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Case study

Rajesh Panda, Pooja Gupta and Madhvi Sethi

The case discussion begins with an understanding of Davis’s three-circle model. It then leads toward the key resources and challenges, by system and development stage as…

Abstract

Theoretical basis

The case discussion begins with an understanding of Davis’s three-circle model. It then leads toward the key resources and challenges, by system and development stage as given by Gersick et al. (1997). After understanding the family business system, the case delves into making the students understand the circumplex model of the marital and family system. This matrix talks about the flexibility in the business structure along with cohesion in the family unit. The case then gets into the discussion about succession and the new generation joining the family business and the conflicts that may arise due to the same. It might be imperative to bring out the different forms of conflict that may arise in the family and business system. Researchers have identified three forms of conflict – task, process and relationship (Mckee, Madden, Kellermans and Eddleston, 2014). As passing the baton would take place next for this business in the case, the current generation needs to look at the future growth strategy for the business. Here, the discussion refers to the exploitation and exploration matrix given by Bergfeld and Weber (2011).

Research methodology

This is a primary data case. The data has been collected from SK Enterprises. Interviews were conducted to arrive at the issues and challenges discussed in the case.

Case overview/synopsis

This case talks about the dilemma of a first-generation entrepreneur. Jatinder Agarwal was the owner of SK Enterprises, a light-engineering firm manufacturing bright bars, engine parts and ceiling fan shafts. He had set up the business in 1984. His brother, Ramesh was helping him in the business. The business had prospered and grown from a single product manufacturing workshop in 1984 to two factories manufacturing multiple light engineering products. In 2015, the business was doing well and both Jatinder and Ramesh were excited to involve their respective sons, Pranav and Sanidh in the business after completion of their education. The case is about the challenges faced by Jatinder and Ramesh with the entry of a new generation. Jatinder and Ramesh were working in the family business with an implied structure where the business was a sole proprietorship in the name of Jatinder but the decisions were taken by both the brothers collectively. With the entry of the new generation, Jatinder had to decide how to re-organize the business and avoid conflicts in the family. He also had to take a decision regarding the future course of strategy, which would help the business grow further.

Complexity academic level

This case is about the dilemmas faced by a first-generation entrepreneur. The case can be taught in an “entrepreneurship” course, in a post-graduate MBA program. This case can also be taught in a family business program as part of the course on “Understanding Family Business – Managing Paradoxes” or “Building Lasting Family Business – Synergy in Vision, Values and Strategy.” This case can also be taught as part of a “business strategy” or “human resource management” in MBA or executive MBA program in the first year.

Details

The CASE Journal, vol. 16 no. 3
Type: Case Study
ISSN: 1544-9106

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Article

Nisha Prakash and Madhvi Sethi

Advancing the economies in Asia toward meeting sustainable development goals (SDGs) needs an unprecedented investment in people, processes and the planet. The…

Abstract

Purpose

Advancing the economies in Asia toward meeting sustainable development goals (SDGs) needs an unprecedented investment in people, processes and the planet. The participation of the private sector is necessary to bridge the financing gap to attain this objective. Engaging the private sector can contribute significantly to attaining the 2030 agenda for SD. However, the financial markets in Asian economies are yet to realize this potential. In this context, this paper aims to discuss the state of finance for SD in Asia and identifies innovative financial instruments for attracting private investments for SDs in these economies.

Design/methodology/approach

This study relies on published articles, reports and policy documents on financing mechanisms for SD. The literature review covered journal data sources, reports from global institutions such as the UN, World Bank, International Monetary Fund and think-tanks operating in the field of climate change policies. Though the topic was specific to financial market instruments, a broader search was conducted to understand the different sources of sustainable finance available, particularly in Asia.

Findings

The investments that are required for meeting the SDGs remain underfunded. Though interest in sustainability is growing in the Asian economies, the financial markets are yet to transition to tap the growing interest in sustainable investing among global investors. This paper concludes that to raise capital from private investors the Asian economies should ensure information availability, reduce distortions and unblock regulatory obstacles. It would also need designing policies and introducing blended financing instruments combining private and public funds.

Research limitations/implications

Though the study has grouped Asian economies, the financing strategy for SDGs should be developed at the country-level considering the domestic financial markets, local developmental stage, fiscal capacity and nationally determined contributions. Further research can focus on developing country-specific strategies for using innovative financial instruments.

Originality/value

Mobilizing funds for implementing the 2030 Agenda for SD is a major challenge for Asian economies. The paper is addressed to national policymakers in Asian economies for developing strategies to raise capital for SD through private participation. It provides opportunities for revisiting national approaches to sustainable finance in these economies.

Details

International Journal of Innovation Science, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-2223

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Article

Madhvi Sethi and Dipali Krishnakumar

Non-performing assets (NPAs) have been a cause of concern for the banking sector across the world and have invited a lot research interest, especially for emerging…

Abstract

Purpose

Non-performing assets (NPAs) have been a cause of concern for the banking sector across the world and have invited a lot research interest, especially for emerging economies. In India, the NPAs grew many folds and reached alarming levels in 2013. The available mechanisms, such as Corporate Debt Restructuring Scheme, were not adequate to address this issue. The Central Reserve Bank of India with the Government of India introduced various guidelines, schemes and regulations like framework for revitalizing distressed assets to tackle NPAs during the period 2013-2017. Taking the case of India, the purpose of this paper is to examine policy initiatives and analyse the impact of regulatory shocks on the equity market returns and the systematic risk of individual banking stocks using an extended version of the market model.

Design/methodology/approach

In this study, the authors design the experiment to explore the reaction of banking stocks to the various regulatory measures and also measure the change in systematic risk for these stocks as a result of the regulatory changes. Following the approach suggested by Soraokina and Thornton (2015), the authors use the extended market model to test the reaction of banking company stocks to the regulatory measures.

Findings

The study finds that banking stocks did not earn significant abnormal returns on the announcement of these measures. However, the systematic risk of the banking index reduced significantly on the introduction of regulatory measures, and this risk reduction has been primarily in the stocks of private sector banks.

Research limitations/implications

This paper provides insights on the equity market's short-term reaction to the reform initiatives introduced by the government. The scope of the paper is with respect to one emerging economy, India, which underwent a series of regulatory reforms to tackle the banking NPA problem.

Originality/value

The paper fills an important research gap where the impact of schemes and regulations is captured for an emerging economy like India. It tries to bring forth the importance of these reforms and how an investor perceives the same. This paper tests for changes in systematic risk as measured by market beta as well as measures cumulative abnormal returns associated with important events in the process of regulatory reforms happening in India from 2013 to 2017.

Details

Journal of Financial Regulation and Compliance, vol. 28 no. 3
Type: Research Article
ISSN: 1358-1988

Keywords

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Book part

Madhvi Sethi, Pooja Gupta, Shubhadeep Mukherjee and Siddhi Agrawal

Behavioral finance literature has long claimed that internet stock message boards can move markets. In this chapter, the authors study more than 2,000 internet board…

Abstract

Behavioral finance literature has long claimed that internet stock message boards can move markets. In this chapter, the authors study more than 2,000 internet board messages posted across finance message boards in India (Chittorgarh, etc.) for 110 companies that went for initial public offering (IPO) in the last one year. This study has multi-fold objectives. First, the authors try to identify the factors which lead to a discussion on an IPO stock in the message board. Second, the authors identify the factors which differentiate a widely discussed stock from the less discussed one. Next, the authors apply advanced machine learning technique to identify the topics which are discussed in the message board through automatic topic modeling. The methodology used includes a logistic regression model for identifying firm characteristics which leads to a probability of getting stakeholders’ attention and hence more discussion. The authors also use advanced topic modeling techniques to identify topics of discussion on the message boards through machine learning. The authors find that larger sized firms, younger firms, firms with low leverage, and non-manufacturing firms get discussed more and the topics of discussion relate to their financial statements, trading strategies, stock behavior, and performance.

Details

Financial Issues in Emerging Economies: Special Issue Including Selected Papers from II International Conference on Economics and Finance, 2019, Bengaluru, India
Type: Book
ISBN: 978-1-83867-960-6

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Abstract

Details

Financial Issues in Emerging Economies: Special Issue Including Selected Papers from II International Conference on Economics and Finance, 2019, Bengaluru, India
Type: Book
ISBN: 978-1-83867-960-6

Abstract

Details

International Journal of Law and Management, vol. 57 no. 3
Type: Research Article
ISSN: 1754-243X

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Abstract

Details

The CASE Journal, vol. 16 no. 3
Type: Case Study
ISSN: 1544-9106

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