Journal of Applied Management and Investments, 2014
At the heart of the CAPM lies the concept of systematic risk. The systematic risk of a security i... more At the heart of the CAPM lies the concept of systematic risk. The systematic risk of a security is that component of the total risk of the security that is explained by market risk. This study investigates the econometrics of the CAPM. In particular, it analyses Granger causality from market returns to security returns, the absence of which would weaken the significance of beta, and undermine the foundations of the CAPM.
Journal of strategic human resource management, Feb 1, 2018
The present study analyses the costs associated with the recruitment process in Indian informatio... more The present study analyses the costs associated with the recruitment process in Indian information technology companies. Recruitment costs include all the expenditure that organisations make towards hiring candidates as employees, including cost of contacting candidates, travel costs of the human resource unit, the direct and indirect logistics involved, the cost incurred to conduct tests, interviews, and so on. This study contributes to the literature in two ways. First, it proposes a model for recruitment process costing using the beta distribution, akin to the project evaluation and review technique (PERT) model. Second, it suggests that the overall recruitment process time also follows a beta distribution, due to the high correlation between the sub-process times. The proposed model is used to compare the overall recruitment process times for different target profiles using data collected from a sample of 50 Indian information technology companies.
Journal of commerce and accounting research, Oct 1, 2017
This study analyses the financial performance of Indian banks from three different points of view... more This study analyses the financial performance of Indian banks from three different points of view, viz. that of regulators, investors, and borrowers, using multi-criteria TOPSIS analysis. In particular, the financial performance of public sector banks is compared with that of private sector banks from these three points of view. The results of study show that the three different points of view of banking performance are very consistent with each other. Further, the results of the study clearly indicate that, in the Indian context, private sector banks are performing significantly better than public sector banks, and all of the top-performing banks identified from the TOPSIS analysis are private sector banks. The better performance of private sector banks may be attributed to professional, efficient management, and better customer focus and service; while the worse performance of public sector banks may be partially attributed to lack of professional, efficient management and partially to political interference and constraints.
Asian Journal of Research in Banking and Finance, 2013
Many firms in the service industry face the problem of disparate results in terms of efficiency. ... more Many firms in the service industry face the problem of disparate results in terms of efficiency. This problem is a cause of concern for many big organizations such as banks, hotels, courier companies, and so on. In particular, the last decade has witnessed continuous changes in regulation, technology and competition in the global financial services industry, and Indian banks are no exception. Rising cost-income ratios and declining profitability reflect increased competitive pressure. To assess the stability of the banking system, it is therefore crucial to benchmark the performance of banks operating in India. An efficient banking system contributes in an extensive way to higher economic growth in any country. Thus, studies of banking efficiency are very important for policy makers, industry leaders and many others who are reliant on the banking sector.
Journal of Applied Management and Investments, 2018
The book-to-market effect is one of the most widely-studied phenomena in stock returns. It is cha... more The book-to-market effect is one of the most widely-studied phenomena in stock returns. It is characterized by high book-to-market ratio stocks yielding higher returns than low book-to-market ratio stocks, i.e. when stock returns are positively related with book-to-market ratios. The classic Fama-French methodology for analyzing the book-to-market effect involves the comparison of the rates of return of a portfolio consisting of high book-to-market stocks with a portfolio consisting of low book-to-market stocks. The present study contributes to the literature by proposing different methodology for testing the book-to-market effect, viz. fixed-effects panel regression analysis. This study examines the book-to-market effect for banking stocks in the National Stock Exchange (NSE) of India. The data for the study was collected for a sample of eighteen stocks from the banking industry, for the period 01/04/2004 - 31/03/2014. The measures of stock performance considered in the study were mean returns, standard deviation of returns, beta, and the Sharpe and Treynor ratios. The book-to-market ratio was computed from the annual financial statements of the banks. The analysis was performed using fixed-effects panel regression analysis of stock performance on the book-to-market ratio, controlling for stock-specific and period-specific effects. The results of the study indicate significant negative relationship between the book-to-market ratio and the mean returns, Sharpe ratio, and Treynor ratio, significant positive relationship between the book-to-market ratio and beta, and no significant relationship between the book-to-market ratio and standard deviation of returns.
Journal of Applied Management and Investments, 2016
The role of microfinance institutions is to provide credit to the poor who have no access to comm... more The role of microfinance institutions is to provide credit to the poor who have no access to commercial banks. A major challenge for microfinance institutions is that of financial sustainability, with several of them appearing to be often loss making. Recently, however, there has been a renewed focus on the financial sustainability and efficiency of microfinance institutions, which is essential for the well-being of the financial system in developing countries. This study examines the efficiency of microfinance institutions in India using a modified form of Data Envelopment Analysis. The data for the study was collected on a sample of thirty microfinance institutions in India from the Microfinance Information eXchange (MIX). The results of the analysis indicate the inefficiencies in the microfinance sector.
Attrition/retention of employees has always been a perennial problem for Indian IT/ITeS companies... more Attrition/retention of employees has always been a perennial problem for Indian IT/ITeS companies. Their major challenge is to design their incentives/retention strategies to ensure that they retain qualified professionals with the right mix of skill sets and experience. This study focuses on the factors affecting attrition in the Indian IT majors. Compensation-related factors were identified as the most important factors affecting attrition, followed by career growth factors, job satisfaction factors, and work environment factors. Further, attrition due to work environment factors and attrition due to compensation-related factors were the only factors with significant impact on the attrition rate.
ABSTRACT The present study investigates the technical efficiency of Indian banks, segmented in te... more ABSTRACT The present study investigates the technical efficiency of Indian banks, segmented in terms of ownership. For this purpose, the Data Envelopment Analysis (DEA) model was used with five input variables (borrowings, deposits, fixed assets, net worth, and operating expenses) and four output variables (advances and loans, investments, net interest income, and non-interest income), and the efficiency scores were calculated for a sample of 49 major banks operating in India. The findings of the study help in identifying the inputs and outputs that each of the banks would need to control and streamline to enhance their efficiency.
Journal of Applied Management and Investments, 2017
The market portfolio plays a pivotal role in asset pricing. W. Sharpe proposed a model for the ma... more The market portfolio plays a pivotal role in asset pricing. W. Sharpe proposed a model for the market portfolio based on optimizing the excess expected returns to total risk. Unfortunately, empirical studies using Sharpe's model in the CAPM explain asset expected returns only to a moderate extent. The present study proposes a model for the market portfolio which maximally explains expected returns of assets, under a given asset pricing model. This model is compared with five other constructions, viz. the equally-weighted portfolio, the value-weighted portfolio, the maximum returns portfolio, the minimum risk portfolio, and the Sharpe portfolio, in terms of their risk-return properties, the statistical properties of their implied SMLs, and their efficiency.
Journal of supply chain management systems, May 16, 2011
This study analyses the impact of uncertainty at different points in the textile supply chain, an... more This study analyses the impact of uncertainty at different points in the textile supply chain, and tries to identify the weak points in the supply chain. The design adopted for the study is descriptive in nature, involving primary data collection from a sample of textile units in Bangalore city. The data was collected by interviewing the different textile units about their supply chain practices, the constraints they face in terms of uncertainty, and strategies adopted by them to resolve it. The paper suggests appropriate strategies and solutions to manage the uncertainty that occurs in textile supply chains at various nodes and due to varied reasons.
There has been some improvement in the Indian banking sector after the reforms, and CAMELS framew... more There has been some improvement in the Indian banking sector after the reforms, and CAMELS framework is a natural framework to analyze this improvement. The present study compares the performance of public sector banks with private/foreign banks under the CAMELS framework. The data used for the study were the audited financial statements of a sample of 58 Indian banks for the period 2003-08. The results of the study show that private/foreign banks fared better than public sector banks on most of the CAMELS factors in the study period. The two contributing factors for the better performance of private/foreign banks were Management Soundness and Earnings and Profitability.
The term ‘basic customer service’ encompasses those services that are provided to customers free ... more The term ‘basic customer service’ encompasses those services that are provided to customers free of charge, along with the core product and/or service offering. The concept is similar to that of supplementary customer service, developed by Parashuraman (1998).The primary objectives of the present study are:(1) to examine the characteristics of organisations providing superior basic customer service as opposed to organisations delivering inferior basic customer service, in terms of customer complaint handling systems and culture, and(2) to analyze the impact of such basic customer service on customer loyalty.The study is based on primary data collection using a structured questionnaire from a sample of business organisations in Bangalore, India. The sample companies were elicited from a panel of consumers who were asked to identify organisations providing superior basic customer service as opposed to organisations delivering inferior basic customer service, and what elements distinguished these two groups.Some of the indicative findings are:(1) Organisations providing superior basic customer service had a higher frequency of daily reviewing of customer complaints (56.7%) than organisations delivering inferior basic customer service (46.9%), but this narrows down when considering weekly review (81.7% and 79.7%, respectively). Thus, establishing a proper and timely customer complaint review system would enable organisations to provide superior basic customer service.(2) Organisations providing superior basic customer service had inbuilt corrective processes and/or actions for handling customer complaints (88.3%), as opposed to organisations delivering inferior basic customer service (76.6%). Thus, instituting an inbuilt corrective process for handling customer complaints would definitely provide greater satisfaction to the stakeholders and would thereby enable organisations to provide superior basic customer service.(3) Organisations providing superior basic customer service had a higher frequency of informing customers regarding customer complaint resolution within a day (35.0%) than organisations delivering inferior basic customer service (23.4%), and this gap widens when considering weekly information (58.3% and 42.2%, respectively). Streamlining the process of informing customers on complaint resolution would further enable organisations to provide superior basic customer service.(4) Organisations providing superior basic customer service fostered a customer-centric culture amongst employees, and in many such organisations it was top management’s involvement through periodic review of customer complaints that made the difference. In particular, organisations providing superior basic customer service strongly believe that customer service must be backed with top management commitment, with full employee involvement.(5) Organisations providing superior basic customer service had a higher rate of customer retention (51.83%) than organisations delivering inferior basic customer service (46.33%). Of course, customer retention/repeat purchase varied considerably with core product/service; superior basic customer service contributed to customer retention by providing a solid foundation for customer relationship.The study indicates that systems for frequent reviewing of customer complaints, with inbuilt corrective processes for handling customer complaints, and for providing adequate and timely information to customers on their complaints status, and a customer-centric organisational culture are crucial in delivering superior basic customer service, thereby enhancing customer retention and loyalty.
Journal of Applied Management and Investments, 2014
At the heart of the CAPM lies the concept of systematic risk. The systematic risk of a security i... more At the heart of the CAPM lies the concept of systematic risk. The systematic risk of a security is that component of the total risk of the security that is explained by market risk. This study investigates the econometrics of the CAPM. In particular, it analyses Granger causality from market returns to security returns, the absence of which would weaken the significance of beta, and undermine the foundations of the CAPM.
Journal of strategic human resource management, Feb 1, 2018
The present study analyses the costs associated with the recruitment process in Indian informatio... more The present study analyses the costs associated with the recruitment process in Indian information technology companies. Recruitment costs include all the expenditure that organisations make towards hiring candidates as employees, including cost of contacting candidates, travel costs of the human resource unit, the direct and indirect logistics involved, the cost incurred to conduct tests, interviews, and so on. This study contributes to the literature in two ways. First, it proposes a model for recruitment process costing using the beta distribution, akin to the project evaluation and review technique (PERT) model. Second, it suggests that the overall recruitment process time also follows a beta distribution, due to the high correlation between the sub-process times. The proposed model is used to compare the overall recruitment process times for different target profiles using data collected from a sample of 50 Indian information technology companies.
Journal of commerce and accounting research, Oct 1, 2017
This study analyses the financial performance of Indian banks from three different points of view... more This study analyses the financial performance of Indian banks from three different points of view, viz. that of regulators, investors, and borrowers, using multi-criteria TOPSIS analysis. In particular, the financial performance of public sector banks is compared with that of private sector banks from these three points of view. The results of study show that the three different points of view of banking performance are very consistent with each other. Further, the results of the study clearly indicate that, in the Indian context, private sector banks are performing significantly better than public sector banks, and all of the top-performing banks identified from the TOPSIS analysis are private sector banks. The better performance of private sector banks may be attributed to professional, efficient management, and better customer focus and service; while the worse performance of public sector banks may be partially attributed to lack of professional, efficient management and partially to political interference and constraints.
Asian Journal of Research in Banking and Finance, 2013
Many firms in the service industry face the problem of disparate results in terms of efficiency. ... more Many firms in the service industry face the problem of disparate results in terms of efficiency. This problem is a cause of concern for many big organizations such as banks, hotels, courier companies, and so on. In particular, the last decade has witnessed continuous changes in regulation, technology and competition in the global financial services industry, and Indian banks are no exception. Rising cost-income ratios and declining profitability reflect increased competitive pressure. To assess the stability of the banking system, it is therefore crucial to benchmark the performance of banks operating in India. An efficient banking system contributes in an extensive way to higher economic growth in any country. Thus, studies of banking efficiency are very important for policy makers, industry leaders and many others who are reliant on the banking sector.
Journal of Applied Management and Investments, 2018
The book-to-market effect is one of the most widely-studied phenomena in stock returns. It is cha... more The book-to-market effect is one of the most widely-studied phenomena in stock returns. It is characterized by high book-to-market ratio stocks yielding higher returns than low book-to-market ratio stocks, i.e. when stock returns are positively related with book-to-market ratios. The classic Fama-French methodology for analyzing the book-to-market effect involves the comparison of the rates of return of a portfolio consisting of high book-to-market stocks with a portfolio consisting of low book-to-market stocks. The present study contributes to the literature by proposing different methodology for testing the book-to-market effect, viz. fixed-effects panel regression analysis. This study examines the book-to-market effect for banking stocks in the National Stock Exchange (NSE) of India. The data for the study was collected for a sample of eighteen stocks from the banking industry, for the period 01/04/2004 - 31/03/2014. The measures of stock performance considered in the study were mean returns, standard deviation of returns, beta, and the Sharpe and Treynor ratios. The book-to-market ratio was computed from the annual financial statements of the banks. The analysis was performed using fixed-effects panel regression analysis of stock performance on the book-to-market ratio, controlling for stock-specific and period-specific effects. The results of the study indicate significant negative relationship between the book-to-market ratio and the mean returns, Sharpe ratio, and Treynor ratio, significant positive relationship between the book-to-market ratio and beta, and no significant relationship between the book-to-market ratio and standard deviation of returns.
Journal of Applied Management and Investments, 2016
The role of microfinance institutions is to provide credit to the poor who have no access to comm... more The role of microfinance institutions is to provide credit to the poor who have no access to commercial banks. A major challenge for microfinance institutions is that of financial sustainability, with several of them appearing to be often loss making. Recently, however, there has been a renewed focus on the financial sustainability and efficiency of microfinance institutions, which is essential for the well-being of the financial system in developing countries. This study examines the efficiency of microfinance institutions in India using a modified form of Data Envelopment Analysis. The data for the study was collected on a sample of thirty microfinance institutions in India from the Microfinance Information eXchange (MIX). The results of the analysis indicate the inefficiencies in the microfinance sector.
Attrition/retention of employees has always been a perennial problem for Indian IT/ITeS companies... more Attrition/retention of employees has always been a perennial problem for Indian IT/ITeS companies. Their major challenge is to design their incentives/retention strategies to ensure that they retain qualified professionals with the right mix of skill sets and experience. This study focuses on the factors affecting attrition in the Indian IT majors. Compensation-related factors were identified as the most important factors affecting attrition, followed by career growth factors, job satisfaction factors, and work environment factors. Further, attrition due to work environment factors and attrition due to compensation-related factors were the only factors with significant impact on the attrition rate.
ABSTRACT The present study investigates the technical efficiency of Indian banks, segmented in te... more ABSTRACT The present study investigates the technical efficiency of Indian banks, segmented in terms of ownership. For this purpose, the Data Envelopment Analysis (DEA) model was used with five input variables (borrowings, deposits, fixed assets, net worth, and operating expenses) and four output variables (advances and loans, investments, net interest income, and non-interest income), and the efficiency scores were calculated for a sample of 49 major banks operating in India. The findings of the study help in identifying the inputs and outputs that each of the banks would need to control and streamline to enhance their efficiency.
Journal of Applied Management and Investments, 2017
The market portfolio plays a pivotal role in asset pricing. W. Sharpe proposed a model for the ma... more The market portfolio plays a pivotal role in asset pricing. W. Sharpe proposed a model for the market portfolio based on optimizing the excess expected returns to total risk. Unfortunately, empirical studies using Sharpe's model in the CAPM explain asset expected returns only to a moderate extent. The present study proposes a model for the market portfolio which maximally explains expected returns of assets, under a given asset pricing model. This model is compared with five other constructions, viz. the equally-weighted portfolio, the value-weighted portfolio, the maximum returns portfolio, the minimum risk portfolio, and the Sharpe portfolio, in terms of their risk-return properties, the statistical properties of their implied SMLs, and their efficiency.
Journal of supply chain management systems, May 16, 2011
This study analyses the impact of uncertainty at different points in the textile supply chain, an... more This study analyses the impact of uncertainty at different points in the textile supply chain, and tries to identify the weak points in the supply chain. The design adopted for the study is descriptive in nature, involving primary data collection from a sample of textile units in Bangalore city. The data was collected by interviewing the different textile units about their supply chain practices, the constraints they face in terms of uncertainty, and strategies adopted by them to resolve it. The paper suggests appropriate strategies and solutions to manage the uncertainty that occurs in textile supply chains at various nodes and due to varied reasons.
There has been some improvement in the Indian banking sector after the reforms, and CAMELS framew... more There has been some improvement in the Indian banking sector after the reforms, and CAMELS framework is a natural framework to analyze this improvement. The present study compares the performance of public sector banks with private/foreign banks under the CAMELS framework. The data used for the study were the audited financial statements of a sample of 58 Indian banks for the period 2003-08. The results of the study show that private/foreign banks fared better than public sector banks on most of the CAMELS factors in the study period. The two contributing factors for the better performance of private/foreign banks were Management Soundness and Earnings and Profitability.
The term ‘basic customer service’ encompasses those services that are provided to customers free ... more The term ‘basic customer service’ encompasses those services that are provided to customers free of charge, along with the core product and/or service offering. The concept is similar to that of supplementary customer service, developed by Parashuraman (1998).The primary objectives of the present study are:(1) to examine the characteristics of organisations providing superior basic customer service as opposed to organisations delivering inferior basic customer service, in terms of customer complaint handling systems and culture, and(2) to analyze the impact of such basic customer service on customer loyalty.The study is based on primary data collection using a structured questionnaire from a sample of business organisations in Bangalore, India. The sample companies were elicited from a panel of consumers who were asked to identify organisations providing superior basic customer service as opposed to organisations delivering inferior basic customer service, and what elements distinguished these two groups.Some of the indicative findings are:(1) Organisations providing superior basic customer service had a higher frequency of daily reviewing of customer complaints (56.7%) than organisations delivering inferior basic customer service (46.9%), but this narrows down when considering weekly review (81.7% and 79.7%, respectively). Thus, establishing a proper and timely customer complaint review system would enable organisations to provide superior basic customer service.(2) Organisations providing superior basic customer service had inbuilt corrective processes and/or actions for handling customer complaints (88.3%), as opposed to organisations delivering inferior basic customer service (76.6%). Thus, instituting an inbuilt corrective process for handling customer complaints would definitely provide greater satisfaction to the stakeholders and would thereby enable organisations to provide superior basic customer service.(3) Organisations providing superior basic customer service had a higher frequency of informing customers regarding customer complaint resolution within a day (35.0%) than organisations delivering inferior basic customer service (23.4%), and this gap widens when considering weekly information (58.3% and 42.2%, respectively). Streamlining the process of informing customers on complaint resolution would further enable organisations to provide superior basic customer service.(4) Organisations providing superior basic customer service fostered a customer-centric culture amongst employees, and in many such organisations it was top management’s involvement through periodic review of customer complaints that made the difference. In particular, organisations providing superior basic customer service strongly believe that customer service must be backed with top management commitment, with full employee involvement.(5) Organisations providing superior basic customer service had a higher rate of customer retention (51.83%) than organisations delivering inferior basic customer service (46.33%). Of course, customer retention/repeat purchase varied considerably with core product/service; superior basic customer service contributed to customer retention by providing a solid foundation for customer relationship.The study indicates that systems for frequent reviewing of customer complaints, with inbuilt corrective processes for handling customer complaints, and for providing adequate and timely information to customers on their complaints status, and a customer-centric organisational culture are crucial in delivering superior basic customer service, thereby enhancing customer retention and loyalty.
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