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The authors study the effect of an exogenous shock in the form of Coronavirus lockdowns on individual default and on default contagion within the microfinance (MF) sector in India. The authors rely on proprietary data obtained from an MF institution for the period from Nov 2019 to Dec 2020. The authors show that default increased to 95.29% in the month of April 2020, when Covid lockdowns were fully in place. However, borrowers bounced back thereafter, either making full or partial payments, so that defaults had fallen to 5.92% by December 2020. Static features of the group lending model like peer monitoring and joint liability help explain 90% of the monthly deficit during Covid lockdowns among uneducated borrowers. Dynamic features such as contingent renewal help explain why defaults were cured quickly through timely repayments. Finally, there is an absence of default contagion at the district level. Indeed, lagged own default explains 96.6% of variation in individual default, rather than contagion through group, village or district-level defaults. The authors conclude that the MF sector is resilient to exogenous shocks like the pandemic.

The authors use time series panel regressions, as well as cross-sectional regressions.

The authors find that borrower defaults increased significantly to 95.29% during the month of April 2020, when Covid lockdowns were fully in place. However, borrowers bounced back almost immediately, either making full or partial payments, such that defaults had fallen to 5.92% by December 2020. The group lending model does remarkably well in explaining defaults even during Covid lockdowns. Among the majority (92%) of borrowers who are residents of rural districts, the group lending model appears to blunt the impact of the exogenous shock on rates of default. Indeed, panel regressions demonstrate that the group lending model helps explain 90% of the monthly deficit among uneducated borrowers. Logistic regressions indicate that the group lending model is less persuasive among relatively affluent borrowers residing in semi-urban or urban areas who have some formal schooling. Contingent renewal is shown to be an effective disciplining mechanism when a group does default due to the Covid lockdowns. The authors find that groups who defaulted in April 2020 but repaid the outstanding balance within the next two months were more likely to receive subsequent loans from the lender. On the other hand, groups who defaulted in April 2020 and did not repay the outstanding balance until December 2020 did not receive follow-on financing. Finally, the authors find that lagged individual default is the primary source of individual default, rather than contagion through group, village or district-level defaults.

The limitation of the study is that it is confined to a single MF institution in India.

The authors conclude that the social capital that is the foundation of the group lending model succeeds in limiting both the risk and contagion of default from an exogenous shock, such as the Covid pandemic.

To the best of the authors’ knowledge, the authors are the first to examine defaults in the Indian MF sector during the Covid lockdowns in April 2020.

A pronounced rise in postpandemic immigration is creating consumption opportunities and challenges for countries worldwide. Past research has shown that immigrant homeownership indicates advanced consumer acculturation. However, critical factors which differentiate immigrant decisions to purchase a home remain underexplored. This study aims to examine the importance of different identity resources in determining homeownership gaps between immigrant groups in Spain during a dynamic decade.

A mixed methods research design with triangulation was used. First, the critical “historical research method” is used to empirically assess 15,465 household-level microdata files from the National Immigrant Survey of Spain. Second, the analysis is corroborated through informant interviews, an evaluation of digital news archives and other historical traces such as relevant advertisements in Spain from 2000 to 2009.

Results provided an account of immigrant homeownership whereby foreign-born consumers leveraged resources to promote social identities aligned with an advanced level of acculturation through housing investment during this period. Furthermore, marketing focused on specific targets of ethnic minority consumers coupled with government policies to promote immigrant homeownership reinforced the “Spanish Dream” as a new paradigm for housing market integration.

Spain provides an unprecedented historical context to explain marketing-related phenomena due to a perfect storm of immigration, job availability and integration supports. Contrary to popular wisdom, immigrant consumer homeownership gaps are not solely a result of differences in income and economic mobility, but rather an advanced acculturation outcome driven by personal and social investments in resources that lead to consumer identities.

We call the attention of management scholars to the methodological traps inherent to data collected using self-reported emotional experience in the context of integration after mergers and acquisitions (M&A). In a systematic review, we identified 15 peer-reviewed empirical articles where authors discuss the impact of emotions in post-merger situations based on interview data. We found that the authors of 12 studies appear to have been unaware of the problems of the interview method or implicitly accepted the inherent and unavoidable distortions and biases of self-reported emotions over time. We argue that these distortions and biases represent threats to data validity and reliability. In support of this position, we cite literature suggesting it is difficult for researchers to reconstruct emotions experienced based on interviews conducted a few weeks after the events, so results based on this method may not be valid. The authors of these articles all relied on data collected several months or years after M&A integration events. Then, they sought to assess the impact of emotions at the time of the integration process. As a consequence, conclusions based on these data may be unreliable. We conclude with recommendations for overcoming this potential source of invalid data in post-merger integration (PMI) studies.

This study aims to examine the connection between political culture and public sector corruption, using the typology of Daniel Elazar, whose model traces the types of political cultures to their origins in various regions of England. Similarly, the “resource curse” concept, generally treated as a national-level phenomenon, is examined to assess how it might vary among jurisdictions within a country.

Regression analysis was applied to data from the 50 states of the US. Public sector corruption in each state was operationalized as the number of convictions by the Public Integrity Section of the US Department of Justice in relation to the number of public sector employees in that state.

Among the 50 states of the US, support was found for the association between political culture and public sector corruption. On the other hand, whether a state’s economy was dominated by natural resource extraction was not related to public sector corruption. This latter finding suggests the “resource curse” phenomenon does not cause corruption to be worse in states with resource-dependent economies.

Although it is appropriate to apply regression analysis to a data set of the 50 US states, the small size of the data set limited the number of predictor variables that could be examined. Alternative research approaches are discussed, and it is conceivable that another analytical technique might have revealed other predictors that affect the occurrence of corruption.

While numerous studies have examined the impact of political culture and resource orientation on corruption at the national level, the current study examines how these variables affect corruption at the level of subnational jurisdictions within a major developed country, the United States.

A critical factor to the success of IPOs is investor demand, which can be observed from the IPO subscription pattern. Therefore, the objective of this study is to review the studies on the demand of IPOs, including empirical and theoretical literature, due to the substantial growth of IPOs over the last two decades.

This study extracted secondary data regarding IPO demand published from 1988 to 2022 from the Scopus database. We conducted a meta-literature review for qualitative and quantitative methods on the resulting 284 articles using citation analysis (Harzing’s Publish or Perish and VOS viewer software) and content analysis.

The findings revealed significant elements of the literature, including countries, institutions, journals, authors, articles and topics. Based on the IPO literature review and analyses, this paper developed future research questions to facilitate an extension of the research. Additionally, this paper developed a dual perspective of the present state of IPO research. First, it asserts that the demand for IPOs is not limited to certain countries, jurisdictions or vintages. Second, there are very few studies on demand for IPOs available despite IPOs’ economic worth.

To the best of the authors’ knowledge, this is the first study of its kind to present an empirical evaluation of demand for IPOs using inclusive mapping.

The effects of board composition on performance have long been discussed in management research using fractionalization measures. In this study, we propose an alternative measurement approach based on board polarization.

Using an exploratory analysis and applying the polarization measure to German Deutscher Aktienindex (DAX)-, Midcap-DAX (MDAX)- and Small Cap-Index (SDAX)-listed companies, this paper applies the polarization index to examine the relationship between board diversity and performance.

The results show that the polarization concept is well suited to measure principal-agent problems between the members of the management and supervisory boards. We reveal that board polarization is negatively associated with firm performance, as measured by return on investment (ROI).

This exploratory study shows that the measurement of board polarization can be linked to performance differences between companies, which offers promising starting points for further research.

The primary objective of this chapter is to synthesize and organize prevailing theoretical perspectives on metacognition into a framework that can enhance understanding of metacognitive phenomena, with the aim of stimulating future research in the field of organizational behavior and human resources management (OBHRM). The author starts with a review of the history of metacognition research, distinguishing it from related theoretical constructs such as cognition, executive function, and self-regulation. Following this, the author outlines five constituent elements of metacognition – metacognitive knowledge, metacognitive experiences, metacognitive monitoring, a dynamic mental model, and metacognitive control – with discussions on their interrelationships and respective functions. Two approaches to metacognition, a process approach and an individual-difference approach, are then presented, summarizing key questions and findings from each. Finally, three broad directions for future research in OBHRM are proposed: examining metacognitive processes, considering mechanisms beyond learning to explain the effects of metacognition, and exploring both domain-specific and general metacognitive knowledge and skills. The implications of these research directions for personnel and human resources management practices are discussed.