Praveen K. Das and S. P. Uma Rao
The purpose of this paper is to examine the market timing and stock selection abilities of socially responsible (SR) mutual funds. Some high-profile SR fund managers try to…
Abstract
Purpose
The purpose of this paper is to examine the market timing and stock selection abilities of socially responsible (SR) mutual funds. Some high-profile SR fund managers try to embrace market timing and security selection plans to add value to the performance. Market timing relies on forecasting the equity market and shifting assets into or out of the market in anticipation of market movements. The selectivity measure assesses fund managers ability to select undervalued securities. Furthermore, the authors examine whether fund characteristics play any role in market timing and security selection ability.
Design/methodology/approach
The authors use Treynor and Mazuy's’ (1966) and Henriksson and Mertons’ (1981) model to examine the market timing and security selection ability. The study uses a decade of monthly returns to examine the skills of fund managers in the SR industry for the period from July 2002 to June 2012.
Findings
The main findings are that the managers – though not very successful – do indulge in stock selection and market timing activities. It was found that 48 funds have positive statistically significant stock selectivity coefficients and only a very small number of five funds with positive statistically significant market timing coefficients. Results suggest that there is a trade-off between the two activities. It was found that aggressive funds, funds with higher growth rate and riskier funds are more likely to engage in market timing rather than stock selection.
Practical implications
The implication is that SR managers cannot achieve superior stock selection and market timing ability simultaneously. Risk-averting investors in SR funds expect SR behavior from the managers. This means that managers of SR funds, with very little evidence of market timing ability, may have to refrain from market timing of SR funds.
Originality/value
Using a Morningstar dataset comprising almost all SR funds in existence as of June 2012, this is probably the most exhaustive long-term study to date on market timing and stock selection abilities of SR fund managers.
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Praveen K. Das and S.P. Uma Rao
The purpose of this paper is to evaluate the performance of socially responsible funds by closely examining funds' investment styles.
Abstract
Purpose
The purpose of this paper is to evaluate the performance of socially responsible funds by closely examining funds' investment styles.
Design/methodology/approach
The authors apply William Sharpe's method of style analysis to evaluate the performance of 94 US socially responsible mutual funds. By using the fund style as a benchmark, the authors are able to separate the performance attributed to style and selection.
Findings
The authors observe that underperformance of socially responsible funds is more pronounced and common than identified in the previous literature. Proponents of socially responsible investing argue that screening process provides an opportunity to fund managers to identify best companies in terms of future financial performance. The paper finds that active management of mutual funds is an important determinant of their performance in socially responsible investing industry. This paper provides evidence supporting that active management of socially responsible funds add value.
Originality/value
This study will help investors in allocating their portfolios among many of the available SR funds. The result – actively managed SR funds outperform their passive counterparts – will be valuable for those investors who are willing to invest in socially responsible funds but are concerned about the financial performance.
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Zia-ur-Rehman Rao, Muhammad Zubair Tauni, Amjad Iqbal and Muhammad Umar
The purpose of this paper is to find whether Chinese equity funds outperform the market and do Chinese fund managers possess positive market timing ability. This study also aims…
Abstract
Purpose
The purpose of this paper is to find whether Chinese equity funds outperform the market and do Chinese fund managers possess positive market timing ability. This study also aims to investigate whether well-performing (worst) funds of last year continue to perform well (worst) in the following year.
Design/methodology/approach
Capital Asset Pricing Model and Carhart four-factor model are used for performance analysis, whereas for analyzing market timing ability, the Treynor and Mazuy (1966) and Henriksson and Merton (1981) models are applied. To investigate persistence in the performance of Chinese equity funds, all equity funds are divided, on the basis of performance in the past 12 months, into three equally weighted groups (high, middle and low) and then observed for next 12 months. After that, groups are again rebalanced according to their performance. This study uses a panel regression model for analysis.
Findings
Chinese equity funds are successful in providing higher than market returns, and fund managers possess positive market timing ability. The authors find that Chinese equity funds do not show persistence in performance as witnessed in developed markets. Well-performing funds (worst funds) of last year do not continue to provide higher (lower) return in the following year. Moreover, the authors detect positive relationship of fund size, age and expense ratio with the fund’s performance. Overall results suggest that emerging market equity funds show better performance than that of developed markets.
Practical implications
Investors are better off if they invest in equity funds instead of index funds, as results illustrate that equity funds outperformed the market. Further, the strategy of buying well-performing funds of last year and selling poorly performing funds of last year does not look very attractive in China. This study helps investors to understand the Chinese managed funds industry, and such an understanding is also helpful for fund managers and asset management companies who use performance information in marketing strategies.
Originality/value
This is the first study to investigate the performance persistence in Chinese equity funds and also contributes to the literature about the performance and market timing ability of equity funds. The study takes the sample of 520 equity funds for the period from 2004 to 2014, which includes a period of financial crisis of 2008.
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Aditya Korekallu Srinivasa, K.V. Praveen, Subash Surendran Padmaja, M.L. Nithyashree and Girish K. Jha
This paper examines whether farmers' knowledge of the minimum support prices (MSPs) affects farm-gate prices. MSP is the minimum guaranteed price for agricultural commodities…
Abstract
Purpose
This paper examines whether farmers' knowledge of the minimum support prices (MSPs) affects farm-gate prices. MSP is the minimum guaranteed price for agricultural commodities announced by the Government of India for 24 commodities. Most farmers in India prefer to sell their produce at the farm-gate due to a small marketable surplus and hence do not directly benefit from MSP. The authors test the common argument in the political discourse that if farmers have knowledge of MSP, then they can bargain with traders during the farm-gate transaction and demand a better price close to MSP.
Design/methodology/approach
The authors use matching methods to examine the impact of knowledge of MSP on farm-gate prices.
Findings
Using nationally representative data, the authors show that there is no empirical evidence that the knowledge of MSP of the crops leads to higher bargaining power and better farm-gate prices.
Practical implications
Price information (MSP in this case) alone cannot improve the bargaining power of farmers and result in a better price realization. As a safety net, MSP fails in the absence of procurement of products by the government. This also raises the question of the equitability of the price support system in India and calls for a rethink of the MSP policy.
Originality/value
This study is the first of its kind to examine the anchoring effect of knowledge of MSP on farm-gate prices using a nationally representative dataset.
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Purpose: This piece delves into the transformative potential of artificial intelligence (AI) in the healthcare field within the emerging realm of Industry 5.0, highlighting a…
Abstract
Purpose: This piece delves into the transformative potential of artificial intelligence (AI) in the healthcare field within the emerging realm of Industry 5.0, highlighting a people-focused and eco-friendly approach.
Need for the study: While Industry 4.0 set the foundation for digitization in healthcare, it frequently overlooked the human factor and concerns about sustainability. Industry 5.0 tackles these deficiencies by giving importance to human welfare, efficiency in resource usage, and societal consequences alongside technological progress.
Methodology: This research utilizes a survey of existing written works on Industry 5.0, AI in healthcare, and associated empowering technologies. It also leans on insights from recent investigations and business actions to pinpoint current patterns and future paths.
Findings: This chapter showcases how AI-driven solutions can greatly alter various facets of healthcare. Some of these healthcare facets encompass personalized medicine and treatment, intelligent diagnostics and decision support, robot-supported surgery and care, and enhanced availability and affordability.
Practical applications: This piece offers valuable perspectives for healthcare investors. These investors cover healthcare suppliers, technology creators, rule creators, and patients. By embracing the standards of Industry 5.0, the merging of AI into healthcare brings significant potential for crafting a more competent, sustainable, and people-centered healthcare network that benefits both patients and society as a complete unit. This research investigates the stance, viewpoints, and potential impacts of machine intelligence (MI) in health with an emphasis on Industry 5.0.
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Bhushan Praveen Jangam and Badri Narayan Rath
This paper aims to examine the relationship between global value chains (GVCs) and domestic value-added content (DVA) in a panel of 58 countries for the period 2005–2015.
Abstract
Purpose
This paper aims to examine the relationship between global value chains (GVCs) and domestic value-added content (DVA) in a panel of 58 countries for the period 2005–2015.
Design/methodology/approach
First, the authors quantify the refined measures of GVC linkages by using the Borin and Mancini (2019) decomposition technique. Second, the authors apply the feasible generalised least squares method to test the relationship between GVCs and DVA empirically.
Findings
First, the authors find that GVC links are crucial to the enhancement of DVA. Second, a study at the sectoral level reveals that GVC links in the primary sector raise DVA whilst reducing DVA in the services sector. Third, the authors find that only upstream activities enhance value-added content. Fourth, the authors note the augmenting role played by national policies in mediating the gains associated with GVCs. Finally, the authors note that the outcomes associated with GVCs are consistent when the sample of countries is divided into groups based on income.
Practical implications
The results lead us to urge policymakers to promote greater integration of business activities into GVCs to reap their benefits.
Originality/value
This paper contributes to the research on the impact of GVCs on DVA by emphasising the significance of the types of GVC activities and policies that improve DVA.
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Sonali A. Deshmukh, Praveen Barmavatu, Mihir Kumar Das, Bukke Kiran Naik, Vineet Singh Sikarwar, Alety Shivakrishna, Radhamanohar Aepuru and Rathod Subash
This study has covered many types of solar-powered air-conditioning systems that may be used as an alternative to traditional electrically powered air-conditioning systems in…
Abstract
This study has covered many types of solar-powered air-conditioning systems that may be used as an alternative to traditional electrically powered air-conditioning systems in order to reduce energy usage. Solar adsorption air cooling is a great alternative to traditional vapor compression air-conditioning. Solar adsorption has several advantages over traditional vapor-compression systems, including being a green cooling technology which uses solar energy to drive the cycle, using pure water as an eco-friendly HFC-free refrigerant, and being mechanically simple with only the magnetic valves as moving parts. Several advancements and breakthroughs have been developed in the area of solar adsorption air-conditioners during the previous decade. However, further study is required before this technology can be put into practise. As a result, this book chapter highlights current research that adds to the understanding of solar adsorption air-conditioning technologies, with a focus on practical research. These systems have the potential to become the next iteration of air-conditioning systems, with the benefit of lowering energy usage while using plentiful solar energy supplies to supply the cooling demand.
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Praveen Kumar Gupta, A. Yildirim and K.N. Rai
This purpose of this paper is to find the approximate analytical solutions of a multidimensional partial differential equation such as Helmholtz equation with space fractional…
Abstract
Purpose
This purpose of this paper is to find the approximate analytical solutions of a multidimensional partial differential equation such as Helmholtz equation with space fractional derivatives α,β,γ (1<α,β,γ≤2). The fractional derivatives are described in the Caputo sense.
Design/methodology/approach
By using initial values, the explicit solutions of the equation are solved with powerful mathematical tools such as He's homotopy perturbation method (HPM).
Findings
This result reveals that the HPM demonstrates the effectiveness, validity, potentiality and reliability of the method in reality and gives the exact solution.
Originality/value
The most important part of this method is to introduce a homotopy parameter (p), which takes values from [0,1]. When p=0, the equation usually reduces to a sufficiently initial form, which normally admits a rather simple solution. When p→1, the system goes through a sequence of deformations, the solution for each of which is close to that at the previous stage of deformation. Here, we also discuss the approximate analytical solution of multidimensional fractional Helmholtz equation.
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COVID entered the world in 2019 as a pandemic and the intensity of this health crisis is only increasing in several regions. Therefore, it is critical to study and detect the…
Abstract
COVID entered the world in 2019 as a pandemic and the intensity of this health crisis is only increasing in several regions. Therefore, it is critical to study and detect the public's frame of mind, government and economists' perception regarding the COVID crisis, as well as the primary worries that the public has expressed, and how this evolves over time. Responsive measures towards COVID-19 from the Indian economy have been explored as a key objective. Moreover, efforts have been made to explore recovery in India through economists and policymakers. Data have been explored through online interviews of key economists which were published in leading newspapers and covered through media channels such as NDTV, CNBC, etc. Moreover, various newspapers and reports were explored to understand government initiatives to address COVID-19 in India. The study's findings show how essential economic recovery from the second wave is in India, and how it may be achieved by strong fiscal and monetary policies, as well as specific attention to impoverished households, small and micro-businesses and increased employment. The short-term focus of the developing economic strategy must be on giving crisis relief to the most unprotected segments of society since long-term system stimulation is impossible.
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Victor Saha, Venkatesh Mani and Praveen Goyal
The purpose of this paper is to review the extant literature on value co-creation using bibliometric analysis in an attempt to gauge the evolving journey of this concept since its…
Abstract
Purpose
The purpose of this paper is to review the extant literature on value co-creation using bibliometric analysis in an attempt to gauge the evolving journey of this concept since its inception in the business and management domain.
Design/methodology/approach
Based on a bibliometric analysis of 458 research articles retrieved from the Thompson Reuters’ Web of Science Core Collection™ for the period of 2004–July 2018, this study carries out the following bibliometric techniques: citation analysis, co-citation analysis and co-occurrence of author keywords.
Findings
The study reveals the nature and direction of research that the field of value co-creation has taken over the past decade. Three significant areas emerge out as prominent themes in the literature of value co-creation: value co-creation in the context of customer service, value co-creation in the context of enhancing brand value and value co-creation for marketing of services through the adoption of service logic. Apart from these, the study also reveals the most influential authors, journals, institutions and countries pertaining to the research on value co-creation, along with the possible future directions of research in this area.
Research limitations/implications
This study has limitations in terms of usage of a single database and its inability to contextualize the citation structure of articles revealed from the review.
Practical implications
This study would enable practitioners gain a comprehensive understanding of the concept of value co-creation that they can eventually adopt as a strategy for enhancing their business growth, customer satisfaction and customer loyalty.
Originality/value
This study identifies the intellectual structure of the value co-creation literature and maps out the gradual advancement of the field over the years.