Arvind Mahajan

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• PhD
• Professor at Texas A&M University

The COVID-19 pandemic has profoundly reshaped human life. The development of COVID-19 vaccines has offered a semblance of normalcy. However, obstacles to vaccination have led to substantial loss of life and economic burdens. In this study, we analyze data from a prominent health insurance provider in the United States to uncover the underlying reas...

Purpose This paper aims to assess the impact of corporate social irresponsibility (CSiR) media coverage on firm performance in India. It also analyses the effects of the environment, social, governance, and cross-cutting issues on firm performance. Design/methodology/approach The paper utilizes a sample of Indian firms from the Reprisk ® database,...

This study provides the first hybrid model by applying bibliometric analysis and topic modeling for mapping the intellectual structure of CSiR literature to improve business model flexibility. It has the following research objectives: (1) overview of CSiR literature for publications trends, influential studies, significant authors, dominant journal...

The study investigates the impact of environment, social and governance (ESG) controversies on firm performance in India. Utilizing a sample of 1,024 firm-year observations of Indian firms from 2007 to 2018, the study reports that ESG controversies reduce firm performance. Further, after introducing the interaction effect of government effectivenes...

This study investigates whether, when, and how media coverage of environment, social, and governance (ESG) controversies, type of media reach, and media severity affects firm value in India's emerging and developing market. By anchoring enacted sensemaking theory with agendasetting theory and attribution theory, we offer the first investigation of...

This study investigates whether, when, and how media coverage of environment, social, and governance (ESG) controversies, type of media reach, and media severity affects firm value in India's emerging and developing market. By anchoring enacted sensemaking theory with agendasetting theory and attribution theory, we offer the first investigation of...

This study investigates the intellectual structure of corporate social irresponsibility (CSiR) by identifying past developments, current areas, emerging topics, and suggesting future research directions. Complementing bibliometric analysis through the VOSviewer technique with topic modeling exercise, we map CSiR intellectual structure from 1990 to...

Purpose The purpose of this paper is to answer a fundamental question – are individual stock picks by a particular internet investment community informative enough to beat the market? The author observes that the stock picks by the CAPS community are reflective of existing information and portfolios based upon CAPS community stock rankings do not...

Purpose – The purpose of this paper is to study the effectiveness of market discipline on banks’ risk-taking behavior based on how swiftly banks respond to market information. Design/methodology/approach – A simplified incentive model provides the necessary justification for two types of market disciplines: first, monitoring by uninsured market pa...

The relation between credit risk and expected return has been extensively studied in the literature, yet the existing empirical results are mixed. On the one hand, Griffin and Lemmon (2002), Vassalou Xing (2004), Avramov et al (2007), Chava and Purnanandam (2010), and Hwang et al (2010) document that investors require a positive premium for holding...

This paper documents that momentum profits in corporate bonds prevail during weakening aggregate credit conditions, and are driven by losers. Consistent with this, we find that a conditional default factor explains the cross-section returns of corporate bond portfolios sorted by past performance. Based on the evidence, we develop a model connecting...

In this paper, we explain momentum profits using innovations in aggregate economy-wide default risk. First, we show that momentum returns are positive only during high default shocks and nonexistent otherwise. Second, we present evidence suggesting that a conditional default shock factor is priced in the cross-section and can explain a large portio...

Past research documents that momentum is positively related to default, yet the profitability of momentum is observed to be lower during recessions, when default concerns are potentially higher. We attempt to resolve this puzzle by analyzing the profitability of the momentum anomaly over time, conditional on both business cycles and unexpected chan...

The study investigates the effects of macroeconomic conditions on corporate liquidity (cash holdings) in 34 countries from 1994 to 2005. The results show that macroeconomic variables like GDP growth, inflation, real short-term interest rate, government budget deficit, credit spread, private credit, and corporate tax rate have a direct impact on cor...

This paper examines the validity of the purchasing power parity (PPP) condition in EMU countries during three distinct exchange rate regimes (floating-rate, target-zone arrangement, and fixed-rate or common currency) from January 1973 through March 2005. Our results support PPP. PPP worsens during the common currency regime both within the euro cur...

The Arbitrage Pricing Theory (apt) offers a testable alternative to the mean‐variance based asset pricing models whose validity and testability have been questioned in the literature. This study tests the validity of the apt using the Toronto Stock Exchange's monthly individual stock price data from January 1971 to December 1982. Results obtained s...

We investigate the equity market timing hypothesis of capital structure in major industrialized (G-7) countries. As claimed by its proponents, we find that leverage of firms is negatively related to the historical market-to-book ratio in all G-7 countries. However, this negative relationship cannot be attributed to equity market timing. We find no...

The combined economies of Brazil, Russia, India and China (BRICs) appear likely to become the largest global economic group by the middle of this century. Our paper summarizes the features of each economy that justify this forecast, and highlights some of the country-specific obstacles that could prevent its realization. Specifically, we contribute...

This study investigates the relationship between ownership structure and firm performance and the relationship between board structure and firm performance for the Taiwanese market. The three unique features of the Taiwanese market are: (1) a hybrid board structure with " supervisors " as the designated monitors of the incumbent, (2) the mandatory...

This study examines the effects of the Taiwanese modified two-tier board of directors and family control on firm performance. Similar to its German origin, the Taiwanese system separates the monitoring role from the strategic planning role of the board. Using firm-level fixed-effects panel analysis, we find evidence that family-ties between the Tai...

We investigate cash holdings of firms from 15 European Union (EU) countries [12 European Monetary Union (EMU) countries that adopted a common currency, euro, and 3 non-EMU countries] from 1993 to 2002 using a dynamic panel data model. Unlike previous studies, we formally consider endogeneity of explanatory variables and show that it matters. Contra...

We compare the ex-dividend day stock returns and trading volume of foreign stocks that trade in U.S. markets as American Depository Receipts (ADRs) with the ex-day returns and volume of a matched sample of U.S. stocks. This experiment allows us to investigate whether differences in the way dividends are paid and/or foreign currency risk affect the...

This paper investigates whether the behavior of real and nominal foreign exchange rates as well as interest rates are governed by nonlinear dynamics; it also explores whether observed deviations from parity conditions exhibit nonlinear dependence. Standard statistical tests for randomness, such as autocorrelation tests, have low power against a lar...

This study presents evidence on the influence of the regulatory environment of host and home countries, on firm value, when the firm announces a foreign acquisition. The study analyzes the valuation effects on financial firms, based on the returns to shareholders of 120 bidders from 13 home countries acquiring across 20 host countries. Bidder share...

This study examines the impact of international acquisitions on the shareholder wealth of both acquiring and acquired firms, and compares it with that of domestic acquisitions. The results indicate significant differences—bidders in domestic acquisitions lose a statistically significant 0.39 percent, while bidders in international acquisitions do n...

This paper provides a survey on studies that analyze the macroeconomic effects of intellectual property rights (IPR). The first part of this paper introduces different patent policy instruments and reviews their effects on R&D and economic growth. This part also discusses the distortionary effects and distributional consequences of IPR protection a...

This study analyzes stock price reactions to listings of foreign stocks in the U.S. before and after the dismantling of the fixed exchange rate system resulting from the Smithsonian agreement of 1971. Listings during the fixed exchange rate regime had significantly greater abnormal returns than those during the floating exchange rate regime. The re...

This paper analyzes the direction and magnitude of changes in stock prices resulting from the announcement of various types of changes in senior corporate management over a twelve-year period. We find support for the view that instability resulting from executive succession adversely affects organizational performance. Furthermore, our results impl...

The issue of exposure management, a significant subset of international financial management, is closely intertwined with the notions of foreign exchange risk and exchange market efficiency. Since value is a function of risk, that makes an understanding of these notions germane to those who seek value in global markets. This study finds earlier att...

This paper develops a general equilibrium model where prices and foreign exchange rates are endogenous and based upon more fundamental determinants. Speculative behavior leading to position taking in claims on foreign risky commodities is explained. It is shown that in a multicurrency environment with less than complete markets and sequential tradi...

This study empirically evaluates the daily stock price behavior of thirty-one major foreign banks operating in the United States at the time of the passage of the International Banking Act of 1978. Statistically insignificant abnormal returns are observed during the months of debate over this legislation. However, negative and statistically signifi...

The present study re-examines the tax burden effects of reserve requirements on bank profitability. It differs from previous work in two ways: (1) changes in stock prices, rather than accounting data, are used to measure profitability effects; and (2) emphasis is placed on changes in reserve requirements, as opposed to their level. Regarding the la...

This study develops equilibrium yield relationships between otherwise similar dollar denominated Eurobonds and U.S. bonds with the use of supply and demand conditions and the standard arbitrage argument. It them empirically tests the hypothesis that no yield differentials exist between similar securities in these two markets. A matched pair sample...

This paper explores the influence of expectations of a significant subset of the foreign exchange market, viz., the U.S. commercial banks, on foreign exchange rates. For this purpose, conventional swap transaction was utilized in a refined framework to enable more accurate extraction of the U.S. commercial banks' expectations from their observed be...

This article reviews regulations and commercial banking structures in Mexico, Canada and the U.S., and examines the comparative operations of Canadian and Mexican bank affiliates in the U.S. vis-a-vis each other and also with U.S. commercial banks of comparable size serving the same markets. Results obtained regarding significant differences in the...

This paper explores the strong form efficiency of the pound sterling-U.S. dollar market by analyzing the ability of U.S. commercial banks to formulate superior expectations vis-a-vis the market in two ways. First, Stein's theory is employed to distinguish between shifts and disturbances in the exchange market equilibrium. Second, the swap transacti...

Typescript (photocopy). Thesis (Ph. D.)--Georgia State University, 1980. Includes bibliographical references (leaves 264-282).