Topic: Finance

Why Stock Prices Tumble after Bank CEO Turnover

Change in top leadership, specifically in banks, is marked by a shift in strategy and an immediate decline in stock prices. Research into bank CEO turnover provides insights on how career concerns and management incentives lead to distortionary practices. On behalf of ISBInsight, Ujval Nanavati spoke with two authors of the paper ‘Effects of CEO Turnover in Banks’, Krishnamurthy Subramanian …

Read More »

Don’t Just Look at Return, Consider Risk too

To incentivise investors to invest in the second investment, it should offer an expected return greater than 6.40 percent. Last week came the news that yet another investment firm has allegedly defrauded its investors, among them a famous sports personality, to the tune of Rs 4 billion. This investment firm had promised investors returns of 23-25 per cent. What boggles the …

Read More »

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 …

Read More »

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 …

Read More »

Can Mutual Fund Competition Drive Returns?

Based on the research of Gerard Hoberg, Nitin Kumar and Nagpurnanand Prabhala. Though mutual funds are increasingly popular as investment vehicles, the factors that drive their returns are not fully understood. How can investors better understand how well a fund has done relative to its competition? Research by Professors Nitin Kumar, Gerard Hoberg and Nagpurnanand Prabhala answers these questions. The Indian mutual …

Read More »

Follow The TV Analyst’s Stock Recommendations?

Based on the research of V. Ravi Anshuman, Prachi Deuskar, Krishnamurthy V. Subramanian and Ramabhadran S. Thirumalai. Should the novice stock investor follow the advice of television shows that purport to offer expert recommendations on stocks to buy or sell? In tracking stock price movements in the aftermath of TV stock suggestions, Professors Prachi Deuskar, Ravi Anshuman, Krishnamurthy Subramanian and Ram …

Read More »

How Marketing Capabilities Shape Financial Performance

Based on the research of Sridhar N. Ramaswami, Rajendra K. Srivastava, and Mukesh Bhargava ISBInsight Management Briefs is pleased to showcase an important contribution to the field of marketing strategy by Dean Professor Rajendra Srivastava and Visiting Scholar Professor Sridhar Ramaswami. First published in 2009, this research identifies the pathways through which market-facing business processes add value to the firm’s financial …

Read More »

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 …

Read More »

How to Foster Innovation in Government Management Systems

Arguably, innovation is a key determinant of the competitive advantage of nations. Little wonder therefore that governments around the world want to be seen promoting innovation. However, based on my experience, government efforts in this area can be divided into two broad categories: Most of the governmental resources (money and time) are used for promoting innovation by non-government actors, and …

Read More »

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 …

Read More »
Scroll To Top