between science and creativity. Therefore, she resolves to pivot the scholarly attention towards “scientific creativity”.
Design/methodology/approach
Business research is personified in this viewpoint paper. By adopting the methodology of third-person omniscient, the author pens the introspections of contemporary business research, and how she would express herself in modern times if she were a living person.
Findings
Business research introspects that she is suffering from the phenomena of “existential crisis” and “popularity fallacy” in contemporary times. Though she believes that the science of business research is evolving significantly, worries about becoming scientifically monotonous grip her in the dark of the nights. She laments the grim reality of today; studies of a similar nature dominate the research literature while the philosopher in her is fading gradually. Therefore, she calls for more “scientific creativity”. She realises that solving societal problems must remain her foremost priority. However, she believes that her priorities towards society and world peace depend on whether she could revitalise the fading philosopher of personality.
Originality/value
The current viewpoint paper is an attempt to shed some light on the landscape of contemporary business research, which is undergoing unremitting changes. It also highlights the desirable changes in the context of business research.
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This current study draws a comparison between the performance indicators of public sector banks (PSBs) and private sector banks (or non-PSBs) in India. The study controls for the…
Abstract
Purpose
This current study draws a comparison between the performance indicators of public sector banks (PSBs) and private sector banks (or non-PSBs) in India. The study controls for the impact of COVID-19.
Design/methodology/approach
The study uses strongly balanced panel data for seven years of 12 PSBs and 10 non-PSBs from the Nifty PSU Bank Index and Nifty Private Bank Index. The study applies panel data methodology to arrive at the results.
Findings
The study demonstrates that the behavior of indicators of performance and returns volatility for PSBs and non-PSBs differs substantially. While factors like capital adequacy ratio (CAR), cost management (COST), liquidity (LIQ), inflation and economic growth exhibit a similar impact on both categories of Indian banks, the effect of credit risk (RISK), market power (POWER) and COVID-19 on performance and returns stability is different for PSBs and non-PSBs.
Research limitations/implications
There is a limited sample size of banks in India.
Practical implications
PSBs and non-PSBs need distinct treatments when calibrating performance indicators.
Social implications
The performance and stability of banks are essential for society at large, the depositors and the investors.
Originality/value
The study provides vibrant implications for insight for banks to calibrate the variables that determine performance and stability, regulators and policymakers for effective governance of the banking ecosystem and effective utilization of public funds and capital. The findings are relevant for policymaking today, when the government is considering the privatization of a few PSBs.
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Shailesh Rastogi, Kuldeep Singh and Jagjeevan Kanoujiya
Nowadays, informed decision-making is catching up. Technological advancements and computing ability further fuel and facilitate this tilt toward informed decision-making. In such…
Abstract
Purpose
Nowadays, informed decision-making is catching up. Technological advancements and computing ability further fuel and facilitate this tilt toward informed decision-making. In such a scenario, data is cynosure. Therefore, the ability to gather data by a nation (incredibly accurate public data) becomes equally important and relevant, as measured by statistical performance indicators (SPI). This study aims to explore the association of financial inclusion (FI); environmental, social and governance (ESG); poverty; and SPI.
Design/methodology/approach
The panel data of 140 nations for nine years are gathered to explore the association of FI, ESG and poverty with the SPI. Panel data estimation is conducted to arrive at the results.
Findings
The findings of this study highlight mixed outcomes for FI. ESG is positively associated with SPI, but poverty is not associated with SPI. These findings imply that an increase in FI may reduce the statistical capacity of the nations. An increase in ESG increases the capacity. However, change in poverty does not influence the SPI. The recommendation based on this study’s outcome suggests auditing the FI and poverty vis-à-vis SPI to ensure SPI’s veracity and robustness in the long run.
Originality/value
The way in which the individual social, economic and environmental indicators influence the SPI needs to be tested to establish the veracity and robustness of the SPI, which is barely researched as observed in the literature.
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Kuldeep Singh, Rebecca Abraham, Jitendra Yadav, Amit Kumar Agrawal and Prasanna Kolar
The purpose of this study is to look at the multifaceted relationship mechanism between corporate social responsibility (CSR) and organizational performance (OP) via…
Abstract
Purpose
The purpose of this study is to look at the multifaceted relationship mechanism between corporate social responsibility (CSR) and organizational performance (OP) via sustainability risk management (SRM) and organizational reputation (OR).
Design/methodology/approach
This research connects CSR to OP via SRM and OR. Based on a sample of 325 managers of multinational firms in India, a theoretical model was proposed and analyzed through sequential mediation regressions analysis.
Findings
The findings indicate that CSR is positively and appreciably associated with OP. Furthermore, SRM and OR have been found to have a sequentially mediating effect on the interrelationship between CSR and OP. The study recognizes that organizations with a proactive approach to CSR tend to manage sustainability risk more actively, which helps to improve OR and ultimately results in better OP.
Originality/value
The research advances understanding of the triple bottom line and offers a platform for building strategic and successful CSR policies by offering valuable insights on the link between CSR and OP.
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The microfinancing sector is infamous for being prone to high credit risks due to loan defaults by its poor borrowers. Conversely, the sector is also criticized for creating debt…
Abstract
Purpose
The microfinancing sector is infamous for being prone to high credit risks due to loan defaults by its poor borrowers. Conversely, the sector is also criticized for creating debt traps for the poor. The dual nature of these peculiar problems in microfinancing causes the market failure phenomenon. Therefore, the current study explores whether public policy intervention is required to address market failure.
Design/methodology/approach
The study undertakes a critical review of existing literature, the news, the policy documents and other publicly available information to shape the viewpoints in this study. Constructive criticism is used to build arguments to arrive at a conceptual framework that depicts how public policy should interact with markets to address the peculiar problems of the microfinancing sector.
Findings
The findings indicate that market failure in microfinancing is real and pressing. Therefore, public policy is invited, though in its limited form. While the policy intervention may help the formal microfinancing arena by regulating the interest rates, the policy administration in the informal sector is likely to fail. Therefore, the policy should attempt to create an environment of inclusiveness. Policies that rely on coercion are not recommended. In the long run, subsidies via policy intervention are discouraged. Instead, the policy should motivate the microfinancing sector to become self-reliant.
Originality/value
The study is one of its kind to provide perspectives on specific market failures and policy interventions in microfinancing, particularly in economies where formal and informal sectors coexist and are equally crucial.
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Jitendra Yadav, Kuldeep Singh, Nripendra P. Rana and Denis Dennehy
Social media has played a pivotal role in polarizing views on Russia–Ukraine conflict. The effects of polarization in online interactions have been extensively studied in many…
Abstract
Purpose
Social media has played a pivotal role in polarizing views on Russia–Ukraine conflict. The effects of polarization in online interactions have been extensively studied in many contexts. This research aims to examine how multiple social media sources may act as an integrator of information and act as a platform for depolarizing behaviors.
Design/methodology/approach
This study analyzes the communications of 6,662 tweets related to the sanctions imposed on Russia by using textual analytics and predictive modeling.
Findings
The research findings reveal that the tweeting behavior of netizens was depolarized because of information from multiple social media sources. However, the influx of information from non-organizational sources such as trending topics and discussions has a depolarizing impact on the user’s pre-established attitude.
Research limitations/implications
For policymakers, conflict mediators and observers, and members of society in general, there is a need for (1) continuous and consistent communication throughout the crisis, (2) transparency in the information being communicated and (3) public awareness of the polarized and conflicting information being provided from multiple actors that may be biased in the claims being made about the conflict crisis.
Originality/value
While previous research has examined Russia–Ukraine conflict from a variety of perspectives, this is the first study to examine how social media might be used to reduce attitude polarization during times of conflict.
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Environmental, social and governance (ESG) issues have become the cornerstone of investment decisions in firms today. With that, publicly traded ESG indices (like the BSE ESG 100…
Abstract
Purpose
Environmental, social and governance (ESG) issues have become the cornerstone of investment decisions in firms today. With that, publicly traded ESG indices (like the BSE ESG 100 index in India) have come into existence. The existing literature signifies that ESG generates financial implications and induces stability. The current study aims to test whether the firms listed on the ESG index (ESG-sensitive firms) face less financial distress than those not listed on such an index.
Design/methodology/approach
The study applies panel data difference-in-differences (DID) regression by considering ESG as an unstaggered treatment to 74 non-financial firms listed on India's Bombay Stock Exchanges (BSE) 100 index. In total, 42 firms are ESG treated as they got listed on the BSE ESG 100 index, formed in 2017. The remaining 32 firms form the control group. The confidence intervals and standard errors are estimated using clustered robust errors and the Donald and Lang method.
Findings
Listing on the ESG index matters for financial stability; differences in financial distress are significant on financial distress. ESG-sensitive firms face less financial distress than non-ESG firms (or firms not perceived as ESG-sensitive). The results are consistent across two financial distress measures, Altman z-scores for emerged and emerging markets. Thus, the DID in distress status between ESG-sensitive and non-ESG firms matter.
Practical implications
The study creates vibrant implications for practitioners using ESG to reduce financial distress.
Originality/value
The study is one of its kind to test the treatment effects of ESG on firm value and quantify treatment effects on financial distress.
Details
Keywords
Shailesh Rastogi and Kuldeep Singh
Environment, social and governance (ESG) practices and shareholder activism are making significant strides in the decision-making policies and processes for all firms. This study…
Abstract
Purpose
Environment, social and governance (ESG) practices and shareholder activism are making significant strides in the decision-making policies and processes for all firms. This study aims to assess the impact of ESG on the dividend payout decisions of firms in India. In addition, it also aims to determine how shareholder activism influences the impact of ESG on dividend distribution decisions.
Design/methodology/approach
The authors gather relevant data from 78 non-financial listed Indian firms from 2016 to 2020. This study undertakes longitudinal data analysis, with fixed effects and calculation of robust standard errors. In addition, the slope test is used to examine the effects of the interaction between ESG and shareholder activism.
Findings
It is found in the study that not only does ESG positively impact the dividends but also shareholder activism positively impacts the dividend distribution decisions. Surprisingly, the authors see a significant but negative interaction impact of shareholder activism on the positive association of ESG with dividend distribution decisions. In other words, ESG impacts dividend distribution decisions differently at levels of shareholder activism. When shareholder activism is low, ESG positively influences dividend distribution decisions. However, when shareholder activism is high, ESG negatively influences dividend distribution decisions.
Practical implications
This result has significant implications for all the stakeholders, including shareholders. A shareholder expecting a dividend could decide correctly through the current study’s findings. In cases of high shareholder activism, investors may skip picking a stock if investors expect high ESG to influence the dividend distribution decisions favourably. On the contrary, investors may choose a stock if shareholder activism is low and all else remains the same.
Originality/value
Literature has some evidence of the influence of shareholder activism and ESG (in silos) on the dividend distribution decisions in the firms. This study attempts to contribute by bringing forth the interaction effects of shareholder activism and ESG on dividend distribution decisions.
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Shailesh Rastogi, Kuldeep Singh and Jagjeevan Kanoujiya
The study intends to determine the environment, social and governance (ESG)'s impact on the firm's value. In addition, how ownership concentration (OC) and transparency and…
Abstract
Purpose
The study intends to determine the environment, social and governance (ESG)'s impact on the firm's value. In addition, how ownership concentration (OC) and transparency and disclosures (TD) influence the impact of firm's ESG on its valuation (firm value).
Design/methodology/approach
The relevant panel data with a sample of 78 Indian firms for five years (2016–2020) are gathered. Both linear and nonlinear connections of firm's ESG with its value are tested. In addition, TD and two components of OC (stakes of promoters and institutional investors) are empirically tested as moderators on the connectivity of the firm's ESG with its value.
Findings
The linear association of firm's ESG with its value is found insignificant. ESG is found to have a positive and nonlinear (U-shaped) impact on the value of the firms. TD does not moderate the connectivity of firm's ESG with its valuation (firm value). The higher stakes of promoters positively affect the association of firm's ESG with the valuation. However, the high stakes of institutional investors retard the ESG's influence on the firm value.
Research limitations/implications
The study is on Indian firms for five years. A sample of more than one nation and a longer duration (10 years) could have helped better determine the associations among the variables. In turn, these limitations can be the present study's future scope. In addition, the authors find a lack of standardisation of the ESG scales, which is a problem in measuring it. Using standardisation scales of ESG for the analysis can also be future scope on the topic.
Practical implications
The investors would be wary of the level of ESG to influence the firms' value positively. Managers also need to be careful to have sincere efforts for ESG to reap its rich dividends. Policymakers may take cognisance that despite having board seats (in a few cases), institutional investors negatively (instead of positively as expected) influences the ESG's association with the firm's value. They may bring some guidelines or legislative changes to fix responsibility on the part of the institutional investors.
Originality/value
No study reports the linear and nonlinear association of ESG on the firm's value to observe clearer connectivity between the two. Similarly, no study is observed to have promoters and institutional investors as moderators on the association of firm's ESG with the valuation (firm value). Hence, the present study considerably augments the extant literature on the topic and its contribution.
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