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Case study
Publication date: 17 October 2012

K. Srinivasa Reddy, Rajat Agrawal and Vinay Kumar Nangia

International business – sell-off and joint venture.

Abstract

Subject area

International business – sell-off and joint venture.

Study level/applicability

This case is suitable for graduation and post graduation (BBA, MBA) and other management programs. The courses include multinational business environment and strategic management

Case overview

A significant increase in the Asian electronics business has created a global platform for international vendors and customers. Indeed, Chinese and Korean firms have become the foremost manufacturing and fabrication nucleus for electronic supplies in the world economy. In fact, it is an example of success from Asian emerging markets. This case presents the strategies of Asian rivals in the electronics business that shows both Bolipps and Canssonic redesigning and restructuring global tactics for long-term sustainable success in the given market. It also discusses the reasons behind their current mode of business and post-deal issues.

Expected learning outcomes

The case describes a way to impart managerial and leadership strategies from regular business operations happening in and around the world. Solely it focuses on designing inorganic choices such as sell-offs, joint ventures, shuffle and merging strategies through theory to application.

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Content available

Abstract

Details

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

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Case study
Publication date: 1 January 2011

V.K. Nangia, Rajat Agarawal, Vinay Sharma and K. Srinivasa Reddy

corporate policy and strategy – mergers and acquisitions.

Abstract

Subject area

corporate policy and strategy – mergers and acquisitions.

Study level/applicability

Post graduation (MBA and other management degrees). It includes courses on Strategic Management, Business Environment and International Business.

Case overview

Markets are becoming highly connective, accessible and communicative and reaching maturity at a very high phase. Acquisition is a choice to enhance the emerging and diversified markets. This case paper presents insights on Vedanta – Cairn India cross-border acquisition deal in Indian oil and exploration industry. This case synchronizes the gap between strategic planning and outcome of actions. The study exclusively evidences the reaction of stocks of all attached parties against acquisition announcement and compares with market performance.

Expected learning outcomes

Strategic mapping of business negotiations, while in-organic choices, further the impact of economic, political, legal and regulatory factors on cross-border mergers and acquisitions (M&A), deliberate deal financing mechanism and leadership diplomacy. It proposes from the viewpoint of corporate in-organic alternatives and to strengthen the upcoming research field of strategy & policy.

Supplementary materials

Global M&A market, shareholding pattern, income statement and balance sheet of Cairn India Ltd, financial figures of Vedanta Resources, tabular data on stock and index performance, deal structure and teaching note.

Details

Emerald Emerging Markets Case Studies, vol. 1 no. 1
Type: Case Study
ISSN: 2045-0621

Keywords

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Article
Publication date: 30 August 2013

K. Srinivasa Reddy, Rajat Agrawal and Vinay Kumar Nangia

Does target firm shareholders excessively paid or adequately rewarded or stumpy compensated? To address this query, the study aims to remix valuation parameters for better…

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1407

Abstract

Purpose

Does target firm shareholders excessively paid or adequately rewarded or stumpy compensated? To address this query, the study aims to remix valuation parameters for better combination of mixture so that it represents fair deal value in merger and acquisition (M&A) negotiation process. The purpose of the study is to redesign the existing valuation methods, craft new models and compare them to suggest perceptive guidelines for “valuation governance”.

Design/methodology/approach

This research reconstructs discounted cash flows (DCF) and net asset valuations (NAV), originate NRR‐APB approach, MCF‐RS and MCF‐ES and finally compare all seven methods for each select company in the respective industry/sector. Exclusively, estimating the forecasting hurdle rate (FHR) is a core competence of valuation process.

Findings

Among the valuation models, all seven methods for select companies have been reported diverse values, however NRR‐APB approach describe factual enterprise value for bargaining the value of target firm in structuring M&A deals.

Research limitations/implications

Due to petite sample, study has limited scope to validate the proposed conceptual models for valuation governance. Particularly, models have developed under the Indian accounting regulations, standards and reporting mechanism. Though, it can be practiced in other accounting standards on trail and error basis.

Practical implications

Valuation practitioners, governments, consultants, M&A advisory, market research and academia may implement these business valuation techniques, guidelines and implications in particular sector/industry to protect the interest of target firm shareholders and justify the consistent value for acquirer/bidding firm. Accordingly, stakeholders' interest could also be sheltered.

Originality/value

The paper intends to introduce NRR‐APB approach, MCF‐RS and MCF‐ES, reengineering DCF and NAV and compare these valuation methods on three companies each in select two industries, auto ancillary and hotels and resorts. Further, it would be adding a token of contribution to the notable area corporate finance. Hence, this article is the first study to argue on valuation governance and recommend state to enact immediately in India.

Details

International Journal of Commerce and Management, vol. 23 no. 3
Type: Research Article
ISSN: 1056-9219

Keywords

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Article
Publication date: 6 May 2014

Ritika Mahajan, Rajat Agrawal, Vinay Sharma and Vinay Nangia

The purpose and value of management education was always under the critics’ scanner but the proliferation of institutes impelled a serious debate on its quality. The…

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1780

Abstract

Purpose

The purpose and value of management education was always under the critics’ scanner but the proliferation of institutes impelled a serious debate on its quality. The purpose of this paper is to identify the factors affecting quality of management education in India and explains their nature, significance and mutual influences using interpretive structural modelling (ISM).

Design/methodology/approach

The factors were listed through literature review. They were then validated by empirical research conducted through questionnaires administered electronically and personally to 220 master of business administration students and alumni. On 13 such factors finalised, a qualitative and interpretive tool, ISM was applied.

Findings

Leadership emerged as the most important factor followed by organisational structure and practices. Interrelations otherwise not easily observable established their prominence. An important fact that evolved is that almost all the factors have strong interdependence and have to be seen in coherence when analysing their impact on students.

Originality/value

The literature until now has been highlighting the factors and their association with management education largely in isolation. This paper contributes to the existing literature by proposing a framework of the interrelationships of the factors which have a role in improving the quality of management education.

Details

International Journal of Educational Management, vol. 28 no. 4
Type: Research Article
ISSN: 0951-354X

Keywords

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Article
Publication date: 1 February 2016

Ritika Mahajan, Rajat Agrawal, Vinay Sharma and Vinay Nangia

The purpose of this paper is to identify challenges for management education in India and explain their nature, significance and interrelations using total interpretive…

Abstract

Purpose

The purpose of this paper is to identify challenges for management education in India and explain their nature, significance and interrelations using total interpretive structural modelling (TISM), an innovative version of Warfield’s interpretive structural modelling (ISM).

Design/methodology/approach

The challenges have been drawn from literature and validated by an empirical study conducted through questionnaires administered electronically and personally to 250 management graduates. TISM has been applied to 14 finalised factors.

Findings

All the identified factors, except accreditation, were found to be important. Ineffective regulatory bodies and ineffective leadership emerged as the biggest roadblocks. Several significant interrelations were found which were sometimes not revealed by plain observation.

Originality/value

The existing literature has discussed the challenges for management education but not their interrelations. This paper uses TISM to demonstrate the relationships between different challenges and to explain the logic behind the relationships. The results would be useful for the owners (or managers) of management institutes faced with the same challenges.

Details

Quality Assurance in Education, vol. 24 no. 1
Type: Research Article
ISSN: 0968-4883

Keywords

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Article
Publication date: 31 May 2013

K. Srinivasa Reddy, Vinay Kumar Nangia and Rajat Agrawal

It is worth mentioning that mergers and acquisitions (M&As) have become a popular vehicle for emerging‐markets firms to rapidly access new opportunities and market…

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1264

Abstract

Purpose

It is worth mentioning that mergers and acquisitions (M&As) have become a popular vehicle for emerging‐markets firms to rapidly access new opportunities and market capabilities. Indeed, privatization and multi‐nationalization have given a greater shore up in raising global and domestic merger deals. Motivated by these factors, the purpose of this paper is to investigate “do mergers produce abnormal returns around the announcement; conversely, do they improve financial performance in the long‐run?”

Design/methodology/approach

The study applies earnings management approach (event study) to compute average abnormal returns (AAR) around the merger announcement for select Indian M&A cases. Further, accounting ratios are considered to assess the long‐run financial performance. Thereafter, t‐stat is applied for testing the proposed hypotheses. In particular, it has performed a later test to the means of financial ratios and variables for both services and manufacturing sectors in accounting ratios and cylinder models, respectively.

Findings

The select Indian M&A cases show superior performance during the post‐merger period for both manufacturing and services sectors, and observe a balance sheet improvement in the long‐run.

Research limitations/implications

Sample is one of the limitations to the study. Due to small sample of merger cases, this paper has limited scope to generalize the results. Hence, academic researchers may employ the suggested assessment (cylinder)‐models on a large sample.

Practical implications

The research work would help financial analysts, stockbrokers, M&A advisory and regulatory bodies while designing takeover and open offer policies.

Originality/value

This is an original contribution, which has developed new assessment (cylinder)‐models to examine the post‐merger long‐run financial performance of acquiring firms, especially sector‐wise evaluation.

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Article
Publication date: 11 May 2015

Rakesh Arrawatia, Arun Misra and Varun Dawar

The study aims to investigate the relationship between competition and efficiency. Using bank-level data for Indian banks, relationship between competition and efficiency…

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1296

Abstract

Purpose

The study aims to investigate the relationship between competition and efficiency. Using bank-level data for Indian banks, relationship between competition and efficiency is examined by applying the Granger causality test for the period 1996 to 2011.

Design/methodology/approach

Lerner Index is a measure of market power and is applied for estimation of competition. Data envelopment analysis technique is applied for measuring efficiency in the Indian banking system along with the Granger causality test to look at the relationship between competition and efficiency.

Findings

Results show an increasing trend for competition for the period 1996 to 2004, and after that there is fall in competitive levels. Granger causality tests show that competition positively effects efficiency and vice-versa.

Practical implications

This study gives an insight into the relationship between competition and efficiency, thus providing an alternative view to the structure–conduct–performance paradigm. An efficient banking system can positively impact the growth of an economy and, hence, competition and efficiency are important decision parameters for regulators and could help them in decision-making and policy formulation.

Originality/value

This study has covered more than 90 per cent of the banking assets for looking at competition and efficiency in the banking sector. Policymakers can try to improve competitive levels in banking so as to improve efficiency in the banking sector which can further help in developing the investment-savings cycle.

Details

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

Keywords

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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

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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

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