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Working Papers | 2015

Market overreaction to poor long-run performance? A case of repurchase firms in India

Sobhesh Kumar Agarwalla, Joshy Jacob, and Ellapulli Vasudevan

We find significant positive abnormal returns around the announcement of both tender and
open market repurchases in India. This suggests that the equity markets in India regard
repurchase announcements as positive information signals. We examine whether such abnormal returns are justified by the operating performance of firms during the post repurchase
period. We find that firms which announce open market repurchases underperform their
peers on several measures of operating performance. We infer from these results that the
market overreacts to open market repurchase announcements. Moreover, most open market
repurchases are preceded by sharp price declines, suggesting that these are more frequently
used for price support than for signalling undervaluation. The tender repurchase firms, on
the other hand, do not exhibit any significant decline in their operating performance in the
long run.

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Working Papers | 2015

A New Formulation and Benders' Decomposition for Multi-period facility Location Problem with Server Uncertainty

Amit Kumar Vatsa and Sachin Jayaswal

Facility location problems reported in the literature generally assume the problem parameter values
(like cost, budget, etc.) to be known with complete certainty, even if they change over time (as in
multi-period versions). However, in reality, there may be some uncertainty about the exact values of
these parameters. Specifically, in the context of locating primary health centers (PHCs) in developing countries, there is generally a high level of uncertainty in the availability of servers (doctors) joining the facilities in different time periods. For transparency and efficient assignment of the doctors to PHCs, it is desirable to decide the facility opening sequence (assigning doctors to unmanned PHCs) at the start of the planning horizon. For, this we present a new formulation for a multi-period maximal coverage location problem with server uncertainty (MMCLPSU). We further demonstrate the superiority of our proposed formulation over the only other formulation reported in the literature. For instances of practical size, we provide Benders decomposition based solution method, along with several refinements. For instances that CPLEX MIP solver could solve within a time limit of 20 hours, our proposed solution method turns out to be of the order of 150 - 250 times faster for the problems with complete coverage, and around 1000 times faster for gradual coverage.

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Working Papers | 2015

Preparation for the World of Work: Secondary and Higher Secondary Education in India

Charanya Raman and Vishal Gupta

Secondary education is, perhaps, the most important part of an individual's education as it is during these years that a student decides what she is going to take up for further education and how she is going to earn her daily bread. The present chapter examines the secondary and higher secondary education system in India and discusses how it prepares the student for the world of work. The chapter focuses on the vocational training that is imparted during the fours years of secondary (and higher secondary) education. The changing trend of vocational education at the secondary level of Indian education system is described. A description of the current state of vocational education at secondary level, different institutes/government agencies offering vocational courses, curriculum followed by different agencies, teaching methodology used, assessment methodology and certification pattern is provided. In-depth analysis of the problems faced and recommendations for the future are presented.

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Working Papers | 2015

Make in India: Re-chanting the Mantra with a Difference

Satish Y. Deodhar

Make in India is an old mantra. It was very much there during India's colonial period and the post-independence decades till 1991, and now it has been pronounced from the ramparts of Red Fort. The paper attempts to trace the origin and idea of Make in India through time and identifies what needs to be done to turn the Make in India mantra into a reality. Free market is the engine of growth for the economy and government has to provide the necessary lubricant for it to work. This involves reforming industrial, labour, and land acquisition laws; liberalizing inflow of FDI and technology; simplifying and integrating state/center administrative compliances for business; government staying away from economic activities which do not qualify for market failure argument, and, instead concentrating on improving comparative advantage of the country by investing in merit goods such as basic research, primary education, and primary healthcare.

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Working Papers | 2015

Farmer Producer Organizations as Farmer Collectives: A Case Study from India

Nalini Bikkina, Rama Mohana Turaga, and Vaibhav Bhamoriya

Small and marginal farmers in India have been vulnerable to risks in agricultural production. Several organizational prototypes are emerging to integrate them into the value chain with the objectives of enhancing incomes and reduction in transaction costs. One such alternative is Farmer Producer Organizations (FPOs). We explore the potential of FPOs as collective institutions through a case study of Avirat, one of the first FPOs in Gujarat. Our analysis suggests that FPOs have the potential to provide benefits through effective collective action. The main challenge, however, is to raise sufficient capital that can maximize these benefits. We discuss the implications of our findings to policy

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Working Papers | 2015

Extended Producer Responsibility as an Instrument for Electronic Waste Management: A Critical Analysis of India's e-waste Rules

K. Bhaskar and Rama Mohana Turaga

Extended producer responsibility (EPR) has been a widely used policy approach, in developed and developing countries alike, to manage the growing problem of electronic waste (e-waste). EPR assigns the responsibility of the end-of-life waste management to the producers of electric and electronic equipment. India has adopted EPR approach in its e-waste (Management and Handling) Rules, 2011, which have come into effect in May, 2012. According to these rules, the producers have been made responsible for setting up collection centres of e-waste and financing and organizing a system for environmentally sound management of e-waste. In this paper, we use implementation of these rules in the city of Ahmedabad in western India as a case study to conduct a critical analysis of the provisions of India's new rules. Interviews of main stakeholder groups, including a sample of commercial establishments regulated under the rules, regulatory agencies enforcing the rules, informal actors involved in waste collection and handling, as well as publicly available information on the implementation constitute data for our case study. We draw broader implications of our analysis of implementation in Ahmedabad. In general, there is a need for more transparency from the producers in providing information on the mechanism for collection and recycling; more awareness must be generated on e-waste and the Rules amongst the consumers; and it is important to sort out potential issues around enforcement jurisdiction.

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Working Papers | 2015

Price Movements of the Competing Airlines in the Indian Market: An Empirical Study (A)

Goutam Dutta and Sumitro Santra

In this paper, we analyze the price movements of the Indian domestic airline industry. In the first part, we conduct a detailed econometric analysis of five selected domestic routes. In the second part, we study the weekend effect on the average airfare. Our research suggests that competition steps up airfares as the departure date comes closer and weekend airfares are higher than weekday airfares. The application of Revenue Management and Dynamic Pricing is the common practice in the Indian domestic airlines industry.

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Working Papers | 2014

A Multi-perspective integrated framework to study operations of power in organizations during technology-based change

George Kandathil

Attempts to develop an integrated framework to examine operations of power have always been challenging yet necessary, particularly in the context of technology-based organizational change. This paper begins with a highlight of the theoretical mismatch in an integrated theoretical framework that is widely used for examining operations of power during organizational change. Subsequently, drawing upon the recent works in political sociology on critical self-reflection, I propose to rectify the theoretical mismatch, resulting in a modified integrated framework. Further, using studies in social influence theories, I support the use of critical self-reflection as the integrating logic, which connects the framework to the semiotic exercise of power, making the integration more holistic. I illustrate the potential of this integrated framework to explain operations of power using a longitudinal case study of an implementation of Enterprise Resource Planning software package and the associated organizational change.

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Working Papers | 2014

FROM BEHAVIORAL COMPLIANCE TO VALUE INTERNALIZATION: The critical role of the match between employee's pre socialization habitual behavior and organization's expected employee behaviour

George Kandathil

This paper systematically explores the following under-examined question in social influence theories: can an individual's sustained behavioral compliance in an organizing context lead to internalization of the values underpinning the behavior. Particular focus is on the context where the value-to-be-internalized conflicts with the value that the individual has already internalized. I identify the boundary conditions within which this outcome can occur and the underlying social-psychological mechanisms that lead to such outcomes. To accomplish this, I develop propositions, drawing upon social influence theories and developments in critical sociology. I also provide guidelines to convert these propositions into hypotheses and test them. Finally, I discuss the implications of testing these hypotheses including a potential challenge to the dominant employee recruitment practice that HR professional usually adopt.

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Working Papers | 2014

Agribusiness Franchising in India:
Experience and Potential

Sukhpal Singh

Agribusiness or agricultural franchising is quite new in India, though it is quite commonly used in other businesses like fast food, hotel and other service industries where service quality is crucial to maintain brand equity. There have been only a few experiments in this field in the recent past by some corporate agencies, both private and public. This paper locates the rationale for franchising in agribusiness from global literature and from the Indian smallholder agricultural context where other ways of reaching small farmers or linking them with markets have not worked. It then analyses a few cases of failure and success in franchising in agribusiness by corporate agencies and compares and contrasts them for inferring on better management of franchising and its wider applicability in the Indian agribusiness context.

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