The study attempts to analyze the trends and patterns in executive compensation for 30 companies,... more The study attempts to analyze the trends and patterns in executive compensation for 30 companies, which are among the largest listed companies on Bombay Stock Exchange over the past 13 years. It tries to establish link between executive remuneration, corporate governance and firm performance for the sample companies. The analysis portrays an increasing trend of compensation to management especially after 2011. Further, the results of our empirical analysis confirm positive relationship between executive compensation and certain firm performance variables (Sales, long-term EPS and Dividends). However, our model also indicates negative relationship between short-term EPS and executive compensation. For corporate governance variables and executive compensation our model indicates inverse relationship between executive compensation, board size and board meetings. Our findings partially support the positive relationship between executive compensation and firm performance and weak governance mechanism for our sample firms.
The present study tries to compare the corporate governance disclosure levels of private and publ... more The present study tries to compare the corporate governance disclosure levels of private and public sector banks in Indian context. Using the Corporate Governance reports for a sample of Indian Banks listed on BSE BANKEX index, we review the Corporate Governance practices of Indian Banks on various important governance parameters like (i) Board Independence, (ii) Board Meetings, (iii) Executive compensation, (iv) Shareholders grievance committee, and (v) Disclosures which include Code of conduct, CEO/CFO Certification, Whistle Blower Policy, Penalty, Compliance officer information, etc for the year 2013. We then compare the Corporate Governance practices of Public and Private sector banks using the univariate parametric t-test, non-parametric Mann Whitney u test for comparing means of different parameters. The results of the study will provide insights about the differences in the quality of corporate governance practices adopted by private and public sector banks and will not only contribute to the current debate on CG practices of Public and Private Banks but also to the broader literature attempting to measure Corporate Governance.
The paper empirically investigates the determinants of R&D intensity for Indian firms. It stu... more The paper empirically investigates the determinants of R&D intensity for Indian firms. It studies the relationship between R&D intensity, corporate governance, ownership structure and various important firm characteristics variables by employing panel least square and quantile regression approach. Our results confirm positive relationship between firm performance, board independence, director’s remuneration and export intensity. On the other hand, we find negative association between firms leverage and ownership by foreign promoters. The findings yield important implications on the interlinkages between R&D intensity with governance structure, ownership structure and other firm characteristics. With regards to corporate governance variables, it is evident that better governed companies invest more towards R&D investments therefore, policy makers should promote better governance structures in terms of adequate independent members on the board, adequate remuneration to board members etc. Further, the documented positive relationships between firm performance, export intensity and R&D intensity for firms also have important implications for the level of R&D investments in future years as during the current scenario of trade wars/restrictions when both profitability of firms, exports are expected to decline, leading to decline in future R&D expenditure in the country. Furthermore, the negative relationship with respect to foreign promoters holding should be checked by mandating companies with higher foreign promoters shareholding to invest in R&D expenditure.
The relationship between CSR and firm performance has been widely studied in the context of devel... more The relationship between CSR and firm performance has been widely studied in the context of developed nations; however, empirical work on this issue is limited in case of developing nations like India. In this paper, we test the relationship between corporate social responsibility and different firm characteristics for MNC and Non-MNC Indian firms. We have tried to make a comparison between MNCs and Non-MNCs in their CSR activities. The empirical analysis was conducted using different parametric and non-parametric estimation techniques. The results show that CSR does not have significant relationship with firm performance measures of the sampled firms. These results are contradictory to the accumulating body of empirical studies which support positive impact of CSR on financial performance. Further, the results indicate positive relationship of CSR with size but negative relation with leverage and firm age confirming that larger, younger and less levered firms are highly active towards CSR in India than their counterparts.
The purpose of the article is threefold: (a) to analyze the causality between board independence ... more The purpose of the article is threefold: (a) to analyze the causality between board independence and performance of the firm, (b) to examine the impact of board independence on financial performance, and (c) to ascertain whether the legislation of at least 50% of independent directors (IDs) influences the performance of the firm. We have employed a panel data framework for a sample of 442 Indian companies from 2013 to 2019. The estimation analysis has been conducted using panel Granger causality test, fixed effects method, and system generalized methods of moments. We further test whether the relationship differs across two categories of companies: one having IDs up to 50% and more; and second, the proportion is less than 50%. The results of our dynamic panel data analysis indicate that the ratio of IDs is found to have a positive association with the firm performance. Further, we found that firms with more than 50% IDs have a significantly higher firm performance than firms having ...
The hospitality sector has been one of the worst-hit industries due to the onset of the COVID-19 ... more The hospitality sector has been one of the worst-hit industries due to the onset of the COVID-19 pandemic, followed by nationwide lockdowns and curfews. Further, other factors, including the Russia–Ukraine war, commodity price rise, and recession, have acted as hurdles in the slow recovery process. Policy experts at different forums have advocated for proactive and robust measures by the government to reduce adverse impacts during these unprecedented times. To design such measures, determining the firm-specific factors that significantly impact their profitability is essential. In this context, this study tries to understand firm-specific factors that affect the hospitality sector’s performance in India. It also explores whether the firm-specific characteristics have changed over time due to changes in political regimes and differ between private and publicly listed companies. Using a sample of 440 public and private hospitality firms for 11 years (2010–2020) and after controlling f...
The paper aims to study the market efficiency, unbiasedness among Guar seed futures contracts tra... more The paper aims to study the market efficiency, unbiasedness among Guar seed futures contracts traded at National Commodity & Derivatives Exchange Ltd (NCDEX). The study has tested the market efficiency and unbiasedness with different maturities using cointegration analysis, and short-term market efficiency, using an error correction model and GARCH-MECM. The results suggest that futures market for guar seed is inefficient and biased in both short run and long run for all maturity periods, which may be caused by over-speculation or market manipulation. The results indicate an urgent need to provide more powers to FMC to regulate the market and penalize any insider trading, cartelization and price manipulations.
The paper aims to study the market efficiency, unbiasedness among seventeen agricultural commodit... more The paper aims to study the market efficiency, unbiasedness among seventeen agricultural commodities futures contracts traded at National Multi-Commodity Exchange of India ltd. (NMCE). The paper uses a two step approach by first testing long run relationship using Johansen's cointegration approach and subsequently, the dynamic OLS approach proposed by Stock and Watson (1993) was used to estimate the coefficients in the cointegration equation, followed by Wald test to test the statistical significance of each coefficient. The Wald chi-square test statistics indicate that futures markets are not efficient in predicting the future ready prices. The results also testify the fact that the futures contracts are not perfect hedge against the variations in ready prices. The results have important implications on the previous research done on the same issue which have simply tested the efficiency on the basis of cointegration results, ignoring the restrictions on cointegrating vectors ma...
The study attempts to analyze the trends and patterns in executive compensation for 30 companies,... more The study attempts to analyze the trends and patterns in executive compensation for 30 companies, which are among the largest listed companies on Bombay Stock Exchange over the past 13 years. It tries to establish link between executive remuneration, corporate governance and firm performance for the sample companies. The analysis portrays an increasing trend of compensation to management especially after 2011. Further, the results of our empirical analysis confirm positive relationship between executive compensation and certain firm performance variables (Sales, long-term EPS and Dividends). However, our model also indicates negative relationship between short-term EPS and executive compensation. For corporate governance variables and executive compensation our model indicates inverse relationship between executive compensation, board size and board meetings. Our findings partially support the positive relationship between executive compensation and firm performance and weak governance mechanism for our sample firms.
The present study tries to compare the corporate governance disclosure levels of private and publ... more The present study tries to compare the corporate governance disclosure levels of private and public sector banks in Indian context. Using the Corporate Governance reports for a sample of Indian Banks listed on BSE BANKEX index, we review the Corporate Governance practices of Indian Banks on various important governance parameters like (i) Board Independence, (ii) Board Meetings, (iii) Executive compensation, (iv) Shareholders grievance committee, and (v) Disclosures which include Code of conduct, CEO/CFO Certification, Whistle Blower Policy, Penalty, Compliance officer information, etc for the year 2013. We then compare the Corporate Governance practices of Public and Private sector banks using the univariate parametric t-test, non-parametric Mann Whitney u test for comparing means of different parameters. The results of the study will provide insights about the differences in the quality of corporate governance practices adopted by private and public sector banks and will not only contribute to the current debate on CG practices of Public and Private Banks but also to the broader literature attempting to measure Corporate Governance.
The paper empirically investigates the determinants of R&D intensity for Indian firms. It stu... more The paper empirically investigates the determinants of R&D intensity for Indian firms. It studies the relationship between R&D intensity, corporate governance, ownership structure and various important firm characteristics variables by employing panel least square and quantile regression approach. Our results confirm positive relationship between firm performance, board independence, director’s remuneration and export intensity. On the other hand, we find negative association between firms leverage and ownership by foreign promoters. The findings yield important implications on the interlinkages between R&D intensity with governance structure, ownership structure and other firm characteristics. With regards to corporate governance variables, it is evident that better governed companies invest more towards R&D investments therefore, policy makers should promote better governance structures in terms of adequate independent members on the board, adequate remuneration to board members etc. Further, the documented positive relationships between firm performance, export intensity and R&D intensity for firms also have important implications for the level of R&D investments in future years as during the current scenario of trade wars/restrictions when both profitability of firms, exports are expected to decline, leading to decline in future R&D expenditure in the country. Furthermore, the negative relationship with respect to foreign promoters holding should be checked by mandating companies with higher foreign promoters shareholding to invest in R&D expenditure.
The relationship between CSR and firm performance has been widely studied in the context of devel... more The relationship between CSR and firm performance has been widely studied in the context of developed nations; however, empirical work on this issue is limited in case of developing nations like India. In this paper, we test the relationship between corporate social responsibility and different firm characteristics for MNC and Non-MNC Indian firms. We have tried to make a comparison between MNCs and Non-MNCs in their CSR activities. The empirical analysis was conducted using different parametric and non-parametric estimation techniques. The results show that CSR does not have significant relationship with firm performance measures of the sampled firms. These results are contradictory to the accumulating body of empirical studies which support positive impact of CSR on financial performance. Further, the results indicate positive relationship of CSR with size but negative relation with leverage and firm age confirming that larger, younger and less levered firms are highly active towards CSR in India than their counterparts.
The purpose of the article is threefold: (a) to analyze the causality between board independence ... more The purpose of the article is threefold: (a) to analyze the causality between board independence and performance of the firm, (b) to examine the impact of board independence on financial performance, and (c) to ascertain whether the legislation of at least 50% of independent directors (IDs) influences the performance of the firm. We have employed a panel data framework for a sample of 442 Indian companies from 2013 to 2019. The estimation analysis has been conducted using panel Granger causality test, fixed effects method, and system generalized methods of moments. We further test whether the relationship differs across two categories of companies: one having IDs up to 50% and more; and second, the proportion is less than 50%. The results of our dynamic panel data analysis indicate that the ratio of IDs is found to have a positive association with the firm performance. Further, we found that firms with more than 50% IDs have a significantly higher firm performance than firms having ...
The hospitality sector has been one of the worst-hit industries due to the onset of the COVID-19 ... more The hospitality sector has been one of the worst-hit industries due to the onset of the COVID-19 pandemic, followed by nationwide lockdowns and curfews. Further, other factors, including the Russia–Ukraine war, commodity price rise, and recession, have acted as hurdles in the slow recovery process. Policy experts at different forums have advocated for proactive and robust measures by the government to reduce adverse impacts during these unprecedented times. To design such measures, determining the firm-specific factors that significantly impact their profitability is essential. In this context, this study tries to understand firm-specific factors that affect the hospitality sector’s performance in India. It also explores whether the firm-specific characteristics have changed over time due to changes in political regimes and differ between private and publicly listed companies. Using a sample of 440 public and private hospitality firms for 11 years (2010–2020) and after controlling f...
The paper aims to study the market efficiency, unbiasedness among Guar seed futures contracts tra... more The paper aims to study the market efficiency, unbiasedness among Guar seed futures contracts traded at National Commodity & Derivatives Exchange Ltd (NCDEX). The study has tested the market efficiency and unbiasedness with different maturities using cointegration analysis, and short-term market efficiency, using an error correction model and GARCH-MECM. The results suggest that futures market for guar seed is inefficient and biased in both short run and long run for all maturity periods, which may be caused by over-speculation or market manipulation. The results indicate an urgent need to provide more powers to FMC to regulate the market and penalize any insider trading, cartelization and price manipulations.
The paper aims to study the market efficiency, unbiasedness among seventeen agricultural commodit... more The paper aims to study the market efficiency, unbiasedness among seventeen agricultural commodities futures contracts traded at National Multi-Commodity Exchange of India ltd. (NMCE). The paper uses a two step approach by first testing long run relationship using Johansen's cointegration approach and subsequently, the dynamic OLS approach proposed by Stock and Watson (1993) was used to estimate the coefficients in the cointegration equation, followed by Wald test to test the statistical significance of each coefficient. The Wald chi-square test statistics indicate that futures markets are not efficient in predicting the future ready prices. The results also testify the fact that the futures contracts are not perfect hedge against the variations in ready prices. The results have important implications on the previous research done on the same issue which have simply tested the efficiency on the basis of cointegration results, ignoring the restrictions on cointegrating vectors ma...
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