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Article
Publication date: 7 September 2015

S.K. Shanthi, Sanjoy Sircar and K. Srinivasa Reddy

298

Abstract

Details

International Journal of Commerce and Management, vol. 25 no. 3
Type: Research Article
ISSN: 1056-9219

Content available
Article
Publication date: 16 November 2015

Sanjoy Sircar, Rajat Agrawal, SK Shanthi and K. Srinivasa Reddy

386

Abstract

Details

Journal of Strategy and Management, vol. 8 no. 4
Type: Research Article
ISSN: 1755-425X

Content available

Abstract

Details

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

Article
Publication date: 16 November 2015

Naveen Kumar Srivastava

The financial crisis of 2008-2009 was truly global in nature that affected all sectors and countries of the world. Being considered that a board of directors is the main…

1034

Abstract

Purpose

The financial crisis of 2008-2009 was truly global in nature that affected all sectors and countries of the world. Being considered that a board of directors is the main governance mechanism through which a company is governed and managed. The purpose of this paper is to examine the effect of the governance structure of a company on its financial performance during the period of financial crisis.

Design/methodology/approach

The study investigates the effect of board structure parameters – board leadership, directors and board size on the financial performance for 164 non-financial listed firms in India during the period of financial crisis of 2008-2009.

Findings

The study finds a significant positive effect with Chief Executive Officer duality, executive chairperson and proportion of inside directors on the firm’s financial performance. Independent directors have no significant influence, while non-executive (grey) director’s being affiliated with the firm has a negative influence on firm’s financial performance. A larger board has a negative relationship with the firm’s financial performance.

Research limitations/implications

The study is limited to large non-financial firms of the Bombay Stock Exchange-200 index. The study may be extended to include other firms to generalize the findings.

Practical implications

Results imply that during the period of financial distress, a company having more inside (or management) directors with an executive chairperson are in a better position to manage company resources with positive impact on financial performance. Companies with larger boards may find it difficult to take quick decisions, which ultimately affect their performance.

Originality/value

The study is original in its idea of assessing company strategy to adopt a suitable governance structure that can sustain its performance during the period of financial crisis.

Details

Journal of Strategy and Management, vol. 8 no. 4
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 11 May 2015

Saibal Ghosh

This paper aims to examine the impact of macroprudential policies (MPPs) on credit growth. Towards this end, the author uses quarterly data on Indian commercial banks for…

Abstract

Purpose

This paper aims to examine the impact of macroprudential policies (MPPs) on credit growth. Towards this end, the author uses quarterly data on Indian commercial banks for the period 2002:1 to 2012:1 that subsume the imposition of MPPs.

Design/methodology/approach

The analysis uses the dynamic panel data (DPD) methodology to test the relevant hypotheses regarding the interlinkage between credit growth, bank ownership and MPPs. The DPD methodology has the advantage of being able to address the endogeneity between credit growth and macroprudential regulation.

Findings

The results appear to suggest that MPPs targeted on provisions are relatively more effective in limiting credit expansion. When considered in conjunction with bank ownership, they appear to have much more force in moderating the severity of the credit cycle.

Research limitations/implications

The lack of an extensive database on the relevant variables might hinder the robustness of the results. It is possible that MPPs are effective in curbing loan extension to targeted sectors, which cannot be adequately examined using aggregate loan data.

Practical implications

The role and usefulness of MPPs in limiting the build-up of risk has been widely discussed in recent times. Judged from that standpoint, the paper contributes to this literature by examining the issue for a leading emerging economy.

Originality/value

To the best of the author’s knowledge, this is one of the earliest studies to examine this issue in a systematic manner for India.

Details

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

Keywords

Article
Publication date: 7 September 2015

Daniel Kipkirong Tarus

– The purpose of this paper is to determine the effect of diaspora remittances on the banking sector development in Sub-Saharan Africa.

Abstract

Purpose

The purpose of this paper is to determine the effect of diaspora remittances on the banking sector development in Sub-Saharan Africa.

Design/methodology/approach

This study makes use of panel regression analysis and simultaneously uses pooled regression, fixed effects and random effects on a sample of 23 Sub-Saharan African countries during the period 1994-2009.

Findings

The empirical results confirm that diaspora remittances affect banking sector development in Sub-Saharan Africa. All the empirical models support this prediction. Similarly, it was also found that high inflation has a negative effect on banking sector development. Other notable findings are that well-developed human capital and political stability enhance the development of the banking sector.

Practical implications

The study provides insights into the role of diaspora remittances in banking sector development in Sub-Saharan Africa. It provides evidence that attracting diaspora remittances for emerging economies could as well help in mobilizing the much-needed loanable funds for private investment.

Originality/value

The paper fills an important gap in academic literature by providing insights into the role of diaspora remittances in developing the banking sector particularly in Sub-Saharan Africa. This study complements other studies focusing in Latin America and given the increasing migration of the Sub-Saharan African population in search of education and employment, this paper provides policy makers with evidence on the implications of remittances in developing the banking sector. It was also found that well-developed human capital and political stability promote the development of the banking sector.

Details

International Journal of Commerce and Management, vol. 25 no. 3
Type: Research Article
ISSN: 1056-9219

Keywords

Article
Publication date: 11 May 2015

Kenneth I Ajibo

This paper aims to argue that the Nigerian banking industry needs to adopt a risk-based regulation as a future regulatory model in the industry. The frequent distress and…

Abstract

Purpose

This paper aims to argue that the Nigerian banking industry needs to adopt a risk-based regulation as a future regulatory model in the industry. The frequent distress and failures in the industry have shown that reliance on recapitalisation and on credit rating information by the supervisors and investors to determine the health of the financial institutions is less than satisfactory. This is more so when agency ratings suffer accountability deficits.

Design/methodology/approach

This paper posits that while the regulation of the credit ratings is necessary for institutional accountability, it is never a substitute for oversight functions and due diligence exercise for both the supervisors and investors in the industry. This exploratory research paper is structured to cover the origin of banking regulation in Nigeria, the recapitalised efforts by the regulators, the problem with the agency ratings and why the future of Nigerian banking regulation should be risk-based.

Findings

This research paper posits that while reliance on recapitalisation strategy and agency rating publications is relevant in banks, the future of Nigerian banking regulation should be risk-based.

Originality/value

The Nigerian banking industry should develop effective risk-management structures in line with the international regulatory framework.

Details

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

Keywords

Article
Publication date: 16 November 2015

Rozeia Mustafa

The paper provides a holistic overview of already available academic literature of mobile banking, business model innovation and ecosystem and activity system perspective…

1812

Abstract

Purpose

The paper provides a holistic overview of already available academic literature of mobile banking, business model innovation and ecosystem and activity system perspective of business model concepts. The purpose of this conceptual paper is to initiate a debate for future research in the agenda highlighted in this paper.

Design/methodology/approach

In this paper, mobile banking business ecosystem of Easypaisa is used as an illustrative case to understand mobile banking business model innovation in the context of business ecosystem and activity system perspective.

Findings

Based on Porter’s view of mobile financial service (MFS) industry, it is suggested that patterns of business model innovation can be explained through business ecosystem and activity system. The notion of business model innovation can also be explained through integrated value chain of mobile network operator and its partners in the supply chain of MFS.

Research limitations/implications

This paper provides preliminary overview of the exiting academic literature on business model innovations, business ecosystem and activity system in the in the context of value network. Since this is only a literature review paper, therefore, no primary data have been collected for this case study through interviewing from the relevant people.

Originality/value

So far, no research has been conducted in Pakistan to address business model innovation in mobile banking sector in the context of business ecosystem and activity system perspective.

Details

Journal of Strategy and Management, vol. 8 no. 4
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 7 September 2015

Avik Sinha

The purpose of this paper is to try to formulate a conceptual model for service-oriented export pricing by looking at both demand- and supply-side considerations by taking…

Abstract

Purpose

The purpose of this paper is to try to formulate a conceptual model for service-oriented export pricing by looking at both demand- and supply-side considerations by taking export price as a function of domestic price of service.

Design/methodology/approach

Continuous time optimization technique has been adopted for maximization of the profit earned by firms in the domestic and foreign market for both demand- and supply-side scenarios. Dynamic simulations have also been carried out to find out the sensitivity of parameters in diverse scenarios.

Findings

Different results have been received for demand and supply sides for export price optimization. Various pricing objectives have been aligned to the price determining parameters in accordance with the dynamic simulation performances.

Research limitations/implications

Continuous time optimization served our purpose, as sustainability of the same decision over a longer period was not considered. However, discrete time optimization can be taken up, if the effect of a series of decisions is scrutinized. More flexibility can be incorporated in the model, if a range of domestic price is considered over the singular domestic price.

Practical implications

This paper is significant for those firms, which are willing to extend their operations beyond the national boundary. The models derived here can give them an idea about how to price service in foreign market.

Originality/value

Aligning pricing objectives with export price determining parameters by considering demand and supply side perspectives in a continuous time optimization model is a new contribution in the existing literature.

Details

International Journal of Commerce and Management, vol. 25 no. 3
Type: Research Article
ISSN: 1056-9219

Keywords

Article
Publication date: 7 September 2015

Rudra P. Pradhan, Mak B. Arvin and Neville R. Norman

The purpose of this paper is motivated by research-based assertions that: the causes of economic growth in countries like India are not well understood; they are not…

Abstract

Purpose

The purpose of this paper is motivated by research-based assertions that: the causes of economic growth in countries like India are not well understood; they are not elucidated by using simple bivariate relationships between economic growth and other variables, taken one at a time; and dynamic linkages between growth, trade openness and financial sector depth are required for any comprehensive treatment of this inquiry.

Design/methodology/approach

This paper investigates the pivotal role of financial depth (defined as the relative importance in the economy of the banking sector or the stock market) and whether it bears any evidential relationship to trade openness and economic growth during the era of Indian post-globalization since 1990. Two key objectives are to uncover whether there is a long-run relationship between the variables and whether they can be said to cause one another. Autoregressive distributive lag (ARDL) bounds testing procedures and vector autoregressive error correction model (VECM) approaches were used to derive the results.

Findings

This paper affirms that the variables are indeed formally cointegrated. It was also found that trade openness, economic growth and financial sector depth Granger-cause each other.

Practical implications

This paper demonstrates that greater trade openness can predictably accelerate India’s economic growth. If policymakers wish to maintain sustainable economic growth in India, they can do so by encouraging both freer trade and financial market development in the long run.

Originality/value

No investigation of this type and sophistication has hitherto been performed for India. The methods developed for this study can also be applied to any of the vast range of countries for which dynamic growth-openness-financial depth interactions have not already been investigated.

Details

International Journal of Commerce and Management, vol. 25 no. 3
Type: Research Article
ISSN: 1056-9219

Keywords

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