Stock market integration and volatility spillover: India and its major Asian counterparts

Stock market integration and volatility spillover between India and its major Asian counterparties is studied. Apart from different degrees of correlations, contemporaneous intraday return spillovers between India and its Asian counterparts are found to be positively significant and bi-directional. Hong Kong, Korea, Singapore and Thailand are found to be four Asian markets from where there is significant flow of information in India. Though most of the information gets transmitted between the markets without much delay, some amount of information still remains unsent and is found to be successfully transmitted as soon as the domestic market opens in the next day.     

Exploring the enablers and inhibitors of electric vehicle adoption intention from sellers' perspective in India: A view of the dual‐factor model

The electric vehicle (EV) is a crucial innovation with the potential to lower greenhouse gas emissions and help reduce the causes of climate change. Despite their multiple benefits, EVs are selling lower numbers than would be expected, seeming to require more positive intent from their sellers to increase the pace of EV adoption. Hence, this study explores the enablers and inhibitors of EV adoption intention from the sellers' perspective using a dual‐factor model. The extended theory of planned behavior has been used to explore the enablers, whereas the status quo bias theory has been used to explore the inhibitors of EV adoption. The results indicate that attitude, subjective norm, perceived behavioral control, environmental concern, and perceived corporate social responsibility obligation have significant positive impacts on intention to adopt EVs. However, regret avoidance, inertia, perceived threat, and perceived value have significant impacts on the resistance to adopt EVs. This study enriches the literature related to intention and resistance to adopt green technology and also provides several suggestions to marketers for increasing the pace of EV adoption.     

Philanthropy and the Making of a New Moral Order: A History of Developing Community

Journal of Business Ethics - Community development, or the socio-economic transformation of local communities, has been a significant focus of organizational ethics. Such community development...     

How legacy firms can embrace the digital ecosystem via digital customer orientation

Journal of the Academy of Marketing Science - Because of modern digital technologies, business environments are turning into digital ecosystems, wherein a firm’s traditional interdependencies...     

Stakeholder pressure for sustainability: Can ‘innovative capabilities’ explain the idiosyncratic response in the manufacturing firms?

This study explores role of innovative capabilities in determining a manufacturing firm's response to stakeholder pressure for adopting sustainable practices. Drawing on the theory of conservatism, we delineate that the firm's response is idiosyncratic and undergirded in the nature of its innovative capabilities. Our empirical investigation reveals that the response to the stakeholder pressure is mediated by the nature of the firm's innovative capabilities. Indian manufacturing firms are identified as unit of analysis for this study. The individual manufacturing facilities implement the environmental practices. The findings suggest that the manufacturing firm's exposure to exploitative/exploratory innovative capabilities triggers sustainable behaviours with ephemeral focus and enduring focus. Further, the exploratory/exploitative innovation is capable of explaining idiosyncratic behaviour for the firms' sustainability practices adoption. The findings delineate, with analysis, that unlike China, regulatory stakeholder pressures in India inhibit the adoption of sustainable practices with enduring focus in manufacturing firms.     

Are Current Account Deficits Sustainable? Evidence from Dynamic Panel Data Analysis

This paper examines two issues, namely, whether the current account deficit (CAD) is sustainable, and the degree of sustainability for a panel consisting of 129 countries over the period 1981–2013. To this end, we investigate the relationship between exports and imports for various income and region categories. Our finding from the pooled mean group estimator suggests that CAD is “weakly” sustainable in most of the country groups. This implies that sustainable current account is consistent with the sustainability of external debts. Further, the adjustment coefficient is found to be rather low for all the country groups. This indicates that the speed of convergence toward the long-run equilibrium in the event of short-run disturbances is faster. Finally, we discuss policy implications of our findings.

     

Economic Properties of Statistical Indices: The Case of a Multidimensional Gini Index: A Correction and an Addition

Journal of Quantitative Economics - This note corrects an error in a paper published recently in this journal and also shows that the index proposed there satisfies an important additional property.     

Indian equity options: Smile,risk premiums,and efficiency

We study the pricing of equity options in India which is one of the world's largest options markets. Our findings are supportive of market efficiency: A parsimonious smile-adjusted Black model fits option prices well, and the implied volatility (IV) has incremental predictive power for future volatility. However, the risk premium embedded in IV for Single Stock Options appears to be higher than in other markets. The study suggests that even a very liquid market with substantial participation of global institutional investors can have structural features that lead to systematic departures from the behavior of a fully rational market while being “microefficient.”     

Modeling Drivers and Barriers of Artificial Intelligence Adoption: Insights from a Strategic Management Perspective

Artificial intelligence (AI) in business processes and academic research in AI has significantly increased. However, the adoption of AI in organizational strategy is yet to be explored in extant literature. This study proposes two conceptual frameworks showing hierarchical relationships among the various drivers and barriers to AI adoption in organizational strategy. In a two-step approach, the literature study is first done to identify eight drivers of and nine barriers to AI adoption and validated by academic and industry experts. In the second step, MICMAC (matrice d'impacts croises-multiplication appliqúe a un classment or cross-impact matrix multiplication applied to classification) analysis categorizes the drivers and barriers to AI adoption in organizational strategy. Total interpretive structural modeling (TISM) is developed to understand the complex and hierarchical associations among the drivers and barriers. This is the first attempt to model the drivers and barriers using a methodology like TISM, which provides a comprehensive conceptual framework with hierarchical relationships and relative importance of the drivers and barriers to AI adoption. AI solutions' decision-making ability and accuracy are the most influential drivers that influence other driving factors. Lack of an AI adoption strategy, lack of AI talent, and lack of leadership commitment are the most significant barriers that affect other barriers. Recommendations for senior leadership are discussed to focus on the leading drivers and barriers. Also, the limitations and future research scope are addressed.     

Predicting hedge fund performance when fund returns are skewed

We show that fund-specific return skewness is associated with managerial skill and future hedge fund performance. Specifically, skewness in fund returns reflects managerial skill in avoiding large drawdowns. Using a new measure of investment skill that accounts for this managerial ability, we demonstrate that traditional performance measures underestimate (overestimate) managerial performance when returns exhibit positive (negative) fund-specific skewness. Our new measure is particularly valuable during periods of economic crisis, when the annual risk-adjusted outperformance is 5.5%.