It is my pleasure to present Volume 31, Issue 3, September 2019, of the journal. This issue carries its regular complement of research articles, covering finance, economics, and organisation behaviour and human resource management. The issue also carries a book review. The eleventh edition of the IMR Doctoral Conference (IMRDC) is scheduled on December 27th and 28th, 2019, and we carry a notification for delegate participation.
Central bank announcements have a ubiquitous effect on the economy, affecting all economic participants. The paper, “Central bank target rates and term structure of interest rates: A study of six Asia-Pacific countries”, by Anoop Rai, Rama Seth and Nancy A. White, examines the effects of official interest rate (OIR) changes by central banks on the domestic interest rates of Australia, China, India, South Korea, Philippines and Taiwan and the impact on interest rates in the other countries.
In the paper, “Which is the right option for Indian market: Gaussian, normal inverse Gaussian or Tsallis?”, Prasenjit Chakrabarti and Kousik Guhathakurata use three different statistical distributions namely, geometric Brownian motion (GBM), normal inverse Gaussian (NIG) distribution, and the Tsallis (q-Gaussian) distribution to find out which distribution best estimates stock option prices. Their research suggests that the Tsallis distribution performs better than the Gaussian models for pricing options.
In the paper, “High bids and low recovery: A possible case for non-performing loan auctions in India”, Ashish Pandey examines the design of the auction of non-performing loans (NPL) by banks in India under the security receipts mechanism. The paper finds that the payoff structure of the NPL auctions leads to high bids by the asset reconstruction companies (ARCs) and recovery which is lower than the bid values, suggesting that the NPL auctions under the security receipts mechanism should not be used to establish fair value of the NPLs.
In “Investor reaction to extreme price shocks in stock markets: A cross country examination”, Vaibhav Lalwani, Udayan Sharma and Madhumita Chakraborty investigate the presence of over- or under-reaction using intra-day data from top 10 stock markets in the world as per market capitalisation, namely, USA, UK, Japan, China, Hong Kong, Canada, Germany, India, Switzerland and Australia. The study finds over-reaction to negative events and none or under-reaction to positive events in most markets confirming the earlier findings on behavioural biases in investor reactions to events.
Innovation is widely regarded as an important driver of economic growth. The paper, “Innovation and economic growth in European Economic Area countries: The Granger causality approach”, by Rudra P Pradhan, Rana Pratap Maradana, Saurav Dash, Danish B Zaki, Kunal Gaurav, Manju Jayakumar, and Ajoy K Sarangi examines the relationship between innovation and per capita economic growth using a sample of 19 European Economic Area countries over the period 1989 to 2014.
The paper, “Impact of liberalisation on Indian life insurance industry: A truly multivariate approach”, by J D Chandrapal examines the impact of liberalisation on the Indian life insurance industry in terms of efficiency characterised by marketing product mix, service quality and insurance awareness.
The question of what triggers employees to perform beyond their job description and the drive of their regular payroll has been of interest to organisational researchers. In the paper, “Am I empowered through meaningful work? The moderating role of perceived flexibility in connecting meaningful work and psychological empowerment”, Lalatendu Kesari Jena, Pratishtha Bhattacharyya and Sajeet Pradhan aim to approach the role of flexibility in employment relationship through two propositions: 1) Meaningful work positively affects psychological empowerment, and 2) Perceived flexibility moderates the relationship between meaningful work and psychological empowerment. The results reveal the existence of a non-significant relationship between meaningful work and psychological empowerment, and a significant moderating role of perceived flexibility in the association between meaningful work and psychological empowerment. The findings have implications for organisations and their HR policies.
In “Classification for regulated industries: A new index”, Kshitij Awasthi, Sai Yayavaram, Rejie George and Trilochan Sastry provide a current, systematic and comprehensive classification index of regulated industries by drawing on various parameters of regulation and map the industry description to the National Industrial Classification, the Indian equivalent of the internationally used Standard Industrial Classification. Further, they demonstrate the utility of the index by providing preliminary evidence on how political connectedness and industry structure differ between regulated industries and non-regulated industries. The index could be useful for research scholars, business managers, and policy makers alike, and could be used in economies other than India as well.
This issue carries a book review by Abu Rehan Abbasi of “Decision making and business performance”, Eric J. Bolland and Carlos J. Lopes, 2018, Edward Elgar Publishing.
We look forward to your participation in IMRDC 2019-2020.
Best wishes,
Ashok Thampy
Editor-in-Chief
IIMB Management Review
E-mail address: eic@iimb.ac.in
