Dinesh Jaisinghani

Impact of R&D on profitability in the pharma sector: an empirical study from India

Purpose The purpose of the current paper is to examine the nature of profit persistence and to estimate the dynamic relationship between research and development (R&D) intensity and firm profitability in the Indian pharmaceutical industry. Design/methodology/approach A dynamic panel data model with generalized methods of moments (GMMs) technique has been deployed to estimate the relationship between R&D intensity and performance. Arellano and Bond (1991) estimation methodology has been used to generate the estimates. A sample of 55 publicly listed firms operating in the Indian pharmaceutical industry for the period 2005-2014 has been considered. Findings The study finds moderate to heavy profit persistence in the Indian pharmaceutical industry. The study also finds that there exists a positive relationship between R&D intensity and performance for the Indian pharmaceutical Industry. The results hold even after considering two separate measures of profitability – return on assets and return on sales. The results also hint at a possible non-linear relationship between R&D intensity and profitability. Research limitations/implications The results highlight positive profit persistence among pharmaceutical firms. The results also highlight the need for a sustained investment in R&D, as its benefits are driven in the long run. Thus, managers should devise proper policies R&D investments. Also, prospective entrants should properly study the existing entry barriers before deciding upon the mode and timing of entry. Originality/value The degree of profit persistence and the dynamic nature of relationship between R&D intensity and firm performance in the Indian pharmaceutical sector has not been studied. Thus, this paper fills this gap and also highlights the impact of certain firm- and industry-specific variables on profitability.

An empirical test of calendar anomalies for the Indian securities markets

Purpose – The purpose of this paper is to test prominent calendar anomalies for Indian securities markets those are commonly reported for advanced markets. Design/methodology/approach – The study considers closing values of 11 different indices of National Stock Exchange India, for the period 1994-2014. By using dummy variable regression technique, five different calendar anomalies namely day of the week effect, month of the year effect, mid-year effect, Halloween effect, and trading-month effect are tested. Also, the evidence of volatility clustering has been tested through the application of generalized autoregressive conditional heteroscedasticity (GARCH)-M models. Findings – The results display weak evidence in support of a positive Wednesday effect. The results also display weak evidence in support of a positive April and December effect. The results show strong evidence in support of a positive September effect. The Halloween effect was not found significant. The test of mid-year effect provides evi...

Capital expenditure and persistence of firm performance: an empirical study for the Indian automobiles industry

The purpose of the present work is to analyse the dynamic relationship between capital expenditure (CAPEX) intensity and firm performance for the automobiles industry in India. A dynamic panel methodology has been deployed. A sample of 95 listed automobiles firms in India for the period 2005 to 2014 has been considered. The results show that there exists a negative and persistent relation between performance and CAPEX. Also, a moderate level of persistence in the firm performance is observed for the sample companies. The results also indicate a possible U-shape relationship between CAPEX and firm performance. The study highlights the need for proper identification of the appropriate capital expenditure levels. This may lead to positive benefits for the Indian automobiles firms in the long-run.

Overcoming the HR challenge: a case of merger of Kotak Mahindra Bank and ING Vysya Bank

Subject area Human Resources and Organizational Behavior – dealing with the HR issues in mergers and acquisitions (M&As). Study level/applicability MBA and other similar programs at the post-graduation level. Case overview The current case deals with human resource (HR) issues in the merger of Kotak Mahindra Bank (KMB) and ING Vysya Bank (IVB). The case discusses various aspects of the merger process and focuses on the key challenges that firms face while integrating the employees of the merged entities. The case also highlights the steps taken by KMB to ensure that the merger process is smooth and employees are adequately motivated. The case also discusses the process adopted by the merged entity to efficiently integrate the employees. Expected learning outcomes The case can be a part of an organizational behavior course and a banking course. The current case allows students to make decisions while dealing with situations pertaining to employees’ integration in an MA identify the major challenges in any MA list down key HR issues in any merger activity; analyse strategies that can be adopted to deal with HR challenges; and construct a plan of action for integrating employees in a merged entity. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS: 6: Human Resource Management.

Testing dynamic trade-off theory of capital structure: an empirical study for the textiles industry in India and China

The prime objective of the current study is to compare the dynamic behaviour of capital structure across firms operating in the textile industry in India and China. The study has been conducted by analysing 92 publicly listed textiles firms in India and 33 publicly listed textiles firms in China. The time period from 2005 to 2016 for Indian firms and from 2004 to 2015 for the Chinese firms has been considered. The Arellano and Bond (1991) and Blundell and Bond (1998) based dynamic panel estimation techniques have been deployed to generate the results. The empirical results confirm the applicability of the dynamic trade-off theory for the textile industry in India and China. Further, the results show that the speed of adjustment towards the targeted debt level is very low for the Indian textile companies as compared to that of the Chinese textile companies. The results strongly convey that Indian firms bear significant costs while moving from their observed leverage to their target leverage. The overall results support partial applicability of dynamic trade-off theory for the Indian firms and strong applicability of the theory for the Chinese firms.

Wholesome learning about self and others through sensitivity training

Purpose – The purpose of the present paper is to examine the role of sensitivity training (ST) methods at higher education institutions as a service provider for future managers’ qualifications. Design/methodology/approach – A qualitative content analysis of the narratives logs of participants of a ST was carried out. Findings – The data collected reveal influential impact of ST on MBA students. It discusses the students’ journey from unknowing to knowing through self-discovery route. Specifically, there are five connecting points in ST: experience, trust, understand, learn and apply. At an abstraction level, overall this experience can be equated with feeling of being “self rejuvenated”. Research limitations/implications – The study is confined to the participants of MBA-HR course. More insights can be obtained by replicating the study for participants from different programmes. Originality/value – The original contribution of the study lies in revisiting the experiential learning (EL) process in ST. ST ...

Yes Bank: bringing sustainability in agriculture through Public-Private Partnerships (PPPs)

Structured abstract Subject Area: Strategy – dealing with a particular type of strategic alliance (Public Private Partnership) as a strategy to enter a new business segment. Study level/applicability MBA and other similar programs at the postgraduation level. Case overview The current case deals with Yes Bank, one of the largest private sector banks in India. The main objective of the case is to help the students to understand the banking industry, and the structure and implementation of Public–Private Partnership (PPP) at a large Indian Bank. The case also intends to highlight the cost and revenue drivers for a particular industry. Yes Bank is contemplating entering into the Indian Agricultural financing sector that has huge potential. The case describes how to analyze the sector using Porters five force model. Also, there are several modes of entering the sector, including joint-ventures, mergers, direct investments and PPPs. The case describes the benefits and issues associated with each of the mentioned strategies. Further, the case also describes the challenges and benefits of PPPs as a mode of generating growth opportunities. Expected learning outcomes The case can be a part of a banking course as well as a strategy course. The current case allows the students to make decisions while dealing with situations pertaining to sustainable development and implementation of PPPs. The major expected learning outcomes of the current case are: to be able to understand industry structure, using the banking sector as an example; to be able to list down the revenue and cost drivers for Indian banks; to be able to identify investment drivers for a particular industry, such as agriculture; to be able to analyze the agricultural financing industry using the Porters five force model; to be able to analyze different modes of entering a new sector and the challenges associated with each one of them; and to be able to comprehend the role of PPPs in entering new areas of business. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Predicting Non Performing Assets (NPAs) of Banks: An Empirical Analysis in the Indian Context

The purpose of the present work is to predict the non performing assets (NPAs) of the Indian Banks. Binary response models including Logit and Probit models have been applied to estimate the relationship between several factors and NPAs. Also, censored technique of Tobit analysis is applied to validate the results. A sample consisting of 37 Indian banks for the period 2005 – 2013 has been considered. The study revealed that there exist certain patterns in NPAs in the Indian Banks. Private sector banks have consistently lower NPAs as compared to public sector banks. The study also finds out that several firm level factors such as capital adequacy ratios, profitability, and size are helpful in predicting NPAs for the Indian Banks.