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Article
Publication date: 1 March 2013

Santanu K. Ganguli

Based on the agency theory, the purpose of this paper is to theoretically argue and empirically investigate how ownership structure impacts the capital structure of the…

Abstract

Purpose

Based on the agency theory, the purpose of this paper is to theoretically argue and empirically investigate how ownership structure impacts the capital structure of the listed mid‐cap companies in India and whether the capital structure as exogenous variable has a role in determining ownership structure as well.

Design/methodology/approach

Simultaneity between capital structure and ownership structure is checked through Hausman specification test on endogeneity. Fixed effect panel regression model is used to analyze five years of data (2005‐2009) on the sample units, to find the relation between leverage and ownership structure after controlling for profitability, risk, tangibility, growth and size.

Findings

Empirical results on Indian firms suggest that the ownership structure does impact capital structure but not the vice versa. Consistent with theoretical prediction empirical results reveal that the leverage is positively related to concentrated shareholding and has a negative relation with diffuseness of shareholding after controlling for profitability, risk, tangibility, growth and size. The findings are consistent with “managerial entrenchment hypothesis” and “pecking order theory” of capital structure.

Practical implications

The findings of the paper will enable the practitioners and analysts to understand as to why, in the bank and financial institution‐dominated debt financing system in India, leverage is closely associated with concentrated ownership pattern and why retained earning is a preferred vehicle of financing for the firms with diffused shareholding.

Originality/value

The results of the study enrich the literature on capital structure, agency cost and corporate governance issues in several ways.

Details

Studies in Economics and Finance, vol. 30 no. 1
Type: Research Article
ISSN: 1086-7376

Keywords

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Article
Publication date: 29 July 2014

Debabrata Datta and Santanu K. Ganguli

The purpose of this paper is to verify existence of political connection of firms in India. For this purpose the paper first presents a theoretical model and then tests…

Abstract

Purpose

The purpose of this paper is to verify existence of political connection of firms in India. For this purpose the paper first presents a theoretical model and then tests empirically the movement of stock prices during two state elections in India.

Design/methodology/approach

The methodology is theoretical modelling where the paper applies the standard Cournot model of oligopoly. The paper then applies correlation and Wilcoxon Paired Rank Sum test to verify the results of the theoretical model by using data from the Indian stock market during the election results.

Findings

The theoretical result states that some firms opt for political connection and some remain independent in an oligopoly. It also shows that political connection affects stock price. The empirical results find out that divergent responses of stock prices to the election results can be linked to politically connection.

Research limitations/implications

The theoretical model is a simple two firm model and not generalized to n number of firms. The empirical test considers only two state elections and applies simple statistical test. The study is restricted to one country only.

Practical implications

The paper has practical implications for stock market. It has implications for corporate governance and for political governance. This is important since political connection of firms has emerged as an important issue in India.

Social implications

The paper is important as it addresses the issue of political connection of firms, which have ramifications for social equilibrium. In a democratic country like India any nexus between political party and firms may adversely affect not only corporate governance but also political governance.

Originality/value

This paper looks at political connectedness theoretically in a federal structure, an issue not addressed so far in the literature. Second it considers not so discussed topic of market perception of political connection in India. The originality of the paper is that it presents a theory and also verifies the theoretical results with empirical test.

Details

South Asian Journal of Global Business Research, vol. 3 no. 2
Type: Research Article
ISSN: 2045-4457

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Article
Publication date: 4 May 2021

Santanu Das and Ashish Kumar

The purpose of this study is to provide a new way to optimize a portfolio and to show that combining the Hurst exponent and wavelet analysis may help to increase portfolio returns.

Abstract

Purpose

The purpose of this study is to provide a new way to optimize a portfolio and to show that combining the Hurst exponent and wavelet analysis may help to increase portfolio returns.

Design/methodology/approach

The authors use the Hurst exponent and wavelet analysis to study the long-term dependencies between sovereign bonds and sectoral indices of India. The authors further construct and evaluate the performance of three portfolios constructed on the basis of Hurst standard deviation (SD) – global minimum variance (GMV), most diversified portfolio (MDP) and equal risk contribution (ERC).

Findings

The authors find that an ERC portfolio generates positive superior return as compared other two. Since our sample includes periods of two crisis – post-2007 financial crisis and the ongoing pandemic, this study reveals that combining government bond with equities and gold provides a higher returns when the portfolios are constructed using the risk exposures of each asset in the overall portfolio risk.

Practical implications

The findings provide guidance to portfolio managers by helping them to select assets using the Hurst approach and wavelet analysis thereby increasing the portfolio returns.

Originality/value

In this study, the authors use a combination of Hurst exponent and wavelet analysis to understand the long-term dependencies among various assets and provide a new methodology to optimize a portfolio. As far as the authors’ knowledge, no study in the past has attempted to provide a joint framework for portfolio optimization and therefore this study is the first to apply this methodology.

Details

Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 3 March 2021

Santanu Mandal and Ritesh Kumar Dubey

This study explored the role of inter-organizational systems (IOS) appropriation in the form of five key IOS usage-based capabilities, namely, IOS use for communication…

Abstract

Purpose

This study explored the role of inter-organizational systems (IOS) appropriation in the form of five key IOS usage-based capabilities, namely, IOS use for communication, intelligence, integration, collaboration and coordination in the development of tourism SC agility and resilience. Furthermore, the inter-relationship among these IOS usage-based capabilities were explored.

Design/methodology/approach

The study collected perceptual measures from hotel managers and tour managers having sufficient experience in the tourism sector. With 209 completed responses, the data were analyzed using partial least squares.

Findings

The study found IOS use of communication and intelligence as prominent enablers of IOS use for integration, collaboration and coordination. Furthermore, IOS use for integration, collaboration and coordination was found to have a prominent influence in the development of tourism SC agility and resilience. However, the influence of IOS use for communication on collaboration was not supported. Also, the impact of IOS use for collaboration in tourism resilience development was not supported.

Originality/value

The study is the foremost to explore the role of IOS appropriation in the development of dynamic capabilities like agility and resilience in tourism. Furthermore, the study also contributed to extant literature on IOS appropriation through suggesting two additional factors, namely, IOS use for collaboration and coordination to the existing IOS usage-based capabilities.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 18 September 2018

Santanu Mandal

Health-care supply chains must focus on efficient deployment of resources for ensuring optimal supply chain performance. With efficient supply chain (SC) performance…

Abstract

Purpose

Health-care supply chains must focus on efficient deployment of resources for ensuring optimal supply chain performance. With efficient supply chain (SC) performance, health-care entities would be able to address their patients’ requirements with great speed. This is the essence of health-care agility. Hence, the purpose of this paper is to focus on developing health-care agility through human capital, that is, innovative idea generation capabilities and specialised knowledge possessed by the firm employees. Because information technology (IT) capabilities play a dominant role in information exchange crucial to supply chain operations; the study considered the moderating role of three IT capabilities, viz. outside-in, spanning and inside-out IT capabilities on human capital and health-care SC performance association, and on health-care supply chain performance and health-care agility association.

Design/methodology/approach

Because the constructs used in the study mainly deals with issues specifically related to hospitals and their associated supply chains, the study collected perceptual responses from senior hospital managers. Perceptual responses were received through face-to-face interviews with 212 hospital managers working in different hospitals. The collected responses were analysed using confirmatory factor analysis and structural equation modelling.

Findings

Findings suggests positive influences of human capital on health-care SC performance and health-care agility. Furthermore, health-care SC performance was also found to result in enhanced health-care agility. The study further revealed positive moderation of outside-in, spanning and inside-out IT capabilities on human capital and health-care SC performance association and on health-care SC performance and health-care agility association.

Originality/value

The study addressed the importance of human capital in providing faster services to patients (i.e. agility) in health-care supply chains through improved SC performance. Furthermore, the study addressed the importance of different IT capabilities that enhance the importance of human capital in providing efficient and faster services through efficient SC performance.

Details

Journal of Business & Industrial Marketing, vol. 33 no. 7
Type: Research Article
ISSN: 0885-8624

Keywords

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