Centres Of Excellence

To focus on new and emerging areas of research and education, Centres of Excellence have been established within the Institute. These ‘virtual' centres draw on resources from its stakeholders, and interact with them to enhance core competencies

Read More >>

Faculty

Faculty members at IIMB generate knowledge through cutting-edge research in all functional areas of management that would benefit public and private sector companies, and government and society in general.

Read More >>

IIMB Management Review

Journal of Indian Institute of Management Bangalore

IIM Bangalore offers Degree-Granting Programmes, a Diploma Programme, Certificate Programmes and Executive Education Programmes and specialised courses in areas such as entrepreneurship and public policy.

Read More >>

About IIMB

The Indian Institute of Management Bangalore (IIMB) believes in building leaders through holistic, transformative and innovative education

Read More >>

Research & Publications Office to host seminar on ‘Loan Maturity and Dynamic Debt Overhang: Theory and New Evidence’ on 12th March

The talk will be delivered by Prof. Apoorv Gupta, Dartmouth College

28 February, 2024, Bengaluru: The Office of Research and Publications (R&P) at IIM Bangalore will host a research seminar on, ‘Loan Maturity and Dynamic Debt Overhang: Theory and New Evidence’, to be led by Prof. Apoorv Gupta, Dartmouth College (Finance & Accounting/Decision Sciences area), at 2.30 pm on 12th March 2024, at Classroom Q-102. 

Abstract: There are various theories of debt contracting highlight mechanisms through which loan maturity affects borrower behavior, but empirical evidence on their relevance remains inconclusive. The research provides empirical evidence on the question by exploiting a natural experiment implemented by a publicly traded financial company in South Africa that extended the maturity of outstanding loans for financially distressed small businesses. Exploiting a cut-off rule that increased the maturity for a group of borrowers while keeping the maturity of otherwise observationally equivalent group unchanged, it is found that a longer maturity increases labor supply, increases loan repayment, and reduces delinquencies on other debt sources for the business owners. These findings are consistent with a model where longer maturity lowers the market value of debt for liquidity constrained borrowers by making payments due later, reducing future debt overhang.

Speaker Profile: Dr. Apoorv Gupta is an Assistant Professor of Economics at Dartmouth College. He is an applied economist who studies firms in developing countries. His work analyzes what drives the productivity and growth of firms in economies characterized by substantial market failures; in particular, how the performance of firms and allocation of resources across firms interact with various frictions prevalent in developing economies. His more recent work has focused on understanding how market failures prevalent in developing economies – such as high cost of capital, high debt burden, bureaucratic inefficiencies and limited competition – affect the performance and decision-making of firms.

Webpage Link: https://sites.google.com/view/apoorv-gupta/

Research & Publications Office to host seminar on ‘Loan Maturity and Dynamic Debt Overhang: Theory and New Evidence’ on 12th March

The talk will be delivered by Prof. Apoorv Gupta, Dartmouth College

28 February, 2024, Bengaluru: The Office of Research and Publications (R&P) at IIM Bangalore will host a research seminar on, ‘Loan Maturity and Dynamic Debt Overhang: Theory and New Evidence’, to be led by Prof. Apoorv Gupta, Dartmouth College (Finance & Accounting/Decision Sciences area), at 2.30 pm on 12th March 2024, at Classroom Q-102. 

Abstract: There are various theories of debt contracting highlight mechanisms through which loan maturity affects borrower behavior, but empirical evidence on their relevance remains inconclusive. The research provides empirical evidence on the question by exploiting a natural experiment implemented by a publicly traded financial company in South Africa that extended the maturity of outstanding loans for financially distressed small businesses. Exploiting a cut-off rule that increased the maturity for a group of borrowers while keeping the maturity of otherwise observationally equivalent group unchanged, it is found that a longer maturity increases labor supply, increases loan repayment, and reduces delinquencies on other debt sources for the business owners. These findings are consistent with a model where longer maturity lowers the market value of debt for liquidity constrained borrowers by making payments due later, reducing future debt overhang.

Speaker Profile: Dr. Apoorv Gupta is an Assistant Professor of Economics at Dartmouth College. He is an applied economist who studies firms in developing countries. His work analyzes what drives the productivity and growth of firms in economies characterized by substantial market failures; in particular, how the performance of firms and allocation of resources across firms interact with various frictions prevalent in developing economies. His more recent work has focused on understanding how market failures prevalent in developing economies – such as high cost of capital, high debt burden, bureaucratic inefficiencies and limited competition – affect the performance and decision-making of firms.

Webpage Link: https://sites.google.com/view/apoorv-gupta/