Management Briefs : Research Bytes

Do Poor Quality Financial Disclosures Raise Cost Of Capital?

How does the quality of financial disclosures affect the cost of capital for corporate investments? The commonly held belief has been that poor quality disclosures raise capital cost. Professor Sunil Dutta’s research suggests a more nuanced relationship. Poor disclosure quality makes capital more expensive for low growth firms, but may make it cheaper for high growth firms. Professor Sunil Dutta is …

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What Really Decides the Pay of Division Managers

Do you manage one division of a large multi-division organisation? The surprising factors that determine your pay lie not only within your own division, but also in the performance of other divisions. Professor Shashwat Alok explains the results of a research study that carefully compiled data on division manager (DM) pay contracts. Shashwat Alok is Assistant Professor of Finance at the …

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How To Prevent Your Inventor From Exiting The Firm

Will the inventor leave the firm? Professor Daniel Tzabbar argues that an inventor’s position within a firm’s social and knowledge networks affects the likelihood of an exit. Inventors who are integrated into the company’s social network may move to a new employer but are less likely to join or form a spinout. And those patent holders on whom others depend …

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How Language Of Instruction Influences Education Outcomes

In a multi-lingual country with large deficits in education, how does the language of instruction influence learning? Drawing on lessons from the British era, Professor Tarun Jain finds that the language-based reorganization of states helped improved literacy outcomes. In recent decades, mother tongue instruction boosted literacy rates by as much as 18%. Tarun Jain is Assistant Professor in the Economics and …

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Access versus Innovation in Global Healthcare Markets

Access to affordable medicines and healthcare today comes with a dynamic trade-off in terms of potential disincentives for innovation tomorrow. Using theory and techniques from applied microeconomics, Professor Chirantan Chatterjee examines these trade-offs and their welfare implications in research set in United States and Indian healthcare and pharmaceutical markets. Chirantan Chatterjee is Assistant Professor in the Economics and Public Policy area …

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Offline choice, online sale: Consumer pseudo-showrooming

Brick and mortar stores face the issue of consumer showrooming i.e., consumers inspect a product at a physical store, but buy it from a different seller online. Combining online and offline sales channels can encourage consumer pseudo-showrooming, i.e., consumers can check out some products offline, but buy the same or a related product from the same seller͛s online store, argue …

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Beyond Product and Business: Thinking Industry Lifecycles

When should businesses invest more? Professor Rajiv Banker argues that industries like oil and gas, petrochemicals, shipping, airlines and hotels, companies need to think beyond the notions of business cycles or product lifecycles to the concept of the 'industry lifecycle' in order to optimize their growth trajectories. Professor Rajiv D Banker is Merves Chair and Director of the Centre for Accounting …

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Refurbishing of Defective Product Returns

In order to gain a competitive edge, companies sometimes introduce new products hastily, resulting in increased incidence of defective products and consumer returns. Professor Narendra Singh’s research shows that more defective product returns are not necessarily a bad thing for a company if the company refurbishes these returns. Narendra Singh is Adjunct Assistant Professor in Operations Management at ISB.

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Split-award auctions

Splitting up a contract award across multiple vendors (sources) offers the benefits of diversification. Professor Aadhaar Chaturvedi explains his recent theoretical and experimental work, which shows that under the right conditions, such multi-sourcing through an auction may also help reduce expected costs. Aadhaar Chaturvedi Visiting Professor, ISB and Assistant Professor at the Department of Business Administration at the University of Namur.

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Does deregulation lead to banking sector instability?

After the financial crisis of 2008, governments worldwide are re-assessing their approach to bank regulation. Professors Subramanian and Vaidya Nathan examine how dismantling of regulations affects banking sector stability. Deregulation of entry in a bubble can lead to banking sector instability, but when accompanied by better screening for lending and general financial health of firms, it may also lead to …

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