Geetha Elangovan

This systematic literature review examines the fragmented field of corporate share pledging, synthesizing its determinants, managerial responses, and consequences within the Antecedents-Decisions-Outcomes (ADO) framework. Following PRISMA guidelines, we analyze 96 peer-reviewed articles from 19 Scopus-indexed journals spanning China, Taiwan, India, and the United States. The review reveals three cross-cutting patterns: institutional context determines whether pledging signals confidence or distress; governance mechanisms deter pledging entry but fail to constrain post-pledging opportunism; and firms strategically bifurcate stakeholder treatment along lines of external visibility. A pronounced methodological gradient characterizes the evidence base: 86% of Outcome studies rely on quasi-experimental designs, while Decision studies are evenly split (50%), and Antecedents remains the smallest dimension with only 14 studies. Ninety percent of the reviewed evidence derives from Chinese and Taiwanese markets, raising questions about generalizability beyond concentrated ownership economies. The review constructs an evidence hierarchy within the ADO framework, reconciles the cross-market signaling paradox through fund deployment, and proposes a research agenda emphasizing cross-country replication.

This study examines the long-term effect of Initial Public Offerings (IPOs) on the financial and market performance of Small and Medium Enterprises (SMEs) in India. SMEs play a critical role in global economic development, accounting for nearly 90% of businesses and contributing substantially to employment and national income, particularly in emerging economies. Despite their importance, SMEs often face significant financing constraints due to limited access to external capital. To address these challenges, many Indian SMEs increasingly use SME-focused stock exchanges, such as BSE SME and NSE Emerge, to raise capital through IPOs. However, empirical evidence on the long-term outcomes of IPO financing for SMEs remains inconclusive, particularly in emerging market contexts. Drawing on signaling theory, agency theory, and market timing theory, this study investigates whether IPO issuance contributes to sustainable improvements in SMEs’ long-term financial and market performance. Using an unbalanced panel dataset of 198 SMEs listed on the BSE SME from 2017 to 2023, the study employs a fixed-effects panel regression to examine the relationship between IPO financing and firm performance. Additionally, the study evaluates the moderating impact of the COVID-19 pandemic on post-IPO performance outcomes. The findings reveal that IPO financing exerts a significant positive effect on SMEs’ long-term market performance, indicating that public listing enhances investor confidence and market valuation. The results also provide evidence of improved long-term financial performance, contrary to several prior studies that reported post-IPO financial underperformance among SMEs. Furthermore, the COVID-19 pandemic produced mixed effects, improving certain market indicators while adversely affecting financial performance, thereby highlighting SMEs’ vulnerability to external economic shocks. The study contributes to the growing literature on SME financing and IPO performance in emerging economies by providing evidence from the Indian SME market. Practically, the findings suggest that IPO financing can serve as a viable long-term growth strategy for SMEs when supported by effective financial management and crisis-response capabilities.

Background Mobile banking has a great potential to improve rural financial inclusion and is an essential channel for financial transactions. However, it is less common than account ownership, especially where socioeconomic, infrastructure, and awareness challenges persist. India’s coastal areas offer a distinctive setting with seasonal fishing-based incomes and erratic digital connectivity, are underexplored in mobile banking research. By analysing the effects of computer self-efficacy (CSE), e-service quality (ESQ), perceived behavioural control (PBC), perceived credibility (PC), perceived ease of use (PEU), and social influence (SI) on mobile banking adoption, this study aimed to assess the familiarity and usage of mobile banking applications among coastal communities and test a context-sensitive adoption framework. Methods Data were gathered from 286 customers in coastal regions, representing eight public and private commercial banks in India, using a quantitative, cross-sectional design and the convenience sampling approach. A seven-point Likert scale was used for the measurements; internal consistency was determined to be acceptable (Cronbach’s alpha >0.7); partial least squares structural equation modelling (SmartPLS 2.0) was used; convergent and discriminant validity were largely supported (PEU AVE marginal; CSE item alignment requiring improvement). Measurement properties supported structural testing despite inferior global fit indices (SRMR = 0.162; low NFI). Results Descriptive statistics showed that adoption was strong (91.3%), with younger respondents accounting for the majority of uptake. Only CSE (β = 0.074, T = 2.114, p = 0.035) and ESQ (β = 0.058, T = 2.053, p = 0.040) showed statistically significant positive impacts on adoption; PBC, PC, PEU, and SI showed negligible negative values. Conclusion The findings suggest that digital literacy programs, improved and localised e-service quality, and improved connectivity are crucial for long-term mobile banking adoption and successful financial inclusion policies. They also show that in coastal rural settings, capability and experience-based factors outweigh normative and convenience perceptions.

Purpose: In emerging markets, where ownership is often highly concentrated, the practice of promoters' share-pledging is prevalent. Such practices have raised concerns among investors and regulators alike, since the board's high promoter dominance compels managers to manipulate financial reports. Thus, this study aims to investigate the impact of promoters' share-pledging on two critical aspects of earnings quality: earnings persistence (EP) and informativeness. Design/methodology/approach: In emerging markets, where ownership is often highly concentrated, the practice of promoters' share-pledging is prevalent. Such practices have raised concerns among investors and regulators alike, since the board's high promoter dominance compels managers to manipulate financial reports. Thus, this study aims to investigate the impact of promoters' share-pledging on two critical aspects of earnings quality: earnings persistence (EP) and informativeness. Findings: Our results demonstrate that adopting an opportunistic financial reporting strategy among share-pledging firms reduces the EP, thereby decreasing the informativeness about future earnings. In addition, the DiD analysis results reveal promoters' motive to manage earnings through accrual and real earnings management signals to a zero-sum game, which exacerbates the earnings quality. Practical implications: Our results demonstrate that adopting an opportunistic financial reporting strategy among share-pledging firms reduces the EP, thereby decreasing the informativeness about future earnings. In addition, the DiD analysis results reveal promoters' motive to manage earnings through accrual and real earnings management signals to a zero-sum game, which exacerbates the earnings quality. Originality/value: To the best of the authors' knowledge, this study stands among the first to provide comprehensive empirical evidence on the relationship between promoters' share-pledging and EP in the Indian market. We offer novel insights by exploiting the 2019 regulatory change, which mandated detailed disclosure of share-pledging fund usage, thereby illuminating the governance implications of this key corporate practice.

Type of the article: Research ArticleAbstractPromoters’ share pledging represents a serious corporate governance problem in highly concentrated ownership environments, with substantial implications for firms’ financial reporting integrity and investors’ interests. This study examines the relationship between share pledging and accounting conservatism while evaluating the effectiveness of SEBI’s 2019 disclosure mandate (Regulation 31(1)) in curbing opportunistic reporting. Utilizing a panel of 1,933 Indian non-financial firms from 2015 to 2022, we employ a fixed-effects model and a difference-in-differences framework to analyze an accrual-based proxy of conservatism. The empirical findings indicate a positive relationship between promoters’ pledging and the accrual-based proxy, with firm-level (FL_Pledge) and promoter-level (PL_Pledge) pledging coefficients of 0.072 (t = 5.72) and 0.044 (t = 6.43), respectively, confirming that pledging firms engage in less conservative reporting. The difference-in-differences analysis reveals that the 2019 regulatory change reduced opportunistic reporting, as evidenced by a significant negative interaction coefficient of –0.010 (t = –2.99). Furthermore, the results show that post-regulation, the treated group’s association with the accrual proxy remains positive at 0.014 (t = 3.16), suggesting a shift towards more conservative accounting practices following mandatory disclosure. These results indicate that India’s disclosure-led regulatory frameworks serve as an alternative to the restrictive pledging caps observed in other emerging economies.

The interplay between stock market performance and economic risk is a central concern in financial economics, as macroeconomic variables have a considerable impact on investment decisions and stock pricing. This relationship is particularly critical for bank stocks, as their performance is a key indicator of a country’s financial health. While extensive research has explored bank stock returns in developed economies, there exists a significant gap in understanding this dynamic within developing countries like India, particularly amid macroeconomic fluctuations underscored by the COVID-19 pandemic. Given the substantial investments in bank stocks by Indian investors, this study aims to examine the impact of macroeconomic factors on Indian bank stock returns. The study employs quarterly data from 2013–14 to 2022–23, with macroeconomic data sourced from the CMIE Economic Outlook and bank stock returns data obtained from the Bloomberg database. Using an Ordinary Least Squares regression model, the findings reveal that interest rate (β = 0.3069), inflation (β = 0.1644), GDP (β = 0.1928) and COVID-19 (β = 0.5737) exert significant positive effects on bank stock returns, while the exchange rate (β = –0.7440) has a substantial negative impact. The results highlight the sensitivity of bank stock returns to macroeconomic volatilities, with the pronounced impact of the COVID-19 pandemic further highlighting the effects of economic crises. The findings emphasize the need for incorporating these factors into the bank stock returns model, offering valuable insights for investors, banks, and financial regulators. AcknowledgmentAleena Joseph is a recipient of the Indian Council of Social Science Research Doctoral Fellowship. The article is largely an outcome of the doctoral work sponsored by ICSSR. However, the responsibility for the facts stated, opinions expressed, and the conclusions drawn is entirely that of the authors.

In recent times, macroeconomic factors have become a central focus of interest in international trade research. The economic environment in international trade directly affects trade performance and the global market. The study analyzes the export performance of Indian textile exports and the macroeconomic factors influencing them from the perspective of export destinations. The study incorporates the key macroeconomic variables, including exchange rate, interest rate, Gross Domestic Product (GDP) per capita, the inflation rates of export destination countries, and crude oil prices. The study includes secondary data gathered on a monthly basis, employing the vector auto-regressive (VAR) model and the Granger causality test to analyze the dynamic linkages and causal relationships between the variables in the study. The Granger causality test results revealed that Japan’s and South Africa’s GDP (p < 0.05) impacts India’s textile exports to these countries. Additionally, the inflation in Japan (p < 0.05) affects the performance of Indian textile exports. The VAR model further revealed that the USA’s and China’s interest rate, Japan’s exchange rate, GDP, and interest rate, as well as South Africa’s GDP, significantly influence the export performance of Indian textiles.