SDMIMD Journal of Management

Assessing the Role of Capital Structure and Promoters’ Holding on Performance

Samadrita Ghosh — 2024-11-05

Understanding the role of capital structure and ownership structure on performance has raised interest among researchers in corporate finance. The present examination delves into identifying the effect of capital structure and Indian promoters’ holding on performance based on a sample of selected large-cap firms in India. This study considers a period from 2015 to 2022 covering companies listed in the BSE-Sensex. The research uses accounting-based performance as the performance parameter and share of long-term debt for capital structure. Indian promoters’ holding is considered a proxy for ownership structure. The results demonstrate that though there exists a significantly negative effect of debt on performance, promoters’ holding has an insignificant effect on return on assets. The study implies that firms should be careful about resorting to long-term debt and thereby call on managers to control debt levels. The absence of a noticeable effect of Indian promoters’ ownership shifts the focus on foreign and institutional ownership.

Assessment of Relationship between HR Practices and Employee Empowerment Among Differently-Abled Employees in Services Sector in Coimbatore District

N. Jayagowri — 2024-11-05

India has made significant strides in recognizing and addressing the rights and needs of differently-abled individuals. The Rights of Persons with Disabilities Act, of 2016 replaced the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, of 1995, broadening the scope and coverage. However, there exists a social stigma about the capabilities of the differently abled employees, while, on the other hand, such employees face several challenges in terms of infrastructure and accessibility, limited skill development opportunities and less employer awareness towards suitable work environments for differently-abled employees. Based on this premise, there arises a need to study how empowered are the differently abled employees working in various sectors. In any organization, HR practices determine the effectiveness of people management. An analysis of the HR Practices that actively engage differently-abled employees may be looked at as an indicator to understand the empowerment status of such employees. The objective of this article is to explore the association between HR Practices and Employee empowerment among the differently abled employees working in the services sector in Coimbatore, Tamil Nadu. To assess the relationship between these two criteria; the “canonical correlation” tool is applied. The result illustrates the correlation between HR practices and Employee Empowerment. There exists a strongly significant correlation between HR Practices and Employee Empowerment. The derived result portrays the direct relationship between HR Practices and the Empowerment of differently abled employees, with the Grievance Redressal Mechanism as a key indicator. Therefore, it may be vividly expressed that every organization must tailor its HR Practices to make the differently abled employees feel more empowered. It may be comprehensively stated that the stakeholders ought to collaborate and build a positive environment to create a more inclusive and equitable future for all, to achieve organizational success. The study has suggested significant measures like compatible software, mental wellness, skill-specific Training and exclusive PwD cells that could be implemented in the organizations for the increased performance and empowerment of differently-abled employees.

A Study on the Factors Influencing Consumer Buying Behaviour towards Electric Vehicles among University Students in Anand City

Nilamben Johnbhai Parmar — 2024-11-05

This study aims to investigate the different factors influencing consumer buying behaviour towards Electric Vehicles (EVs). The research was mainly based on primary data and selected populations as university students of Anand, Gujarat and also used secondary data sources to collect information regarding EVs. This study bridges the research gap and selects 225 respondents to the convenience sampling method. Frequency distribution, percentage, mean, standard deviation and various statistical methods such as the reliability test, KMO and Bartlett’s test, factor analysis, and non-parametric test were carried out. The result extracted six influencing factors for consumer buying behaviour towards EVs such as high maintenance, reliability, EV features, inflation, environment, and cost-benefit. The use of EVs by the majority of respondents confirms that there is a potential for future expansion. The present study helps customers/consumers know about purchasing EVs benefits and the EVs industry. It is believed that the findings make an important contribution to EV industries, policymakers, future researchers, and those who want to purchase EVs.

Factors Influencing GST Return Filing: A Study Based on Theory of Planned Behaviour among Entrepreneurs in Kerala

Swathy Krishna — 2024-11-05

The study used the Theory of Planned Behaviour (TPB) to examine the GST return filing intention of entrepreneurs across Kerala. The extended TPB model examines the impact of attitude toward GST filing, subjective norms, perceived behavioural control, and moral obligation on compliance intention with respect to the filing of GST returns. The analysis was performed using the information gathered from 205 entrepreneurs residing in Kerala. The interconnection among the variables was examined using PLS-SEM. The results indicate that an entrepreneur’s attitude and subjective norms could enhance the certainty of GST compliance decisions, meanwhile, perceived behavioural control does not have any relevant impact on an entrepreneur’s intention to file GST returns on time. The study further delves into the least explored area by focusing on the role of moral obligation in influencing the timely filing of GST returns. The study provides evidence that tax compliance intention is positively associated with the level of moral values possessed by entrepreneurs.

Global Trends in the Job Performance: A Bibliometric Analysis

Pooja Kohli — 2024-11-05

The study aims to provide a clear picture of the current dynamics and research heterogeneity in the field of Job Performance (JP). Using bibliometric analysis, this study offers a critical examination of job performance in the literature. The objective of the study is to identify the most prominent JP trends in research papers based on publication dates, prolific authors, journals, citations, keywords, and affiliated nations, as well as to analyse the network of keyword occurrences and co-authorship within nations. This review was conducted using the Scopus database and is based on 1,600 research articles published between 2012 and 2022. The significance of the research is assessed by examining the top nations, institutions, authors, and the most frequently cited papers by year. Using the bibliographic coupling feature of VOS viewer software, analysed keyword occurrences, co-authorship networks, and international co-authorship networks. Major findings indicate that 2022 had the highest number of published articles on JP. The most cited paper is “The Impacts of Perceived Organisational Support and Psychological Empowerment on Job Performance: The Mediating Effects of Organisational Citizenship Behaviour.” The author, Bakker, A.B., from Erasmus University Rotterdam, is the most frequently cited in JP research, and the university is also the most productive in this area. The Journal of Applied Ergonomics, an Elsevier publication, has published the most articles on JP. This research will serve as a valuable guide for academics interested in JP, helping them identify which antecedents of JP have been less explored and where future opportunities may lie.

Impact of Agricultural Credit by Commercial Banks on Agricultural GDP

S. Asha — 2024-11-05

The farming sector in India has always been an essential and significant part of the country’s economy. Agriculture has long been a significant employer of over 43% of the workforce and a large contributor to the nation’s Gross Domestic Product (GDP), (14.39%) but it has also experienced difficulties including exploitation and uneven regulations. Despite these challenges, agriculture remains essential for the country’s development, especially as it shifts towards a more business-oriented approach that requires access to capital. When looking at what factors influence agricultural productivity growth in India, attention to credit, inputs and policies can be signalled. Credit has been a crucial component in supporting agriculture for centuries and its importance has only increased as financial institutions have taken over from traditional non-institutional players such as moneylenders, friends and relatives. A significant factor in agriculture’s expansion, especially in spurring the Green Revolution, has been institutional financing. Institutional lending to the agricultural industry and allied fields has grown significantly over time. Based on regression analysis, this study examines the relationship between direct institutional credit and agriculture and allied services GDP by analysing data covering 19 years (1992-2011) using a Multi Linear Regression model to find determinants of agricultural development. The research has found that a strong correlation exists between credit and agricultural output along with other inputs like seeds, fertilisers, pesticides, tractors, power tillers and electricity. This has been reinforced by government interventions such as offering subsidies, providing extension services and developing infrastructure. Nonetheless, a nagging problem of climate change markets is out of control and gaps in the execution of policies continue to cross the horizons. For India to manage these changes, it will be necessary for the country to shift and take positive measures that will ensure sustainable agricultural growth in rural communities.

Promoter Ownership and Leverage: An Empirical Evidence of Agency Problem in Select FMCG Companies

Pinky Mistri — 2024-11-05

The study examines the association between promoter ownership and leverage of Fast Moving Consumer Goods (FMCG) companies listed at BSE in the ‘A’ category. The FMCG Industry is a vital sector for the Indian economy. Leverage decision is a critical financial decision. In the year, 2020 the revenue of the FMCG market was USD 110 billion. The study tries to investigate the impact of promoter shareholding on the leverage decision of Indian FMCG companies. The study is conducted on a sample of 46 companies and the study period ranges from 2017-2022 for 5 years. The study conducted A panel data model is opted for data analysis. The study also conducted a diagnostic test to further check the reliability of the data. The study indicated a significant positive association between ownership structure and leverage. Due to the existence of agency problems, the leverage decisions deviate from neoclassical models. The study’s finding adds to the extant literature on promoter ownership. The positive relationship indicated the existence of an agency problem. Firm executives should try to reduce Agency problems to enhance firm performance.

The CAPM: Exploring its Empirical Evidence on NSE Nifty-From the Period 2008 to 2023

Peeyush Bangur — 2024-11-05

The issue of forecasting or predicting asset returns is fundamental to financial economics and most often the Capital Asset Pricing Model (CAPM) is adopted for estimating the expected rate of return based on systematic risk. This paper focuses on the empirical testing of the CAPM in the Indian market based on the Nifty 50 index from April 2008 to March 2023, which covers the period of the COVID-19 pandemic, the Goods and Services Tax (GST) reforms and demonetisation. In the context of this study, Lintner, Miller and Scholes, Black, Jensen and Scholes tests are used with a new dataset to examine the CAPM. This study examines the empirical validity of the CAPM in the context of the Indian market, more specifically the Nifty 50 index, during a period of significant economic change. Thus, the analysis is centred around the interaction of systematic risk, residual variance and average returns. The study identifies a positive but non-significant relationship between average returns with systematic risk and a slightly higher risk-free return compared to that of Lintner. The variance of residuals also helps to explain average returns, while at the same time, actual returns are higher than market returns. The findings of the current study partially support Lintner, Miller and Scholes’ earlier work while not supporting Black, Jensen and Scholes’(BJS) conclusions. In the context of the BJS methodology, 38 per cent of the securities have significant non-zero alphas, which means CAPM does not operate perfectly in the Indian market. The findings that alphas are non-zero indicate the inefficiency of the National Stock Exchange (Nifty 50), therefore, the need for regulation by agencies such as the Securities and Exchange Board of India (SEBI) arises. Equity analysts and portfolio managers must not only use CAPM for asset valuation blindly without appreciating its empirical flaws. This paper revisits the CAPM with recent data thus enriching the limited literature on the CAPM in the Indian scenario where CAPM has however a very restricted application in explaining asset returns in the context of the Nifty 50.

Unravelling the Dynamics of Macroeconomic Variables and Infant Mortality in India Based on ARDL Model Analysis

Fasalurahman P. K. Patterkadavan — 2024-11-05

The well-being of mothers and children serves as a vital indicator of a nation’s prosperity and is influenced by a range of factors, including macroeconomic variables such as Gross Domestic Product (GDP), unemployment, inflation, income, education, and healthcare expenditure. Escalating inflation precipitates higher food prices, amplifies household living costs, and diminishes purchasing power, consequently exerting a substantial impact on individuals’ nutritional and physical health. This study aims to examine the correlation between macroeconomic variables, specifically GDP per capita, Consumer Price Index (CPI), unemployment, and infant mortality in the Indian context. Despite the significance of this relationship, there exists a dearth of research on the association between macroeconomic variables and maternal and child mortality, particularly within the Indian context. Prior studies consistently underscore the indispensability of macroeconomic stability in achieving improved outcomes in maternal and child health. The analysis draws upon secondary data procured from reputable sources such as the World Bank and Reserve Bank of India (RBI), encompassing time series data about both the dependent variable, namely the infant mortality rate, and the explanatory variables. To investigate the impact of macroeconomic variables on infant mortality, the study employs the Autoregressive Distributed Lag (ARDL) Error Correction Model, which accounts for the interplay between the variables over time. Empirical findings establish the existence of long-term cointegration between macroeconomic variables and the infant mortality rate. However, in the short run, some variability in cointegration arises due to a multitude of factors, including policy interventions, demographic characteristics, and socio-cultural determinants. This study substantiates the proposition that sustaining macroeconomic stability and fostering economic growth play pivotal roles in attaining health sector objectives, particularly in emerging economies like India. Consequently, while formulating health policies, equal emphasis must be placed on measures aimed at stabilizing the economy to ensure favourable outcomes of such policies.

What Drives Rural Women Entrepreneurs Towards Adoption of Mobile Applications in Business?

C. P. Mary Treasa — 2024-11-05

The escalation of mobile technology has transformed the entrepreneurial landscape, particularly in rural and underserved communities. Greater access to business applications on mobile devices has enhanced their operational efficiency, improved customer engagement, and strengthened their competitive edge. This research paper delves into the experiences of adoption intention of mobile applications among women rural entrepreneurs registered with Jan Shikshan Sansthan, Palakkad district, in 2022-2023 by applying purposive sampling. The study draws on qualitative insights from in-depth interviews and analyzes the data using the UTAUT Model with Smart PLS. The study confirmed that the effect of performance and effort expectancy on rural women entrepreneurs’ willingness to adopt mobile apps for business operations was significant. On the contrary, social influence and facilitating conditions have a negative impact, indicating the focus on reducing technophobia among rural entrepreneurs with digital infrastructure and a continuous support system. The study proffers valuable insights to policymakers and app developers to promote adoption. Furthermore, this study aligns with the Digital India Initiative and Sustainable Development Goal 8, as it drives forward the digital transformation of small and medium enterprises.

Breaking the Mould- Reimagining India’s Economic Future

Girish Gopalarao — 2024-11-05

No Abstract.

Editorial

B. Venkatraja — 2024-11-05

No Abstract.