Research Projects 2016- 2017

Project Title: Understanding Supply Network Structures and their performance consequences across developed and emerging market contexts

Area: Strategy/ Operations /Finance
Principal Investigators: Prof. Anindya Ghosh
Co-investigator:  Prof. Sridhar Seshadri, Prof. Krishnamurthy Vaidyanathan

Abstract: A multi - disciplinary research project spanning finance, operations strategy to collect detailed supply network data and explore, analyze, and understand the similarities and differences of network structure and their performance consequences across developed and emerging market contexts. Broadly, the project investigates the following:
 1) The role of networking the propagation of risks in role of Networks in the propagation of risks in supply networks and consequently it effect on Firm returns and
 2) The role of global supply networks, especially the presence of certain network Structures such as “small world,” in conferring competitive advantage to firms through sustained superior firm performance.

Project Title: Low Income Consumers in India: Innovation and Customer Engagement

Area: Marketing
Principal Investigator: Prof. S. Arunachalam

Abstract: The objectives of this research project are to examine and understand:
1. The purchase and consumption behaviors of India’s low income consumers (LIC)
2. Firms’ response in terms of new product launches/ innovative solutions to these consumers
3. Customer engagement through firms’ channel and salesforce in influencing product adoption and sales
4. The nature of differential sources of social ties and trust in engaging consumers through different channel routes.
 

Project Title: Flow-driven Variation in Government Bonds

Area: Finance
Principal Investigator: Prof. Prachi Deuskar
Co-investigator: Prof. Timothy Johnson

Abstract: This study investigates the role of illiquidity and order flow in determining bond prices, with particular attention to the role of central banks. While intuition and some theoretical arguments suggest that liquidity provision by central banks should promote market depth and stability, recent experience has led some to suggest that aggressive management of bond markets may actually have the opposite effect. Using a comprehensive dataset of orders and trades in the Indian government bond market, we build a dynamic model of the interaction of order flows, returns, and illiquidity. The model allows us to quantify the fraction of price variation caused by exogenous shocks to flow, and investigate conditional determinants of this flow-driven component of variation. Results show that the effect of flow on interest rates is large and permanent, and that flow-driven variation accounts for a substantial component of bond volatility. Both bond market liquidity and order flow volatility show significant time-variation, contributing to substantiation movement in flow-driven variation. We find that funding liquidity injection by central bank and central bank activism are associated with improvement in bond market liquidity. Ongoing work is examining the role of central bank actions in determining the other components of flow-driven variation.

Project Title: Road Infrastructure Projects in India

Area: Accounting
Principal Investigators: Prof. Sanjay Kallapur
Co-investigator:  Prof. Pradeep Singh and Prof. KR Subramanyam

Abstract: While India has ambitious plans to build more roads through PPP, it is perceived that the existing PPP projects have not worked well. This project will analyze the performance (actual cost in relation to length of road and original estimates, and actual time to completion in relation to original estimate) of completed road projects separately for each financing source (PPP, World Bank, ADB, and NHAI) and for each state. We will also analyze financial profitability of the PPP ventures, and survey companies and MoRTH (Ministry of Road Transportation and Highways) and NHAI (National Highway Authority of India) officials to understand perceptions about performance and risk. Finally we will correlate time and cost overruns with the stated reasons for delay. Based on this analysis, we will make recommendations for better structuring of PPPs so that they perform in the best interests of all parties.

Project Title: Do exit laws matter for FDI?  Evidence from Indian States.

Area: Strategy
Principal Investigator: Prof. Naga Lakshmi Damaraju

Abstract: In the context of Make in India, does the stringency of exit norms play a role in attracting FDI investments into various states across India?  Will environmental munificence moderate this relationship?  Does exit figure as a priority on the minds of investors?

 

Project Title: Creditor Rights, Capital Structure and Corporate Labor Policy

Area: Finance
Principal Investigator: Prof. Shashwat Alok
Co-investigator: Prof. Ritam Chaurey

Abstract: This study aims to evaluate the impact of creditor rights on labor outcomes for firms in India using the passage of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests Act of 2002 (SARFAESI Act henceforth), which strengthened the rights of secured creditors as a quasi-experimental setting. Overall, our study expects to inform the literature on the relationship between firm’s financing decisions and labor policies.