{"title":"Wealth Effects of Share Repurchase Decision of IPO Firms: Evidence from India","authors":"Aafreen Khan, Ashu Khanna","doi":"10.1177/09721509231184571","DOIUrl":"https://doi.org/10.1177/09721509231184571","url":null,"abstract":"The present study shades light on the short-term wealth effects of the share repurchase decision of Indian IPO firms on their stock prices. For the years 2000–2019, the sample considers the IPO companies who announce buybacks within 5 years after their listing. By evaluating short-term fluctuations in stock prices around the buyback announcement date, wealth effects have been quantified using the event study approach. According to our empirical investigation, investors responded favourably to the news and produced positive 1.13% nonsignificant abnormal returns on the event day. Further investigation finds that these companies likewise endure erratic stock performance in the days that follow the announcement, with the exception of the day when they actually purchase back their shares, which produced positive and significant abnormal returns to investors of 0.92%. Also, over the event window, the results are positive at 10.69% and significant. Our results show that investors favourably view share repurchase by IPO firms and can regard it as a sound investment strategy. This study also adds to the scanty literature about newly listed firms’ payout preferences.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":"1 1","pages":""},"PeriodicalIF":2.4,"publicationDate":"2023-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"65335115","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
P. Rai, B. B. Mohapatra, A. J. Meitei, Vanita Jain
{"title":"Major Determinants of Bank Profitability in India: A Machine Learning Approach","authors":"P. Rai, B. B. Mohapatra, A. J. Meitei, Vanita Jain","doi":"10.1177/09721509231184763","DOIUrl":"https://doi.org/10.1177/09721509231184763","url":null,"abstract":"From reforms and fin-tech revolutions to macro-economic shocks, the Indian banking sector has witnessed rapid changes over the last two decades, which has significant implications for banks’ profitability. Viewing bank profitability from three different dimensions, Net Interest Margins (NIM), Return on Assets (RoA) and Return on Equity (RoE), this study has explored the key determinants with the help of machine learning algorithms. It has used a pooled data set of domestic and commercial banks covering 2005–2021. As a dependent variable, profitability by each measure (NIM, RoA and RoE) is reclassified into three categories, above average, average and below average, based on their quartiles. Twenty-one explanatory variables comprising bank-specific, macroeconomic and policy variables are chosen after due validation using feature selection methodology and multicollinearity check. The random forest (RF) classification algorithm is executed using the CARET package in R. The results obtained from feature selection are corroborated with the RF classification findings. The results are robust and give clear-cut visibility of unique and common factors influencing three profitability measures at varying levels. The classification estimates suggest that the bank-specific variables are major determinants of NIM, while macroeconomic and policy variables are the key determinants of RoA and RoE. Further, the results also suggest that the ratio of non-performing assets to total assets and business per employee are two such bank-specific determinants that play an important role in all three dimensions of profitability. Thus, recapitalization and automation will play an important role in bank profitability.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2023-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44956494","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Multiscale Price Discovery in the Global Futures Markets: Evidence from Wavelet Analysis","authors":"A. Zainudin, Azhar Mohamad","doi":"10.1177/09721509231185832","DOIUrl":"https://doi.org/10.1177/09721509231185832","url":null,"abstract":"The sharp increase in liquidity has exacerbated volatility in futures markets. The shocks in volatility patterns have triggered the urgent need to re-examine the efficiency of futures markets, but this time on a time scale. In this study, we examine the effectiveness of global futures markets as a reference for future prices. We perform spectrogram analysis to determine the signal sensitivity of both markets, as expressed by the association between the spot and futures markets. We also observe the correlation pattern of spot and futures co-movements in the time-frequency domain. Our study shows that agricultural and energy markets are inefficient in the short term. The low short-term positive correlation leads to a temporary divergence in spot and futures prices, which provides a profit opportunity for futures contract speculators.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2023-08-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43071983","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Analysing the Impact of Perceived Risk, Trust and Past Purchase Satisfaction on Repurchase Intentions in Case of Online Grocery Shopping in India","authors":"Upasana Gupta, N. Kumar","doi":"10.1177/09721509231178989","DOIUrl":"https://doi.org/10.1177/09721509231178989","url":null,"abstract":"The Indian online grocery market has been propelling since last few years. The size of online grocery market in 2020 was estimated as $2.9 billion and it is further anticipated to reach at the compound annual growth rate (CAGR) of 37.1% during 2021 to 2028. Companies such as Amazon, Flipkart grocery, BigBasket, Grofers and Jiomart have been coming up with new attractions for consumers such as providing timely no contact delivery, accepting various digital modes of payment and offering several discounts which have fascinated consumers towards buying their regular grocery from various online platforms. Corona virus has also fuelled up the safety concerns of people; due to which a large section of the citizens are working from home and are dependent on the online platform for various purposes including grocery shopping. This has provided several growth opportunities to the online grocery market. This research investigates about the purchase behaviour of customers towards online grocery shopping. The study aims to understand the purchase behaviour of e-grocery shoppers of India and to examine the association between satisfactions with online purchase, trust on online grocers, perceived risk and online repurchase intention of grocery items. The study uses primary data collected from 555 online grocery buyers. The findings of the study indicate that online customer satisfaction is a significant factor that influences repurchase intentions of online grocery shopping. Perceived risk negatively influence trust as well as repurchase intentions. Trust is found to be a mediating factor between shopping satisfaction and repurchase intentions. The study also builds and tests an online customer behavioural model with actual purchasing behaviour and identifies the continued presence of perceived risk, shopping satisfaction and trust in grocery e-retailing.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2023-08-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47070449","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Constructing the ‘Public Interest’: (De)legitimizing the Acquisition of Aer Lingus by IAG","authors":"Joseph K. Fitzgerald","doi":"10.1177/09721509231182529","DOIUrl":"https://doi.org/10.1177/09721509231182529","url":null,"abstract":"This article assesses how the ‘Public Interest’ was used to (de)legitimize the acquisition of a national airline. It does this by adopting a case study approach that analyses the acquisition of Aer Lingus by International Consolidated Airlines Group (IAG). This acquisition is part of a broader trend of international consolidation that the aviation industry has experienced in recent years. The article also critiques whether the ‘Public Interest’ was constructed on valid grounds. Its analysis found that the public interest was constructed as the continuance of routes between Irish airports and London Heathrow as a means for Ireland to maintain international connectivity. However, this article questions the validity of how the ‘Public Interest’ was constructed, suggesting that although the Public Interest does appear to be served by maintaining international connectivity, it is less clear whether connectivity with London Heathrow serves the interests of the public. Notwithstanding this critique, IAG was able to successfully use the maintenance of the Public Interest to successfully execute its acquisition of Aer Lingus.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2023-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48314889","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"FDI Inflows and Urbanization: A Cross-country Comparison from Asia, Africa and Latin America","authors":"Mita Bhattacharya, S. Behera, D. Dash, N. Apergis","doi":"10.1177/09721509231185829","DOIUrl":"https://doi.org/10.1177/09721509231185829","url":null,"abstract":"Since the last three decades, urbanization has been considered an engine of economic development and attracting foreign investment, particularly for developing countries. We explore the role of urbanization upon inward foreign direct investment (FDI) for a panel of 58 developing economies from Asia, Africa and Latin America. Empirical results reveal a complementary relationship between urbanization and FDI. Moreover, empirical findings suggest that urbanization in developing economies reaps positive benefits from FDI, provides MNCs with a safe investment climate and facilitates FDI inflows. Further, empirical results reflect the role of sociopolitical openness and infrastructure (in particular, energy and transport) in fostering FDI inflows. We suggest fostering appropriate infrastructure and sociopolitical openness will accelerate urban development and create a conducive environment for FDI inflows. Governments and policy practitioners should implement policies to mobilize foreign capital to accelerate urbanization.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2023-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47515874","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Muhammad Madyan, I. Harymawan, Adib Minanurohman, Wulan Rahmadani Setiawan
{"title":"The Impact of Top Management Education from Reputable Universities on Corporate Capital Structure: Evidence from Indonesia","authors":"Muhammad Madyan, I. Harymawan, Adib Minanurohman, Wulan Rahmadani Setiawan","doi":"10.1177/09721509231182525","DOIUrl":"https://doi.org/10.1177/09721509231182525","url":null,"abstract":"This article aims to analyse the relationship between the chief executive and financial officer (CEO and CFO) from reputable universities and capital structure. We use least-square regression using 3,003 firm-year observations of companies listed in Indonesia from all industries except the financial sector from 2010 to 2019. Consistent with the hypothesis development, the results show that CEOs and CFO from reputable universities have a significant positive relation to the debt-equity ratio. The same result is also shown in the robust test using coarsened exact matching (CEM) and Heckman’s two-stage model. We also document that in a high-growth industry, CEO reputation plays an important effect on capital structure, meanwhile in a low growth industry, CFO does. Interestingly, only the company who has low-tech industry shows a significant education reputation on capital structure. We also separate the sample using education levels, undergraduate and postgraduate. These findings will interest policymakers and companies when recruiting top managers to consider their educational background because it influences capital structure decisions. This study provides a theoretical contribution to the literature on the relationship between top management educational background and capital structure in Indonesia.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2023-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46216385","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Effect of Workplace Loneliness on Employee Wellbeing: Role of Organizational Support and Resilience","authors":"Swati Dhir, Mamta Mohapatra, Shalini Srivastava","doi":"10.1177/09721509231174738","DOIUrl":"https://doi.org/10.1177/09721509231174738","url":null,"abstract":"Workplace loneliness is the perception of relationship deficit in any organization which hampers the employee’s psychological well-being, which is an essential attribute for overall organizational performance. The objective of this study is to understand the effect of workplace loneliness and perceived organizational support on psychological well-being and the moderating effect of resilience on psychological well-being. The study has gathered 391 data points from various working executives in different organizations in India. The data have been analysed by using Partial Least Square Structural Equation Modelling (PLS-SEM). The results have shown a negative association between workplace loneliness and a positive association with perceived organizational support for psychological well-being. It has also been exhibited that resilient employees discount the perception of loneliness in the workplace. The results of this study will certainly help organizations design their policies for supporting employees and develop resilient employees through necessary interventions. The study is unique in highlighting the effect of one of the negative workplace attributes and the essential ways to overcome the same in a single study.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2023-07-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43178831","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Digital Orientation and Practices Adopted by the New Startups: Antecedents and Influences on Firm’s Performance","authors":"Bhavika Bali, R. Joshi","doi":"10.1177/09721509231163015","DOIUrl":"https://doi.org/10.1177/09721509231163015","url":null,"abstract":"The digital orientation of startups represents a set of distinct behavioural dimensions emphasizing on planned adoption of digital technology. However, how startups become digitally oriented is unclear. Analysing the factors leading to adopting digital orientation can help startups learn the facets of strategy most influential in driving performance through digital technology use. The study uses the technique of structural equation modelling to establish entrepreneurial, market, technology and learning orientations as the antecedents of digital orientation. Survey data from 350 startup owners in India were collected by operationalizing the theoretical constructs using established scales. Subsequently, the direct impact of digital orientation on financial performance is examined. Further, the research provides implications for practitioners and policymakers.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2023-07-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44186850","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Naseem Al Rahahleh, Mohammad Altawili, Tameem Al Bassam
{"title":"Silo Effects and Financial Performance: Evidence from an Emerging Market","authors":"Naseem Al Rahahleh, Mohammad Altawili, Tameem Al Bassam","doi":"10.1177/09721509231166192","DOIUrl":"https://doi.org/10.1177/09721509231166192","url":null,"abstract":"Focusing on identifying the impact of silos, this article addresses a gap in the literature in terms of the mediating role of collaboration between silo-busting techniques and the productivity and financial performance of Saudi firms. Through an investigation of multiple hypotheses tested via partial least-squares structural equation modelling, the relationship between silo-busting techniques and productivity and financial performance is tested in quantitative terms, thereby providing the first evidence for this relationship in the focal context. On the basis of this modelling approach, silo-busting techniques are shown to be a significant predictor of productivity and financial performance. Further, the results show that silo-busting techniques play an additional related role in shaping productivity and financial performance—that is, these techniques foster collaboration within a given firm. In fact, practicing silo-busting techniques can help improve firm performance. In relation to the present business environment, the results indicate that firms should make significant investments in all five silo-busting factors—values, leadership, collaborative environment, collaborative operating model and people reward and development—in order to improve collaboration results and, therefore, productivity and financial performance. However, particular emphasis should be placed on collaborative operating model and people reward and development as the only two factors shown to strongly support firm performance.","PeriodicalId":47569,"journal":{"name":"Global Business Review","volume":" ","pages":""},"PeriodicalIF":2.4,"publicationDate":"2023-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42350690","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}