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1 – 10 of 23Iram Hasan, Shveta Singh and Smita Kashiramka
The coronavirus disease (COVID-19) has impacted all economies, businesses and societies. The purpose of this paper is to analyze and present a case for corporate social…
Abstract
Purpose
The coronavirus disease (COVID-19) has impacted all economies, businesses and societies. The purpose of this paper is to analyze and present a case for corporate social responsibility (CSR) in terms of its relevance amidst the turmoil caused by the pandemic.
Design/methodology/approach
The authors use a directed content analysis approach to retrieve relevant information from news articles using Thomson Reuters’ Eikon® and Bloomberg® databases. Based on stakeholder theory, the authors evaluate some of the CSR initiatives undertaken by organizations around the world. The authors then undertake a systematic literature review using the preferred reporting items for systematic reviews and meta-analyses standard to provide possible implications for organizations.
Findings
The findings suggest that in response to the pandemic, corporations from both developed and developing countries have been pursuing CSR measures for stakeholder engagement. The systematic literature review signals positive outcomes that companies might expect at the organizational level. The paper concludes by suggesting research propositions that indicate effective CSR at a time of crisis like COVID-19 encourages stakeholder partnerships and helps to gain a competitive advantage.
Originality/value
The authors present an overview of the CSR responses taken by firms globally in response to the pandemic by way of stakeholder engagement. The authors analyze the stakeholders targeted through such initiatives and report possible implications based on the extant literature. The findings of the study can be used to understand the various transitions that happen in an unprecedented situation like COVID-19 at all levels of business and society.
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Smita Kashiramka, Mahim Sagar, Amlendu Kumar Dubey, Amit Mehndiratta and Sushil Sushil
The purpose of this paper is to create a hierarchy of critical success factors affecting the higher technical education institutions, taking a case study of India. Using total…
Abstract
Purpose
The purpose of this paper is to create a hierarchy of critical success factors affecting the higher technical education institutions, taking a case study of India. Using total interpretive structural modeling (TISM), the paper attempts to establish the inter-linkages among ten critical success factors for enhancing the performance of these institutions.
Design/methodology/approach
The paper employs Total Interpretive Structural Modeling (TISM) to understand the hierarchy of the factors and their interplay using response from 18 experts in the domain.
Findings
The findings reveal that autonomy and accountability coupled with availability of sustainable funds are the driving factors for the success of the institutions. Infrastructural facilities and establishment of centers of excellence act as amplification factors. Introduction of new programs and their accreditation, improvement in faculty quality, research output and improvement in performance of academically weak students emerge as process factors that drive the output factors, namely, academic performance and student placement.
Research limitations/implications
The major limitation of this study is the scope that was limited to 191 institutions, as mandated in the project.
Practical implications
This study has important implications for the institutions as well as the policy makers to channelize their focus and efforts on driving and amplification factors that would ultimately lead to enhanced performance of the next generation higher technical education institutions.
Originality/value
This paper is a part of pan India project carried out to assess the performance of higher technical education institutions in India.
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Manju Tripathi, Smita Kashiramka and P.K. Jain
“Paying for performance” has been the corporate mantra for ages, but finding the right performance benchmarks continues to be an enigma. Equally significant is the ongoing debate…
Abstract
Purpose
“Paying for performance” has been the corporate mantra for ages, but finding the right performance benchmarks continues to be an enigma. Equally significant is the ongoing debate on the superiority of economic value added (EVA) aligned executive incentive plans over traditional financial performance benchmarks to ensure optimal goal congruence between the corporate and the executive performances. Consequently, this paper aims to explore a plausible linkage between executive compensation and EVA for Indian corporates from a social constructivist perspective.
Design/methodology/approach
The study uses a mixed method approach where the quantitative analysis of responses from the survey of senior personnel/finance executives of Indian firms is complemented by the qualitative analysis of personal interviews to provide contextual depth to the quantitative data.
Findings
Based on the study, the researchers construct an understanding that EVA is a superior concept but has restricted utility primarily owing to its computational complexity and unaudited characteristics. The researchers’ interpretive inference finds mandatory disclosure of an audited EVA figure in the corporate financial statements as a prime requirement for EVA to emerge as an objective and visible performance measure.
Practical implications
Attention of policymakers is sought towards standardising its computation and ensuring its disclosure to bring it at par with the conventional executive financial performance benchmarks.
Originality/value
The narrative on benefits and the challenges of adopting EVA aligned performance management system is provided directly by the top-level executives responsible for designing the “paying for performance” policies.
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Samta Jain, Smita Kashiramka and P.K. Jain
The purpose of the study is to gain insights into the post-acquisition integration practices of Indian multinational companies involved in cross-border acquisitions.
Abstract
Purpose
The purpose of the study is to gain insights into the post-acquisition integration practices of Indian multinational companies involved in cross-border acquisitions.
Design/methodology/approach
The study is based on the primary data from a sample of Indian companies engaged in cross-border acquisitions. A survey (based on a structured questionnaire) method has been used to collect the relevant data.
Findings
Majority of the sample companies have successfully managed the post-acquisition phase and realized the anticipated synergies. These companies recognize the importance of cultural integration, people/HR integration and formal communication channel during the post-acquisition phase. Despite the integration strategy being profoundly influenced by cultural differences between two companies, the emphasis on these cultural differences especially during the due-diligence stage is lacking. These aspects have not been examined adequately during the due-diligence phase.
Practical implications
Based on the findings, a model of cross-border acquisition and integration process (AIP) in the context of emerging economies has been proposed; the model is expected to be applicable across all industries and organizations, especially in emerging economies. The proposed model should essentially help senior and middle managers to develop successful integration strategies. Moreover, the study holds immense potential for practitioners and academicians by providing them with a new thought on executing successful acquisitions.
Originality/value
To the best of the authors’ knowledge, no study has examined the post-acquisition integration approach in emerging economies. Moreover, rarely has any AIP model applicable across several organizations of all sizes and types from emerging economies been suggested in the literature. The suggested AIP model is the unique proposition of the paper.
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Anjali Sain and Smita Kashiramka
This paper aims to investigate the impact of corporate governance mechanisms and the environmental, social and governance (ESG) disclosure score on bank performance and financial…
Abstract
Purpose
This paper aims to investigate the impact of corporate governance mechanisms and the environmental, social and governance (ESG) disclosure score on bank performance and financial stability. Further, this paper analyses how this relationship varies over the different ownership structures.
Design/methodology/approach
The paper uses a sample of 41 Indian banks (including both public sector and private sector banks) over the period ranging from 2008 to 2020. The data is analyzed in both static and dynamic frameworks using panel regression and system generalized methods of moments.
Findings
The results indicate that the frequency of board meetings has a negative influence on the performance of the banks. Gender diversity reveals both linear and non-linear relationships with bank performance. In the sample of public sector banks, the board size and promoters’ ownership have a significant negative effect on the bank's performance. In private sector banks, CEO duality adversely affects performance. Further, the results indicate that ESG disclosure score is positively linked with the profitability of banks.
Originality/value
This paper provides a comprehensive analysis of the impact of corporate governance mechanisms and ESG disclosure scores on bank performance and stability in the context of the Indian economy. To the best of the authors’ knowledge, there has been no empirical investigation or study that has been conducted in this respect.
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Samta Jain, Smita Kashiramka and P. K. Jain
The global economy has witnessed an exponential increase in cross-border acquisitions (CBAs) by emerging market companies (EMCs), demanding a relook at their internationalization…
Abstract
Purpose
The global economy has witnessed an exponential increase in cross-border acquisitions (CBAs) by emerging market companies (EMCs), demanding a relook at their internationalization strategy. The purpose of the study is to investigate whether the announcement of CBAs by EMCs creates value for the equity-holders of acquiring firms and identify factors affecting the valuation of acquiring companies.
Design/methodology/approach
The paper investigates the announcement impact of CBAs of CNX Nifty 500 Indian and SSE 380 Chinese companies. The event study analysis of 553 Indian and 125 Chinese acquisitions supports the contention that CBAs are indeed a strategic choice of EMCs for value creation.
Findings
CBAs generate positive and statistically significant abnormal returns for shareholders of both Indian and Chinese acquirers. The markets, however, differ in terms of their motivations; country-level factors have been observed to exert significant influence on the returns of Indian acquirers. Indian companies experience larger value creation on acquiring firms established in developed, institutionally closer and/or economically distant markets. The findings support the asset-seeking motive of Indian companies.
Originality/value
The research work contributes to the evolving stream of CBAs literature with a focus on the globalization strategies of EMCs. The present study is a modest attempt to lay the foundation for a new theoretical framework (asset-seeking perspective) of overseas acquisitions from emerging economies. The existing studies on emerging economies have emphasized, in isolation, either Indian CBAs or international acquisitions by Chinese firms. Being so, the study is unique and original in the sense that it is a comparative study of India and China.
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Noor Ulain Rizvi, Smita Kashiramka and Shveta Singh
This paper aims to develop a holistic understanding of the state of implementation of the Basel III regulation in India. It offers essential insights related to its impact on the…
Abstract
Purpose
This paper aims to develop a holistic understanding of the state of implementation of the Basel III regulation in India. It offers essential insights related to its impact on the macroeconomy, non-performing assets, capital flows and modifications required for the Indian banking sector. Another central aspect of this study is the identification of challenges faced by bankers in implementing Basel III in India.
Design/methodology/approach
A survey was conducted with the help of a well-structured close-ended questionnaire. It was based on six themes identified after a comprehensive review of the literature. Seven experts validated the construction of the questionnaire. A total of 18 responses (42.8%) were received.
Findings
The findings substantiate the importance of Basel III regulations. Although high costs and roadblocks are involved in its implementation, yet, the benefits are notable. Banking experts sense the necessity to modify the Tier 1 ratio, risk-weights and ratings. It is felt that credit ratings will impact the capital and investment flows received by India.
Research limitations/implications
The number of responses limits the ability to conduct several statistical tests.
Practical implications
The findings support the industry’s view that Basel III focuses more on industrialized countries and that many emerging countries lack the technology and infrastructure to implement it.
Originality/value
Since the implementation of Basel, the norm is a continuous process; the findings provide vital insights to regulators and academicians focusing on the Indian banking sector about its current state to aid in developing a future roadmap. This paper delivers important values as follows: a holistic view of banking experts on Basel III in India, required modifications, its impact and future scope of research in this area.
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Samta Jain, Smita Kashiramka and P.K. Jain
The purpose of this paper is to examine the impact of cross-border acquisitions (CBAs) on the financial and operating performance of acquiring firms from emerging economies in the…
Abstract
Purpose
The purpose of this paper is to examine the impact of cross-border acquisitions (CBAs) on the financial and operating performance of acquiring firms from emerging economies in the long-term; the acquiring firms have been segregated into frequent (multiple) and first-time (single) acquirers based on their prior cross-border experience. The intent is to identify if overseas activities bring over and above advantage to multiple acquirers in terms of enhanced financial synergies and reduced costs, motivating them to engage in sequential international transactions.
Design/methodology/approach
The paper analyses the impact of CBAs announced and completed during 2004–2013 by Indian companies listed on the NIFTY 500 index. The post-acquisition financial and operating performance of Indian cross-border acquirers has been compared with their pre-acquisition performance. The average performance over three-years immediately preceding the acquisition year constitutes the benchmark for the post-acquisition performance. The post-acquisition period includes a year of integration followed by three successive post-integration years. Therefore, in operational terms, the research period extends from 2001–2017. The long-term performance of frequent (multiple) and first-time (single) Indian acquirers has been investigated comprehensively using a set of 16 financial ratios. The performance has been assessed using the secondary data collected from financial statements of acquiring companies; the financial statements and the list of CBAs by Indian companies have been obtained from Thomson Reuter’s EIKON database.
Findings
The financial and operating performance of frequent as well as first-time acquirers have depicted a similarly deteriorating trend during the post-acquisition period. These findings indicate that the international expansion of Indian companies is not guided by synergy creation potential and may be pushed by the overconfidence or over-optimism and agency conflicts of managers. This, perhaps, indicates that firms are being imprudent in investing free cash flows available with them.
Originality/value
The study is the first of its kind. No study, to the best of the authors’ knowledge, has analysed the performance of acquiring firms by segregating them into frequent and first-time acquirers using accounting measures of performance. More so, an extensive analysis of the long-term financial and operating performance of acquiring companies is rare to come across in the extant literature.
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Jayant Kumar Bansal, Neeraj Sengar, Ali Zafar Ansari, Smita Kashiramka and Harish Chaudhry
This study aims to identify the strategic factors and their effects on the post-cross-border acquisitions (CBA) technological innovation performance of the acquiring firms. It…
Abstract
Purpose
This study aims to identify the strategic factors and their effects on the post-cross-border acquisitions (CBA) technological innovation performance of the acquiring firms. It develops a hierarchical model to examine the interrelationship between identified strategic factors such as strategic flexibility, strategic ambidexterity, environmental dynamism, etc.
Design/methodology/approach
This study uses modified total interpretive structural modeling qualitative methodology (m-TISM) to develop a hierarchical model and conducts a Matrice d’impacts croisés multiplication appliquée á un classment (MICMAC) analysis to show the interrelationship between strategic factors affects the acquirer’s post-CBA technological innovation performance. It determines the autonomous, dependent, linkage and independent strategic factors. It further uses comparative case analysis to empirically examine the strategic factors in real-time CBA situations.
Findings
This study shows the m-TISM-based hierarchical model highlighting the interrelation, level of autonomy, dependence and linkage among strategic factors affecting the acquirer’s post-CBA technological innovation performance. It suggests that strategic factors such as environmental dynamism, R&D competence, innovation capability and technological capability are largely autonomous and have significant driving power, whereas strategic ambidexterity and strategic flexibility are the connecting factors. post-M&A integration is the governing factor for technological innovation performance in CBA.
Research limitations/implications
The strategists and practitioners could evaluate the key strategic factors having significant driving power for strategy formulation and implementing efficient policies. By implementing the m-TISM model acquiring a firm’s post-CBA performance can be enhanced. Future researchers might utilize quantitative methods like regression and structural equation modeling in the CBA context.
Originality/value
This study uses a novel m-TISM and MICMAC approach to identify the driving and dependent factors affecting post-CBA technological innovation performance. It further provides a detailed theoretical and conceptual understanding relating to the philosophy and establishes an interrelation amongst these under-researched strategic factors in CBA.
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Samta Jain, Smita Kashiramka and P.K. Jain
Emerging market multinational companies have been vigorous in pursuing inorganic growth through cross-border acquisitions (CBAs). The fundamental studies till now have portrayed…
Abstract
Purpose
Emerging market multinational companies have been vigorous in pursuing inorganic growth through cross-border acquisitions (CBAs). The fundamental studies till now have portrayed that rapid internationalization through CBAs tends to create value for these emerging market firms (EMFs) in the short term. However, there is an ambiguity about whether these firms endure better performance in the long term. The purpose of this study is to assess the long-term (ex-post) financial and operating performance of EMFs involved in overseas acquisitions before the COVID-19 pandemic hit the world economy.
Design/methodology/approach
CBAs completed by Indian and Chinese companies constitute the sample of the study. The performance has been analysed during the pre-COVID period spanning 17 years from 2001 to 2017. A comprehensive set of 14 financial ratios has been used to represent change (improvement/decline) in enterprises’ post-acquisition operating performance; these ratios have been divided into four broad groups: profitability, efficiency, solvency and liquidity ratios.
Findings
The performance of Indian companies has deteriorated significantly after the acquisition. However, there has been no change (deterioration/improvement), subsequent to CBAs, in the profitability of Chinese firms.
Practical implications
The findings of the study support that firms from emerging economies exploit CBAs as a “springboard” to obtain strategic assets including intangible resources and brands rather than to achieve synergies through economies of scale and scope. Apparently, outbound acquisitions by emerging economy firms are not driven by cost-reduction or revenue-generation activities.
Originality/value
None of the studies, to the best knowledge of the authors, has carried out performance analysis using a comprehensive set of financial ratios. The comparative study of two emerging economies is another valuable addition to the existing literature. The study holds the potential to serve as the benchmark to assess the performance of CBAs executed after COVID-19.
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