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Operational efficiencies of a firm play a crucial role in determining the survival and growth of a firm, especially when the industry is going through a dynamic structural transformation owing to external changes. In this paper, we explore the effect of managerial and strategic parameters on the degree of operational efficiency achieved by a firm in the Indian pharmaceutical industry using data envelopment analysis (DEA). During the period 1992-2002, the relaxation of import restrictions and foreign direct investment, along with a major change in the regulatory norms, resulted in increased competition from firms with superior resources in this industry. We use non-parametric DEA models and parametric methods such as regression analysis to determine the factors that have contributed to the internal operational efficiencies of these firms. The findings indicate that domestic firms, most of which are controlled by familybased governance structures, enjoy higher efficiencies than affiliates of multinational pharmaceutical majors. After controlling for firm size and initial efficiency levels, we find that firms with higher levels of innovation through higher R&D investments and older establishments are associated with higher efficiencies, when compared with their less R&D intensive and younger counterparts, respectively.In this paper operational efficiencies are represented in monetary terms. Hence any increase/decrease in operational efficiencies denotes decrease/increase in costs.H. Saranga and B. V. Phani / Intl.

Rock's [1] theory ascertains information asymmetry as a primary reason to answer "Why New Issues are Underpriced?" Theoretical construct of this seminal work is based on information asymmetry between various classes of investors. Empirical manifestation of this theoretical explanation is based on considering different proxy measures to quantify the information asymmetry as perceived by various researchers over the past three decades. The growing IPO literature also explained underpricing with the help of agency theory, signaling, behavioural theories etc. Empirical research has identified various determinants of IPO underpricing. The influence of various factors predominantly depends upon country specific regulations, market microstructure and price discovery mechanism. Although many factors have justified the degree of underpricing, controlling for these factors does not completely eliminate the degree of under pricing. The justification of residual underpricing through these factors has limitations in terms of failure to completely explain the IPO underpricing. The paper reviews different factors presented in the extant literature that influence the price discovery mechanism of initial public offerings (IPO) in various economies. We conclude that the degree of underpricing is dynamic and various markets forces interact simultaneously in observing the variation in pricing the new equity issues. This paper points out the significance of regulatory framework in explaining the degree of IPO underpricing.

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Access to this document was granted through an Emerald subscription provided by emerald-srm:198285 [] For AuthorsIf you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to investigate commitment escalation tendencies and magnitude in groups of entrepreneurship-minded decision makers. Design/methodology/approach -The paper uses a software-based management simulation to expose 447 graduate business students in the USA and India to research stimuli under conditions that resemble important aspects of entrepreneurs' business environment, such as a focus on overall firm performance. Unlike most previous escalation research that studied individuals, the primary unit of analysis is a three-person group. Findings -The paper demonstrates a positive relationship between the groups' entrepreneurial intentions and escalation magnitude. The paper also finds a direct relationship between sunk costs and subsequent investment amounts, suggesting an additional route through which sunk costs may impact escalation behavior -anchoring and insufficient adjustment. Practical implications -The authors hope that the findings will stimulate further research on commitment escalation modalities and mechanisms among entrepreneurship-minded decision makers and provide impetus for efforts to develop effective debiasing strategies. Originality/value -The study addresses a long-standing gap in entrepreneurship research, by demonstrating a significant positive relationship between entrepreneurial intentions and escalation behaviors. Also noteworthy, the results are generated using a different research method (simulation) than the experimental approach used in most extant escalation research. As such, the exploration provides important triangulating evidence that is currently lacking from the rich escalation literature.