Venture capital and private equity investors,governance, and success of IPOs: Evidence from India

In this article, we examine the role of domestic and foreign venture capital and private equity (VCPE) firms in India. We find robust evidence that portfolio firms backed by foreign VCPE firms incorporate effective governance structures after the initial public offering (IPO). Specifically, these firms are associated with smaller, more independent, and gender-diverse boards. Furthermore, our results suggest that foreign VCPE firms continue their association with their portfolio firms in the post-IPO period by nominating directors to the boards. Our results also suggest that portfolio firms backed by foreign VCPE firms are associated with better long-term operating performance and profitability. This positive effect is exacerbated by the presence of independent and female directors. Collectively, our results support the view that good governance practices are key to the long-term success of a business, especially in economies that lack good legal systems, developed financial markets, and alternative investment opportunities and where developing trust between parties in a transaction is crucial.     

Information and Communication Behaviour of Women Space Technologists

The author has carried out a survey to inquire into the information and communication behaviour of men and women space technologists in India. Members of a population of about 800, of whom about 70 were women, were questioned about their information seeking and transmission activities. The survey showed that on almost all aspects, including time spent on collecting information, number of contacts outside the organization, consultations with library staff, dependence on informal sources of information and so on, there were not significant differences between the sexes. The only important differences were that women used formal sources such as library documentation and consulted internal sources of information more than did men, and were much less likely to be gatekeepers. But women space technologists appeared to have low information potential in the sociometric analysis of informal contacts of the respondents as they were less likely to be chosen for discussion, advice and information by respondents than were men space technologists.     

Do firm characteristics affect environmental sustainability? A literature review-based assessment

Combating environmental pollution and climate change mandates strong commitment and participation of all firms across sectors. However, the environmental conduct of firms is seen to vary as per their characteristics, especially their size, ownership, and age. Current understanding of these characteristics' influence on environmental sustainability is limited, fragmented, and scattered across the literature, which this study seeks to improve and contribute to. Based on a rigorous screening of the last 25 years' literature (1996–2020), the study develops a comprehensive understanding of firm characteristics' implications for environmental sustainability, namely, environmental practices implementation, environmental drivers, environmental barriers, and associated (environmental, cost/economic, operational, and organizational) performance implications. Several meaningful and generalizable trends, conflicts, and consensus, or lack thereof, are revealed. For instance, the extent of environmental practices' implementation can be seen to be greater at large firms' (vis-à-vis small ones) and at foreign firms' (vis-à-vis local ones), though not much difference is seen between old and new firms. Also, several metafactors such as resources availability, innovation propensity, and bureaucracy and organizational inertia are identified that explain the differential influence of firm characteristics on environmental sustainability and dispel erroneous stereotypes. Finally, gaps in the literature offering avenues for future research are highlighted along with implications for research, theory, and practice. Results are expected to help policymakers and practitioners develop policies/interventions that ensure all firms, irrespective of their characteristics contribute to environmental sustainability. A comprehensive review of this kind has not been previously undertaken and constitutes the novelty of this work.     

International acquisitions in the united states: Evidence from returns to foreign bidders

This paper provides evidence on the minimally explored topic of abnormal returns earned by stockholders of foreign bidders seeking to acquire a target firm in the USA. Four sources of influence on abnormal returns are identified: changes in net wealth of the bidder associated with changes in exchange rates; possible value-destroying managerial discretionary behavior by bidders with excess cash flows, as suggested by Jensen; comparative advantages for foreign bidders domiciled in relatively favorable tax jurisdictions; ownership status of the target, i.e. whether the target is an entire firm and whether it involves divested assets. The study includes 77 firms from 10 countries. The results show that stockholders of foreign bidders earn significant, negative abnormal returns surrounding the announcement of an acquisition in the USA. These abnormal returns become increasingly negative over the 15 days after the announcement of the acquisition, indicating that more information about the acquisition is revealed to investors subsequent to the initial announcement. Cross-sectional regressions indicate that relative exchange rates and cash positions explain variation in abnormal returns. A decline in the value of the dollar increases abnormal returns for the foreign bidder, thus supporting the net wealth hypothesis. The results also show that cash-rich foreign firms tend to enjoy higher abnormal returns when making acquisitions in the USA. The result provides support for the Froot and Stein cash-constrained hypothesis rather than for Jensen's free-cash-flow theory.     

Consumer behavior change at the base of the pyramid: Bridging the gap between for‐profit and social responsibility strategies

This longitudinal field experiment compares two different for‐profit market entry strategies with a philanthropic strategy in terms of how each influences consumer behavior in base‐of‐the‐pyramid communities. We analyze reactions to a water purification product offered at three price points (moderate discount, deep discount, and free) in rural Malawi. We find that those who paid the deeply discounted price remain more likely to re‐obtain and use the product than do those who paid the moderate price or who took it for free. Copyright © 2014 John Wiley & Sons, Ltd.     

How motivation,opportunity, and ability drive knowledge sharing: The constraining-factor model

We introduce and empirically test a theoretical metamodel that explains knowledge-sharing behavior among employees. Building on the well-established motivation–opportunity–ability (MOA) framework, we posit that knowledge sharing among employees is a function of their MOA to do so. Existing literature suggests that the interaction among motivation, opportunity, and ability drives knowledge-sharing behavior. In contrast, we specify a new model in which the “bottleneck” or constraining factor among the MOA variables determines the degree of knowledge sharing that occurs. This constraining-factor model (CFM) fits the data better than the traditional multiplicative model and reveals a new, qualitatively different portrait of knowledge sharing that resolves some of the puzzles in the previous literature. The CFM provides macro-level insights with respect to how operations managers can improve employee knowledge sharing by focusing on the bottleneck MOA variable. As a result, the CFM can help set strategic directions of related policies. The model emphasizes that, counter to conventional wisdom, the MOA variables should not be addressed independently, but rather in a dynamic and coordinated way.     

Public Attitudes toward Agrobiotechnology: The Mediating Role of Risk Perceptions on the Impact of Trust, Awareness, and Outrage

Using Fishbein's multiattribute and mediation models as conceptual frameworks, we propose that the impact of trust, awareness, sense of outrage, and socio-demographic variables on attitudes toward agrobiotechnology are mediated by risk perceptions. The proposition was validated using large survey data collected in the United States and United Kingdom. Results show that trust, sense of outrage, and socio-demographic factors play an important role in shaping public attitudes about agrobitoechnology, largely via their links to risk perceptions. Moreover, risk perceptions exert a greater effect on public attitudes toward agrobiotechnology than benefit perceptions. Finally, the attitudes of U.K. consumers were more susceptible to negative attributes when compared with U.S. consumers.     

Bayesian estimation of discrete games of complete information

Estimation of discrete games of complete information, which have been applied to a variety of contexts such as market entry, technology adoption and peer effects, is challenging due to the presence of multiple equilibria. In this paper, we take a Bayesian MCMC approach to this problem, specifying a prior over multiple equilibrium selection mechanisms reflecting the analysts uncertainty over them. We develop a sampler, using the reversible jump algorithm to generate draws from the posterior distribution of parameters across these equilibrium selection rules. The algorithm is flexible in that it can be used both in situations where the equilibrium selection rule is identified and when it is not, and accommodates heterogeneity in equilibrium selection. We explore the methodology using both simulated data and two empirical applications, one in the context of joint consumption, using a dataset of casino visit decisions by married couples, and the second in the context of market entry by competing chains in the retail stationery market. We demonstrate the importance of accounting for multiple equilibrium selection rules in these applications and show that taking an empirical approach to the issue, such as the one we have demonstrated, can be useful.     

The Impact of Go‐Shop Provisions in Merger Agreements

We examine whether go‐shop provisions in merger agreements are used to benefit target shareholders or for agency/entrenchment reasons. We find that go‐shop provisions are more likely in deals involving the negotiation selling method, financial buyers and all cash financing, and in targets with less valuation uncertainty. We confirm that go‐shops have a positive association with the initial offer premium. Results suggest that deals with go‐shop provisions are more likely to have a competing bid and an upward revision of the initial offer premium. Collectively, our results indicate that go‐shops are effective contractual devices used to further target shareholder interests.