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Since the change in the editorial board of the Indian Institute of Management journal Decision, this is the second regular issue and the last one in 2018. I feel very excited to take charge as an EIC of this old legacy. The issue 4 of Volume 45 brings together a wide range of research articles.
The Research articles cover a broad spectrum of research issues usual of Decision ranging from organizational theory, CSR, macroeconomics, finance and behavioral theory based on experimental study.
The first article on “Personality characteristics and the process of start-up: the moderating role of institutional environment” by M. Kannadhasan et al. investigates the relationship between entrepreneur’s personality characteristics, i.e., need for achievement and internal locus of control, with the process of start-up. Also, this study assesses the interaction effects of institutional environment on the relationship between risk propensity and the process of start-ups. The study conducts a primary survey from 478 entrepreneurs in India. Findings of the study indicate the importance of personal characteristics in the process of start-up and also emphasize how the institutional environment enhances the level of the process of start-up.
The second article by Deepak Subba and Sanjeeb Kumar title “Employees’ responses to corporate social responsibility: a study among the employees of banking industry in India” focuses on how organizational events, i.e., corporate social responsibility (CSR) develops positive emotions among employees through compassion at workplace in banking industry of India. A total of 241 samples were collected on the employees of banking industry in India. Findings indicated that CSR influences positive emotions through compassion at workplace, in addition to the direct effect of CSR on positive emotions. This study sheds new light on both CSR and positive emotions.
The paper “Informational efficiency of sovereign bond markets of India and China: evidence from Toda and Yamamoto Granger causality” by Shariq Ahmad Bhat analyzes the causal relationship between macroeconomic indicators and sovereign bond indices of India and China. The main purpose of this research study is to answer the question how sovereign yields of bond indices in India and China reflect economic conditions and whether sovereign bond market of India and China is informationally efficient. A Bivariate analysis is performed on monthly data from January 2000 to December 2016, and four macroeconomic indicators are examined such as interest rate, exchange rate, gross domestic product and fiscal deficit using Toda and Yamamoto approach. It was found that macroeconomic variables such as interest rate, exchange rate, GDP and fiscal deficit are significant in predicting changes in sovereign bond yields of India and China across all maturities considered for the study. Therefore, policy makers can make use of these macroeconomic variables to fluctuate and control sovereign bond yields in both India and China.
The fourth article on “DOMESTIC INTERMARKET LINKAGES: MEASURING DYNAMIC RETURN AND VOLATILITY CONNECTEDNESS AMONG INDIAN FINANCIAL MARKETS” by NEHARIKA SOBTI focuses on the transmission of shocks within a country (India) due to shocks among its different financial markets analyzed using Diebold and Yilmaz (2014). An attempt has been made to analyze return and volatility connectedness among five financial markets in India: stock, bond, money, foreign exchange and commodity markets from 2007 to 2017. The study reveals that stock markets and foreign exchange markets are the largest transmitter of shock to return. However, volatility spillover analyses reveal that commodity market is the largest net volatility transmitter to other asset markets. Dynamic connectedness measures highlights that Indian asset markets are less vulnerable to internal shocks than external shocks.
The last article by Pravesh Kumar Padamwaret al. on “Range effect on extremeness aversion” examines the range effect, which is the impact of the increase in the perceived distance between the target alternative and the new extreme alternative, on extremeness aversion. To examine the research question, an experimental study is conducted in a classroom setting using four product categories. The results show that extremeness aversion is the highest when the distance between the new extreme alternative and the target alternative is such that the target alternative is placed exactly at the center in the choice set. The findings of this paper support the reference-dependent model, which is based on the principle of loss aversion.
I would also like to acknowledge and thank all the anonymous reviewers who helped the Editorial Board putting together the four issues of 2018. In our endeavor to strengthen the journal, we welcome your support and feedback. May I wish you a very happy new year from editor’s desk?