Passive investing has established itself as the dominant force in the world of professionally managed assets, surpassing the concept of index funds. Its meteoric rise is fueled…
Abstract
Purpose
Passive investing has established itself as the dominant force in the world of professionally managed assets, surpassing the concept of index funds. Its meteoric rise is fueled by investors’ preference for its dual benefits of strong diversification and low cost. A comprehensive study of the economic model, addressed areas and market structure has not yet been conducted, despite the existence of numerous studies on more specific topics. To address this gap, this paper examines 943 articles on passive investing published between 1998 and 2022 in SCOPUS and Web of Science.
Design/methodology/approach
The study utilizes the most pertinent tools for conducting a systematic review by the PRISMA framework. This article is the result of SLR and extensive bibliometric analysis. Contextualized systematic literature review is used to screen and select bibliographic data, which is then subjected to a variety of bibliometric analyses. The study provides a bibliometric overview of works on passive investment research that are indexed in Scopus and Web of Science. Bibliometrix, VoS Viewer and Cite Space are the tools used to conduct content and network analysis, to ascertain the present state of research, as well as its focus and direction.
Findings
Our exhaustive analysis yields important findings. One, the previous decade has witnessed a substantial increase in the number of publications and citations; in particular, the inter-disciplinary and international scope of related research has expanded; Second, the top three clusters on “active versus passive funds,” “price discovery and market structures” and “exchange-traded funds (ETFs) as an alternative” account for more than fifty percent of the domain’s knowledge; Third, “Leveraged ETFs (LETFs)” and “environmental, social and governance (ESG)” are the two emerging themes in the passive investing research. Fourth, despite its many benefits, passive investing is not suitable for everyone. To get the most out of what passive investing has to offer, investors, intermediaries and regulators must all exercise sufficient caution. Our study makes a substantial contribution to the field by conducting a comprehensive bibliometric analysis of the existing literature, highlighting key findings and implications, as well as future research directions.
Research limitations/implications
While the study contributes significantly to the field of knowledge, it has several limitations that must be considered when interpreting its findings and implications. With our emphasis on academic journals, the study analyzed only peer-reviewed journal articles, excluding conference papers, reports and technical articles. While we are confident that our approach resulted in a comprehensive and representative database, our reliance on Elsevier Scopus and Web of Science may have resulted in us overlooking relevant work accessible only through other databases. Additionally, specific bibliometric properties may not be time-stable, and certain common distribution patterns of the passive investing literature may still be developing.
Practical implications
With this study, it has been possible to observe and chart the high growth trajectory of passive investing research globally, especially post-US subprime crisis. Despite the widespread adoption of passive investing as an investment strategy, it is not a one-size-fits-all proposition. Market conditions change constantly, and it frequently requires an informed eye to determine when and how much to shift away from active investments and toward passive ones. Currency ETFs enable investors to implement a carry trade strategy in their portfolios; however, as a word of caution, currency stability and liquidity can play a significant role in international ETFs. Similarly, LETFs may be better suited for dynamic strategies and offer less value to a long-term investor. Lastly, the importance of investor education cannot be underestimated in the name of the highly diversified portfolio when using passive alternatives, for which necessary efforts are required by regulators and investors alike.
Social implications
The inexorable trend to passive investing creates numerous issues for fund management, including fee and revenue pressure, which forces traditional managers to seek new revenue streams, such as illiquid and private assets, which also implies increased portfolio risk. Additionally, the increased transparency and efficiency associated with the ETF market indicates that managers must rethink the entire value chain, beginning with technology and the way investments interact. Passive investments have triggered changes in market structure that are still not fully understood or factored in. Active management and a range of valuation opinions on whether a price is “too low” or “too high” provide much-needed depth to a market as it attempts to strike a delicate balance between demand and supply forces, ensuring liquidity at all price points.
Originality/value
I hereby certify that I am the sole author of this paper and that no part of this manuscript has been published or submitted for publication.
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Priya Malhotra and Pankaj Sinha
Mutual funds are the second most preferred investment option in India and have garnered considerable research interest. The focus of Indian studies thus far has been restricted to…
Abstract
Purpose
Mutual funds are the second most preferred investment option in India and have garnered considerable research interest. The focus of Indian studies thus far has been restricted to the bottom-up approach of investing which rewards a fund manager for picking winner stocks and generates superior returns. While changing portfolio allocation as per varying macro-trends has been instrumental in generating superior returns, it has not been given the desired attention. This study addresses this important research gap.
Design/methodology/approach
The authors analyze the industry selection ability of the fund manager on a robust sample by decomposing alpha into alpha due to industry selection and alpha attributable to stock selection. Alpha estimates are computed on a robust sample of 34 open-ended Indian equity mutual funds for a 10-year duration 2011–2020 using three base models of asset pricing – single-factor, four-factor and five-factor alpha under panel data methodology.
Findings
The study leads us to four major findings. One, industry selection explains more than two-fifth of the alpha both in cross-section and time series of returns; two, industry selection exhibits persistence for more than four quarters across asset pricing model; third, younger funds have level playing when alpha from picking right industries is concerned; four, broad industry allocation continues to explain superior returns as sector allocation undergoes consolidation during ongoing COVID-19 pandemic and funds increase exposure to defensive stocks, consistent with folio allocations as per macroeconomic conditions.
Research limitations/implications
The authors find strong evidence of persistence in the case of alpha attributable to the industry selection component, and the findings are consistent with the persistence results reported in the empirical literature. While some funds excel in stock-picking skills and others excel in picking the right industries, both skills together make for winner funds that attract larger investor flows as investors chase superior performance. The authors also find no evidence of diseconomies of scale in the case of industry allocation alpha generated by the fund managers.
Practical implications
The results suggest a fresh approach for investors while making mutual fund investment decisions; the investors can achieve superior returns by assessing industry selection skills as it tends to provide a more holistic picture concerning a perennial question – why some funds outperform and continue to contribute to investor's wealth?
Social implications
Mutual funds have become a favored investment option for Indian investors more so as a disciplined investment option owing to dismal financial literacy rates. The study throws light on a relatively unaddressed dimension of choosing winner funds. The significance of right sector allocation assumed even more significance with the onset of the pandemic which lends further credence to the findings of the study.
Originality/value
Research has been conducted on secondary data extracted from a well-cited database for Indian mutual funds. Empirical analysis and conclusion drawn are based on authentic statistical analysis and adds to the existing literature.
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Rania Miniesy, Engy Elshahawy and Hadia Fakhreldin
This study aims to examine the impact of social media (SM) on the creation of digital entrepreneurship by female (irrespective of age) and youth male (aged 18–29 years…
Abstract
Purpose
This study aims to examine the impact of social media (SM) on the creation of digital entrepreneurship by female (irrespective of age) and youth male (aged 18–29 years) entrepreneurs, investigate if SM empowers those entrepreneurs and compare the empowerment characteristics between female and youth male entrepreneurs before and after starting their businesses.
Design/methodology/approach
Self-assessment questionnaires were collected from a sample of 408 Egyptian female and youth male digital entrepreneurs from Greater Cairo, whose businesses had been operating for more than one year.
Findings
The research showed the following four results: Of the surveyed entrepreneurs, 95% asserted that without SM, they would not have started their businesses. Female and youth male entrepreneurs are empowered both on personal and relational levels, and women’s empowerment is more evident in the latter. Before digital entrepreneurship, youth males have significantly higher averages than female entrepreneurs in almost all empowerment characteristics, whereas after digital entrepreneurship, female entrepreneurs have significantly higher averages in making decisions related to investment, personal education and personal health, as well as those of other household members. Female entrepreneurs are relatively more empowered than youth males after digital entrepreneurship when each group is compared with its initial status.
Originality/value
This study’s originality stems from using a large sample of entrepreneurs, including youth males, not just females; employing a more structured, comprehensive measure of empowerment than found in the literature because it included the rarely used psychological dimension; considering more than one SM tool and comparing empowerment of females to that of youth males.
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Meenakshi Tomar and Priya Grover
Catering business is one of the most prominent and sought-after business investment in Dehradun, given the number of people who have a busy lifestyle. This fact gets more…
Abstract
Catering business is one of the most prominent and sought-after business investment in Dehradun, given the number of people who have a busy lifestyle. This fact gets more influential as Shugan Group is a catering company that serves the Dehradun market, a valley in the foothills of Shivalik Mountain Range in the state of Uttarakhand. Dehradun enjoys the benefit of being the Capital of Uttarakhand. The catering companies offer a lot of employment while promising delicious food to the stakeholders. Many individuals rely on this sector through food trucks, small shops or through full-fledged catering service providing companies. The group offers innovative and interesting food options for Doonites through their catering services including a lot of regional food options. Traditionally, the catering services in the town comprises handful options to deliver in the form of just food items. The catering services now involve a lot of service elements also including serving of the dishes, ambience and all inclusive of personnel factors. Many individuals assume that mess food is everyday kind of boring food. This assumption definitely holds true throughout the student community who are the major benefactors of the catering services as Dehradun is an education hub in the country. The new food offerings therefore face a lot of change as some of the ingredients definitely are the everyday incorporated ones. In the past couple of years, the catering services concept had gained acceptance for investment because of rise in demand for variety to be provisioned in the offerings as students hold diverse demographical differences. A lot of significance has been given to the likeness of various food options. Shugan Group wishes to inject a new life into the student catering market, leveraging the culinary skills of their handpicked chefs to develop creative new catering options. The advanced skills of chefs, industry insight of the group and an already existing market opportunity will allow the group to showcase its potential. Shugan Group is a start-up company. Marketing is critical to its success and future profitability. It offers creative gourmet for mess catering for a wide range of events and everyday eating options. The basic market need is high quality and creative food options. Having worked in the industry for the past few years and witnessing the dynamic environment including rise in disposable incomes, rise in consumer awareness, consumer’s keenness to eat new delicacies every day and desire to purchase quality food, the group has invested a lot in understanding what the consumers want. The performance of the group has been moderately incremental. After holding qualitative wisdom on the requirements of the market, Shugan Group is currently in the speculative stage in terms of being a caterer. The group wishes to reasonably understand the option that it should consciously adopt in terms of being modest about thinking only of financial benefit, with reasonable expansion every year only for the sake of being financially viable or build a strong brand and start getting people to increase word of mouth thereby bringing organic growth.
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This paper aims to understand two-wheeler consumer retention behavior by examining their perception of service evaluation variables (such as service quality, perceived product…
Abstract
Purpose
This paper aims to understand two-wheeler consumer retention behavior by examining their perception of service evaluation variables (such as service quality, perceived product quality and perceived consumer value), brand image and consumer empowerment that may trigger consumer satisfaction.
Design/methodology/approach
The study comprised a simple random sampling technique and conducted a survey (n = 284) using a structured questionnaire. The study analyzed the data using SPSS AMOS version 25 and PROCESS macros for analysis.
Findings
The study results show that service evaluation variables work best in leading to consumer retention in the two-wheeler industry. This relationship is further strengthened in the presence of consumer empowerment, brand image and consumer satisfaction.
Originality/value
The current study is one of the first studies in the two-wheeler industry that examine the relationship between service evaluation variables and consumer retention using direct, mediation and moderation effects.
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Priya Chaudhary, Mukta Rohtagi, Reetesh K. Singh and Simple Arora
The current study aims is to investigate the impact of leader's e-competencies on the emotional wellbeing of employees in GVTs. Also, the moderating role of a leader's emotional…
Abstract
Purpose
The current study aims is to investigate the impact of leader's e-competencies on the emotional wellbeing of employees in GVTs. Also, the moderating role of a leader's emotional intelligence in enhancing the wellbeing of the employees during the pandemic was explored.
Design/methodology/approach
A survey of 810 employees belonging to international IT companies was conducted. The conceptual model was hypothesized and validated using CFA and PL-SEM.
Findings
The three core e-competencies of leaders (e-communication skills, e-change management skills and e-technological skills) impacting the wellbeing of employees in the COVID pandemic were found. Also, emotional intelligence significantly moderated the association of leader's e-competencies and the wellbeing of employees.
Research limitations/implications
The study is limited to IT sector companies. Data were collected using the snowball sampling technique through a self-reported questionnaire. Future studies can explore the relationship between e-leadership and variables like job performance in other sectors.
Practical implications
A unique framework of “leaders” e-competencies and employees' wellbeing, moderated by emotional intelligence, has been proposed and validated. The present study is relevant for guiding the traditional leaders and managers transitioning to e-leaders due to the pandemic.
Originality/value
The current exploration is one of its kinds to understand the dynamics of study variables in international workplaces. Today, the majority of organizations are conducting their business through GVTs. Therefore, the emerging leaders have to display specific e-competencies to contribute to employees' wellbeing effectively.
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Purpose: Green consumerism is on the rise in the 21st century, impelling businesses to prioritise environmental awareness and expand eco-products to keep up with the growing…
Abstract
Purpose: Green consumerism is on the rise in the 21st century, impelling businesses to prioritise environmental awareness and expand eco-products to keep up with the growing demand. This research examines how social media (SM) and moral obligations (MO) affect consumer views and their propensity to make eco-friendly choices.
Methodology: Data were gathered from 508 participants using an adaptive questionnaire. The proposed model was tested using ‘structural equation modelling’.
Findings: The results show that electronic word-of-mouth (EWOM) and the intent to acquire green goods favourably impact consumer behaviour. MO positively influences attitudes and intentions to make green purchases (GPI), with attitudes acting as a mediator between MO and GPI.
Implications: This research is of utmost importance for marketers wanting to enhance their SM communication strategies to influence consumers’ opinions of green products and raise the possibility that they would make environmentally conscious purchases.
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Palima Pandey and Alok Kumar Rai
The present study aimed to explore the consequences of perceived authenticity in artificial intelligence (AI) assistants and develop a serial-mediation architecture specifying…
Abstract
Purpose
The present study aimed to explore the consequences of perceived authenticity in artificial intelligence (AI) assistants and develop a serial-mediation architecture specifying causation of loyalty in human–AI relationships. It intended to assess the predictive power of the developed model based on a training-holdout sample procedure. It further attempted to map and examine the predictors of loyalty, strengthening such relationship.
Design/methodology/approach
Partial least squares structural equation modeling (PLS-SEM) based on bootstrapping technique was employed to examine the higher-order effects pertaining to human–AI relational intricacies. The sample size of the study comprised of 412 AI assistant users belonging to millennial generation. PLS-Predict algorithm was used to assess the predictive power of the model, while importance-performance analysis was executed to assess the effectiveness of the predictor variables on a two-dimensional map.
Findings
A positive relationship was found between “Perceived Authenticity” and “Loyalty,” which was serially mediated by “Perceived-Quality” and “Animacy” in human–AI relational context. The construct “Loyalty” remained a significant predictor of “Emotional-Attachment” and “Word-of-Mouth.” The model possessed high predictive power. Mapping analysis delivered contradictory result, indicating “authenticity” as the most significant predictor of “loyalty,” but the least effective on performance dimension.
Practical implications
The findings of the study may assist marketers to understand the relevance of AI authenticity and examine the critical behavioral consequences underlying customer retention and extension strategies.
Originality/value
The study is pioneer to introduce a hybrid AI authenticity model and establish its predictive power in explaining the transactional and communal view of human reciprocation in human–AI relationship. It exclusively provided relative assessment of the predictors of loyalty on a two-dimensional map.
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Purpose: Leaders must come up with new ideas and motivate their people to welcome new beginnings if they are to adapt to the changing demands of the business. Organisations face…
Abstract
Purpose: Leaders must come up with new ideas and motivate their people to welcome new beginnings if they are to adapt to the changing demands of the business. Organisations face challenges in navigating the vast array of possibilities and choices in the volatility, uncertainty, complexity, and ambiguity (VUCA) world. This chapter explores various leadership styles, highlighting leadership initiatives in the context of (VUCA) during the COVID-19 pandemic.
Methodology: Secondary sources were used to collect information and data, including published articles, journals, newspapers, reports, books, and websites. The logical progression was used to comprehend the idea of VUCA leadership and strategies.
Findings of the Study: The VUCA accurately depicted the global landscape after COVID-19. It offered a valuable framework for examining strategy and leadership in a swiftly evolving world. To portray the dynamic characteristics of the corporate environment and to lead, many businesses use VUCA. Furthermore, this study highlights the VUCA leadership essential skills needed for effectively navigating VUCA circumstances.
Practical Implications: This study focuses on VUCA leadership practices and strategies in the workplace. The chapter outlines six key competencies: setting goals, being prepared, putting the customer’s needs first, flexibility and adaptation, decision-making, and collaboration and teamwork. These skills are essential for corporations to endure and thrive in VUCA circumstances. Corporate leaders are encouraged to integrate these skills into their repertoire, equipping themselves to confront challenges in a volatile environment.