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Working Papers | 1998

Behaviour of Excess Stock Return Around Earnings Announcement Day: A Test of the Efficiency of Kuala Lumpur Stock Exchange

Gupta G S, Jili Ang, and Sanda Ahmadu U

This study is concerned with analyzing stock returns around periods of earnings announcements. Three hundred and sixty-four earnings announcement dates (events) were obtained from the annual earnings announcements of 91 stocks listed on the main board of KLSE for the years 1993 to 1996. For each event market model parameters were estimated and adjusted for thin trading using daily return data for the period six months before the event. The estimated parameters were then used to estimate the residuals for the period 29 days before and 30 days after the announcements. The cumulative average residuals. CAR was found to exhibit a significantly negative trend for more than a month after the announcement. Thus with respect to stocks in the sample the KLSE does not adjust instantaneously to the release of earnings information and hence the KLSE is semi-strong inefficient.

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Working Papers | 1998

Environmental Con trol of Greenhouse at Bhujodi

Pilare Vasant R and Girja Sharan

This write-up contains air temperature data and preliminary analysis of cooling requirement for greenhouse at Bhujodi. Examination of the temperature data showed that night time temperatures remain high enough most of the time. Heating of the greenhouse perhaps will not be required. Day time temperatures on the other hand, remains high enough most of the time to require cooling. Forced ventilation does seem effective, but only for part of day. Evaporation cooling and misting appears necessary. Design of fan-pad system was carried out. It consists of two fans (size 24 inch and 1/3 HP) and cross fluted pad (area 5m2). Water loss is estimated to be about 1000 lit/day in the cooling system, which works out to about 10 lit/m2 of floor are per day.

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Working Papers | 1998

Corporate Takeovers in Malaysia: Discriminant Analysis for Bidder and Target Firms

Gupta G S and Ali Ruhani

Mergers, acquisitions and takeovers are world wide phenomenon and Malaysia is no exception. The first wave of these took off in late 1970s and early 1980s and it is a buzz word unde the current economic trouble. One of the issues to be settled here is which firms act as the bidders and which ones as the targets. The discriminant analysis provides a useful tool for explaining this classification. The paper looks into 144 non-financial firms in Malaysia for period 1980-1993, which includes bidders, targets, control bidders and control targets. A set of five economic/financial variables has been identified to discriminate between the firm's groupings using publicly available time seried data. The empirical findings suggest that the (a) five predictive variables account for about 90% of the firms' groupings, (b) financial leverage is the most powerful discriminatory variable followed by profit, risk, size, and growth, in that order, (c) bidder firms have higher profit and growth, and lower leverage, risk and size, than the target firms, and accordingly provide some support that, (d) the takeover was motivated by the bidder firms' desire for reaping the fruits of economies of scale in order to maintain the tempo of high profit and high growth and/or for displacement of inefficient managers of target firms. These results are corroborated by the logistic regression model.

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Working Papers | 1998

Primary Health Care under Panchayati Raj: Perceptions of Officials from Gujarat

Patel V M and Dileep Mavalankar

The 73rd and 74th Amendments to the Constitution has raised hoped for improving many services in rural areas by handling them over to Panchayat. Gujarat was one of the first states to implement the Panchayati Raj system in 1963 and here primary healthcare was handed over to District Panchayats. This paper reviews the experience of PHC under panchayat system. The paper is based on interviews with officials and a few panchayat leaders and experience of the authors with the health system. Authors discuss several issues and narrate experiences to show that there are several problems related to implementation of PHC system under district panchayat. But at the same time there are also some positive aspects of panchayat control over of PHCs. Overall the paper reaches the conclusion that it is not very clear whether the benefits of handing over PHC sytem to panchayats out weights the risks. There are several problems and shortcoming in the PHC system of Gujarat which the district panchayat have not been able to address effectively. In the end the paper discusses implications of panchayati raj for reproductive and child health programme.

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Working Papers | 1998

Issues in Accounting Standards Setting Processes in India

Ragunathan V and Agrawal Rajesh

The paper critically examines the accounting standards setting process in India and compares the Indian process with the processes prevailing elsewhere in the world. The paper concludes that the Indian standards setting process is neither transparent nor robust. Even though the Accounting Standards Board in India ostensibly represents a wide interest group, the ultimate say in finalising the standards vests with the Council of the Institute of Chartered Accountants of India, so that the standards end up representing only dominant interest group, namely, the accounting profession. The deliberations of the Accounting Standards Board in India are kept confidential, while else where in the world such deliberations are open to public observation.

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Working Papers | 1998

Capacitated Network Design: Exact Algorithms, Reformulations and the Convex Hull

Sastry Trilochan

We study exact algorithms for several variations of the capacitated network design problem, all of which are known to be NP-hard. Exact algorithms are useful for telecommunication network design since the cost of installing networks is very high, and optimal solutions could provide substantial cost savings compared to heuristic solutions. We describe an O(n22n) implicit tree enumeration algorithm and an O(n22k+n3k) dynamic programming path based algorithm where n is the number of nodes and K the number of terminals that need to be connected. In general, the worst case running times of the two algorithms are the same for capacitated and uncapacitated problems, and surprisingly, are faster for problem instances where the capacity constraint on edges is very tight. We also describe the convex hull of feasible integer solutions using O(m2k+n3k) variables and O(n2k) constraints, which is polynomial for fixed K. Finally we show how to use these algorithms to solve a wide variety of related problems, including those with node capacities, the concentrator locator and capacitated plant location problems, a variant of the network loading problem, network expansion, i.e., adding nodes and edges to an existing network, the two level network design problem, and the problem of long term planning where the network is expanded over several years.

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Working Papers | 1998

McKinsoy Versus

Khandwalla P N

The paper contrasts two paradigms of management change that may increasingly compete for management allegiance: the professionalist, a analytical, bottomline oriented “McKinsey” mode and the participatory, collectivist, emotive, improvisation-oriented, values-based “movement” mode. Both are relevant for bringing about needed changes in liberalising and globalising emerging markets like India. The “McKinsey” mode is heavily influenced by Western management gurus and international consultants. It emphasises top down strategic repositioning, restructuring and downsizing, profit centre, operating decentralization, MIS and other management systems, “strong” leadership that firmly implements the change strategy, and generally a stronger commercial orientation. The “movement” mode in corporate management emphasises broad-based diagnosis, development and implementation of strategies of change, collective pursuit of “causes” like much better quality, productivity, innovativeness, customer or stakeholder service, environmental friendliness, human development, or social responsibility, and visionary, transformational, participative leadership. Five examples, four from the West and one from India, illustrate the operation of the “movement” mode. The circumstances under which each mode may be particularly acceptable are discussed. Also discussed are implications for management education.

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Working Papers | 1998

Structural Design for Greenhouse at Bhujodi

Pilare Vasant R and Girja Sharan

This write up contains design computations for selection of structural members for a greenhouse to be installed at Bhujodi. Straight wall gable roof form was selected. Wind load estimates made for wind angle 0 degree and 90 degree on air tight structure. Analysis was also carried out for left wall open. Effect of wind on the structure will be more serve when it is blowing at 0 degree. If the greenhouse happens to be open during high wind, the possibility of damage is increased. The steel requirement of structure in the present analysis is too high (28 kg/ m2). Conventionally it should not exceed 10 kg/m2. Therefore we will be reworking the structural design to reduce steel requirement. We will it in next paper.

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Working Papers | 1998

A Concept of Constrained Egalitarianism in Fair Division Problems

Lahiri Somdeb

This paper is really a modification of a paper by Diamantaras and Thomson (1990). In that paper, the no-envy concept due to Foley (1967) was refined to accommodate some kind of a radial) no-envy comparison, inspired by Chaudhuri (19986). Simply put, each person compares his/her own consumption bundle with all possible radial expansions and contractions of every other person's consumption bundle. A weakly Pareto Optimal allocation which is envy free against such a maximal expansion is the one selected by Diamantaras and Thomson (1990). Our framework differs from the Diamantaras and Thomson (1990) framework in that we consider only the pure exchange situation. With the possibility of quantity constraints on consumption. Thus, since such technical issues with regard to existence of envy free allocation in the sense of Foley (1967) are somewhat secondary (though present) in our framework, we view this no-envy concept as a new equity criterion. In this framework, we prove the Diamantaras and Thomson (1990) result regarding the existence of an envy free allocation on a somewhat larger domain of preferences. We also feel that our existence proof is much simpler than the one due to the two authors, although it is difficult to say whether our proof would extend to the economies with production as studied by them.

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Working Papers | 1998

Role Stress and Job Satisfaction Amongst Doctors

Mishra Prabhat Kumar and Pestonjee D M

The present study was undertaken with the intention of examining the nature of role stress and job satisfaction among doctors, and to explore the relationship between these variables. A group of 35 junior doctors working at the primary health centres and another group of 35 senior doctors attached to various district level hospital served as sample of the study. To attain the objectives of the study, two psychometric instruments – the Organizational Role Stress Scale(Pareek, 1983) and the Employees' S-D Inventory (Pestonjee, 1981) – were administered to the sample population to obtain data pertaining to role stress and job satisfaction variables. The data were analysed in terms of the t-test and coefficients of correlation. Results of the study revealed no significant differences between the two groups except in the case of management area of job satisfaction and inter-role distance (IRD) dimension of role stress. Further, job satisfaction variables correlated negatively with all the dimensions of role stress in the case of both groups.

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