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3722 items in total found

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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Working Papers | 2015

Competition Law and the Pharmaceutical Sector in India

Shamim S. Mondal and Viswanath Pingali

The Indian pharmaceutical industry is one of the largest in the world both in terms of volume and value. Given its critical importance, the sector has been subject to a series of regulatory interventions, which have altered the nature of the industry quite significantly. With enacting the Indian competition Act (2002), India has joined the list of countries that has a robust competition regime. The purpose of this chapter is to understand the pharmaceutical sector through the prism of competition law.

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Working Papers | 2015

Does Trade Make Asian Children Healthier?

Vishalkumar Jani and Ravindra H. Dholakia

This paper empirically examines the impact of globalization and international trade on the child health status of the Asian countries. In contrast to previous studies we have introduced the initial level of development and income status that seem to play an important role. We have also checked whether the impact on child health status of trade in services is different from the trade in goods. The fixed effects panel data analysis shows that economic and political globalization have positive impact on the child health status measured by child mortality rates and malnutrition. International trade across all countries has no impact on child health but when different groups of countries classified by their initial levels of income and development are considered, trade shows significant impact on the child health. Further decomposing the trade, trade in services show more positive impact on the child health status than the trade in goods.

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Working Papers | 2015

India's Air Traffic System: Network Topologies, Hierarchies and Evolution

Hans Huber

The paper examines multi-dimensional patterns of network characteristics for scheduled Indian airlines between 2006 and 2014. The well-known skewed traffic distribution which concentrates traffic around relatively few hub airports serves as the starting point for decomposing the air traffic system (ATS) into its constituent route types. Operations of distinct airlines along these route classes allows for classifying carrier's network features as an embedded part of the system. Discussion of the carriers' role in the overall domestic ATS includes a spatial component. Inferences about development paths-past, present, future-of the Indian scheduled ATS can be made.

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Working Papers | 2015

Damages in a Consumer Sale Contract: Reviewing the Consumer Protection Bill, 2015

Akhileshwar Pathak

Consumer protection law rests on the foundations of contract law and the law of sale of goods. A consumer law has to conceptually express this foundation and the modifications it is bringing about in these laws. Without this, the law would become unclear, conflicting and confusing. In this respect, the Consumer Protection Bill, 2015 is not secured in its foundation and needs revision. The paper reviews the rights of the consumer (buyer) to receive damages for breach by the seller. The bill recognises only repair and replacement as damages for the consumer. For claiming other damages, the consumer must establish negligence by the seller. The principle of contract law, to the contrary, is that for every breach, irrespective of the intention or diligence, the seller has to pay damages to the buyer. The bill has mixed up contractual damages with damages under the law of torts. In sale contracts, consequential damages arising from defective goods are readily recognised. The bill should recognise this. The paper, reviewing the law, develops draft provisions on the theme. The draft provisions are in the annexure to the paper.

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Working Papers | 2015

A Quadratic Programming Formulation of the Equidistant Bi-directional Loop Layout Problem

Diptesh Ghosh

A loop layout is a common layout used in
exible manufacturing. In such a layout, a set of
stations or facilities are to be arranged in a closed loop so that the total cost of
ow between
each pair of facilities is minimized. The most common mathematical programming formulation
of the problem is based on a quadratic assignment formulation. In this paper, we modify that
formulation taking advantage of the structure of the problem.

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