Equity Ownership and Financial Performance

This paper attempts to examine the relationship of equity ownership and financial performance of firms in India. The study explored the possibility that whether equity ownership type affects the financial performance of listed Indian firms. The study examined the relationship of equity ownership with accounting as well as market measures of financial performance of the firms. The study sampled the 500 listed companies constituting BSE 500 indices of Bombay Stock Exchange of India. The 397 most actively listed companies on BSE 500 indices of Bombay Stock Exchange of India, which constitute the bulk of trading, were chosen to constitute the sample of the study as of end of 2009-10. The study used Ordinary least square (OLS) to examine the relationship between the equity ownership and financial performance of the Indian listed firms. The findings of the study depict the presence of highly concentrated ownership structure in the Indian market. The results of the regression analyses interestingly indicate that the dispersed equity ownership influences certain dimensions of accounting financial performance measures (i.e. ROA and ROE) but not market performance measures (i.e. Tobin’s Q, P/E and P/BV ratios), which indicate that there might be other factors (Behavioral, macro economic, political, contextual) affecting firms performance other than ownership structure. The findings of the study might be relevant for practitioners and investors for taking their financing and investment decisions

How ‘Zerodha’ Used Technology to Disrupt the Indian Stock Trading Industry?

In this practitioner-oriented research, we describe how “Zerodha” entered and disrupted the Indian stock trading industry through the use of technology by overcoming the challenges of (1) developing a new business offering that is accessible to all, (2) gaining trust across the community, and (3) fostering and growing their business ecosystem. Our case-based research illustrates how an organization can enter a well-established business area and create value by (1) rethinking the business model, (2) treating technology as a business enabler, (3) empowering the end user, and (4) proactively investing in the business and community. Based on Zerodha’s experiences, we provide guidelines and recommendations for other businesses contemplating to enter and disrupt an established industry by leveraging technology

Dissecting demand response:A quantile analysis of flexibility, household attitudes, and demographics

Demand response (DR) can aid with grid integration of renewables, ensuring security of supply, and reducing generation costs. However, not enough is known about how residential customers’ perceptions of DR shape their response to such programs. This paper offers a deeper understanding of – and reveals the heterogeneity in – this relationship by conducting a quantile regression analysis of a Belgian DR trial, combining data on response with information on household attitudes towards smart appliances. Results overall suggest that improving response requires subtle shifts in electricity consumption behaviour, which can be achieved through changes in user perceptions. Specifically, if customers are inclined to be flexible, a stronger perception of smart appliances as being beneficial can greatly improve response. With those who are less flexible, the cost of smart appliances is a bigger concern. Thus, when designing DR programs, policymakers should aim to promote modest behaviour changes – so as to minimise inconvenience – in customers, by improving awareness on the benefits of smart appliances. Uptake of such DR programs may be improved by explaining the financial benefits or offering incentives to less flexible population segments. Lastly, improving response among older population segments will require a deeper investigation into their concerns.</p