Faculty & Research

Research Productive

Show result

Search Query :
Area :
Search Query :
2757 items in total found

Working Papers | 2016

Cash Flow Manipulation in State-owned Enterprises

Neerav Nagar and Jaskiran Arora

Manuscript Type: Empirical
Research Question/Issue: We examine whether the state-owned enterprises (SOEs) are more likely to manipulate operating cash flows than private-owned enterprises (POEs). We also test whether the financially distressed SOEs are more likely to exhibit such manipulation.
Research Findings/Insights: Consistent with the arguments about SOEs being inefficient, we find that these are more likely to manipulate operating cash flows than POEs. Our results suggest that SOEs are likely to upward manage reported cash flows by about 6-8% more as compared to POEs. This manipulation in SOEs increases with profitability on one hand and with financial distress on the other i.e. SOEs with higher profitability and higher financial distress demonstrate higher cash manipulations.
Theoretical/Academic Implications: There is dearth of literature on cash flow manipulation and none that presents the evidence on such manipulation by SOEs. The literature shows that firms manipulate cash flows from operations (Lee, 2012; Hollie et al., 2011), and SOEs are more likely to manage earnings (Ding et al. 2007; Wang & Yung, 2011; Liu et al., 2014). We link both sets of literature and present first evidence that SOEs are more likely to upward manage cash flows from operations as compared to POEs.
Practitioner/Policy Implications: Our findings should be of interest to policy makers and accounting standards-setting bodies in emerging markets, suggesting that there is a need to pay closer attention to cash flow reporting practices of SOEs. This might also help the State
to develop a redressal mechanism by bringing about changes in the practices and policies governing SOEs.

Read More

Working Papers | 2016

Does good corporate governance constrain cash flow manipulation? Evidence from India

Neerav Nagar and Mehul Raithatha

Accounting frauds like Enron in the United States and Satyam in India are likely to have occurred due to the failure of firm-level corporate governance mechanisms in constraining unethical financial reporting practices. In this paper, we examine whether such corporate governance measures and regulatory reforms constrain the manipulation of operating cash flows, an important firm performance indicator. We focus on an emerging market, India where corporate governance and regulations are weak, and business groups and founding owners dominate the corporate landscape. We find that cash flow manipulation is likely to increase with an increase in the promoters' shareholding. Further, board diligence and better audit fail to curb such manipulation. Our findings suggest that managers seem to move from earnings management towards cash flow manipulation. However, we do find that such manipulation has gone down in the recent years, and diligent boards constrain it, possibly due to the recent steps taken by the Indian Government for improving the corporate governance environment in India.

Read More

Working Papers | 2016

Does Working for a Not-For-Profit Organization Affect the Psychology of Corruption? Evidence from India

Naman Desai

Working Papers | 2016

Does odd or even make a difference

Sanjeev Tripathi

The evidence from literature on ultimatum games suggests that proposers often split the stake equally when they make an offer. In this study we investigate the effect of odd size stakes (OSS) in ultimatum games. OSS prevents the proposer from splitting the stake in two equal parts. The results suggest that when stakes are odd, proposers do not stay in the neighborhood of an equal split, rather they are tempted to move away and make lower offers.

Read More

Working Papers | 2016

Why should I care - its Others Money

Sanjeev Tripathi

We examine the behavior of players when they play with their own vs. other people's money; we investigate this for both dictator and ultimatum games. The results suggest that the behavior of the players differs when they play with their own money as compared to other people's money. In a dictator game, the offer sizes are larger when playing for others, as people seem to offer more when they do not bear the cost. However, in ultimatum games, proposers tend to be more strategic, less risk averse and make lower offers, when they play with other people's money than with their own money.

Read More

Working Papers | 2016

A new genetic algorithm for the tool indexing problem

Diptesh Ghosh

The tool indexing problem is one of allocating tools to slots in a tool magazine so as to minimize the tool change time in automated machining. This problem has been widely studied in the literature. A genetic algorithm has been suggested in the literature to solve this problem, but its implementation is non-standard. In this paper we describe a permutation based genetic algorithm for the tool indexing problem and compare its performance with an existing genetic algorithm.

Read More

Working Papers | 2016

Intuitionistic Fuzzy Model of Discrete Choice

Manish Aggarwal

The discrete choice models yield a decision-maker (DM)'s choices on the basis of the criteria values. In practice, however, the choices depend on the degree of enjoyment that an evaluating agent derives from a criterion, and which varies from individual to individual. To this end, we introduce an intuitionistic fuzzy variant of multinomial logit model of discrete choice that is able to explicitly consider the imprecision in the utility value, a DM associates with a criterion.

Read More

Working Papers | 2016

Intention to Participate in Cause Related Marketing:
Influence of Cause

Sonal Kureshi and Sujo Thomas

The most widely accepted definition for CRM is provided by Varadarajan and Menon (1988) and it defines CRM as "a process of formulating and implementing marketing activities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenue-providing exchanges that satisfy organizational and individual objectives". Several organizations in India like Dabur, Marico, P&G and ITC have implemented this form of social marketing practice.
In the view of the growing significance of CRM in countries like India which have been facing numerous social challenges, it becomes crucial to understand what factors lead to effective implementation of CRM. This study will provide insights into both type and scope of cause and their bearing upon consumer CRM participation intention.
Consumer data was collected using a structured questionnaire from the western region of India. Reponses pertaining to two aspects about the cause of the initiative, 'type of cause' and 'scope of cause' were collected. Results showed that consumer's interest in participation were found to differ significantly across both type of cause and scope of cause.

Read More

Working Papers | 2016

Simulation of Expected Value Method in Project Risk Management in Two Different Construction Projects

Goutam Dutta

In this paper, we discuss the application of the expected value method of risk management. In the expected value method, there are two possible state of activity - as planned and risky. In a risky state, an activity will require additional time or cost, known as corrective cost and time, over and above the basic cost estimate or basic time estimates. We simulate two different construction projects - a metro construction project and a rural tourism project. The time and cost of an activity have been assumed to follow four different distributions - beta, uniform, normal and triangular. The simulation is performed on the basis of EVM and the expected cost and expected times are computed. We compare and contrast the project completion time and project cost of these four distributions.

Read More

Working Papers | 2016

FRIW: Free Radicle Inspired Walk
Capturing Social Bonds for a Realistic Human Mobility Model

Kavitha Ranganathan

Studies on mobile applications for ad-hoc networks predominantly rely on simulations to evaluate various distributed algorithms. This has given rise to the need for realistic mobility models that incorporate social characteristics of human mobility. Based on basic properties of user movements captured via GPS traces and user interviews, we propose FRIW (Free Radicle Inspired Walk). FRIW leverages the free radicle concept from chemistry and social network theory to model social ties and group mobility in a campus setting. We find that FRIW is successful in generating realistic mobility patterns that can be used for modelling user movements in ad hoc network simulations.

Read More
IIMA