Krishna R. Reddi and Young B. Moon
The purpose of this paper is to investigate the interactions between new product development (NPD) and engineering change management (ECM) processes in terms of their impact on…
Abstract
Purpose
The purpose of this paper is to investigate the interactions between new product development (NPD) and engineering change management (ECM) processes in terms of their impact on organizational performance.
Design/methodology/approach
A system dynamics model of the NPD and ECM processes within an organization has been built and simulated for a range of parameter values to investigate the interactions between the two processes.
Findings
The effect of various parameters on the lead‐time of the NPD process varies with different process environments. No single process management policy is advantageous for most if not all process operating conditions, thus it is important to change the critical parameters of the process every time.
Research limitations/implications
The accuracy of the estimated effect of parameters on the lead‐time depends on the accuracy of estimated parameter values.
Practical implications
The insights developed from the results would be useful for managers in planning their process management policies under various circumstances.
Originality/value
The study of interactions between the ECM and NPD processes has been scarce. This research would be very helpful to managers who plan the process managing strategies given various circumstances such as limited resources.
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Krishna R. Reddy, Robin Semer and Jeffrey A. Adams
This paper presents the results of laboratory experiments that investigate the removal of volatile organic compounds from saturated soils through the use of air sparging. Three…
Abstract
This paper presents the results of laboratory experiments that investigate the removal of volatile organic compounds from saturated soils through the use of air sparging. Three series of experiments were performed in a column test apparatus using two different soils to represent actual field conditions, namely, a fine gravel and a medium‐to‐fine Ottawa sand (both obtained from sources near Chicago, Illinois, USA) contaminated with toluene, a major constituent of petroleum products. The results showed that toluene was removed from gravel very efficiently using air sparging; complete removal was achieved using a variety of air flow rates. However the toluene removal rates in tests using sand were significantly less. Even at the highest air flow rate used during testing, complete toluene removal took eight times longer than in comparable tests using gravel. With low air flow rates this was not achieved even after 17 hours of testing. It was further found that the injection of foams generated with surfactants, SDS and witconol SN70, at low air flow rates during the use of air sparging was found to accelerate the bulk removal of toluene in sand, but the use of surfactants did not facilitate the removal of residual levels of contamination.
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Yun Shen, Damien Wallace, Vikash Ramiah and Krishna Reddy
This study examines the influence of CEO characteristics on firm innovation within the Australian market, using R&D expenditure as a proxy for innovation. The aim is to analyze…
Abstract
Purpose
This study examines the influence of CEO characteristics on firm innovation within the Australian market, using R&D expenditure as a proxy for innovation. The aim is to analyze how factors such as CEO gender, educational background and dual roles (CEO-chairman) impact firms' R&D investment across various industries.
Design/methodology/approach
Panel and Tobit regression models are employed to assess the relationship between CEO characteristics and R&D expenditure. The study controls for endogeneity and applies firm-level control variables to ensure robustness, examining CEO traits like gender, educational qualifications and CEO-chairman duality.
Findings
The study reveals that CEO gender and educational level significantly impact firm innovation, particularly R&D expenditure, compared to other characteristics like CEO-chairman duality. Female CEOs and those with PhD degrees are associated with higher R&D spending, with variations across industries such as basic materials and healthcare.
Research limitations/implications
The study is limited by its focus on Australian firms and the time span of 2006–2016. Additionally, mixed results for CEO-chairman duality and CEO location may reduce the generalizability of the findings across all industries on the ASX.
Practical implications
The findings highlight the importance of gender diversity and CEO education in driving firm innovation. Companies aiming to enhance competitiveness and performance through R&D activities, especially in industry-specific contexts, should consider these CEO characteristics.
Originality/value
This study provides novel insights by analyzing the impact of CEO characteristics, such as gender and education level, on firm innovation in the underexplored Australian market. By using R&D expenditure as a proxy for innovation and employing both panel and Tobit regression models, it highlights the significance of CEO traits, particularly in specific industries. The findings emphasize the stronger influence of CEO gender and educational level compared to CEO-chairman duality and location, offering valuable implications for gender diversity and industry-specific innovation strategies in enhancing firm competitiveness.
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Sujani Thrikawala, Stuart Locke and Krishna Reddy
The purpose of this paper is to investigate the relationship between board structure, financial performance and outreach of microfinance institutions (MFIs) in Sri Lanka, using…
Abstract
Purpose
The purpose of this paper is to investigate the relationship between board structure, financial performance and outreach of microfinance institutions (MFIs) in Sri Lanka, using unbalanced panel data for 300 MFI-year observations for the period 2007 to 2012.
Design/methodology/approach
Empirical research relating to governance practices in MFIs is still in its infancy, and further studies are needed to determine how improved governance practices may enhance sustainability and outreach of MFIs, especially in emerging economies. The authors use regression techniques to examine whether board structure has an influence on MFI performance.
Findings
After controlling for internal corporate governance variables, regulatory status, size, age, leverage and year effects, the authors report that board structure does contribute to the financial performance and outreach of MFIs in Sri Lanka.
Research limitations/implications
The availability of data in the public domain captures the major MFIs but does constrain the generalisability of findings.
Practical implications
This study enables individual MFIs to evaluate potential restructuring of their boards to promote a dual mission and achieve a more accelerated economic development.
Social implications
The findings may encourage policy makers to promulgate policy guidelines to deepen MFI outreach to the poorest people.
Originality/value
Inconsistent findings in prior studies and a general lack of empirical results for the microfinance industry have led to an unclear message regarding corporate governance and MFI performance. This study fills the research gap, contributing to the existing corporate governance literature in the microfinance sector and providing evidence from an emerging economy.
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Krishna Reddy, Muhammad Qamar and Noel Yahanpath
The purpose of this paper is to study whether mergers and acquisitions (M&As) create value in Indian and Chinese markets.
Abstract
Purpose
The purpose of this paper is to study whether mergers and acquisitions (M&As) create value in Indian and Chinese markets.
Design/methodology/approach
The authors study abnormal returns (AR) created by the acquiring firms in Indian and Chinese markets relating to M&A announcements, using the following three different statistical methods: i.e. mean, market and ordinary least squares adjusted return models.
Findings
On average, M&A announcements do not create value for the firms in Chinese and Indian economies. For the mean model, M&As create value for Chinese firms, whereas for the Indian firms no such value is created for the same event windows. The regression results showed that debt has a positive impact on the AR and cumulative average abnormal returns at 1, 5 and 10 per cent significance levels, respectively.
Research limitations/implications
This study suggests increasing the sample size and period and using the instrumental variables regression to ensure the estimator’s impartiality, consistency and efficiency. With the investigative period surrounding a financial crisis, the estimators may have omitted bias.
Originality/value
Multiple methods used in this paper made it possible to capture the level of method variance in the AR, which is unusual in the Chinese and Indian context. Hence, the current study provides local knowledge and further strengthens the literature about M&As. The authors also regress AR with firm-specific factors, the consideration of which is scarce in the previous literature. Furthermore, much of what the authors know about M&A is relevant to developed economies.
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Krishna Reddy, Muhammad Ali Jibran Qamar, Nawazish Mirza and Fangwei Shi
The purpose of the study is to examine overreaction effect in the Chinese stock market after the global financial crisis (GFC) of 2007 for all the stocks listed in Shanghai Stock…
Abstract
Purpose
The purpose of the study is to examine overreaction effect in the Chinese stock market after the global financial crisis (GFC) of 2007 for all the stocks listed in Shanghai Stock Exchange (SSE) Composite 50 index.
Design/methodology/approach
To capture overreaction effect in the stock listed at SSE 50 Index, a time series analysis of average cumulative abnormal return within a unified framework is applied for the period of January 2009 to December 2015. From these loser and winner portfolios, contrarian strategy is applied to build arbitrage portfolio, which is the difference of mean reversions between loser and winner portfolios. The portfolio construction is based on a 12-month formation period and 6-month testing period for intermediate-term analysis and. for short-term analysis, 6 month formation and 3 month testing periods. The authors also applied regression analysis to test a return reversal effect for the sampled period.
Findings
Results show that contrarian strategy yields positive excess returns for the arbitrage portfolio for most of the testing periods. The intermediate baseline case shows the arbitrage portfolio producing an average excess return of 14.1%, while even the short-term one produces 4%, which is statistically significant at the 5% level. The study finds asymmetrical overreactions in the SSE especially for loser portfolios. The biggest winner and loser portfolios follow the mean reversal effect. Moreover, before-after test for the biggest winner and loser portfolios shows that the losers recovered and beat the market immediately.
Practical implications
The study could benefit government, policy makers and regulators by studying how presence of more individual investors than institutional investors of China stock market leads to more irrational decisions giving rise to volatility. The regulators could build favourable policies for institutional investors to give them incentive to invest more than individual investors through which market volatility could be controlled.
Originality/value
This research contributes to market behaviour research, showing how working under hypotheses of overreaction; gains can be made with contrarian investment strategy through arbitrage portfolios. The authors provide specific additional support for the short and medium-term overreaction in the SSE for the period 2009–2015 using regression analysis.
Contribution to Impact
This research contributes to market behaviour research, showing how working under hypotheses of overreaction; gains can be made with contrarian investment strategy through arbitrage portfolios. We provide specific additional support for the short and medium-term overreaction in the SSE for the period 2009–2015 using regression analysis.
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Chandrashekar Raghutla and Krishna Reddy Chittedi
The study investigates the impact of financial development, urban population, technology and energy consumption on economic output and carbon emissions in Brazil, Russia, India…
Abstract
Purpose
The study investigates the impact of financial development, urban population, technology and energy consumption on economic output and carbon emissions in Brazil, Russia, India, China and South Africa (BRICS) economies.
Design/methodology/approach
The study uses Johansen Fisher type panel cointegration, fully modified ordinary least square and heterogeneous panel causality tests to examine long-run, long-run elasticities and short-run relationships. For conducting the tests, the study selected five emerging economies, i.e. Brazil, Russia, India, China and South Africa and used balanced panel data for the period between 1998 and 2016.
Findings
The empirical results confirm the presence of a long-run cointegration relationship among the variables. We find that financial development, technology and energy consumption have a considerable positive impact on economic output. Also, financial development, urban population and technology help reduce carbon (CO2) emissions and ensure an improved environmental quality in the long run in the five emerging economies. In the short run, a bidirectional causal relationship is noticed between financial development and CO2 emissions.
Practical implications
Clean energy, technological development and investments by public–private partnerships are required in the public and private sectors to reduce carbon emissions. This not only ensures improved environmental quality but also increases energy efficiency, thereby reducing dependency on traditional energy consumption.
Originality/value
As its contribution to the extant literature, the study examines the impact of financial development, energy consumption, technology, urbanization, economic output and carbon emissions in BRICS economies. The findings of the research suggest both the governments and policymakers of these five emerging economies to develop more effective policies toward bolstering the financial development and increasing the use of technology. These, in turn, ensure sustainable development with low CO2 emission in the future and, eventually, pushing those five emerging market economies toward sustainable economic growth.
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Krishna Reddy Kakumanu, Palanisami Kuppanan, C.R. Ranganathan, Kumar Shalander and Haileslassie Amare
Changing climate has increasingly become a challenge for smallholder farmers. Identification of technical, institutional and policy interventions as coping and adaptation…
Abstract
Purpose
Changing climate has increasingly become a challenge for smallholder farmers. Identification of technical, institutional and policy interventions as coping and adaptation strategies and exploring risks of their adoption for smallholder farms are the important areas to consider. The aim of the present study was to carry out an in-depth analysis of adaptation strategies followed and the associated risk premium in technology adoption.
Design/methodology/approach
The study was carried out in the dryland systems of three Indian states – Andhra Pradesh, Karnataka and Rajasthan – and was based on a survey of 1,019 households in 2013. The flexible moment-based approach was used for estimating the stochastic production function, which allowed estimation of the relative risk premium that farmers are willing to pay while adopting the technologies to avoid crop production risks.
Findings
In all the three states, the risk premium (INR ha−1) was higher for farm mechanization compared to supplemental irrigation, except in the case of Andhra Pradesh. The higher the level of technology adoption, the higher the risk premium that households have to pay. This can be estimated by the higher investment needed to build infrastructure for farm mechanization and supplemental irrigation in the regions. The key determinants of technology adoption in the context of smallholder farmers were climatic shocks, investment in farm infrastructure, location of the farm, farm size, household health status, level of education, married years, expected profit and livestock ownership.
Originality/value
Quantification of the risk premium in technology adoption and conducting associated awareness programs for farmers and decision-makers are important to strengthen evidence-based adoption decisions in the dryland systems of India.
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Krishna Reddy, Muhammad Ali Jibran Qamar and Marriam Rao
The existing literature about return reversal effect in Chinese stock markets is inconclusive and controversial. Therefore, the purpose of this paper is to investigate the…
Abstract
Purpose
The existing literature about return reversal effect in Chinese stock markets is inconclusive and controversial. Therefore, the purpose of this paper is to investigate the presence of return reversal effect in the Shanghai A stock market.
Design/methodology/approach
The authors used the late-stage contrarian strategy of Malin and Bornholt (2013) for the period March 2011‒March 2016.
Findings
The results show that there is a long-term return reversal effect in the Shanghai A stock market for the period March 2011‒March 2016. When portfolios are in the formation period (P=24 months), the excess returns are significant in the holding period, Q=6, 9, 12, 24 months. Further, there is also a significant short-term momentum effect in the Shanghai A stock market. For the robustness check, a new reversal factor was introduced into the Fama‒French three-factor model. Results show that portfolios have a smaller size and have lower book-to-market ratios; the return reversal factor explains a portion of the abnormal returns and coefficient of the reversal effect is significant.
Research limitations/implications
The authors caution readers from generalizing the findings of this study, as the sample is small and the focus is only on A stocks listed on the Shanghai Stock Exchange.
Originality/value
The present research expands the current literature by providing a comprehensive information about the presence of the long-term and short-term return reversal effects in Shanghai A stock market. Furthermore, the Chinese stock markets have distinctive features in comparison to the developed stock markets in terms of government control, institutional structure, liquidity, cultural background, etc. Such differences affect the pattern in stock returns compared with those observed in developed stock markets. Contrary to previous studies, the present study also accounts for robustness checks. Finally, it also evaluates the possible reasons for the return reversal effect in the Shanghai market.