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851 items in total found

Journal Articles | 2022

Policy uncertainty and behavior of foreign firms in emerging economies

Amit Karna and Shamim S. Mondal Viswanath Pingali

Management Decision

Purpose – This study aims to examine how foreign and domestic firms react to policy uncertainty in an emerging economy. In addition, the study investigates if older foreign firms better adapt to policy uncertainty than newer entrants. Design/methodology/approach – The study uses pharmaceutical sales data on India’s cardiovascular segment for January 2011–May 2016. The authors use fixed fixed-effects panel data regression to measure the market reactions of foreign and domestic firms faced with policy uncertainty.

Findings – While domestic and foreign firms react similarly to anticipated policy changes, foreign firms react more adversely to policy uncertainty. Among foreign firms, early entrants respond less adversely than new entrants.

Research limitations/implications – Foreign firms are able to cope with anticipated policy changes in similar vein as the domestic firms by way of a priori reading of the host country’s regulatory landscape. The foreign firms’ response to policy uncertainty is significantly different from domestic firms. The difference between the market response of foreign and domestic firms decreases over time.

Practical implications – The authors’ findings demonstrate that adaptability is the key for new foreign firms to face policy uncertainty. Foreign firms can respond to policy changes, especially the unanticipated ones by imbibing local practices. Social implications – The authors’ findings suggest that enhanced policy uncertainty hurts foreign firms more adversely than domestic firms, and newer foreign firms are more hurt with policy uncertainty than the existing ones. Such uncertainty could also have unintended consequences for consumer welfare.

Originality/value – The authors’ study uses two natural experiments in the same industry within short periods of time. The comparison offers key insights on the differences in domestic and foreign firm responses to the two types of policy uncertainty.

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Journal Articles | 2022

Identity work at the intersection of dirty work, caste, and precarity: How Indian cleaners negotiate stigma

Avina Mendonca, Premilla D’Cruz, and Ernesto Noronha

Organization

Drawing from in-depth interviews of cleaners employed in the cleaning industry in India, the study examines the ongoing process of constructing a positive identity among dirty workers. Cleaners respond to the intense identity struggles emerging from caste stigma, dirty taint, and precarity by constructing ambivalent identities. Cleaners’ identity work is constituted by the very identity struggles they encounter, and their efforts to negotiate stigmatized identities further create identity tensions. Apart from accenting the paradoxical duality inhered in identity work, the findings show how caste/class inequalities are reworked in a neoliberal milieu and reproduced in identity construction processes. The findings call attention to caste as an important social category in organizational studies that has implications for work identities, dirty work, and precarious work.

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Journal Articles | 2022

Impact of review narrativity on sales in a competitive environment

Soumya Mukhopadhyay, V Kumar, Amalesh Sharma, and Tuck Siong Chung

Production and Operations Management

Online user-generated reviews have received significant importance in the literature as they help consumers make consumption decisions. However, despite significant developments in this domain in the past decade, little attention has been paid to how narrative aspects of reviews affect consumers’ consumption decisions and, consequently, influence sales. A narrative can be defined as a sequentially structured discourse that provides an understanding of the events that unfold around the narrator. Relying on the literature on narrative transportation, we examine the role of review narrativity in determining firm sales, the contingency effect of the competitive environment, and review polarity. Specifically, we propose that review narrativity has an asymmetric U-shaped (or, J-shaped) relationship with sales; the impact of review narrativity on sales would have significant positive interaction with the polarity of the review text; and that under high (low) competitive agglomeration, review narrativity would have a significant (insignificant) positive impact on sales. Operationalizing review narrativity using three different measures from a unique and rich dataset collected from OpenTable and using a Bayesian framework, consistent with our hypotheses, we find that the narrativity of textual reviews exerts a significant nonlinear impact on sales contingent on their polarity. Enriching the relatively nascent empirical literature on the effects of competitive context on eWOM, the current paper further offers clear empirical evidence that the impact of review narrativity on sales is significantly higher (lower) under a high (low) competitive agglomeration. The paper makes a methodological contribution by developing a flexible framework to identify the proposed relationships better while accounting for heterogeneity, endogeneity, and temporal patterns in the context of dynamic panels.

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Journal Articles | 2022

Work from home amenability and venture capital financing during COVID-19

Jagriti Srivastava and Balagopal Gopalakrishnan

Applied Economics

This paper examines the impact of COVID-19 on venture capital financing of firms. We find a significant shift in the profile of firms that obtain venture capital financing during the pandemic-induced economic crisis. Firms in industries that are more amenable to work from home obtain greater amounts of financing. Growth-stage firms operating in amenable industries are able to obtain higher financing than early-stage firms. The higher financing obtained by firms in amenable industries is driven by venture capital funds focused on the domestic market. Additionally, the higher financing is obtained from a single venture capital investor rather than a consortia of investors. Taken together, the preference of venture capital funds indicate a less risk-averse behavior in financing firms amenable to remote working. The findings of our study using monthly firm-level data provide insights on venture capital financing during the pandemic.

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Journal Articles | 2022

The impact of social reputation features in innovation tournaments: Evidence from a natural experiment

Swanand J. Deodhar and Samrat Gupta

Information Systems Research

This study examines how a change in an online reputation system, specifically the addition of a social reputation feature, affects contestant performance in innovation tournaments. Drawing from the literature on peer recognition and social evaluation anxiety, we project competing effects whereby the feature could either enhance or diminish contestant performance. Furthermore, we hypothesize a series of contingent effects involving the soft reserve, a competitive dynamic that unfolds in tournaments, and a determinant of performance in its own right. Specifically, we hypothesize that the direct influence of the social reputation feature on contestant performance would be predicated on the level of two types of soft reserves in an innovation tournament: that created by the focal contestant and that created by competitors. We test these hypotheses leveraging a natural experiment, where an innovation tournament platform (Kaggle.com) introduced a social reputation feature, allowing contestants to follow other contestants unilaterally. Estimates obtained using a panel data set bracketed within a narrow time window (15 days) around the feature launch reveal that the feature significantly improves the performance. We further report that the two types of soft reserves significantly moderate the positive effect of the social reputation feature on contestant performance, whereby the higher the soft reserve, the weaker the effect of the social reputation feature on contestant performance. These findings have several theoretical and practical implications for managing innovation tournaments.

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Journal Articles | 2022

Women directors in corporate India, c. 1920–2019

Chinmay Tumbe

Business History

This paper provides a historical background of women’s representation on Indian corporate boards. It studies directory lists for benchmark years of the past century and other sources, to ascertain the trends and challenges over time. Women directors comprised less than 1% of all directors in the 200 leading firms of India until the 1990s, after which the share rose to 2% by 2000 and 5% in 2010. Due to a regulatory push in 2013, women’s representation on the boards of listed firms rose above 16% in 2019. The sharp reduction in board interlocks over time and the rise of public sector units, especially in banking, are some of the factors highlighted in bringing about more gender diversity in Indian corporate boardrooms before 2013. However, the principal mechanism through which women entered corporate boardrooms in India was through family ties, bound within specific castes and communities.

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Journal Articles | 2022

SEntFiN 1.0: Entity-aware sentiment analysis for financial news

Ankur Sinha, Satishwar Kedas, Rishu Kumar, and Pekka Malo

Journal of the Association for Information Science and Technology

Fine-grained financial sentiment analysis on news headlines is a challenging task requiring human-annotated datasets to achieve high performance. Limited studies have tried to address the sentiment extraction task in a setting where multiple entities are present in a news headline. In an effort to further research in this area, we make publicly available SEntFiN 1.0, a human-annotated dataset of 10,753 news headlines with entity-sentiment annotations, of which 2,847 headlines contain multiple entities, often with conflicting sentiments. We augment our dataset with a database of over 1,000 financial entities and their various representations in news media amounting to over 5,000 phrases. We propose a framework that enables the extraction of entity-relevant sentiments using a feature-based approach rather than an expression-based approach. For sentiment extraction, we utilize 12 different learning schemes utilizing lexicon-based and pretrained sentence representations and five classification approaches. Our experiments indicate that lexicon-based N-gram ensembles are above par with pretrained word embedding schemes such as GloVe. Overall, RoBERTa and finBERT (domain-specific BERT) achieve the highest average accuracy of 94.29% and F1-score of 93.27%. Further, using over 210,000 entity-sentiment predictions, we validate the economic effect of sentiments on aggregate market movements over a long duration.

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Journal Articles | 2022

Impact of price path on disposition bias

Avijit Bansal and Joshy Jacob

Journal of Banking & Finance

Recent experimental studies have illustrated the influence of price-path, particularly the `non-straight' price-path on several aspects of investor behavior. The paper computes a proxy for price-path based on Cumulative Prospect Theory and with investor- level high-frequency trade data from the commodities futures market, demonstrates that the nature of the price-path significantly impacts the degree of disposition bias, after controlling for the level of returns and volatility of the commodity. We find that the experience of a favorable (unfavorable) price-path, decreases (increases) disposition bias among the traders with Prospect Theory preferences. The decline (increase) in disposition bias is an outcome of the decline (increase) in the propensity for gain realization, accompanied by a concurrent increase (decline) in the propensity for loss realization among the traders. We conjecture that both investor preferences and beliefs about future price movement, inferred from the price-path experienced, influence their trading decisions.

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Journal Articles | 2021

Risk-sensitive Basel regulations and firms’ access to credit: Direct and indirect effects

Balagopal Gopalakrishnan, Joshy Jacob, and Sanket Mohapatra

Journal of Banking & Finance

This paper examines the impact of risk-sensitive Basel regulations on debt financing of firms around the world. It investigates how firms cope with the impact through adjustments to their financing sources and capital investments. We find that the implementation of Basel II regulations is associated with reduced credit availability for lower-rated firms. Such firms mitigate the shortage in bank credit through increased reliance on accounts payable, lower payouts to shareholders, and reduced capital investments. The impact of the capital regulation is lower in countries that rely on the internal ratings-based approach. The key results are robust to controls for banking crises, bank-specific controls, and the inclusion of loan-level information. The findings of this paper substantially contribute to the understanding of the real effects of risk-sensitive bank capital regulations.

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Journal Articles | 2021

Understanding digitally enabled complex networks: a plural granulation based hybrid community detection approach

Samrat Gupta and Swanand Deodhar

Information Technology & People

Purpose – Communities representing groups of agents with similar interests or functions are one of the essential features of complex networks. Finding communities in real-world networks is critical for analyzing complex systems in various areas ranging from collaborative information to political systems. Given the different characteristics of networks and the capability of community detection in handling a plethora of societal problems, community detection methods represent an emerging area of research. Contributing to this field, the authors propose a new community detection algorithm based on the hybridization of node and link granulation.

Design/methodology/approach – The proposed algorithm utilizes a rough set-theoretic concept called closure on networks. Initial sets are constructed by using neighborhood topology around the nodes as well as links and represented as two different categories of granules. Subsequently, the authors iteratively obtain the constrained closure of these sets. The authors use node mutuality and link mutuality as merging criteria for node and link granules, respectively, during the iterations. Finally, the constrained closure subsets of nodes and links are combined and refined using the Jaccard similarity coefficient and a local density function to obtain communities in a binary network.

Findings – Extensive experiments conducted on twelve real-world networks followed by a comparison with state-of-the-art methods demonstrate the viability and effectiveness of the proposed algorithm.

Research limitations/implications – The study also contributes to the ongoing effort related to the application of soft computing techniques to model complex systems. The extant literature has integrated a rough set-theoretic approach with a fuzzy granular model (Kundu and Pal, 2015) and spectral clustering (Huang and Xiao, 2012) for node-centric community detection in complex networks. In contributing to this stream of work, the proposed algorithm leverages the unexplored synergy between rough set theory, node granulation and link granulation in the context of complex networks. Combined with experiments of network datasets from various domains, the results indicate that the proposed algorithm can effectively reveal co-occurring disjoint, overlapping and nested communities without necessarily assigning each node to a community.

Practical implications – This study carries important practical implications for complex adaptive systems in business and management sciences, in which entities are increasingly getting organized into communities (Jacucciet al., 2006). The proposed community detection method can be used for network-based fraud detection by enabling experts to understand the formation and development of fraudulent setups with an active exchange of information and resources between the firms (Van Vlasselaer et al., 2017). Products and services are getting connected and mapped in every walk of life due to the emergence of a variety of interconnected devices, social networks and software applications.

Social implications – The proposed algorithm could be extended for community detection on customer trajectory patterns and design recommendation systems for online products and services (Ghose et al., 2019; Liu and Wang, 2017). In line with prior research, the proposed algorithm can aid companies in investigating the characteristics of implicit communities of bloggers or social media users for their services and products so as to identify peer influencers and conduct targeted marketing (Chau and Xu, 2012; De Matos et al., 2014; Zhang et al., 2016). The proposed algorithm can be used to understand the behavior of each group and the appropriate communication strategy for that group. For instance, a group using a specific language or following a specific account might benefit more from a particular piece of content than another group. The proposed algorithm can thus help in exploring the factors defining communities and confronting many reallife challenges.

Originality/value – This work is based on a theoretical argument that communities in networks are not only based on compatibility among nodes but also on the compatibility among links. Building up on the aforementioned argument, the authors propose a community detection method that considers the relationship among both the entities in a network (nodes and links) as opposed to traditional methods, which are predominantly based on relationships among nodes only.

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