American Research Journal of Business and Management

Gerasimos G. Rompotis. PhD

This study examines the relationship of ESG risk score with the financial performance of 122 American banks for the year 2022. Cross-sectional regression analysis is applied. Financial performance is computed as the Return on Assets (ROA) and Return on Equity (ROE). The explanatory variables used are the ESG Risk Scores of banks calculated by Morningstar Sustainalytics, the size of banks, the leverage ratio, i.e., total liabilities to total assets, the liquidity ratio, i.e., current assets to current liabilities, the efficiency ratio, i.e., total revenue to total assets, and the revenue per employee. The results provide evidence of a negative relationship between financial performance and ESG risk score. On the other explanatory variables, size has no impact on performance. Interestingly enough, the impact of leverage on ROA is slightly negative but the impact on ROE is clearly positive. Liquidity is positively related to performance. The impact of efficiency and revenue per employee is positive too.

Lawan Ibrahim1*, Isyaka Mohammed Salisu, PhD2

This paper examined the effect of entrepreneurial orientation on business performance. The study reviewed several pieces of literature on the relationship between the of entrepreneurial orientation dimensions (proactiveness, innovativeness, and, risk-taking) to business performance. A conceptual model designed to depict the relationship. From the extensive review of the scholarly pieces of literature on entrepreneurial orientation and business performance, the findings revealed a positive, negative, and contradictory outcome on the variables which made generalization of the results in all sectors and content invalid and unreliable. Therefore a study is recommended to establish an equilibrium in the inconsistencies in findings and to provide a logical conclusion to the inconsistencies of the previous studies. The study provides a basis for an acceptable model, a conceptual framework is established to guide the study to an empirical research effect of entrepreneurial orientation on business performance.

Liane Biagini1, Regina Maria de Oliveira Leite2, Joaquim Filipe Ferraz Esteves de Araujo3 Débora Coutinho Paschoal Dourado4

The public ombudsman is understood as a democratic institute that promotes dialogue between users and the organization, responding to society’s complaints with a focus on improving public services. And, it can promote social control and social participation by carrying out this approach. However, the public ombudsman can face barriers imposed by the organization in which it operates — mainly because it is a communication channel that deals with sensitive matters, such as complaints of moral bullying at work. Through qualitative research and content analysis, this research aimed to identify which barriers can be imposed on Brazilian university public ombudsmen in dealing with workplace bullying. The results show that the investigated ombudsmen are faced with barriers in the academic environment that are the result of harmful conduct and practices by leaders and managers, such as lack of knowledge of the concepts of ombudsman and bullying at work, as well as the presence of corporatism. It is concluded that they need to fulfill their democratic role with excellence, have autonomy and make use of strategiesto reduce the unfavorable elements and thus be able to face bullying at work.

Dr. Jane Chepngeno Sang 

A major ingredient in most non-performing organizations is poor leadership. Blue ocean leadership (BOL) is a new style, which aims to achieve a leap in an organization’s leadership, quickly and at low cost, by engaging previously disengaged employees, leading to improved performance. However, a few studies have explored BOL in Kenya’s organizations. The aim of this study was to determine the relationship between BOL and organization performance (OP) in four selected companies on Nairobi Securities Exchange (NSE) and determine the moderating role of employee commitment (EC) on the relationship. Specifically, the study assessed the effect of BOS on organization performance and determined the moderating role of EC on the relationship. The study first assessed the companies’ current (‘as-is’) leadership canvases, developed alternative leadership states, and selected leadership profiles that could best unlock disengaged employees, which were validated against each company’s performance. The sample consisted of 144 employees from the four companies in Eldoret Town, selected from a target population of 224, by stratified random sampling. Data were collected using questionnaires and interview schedules. Findings showed a significant and positive effect of BOL (β = 0.298, p<0.0001) on OP. Companies which outperformed others had senior managers who delegated duties, removed bureaucratic bottlenecks and spent more time analyzing and espousing the company’s future. Middle managers in these companies coached, motivated and served their customers (junior employees), and not their bosses. Employee commitment was found to moderate the relationship between BOL and OP. The study concluded that BOL significantly improves employee commitment and engagement, leading to better OP. Thus, companies should implement BOL to improve their OP. 

Akim M. Rahman, Ph.D. 

Digital banking is an important product in today’s financial sector country-wise. Unlike in any other states in the US, Californians have higher but slow growth trends of digital financial transactions where the FDIC provision does not cover digital-banking transactions. Customers and probable customers here face pitfalls being it riskiness including psychological risk. Overcoming the dilemmas of perceived-risk factors, the inclusion of Voluntary Insurance as a new product in bank-led digital-banking service-market can ensure Californians to be cashless society soon. This new and increasing value is what will keep banks or business firms growing, which can ensure absolute risk-free digital banking services in California economy. Historical trends of economic growth of California certainly ratify that addition of a new legal product will improve economy beyond just immediate gratification of its consumers. Any new products and services are the lifeblood of a firm for running the operation smoothly. Without them, a firm withers on the vine and either it dies or is absorbed by another firm. The banking sector is no different here. So, the inclusion of the VI product in policy-design for effective digital-banking services in California-economy can ensure speedy growth trends of digital-transactions. Once the VI as a product is in place, it will spread from bankers to customers and its growth trend (S-curve) will capture the growth of revenue or productivity against time. This growth will be slow as the new product sets up itself but at some point, digital banking-users will begin to demand it. So, the product growth trends will increase rapidly, which will ensure a higher number of digital transactions than that are there today in the digital-banking service-market. Over time, it will ensure Californians to be cashless society soon, which will place California to be the number one in the US and beyond. The goal of this study is to bring these VI policy recommendations to policymakers and bank-management’s attention. 

Chandan Kumar1, D. Suganthi2 

This paper focuses on the emerging relationship between the new-age organised players and traditional retailers through the hybrid business models in India. The former connects the latter to consumers through both e-commerce and offline channels. The concern is the hegemonic tendency of the organised players to control the relationship. Based on the Competition Commission of India’s cases against the Indian e-commerce players, this paper highlights the unfair trading practices of new-age organised players in dictating contractual terms, exclusive promotion of their products and preferred vendors, creating entry barriers, and control over consumer preference data. Furthermore, this paper discusses the lacunae in the current competition legal framework, which fails to take cognizance of the anti-competitive behaviour of the existing organised players. Finally, it suggests that competition laws should ex-ante discourage potential anti competitive behaviour rather than ex-post action.

Amarendra Acharya1, Prakash A. Salvi2, Manbhanjan Mishra*3

In the backdrop of the events such as taper tantrum, demonetisation, Covid-19 etc, this paper examines whether financial markets in India are integrated with the overseas markets. The present study analyses the data on the stock index, government securities yield, corporate bond yield, treasury bond yield, commercial paper and certificates of deposit, etc, from 2010 onwards. The empirical result of the study indicates that, during the last decade, the Indian stock index, G-sec yield and corporate bond yield were having co-movement with their global counterparts. However, the co-movement was missing in case of the financial market segments such as Indian treasury bill, certificates of deposit (CD) and commercial paper (CP). Further, the co-movement of the Indian stock market with the US stock market increased during the bull phase of the Indian stock market, while co-movement of the Indian government securities market with the US security market increased during the phases when the Indian government security market witnessed higher yields. Further, the interaction between various markets in the domestic territory have remained intact despite the last decade being interspersed with taper tantrum, demonitisation and Covid -19.

Dr. Pramod Gupta 

An attempt is made in this article to analyse the text published in RBI Financial Stability Reports (FSRs) over the period June 2010 to December 2021 using text mining tools. We construct a Financial Stability Sentiment (FSS) Index by linking the FSR with a dictionary specially developed for capturing the sentiments published in FSRs. We find that the FSS index perfectly tracks stress episodes such as economic deceleration, Asset Quality Review (AQR) process and COVID 19 pandemic, i.e., during these periods, the value of the index increased significantly – signalling bloated stress in the financial system in India. Moreover, there is a significant negative correlation between the index and the market returns that consistently captures the large upswings and downswings in the former. Consequently, the FSS index is a reliable economic barometer as it is able to capture most of the events which had an impact on financial sector of the economy, while also having an impact on consumer perceptions.

Anshuman Kamila1, M. Sreeramulu2, Aastha3, Shahbaaz Khan4, Aniket Ranjan5

An attempt is made in this article to analyse the text published in RBI Financial Stability Reports (FSRs) over the period June 2010 to December 2021 using text mining tools. We construct a Financial Stability Sentiment (FSS) Index by linking the FSR with a dictionary specially developed for capturing the sentiments published in FSRs. We find that the FSS index perfectly tracks stress episodes such as economic deceleration, Asset Quality Review (AQR) process and COVID 19 pandemic, i.e., during these periods, the value of the index increased significantly – signalling bloated stress in the financial system in India. Moreover, there is a significant negative correlation between the index and the market returns that consistently captures the large upswings and downswings in the former. Consequently, the FSS index is a reliable economic barometer as it is able to capture most of the events which had an impact on financial sector of the economy, while also having an impact on consumer perceptions.

Emanuel Be1, Kamilaus K Oki2 

This study aims to analyze: 1) the effect of empowerment, social capital, the role of government on the participation of fishing housewives; 2) the influence of empowerment, social capital, the role of the government and the participation of fisherman housewives on welfare; 3) the influence of empowerment, social capital and the role of the government through the participation of fishing housewives on welfare. The population is housewives who have husbands as fishermen. Using the Slovin formula, 108 respondents were selected, using accidental sampling technique. Interviews and questionnaires were used as data collection methods. Data analysis techniques using SEM-PLS for quantitative data. The results of the analysis show that there is a significant influence between empowerment, social capital and the government’s role on the participation of fishing housewives and there is a positive and significant influence between empowerment, social capital, the role of government and the participation of fishermen’s IRT on the welfare of fishermen’s households.