Business Perspectives and Research, Ahead of Print.
On March 14, 2022, Netflix’s shares were down to more than 50% by losing all its pandemic gains. Investors have faced the biggest loss; even big companies have withdrawn their shares from Netflix. The founders of Netflix, led by Reed Hastings and pioneered by Marc Randolph, were in trouble. Though Randolph pioneered Netflix, Reed Hastings, the co-founder and the most decisive leader of Netflix, has played a prominent place in its growth. He has been serving Netflix for two decades, and his leadership tactics have helped it to serve in critical times like COVID. The journey of Netflix from inception to today has involved leadership lessons, tactics, and change initiatives. The role of Hastings in every change is also notable for the growth of Netflix. Though the change is for the improvement of the company, all the changes would not give fruitful results. The team Hastings adaptation and customization of changes were remarkable. The growth of Netflix can be divided into three phases: Before, during, and after COVID-19, depending on the change initiatives taken by the company. The changes adopted before and during COVID have made Netflix a top brand in the streaming zone. But due to present losses, there is a quest for the next act in the company to recover the market share; otherwise, the future of Netflix would be questionable.
Category Archives: Business Perspectives and Research
Editorial
Business Perspectives and Research, Volume 12, Issue 2, Page 189-193, April 2024.
Editorial
Business Perspectives and Research, Ahead of Print.
The Role of Corporate Social Responsibility Spending on Firm Performance with Earnings Management as a Moderating Variable: Evidence from the Indian Market
Business Perspectives and Research, Ahead of Print.
This study seeks to examine the influence of corporate social responsibility (CSR) spending on firm performance (FP) and supplementary examine the contraction effect of CSR spending and earning management (EM) on the FP in the setting of Indian companies. The sample size employed in this study is 82 companies from S&P BSE 100 index during 2015&–2021. Further, Tobin&’s Q is used as an indicator for measuring the FP. The modified Jones model is employed as a proxy to quantify EM in the form of discretionary accruals (DACC). The methodological model for analysis followed in the work is pooled ordinary least square. The study reveals pragmatic evidence that enterprises engaged in the exercise of EM have no encouragement in CSR spending. In addition to this, the second hypothesis, based on EM, CSR, and earnings management, negatively influences FP in the Indian context. The results of this research will be of certain interest to business owners who want to gauge the efficacy of directors&’ and managers&’ sustainability choices, as well as investors and public authorities who want to evaluate the positive correlation between CSR and a company&’s performance and image, and therefore, the favorable impact on the firm&’s performance.
This study seeks to examine the influence of corporate social responsibility (CSR) spending on firm performance (FP) and supplementary examine the contraction effect of CSR spending and earning management (EM) on the FP in the setting of Indian companies. The sample size employed in this study is 82 companies from S&P BSE 100 index during 2015&–2021. Further, Tobin&’s Q is used as an indicator for measuring the FP. The modified Jones model is employed as a proxy to quantify EM in the form of discretionary accruals (DACC). The methodological model for analysis followed in the work is pooled ordinary least square. The study reveals pragmatic evidence that enterprises engaged in the exercise of EM have no encouragement in CSR spending. In addition to this, the second hypothesis, based on EM, CSR, and earnings management, negatively influences FP in the Indian context. The results of this research will be of certain interest to business owners who want to gauge the efficacy of directors&’ and managers&’ sustainability choices, as well as investors and public authorities who want to evaluate the positive correlation between CSR and a company&’s performance and image, and therefore, the favorable impact on the firm&’s performance.
Impact of Transparency and Disclosure (TD) on the Market Valuation of the Firms in India: The Moderating Role of Competition
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.
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.
An Econometric Study on Volatility Clusters, Dynamic Risk Return Relationship, and Asymmetry in Bitcoin Returns
Business Perspectives and Research, Ahead of Print.
The most sought-after cryptocurrency sector is facing dicey environment in India due to stringent ideology of its government that put Indian investors in dilemma in envisaging this sector as a virtuous investment avenue. The investors are very curious for this sector and their curiosity aroused the need for its evaluation in terms of risk-return dynamics in contemporary scenario. The present study is an endeavor to econometrically explore volatility clusters, dynamic risk return relationship, and asymmetry in Bitcoin return series covering the period from August 2010 to February 2022. The results of Augmented Dickey–Fuller test, Ng–Perron tests, Ljung Box Q test, Engle’s ARCH, and White test asserted that the Bitcoin return series is stationary and has apparent volatility clusters in it. The estimates from GARCH-M model confirmed the absence of risk return relationship and the estimates from ARMA-EGARCH model confirmed the presence of asymmetry (leverage effect) in Bitcoin return series. However, the results of ARMA-TARCH model confirmed the absence of asymmetry in the series and further diagnostic checking asserted that ARMA- TARCH model is the best fitted model. These estimations may help the investors in comprehending risk-return dynamics of investment in Bitcoins for framing better hedging strategy in contemporary scenario.
The most sought-after cryptocurrency sector is facing dicey environment in India due to stringent ideology of its government that put Indian investors in dilemma in envisaging this sector as a virtuous investment avenue. The investors are very curious for this sector and their curiosity aroused the need for its evaluation in terms of risk-return dynamics in contemporary scenario. The present study is an endeavor to econometrically explore volatility clusters, dynamic risk return relationship, and asymmetry in Bitcoin return series covering the period from August 2010 to February 2022. The results of Augmented Dickey–Fuller test, Ng–Perron tests, Ljung Box Q test, Engle’s ARCH, and White test asserted that the Bitcoin return series is stationary and has apparent volatility clusters in it. The estimates from GARCH-M model confirmed the absence of risk return relationship and the estimates from ARMA-EGARCH model confirmed the presence of asymmetry (leverage effect) in Bitcoin return series. However, the results of ARMA-TARCH model confirmed the absence of asymmetry in the series and further diagnostic checking asserted that ARMA- TARCH model is the best fitted model. These estimations may help the investors in comprehending risk-return dynamics of investment in Bitcoins for framing better hedging strategy in contemporary scenario.
Exploring the Performance Dimensions of Indian Shadow Banks Through the CAMELS Framework
Business Perspectives and Research, Ahead of Print.
The role of shadow banks, otherwise known as nonbanking finance companies (NBFCs), in any financial system is well recognized. Since their failure has the potential spillover effect on other institutions creating vulnerability in the entire financial system, identifying key areas that require improvement will enable the firm to work at institutional level to prevent the same. Also this exercise provides crucial input to the regulator to initiate appropriate and timely policy interventions. In this article, the performance is explored by considering the relevant parameters of 100 systemically important nondeposit-taking NBFCs in India by using the CAMELS framework. As very few NBFCs are listed in the stock market, a comparative analysis is made to identify distinct characteristics of listed and nonlisted firms. From the analysis, antecedent profitability and management competencies emerged as main performance drivers across the firms. Further, the result shows that listed firms engaged in income diversification and disbursing credit by relying on internal sources able to reduce the risk and enhance their performance. But, in the case of nonlisted firms generating revenue only through their core financing activities is key to their financial health. At the firm level, emphasis on improving the competencies through capacity building that will help improve the quality of assets and revenue generation is suggested. Simultaneously, the regulator also needs to keep a strong vigil on the activities of nonlisted firms.
The role of shadow banks, otherwise known as nonbanking finance companies (NBFCs), in any financial system is well recognized. Since their failure has the potential spillover effect on other institutions creating vulnerability in the entire financial system, identifying key areas that require improvement will enable the firm to work at institutional level to prevent the same. Also this exercise provides crucial input to the regulator to initiate appropriate and timely policy interventions. In this article, the performance is explored by considering the relevant parameters of 100 systemically important nondeposit-taking NBFCs in India by using the CAMELS framework. As very few NBFCs are listed in the stock market, a comparative analysis is made to identify distinct characteristics of listed and nonlisted firms. From the analysis, antecedent profitability and management competencies emerged as main performance drivers across the firms. Further, the result shows that listed firms engaged in income diversification and disbursing credit by relying on internal sources able to reduce the risk and enhance their performance. But, in the case of nonlisted firms generating revenue only through their core financing activities is key to their financial health. At the firm level, emphasis on improving the competencies through capacity building that will help improve the quality of assets and revenue generation is suggested. Simultaneously, the regulator also needs to keep a strong vigil on the activities of nonlisted firms.
Robust Financial Inclusion Framework by Examining Literacy Aspects in Oman
Business Perspectives and Research, Ahead of Print.
This research examines how Internet finance and challenges (IFC) affect Oman’s banking sector’s financial inclusion (FIN). This research also examines the mediating function of digital literacy (DL) and financial literacy (FL). The conceptual model hypothesis was tested using a questionnaire with study construct items. Financial services and customers at selected Oman banks were sampled using purposive sampling. To test model fitness and derive hypothesis outcomes, AMOS was used to analyze these data using PLS-SEM. The IFC and FIN of financial services users were positively and significantly associated, and DL and FL mediated this connection. This research highlighted DL and FL as the mediating mechanism, adding to the literature on IFC and FIN. FIN must address Internet finance issues, and the government must create regulations to improve financial service consumers’ DL and FL to boost FIN in Oman. This research is innovative and distinctive since it emphasizes the necessity of technological literacy to make it easier for banks and other financial institutions to deliver financial services to the Sultanate of Oman.
This research examines how Internet finance and challenges (IFC) affect Oman’s banking sector’s financial inclusion (FIN). This research also examines the mediating function of digital literacy (DL) and financial literacy (FL). The conceptual model hypothesis was tested using a questionnaire with study construct items. Financial services and customers at selected Oman banks were sampled using purposive sampling. To test model fitness and derive hypothesis outcomes, AMOS was used to analyze these data using PLS-SEM. The IFC and FIN of financial services users were positively and significantly associated, and DL and FL mediated this connection. This research highlighted DL and FL as the mediating mechanism, adding to the literature on IFC and FIN. FIN must address Internet finance issues, and the government must create regulations to improve financial service consumers’ DL and FL to boost FIN in Oman. This research is innovative and distinctive since it emphasizes the necessity of technological literacy to make it easier for banks and other financial institutions to deliver financial services to the Sultanate of Oman.
Impact of Financial Education on Financial Wellness During COVID-19
Business Perspectives and Research, Ahead of Print.
The study intentions to examine the result of getting financial education through the workshop on the financial wellness of people during the COVID-19. Primary data are collected from the participants of a Financial Education workshop in India. The study contained 996 respondents for research using the Personal Financial Well-Being Scale (PFWS) questionnaire from the respondents before and after participating in the workshop. Using Hayes’ macro process model and SPSS, the study tested mediation (financial behavior) and moderation (financial education). All the independent variables were encouraging effect on financial wellness by taking the financial behavior and participation of the respondent as the mediator and moderator variables. The independent variables of subjective aspects such as financial stress, situation, and condition have a more significant effect on financial wellness. This study indicates that policymakers and financial regulatory institutions should improve FE to improve financial behavior and wellness during a crisis for individual and economic well-being.
The study intentions to examine the result of getting financial education through the workshop on the financial wellness of people during the COVID-19. Primary data are collected from the participants of a Financial Education workshop in India. The study contained 996 respondents for research using the Personal Financial Well-Being Scale (PFWS) questionnaire from the respondents before and after participating in the workshop. Using Hayes’ macro process model and SPSS, the study tested mediation (financial behavior) and moderation (financial education). All the independent variables were encouraging effect on financial wellness by taking the financial behavior and participation of the respondent as the mediator and moderator variables. The independent variables of subjective aspects such as financial stress, situation, and condition have a more significant effect on financial wellness. This study indicates that policymakers and financial regulatory institutions should improve FE to improve financial behavior and wellness during a crisis for individual and economic well-being.
Can Mindfulness be an Alternative for Servant Leadership? A Well-being Perspective
Business Perspectives and Research, Ahead of Print.
Servant leaders go beyond their self-centeredness and genuinely work toward strengthening the well-being (WB) of their followers. However, organizations cannot solely rely on servant leaders to stimulate the WB of their workforce as numerous factors affect servant leadership (SL), which may hinder its successful implementation in the workplace. Therefore, it is essential to determine to what extent an individual trait such as mindfulness can compensate for this leadership. Being focused, optimistic, and present in the moment fosters the WB of a person, which may reduce their reliance on external leadership. Thus, by relying on the “substitutes for leadership theory,” this study examines the moderating role of mindfulness in the SL and WB relationship. The data were collected from the 265 Indian service sector employees and were analyzed using the SPSS-20 and AMOS-21 software. The study’s results revealed that SL and mindfulness were significantly related to employee WB. Moreover, employees’ mindfulness moderates the SL and WB relationship. Also, mindfulness partly substitutes for a low level of SL in the workplace. Hence, by organizing meditation and yoga sessions in the organizations, employees’ mindfulness can be enhanced which reduce the reliance on the leadership style of the managers.
Servant leaders go beyond their self-centeredness and genuinely work toward strengthening the well-being (WB) of their followers. However, organizations cannot solely rely on servant leaders to stimulate the WB of their workforce as numerous factors affect servant leadership (SL), which may hinder its successful implementation in the workplace. Therefore, it is essential to determine to what extent an individual trait such as mindfulness can compensate for this leadership. Being focused, optimistic, and present in the moment fosters the WB of a person, which may reduce their reliance on external leadership. Thus, by relying on the “substitutes for leadership theory,” this study examines the moderating role of mindfulness in the SL and WB relationship. The data were collected from the 265 Indian service sector employees and were analyzed using the SPSS-20 and AMOS-21 software. The study’s results revealed that SL and mindfulness were significantly related to employee WB. Moreover, employees’ mindfulness moderates the SL and WB relationship. Also, mindfulness partly substitutes for a low level of SL in the workplace. Hence, by organizing meditation and yoga sessions in the organizations, employees’ mindfulness can be enhanced which reduce the reliance on the leadership style of the managers.