Private Corporate Sector Research Articles

Efficiency in Wholesale, Retail and Village Markets

The article attempts to examine the marketing efficiency of potato markets in West Bengal’s Hooghly district. The analysis was made at three levels, namely wholesale markets, retail markets and the village market. The analysis using the Johansen and Juselius (1990) cointegration test revealed that the potato markets were integrated and efficient. Turning to the village level, primary data were collected from primary sources in the Arambagh block of Hooghly for the period of July 2000–December 2001. The study simultaneously covered two regions—the cold storage concentration zone and the non-concentration zone. We conclude that ‘efficiency’, as revealed by integration of wholesale and retail markets, cannot coexist with a complex and non-competitive market structure at the village level. This means that the village findings support the inefficiency of potato marketing. There is a need to intervene the private corporate sectors in the potato market to enhance the efficiency at the village level.

What Shapes Global Diffusion of e-Government

Prior research has established the existence of a differential between industrialized and other countries for e-Government diffusion. It attempts to explain this divide by identifying economic and technical variables. At the same time, the role of national governance institutions in e-Government diffusion has been relatively under-theorized and under-studied. The authors posit that, the existing national governance institutions shape the diffusion and assimilation of e-Government in any country via associated institutions in three key sectors: government, private sector and non-governmental organizations. This paper develops and tests a preliminary model of e-Government diffusion using the governance institutional climate as represented via democratic practices, transparency of private sector corporate governance, corruption perception, and the free press. The results indicate that the level of development of national governance institutions can explain the level of e-Government diffusion over and above economic and technical variables. The authors’ research contributes to the literature by providing initial evidence that the existing national governance institutions influence and shape e-Gov diffusion and assimilation beyond the adoption stage.

Does domestic saving cause economic growth? A time-series evidence from India

This study examines the long-run effects of domestic saving on income and tests the null of non-causality between saving and growth in India. The optimal single-equation and the maximum-likelihood system estimates of the model consistently support the predictions of the neoclassical exogenous and the post-neoclassical endogenous models of economic growth, and suggest the significant long-run effects of saving on income. The innovation accounting shows the bidirectional causality between saving and growth. The stylized evidence for the steady-state effects of saving on income suggests the need to accelerate domestic saving to finance capital accumulation and foster higher income and growth. Most of the saving comes from the surplus household sector, and the deficit private corporate and public sectors draw on household saving to meet their investment requirements and finance the resource gaps. A two-pronged approach with the incentive-based measures to induce the motivation to save and the productivity-based measures to increase income and strengthen the capacity to save, would be useful to generate higher saving and reinforce the acceleration of income and growth.

Public–Private Partnerships are no silver bullet: An expanded governance model for Critical Infrastructure Protection

For more than a decade, efforts have been underway to establish Public–Private Partnerships (PPP) for Critical Infrastructure Protection (CIP). Due to issues arising in connection with their implementation, there has been increasing criticism in recent years questioning the usefulness of such PPP. However, cooperation between the state and the private corporate sector in CIP is not only useful, but inevitable. This paper will therefore sketch a new and above all broader approach to public–private cooperation to help solve some of the problems that have become apparent. Based on the network approach developed by governance theory, it is argued that CIP policy should increasingly rest on self-regulating and self-organizing networks. Thus, the government’s role would no longer consist in directing and monitoring, but of coordinating the networks and identifying instruments that can help motivate networks to meet the task of CIP.

The Ownership and Industry Effects of Corporate Dividend Policy in India, 1961-2007

The cross-sectional trends in dividends are investigated at an aggregate level of ownership (i.e. closely/largely held and regulated firms), and at disaggregate level across 20 industries to examine how Indian Private Corporate Sector appropriated its profits over 1961-2007 periods. Alternatively it is examined whether internal funds are a significant source of finance and the dynamics of relation between dividends relative to earnings across type of companies and industries. Indian corporate sector pays relatively more equity dividends than preference dividends. Other things being equal, the probability of paying cash dividends decreases with share holder concentration and the regulated companies pay relatively larger dividends. Dividend payouts for all type of firms decline, and such tendency is more pronounced after liberalization periods indicating a greater choice of internal financing through retained earnings. The analysis of inter-corporate and inter-industry variations reveals that dividends interplays differently with exogenous factors.

Boardization and Corporate Governance in the UK as a Response to Depoliticization and Failing Accountability

Administrative leadership in UK central government has been reformed through the creation of boards in all departments and agencies. This `boardization' is modelled on principles of private sector corporate governance and is a civil service designed response to the administrative implications of depoliticization. It raises issues of political accountability and adaptation of private sector models to the public sector and therefore poses a challenge to the UK Whitehall model. Boardization has been variously implemented across accounting units of central government involving the negotiation of a variety of public sector bargains. It highlights a de-synchronization of administrative and political reforms but provides a potential for boards to become alternative locations for governance and accountability. The article registers concerns about the suitability of reform based on private sector corporate governance and identifies new research agendas.

Private sector influence in the International Telecommunication Union

PurposeThis paper aims to examine the influence of private corporations in the tripartite structure of the International Telecommunications Union (ITU): Telecommunications Standardization, Radiocommunication, and Telecommunications Development.Design/methodology/approachThis research employs institutional ethnography in conjunction with the case study.FindingsThe paper finds that, in the standardization sector, power has been effectively transferred from nation states to the private corporate sector since the approval process now enables standards to be approved by members of the study group that developed them, which is essentially the private sector. In the radiocommunication sector, the private sector continues to conduct much of the requisite technical work, but national governments are ultimately the decision makers and, further, it is difficult to distinguish between treaty and non‐treaty work. In the development sector, the ITU seeks to create an enabling environment for private investment in developing countries and actively seeks to build private sector partnerships. In the long run the ITU may be unable to satisfy either its narrow corporate constituency or the vast majority of its developing country members.Originality/valueAs the United Nations agency which coordinates satellite spacing and allocates access to the electromagnetic spectrum on an international basis, the ITU is the world's most prominent international telecommunications institution, so its structural modifications and membership changes are of great significance in a world increasingly dependent on a global grid of wired and wireless telecommunications networks. This paper sheds light on these.

Performance Measurement in Social Sectors

Large public sectors in countries like India need to be efficient; one of the tools to achieve this end is performance measurement. Performance indicators have been in use in the private corporate sector for a long time, and the idea of its adoption in the public sector is also not new. By now, there are several instances of practical application in the public sector, with varying degrees of success. This paper, after briefly discussing the rationale and practical issues relating to use of performance indicators in general and for social sector interventions in particular, illustrates its possible use by the state governments in India with the case of two departments of the Government of Chhattisgarh—health and school education. It discusses the administrative setup of the selected departments and desirable revamp of the setup along with the budgetary system, and discusses the preconditions of useful application of performance indicators. The paper then lists out some output and outcome indicators that can be used to begin with in the two departments of the state government. Possibilities for future refinements with better availability of data than now available are also indicated.

Converging Corporatization? Police Management, Police Unionism, and the Transfer of Business Principles

There has been a convergence of private and public policing corporate sectors into a ‘police industry.’ In part, this process has involved the successful reshaping of public police management into a corporate executive, such that the private and public security sectors converge in various ways. Ironically the success of the transfer of business principles to the public police has revitalized police unions, giving rise to an assumption that in the face of their opposition, the transfer of business principles will stall and eventually fail. By contrast, we identify the existence of unionized and non‐unionized sectors of policing as a normal feature of modernist industry. By doing so, it appears that in the current environment of labour relations—ironically—this formation may itself contribute to a new wave of business‐oriented reforms affecting police associations themselves.

India's Growth from China's Perspective

Bilateral India-China ties, including trade and investment, are increasing rapidly to the benefit of both countries. Looking at India's impressive economic performance of the last 10 years from the perspective of China's experience suggests that sustaining high growth will require a significant further opening of its economy—both externally and internally—a higher national investment rate and stronger labour absorption in the modern sectors. The base of India's current economic growth model—IT-related services and high-end manufacturing—is too narrow. India's poor performance in agriculture is the most important source of massive rural poverty in many parts of the country. Its greatest source of economic strength, a dynamic and relatively highly developed private corporate sector—an area where China lags—can be leveraged more effectively for national development. A partial convergence of the Indian and Chinese growth models is indicated and appears likely. The notion that India-China relations are, or are bound to become, fundamentally antagonistic—held by many in the United States—is mistaken and potentially dangerous.

Sustainability of rice production: a Malaysian perspective

As Asian rice demand is projected to increase by 30% in 2010, a sustainable approach of rice production has become important. In order to fulfill the rice demand for the growing population and with the target rice self-sufficiency of 65%, Malaysia has to increase its rice productivity. As the attainment of sustainability in rice farming is country and area specific, Malaysia has devised its own ways to achieve this goal within a prescribed time frame. The major problems faced by the rice sector have been identified and step-by-step solutions are sought through policy changes. Rice estates in Malaysia have already proven that commercial rice production is viable, economical and sustainable. FELCRA Seberang Perak, the first and largest rice estate in Malaysia, has proven the sustainability and viability of commercial rice farming by achieving a continuous cropping intensity of 200%. The keywords to sustainable rice production are doubling yields, estatization and private corporate sector investments. The strategies to be devised must include getting investments to make the present non-lucrative business a profitable venture, whilst balancing the country’s social obligation.

The Effect of Corporate Status on External Audit Fees: Evidence From the UK

Abstract: This paper simultaneously examines, for the first time, the determinants of external audit fees of UK companies drawn from the quoted sector (Main Market, the Alternative Investment Market and Ofex), and the unquoted sector (public and private limited companies). The paper also provides new evidence on the effects of corporate failure and the persistence of the big four and mid‐tier auditor premiums across the public and private corporate sectors. After controlling for firm size, audit risk and complexity, we find that quoted and unquoted public limited companies have significantly higher audit fees than their private limited counterparts. Our estimates imply that relative premiums for market/corporate form are as follows: Main Market over AIM, 6.8%; AIM over Ofex, 19.5%; Ofex over unquoted plc, 15.5%; and unquoted plc over private, 16.7%. However, despite indications in prior US research to the contrary, we find no evidence that insolvent firms that failed were charged higher audit fees in the year preceding failure. A positive relationship is also found between audit and consultancy fees – a result that persists using an instrumental variables approach to control for endogeneity.

Determinants of Capital Structure: An Empirical Analysis of Indian Private Corporate Sector

The objective of this paper is to examine the capital structure of the Indian firms. The investigation has been performed using panel data procedure for a sample of 504 Indian companies listed on any Stock Exchange of India during 1994–95 2003–04. The hypothesis that is tested in this paper is that the debt ratio at time t depends upon the asset structure at time t, the size at time t, the return on assets at time t, and the debt ratio at time t-1. I have used multivariate regression analysis to find out the significant factors for determinant of capital structure. The empirical results justify our hypothesis that the debt ratio of the Indian companies is positively related to its asset structure and its growth rate, and negatively related to its profitability, business risk and non-debt tax shield. Thus, I conclude that firms that maintain a large proportion of fixed assets tend to maintain a higher debt ratio than smaller firms. Furthermore, larger firms employ more debt capital in comparison with smaller firms and firms with high profitability ratios tend to use less debt than firms that do not generate high profits. My findings also suggest that firms do follow a target capital structure during the examined period. These results are consistent with the theoretical background presented in the second section of the paper.

Resurrection of Rural Credit

If the rural credit institutions find themselves in a moribund state today, this is largely attributable to the financial sector reforms introduced in the 1990s, as part of the process of liberalization and globalization of the Indian economy. In the milieu of the new banking culture fostered by reforms, lending to agriculture or priority sectors generally became unfashionable. The relative magnitude of the flow of credit to agriculture shrank and the interest rate regime which was designed to pamper the private corporate sector openly discriminated against agriculture. Even public sector banks (PSBs) merrily defaulted on the credit targets of 18 per cent of net bank credit to agriculture and 40 per cent of net bank credit to priority sectors. The Reserve Bank of India (RBI), which was obsessed with implementing the Basel norms as the main thrust of banking reforms, winked at the defaults. While the priority sector target has been attained during the last couple of years, the target for agriculture continues to remain unattained: lending to agriculture is around 15 per cent today, as compared to the target of 18 per cent of net bank credit. While highly rated corporate entities could raise money from banks or PSBs at interest rates as low as 6 or 7 per cent, the small farmer was required to pay a rate of 12 per cent. It was left to the Government of India to reduce the lending rate to small farmer to 8 per cent only in August 2003. RBI's neglect of agriculture and the rural sector generally was total during the 1990’s: it failed to arrest the deterioration of the health of all institutions involved in rural credit: PSBs, Cooperative credit institutions and Regional Rural Banks (RRBs) - all of these institutions showed high Non-performing Assets (NPAs).

Management & Development of Happiness - A Priority in Socio-Economic Development

If bigger objects go into a jar, then there will be space to fill it with smaller objects in sequence. If the order of the objects are reversed, then it ends in filling it at the starting point. Happiness in life is similar to this. Fill high priority needs in the life, and smaller needs can be subsequent, for progressive happiness. Money cannot bring happiness, and it can induct problems as well. GDP, a vague relation builder is used as an index to measure the progress and happiness. Governments and Private corporate sectors in developed nations have attempted to induct happiness to their employees, through earning improvement, lower working hours etc.... But, these did not increase happiness. Priority needs change over a period of time, and people compare themselves with others. It is because, the Tangible wealth generation is dribbled by Intangible feelings, to disturb the Happiness. These are Aggregate and Complex. Intangible aspects are Psychological, Social, Local, International and Universal in nature. Author's Research and Development approach for these vicious combination infers that, all nations, irrespective their level of development, should evaluate Productivity/Management Decisions with reference to Socio-Economic Development units, and Intangible components should have priority over Tangibles (Algebraic Model). Domestic investments should be from Domestic Savings. Domestic Technology should be manned by Domestic Manpower. These could lead people towards more satisfaction and happiness (Geometric Model).

Public sector ethics in Sweden: a 4P‐model of internal and external determinants in codes of ethics

This article summarizes and aggregates the results of a study conducted of the largest 100 public sector organizations derived from three categories in Sweden. These categories of organizations comprise 40 entities of government, 40 municipalities, and 20 county councils. The objective was to describe the determinants of codes of ethics in Swedish public sector organizations. This research reports on the responses of 27 organizations that possessed a code of ethics. The principal contribution is a 4P‐model of seven internal and external determinants in public sector codes of ethics. The identified determinants relate to four principal sectors of a society, namely: public community sector, private corporate sector, private citizen sector, and political/policy conduct sector.

Development and Validation of a 360-degree-feedback Instrument for Healthcare Administrators

Multisource or 360-degree feedback has become a widely used component of leadership development in many organizations, and a growing body of research supports its use for this purpose. Unfortunately, most commercially available multisource surveys were developed in private-sector corporate settings, making their transferability to healthcare settings less than straightforward. This article describes a research project undertaken to develop a job-relevant, commercial-quality multisource feedback survey for use in health administration settings. Using critical incident methodology and enlisting the help of subject matter expert groups (i.e., executive search consultants, human resources executives, leadership development consultants, and administrative fellowship supervisors), a competency framework was developed containing 26 competencies arranged according to seven clusters. A third survey was then conducted with incumbent leaders to populate the competency framework with behavioral descriptors. The end result was a survey consisting of 128 total items that, when matrixed across four relationship types, create surveys ranging from 36 to 95 items in length. Two pilot studies were then conducted to assess reliability as well as validity against other measures of leadership ability. Results from these studies suggest that the instrument can provide reliable and valid assessments of leadership effectiveness for development purposes.

Running business like a government in the new economy: lessons for organizational design and corporate governance

Principal‐agent problems are largely responsible for poor corporate governance. Much work on private sector corporate governance reform seeks to address transparency, accountability and responsiveness to stakeholder interests under the new category of corporate social responsibility (CSR). Yet, these issues are not new. The public sector has been working on these issues for many years – especially in looking at ways of reducing malfeasance and also optimizing use of resources for the benefit of principals. Some lessons from public sector reform include promoting information dissemination, participation, and balancing powers between a corporation’s executive and supervisory entities. While firms should not necessarily be administered like governmental bodies, there are many lessons from public sector organizational reform and institutional governance that may be applicable to large‐scale public corporations.

Bank regulation and supervision: what works best?

This paper uses our new database on bank regulation and supervision in 107 countries to assess the relationship between specific regulatory and supervisory practices and banking-sector development, efficiency, and fragility. The paper examines: (i) regulatory restrictions on bank activities and the mixing of banking and commerce; (ii) regulations on domestic and foreign bank entry; (iii) regulations on capital adequacy; (iv) deposit insurance system design features; (v) supervisory power, independence, and resources; (vi) loan classification stringency, provisioning standards, and diversification guidelines; (vii) regulations fostering information disclosure and private-sector monitoring of banks; and (viii) government ownership. The results, albeit tentative, raise a cautionary flag regarding government policies that rely excessively on direct government supervision and regulation of bank activities. The findings instead suggest that policies that rely on guidelines that (1) force accurate information disclosure, (2) empower private-sector corporate control of banks, and (3) foster incentives for private agents to exert corporate control work best to promote bank development, performance and stability.

Role of the Private Corporate Sector in India for Strengthening Regional Cooperation in South Asia

Role of the Private Corporate Sector in India for Strengthening Regional Cooperation in South Asia