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2757 items in total found

Working Papers | 2016

Fitting Talent Management Strategy into National Culture

Promila Agarwal

In the face of globalization, organizations are concerned with how to design the talent management strategy that fits the national context. Based on an extensive literature review, the paper presents a systematic review of the literature on the role of talent management stagey, and Hofstede's cultural dimensions in creative sense of justice among employees. The paper examines the effectiveness of inclusive and exclusive talent management strategy using the Hofstede's cultural dimensions theory. The paper investigates the association between organizational justice and talent management strategy in different cultural conditions.

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Working Papers | 2016

Does Pharmaceutical Price Regulation Result in Greater Access to Essential Medicines? Study of the impact of drug price control order on sales volume of drugs in India

Arvind Sahay and Saravana Jaikumar

In this paper, we empirically examine whether price regulation of generic essential drugs in India results in social welfare (in terms of increase in sales volume post regulation). In 2013, the Indian government enacted the Drug Price Control (DPCO) which regulated the prices of essential medicines. Using historical monthly sales volume data, we identify the best fitting SARIMA (seasonal auto regressive integrated moving average) model for each of the 105 oral solid molecules included in DPCO 2013. Using these models and following the event study approach we statistically compare the baseline against the actual volume during event window. We find that while DPCO resulted in an increase in sales volume for few molecules, overall the regulation has resulted in a reduction in sales volume. On further analysis, we find that increasing the detailing efforts for molecules with high percentage sales in urban and semi-urban cities may likely result in positive DPCO impact. Our findings have significant policy and marketing implications.

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Working Papers | 2016

Effect of Overlapping Price Ranges on Price Perception: Revisiting the Range Theory of Price Perception

Saravana Jaikumar and Arvind Sahay

The context in which a product is seen has an impact on the behavior of consumers. Specifically the impact of the context provided by the most and least extreme values, i.e., the range of stimuli presented has been well documented. In the price context, the range theory posits that an individuals evaluation of a products price depends on the range of prices observed. Prior research on range theory has demonstrated the effect of a single price distribution (by varying the range and frequency of values within the distribution) on consumer product and price evaluations. In this research, we examine a more realistic situation in which a consumer has to evaluate a products price in the presence of two or more price distributions whose anchors (end points) may overlap. A consumer has to take into account two or more end points simultaneously to make judgments. Based on the tenets of regret theory, we develop the overlapping ranges hypotheses and design a series of experiments to p;rovide empirical evidence. We propose using the eye-tracking method as a tool to illustrate the cognitive process in evaluating the overlapping price ranges. We develop a boundary condition for the overlapping ranges hypotheses and argue that goal-directed behavior will inhibit the consumer from considering multiple ranges simultaneously. Finally, we consider multiple attributes of a product and take into account attribute tradeoffs across price ranges. Across four studies we provide consistent experimental evidence supporting our hypotheses.

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Working Papers | 2016

The Surrogacy Law Conundrum

Akhileshwar Pathak

India has emerged as an international centre of 'surrogacy industry'. The practice raises complex ethical, moral and legal questions. With reference to the Baby M Case, the paper explores the legal validity of surrogacy contract and themes surrounding it. The paper also reviews the existing law on the subject.

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Working Papers | 2016

Effect of Tariff Regulation in Major Port Container Terminals: The Case of Jawaharlal Nehru Port Trust

G. Raghuram and Prashanth D. Udayakumar

Tariff at India's centrally-administered major ports, including privately operated terminals therein, are regulated and prescribed by the Tariff Authority for Major Ports (TAMP). TAMP was set up under an amendment of the Major Port Trusts Act 1963 in 1997. This paper analyses the evolution of TAMP's tariff policy against the growth of container terminals at the Jawaharlal Nehru Port. This major port, and India's largest container port, is run by the Jawaharlal Nehru Port Trust (JNPT), an autonomous body constituted under the Major Port Trusts Act, 1963. Various regulatory issues related to cost-plus approach to tariff setting, unsustainable royalty payments, regulatory capture, regulating performance, varying tariffs across CTs, and market assessment and capacity utilisation have been discussed.

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Working Papers | 2015

Exact Solution for Service System Design Problem with Capacity Selection

Sachin Jayaswal

Working Papers | 2015

Investor Protection and Cash Flow Misclassification

Neerav Nagar and Kaustav Sen

Research Question/Issue: We analyze whether cash flow misclassification is likely to be higher in the countries with weak investor protection. We also test whether managers use different strategies to misclassify cash flows.
Research Findings/Insights: We focus on an emerging market, India, which is characterized by weak corporate governance and investor protection, and the United States and present evidence that the magnitude of cash flow misclassification is higher for the firms in India. Further, Indian firms in financial distress are more likely to manipulate operating cash flows as compared to the financially distressed firms in the United States by engaging in such misclassification. Managers manipulate operating cash flows by shifting operating cash outflows to investing and financing cash outflows, and investing and financing cash inflows to operating cash inflows.
Theoretical/Academic Implications: We present first evidence that the magnitude of cash flow manipulation through misclassification is associated with weak investor protection and governance. We also present an improved methodology to capture the strategies for such misclassification.
Practitioner/Policy Implications: Our results indicate that cash flows are as prone to manipulation and misclassification as the earnings. These may be useful to regulators and auditors in India and other countries with weak investor protection, where they need to monitor the cash flow reporting closely.

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Working Papers | 2015

An Overview of the Trucking Sector in India:
Significance and Structure

G. Raghuram

The objective of this paper is to provide an overview of the trucking sector. It describes the significance of road transport and the structure of the trucking industry. It also explores the causes and consequences of the structure. The paper brings out the significance of road transport by examining the modal share and GDP share, and profiling the type of roads and vehicles. The paper highlights the structure of the trucking industry comprising its core actors, the providers of the tangible elements, support services, and government and regulatory bodies. The causes of this structure, especially the core actors, are discussed with the help of the phenomenon of 'Unholy Equilibrium'. The consequences are seen in the fragmented ownership pattern and poor service quality. The paper concludes by bringing out the priorities of any transport system through a 'five S' framework. The trucking sector should be driven by speed with sustainability, safety, security, and stresslessness.

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Working Papers | 2015

Firm Life Cycle and Real-Activity Based Earnings Management

Neerav Nagar and Suresh Radhakrishnan

We examine real-activity based earnings management, i.e., cuts in discretionary innovation/marketing spending and overproduction for meeting the earnings benchmark of avoiding losses across firms' life cycle. We use the cash flow components to classify a firm's life cycle. We hypothesize and find that firms in the growth and mature stages exhibit real-activity based earnings management to meet earnings target of avoiding losses; but firms in the introductory stage do not. We also hypothesize and find that such real-activity based earnings management to meet the earnings benchmark of avoiding losses is associated with future performance for mature firms, but not so for growth firms. Collectively, our evidence shows the importance of considering firm's life cycle when examining real-activity based earnings management.

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Working Papers | 2015

Climate Change and India: Adaptation GAP (2015)

Amit Garg, Vimal Mishra, and Hem H. Dholakia

Climate change is projected to have severe adverse impacts on India's population, natural
eco-systems, and socio-economic parameters. India's vulnerability to climate change impacts
is profound since around 650 million Indians are dependent on rain-fed agriculture for their
livelihoods; around 250 million Indians live along a 7500 km of coastline that is at high risk due
to sea level rise and extreme weather events; many of the 10,000-odd Indian glaciers are receding at a rapid rate; and deforestation is happening.

India is concerned about climate change impacts.
India occupies 2.4% of the global land area, supports 17% of the global population and contributes less than 4% of global greenhouse gas emissions. Sustainable development is at the core of Indian planning process and India has been making huge efforts for enhancing the quality of life of her people including sustained poverty alleviation efforts. The number of people below poverty line has declined from 469 million to about 388 million during 2005 to 2010. Even then roughly threefourths of Indian population lives below a daily income of US$ 2 (PPP). This also highlights the extent of number of people who are vulnerable to adverse impacts of a changing climate.

India has submitted the Intended Nationally Determined Contributions to UNFCCC on October
1, 2015 highlighting a strong GHG mitigation plan until 2030 and also providing a glimpse into
national vulnerability to adverse impacts of climate change across regions and sectors. According to IPCC AR5, adaptation and mitigation are complementary strategies for reducing and managing the risks of climate change. The below 2oC target also unequivocally includes reducing the combined and cumulative risks of mitigation and adaptation actions. The Lima COP-20 (2014)
agreed on elevating adaptation onto the same level as the curbing and cutting of greenhouse gas
emissions. This report analyzes the climate change that is already occurring in India, projected
future climate change, the proactive measures Government of India is taking to adapt to the
adverse impacts of climate change, and the Adaptation Gap that is ever increasing.
India has experienced substantial changes in mean and extreme climate during the period of 1951-2013. For instance, mean annual air temperature has increased in many regions of the country.

Other than the mean annual air temperature, prominent increase was observed in the number
of hot days, night-time temperature, and growing degree days during the period of 1951-2013.
Figure 1 indicates the regions that are experiencing temperatures equivalent to various RCPs
currently. Based on our analysis, around 36 districts (5.5% of land area or ~36 million people)
are observing temperatures equivalent to Representative Concentration Pathway 8.5(warming
of 4°C+)., 65 districts (11% of land area or ~65 million people) RCP6 (warming of 3°C-4°C),
346 districts (59% of land area or ~704 million people) RCP4.5(warming of 2°C -3°C) and
the remaining 190 (24.5% of land area or ~405 million people) districts RCP2.6 (warming of
2°C). The RCP are internationally accepted scenarios to project climate change. Similary for
precipation, these numbers are 63% area for RCP 8.5, 2.6% area for RCP 6, 24% area for RCP
4.5 and 11% area for RCP 2.6. 35 districts are facing the highest risk facing due to enhanced
temperature now (following profiles similar to RCP 8.5). These are Aizawl, Baran, Bhilwara,
Bundi, Cachar, Champhai, Chandel, Chittaurgarh, Churachandpur, Darrang, Dhalai, East Garo
Hills, East Kameng, Guna, Hailakandi, Jaipur, Jhalawar, Karimganj, Kolasib, Kota, Lalitpur,
xii CLIMATE CHANGE AND INDIA: ADAPTATION GAP (2015)
Lawngtlai, Lunglei, Mamit, North Tripura, Papum Pare, Sagar, Saiha, Sawai Madhopur, Serchhip,
Sheopur, Shivpuri, Sivasagar, South Tripura and West Tripura. There are 408 districts for similar
profile for precipitation and this are spread across various states of India. 22 districts which are
following RCP 8.5 profile for both temperature and precipitation together are Aizawl, Baran,
Bhilwara, Bundi, Cachar, Champhai, Chandel, Chittaurgarh, Churachandpur, Dhalai, East Garo
Hills, Hailakandi, Jhalawar, Karimganj, Kolasib, Kota, Lunglei, Mamit, North Tripura, Serchhip,
South Tripura and West Tripura

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IIMA