Business Perspectives and Research, Ahead of Print.
The competitive business environment is new world order, which applies to firms worldwide. Corporate transparency and disclosure (CTD) impact the market valuation of the firms. However, the impacts of CTD on the value in the competitive business environment are not explored well, which is the current study’s aim. Panel data of 76 diversified Indian firms are gathered. The sample (76 firms) is shortlisted from the BSE 100 index for 10 years (2010–2019). The static panel data are applied to the data. It is found that competition negatively (the learners’ index is an inverse proxy of competition) moderates the CTD’s impact on the valuation of the firms. This finding implies that a low level of competition in the business environment enhances the CTD’s impact on the firm’s valuation more than a high level of competition. Moreover, no other study finds a nonlinear positive association of CTD on the valuation and the moderation by competition. The study’s unique outcomes that CTD is effective for valuation only when it reaches a threshold level (found through nonlinear association) and a low level of competition can enhance CTD’s impact on the valuation is a significant contribution of the study.
Author Archives: Shailesh Rastogi
Impact of Shareholders’ Activism on the Performance of Banks in India: A Panel Data Application
Business Perspectives and Research, Ahead of Print.
There is a widespread uncertainty regarding the usefulness of shareholder activism (SA) as a part of corporate governance for firms and banks. SA has wide acceptance across the board among all the stakeholders’ participation. Since banks are the backbone of any economy, any endeavor (support to SA) creating difficulty may boomerang. Such actions do more harm than good; therefore, it is imperative to determine whether SA is beneficial to the banks or not. In this study, the SA index is built for Indian banks. The data relating to bank performance and valuation is gathered for 2016–2019. Panel data econometrics is applied to determine the impact of SA on banks performance. Results reveal that SA impacts bank performance. Furthermore, transparency and disclosure significantly moderates the association of SA with the performance. However, SA is not impacting bank valuation. It is a unique study of its kind to provide insights on SA for the banking sector.
There is a widespread uncertainty regarding the usefulness of shareholder activism (SA) as a part of corporate governance for firms and banks. SA has wide acceptance across the board among all the stakeholders’ participation. Since banks are the backbone of any economy, any endeavor (support to SA) creating difficulty may boomerang. Such actions do more harm than good; therefore, it is imperative to determine whether SA is beneficial to the banks or not. In this study, the SA index is built for Indian banks. The data relating to bank performance and valuation is gathered for 2016–2019. Panel data econometrics is applied to determine the impact of SA on banks performance. Results reveal that SA impacts bank performance. Furthermore, transparency and disclosure significantly moderates the association of SA with the performance. However, SA is not impacting bank valuation. It is a unique study of its kind to provide insights on SA for the banking sector.