Amitava Mondal and Santanu Kumar Ghosh
The purpose of this study is to investigate empirically the relationship between intellectual capital and financial performance of 65 Indian banks for a period of ten years from…
Abstract
Purpose
The purpose of this study is to investigate empirically the relationship between intellectual capital and financial performance of 65 Indian banks for a period of ten years from 1999 to 2008.
Design/methodology/approach
Reserve Bank of India's database and Annual reports, especially the profit and loss accounts and balance sheets of the banks for the relevant years have been used to obtain the data. Value added intellectual coefficient (VAIC™) method is applied for measuring the value based performance of banks. Return on assets (ROA) and return on equity (ROE) are used to measure the profitability and productivity of Indian banks, measured by assets turnover ratio (ATO). The intellectual capital (human capital and structural capital) and physical capital of selected banks have been analyzed and their impact on corporate performance has been measured using multiple regression technique.
Findings
The analysis indicates that the relationships between the performance of a bank's intellectual capital, and financial performance indicators, namely profitability and productivity, are varied. The study results suggest that banks’ intellectual capital is vital for their competitive advantage.
Research limitations/implications
The study uses only 65 leading Indian banks, including foreign banks operating in India. The value added intellectual coefficient (VAIC™), introduced by Pulic, is used in this study as a basic methodology to measure the IC performance of banks.
Practical implications
The VAIC™ method can be used as an important tool by the decision makers in the knowledge economy to integrate the intellectual capital in the decision making process.
Originality/value
This is one of the first empirical researches in India that examines the impact of IC on financial performance of the Indian banking sector in the long term.
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Santanu Ghosh and Amitava Mondal
This paper seeks to estimate and analyze the relationship between intellectual capital and corporate conventional financial performance measures of Indian software and…
Abstract
Purpose
This paper seeks to estimate and analyze the relationship between intellectual capital and corporate conventional financial performance measures of Indian software and pharmaceutical companies for a period of five years from 2002 to 2006.
Design/methodology/approach
Annual reports, especially the profit and loss accounts and balance sheets of the selected companies for the relevant years have been used to obtain the data. International literatures on intellectual capital with specific reference to measurement tools and techniques have been reviewed. Value Added Intellectual CoefficientTM (VAIC) method is applied for measuring the value based performance of the companies. Corporate conventional performance financial measures used in this analysis are: profitability; productivity; and market valuation. It is an empirical study using multiple regression analysis for the data analysis. The intellectual capital (human capital and structural capital) and physical capital of the arbitrarily selected companies have been analyzed and their impact on corporate performance has been measured using multiple regression technique.
Findings
The analysis indicates that the relationships between the performance of a company's intellectual capital and conventional performance indicators, namely, profitability, productivity and market valuation, are varied. The findings suggest that the performance of a company's intellectual capital can explain profitability but not productivity and market valuation in India.
Research limitations/implications
The study has been conducted on a small sample of 80 companies belonging to the India software and pharmaceutical sectors. For a better understanding, a larger data set covering all prominent industry segments will be helpful.
Practical implications
Intellectual capital is an area of interest to numerous parties, e.g. shareholders, managers, policy makers, institutional investors. This paper throws some light on the new performance indicator, which Indian managers can use in order to evaluate the corporate performance and benchmark it with global standards. This is useful particularly in the context of the “knowledge economic” environment.
Originality/value
The paper represents a pioneering attempt to understand the implications of the business performance of the Indian software and pharmaceutical sectors from an intellectual resource perspective.
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Qian Long Kweh, Irene Wei Kiong Ting, Wen-Min Lu and Hanh Thi My Le
Consensus on how intellectual capital (IC) affects corporate performance is limited because of various measurement models of IC and corporate performance. This study thus aims to…
Abstract
Purpose
Consensus on how intellectual capital (IC) affects corporate performance is limited because of various measurement models of IC and corporate performance. This study thus aims to further the debate on the relationship between IC and corporate performance from the perspectives of nonlinearity, the capital values of IC and the use of a holistic measure of corporate performance.
Design/methodology/approach
Using 1,395 firm-year observations derived from Vietnamese listed companies from 2010 to 2018, this study focuses on (1) presenting an IC model benchmarked on value-creating expenses; (2) using a directional distance function (DDF)-based stochastic nonparametric envelopment of data (StoNED) framework to scrutinize multiple performance indicators and the capital values of people, structures and relationships simultaneously; and (3) adopting firm-year cluster-robust regressions to analyze the nonlinear association between IC and corporate performance empirically with an appropriate U test.
Findings
Results suggest that human capital (HC), structural capital (SC) and relational capital (RC) are the main contributors of high corporate efficiency, whereas only HC and RC contribute to high corporate profitability. These results are absent when this study employs the conventional data envelopment analysis (DEA), which is also a multidimensional framework, as the dependent variable. More importantly, IC and its components can improve corporate performance, namely, both corporate efficiency and corporate profitability up to a critical point, after which the effects would drop.
Practical implications
Overall, this study highlights not only the need to invest in IC but also its associated costs. That is, policymakers also need to note the marginal cost of investing in IC, which may in the end outweigh the benefits from IC.
Originality/value
This study extends IC-related studies by investigating the nonlinear relationship between IC and corporate performance. Moreover, the value of this study also lies in the multidimensional DDF-based StoNED framework.
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Santanu Mandal, Rathin Sarathy, Venkateshwar Rao Korasiga, Sourabh Bhattacharya and Surajit Ghosh Dastidar
The purpose of this paper is to investigate the inter-relationship among dominant supply chain capabilities of collaboration, flexibility, velocity and visibility and how the same…
Abstract
Purpose
The purpose of this paper is to investigate the inter-relationship among dominant supply chain capabilities of collaboration, flexibility, velocity and visibility and how the same influence supply chain resilience (SCRES) and supply chain performance. Further, the aim is to explore the relationship between integrated logistics capabilities and supply chain capabilities.
Design/methodology/approach
The proposed hypotheses were tested with survey data collected from 339 supply chain professionals. The collected data were then analyzed with confirmatory factor analysis, and the proposed relationships were tested with structural equation modeling.
Findings
Integrated logistics capabilities were found to positively influence supply chain collaboration and supply chain visibility. There is a positive influence of each of collaboration, flexibility, visibility and velocity on SCRES. Further, each of these supply chain capabilities positively influences each other to a greater extent. Further, SCRES was found to have a positive influence on supply chain performance.
Research limitations/implications
Like many other cross sectional studies, this study also suffers from data collected from single respondent per firm.
Originality/value
The study is significant and holds immense importance for managers and supply chain practitioners because it has suggested them to focus on core supply chain capabilities, for example, collaboration, flexibility, visibility and visibility for developing SCRES. Along with this, it undersigned the growing importance and empirical influence of integrated logistics capabilities in developing these supply chain capabilities and also the positive influence of resilience on supply chain performance.
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This study aims to examine the impact of multidimensional perfectionism on academic procrastination among university students in India and to explore whether gender plays any role…
Abstract
Purpose
This study aims to examine the impact of multidimensional perfectionism on academic procrastination among university students in India and to explore whether gender plays any role in this relationship.
Design/methodology/approach
Data were collected from a sample of 90 female and 60 male students, aged 18-23 years, enrolled in full-time bachelor’s and master’s programs in a central university in the National Capital Region of India and analyzed adopting different statistical techniques.
Findings
The findings indicated that academic procrastination positively correlates with all the three dimensions of perfectionism – self-oriented perfectionism, other-oriented perfectionism and socially prescribed perfectionism. The different dimensions of perfectionism also significantly predict academic procrastination. Gender differences exist with regard to other-oriented perfectionism, socially prescribed perfectionism and academic procrastination.
Research limitations/implications
The results highlight that the different dimensions of perfectionism play a critical role in shaping academic procrastination among university students, but this trajectory often differs between male and female students. Further research among a larger student audience would help concretize the study conclusions.
Originality/value
This study extends the extant literature by examining the predictive relationships between the different dimensions of perfectionism and academic procrastination and the gender differences that exist with regard to academic procrastination and the different dimensions of perfectionism among university students, especially within the context of a developing country (i.e., India).
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Santanu Mandal and Surajit Ghosh Dastidar
The purpose of this paper is to investigate the efficiency analysis of the Indian general insurance sector using data envelopment analysis (DEA) and subsequently assess the impact…
Abstract
Purpose
The purpose of this paper is to investigate the efficiency analysis of the Indian general insurance sector using data envelopment analysis (DEA) and subsequently assess the impact (if any) of the global slowdown on the performance of the allied sector.
Design/methodology/approach
The paper aims to analyze the operating performance of 12 general insurance companies in India between 2006-2007 and 2009-2010 using DEA based on secondary data collected from Insurance Regulatory and Development Authority Annual Reports.
Findings
Findings clearly indicate that the global economic slowdown has severely affected the performance of the private sector companies; while the public sector companies exhibited relatively lesser variation in performance levels.
Research limitations/implications
The methodology employed in the study estimates relative efficiencies without assuming any functional form; as a result the proper comparison of input utilized with the output produced is not possible. Several other tools like Malmquist Index and two-stage procedure have not been used.
Originality/value
The study brings into light the operating characteristics and efficiencies of the Indian general insurance sector during the global slowdown and therefore holds practical value for policy makers and practitioners as well as for the decision makers of the firms employed in the study.
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Mainak Bhattacharjee, Debashis Mazumdar and Santanu Bisai
Santanu Mitra, Donald R. Deis and Mahmud Hossain
The purpose of this paper is to examine the empirical association between expected and unexpected audit fees and reported earnings quality for a sample of Big 4(5) client…
Abstract
Purpose
The purpose of this paper is to examine the empirical association between expected and unexpected audit fees and reported earnings quality for a sample of Big 4(5) client companies over a period from 2000 to 2005.
Design/methodology/approach
The paper employs a cross‐sectional multiple regression model for a sample of 1,142 firms (6,852 firm‐years) covering a time period of six years comprising 2000 to 2005 to evaluate the relationship between both expected and unexpected audit fees and performance‐adjusted discretionary accruals that are estimated from the extended version of the modified Jones model.
Findings
The paper finds that both expected and unexpected audit fees are associated with an increase in earnings quality, as indicated by the reduction of both absolute and signed discretionary accrual adjustments. Furthermore, in some analyses these associations are found to persist into the post‐Sarbanes‐Oxley Act (SOX) period. The main results hold in sensitivity tests that involve using both the absolute and signed unexpected audit fees as independent variables and in tests that use both the absolute and signed current accruals as dependent variables of interest.
Research limitations/implications
The results suggest that audit efforts consistent with client‐specific business attributes and reflected in expected audit fees mitigate financial reporting biases, the effect of which is incrementally observable to some extent in the post‐SOX period as well. Unexpected audit fees, a proxy for fee surprise arising out of auditor‐client‐specific contractual situations, are also associated with an increase in earnings quality. The association is, in some analyses, significant for the post‐SOX years. The test results do not exhibit any evidence of auditor independence problems associated with high expected and unexpected audit fees; a result that supports the “reputation protection” argument for auditors' reporting decisions.
Originality/value
In a time period surrounding the introduction of SOX when nonaudit consulting services have severely been restricted, and the audit fee growth for publicly traded companies have been dramatic, an analysis of this nature potentially produces valuable insights into the auditors' fee decision, audit efforts, and auditor independence issue. The study looks into a new perspective concerning the relationship between audit fees and financial reporting practice over the two regulatory regimes, pre‐ and post‐SOX.
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– The purpose of this paper is to report a comprehensive review of supply chain resilience and identify several research issues.
Abstract
Purpose
The purpose of this paper is to report a comprehensive review of supply chain resilience and identify several research issues.
Design/methodology/approach
The articles which have been published in international journals in the period 1980-2012 were collected by using databases like ISI Web of Knowledge, ScienceDirect and EBSCO. The articles were scrutinized based on relevance to context and value addition. The articles contributing significantly in the domain of supply chain resilience were selected for final review and various issues were identified.
Findings
The paper argues that though several conceptual to few empirical works been done on supply chain resilience in recent years, there is large scope for research to address the issues in risk management, supply chain design, sourcing strategies, green practices, sustainable competitive advantage, supply chain security, supply chain performance and supply chain resilience.
Research limitations/implications
The insights deduced in the paper are primarily based on 45 articles selected for critical review and analysis in the domain of supply chain resilience and hence should be interpreted only as key concerns in the area.
Originality/value
The paper reports an evaluation of 45 key articles reported in the domain of supply chain resilience and indicates the research opportunities in the area.