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Article
Publication date: 15 October 2019

Nemiraja Jadiyappa, Bhanu Sireesha, L. Emily Hickman and Pavana Jyothi

Prior literature demonstrates that the effectiveness of bank monitoring decreases when multiple banks are involved, due to a free rider problem, leading to lower firm value. The…

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Abstract

Purpose

Prior literature demonstrates that the effectiveness of bank monitoring decreases when multiple banks are involved, due to a free rider problem, leading to lower firm value. The purpose of this paper is to investigate whether this free rider problem exists in an emerging market context, and whether the relationship between multiple banking relationships and firm value is conditioned on bankers’ incentives to monitor.

Design/methodology/approach

The authors use multivariate panel regression to examine the hypotheses. The conditioning effect of the incentive to govern (the amount of average bank lending) is modeled using an interaction variable. Based on the result of the Hausman test, the authors employ two-way fixed effects estimator to estimate the coefficients.

Findings

First, the negative relationship between multiple banking relationships and firm value holds true among Indian firms. Second, the authors show that this negative relationship is lessened for firms with high average bank debt or higher free cash flows. The analyses suggest that these moderating effects are related to a reduction in the free rider problem rather than a decrease in financial constraints. However, these results are only significant among larger firms.

Originality/value

Prior literature has not considered the conditioning impact of the “incentives to govern” when examining the free rider problem, inherent in situations where multiple actors are involved. The authors show in this study that the free rider problem disappears when the incentives to govern are considered in the overall research framework.

Details

Managerial Finance, vol. 46 no. 1
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 4 March 2019

Nemiraja Jadiyappa, Pavana Jyothi, Bhanu Sireesha and Leila Emily Hickman

The purpose of this paper is to examine the effect of CEO gender on the performance of Indian firms and to explain the economic channel for any such effect.

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Abstract

Purpose

The purpose of this paper is to examine the effect of CEO gender on the performance of Indian firms and to explain the economic channel for any such effect.

Design/methodology/approach

Using a panel of 100 Indian firms, the authors test whether there is a significant difference in the performance – measured as return on assets (ROA) and return on equity (ROE) – of firms with male vs female CEOs, in both time and space dimensions, using the difference-in-differences approach.

Findings

The average ROA of the sample firms decrease by about 10 percent after a female enters the CEO role. This negative result remains robust in both the time series as well as cross-sectional analyses. The decline is also observed when using ROE to measure performance. Further, the authors show that this negative effect is associated with an increase in agency costs that is observed following the appointment of a female CEO.

Originality/value

Previous studies have produced mixed results regarding the effect of having a female CEO on firm performance, and the research to date has not explored the economic channel through which this effect occurs. In this study, the authors show that the decline in performance observed among Indian firms flows from an increase in agency costs under female management.

Details

Journal of Economic Studies, vol. 46 no. 2
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 28 February 2023

Sashank Sravan, S. Rajakumar, Karthikeyan Rajagopalan and Kavitha Subramanian

Dissimilar joining of austenitic stainless steels and ferritic steels is a challenging task and has a wide range of applications due to its excellent mechanical and thermal…

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Abstract

Purpose

Dissimilar joining of austenitic stainless steels and ferritic steels is a challenging task and has a wide range of applications due to its excellent mechanical and thermal characteristics. They are joined mostly by using conventional modes. In the current investigation, the study and optimization of hot wire TIG welding parameters was carried out.

Design/methodology/approach

These parameters will govern the desired characteristics of the joint. Solutions were found out through multi-response optimization by using response surface methodology and single response optimization using particle swarm optimization.

Findings

Optimized input welding parameters that were achieved are electrode current 180 amps, wire feed rate 1870 mm/min and hot wire current 98 amps and the optimized UTS is 665.45 MPa. The results from PSO were compared with RSM and the optimized input welding parameters for the electrode current, hot wire current and wire feed rate exhibited maximum ultimate tensile strength which were also confirmed from response and contour plots.

Originality/value

Sensitivity analysis was also performed to understand the effect of each individual parameters on the response. Microstructure features were evaluated for the joints and was found that the characteristics are within the desired criteria.

Details

Multidiscipline Modeling in Materials and Structures, vol. 19 no. 3
Type: Research Article
ISSN: 1573-6105

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