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3556 items in total found

Journal Articles | 2020

Insolvency regimes and firms' default risk under economic uncertainty and shocks

Balagopal, Gopalakrishnan, and Sanket Mohapatra

Economic Modelling

One of the arguments often advanced for implementing a stronger insolvency and bankruptcy framework is that it enhances credit discipline among firms. Using a large cross-country firm-level dataset, we empirically test whether a stronger insolvency regime reduces firms' likelihood of defaulting on their debt. In particular, we examine whether it reduces default risk during increased economic uncertainty and various external shocks. Our results confirm that a stronger insolvency regime moderates the adverse effects of economic shocks on firms' default risk. The effects are more pronounced for firms in the top half of the size distribution. We also explore channels through which improved creditor rights influence firms' default risk, including dependence on external finance, corporate leverage, and managerial ethics. Our main results are robust to an alternative measure of default risk, inclusion of currency and sovereign debt crisis episodes, and alternative estimations.

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Journal Articles | 2020

Apartment buyers as financial creditors: Pushing the conceptual limits of the Indian insolvency regime

M P Ram Mohan and Vishakha Raj

Columbia Journal of Asian Law

A unique feature of the Indian insolvency regime is its
classification of debt into “operational” and “financial” debt. In
Swiss Ribbons v. Union of India, the Supreme Court of India
tenaciously upheld the difference between operational and
financial creditors and declared this classification constitutionally
valid. Last year, the Insolvency and Bankruptcy Code, 2016 (IBC)
was amended to include amounts raised from allottees (persons to
whom an apartment or plot in a real estate project has been
allotted) within the definition of “financial debt,” thus making
allottees financial creditors. Though the amendment was passed to
empower allottees in India’s real estate sector, it revived a more
general discussion on the characteristics of operational and
financial creditors.
This paper posits that the amendment was enacted at the
cost of stretching the definition of “financial creditor” beyond its
conceptual limit and interfering with the IBC’s insolvency
resolution mechanism. We use the United States’ and the United
Kingdom’s insolvency regimes as a point of reference for
ascertaining the role of creditors in insolvency proceedings and
whether operationalizing the insolvency regime to solve problems
in a particular sector is justified.

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Journal Articles | 2020

Covid-19′s impact on supply chain decisions: Strategic insights from NASDAQ 100 firms using Twitter data

Amalesh Sharma, Anirban Adhikary, and Sourav Bikash Borah

Journal of Business Research

The coronavirus pandemic is having a clear impact on the supply chains of virtually all manufacturers, retailers, and wholesalers. As the world attempts to navigate through this difficult time, most companies are struggling to maintain a steady flow of required goods and services. Whether it is frozen foods and grocery items (i.e., toilet papers), or ventilators and masks, or even the services (i.e., clinic visits), the supply chain has been facing multiple obstacles. Most models and frameworks built in the extant literature are not been able to capture these disruptions and as such, firms are not having proper strategies to deal with. For firms with complex supply chains (i.e., manufacturing, retailing), it is indeed critical to identify strategies to deal with such a crisis. In this paper, we intend to offer strategic insights in terms of major issues firms are facing and strategic options firms are contemplating. We rely on the twitter data from NASDAQ 100 firms to generate themes regarding the issues faced by the firms and the strategies they are adopting using text analytics tools. We find that firms are facing challenges in terms of demand-supply mismatch, technology, and development of a resilient supply chain. Moreover, moving beyond profitability, firms are experiencing difficulties to construct a sustainable supply chain. We provide futuristic strategic recommendations for the rebuilding of the supply chain.

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Journal Articles | 2020

The rise of the technological manager in India in the 1960s: the role of the Indian institutes of management

Chinmay Tumbe

Management & Organizational History

A distinctive aspect of India’s managerial elite is that it is dominated by people with an educational background in engineering. This paper unravels the history of how this major phenomenon arose, by tracking the evolution of management education in mid-twentieth century India. It emphasizes the significance of the network developed between the Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs) and points to important contextual factors including the industrial recession of 1968–70 and admission test criteria that contributed heavily to the rise of the ‘technological manager’. Some of these factors continued to be important in the early twenty-first century, having implications on the diversity of educational backgrounds and diversity by gender among India’s managerial elite.

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Journal Articles | 2020

The impact of implicit theories of personality malleability on opportunistic financial reporting

Naman Desai, Shailendra Pratap Jain,Shalini Jain, and Arindam Tripathy

Journal of Business Research

Individuals typically believe that a highly valued personal attribute is a non-malleable trait-like entity (entity theory), or that the attribute is malleable and can be changed and developed (incremental theory). Research suggests that entity theorists perceive existing norms, regulations, and moral orders to be more rigid, whereas incremental theorists assess morality in terms of broad principles that shape world views. We argue that these differences in traits would increase incremental theorists’ propensity to act opportunistically as compared to entity theorists. The results of our experiments confirm these expectations and indicate that business pressures are an overarching driver of opportunistic financial reporting. This result suggests that while pressures and personal attributes do interact to drive opportunistic behavior, if individuals are put under pressure, they are likely to act opportunistically irrespective of their personal attributes. Additionally, our results also indicate that mindsets are a stable predictor of opportunistic behavior across different contexts.

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Journal Articles | 2020

stochastic loss reserving: A new perspective from a Dirichlet model

Karthik Sriram and Peng Shi

Journal of Risk and Insurance

Forecasting the outstanding claim liabilities to set adequate reserves is critical for a nonlife insurer's solvency. Chain–Ladder and Bornhuetter–Ferguson are two prominent actuarial approaches used for this task. The selection between the two approaches is often ad hoc due to different underlying assumptions. We introduce a Dirichlet model that provides a common statistical framework for the two approaches, with some appealing properties. Depending on the type of information available, the model inference naturally leads to either Chain–Ladder or Bornhuetter–Ferguson prediction. Using claims data on Worker's compensation insurance from several U.S. insurers, we discuss both frequentist and Bayesian inference.

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Journal Articles | 2020

Interplay between constraints and rewards in innovation tournaments: implications for participation

Swanand J. Deodhar

International Journal of Cooperative Information Systems

In this study, we examine how the monetary rewards and competitive constraints that organizers of innovation tournaments incorporate are associated with participation. These two aspects of innovation tournaments are crucial because they represent critical design decisions that the organizers must make beforehand. We show that the reward amount is negatively associated with participation, while the presence of competitive constraints, which “make the competitive landscape less asymmetric”, is positively associated with participation. Furthermore, the study shows that competitive constraints moderate the negative association between reward amount and participation. These findings provide insights into contestant motivation as well as the interdependencies between tournament design choices.

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Journal Articles | 2020

Modeling and design of container terminal operations

Debjit Roy, Rene De Koster, and Rene Bekker

Operations Research

The design of container terminal operations is complex because multiple factors affect operational performance. These factors include numerous choices for handling technology, terminal topology, and design parameters and stochastic interactions between the quayside, stackside, and vehicle transport processes. In this research, we propose new integrated queuing network models for rapid design evaluation of container terminals with automated lift vehicles and automated guided vehicles. These models offer the flexibility to analyze alternate design variations and develop insights. For instance, the effect of different vehicle dwell point policies is analyzed using state-dependent queues, whereas the efficient terminal layout is determined using variation in the service time expressions at the stations. We show the relation among the dwell point–dependent waiting times and also show their asymptotic equivalence at heavy traffic conditions. These models form the building blocks for design and analysis of large-scale terminal operations. We test the model efficacy using detailed in-house simulation experiments and real-terminal validation by partnering with an external party.

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Journal Articles | 2020

Using complier average causal effect estimation to examine student outcomes of the pax good behavior game when integrated with the PATHS curriculum

Catherine P. Bradshaw, Kathan Shukla, Elise T. Pas, Juliette K. Berg, and Nicholas S. Lalongo

Administration and Policy in Mental Health and Mental Health Services Research

A growing body of research has documented a link between variation in implementation dosage and outcomes associated with preventive interventions. Complier Average Causal Effect (CACE; Jo in J Educ Behav Stat 27:385-409, 2002) analysis allows for estimating program impacts in light of variation in implementation. This study reports intent-to-treat (ITT) and CACE findings from a randomized controlled trial (RCT) testing the impacts of the universal PAX Good Behavior Game (PAX GBG) integrated with Promoting Alternative Thinking Strategies (i.e., PATHS to PAX) and PAX GBG only compared to a control. This study used ratings by 318 K-5 teachers of 1526 at-risk children who, at baseline, were rated as displaying the top 33rd percentile of aggressive-disruptive behavior. Leveraging a prior study on these data (Berg et al. in Admin Policy Ment Health Ment Health Serv Res 44:558-571, https://doi.org/10.1007/s10488-016-0738-1 , 2017), CACE was defined as the effect of intervention assignment for compliers, using two compliance cut points (50th and 75th percentile), on posttest ratings of student academic engagement, social competence, peer relations, emotion regulation, hyperactivity, and aggressive-disruptive behavior. The ITT analyses indicated improvements for students in the integrated condition on ratings of social competence compared to the control condition. The CACE analyses also indicated significant effects of the integrated intervention on social competence, as well as academic engagement and emotion regulation for students in high compliance classrooms. These findings illustrate the importance of considering variation in implementation within the context of RCTs.

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Journal Articles | 2020

Capacitated multi-period maximal covering location problem with server uncertainty

Amit Kumar Vatsa and Sachin Jayaswal

European Journal of Operational Research

We study the problem of assigning doctors to existing, non-operational Primary Health Centers (PHCs). We do this in the presence of clear guidelines on the maximum population that can be served by any PHC, and uncertainties in the availability of the doctors over the planning horizon. We model the problem as a robust capacitated multi-period maximal covering location problem with server uncertainty. Such supply-side uncertainties have not been accounted for in the context of multi-period facility location in the extant literature. We present an MIP formulation of this problem, which turns out to be too difficult for an off-the-shelf solver like CPLEX. We, therefore, present several dominance rules to reduce the size of the model. We further propose a Benders decomposition based solution method with several refinements that exploit the underlying structure of the problem to solve it extremely efficiently. Our computational experiments show one of the variants of our Benders decomposition based method to be on average almost 1000 times faster, compared to the CPLEX MIP solver, for problem instances containing 300 demand nodes and 10 facilities. Further, while the CPLEX MIP solver could not solve most of the instances beyond 300 demand nodes and 10 facilities even after 20 hours, two of our variants of Benders decomposition could solve instances upto the size of 500 demand nodes and 15 facilities in less than 0.5 hour, on average.

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