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Article
Publication date: 14 June 2024

Shailesh Rastogi and Jagjeevan Kanoujiya

The study aims to explore the impact of ownership concentration (OC) on bank financial distress (FD). Furthermore, the bank’s financial stability levels determine the association…

Abstract

Purpose

The study aims to explore the impact of ownership concentration (OC) on bank financial distress (FD). Furthermore, the bank’s financial stability levels determine the association between the two.

Design/methodology/approach

Bank data of 33 Indian commercial banks are procured for ten years (2013–2022). The panel data econometrics is applied for empirical estimations. The quantile regression approach is used to determine the association between OC and FD at different quantiles of the FD. Non-normalcy of the data is checked and ensured before applying the quantile regression.

Findings

Surprisingly, it is found that promoters have a nonlinear impact on the firm’s stability. The inverted U-shape result implies that as promoters cross a threshold level, the benefit of increasing promoters’ stake takes a beating and a further increase in promoters’ stakes adversely impacts the stability of the banks. Moreover, this threshold value increases while moving from low to high levels of stability in a quantile regression application.

Research limitations/implications

This study uses promoters as the proxy for OC. Other existing definitions of OC are not used in the study, which can further improve the robustness of the results. Additionally, the use of the type of ownership (private, public or foreign) is also not adopted in the present study. Both the limitations can be the study’s future scope on the topic.

Practical implications

The high OC is supposed to influence corporate governance adversely. Therefore, policymakers recommend low OC for better governance. However, the present study finds evidence that a higher OC (high threshold of OC as the stability increases) would be better for financial stability. This situation demands a trade-off between governance and financial stability regarding OC.

Originality/value

The authors do not observe any study having the nonlinear impact of OC on financial stability (opposite of FD). Moreover, the threshold of OC for the optimum level of financial stability increases as stability goes high. This evidence using quantile regression and finding the turning point using a quadratic equation is also not seen in the literature.

Details

Corporate Governance: The International Journal of Business in Society, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 14 April 2023

Shailesh Rastogi and Jagjeevan Kanoujiya

This study aims to determine the mutual association between the volatility of macroeconomic indicators (MIs) and India’s tourism demand.

Abstract

Purpose

This study aims to determine the mutual association between the volatility of macroeconomic indicators (MIs) and India’s tourism demand.

Design/methodology/approach

Bivariate generalized autoregressive conditional heteroscedasticity (GARCH) models are applied to estimate the volatility spillover effect (VSE) from one market to another. Compared to the other methods, bivariate GARCH has wide acceptance for estimating the VSE. The monthly MIs and tourism demand data (2012–2021) are gathered for empirical analysis.

Findings

The evidence of the growth-led tourism (GLT) demand is seen. In the short term, tourism-led growth (TLG) is indicated. However, this TLG does not sustain itself in the long run. There is significant evidence in favour of the VSE from the MIs to the tourism demand ensuring GLT in India.

Practical implications

The main implication of the current study is to ignore the short-term influence of tourism demand on the economy because it does not sustain itself in the long run. However, the long-term influence of macroeconomic indicators on tourism demand should be seen with caution. Hedging, if possible, may be considered to protect the tourism sector’s interests from adverse economic fallouts.

Originality/value

There is a lack of studies on the volatility (especially on the VSE) between MIs and tourism demand. Hence, this study fills the research gap and presents a novel and unique contribution to the extent of the knowledge body on the topic and significantly contributes.

设计/方法论/方法

双变量GARCH模型用于估计从一个市场到另一个市场的波动溢出效应(VSE)。与其他方法相比, 双变量GARCH在估计波动溢出效应时得到了广泛的接受。收集2012-2021年的月度管理信息系统和旅游需求数据进行实证分析。

目的

该研究旨在确定宏观经济指标(MIs)的波动与印度旅游需求之间的相互关系。

研究发现

GLT(增长主导的旅游需求)的证据显而易见。从短期来看, 旅游导向型增长(TLG)可行。然而, 这种旅游导向型增长并不能长期维持下去。有重要的证据支持印度管理信息系统到旅游导向型增长的旅游需求波动溢出效应。

实际意义

当前研究的主要启示是忽略了旅游需求对经济的短期影响, 因为从长远来看, 它无法自我维持。然而, 宏观经济指标对旅游需求的长期影响应谨慎看待。如有可能, 可考虑对冲, 以保护旅游业的利益不受不利的经济影响。

创意/价值

目前对管理信息需求与旅游需求之间的波动(尤其是波动溢出效应)的研究较少。因此, 本研究填补了这个研究空白, 并对该主题知识体系的内容呈现新颖而独特的促进作用, 有显著的贡献作用。

Diseño/metodología/enfoque

Los modelos GARCH bivariantes se aplican para estimar el efecto indirecto de la volatilidad (VSE) de un mercado a otro. En comparación con otros métodos, el GARCH bivariante goza de gran aceptación para estimar el VSE. Para el análisis empírico se recopilan los MI mensuales y los datos de demanda turística (2012–2021).

Objetivo

El estudio se centra en medir la relación mutua entre la volatilidad de los indicadores macroeconómicos (MI) y la demanda turística de la India.

Conclusiones

Se observan indicios de GLT (demanda turística impulsada por el crecimiento). A corto plazo, se evidencia el TLG (crecimiento impulsado por el turismo). Sin embargo, este TLG no se mantiene a largo plazo. Existen pruebas significativas a favor del VSE de los MI a la demanda turística que garantizan el GLT en India.

Implicaciones prácticas

La principal implicación del presente estudio es desestimar la influencia a corto plazo de la demanda turística en la economía porque no se sostiene a largo plazo. Sin embargo, la influencia a largo plazo de los indicadores macroeconómicos en la demanda turística debe considerarse con cautela. Por ello, la cobertura de riesgos puede plantearse para proteger los intereses del sector turístico de las repercusiones económicas adversas.

Originalidad/valor

Existe una carencia de estudios sobre la volatilidad (especialmente en el VSE) entre los MI y la demanda turística. En consecuencia, este estudio realiza una aportación investigadora mediante una contribución novedosa y única en la ampliación del conocimiento sobre el tema de análisis.

Article
Publication date: 14 January 2022

Shailesh Rastogi and Jagjeevan Kanoujiya

The main aim of the study is to explore the volatility spillover effect of cryptocurrencies (Bitcoin, Ethereum and Litecoin) on inflation volatility in India.

Abstract

Purpose

The main aim of the study is to explore the volatility spillover effect of cryptocurrencies (Bitcoin, Ethereum and Litecoin) on inflation volatility in India.

Design/methodology/approach

A popular tool, the Bivariate GARCH model (BEKK-GARCH), to study the volatility spillover effect, is applied in the study. Monthly data of cryptocurrencies and inflation (WPI and CPI indices) are gathered from 2015 to 2021.

Findings

Significant short-term responsiveness of volatility of cryptocurrencies on the inflation volatility is found. In addition to this, the significant volatility spillover effect from the cryptocurrencies to the inflation volatility is found.

Practical implications

The findings of the current paper can be of use for inflation management, target inflation policies and policies to contain the volatility of cryptocurrencies. The significance of the current paper is relevant as governments worldwide are officially recognizing cryptocurrencies and starting the process of launching their official virtual currency.

Originality/value

No other study is observed on the topic. Hence, the contribution and novelty of the findings of the current paper are very high and add value to the nonexistent literature on the topic. Lack of the number of inflation observations (data of CPI and WPI are available only in monthly frequency) crimps the model estimation. As the cryptocurrencies become old, more data points will be available by design, and such problems can be resolved, and better model estimation may be possible.

Details

Journal of Economic and Administrative Sciences, vol. 40 no. 2
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 5 May 2023

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.

Details

Social Responsibility Journal, vol. 19 no. 10
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 6 October 2021

Shailesh Rastogi, Adesh Doifode, Jagjeevan Kanoujiya and Satyendra Pratap Singh

Crude oil, gold and interest rates are some of the key indicators of the health of domestic as well as global economy. The purpose of the study is to find the shock volatility and…

Abstract

Purpose

Crude oil, gold and interest rates are some of the key indicators of the health of domestic as well as global economy. The purpose of the study is to find the shock volatility and price volatility effects of gold and crude oil market on interest rates in India.

Design/methodology/approach

This study finds the mutual and directional association of the volatility of gold, crude oil and interest rates in India. The bi-variate GARCH models (Diagonal VEC GARCH and BEKK GARCH) are applied on the sample data of gold price, crude oil price and yield (interest rate) gathered from November 30, 2015 to November 16, 2020 (weekly basis) to investigate the volatility association including the volatility spillover effect in the three markets.

Findings

The main findings of the study focus on having a long-term conditional correlation between gold and interest rates, but there is no evidence of volatility spillover from gold and crude oil on the interest rates. The findings of the study are of great importance especially to the policymakers, as they state that the fluctuations in prices of gold and crude oil do not adversely impact the interest rates in India. Therefore, the fluctuations in prices of gold and crude may generally impact the economy, but it has nothing to do with interest rate in particular. This implies that domestic and foreign investments in the country will not be affected by gold and crude oil that are largely driven by interest rates in the country.

Practical implications

Gold and crude oil are two very important commodities that have their importance not only for domestic affairs but also for international business. They veritably influence the economy including forex exchange for any nation. In addition to this, the researchers believe the findings will provide insights to policymakers, stakeholders and investors.

Originality/value

Gold and crude oil undoubtedly influence the exchange rates but their impact on the interest rates in an economy is not definite and remains ambiguous owing to the mixed findings of the studies. The lack of studies related to the impact of gold and crude oil on the interest rates, despite them being essentials for the health of any economy is the main motivation of this study. This study is novel as it investigates the volatility impact of crude oil and gold on interest rates and contributes to the existing literature with its findings.

Details

South Asian Journal of Business Studies, vol. 12 no. 3
Type: Research Article
ISSN: 2398-628X

Keywords

Article
Publication date: 28 June 2022

Venkata Mrudula Bhimavarapu, Shailesh Rastogi and Jagjeevan Kanoujiya

The disclosures in banks have become a matter of grave concern, especially post 2008 world financial crisis. The issue further gets exacerbated because disclosers in banks are…

Abstract

Purpose

The disclosures in banks have become a matter of grave concern, especially post 2008 world financial crisis. The issue further gets exacerbated because disclosers in banks are part of the III pillar of BASEL-II floated in 1999, and despite that, banks face challenges in this regard. Ownership concentration (OC) is a point of discussion because it may affect banks’ corporate governance and transparency and disclosures (T&D) issues. This study aims to determine how OC affects the transparency in the banks.

Design/methodology/approach

A T&D index is built into the study covering all the relevant contemporary issues regarding disclosures in banks. The panel data specification is used to find out the association of components of the OC on the T&D practices in the banks. Bank data of 34 banks are gathered for four years for the study.

Findings

It is found that except for retail investors, other classes of OC are not concerned with the disclosures in the banks even though substantial financial and non-financial interests are at stake concerning them. The study’s findings suggest framing policies and regulations considering the accountability of promoters and institutional investors for ensuring disclosures in banks.

Research limitations/implications

A few proxies to measure T&D found in the literature have not been used in the study. Similarly, the definition of promoter’s class of investors can be improved.

Originality/value

To the best of the authors’ knowledge, no other study builds T&D for banks and examines their impact because of the ownership classes (as used by the current study). This study is unique in this aspect.

Details

Corporate Governance: The International Journal of Business in Society, vol. 23 no. 1
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 26 May 2022

Geetanjali Pinto and Shailesh Rastogi

This study aims to evaluate the influence of corporate governance index (CGI), ownership concentration (OC) and other features on the dividends of listed Indian pharmaceutical…

Abstract

Purpose

This study aims to evaluate the influence of corporate governance index (CGI), ownership concentration (OC) and other features on the dividends of listed Indian pharmaceutical companies. The other features included are leverage, excess return over cost of equity and stock-market return. This study thus helps to provide more insights on the dividend distribution issues for a shareholder in the challenging and demanding pharma industry, especially when stakes are high.

Design/methodology/approach

The data for all 26 pharmaceutical companies which form part of the NSE NIFTY-500 index for six years (2014–2019) is procured using Centre for Monitoring Indian Economy’s (CMIEs) Prowess database. An eight-pointer scale (unweighted scale) is used to develop the CGI. For OC, this paper considers the proportion of promoters’ shareholding, domestic institutional investors’ shareholding and foreign owners’ shareholding. Both static and dynamic panel data models are used to evaluate the effect of CGI and OC on dividends.

Findings

The panel data analysis depicts that CGI significantly positively influences the dividends of pharmaceutical companies in India. Thus, the authors find support for La Porta et al.’s outcome agency model. The results also reveal that only promoters’ holdings are significantly inversely related to dividends out of the three OC variables used for this study. This discussion implies that family-run pharmaceutical companies in India tend to retain profits instead of distributing dividends.

Research limitations/implications

This study provides two direct insights for policymakers and stakeholders. First, because this study shows that CGI significantly positively influences dividends, corporate governance (CG) is an essential factor for determining dividends. Second, because the results also reveal that OC in the hands of promoters hurts dividends, it implies that the higher the promoter holding, lesser is the dividend distributed by the company. Both these results can be used as a quantitative tool by investors to assess Indian pharmaceutical companies better. However, a similar study could be directed to assess the impact of CGI and OC on dividends of other industries. Moreover, additional variables of CG and OC can also be evaluated in further detail. There is also a need to empirically validate the impact of CG and OC on a company’s performance.

Originality/value

The results are robust and reveal that variation in CGI does impact dividend policy. This aids in confirming that CG is a crucial aspect influencing dividends. The findings also add to the increasing studies across the globe evaluating the influence of CG and OC on dividends.

Details

Corporate Governance: The International Journal of Business in Society, vol. 22 no. 7
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 25 April 2023

Kuldeep Singh and Shailesh Rastogi

Public listing of small and medium enterprises (SMEs) stimulates unremitting transformations into their corporate governance (CG) practices. These transformations in CG are likely…

Abstract

Purpose

Public listing of small and medium enterprises (SMEs) stimulates unremitting transformations into their corporate governance (CG) practices. These transformations in CG are likely to impact the financial performance (FP). The current study examines how individual corporate CG mechanisms and their mutual interactions (configurational approach) stimulate the FP of listed SMEs. The study selects promoters’ ownership (PO), the board (B-INX) and information disclosures (DISC) as individual CG mechanisms. In addition, market competition (COMP) is considered a form of external governance/regulation.

Design/methodology/approach

The study uses five years of panel data (2018–2022) of 80 SMEs listed on the Bombay Stock Exchange’s (BSE) SME listing platform in India. Panel data fixed effects and cluster robust standard errors estimated. In addition to the impact of individual CG mechanisms, their mutual interactions (configurational approach) are tested using moderated hierarchical regression and confirmed by slope tests.

Findings

The results signify the ineffectiveness of individual CG mechanisms when acting in silos. However, their mutual interactions drive the FP. A hierarchy of results is obtained. PO is the dominant form of internal CG, negatively influencing the relevance of B-INX and DISC. B-INX tends to adhere to good governance by positively moderating the impact of DISC on FP. Lastly, COMP acts as external governance that dominates the ownership effects. Findings reveal that the interactions among individual CG mechanisms are essential to the FP of listed SMEs. Such interactions adjust the agency theory dynamics of CG in these firms.

Research limitations/implications

The study takes a holistic approach to investigate the agency theory dynamics via the mutual interactions among multiple CG forms. It highlights how the presence of a dominant form of CG can adjust the financial effect of others, thereby adjusting agency theory dynamics.

Practical implications

These results hold practical significance for SMEs in multiple ways. SMEs should embrace configurational approach to comprehend their agency dynamics. The configurational approach of CG mechanisms is the way forward for SMEs, which are known to be financially constrained. In other words, the fact that the resiliency of SMEs is very often questioned calls for the configurational approach, where different CG mechanisms coexist to drive FP.

Originality/value

The study is by far the first of its kind to investigate the CG of listed SMEs against the backdrop of the configurational approach. The findings will benefit industry practitioners, academics and regulatory bodies to visualize the governance practices through the lenses of configurational approach.

Details

Benchmarking: An International Journal, vol. 31 no. 4
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 8 September 2022

Shailesh Rastogi and Jagjeevan Kanoujiya

This study aims to analyze the volatility spillover effects of crude oil, gold price, interest rate (yield) and the exchange rate (USD (United States Dollar)/INR (Indian National…

Abstract

Purpose

This study aims to analyze the volatility spillover effects of crude oil, gold price, interest rate (yield) and the exchange rate (USD (United States Dollar)/INR (Indian National Rupee)) on inflation volatility in India.

Design/methodology/approach

This study uses the multivariate Generalized Autoregressive Conditional Heteroscedasticity (GARCH) models (Baba, Engle, Kraft and Kroner [BEKK]-GARCH and dynamic conditional correlation [DCC]-GARCH) to examine the volatility spillover effect of macroeconomic indicators and strategic commodities on inflation in India. The monthly data are collected from January 2000 till December 2020 for the crude oil price, gold price, interest rate (5-year Indian bond yield), exchange rate (USD/INR) and inflation (wholesale price index [WPI] and consumer price index [CPI]).

Findings

In BEKK-GARCH, the results reveal that crude oil price volatility has a long time spillover effect on inflation (WPI). Furthermore, no significant short-term volatility effect exists from crude oil market to inflation (WPI). However, the short-term volatility effect exists from crude oil to inflation while considering CPI as inflation. Gold price volatility has a bidirectional and negative spillover effect on inflation in the case of WPI. However, there is no price volatility spillover effect from gold to inflation in the case of CPI. The price volatility in the exchange rate also has a negative spillover effect on inflation (but only on CPI). Furthermore, volatility of interest rates has no spillover effect on inflation in WPI or CPI. In DCC-GARCH, a short-term volatility impact from all four macroeconomic indicators to inflation is found. Only crude oil and exchange rate have long-term volatility effect on inflation (CPI).

Practical implications

In an economy, inflation management is an essential task. The findings of the current study can be beneficial in this endeavor. The knowledge of the volatility spillover effect of all the four markets undertaken in the study can be significantly helpful in inflation management, especially for inflation-targeting policy.

Originality/value

It is observed that no other study has addressed this issue. We do not find any other research which studies the volatility spillover effect of gold, crude oil, interest rate and exchange rate on the inflation volatility. The current study is novel with a significant contribution to the vast knowledge in this context.

Details

South Asian Journal of Business Studies, vol. 13 no. 2
Type: Research Article
ISSN: 2398-628X

Keywords

Article
Publication date: 21 April 2020

Shailesh Rastogi and Arpita Sharma

A highly competitive market incentivizes private healthcare providers to deliver high quality services. The purpose of this paper is to identify the perceived expectations of a…

Abstract

Purpose

A highly competitive market incentivizes private healthcare providers to deliver high quality services. The purpose of this paper is to identify the perceived expectations of a new private multi-speciality hospital in a non-metro city. To this end, the paper develops a model using identified relevant factors.

Design/methodology/approach

A structured questionnaire was administered to 900 people. Exploratory factor analysis and confirmatory factor analysis were then applied to the data, and partial least square-structural equation modelling was used to test the moderated mediation model.

Findings

Word-of-mouth and safety (WM) and access to the hospital and the cost of medical services are found to be important factors for the perceived expectations of the hospitals by medical facility and treatment at a hospital. High quality medical facilities can lead to improved perceived expectations of hospitals, mediated by positive WM. Levels of access to the hospital and the cost of services can significantly moderate the perceived expectations of a hospital, despite good medical facilities.

Practical implications

The study has implications for policymakers and hospital authorities in the context of private sector multi-speciality hospitals in non-metro cities. It will help healthcare managers and service providers to better understand customer perceived expectations, and thereby develop effective strategies for customer service. Decision-makers are encouraged to focus on positive word-of-mouth and enhancement of customer safety to bring about favourable expectations of hospitals. Beyond merely having excellent medical facilities, hospitals that ensure ease of access to the hospital and keep costs low can achieve positive consumer expectations and satisfaction levels.

Originality/value

The paper makes three novel contributions as follows: the mere presence of high quality medical facilities and practices does not equate to positive expectations about the hospital among the patients; access to the hospital and the cost of its services are important in bringing about positive expectations among healthcare consumers; and WM can significantly moderate positive expectations of the hospital. The authors are not aware of any of these findings being previously reported.

Details

International Journal of Pharmaceutical and Healthcare Marketing, vol. 14 no. 2
Type: Research Article
ISSN: 1750-6123

Keywords

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