Indian Corporate Sector Research Articles

A STUDY ABOUT CAREER TRANSITION RESOURCES IN CORPORATE SECTOR IN INDIA

A STUDY ABOUT CAREER TRANSITION RESOURCES IN CORPORATE SECTOR IN INDIA

Sustainable Development and Corporate Social Responsibility in India: A Critique

Corporate Social Responsibility (hereinafter referred to as CSR) holds the profit striving corporate entities accountable towards contemporary social needs. One such area that needs consideration from both Government, as well as corporate entities, is environmental protection and development. Though the corporate sector in India has been contributing in bits and pieces towards environmental protection, by and large, there has been a lack of policy approach in contributing towards sustainable development by the corporate entities. The scenario seems to have changed a bit in the last few years, especially post statutory mandate of CSR under the Companies Act, 2013.This research paper is an attempt to analyze the statutory mandate of CSR u/s 135 of the Companies Act and subsequent amendments to it. It also contains a critical overview of Sustainable CSR activities by the corporate sector in India.

FCCBS ISSUE AND WEALTH EFFECTS –A PRE-CRISIS PERIOD PERSPECTIVE: EVIDENCE FROM INDIAN CORPORATE SECTOR

FCCBs is a fund raising instrument of Indian corporate sector to access the international investors. The various factors associated with FCCBs send positive and negative signal to the market during its issue, which in turn effect on the shareholders wealth. Majority of Indian FCCBs are issued during 2004-2010 in this period the major crisis period of the Indian stock market also falls .In order to avoid overlap possibilities of crisis effect, this study considered only the FCCBs which was issued during 2004 to 2007.We have used event study methodology for the analysis of 151 FCCB issue effects on shareholders wealth and the results shows the negative effect from FCFCCBs issue on shareholders wealth during the pre-crisis period in India.

Do health care companies of India fulfil government’s new orientation towards CSR activities

Purpose Corporate social responsibility (CSR) in India includes education, environment, healthcare and rural development. In post-liberalized India, the healthcare sector (services and facilities) has grown in leaps and bounds over last two decades. The purpose of this paper is to reveal and explain the CSR profile of select healthcare companies of India and reveal gaps and scope of healthcare activities with a special consideration towards maternal health. Design/methodology/approach Primary data are collected from seven listed companies of Goa state which were willing to participate in the study. In total, 67 companies constituting the Healthcare Sector Index of Standard & Poor of the Bombay Stock Exchange are considered as secondary source. Data of 59 companies that come within the threshold of Companies Act, 2013, are studied. CSR guidelines (with a turnover of Rs 10bn or a market capitalization of Rs 5bn or a net profit of Rs 50m) are taken as an initial frame of reference. Findings In total, 89.83 per cent of these companies have initiatives related to health care. Structured companies (contribute to the company’s overall mission and goals) with CSR policy have committee size varying from three to five directors with an independent director. During 2016–2017, they were mandated to spend Rs 4.2613bn out of which only 74.59 per cent was spent. Geographical spread of CSR initiatives is skewed, with majority of companies focussing on the states of Maharashtra and Gujarat, whereas the states of Odisha and North-Eastern being neglected. The focus areas of CSR are education, healthcare and rural development. The variation of MMR in different states of India is an indicator for corporate as to which state needs more attention. The corporate sector in India needs to focus on SDG3 target of MMR and move towards a newer dimension and direction. Originality/value The originality of this paper lies in the recognition of the initiative of Government of India of weaning out CSR activities outside the purview of business sense and towards instilling a social sense in company behaviour. This is a dimensional and directional change in the evolution of CSR practices in companies and countries. To this end, 59 healthcare sector companies under the threshold of Companies Act 2013 were studied and results were outlined.

Corporate Defaults and Banks Sustainability: An Empirical perspective of an Emerging Economy

In recent times, Indian corporate sector is experiencing financial distress for varied reasons. It is more so in case of the enterprises which are engaged in infrastructure sector particularly power, Telecommunication, Real Estate & Construction, Steel & Cement sectors, Engineering, Textiles and Pharmacy sectors. This stress is primarily contributed by the over exuberance in managerial decision making, policy paralysis, demand erosion, funds diversion and liberal credit allocation by the bankers defying the financial prudence of bank lending.

Social Reporting Practices in Indian Corporate Sector

The annual report is the widest way as a means of communication in the present world of economies. Every company report their financial statements and other business-related evidence in their annual reports. Almost every company keeps its annual reports in physical form and on websites today. The information disclosed by a company in its annual reports is highly dependent on competition as well as industry standards. The present study examines the disclosure of social information in the annual reports of Indian companies and also shows the relationship between Social Disclosure Index and industry sector. The study is based on a random sample of 106 companies, which comprise the DOLLEX-200 Index as on March 31, 2016. This sample of 106 companies includes 16 different industrial sectors. To measure the extent of social disclosures of the sample companies, a worksheet namely Social Disclosure Index (SDI) have been prepared. The results of the present research paper conclude that there is a significant positive relationship between the industry sector and Social Disclosure Index.

External commercial borrowings by the corporate sector in India

The growing levels of external commercial borrowings (ECBs) among the emerging and developing economies have raised the fears that ECBs would lead to widespread crisis and threaten financial stability in India. Against this backdrop, the current study seeks to examine the trends and critically evaluate the policy pertaining to ECBs. In order to immune the economy from potential exchange rate shocks, we suggest to having specific policy focus on the domestic bond market, hedging mechanisms, and appropriate decisions on the cap and level of ECBs by the regulator.

Unveiled the Impact of IFRS on Indian Corporate Sector

IFRSs are International Financial Reporting Standards, which are issued by the International Accounting Standard Board (IASB)1. IFRS is the globally accepted accounting standards. Indian accounting standard is converged with IFRS and called (IND AS). The objective of this paper is to examine the challenges and benefits of adoption of full-fledged IFRS in India. For the study, the survey method has been conducted. For data analysis, descriptive statistics and chi-square test have been used. Descriptive statistics results found the most effective, serious benefits and challenges on the basis of higher rank of mean score. Results of chi-square test revealed that there is no significant difference among different benefits and challenges available after the adoption of full-fledged IFRS, every benefit and challenge have equal importance for the Indian corporate sector.

That's a case of sexual harassment… Isn't it?

This case centres around a senior vice-president in a private bank, who becomes aware of a potential sexual harassment (SH) case within his team. The case captures his reactions, right from his initial attempt to understand the scenario, to his conversations with the woman concerned, and his eventual attempt to minimise the incident. The purpose of the case is to explore how such incidents can play out in the Indian corporate sector, where socio-cultural factors and gender role expectations influence the way organisational members perceive and respond to the complaints. Influence of factors such as gender role expectations, power dynamics, office politics, individual differences, and business concerns in a) perception of harassment incidents and b) attributes related to harassment incidents

A Study on Growth of Goods and Services Tax (GST) in India - An Golden Opportunity for Growth of Indian Corporate Sectors

The concept of Goods and Service Tax (GST) is one of the biggest revolutions in decades around the world. The main objective of this research is to investigates that the revenue collection of Goods and Service Tax (GST) month wise and its growth. It also examines that total number of 3 (b) and GSTR I return filed in Goods and Service Tax (GST) month, quarter wise and its growth rates as on 30th April, 2019 in India. This study used secondary data. This study used to descriptive statistical tools used such as tables, charts, percentage analysis for analysis and interpretation of data. Inferential statistical tools used such as correlation, paired t test to test various hypotheses of the study. The study period covered since its implementation to as on 30th April, 2019. This results of study indicated that total number of 1,31,88,052 GST tax payer and totally 20,31,884 (Rs in Thousand Crore) collected India as on 30th April, 2019. Out of twenty months positive growth having in eleven month and negative growth having nine months compared with previous month collections. This study finally suggested that government of India, ministry of finance, ministry of commerce and various State/UT governments to take necessary reforms in GST registrations, filing of GST return,payment of tax, refund, interest,penalty and various types GST exemptions different type of tax payers. It is finally concluded that the introduction of GST in India has replaced all indirect taxes in one tax and common market for entire nation it wills bring positive energy for entrepreneurs for staring new business ventures in India.

A Case Study of Acquisition of Avon Organics Limited by Arch Pharmalabs Limited

The corporate sector all over the world is restructuring its operations through various types of consolidation strategies in order to face the challenges posed by globalisation and liberalisation, which have led to the greater integration of national and international markets. In order to cope up with the constantly changing environment and increasing competition, constant growth of business organisations has become imperative. The Indian corporate sector has experienced a boom in mergers and acquisition led restructuring strategies especially after liberalisation. Banking and Finance, Drugs and Pharmaceutical, Textiles, Telecommunication, Cement, Computer Software, FMCG etc. are the major sectors in which it has occurred. The present study is an attempt to bring out the effectiveness of such strategies in realizing the desired objectives in the case of Drugs and Pharmaceutical sector, by analysing a case study of acquisition of Avon Organics Limited by Arch Pharmlabs Limited. Ratio analysis has been conducted to measure the overall performance of the acquiring firm. Besides, t-test has been used to check for any statistical significant difference between the means post the acquisition. Overall, it was concluded that the acquisition failed led to create a positive impact on the operating performance, financial performance and shareholders’ wealth of the acquiring entity.

A study of corporate social responsibility practices of the top Bombay Stock Exchange 500 companies in India and their alignment with the Sustainable Development Goals

AbstractThis paper highlights the organic link that exists between the corporate social responsibility (CSR) activities undertaken by the Indian corporate sector and their alignment with the Sustainable Development Goals (SDGs) from 2014–2016; the period after mandatory CSR came into existence as per Indian Companies Act. In this study, we identify critical areas pertaining to SDG goals neglected by corporate sector as far as CSR investments are concerned. We find that more CSR investments must be drawn towards climate change, biodiversity, Sustainable consumption and production, marine life and conserving flora and fauna. The sectoral analysis reveals that the companies falling under sectors that have a higher environmental footprint and impact are more concerned about taking up initiatives through CSR. The geographic analysis revealed that efforts need to be made to increase CSR expenditure in seven north‐eastern states, Jammu and Kashmir, and Union Territories. This paper recommends that the system needs to be further reviewed in light of the current observations.

SOCIAL RESPONSIBILITIES OF CORPORATE SECTOR IN INDIA

SOCIAL RESPONSIBILITIES OF CORPORATE SECTOR IN INDIA

Corporate Attributes Influencing the Compliance of Islamic Finance: Evidence from Listed Companies under Shariah Index in India

The aim of this paper is to provide empirical evidence relating to the factors influencing the compliance of Islamic finance by Indian corporate sector. The sample comprised of the whole population of Shariah companies numbered as 190 consisted in the 500 Shariah and Nifty Shariah indices during the period of 2009 till 2014. However, after making the necessary filtration due to unavailability of data, the actual size of the sample came out to be 136 companies. The relationship between factors and the extent of compliance were analysed using Panel data regression model. The results evident that companies of larger size and higher growth rate have significant mandatory compliance. Whereas, firm size examined with net sales and board independence has withstood with compliance of voluntary and overall measures. The significant implication of our results is that it provided information on firm specific characteristics for the investors who are looking for investment in Shariah compliant companies. In this way investor would be able to keep an eye on their investment. These results may also be advantageous to the regulators in making decisions. Distinct from previous empirical research concerning to Islamic social reporting in Muslim and non-Muslim countries, this study examines the factors affecting the extent of Shariah compliance by the companies listed under Shariah Index in Indian stock exchange.

Removal of cyrus mistry from tata group-A study of legal provisions

The sudden removal of Cyrus Mistry from Tata group, India's largest conglomerate is a classic example of management clash over strategy, leadership style and corporate structure. In 2011, Cyrus Mistry was appointed as the chairman of Tata Group. But in 2012 Mistry alleged that the board altered the company's articles of association to limit the chairman's power. On the other hand, media reports asserts that the group was not satisfied with the performance of Cyrus Mistry. The Tata Sons and Cyrus Mistry conflict that has gone to court has been one of the complexed corporate conflict seen in Indian corporate sector. With the case unfolding every day, we plan to design a case study dealing with The Facts Related to Conflict between the Tata Sons and Cyrus Mistry In Detail & the legal issues involved in it.

Corporate Governance Structures in Transition Economies - Issues and Concerns for India

Corporate Governance (CG) has become an important concern for transition economies like India worldwide economies with increasing dynamism of socio-economic environment. Sound system of governance is essential to the economic development of any nation that essentially requires a well-defined legislation, adoption of ethical standards and efficient market structures. Compared to developed economies, CG system in transition economies including BRICS nations is still an unbalanced one and evolving. The objective of this paper is to examine the present status of CG structure in India on certain selected CG parameters, legal and regulatory framework, and compare with the CG structures in other transition economies (BRICS). We use the sample of top 100 companies listed on National Stock Exchange to evaluate them on selected parameters. We examine the Indian corporate sector for transparency, compliances and ethics using reports of national and international agencies. We find that CG structure is weak, unreliable with concentration of controls and instances of growing corporate frauds with poor monitoring system fuelled by a variety of regulators. We suggest that an effective CG code must be developed to overcome these issues in the best interest of society and economy.

Accrual management and expected stock returns in India

PurposeThe purpose of this paper is to examine whether the stock market in India is efficient in the semi-strong form.Design/methodology/approachThe study uses financial and stock market data of 1,135 listed Indian companies (non-financial) during 2003–2011 collected from Capital IQ to estimate discretionary accruals (DA) using modified Jones model (1995). The study also examines using the widely used Mishkin (1983) test to whether equity market prices accruals in India. The study is conducted for profit/loss-making firms separately as well as for a hedge portfolio of firms based on the lowest to highest accruals.FindingsThe empirical study of DA of 1,135 listed Indian companies (non-financial) during 2003–2011 shows that the estimated average DA of the corporate sector in India comes to 1 percent of the total assets of these firms. An empirical analysis whether equity market prices DA in India finds no evidence of investors/market pricing DA. Empirical evidence also finds that the results are invariant for profit/loss-making firms as well as portfolio of firms based on the lowest to highest accruals in the Indian context. The empirical evidence shows that the Indian equity market is inefficient with regard to the incorporation of accruals in expected returns of stocks.Research limitations/implicationsThis study builds on the previous literature on accrual pricing in the context of the USA and developed markets. The study extends the empirics to the one of the largest emerging market economy – India. This issue is important not only to investors, but also to policy makers and researchers because the mispricing of accruals could potentially lead to misallocation of capital. The study has implications for stock/firm valuations and cost of equity/capital.Originality/valueThis is the first study for the pricing of accruals and test of semi-strong efficiency of the Indian stock market.

Business Distress Prediction Using Bayesian Logistic Model for Indian Firms

The objective of the study is to perform corporate distress prediction for an emerging economy, such as India, where bankruptcy details of firms are not available. Exhaustive panel dataset extracted from Capital IQ has been employed for the purpose. Foremost, the study contributes by devising novel framework to capture incipient signs of distress for Indian firms by employing a combination of firm specific parameters. The strategy not only enables enlarging the sample of distressed firms but also enables to obtain robust results. The analysis applies both standard Logistic and Bayesian modeling to predict distressed firms in Indian corporate sector. Thereby, a comparison of predictive ability of the two approaches has been carried out. Both in-sample and out of sample evaluation reveal a consistently better predictive capability employing Bayesian methodology. The study provides useful structure to indicate the early signals of failure in Indian corporate sector that is otherwise limited in literature.

E-Recruitment Practices in Indian Corporate Sector -Pros and Cons

E-Recruitment Practices in Indian Corporate Sector -Pros and Cons

Are Mergers and Acquisitions Necessarily Anti-competitive? Empirical Evidence from India’s Manufacturing Sector

Policy initiatives and regulatory changes made during the last two-and-half decades of economic reforms have led to a considerable increase in the number of mergers and acquisitions (M&As) in the Indian corporate sector. Given the policy-induced flexibilities, while the domestic firms have taken the route of mergers to restructure their business and grow, the foreign firms have preferred to enter into specific markets through acquisitions and raise monopoly power therein. In this context, the present article attempts to examine the impact of M&As on market the structure in major industries of the Indian manufacturing sector during the post-reform period. Using a panel dataset of 34 major industries for the period 2001–2009, the article finds that M&As do not necessarily cause any appreciable adverse impact on market concentration. Instead, the degrees of sellers’ concentration are influenced by the growth of market, capital intensity, firms’ advertising efforts and their financial performance. The findings of the present article, therefore, suggest for a rethink on policies and regulations relating to M&A, international trade and intellectual property, as they play a significant role in enhancing firms’ competitiveness and restricting the emergence of a monopolistic power. JEL Classification: L1, L4, L5, O3