Search results

1 – 10 of 459
Per page
102050
Citations:
Loading...
Access Restricted. View access options
Article
Publication date: 4 April 2024

Shiv Shankar Kumar, Kumar Sanjay Sawarni, Subrata Roy and Naresh G

The objective of this paper is to investigate the effect of working capital efficiency (WCE) and its components on the composite financial performance of a sample of Indian firms.

613

Abstract

Purpose

The objective of this paper is to investigate the effect of working capital efficiency (WCE) and its components on the composite financial performance of a sample of Indian firms.

Design/methodology/approach

Our sample includes 796 non-financial listed firms from 2015–16 to 2021–22. Sample firms’ profitability, liquidity, solvency, cash flow management, and financial and operational leverage have been used to classify them into companies with high composite financial performance (HCFP) and with low composite financial performance (LCFP) by using K-Means Clustering technique. A composite financial performance score (CFPS) of 1 has been assigned to HCFP and 0 to LCFP. We have used logistic regression models with fixed effect to estimate the effect of cash conversion cycle (CCC) and its components, i.e. inventory days, accounts receivable days and accounts payable days on CFPS in the presence of control variables such as growth, leverage, firm size, and age.

Findings

The study finds that CCC and inventory days are inversely associated with CFPS. This finding shows that the firms’ WCE leads to superior financial performance on a composite basis.

Research limitations/implications

The research findings are based on samples drawn from the population of the listed Indian non-financial companies. Since the operation, financial practices, working capital policies, and management styles of firms vary greatly among nations, the results of this study should be extended to firms in other countries after taking into account the degree of resemblance to the sample firms.

Practical implications

The findings of this study hold significant value for industry practitioners, as they provide guidance in determining the optimal allocation of funds for working capital and devising strategies for effectively managing inventory levels, credit sales, and vendor payments in order to increase the overall value of the company. This study aims to help investors in building their investment portfolios by identifying companies with superior composite financial performance. Investors can enhance the construction of their investment portfolios by strategically selecting companies that demonstrate superior overall performance.

Social implications

The results of our study will help companies improve their WCM strategies to enhance their overall value, and their significance increases manifold during economic downturns. Business firms that perform well by efficiently managing their working capital have a multiplier effect on the economy and society at large in the form of GDP contribution, labor income, taxes to the government, investment in capital assets, and payments to suppliers.

Originality/value

To understand the impact of WCE on firms’ performance, the extant working capital literature focuses on some specific characteristics such as profitability, valuation, solvency, and liquidity. The limitation of employing a single parameter is its inability to present the comprehensive performance evaluation of firms. This study is among the earliest studies that focus on the holistic evaluation of WCE's impact on the composite performance of a company.

Details

International Journal of Productivity and Performance Management, vol. 73 no. 9
Type: Research Article
ISSN: 1741-0401

Keywords

Access Restricted. View access options
Article
Publication date: 1 October 2018

Kirithiga S., Naresh G. and Thiyagarajan S.

The commodity and equity derivatives have a close resemblance between them in trade practices and mechanisms, which makes it easy for the investors to combine these two assets…

409

Abstract

Purpose

The commodity and equity derivatives have a close resemblance between them in trade practices and mechanisms, which makes it easy for the investors to combine these two assets classes for building up their portfolio. The diversification of investment among asset classes builds some relation between them. The integration of market within a country is necessary to bring in a smooth and balanced economic growth. Thus, the purpose of this paper is to examine the spillover between the equity and commodity futures markets which will be helpful not only for the investors but also for the policy makers, producers and the regulators.

Design/methodology/approach

To examine the spillover between the equity and commodity market, the major benchmarking indices of these markets, namely COMDEX of MCX, Dhaanya of NCDEX and NIFTY 50 of NSE, were chosen. NIFTY 50 index was chosen as representative of equity market due to its composition of most active constituent stocks than any other broad market index of Indian stock market. As the commodity market indices are not been traded, their constituent commodities were taken for the study. Thus, 11 MCX-COMDEX constituents such as Gold, Silver, Copper, Zinc, Aluminum, Nickel, Lead, Crude oil, Natural gas, Kapaskhali and Mentha oil and eight NCDEX-Dhaanya constituents such as Castor seed, Chana, Cotton seed oilcake, Jeera, Mustard seed, Refined soy oil, Turmeric and Wheat futures prices were taken against the NIFTY 50 futures prices with daily trading data for ten years starting from January 1, 2006 till December 31, 2015 to analyze their spillover effect. The return series data were used to test the spillover between equity and commodity futures market as it gives the crux of investors’ diversification through the Vector Autoregression (VAR) model and verified with Impulse Response Function by testing the null hypothesis, H0, that there is no return spillover between the equity and commodity futures market.

Findings

The investors move from equity to commodity when there is a threat in equity market and vice versa, thereby diversify their risk for those commodities which are vulnerable to global and domestic pressures in the economy. Investigating the spillover between equity and commodity market gives an insight of market integration effect. A nation can achieve its economic growth easily when its markets are integrated.

Research limitations/implications

The commodity indices are still notional indices in the market; therefore, individual constituent commodities of commodities indices were considered with the benchmarking equity futures index, which is one of the limitations of the study.

Practical implications

The integration of market within a country is necessary to bring in a smooth and balanced economic growth.

Originality/value

Most of the past studies dealt only with few commodities and equities and not with the broad-based benchmarking indices. This paves way for enquiry into the commodity and equity markets integration with the major constituent commodities traded in the economy. Hence, this paper looks into the presence of spillover between the equity and commodity markets. The VAR model is verified with the impulse response function which explains the reaction of any dynamic system in response to a pulse change in another. The impulse response function is presented graphically for easy and better understanding.

Details

Benchmarking: An International Journal, vol. 25 no. 7
Type: Research Article
ISSN: 1463-5771

Keywords

Access Restricted. View access options
Article
Publication date: 1 October 2018

Ganesh R., Naresh G. and Thiyagarajan S.

The purpose of this paper is to examine the mimicking behaviour of institutional investors in the stock market.

220

Abstract

Purpose

The purpose of this paper is to examine the mimicking behaviour of institutional investors in the stock market.

Design/methodology/approach

The study focusses on examining the herding behaviour among institutional investors in the stock market by considering the bulk and block trade on the constituent NIFTY 50 index during the period 2005–2015 using Lakonishok–Schleifer–Vishny (1992) model. The study also aims to find out whether their herding behaviour is intentional or unintentional in nature.

Findings

The findings of the study showed no sign of herding behaviour in the market; out of 50 constituent stocks of NIFTY 50, there was significant herding in 15 stocks, with buy herding in 11 stocks and sell herding in four stocks, and remaining 35 stocks were totally free from herding behaviour. In addition, the results proved that the herding behaviour observed on the stocks is of unintentional in nature.

Research limitations/implications

Present study is limited to the use of constituent stocks of the Benchmarking Index NIFTY 50.

Originality/value

This study is the first attempt to investigate the herding behaviour of institutional investors in the market using bulk and block trade and also to explore their intent in herding behaviour.

Details

Benchmarking: An International Journal, vol. 25 no. 7
Type: Research Article
ISSN: 1463-5771

Keywords

Access Restricted. View access options
Article
Publication date: 17 February 2025

Milin Rakesh Prasad, Weng Marc Lim, Naveen Donthu and Naresh G.

This study aims to establish an understanding of commonsense, a valuable mechanism for navigating disruptive, volatile, uncertain, complex and ambiguous (DVUCA) environments.

16

Abstract

Purpose

This study aims to establish an understanding of commonsense, a valuable mechanism for navigating disruptive, volatile, uncertain, complex and ambiguous (DVUCA) environments.

Design/methodology/approach

This study conducts a scientometric (bibliometric) analysis of commonsense through the lens of tacit knowledge, practical intelligence and sensemaking to unpack is nomological network.

Findings

This study reveals that tacit knowledge, practical intelligence and sensemaking are pivotal to the conceptualization of commonsense, crucial for navigating DVUCA environments. These elements interact within organizational contexts, influencing knowledge dynamics, decision-making processes and ethical leadership. The findings not only affirm the foundational role of these components in commonsense but also highlight their interplay in fostering organizational resilience, adaptability and strategic agility. This synergy underlines commonsense as a multifaceted and dynamic capability essential for effective management and leadership in complex settings.

Research limitations/implications

This study significantly enriches the theoretical landscape of commonsense by mapping its components within a scientometric-established nomological network. By identifying the interconnected roles of tacit knowledge, practical intelligence and sensemaking in organizational settings, it invites future scholarly endeavors to further dissect these relationships. It also encourages the exploration of additional elements such as emotional intelligence and cultural factors that may influence commonsense. This research opens new avenues for examining how these foundational aspects can be systematically nurtured and developed within diverse organizational environments.

Practical implications

This study provides actionable insights for organizational leaders and policymakers. Understanding the critical roles that tacit knowledge, practical intelligence and sensemaking play in navigating complex environments can guide the enhancement of training and development programs to strengthen these capacities. The importance of fostering a culture that supports continuous learning and ethical leadership is emphasized, as these elements are essential for sustaining competitive advantage and ensuring responsible governance. Managers are encouraged to integrate structured sensemaking processes and practical intelligence into strategic decision-making to improve adaptability and resilience when facing DVUCA challenges and opportunities.

Originality/value

This study offers a pioneering exploration of commonsense through the integration of tacit knowledge, practical intelligence and sensemaking into a cohesive framework. Employing scientometric analysis, the study provides a comprehensive understanding of how these cognitive processes interact to facilitate decision-making and problem-solving in complex environments. The study enriches knowledge management by presenting a refined perspective on the interplay between these elements, deepening the understanding of how commonsense is generated and applied within organizational settings. This contribution significantly enhances theoretical discourse on adaptability, decision-making and resilience in DVUCA environments.

Details

Journal of Knowledge Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1367-3270

Keywords

Available. Content available
Book part
Publication date: 7 October 2024

Abstract

Details

Informal Economy and Sustainable Development Goals: Ideas, Interventions and Challenges
Type: Book
ISBN: 978-1-83753-981-9

Access Restricted. View access options
Article
Publication date: 28 August 2023

Soumik Bhusan, Ajit Dayanandan and Naresh Gopal

The academic literature has examined why bank runs happen based on the work of 2022 Nobel Prize-winning economists Diamond and Dybvig. They have found the source of…

159

Abstract

Purpose

The academic literature has examined why bank runs happen based on the work of 2022 Nobel Prize-winning economists Diamond and Dybvig. They have found the source of banking/financial crisis in terms of mismatch between liabilities (deposits being short term and savers wanting to short-term access to their money) and assets (long term and illiquid). The Lakshmi Vilas Bank (LVB) crisis intensified when it came under Prompt Corrective Action (PCA) of the Reserve Bank of India (RBI). This situation provides the opportunity to study whether the elements embodied in the theoretical models like Diamond and Dybvig hold true for LVB crisis. This study aims to examine the reasons for the demise of LVB in India using DuPont financial model, peer group analysis and time series structural break in crucial financial parameters.

Design/methodology/approach

The study examines the reason for insolvency of LVB using financial ratios, financial models (DuPont), financial distress model (Z-score) and asset-liability management. The study also adopts univariate structural break models using quarterly financial data covering the key financial measures used in the RBI’s PCA framework.

Findings

LVB crisis is like Diamond–Dybvig model, in the sense, savers requiring short-term access to their money (liquidity for their deposits) on the information of high non-performing assets, which further deteriorates the illiquid nature of loan portfolio (assets) of banks. The study finds its profit margin (net interest margin and non-interest margin) and managerial efficiency had started deteriorating since 2018. The study finds that LVB’s main weakness lies in its limited credit appraisal ability, its monitoring and weak internal controls. Lending to sensitive sectors (like real estate, capital markets and commodities) and exposure to large business groups also contributed to its weakness. The study also finds huge, elevated asset-liability mismatch, especially in the short-term maturity buckets. Using univariate econometric time series model, the study also confirms financial weakness being evident much earlier than the time when resolution was undertaken by the RBI through PCA.

Research limitations/implications

The study has implications for analysing and monitoring financial distress of banks. The study also has implications for devising banking regulation and supervision.

Originality/value

The study brings in a perspective of the banking regulations using the application of PCA framework on a listed private sector bank. The authors combine an accounting ratio model and combine risk measures that could identify the incipient risks in a bank. The authors believe this will help in refinement of banking regulations and better monitoring mechanisms.

Details

Journal of Financial Regulation and Compliance, vol. 31 no. 5
Type: Research Article
ISSN: 1358-1988

Keywords

Access Restricted. View access options
Book part
Publication date: 7 October 2024

R. Ganesh and G. Naresh

This chapter explores an analytical method to understand the decades-long literature on informal lending in the informal sector. Assessing the predominance and interrelationships…

Abstract

This chapter explores an analytical method to understand the decades-long literature on informal lending in the informal sector. Assessing the predominance and interrelationships of numerous issues in informal loans in the informal economy helps in identifying emerging research trends. The analysis employs a method of investigation by thematically analyzing research publications indexed by Scopus from the first publication to 2023 using bibliometrix and PRISMA model in R Studio. Research ideas may be visualized using thematic slices and other visual representations that show their evolution and interconnectedness. Key concepts like “rural credit” and “informal sector” become apparent, shedding light on the evolution of these concepts through time with the help of thematic analysis. Findings on trending themes and tree maps improve thematic comprehension. The study majority restricted to thematic analysis in depth confined to available information. The results may be used as a road map for further study and policy choices in the field of informal lending. Informal lending research promotes financial inclusion and sustainable informal sector economic growth. This bibliometric analysis illuminates informal lending research themes and their consequences for informal economy issues. The results enhance informal lending research and policy development.

Details

Informal Economy and Sustainable Development Goals: Ideas, Interventions and Challenges
Type: Book
ISBN: 978-1-83753-981-9

Keywords

Access Restricted. View access options
Article
Publication date: 12 February 2025

Mosharrof Hosen, Hassanudin Mohd Thas Thaker, Mohammad Nazim Uddin, Abdul Qoyum and Farhad Taghizadeh-Hesary

Cryptocurrencies, which have been popular since 2009, raise concerns among investors, researchers and professionals. Amid global economic, financial and health crises, uncertainty…

28

Abstract

Purpose

Cryptocurrencies, which have been popular since 2009, raise concerns among investors, researchers and professionals. Amid global economic, financial and health crises, uncertainty has surged, leading investors to seek risk reduction and portfolio diversification. While some critique conventional fiat-based cryptocurrencies, others propose asset-backed alternatives. However, the impact of Shari’ah law-based cryptocurrencies on equity market returns remains largely unexplored in existing literature. This study aims to investigate the lead/lag relationship of selected Islamic and conventional cryptocurrencies from ASEAN and global perspectives.

Design/methodology/approach

The authors collected daily data of Bitcoin, Ethereum, X8X (Islamic cryptocurrency), Cardano (Islamic cryptocurrency), S&P500, Volatility Index, Economic Policy uncertainty and FTSE Asean Index (from the 4th of November 2019 to the 1st of July 2022) to reveal empirical results through Continuous Wavelet Transform and Correlation Heatmap with Dendrogram.

Findings

The findings indicate that Bitcoin offers a diversification opportunity for FTSE ASEAN investors for the long-term horizon while S&P500 investors will benefit from short-term investment. On the other hand, Ethereum provides better investment opportunities for both indices in the short run compared to long run. Cardano and X8X offer better investment opportunities in the long run for S&P500 and FTSE ASEAN investors. Interestingly, to check the robustness, the authors used correlation Heatmap based on Dendrogram which provided almost similar results.

Originality/value

This study contributes fresh insights to the existing literature concerning cryptocurrency due to the inconclusive findings of past studies, investors are curious to know the impact of cryptocurrency on stock market return from a global perspective which is extensively overlooked, and whether there is any difference between Islamic and conventional cryptocurrency. Therefore, by investigating the abovementioned timely demand issue, this study substantially contributes to the body of cryptocurrency literature.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1753-8394

Keywords

Access Restricted. View access options
Article
Publication date: 14 June 2018

Ganesh R., Naresh Gopal and Thiyagarajan S.

The purpose of this paper is to examine industry herding among the institutional investors and to find whether their herding behaviour is intentional or unintentional.

242

Abstract

Purpose

The purpose of this paper is to examine industry herding among the institutional investors and to find whether their herding behaviour is intentional or unintentional.

Design/methodology/approach

The study uses Lakonishok et al. (1992) model to examine the presence of industry herding behaviour among institutional investors. To determine whether the herding observed is intentional or unintentional, herding measure is regressed with volatility, volume, beta and return. The period of the study is from 1 April 2005-31 March 2015.

Findings

The findings of the study showed that though institutional investors have herding tendency towards most of the industries, in the overall period industry herding was not significant. The herding found in some industrial sectors was linked to economic performance of those sectors in India during the period of study and hence the herding was unintentional in nature.

Research limitations/implications

This is the first attempt to study industry herding among institutional investors and their intent in Indian market ever since the country opened its market to foreign investors in a big way. Present study is limited to the use of only bulk/block data instead of the entire trading data for the period.

Originality/value

This study is the first attempt to investigate industry herding behaviour of institutional investors in the market using their bulk and block trading data. The herding observed in well performing industries has been shown to be unintentional and hence rational. The results indicate that the entry of big institutional investors, including foreign institutions into the Indian market has not destabilised the market by irrational herding.

Details

South Asian Journal of Business Studies, vol. 7 no. 2
Type: Research Article
ISSN: 2398-628X

Keywords

Access Restricted. View access options
Article
Publication date: 1 October 2010

P. van der Zwan and P. Nel

The Minerals and Petroleum Resources Royalty Act (MPRRA) became effective on 1 March 2010. This legislation may have a significant impact on employment, foreign investment and…

1390

Abstract

The Minerals and Petroleum Resources Royalty Act (MPRRA) became effective on 1 March 2010. This legislation may have a significant impact on employment, foreign investment and future exploration in the South African mining industry. This article reports on a critical analysis of the MPRRA prior to its implementation in order to identify aspects that may impact adversely on the South African mining industry and would require further research after the implementation of the MPRRA. Based on the findings, the authors recommend that the impact of the level of royalties levied as well as the mechanism to promote downstream beneficiation be researched to establish whether the legislators ought to reconsider these provisions in the light of their impact on the mining industry.

1 – 10 of 459
Per page
102050