Centres Of Excellence

To focus on new and emerging areas of research and education, Centres of Excellence have been established within the Institute. These ‘virtual' centres draw on resources from its stakeholders, and interact with them to enhance core competencies

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Faculty

Faculty members at IIMB generate knowledge through cutting-edge research in all functional areas of management that would benefit public and private sector companies, and government and society in general.

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IIMB Management Review

Journal of Indian Institute of Management Bangalore

IIM Bangalore offers Degree-Granting Programmes, a Diploma Programme, Certificate Programmes and Executive Education Programmes and specialised courses in areas such as entrepreneurship and public policy.

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About IIMB

The Indian Institute of Management Bangalore (IIMB) believes in building leaders through holistic, transformative and innovative education

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Abstracts of Papers Selected

Firm Investment, Financial Constraint and Voluntary asset sales
This paper contributes empirically to the 'Excess Sensitivity' literature by arguing that results obtained by using investment-cash flow sensitivity as a metric to represent finance constraint of firms can be misleading. This is because cash flow apart from signaling change in net worth may also signal investment opportunities of firms. Following Hovakimian and Titman (2006), we use funds obtained from voluntary asset sales rather than cash flow to represent internal liquidity of firms. Use of funds obtained from voluntary asset sales is justified as it is unlikely to be related to the firm's future investment opportunities unless they are financially constrained. For the exercise we study Indian private manufacturing firms in the period 1994 to 2009. We take care of the endogeneity and the implicit monotonicity problems, which are much debated in the literature, by using an endogenous regime switching model. 

Emergence of and Organizational Field: A study of the Palliative Care Field in Kerala, India

 

Economic Transition and the Value of Business Group Affiliation: Evidence from the Indian Market 
There is growing evidence that the institutional voids theory proposed by Khanna and Palepu (1997, 2000a) is too simple to explain the value of business group affiliation (Carney et al., 2011). We contribute to the literature by revisiting the debate through a longitudinal analysis during economic transition. Our approach not only uncovers the dynamics of business group structural factors on affiliates' value but also integrates the merits of several alternative theories which can help to resolve several inconsistencies in the literature. Using 44,000 firm year observations of Indian business groups and standalone firms, for the period 1990-2009, we report the following four main findings: 1) the value spread between business group affiliates and standalone firms persists over time: groups are valued higher than standalone firms. However, the economic value of the value spread narrows over time; 2) the risk premium associated with institutional voids is priced in the capital market; 3) the value advantage of business group affiliated firms is determined mainly by business group scale related structural advantage and not due to business group scope related structural advantage as proposed by Khanna and Palepu (1997, 2000a); and 4) business group scope related dynamics affect affiliated firms' value.