Business Perspectives and Research, Ahead of Print.
This study examines whether the impact of annual report readability on agency cost varies with firm size among listed Indian non-financial firms. For this study, we have selected two cross-sectional samples comprising 360 non-financial firms listed on National Stock Exchange (NSE)—divided into 183 small firms and 177 large firms—for the financial year 2019–2020 and 2020–2021. The classification between large and small firms is drawn based on the respective quartile values of total assets and market capitalization taken together. The proxy for agency cost is the natural logarithm of selling and distribution expenses. We have developed an index using the count of characters, words, lines, and pages of the annual report to measure readability. To investigate the association between the annual report readability, agency cost, and firm size, we use the OLS methodology. In our model, we control for fixed assets, leverage, ownership concentration, institutional ownership, the board size, and board independence. Our findings reflect an inverse relationship between readability and agency cost. Additionally, we find that the effect of annual report readability on agency cost is higher for large firms than for smaller firms. We further checked our findings’ robustness using a logistic regression model and found similar results.
Category Archives: Business Perspectives and Research
Antecedents of Electronic Shopping Cart Abandonment during Online Purchase Process
Business Perspectives and Research, Ahead of Print.
The present study synthesized the extant literature on electronic shopping cart abandonment (ESCA) for the last 22 years (2000–2022) using the PRISMA approach. This is one of the first studies that comprehensively synthesized the widely applied theories in the ESCA literature and the reasons for ESCA during the various stages of online shopping process (search stage, consideration stage, evaluation stage, and purchase stage). The findings suggest that Stimulus Organism Response theory, Cognitive Dissonance theory, and the Theory of Reasoned Action are the most prominent theories used in the ESCA literature. Further, customers abandon the electronic shopping cart due to several personal factors (e.g., trust, experience), website features (e.g., perceived behavioral tracking), and product attributes (e.g., perceived service quality). This study gives a snapshot of knowledge gaps in the ESCA domain and suggests future research directions from multifarious perspectives i.e., theoretical underpinnings, contexts, and customer characteristics. For marketers, it provides insights on factors affecting ESCA at each stage of the online shopping process to develop stage wise pragmatic strategies like gamification on shopping websites, improving navigational aspects on websites, removing threats to customer privacy, and creating greater transparency to increase customer trust.
The present study synthesized the extant literature on electronic shopping cart abandonment (ESCA) for the last 22 years (2000–2022) using the PRISMA approach. This is one of the first studies that comprehensively synthesized the widely applied theories in the ESCA literature and the reasons for ESCA during the various stages of online shopping process (search stage, consideration stage, evaluation stage, and purchase stage). The findings suggest that Stimulus Organism Response theory, Cognitive Dissonance theory, and the Theory of Reasoned Action are the most prominent theories used in the ESCA literature. Further, customers abandon the electronic shopping cart due to several personal factors (e.g., trust, experience), website features (e.g., perceived behavioral tracking), and product attributes (e.g., perceived service quality). This study gives a snapshot of knowledge gaps in the ESCA domain and suggests future research directions from multifarious perspectives i.e., theoretical underpinnings, contexts, and customer characteristics. For marketers, it provides insights on factors affecting ESCA at each stage of the online shopping process to develop stage wise pragmatic strategies like gamification on shopping websites, improving navigational aspects on websites, removing threats to customer privacy, and creating greater transparency to increase customer trust.
The Effect of Stock Splits on Liquidity: Evidence from China
Business Perspectives and Research, Ahead of Print.
Despite many theories that explain the stock split announcement by companies, it has been viewed and aimed differently by corporate managers, regulators and investors. Many studies suggest stock splits are often used to lower the price and bring it to an acceptable trading range. However, few studies focus on emerging economies like China. The present study employs a market model to estimate aberrant volumes. Cumulative abnormal volumes and buy-and-hold abnormal volume estimations were used in accordance with a long-term event study. It was found that after firms have gone for stock splits, their liquidity has increased. Thereby suggesting that there is a significant influence on the post-split liquidity as was found in case of the firm that have gone for stock splits listed on China’s Shanghai Stock Exchange during the select period. Also, a statistically significant upward trend was also observed following the split by the firms. Study findings can be useful to regulators, managers, and investors per their interests. This paper has a limitation of using market model. Future research could also increase the time period and the number of firms that this paper has analyzed.
Despite many theories that explain the stock split announcement by companies, it has been viewed and aimed differently by corporate managers, regulators and investors. Many studies suggest stock splits are often used to lower the price and bring it to an acceptable trading range. However, few studies focus on emerging economies like China. The present study employs a market model to estimate aberrant volumes. Cumulative abnormal volumes and buy-and-hold abnormal volume estimations were used in accordance with a long-term event study. It was found that after firms have gone for stock splits, their liquidity has increased. Thereby suggesting that there is a significant influence on the post-split liquidity as was found in case of the firm that have gone for stock splits listed on China’s Shanghai Stock Exchange during the select period. Also, a statistically significant upward trend was also observed following the split by the firms. Study findings can be useful to regulators, managers, and investors per their interests. This paper has a limitation of using market model. Future research could also increase the time period and the number of firms that this paper has analyzed.
Do Central Bank Communications Influence Survey of Professional Forecasters? An Empirical Investigation
Business Perspectives and Research, Ahead of Print.
The present study contributes to our understanding regarding private-sector inflation expectations and how central bank communications influence them in an emerging economy like India. This study uses the Autoregressive Distributed Lag (ARDL) regression function to estimate the influence of the determinants on the survey of professional forecasters for a period ranging from Q1 2014–2015 to Q4 2021–2022. Our results demonstrate the significant positive influence of the lagged period inflation forecasted by the professionals and central bank communications in the form of inflation projections on the inflation forecasted by the professionals in the current period. Macroeconomic variables like repo rate, lagged realized inflation, GDP, merchandise exports and imports, and crude oil rates turned out to be non-significant in influencing the inflation forecasted by the professionals, at least in the short run. The literature highlights the importance of anchoring private-sector expectations by the central bank in an economy, and our results provide empirical evidence for the same, along with its implications on policy making.
The present study contributes to our understanding regarding private-sector inflation expectations and how central bank communications influence them in an emerging economy like India. This study uses the Autoregressive Distributed Lag (ARDL) regression function to estimate the influence of the determinants on the survey of professional forecasters for a period ranging from Q1 2014–2015 to Q4 2021–2022. Our results demonstrate the significant positive influence of the lagged period inflation forecasted by the professionals and central bank communications in the form of inflation projections on the inflation forecasted by the professionals in the current period. Macroeconomic variables like repo rate, lagged realized inflation, GDP, merchandise exports and imports, and crude oil rates turned out to be non-significant in influencing the inflation forecasted by the professionals, at least in the short run. The literature highlights the importance of anchoring private-sector expectations by the central bank in an economy, and our results provide empirical evidence for the same, along with its implications on policy making.
Innovation and Inter-organizational Network: Systematic Review and Bibliometric Analysis
Business Perspectives and Research, Ahead of Print.
This article presents a systematic review and bibliometric analysis of research linking the inter-organizational business network and innovation research. It also discusses previous research on the subject and identify gaps for future studies. A review was done using the dimensions database. This was undertaken using specific keywords search in the title, abstract, and keywords of papers. The review revealed that the research in the field is growing fast. In fact, the paper has established that the UK, the US, and Italy respectively, have dominated publications in terms of the most influential countries for research in the field of inter-organizational business networks. The content review of papers showed that the papers were mainly trying to address the phenomena (the antecedents, management of the network, and network performance outcomes). These categories are not mutually exclusive but would help us to organize the fragmented literature on the topic. This article reviews and discusses the empirical literature on inter-organizational innovation networks and shows that the field is highly fragmented. While some areas have gained considerable research attention, others have experienced a relative paucity of research, and thus topics for future research are discussed.
This article presents a systematic review and bibliometric analysis of research linking the inter-organizational business network and innovation research. It also discusses previous research on the subject and identify gaps for future studies. A review was done using the dimensions database. This was undertaken using specific keywords search in the title, abstract, and keywords of papers. The review revealed that the research in the field is growing fast. In fact, the paper has established that the UK, the US, and Italy respectively, have dominated publications in terms of the most influential countries for research in the field of inter-organizational business networks. The content review of papers showed that the papers were mainly trying to address the phenomena (the antecedents, management of the network, and network performance outcomes). These categories are not mutually exclusive but would help us to organize the fragmented literature on the topic. This article reviews and discusses the empirical literature on inter-organizational innovation networks and shows that the field is highly fragmented. While some areas have gained considerable research attention, others have experienced a relative paucity of research, and thus topics for future research are discussed.
Can Gratitude Counter Workplace Toxicity? Exploring the Mediating Role of Psychological Capital (PsyCap)
Business Perspectives and Research, Ahead of Print.
Gratitude is essential in positive organizational scholarship and is said to flourish and prosper organization members. This article aims to investigate the role of gratitude in transforming a toxic workplace into a collaborative work environment by exploring the mediating role of psychological capital (Psycap). The results reveal that gratitude practiced by the employees at the workplace can counter workplace toxicity and enhance a collaborative work environment, creating harmony in society. The study proposes the institutionalization of a gratitude-based organizational culture that prevents workplace toxicity and supports a collaborative work environment. The study is one of the pioneer studies that tried to unlock the “black box” through which dispositional gratitude can help build workplace harmony and collaboration.
Gratitude is essential in positive organizational scholarship and is said to flourish and prosper organization members. This article aims to investigate the role of gratitude in transforming a toxic workplace into a collaborative work environment by exploring the mediating role of psychological capital (Psycap). The results reveal that gratitude practiced by the employees at the workplace can counter workplace toxicity and enhance a collaborative work environment, creating harmony in society. The study proposes the institutionalization of a gratitude-based organizational culture that prevents workplace toxicity and supports a collaborative work environment. The study is one of the pioneer studies that tried to unlock the “black box” through which dispositional gratitude can help build workplace harmony and collaboration.
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.
Exploring Crisis Leadership During COVID-19: A Case Study on OYO
Business Perspectives and Research, Ahead of Print.
The case explores the steps taken by the leadership team at OYO to mitigate the challenges faced due to the COVID-19 pandemic. As a young start-up on the growth trajectory, OYO was hit harder than some of its established competitors. With the onset of the pandemic, the hospitality industry had come to a grinding halt and occupancy rates were at an all-time low. It was necessary for the management to revamp organizational structures and processes, and exhibit strong leadership skills to drive the workforce through one of the most challenging periods that OYO would have to go through. A recurring theme observed throughout the case is the resilient leadership response to the crisis by the protagonist, that is, Ritesh Agarwal, the Founder and Group CEO of the company, and his unwavering involvement in ensuring to keep the company afloat. Several people-centric initiatives that were undertaken for different stakeholder groups are outlined throughout the case and a major focus is given to the importance of decentralized and distributed leadership in the face of a crisis. The case is a narrative on organizational crisis management on the face of a setback and the role of leaders and empowered employees to navigate it.
The case explores the steps taken by the leadership team at OYO to mitigate the challenges faced due to the COVID-19 pandemic. As a young start-up on the growth trajectory, OYO was hit harder than some of its established competitors. With the onset of the pandemic, the hospitality industry had come to a grinding halt and occupancy rates were at an all-time low. It was necessary for the management to revamp organizational structures and processes, and exhibit strong leadership skills to drive the workforce through one of the most challenging periods that OYO would have to go through. A recurring theme observed throughout the case is the resilient leadership response to the crisis by the protagonist, that is, Ritesh Agarwal, the Founder and Group CEO of the company, and his unwavering involvement in ensuring to keep the company afloat. Several people-centric initiatives that were undertaken for different stakeholder groups are outlined throughout the case and a major focus is given to the importance of decentralized and distributed leadership in the face of a crisis. The case is a narrative on organizational crisis management on the face of a setback and the role of leaders and empowered employees to navigate it.
Unveiling the Hidden Layers of Employees’ Job Satisfaction and Organizational Commitment: A Meta-analysis
Business Perspectives and Research, Ahead of Print.
Inducing the employees to get the work done has become one of the prevalent challenges for organizations. The feeling of association and belongingness impels the employees to put in effort for the organization. Hence, the study aims to evaluate the relationship between job satisfaction (JS) and Organizational Commitment (OC) through the investigation of moderating effects. An analysis of a systematic review of 2,702 studies is conducted wherein the process results in the analysis of the filtered 27 studies. Meta-analysis has unveiled the hidden layers of the relationship between job satisfaction and organizational commitment. Through the application of moderator analysis, interesting findings are witnessed. Contrary to the expectations, the results of meta-regression have denied the influence of age on the discussed relationship while gender and work experience have successfully qualified as moderators. Integration of the demographic inclusions and a viewpoint defining the role of work experience has provided a needed re-specification to the literature. Thus, the present study will provide new insights for academicians and researchers.
Inducing the employees to get the work done has become one of the prevalent challenges for organizations. The feeling of association and belongingness impels the employees to put in effort for the organization. Hence, the study aims to evaluate the relationship between job satisfaction (JS) and Organizational Commitment (OC) through the investigation of moderating effects. An analysis of a systematic review of 2,702 studies is conducted wherein the process results in the analysis of the filtered 27 studies. Meta-analysis has unveiled the hidden layers of the relationship between job satisfaction and organizational commitment. Through the application of moderator analysis, interesting findings are witnessed. Contrary to the expectations, the results of meta-regression have denied the influence of age on the discussed relationship while gender and work experience have successfully qualified as moderators. Integration of the demographic inclusions and a viewpoint defining the role of work experience has provided a needed re-specification to the literature. Thus, the present study will provide new insights for academicians and researchers.
Is Feminism a Silver Bullet to Shatter African Glass Ceiling? An Examination of the Mediating Role of Financial Wellbeing
Business Perspectives and Research, Ahead of Print.
The idea of feminism advocates social, political, economic, and intellectual equality for women and men. In the organizational context, particularly in Africa, there is a dearth of studies probing the implications of feminism toward shattering of the proverbial glass-ceiling that women face every day. The present article is aimed to address this gap. It investigates the role of feminism in promoting women’s career advancement through financial wellbeing. The study deploys a sample of 250 women working in the four breweries in the Addis Ababa area, Ethiopia. The findings confirmed our hypotheses that feminism was a strong predictor for women’s career success and that financial wellbeing acted as a mediator between the two. As a major implication, the study highlights the positive role of feminism for women’s career success, while underlining the importance of financial wellbeing for them. It assumes particular significance considering prevalent misgivings about these concepts in Ethiopian society. The study also provides certain recommendations for future researchers and policymakers.
The idea of feminism advocates social, political, economic, and intellectual equality for women and men. In the organizational context, particularly in Africa, there is a dearth of studies probing the implications of feminism toward shattering of the proverbial glass-ceiling that women face every day. The present article is aimed to address this gap. It investigates the role of feminism in promoting women’s career advancement through financial wellbeing. The study deploys a sample of 250 women working in the four breweries in the Addis Ababa area, Ethiopia. The findings confirmed our hypotheses that feminism was a strong predictor for women’s career success and that financial wellbeing acted as a mediator between the two. As a major implication, the study highlights the positive role of feminism for women’s career success, while underlining the importance of financial wellbeing for them. It assumes particular significance considering prevalent misgivings about these concepts in Ethiopian society. The study also provides certain recommendations for future researchers and policymakers.