COMMU NIQUE - iimraipur.ac.in · The welcome speech by Professor Bharat Bhasker, Director, IIM Raipur, focused on the importance of operating in an un-bounded and irrational environment

C OM M U N I Q U E

Indian Institute of Management Raipur’s Newsletter

Insights about Neurofinance“The worst enemy of the investor is most likely himself.”

- Benjamin Graham

Extending to the views of traditional finance, the behavioral fi-nance attempts to understand how an individual makes decision under certainty as well as uncertainty. Studies in finance have doc-umented facts about individual decisions that are made based on the emotion, not by facts and figures. Academia and industry have tried to reveal the secrets by drawing the knowledge from sociology and cogni-tive-psychology. The behavioral finance explains why the deviations occurs in rational decision-making. The deviations occur as individual is prone to various biases, such as, mental accounting, loss aversion, self-attribution, overconfidence, representativeness, anchoring, regret aversion, gambler fallacy, ambiguity, availability bias, and so on. However, the behavior-al finance is unable to answer the question of how these deviations occurs. In simple words, what drives an individual to make such de-cision and why does one act in a particular way and decided in a certain way. Addressing the question, social scientist explored the new approach to understand the function of brain while one makes decisions. During the decision making process, there is a chemical and electrical process in the brain. The

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scientist attempts to understand the function of the brain by mapping these two processes, which paves the path of emergence of new field in finance i.e. neuro-finance. It deals with the autonomies of the brain and the function of the brain that could be observed which gives a better understanding of the deviations in decision-making.

As a professional or investors, everyone attempts to make a better and smarter decision. However, many a times we fail to make so. For example, when one visits the super-market to buy items, sometimes with more choices one gets confused and often ends up with wrong choice. In addition, you might not have thought of buying some brand/product, which you may have bought. It is because the brand that you come across continuously goes to your subconscious mind and influence you to buy it. However, if you visit to a small shop, you will make a right one as limited number of choices are there. You may not be influenced by various brands as the small shop doesn’t display it the way super-maker does. Let us super impose this situation into the investment context. As an investment advisor, you tend to follow more number of stocks. You are overloaded with more information. Instead, if s/he follows a limited number of stocks (i.e. set of stocks), you may make better decision. In addition, you should not have influenced with reputation of the companies. Neuro-finance says that you make a better decision while you have limited choices. Similarly, you make smarter and effective decisions when you do not attach with the name of companies. If you understand this, you may avoid emotional decisions and thereby save yourself from the financial losses.

To conclude, the traditional finance presumes the investors’ decisions are rational. The presumption does hold in reality as investors’ decision irrational. Though behavioral finance provides the reasons behind their irrational decision making, it fails to address the issue of how these deviations occurs. It paves the path of neuro-finance. It is important for an individual to understand these biases and how these biases occur. Understanding this phenomenon, one could make the smarter decisions and enhance the outcome of the decisions.

-Prof. M. KannadhasanAssociate Professor

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In Inner Pages

TEDx

Management Development Programs

Prayaas-2.0

Vigilance Awareness Week

Swachhta Hi Seva

Launchpad 2017 National Winners at Intaglio

Chhattisgarh Foundation Day Celebration

Faculty Publications

Awards and Recognitions

IIM Raipur in Media

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TEDx

The welcome speech by Professor Bharat Bhasker, Director, IIM Raipur, focused on the importance of operating in an un-bounded and irrational environment. Speaking about the event, he said, “The world today is powered by those who have unleashed the power of their brains, who can imagine something beyond what everyone can, who can think beyond normal dimensions”.

Other key Speakers were Mr. Arvind Chenji, Mr. Achal Rangaswamy, Ms. Ninja Singh, Mr. Zeeshan Ayyub, Ms. Koyal Rana, Mr. Gajendra Singh, Ms. Bistriti Poddar, Mr. Divya Prakash Dubey, Mr. Vivek Mandapalli.

There was also an interactive session in which the students called for volunteers from the crowd for various activities like push-ups, singing and mimicry. There was also a TEDx selfie booth where many people took photos and uploaded them on social media.

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Management Development Programs (MDP) at IIM Raipur

5 days “General Management Program” for Rashtriya Ispat Nigam Limited was organized during September, 2017. The Pro-gram provided a holistic view of leadership, integrated practical knowledge and personal awareness to help the participants improve their analytical skills and build greater self-confidence.

6 days ‘Advance Leadership Program’ was organized in November, 2017 for NMDC Ltd to propagate and inculcate fresh thinking, knowledge enhancement, leadership, planning and other behavioral aspects. The objective of the program was to enable the participants to enhance their role as decision maker and understand the implications of finance, economics and strategy on analysis and planning.


In December, 2017 ‘Achieving Managerial Effectiveness’ Program of 2 days was organized for the executives of Reliance Industries Limited Shahdol, that focused on upgrading their knowledge and professional capabilities in all areas affecting their work and career.

IIM Raipur also organized a 7 day ‘Chief Minister Good Governance Fellowship Program’ in November, 2017 for Chhattisgarh Infotech Promotion Society. The Fellowship Program was directed towards addressing successful implementation of high priority schemes of the State Government.

IIM Raipur also organized 1st ‘Professional Development Training’ under TEQIP - III in December 2017. The ob-jectives of the program were highlighting the importance of world class technical education, identifying the gaps and lacunae in the present system, processes and infrastructure and evolving the benchmarks for the delivery of education and resources management.


Prayaas-2.0: IIM Raipur organized marathon for the cause, “Beti Bachao, Beti Padhao”IIM Raipur successfully organized the second edi-tion of its flagship Marathon event Prayaas 2.0 on 19th November 2017. The theme for the run this year was ‘Beti Bachao, Beti Padhao’ with the objec-tive to create awareness regarding the importance of equal rights and opportunities for the girl child.

The chief guests included popular Bollywood ac-tress Mugdha Godse, widely known for her role in the National award winning movie Fashion, Ace Ar-chers Rahul Banerjee, Commonwealth gold medal-ist (2010) and his sister Dola Banerjee, the second woman archer to be honored with the Arjuna award and Prof. Bharat Bhasker, Director of IIM Raipur.

Various dignitaries graced the occasion includ-ing Shri Pramod Dubey, Mayor; Shri Om Prakash Choudhary, collector & DM; Shrimati Ramshila Sahu, minister for women and child welfare and Shri Sanjay Alung, IAS officer.

Vigilance Awareness Week 2017 was observed in Indian Institute of Management Raipur from 30th October to 4th Novem-ber, 2017 in accordance with Central Vigilance Commission directions with full dedication and enthusiasm. The theme of focus decided by the Central Vigilance Commission is “My Vision - Corruption Free India”.

The various activities were conducted to celebrate the Vigilance Awareness Week in Indian Institute of Management Raipur which included Integrity Pledge, Quiz Competition, Debate Competition, and Knowledge Session.

Vigilance Awareness Week


Swachhta Hi SevaOn occasion of the culture ministry’s ‘Swachhta Hi Seva’ campaign organized nationwide, IIM Raipur observed ‘Swachhta hi Seva’ from 15th September to 02nd October 2017. With a focus of spreading awareness about the need and importance of clean-liness, IIM Raipur conducted a series of events during the week. Students and Teachers took participation in these events with great vigor. Various events un-der the Programme were Village Adoption Program (On 22rd September 2017), Prakriti – Tree Planta-tion Event, Essay Competition, Cleanliness Drive and Sanitary Good Practices and Awareness by Kartavya Club, Lake Cleaning Drive.

Launchpad 2017 National Winners at Intaglio

IIM Raipur team has won the national event, Launchpad 2017 which is the flagship business plan competition of In-taglio - IIM Calcutta’s International Business Summit. The event was held in various rounds from online quiz and sim-ulation round involving various aspects of venture creation and had participation across all premier B-Schools. Top 8 teams were selected for the final campus round which in-volved presentation of your business idea and evaluating aspects like innovation, feasibility, scalability and finan-cials.

IIM Calcutta’s International Business Summit

‘Swachhta Hi Seva’ being a step towards the larger goal of eco-friendly society and sustainable development, the entire event was a success for IIM Raipur.


Chhattisgarh Foundation Day Celebration

To celebrate the success of the talents of Chhattisgarh and to spread awareness about social issues prevailing in the nation, Prayaas – the marathon team of Indian Institute of Management Raipur celebrated Chhattisgarh Foun-dation Day on 01-11-2017 in its campus.

The event was graced by Dr. Sanjay Alung, Director Social Welfare Department, Govt. of Chhattisgarh, Mr Sharad Jha, General Manager of NABARD, Mrs Sadhana Sharma - Women Achiever, India 2016, Mr. Pramod Sahu – Paint-er and Sand Artist, Mr Satish Bhuwalke & Sachin Bhuwalke – Founders of Bunch of Fools and Mr Priyank Patel – Founder of Teafe Nukkad.


Abstract: Although public speaking anxiety (PSA) is the most commonly experienced type of anxiety, the effect of mindfulness-based interventions on PSA is not firmly established. To shed light on this relationship, the present study proposes a model examining the me-diating effect of self-esteem in explaining this link. The data for the present study were collected from 227 executives pursuing a 2-year management education program. Public speaking being an essential part of this program, the participants voluntarily completed

Kumar, M., Kalakbandi, V., Prashar, S., & Parashar, A. (2017). Overcoming the effect of low self-esteem on public speaking anxiety with mindfulness-based interventions. DECISION, 44(4), 287-296

Prof. Sanjeev Prashar Professor

Faculty Publications

the Mindful Attention Awareness Scale, Rosenberg Self-Esteem Scale and Personal Report of Public Speaking Anx-iety. Based on a quantitative approach, the study demonstrates that the effect of mindfulness-based interventions on public speaking anxiety could be better understood by taking into account the mediating variable—self-esteem. The study concludes by discussing conceptual contributions, limitations and future research avenues.

Abstract: The paper investigates the influence of store ambiance factors like music and light, sales personnel, dis-play and colours, and instore crowd, impulse buying tendency and urge to buy on impulse buying. In the process, this study also validates the scales of these select variables in Indian context. The work has been divided into three

Parsad, C., Prashar, S., & Tata, V. S. (2017). Understanding nature of store ambiance and individual impulse buying tendency on impulsive purchasing behaviour: an emerging market perspective. DECISION, 44(4), 297-311.

Abstract: Measuring performance of microfinance institutions (MFIs) is challenging as MFIs must achieve the twin objectives of outreach and sustainability. We propose a new measure to capture the performance of MFIs by placing their twin achievements in a 2 × 2 grid of a classification matrix. To make a dichotomous classification, MFIs that meet both their twin objectives are classified as ‘1’ and MFIs who could not meet their dual objectives simultaneously are designated as ‘0’. Six classifiers are applied to analyze the operating and financial characteristics of MFIs that can offer a predictive modeling solution in achieving their objectives and the results of the classifiers are comprehended using technique for order preference by similarity to ideal solution to

Chattopadhyay, M., & Mitra, S. K. (2017). Applicability and effectiveness of classi-fications models for achieving the twin objectives of growth and outreach of mi-crofinance institutions. Computational and Mathematical Organization Theory, 23(4), 451-474.

Prof. Manojit Chattopadhyay

identify an appropriate classifier based on ranking of measures of performance. Out of six classifiers applied in the study, kernel lab-support vector machines achieved highest accuracy and lowest classification error rate that discriminates the best achievement of the MFIs’ twin objective. MFIs can use both these steps to identify whether they are on the right path to attaining their multiple objectives from their operating characteristics.

Assistant Professor

Abstract: Corporate dividend policy has been an area of concern in financial literature for quite a long time. Substantial research has been carried out on dividend poli-cy leading to the emergence of various theories. Majority of this research has been carried out with respect to developed countries. There are only a limited number of empirical investigations on the dividend policy of companies in emerging economies such as India. Identifying and understanding the key factors that motivate the man-agers to distribute dividends is important for investors. The study analyses the deter-

Prof. M Kannadhasan

minants of dividend policy of manufacturing companies in India using panel data. Financial leverage, profitability, and firm size determine the dividend policy of the firm. Growth of the firm has an effect on dividend policy in the short run. To best of the knowledge, no study has done on this topic using Panel ARDL in Indian context.

Associate Professor

Kannadhasan, M., Aramvalarthan S., Balasubramanian, P., & Aishwarya Gopika (2017). Determinants of Dividend Policy of Indian Manufacturing Companies: Panel Autoregressive Distributed Lag Analysis. Academy of Accounting and Financial Studies Journal, 21(2), 1-12.


Awards and RecognitionProf. Parikshit Charan, faculty member at Indian Institute of Management Raipur in the Operation Management Area was awarded the ‘Bharat Vikas Award’ in the field of Supply Chain Management and Operations Strategy. The award was presented at the National Seminar on “Diversity of Culture and Environment” hosted by the Institute of Self Reliance in Bhubaneshwar on 19th November 2017.

parts—the study scales were developed and tested in the Indian context, followed by undertaking of test–retest and establishment of predictive validities in the second and third parts, respectively. The results reveal a positive relationship of shoppers’ impulse buying tendency and urge to buy with impulse buying. Also, two of the store-re-lated environment factors—sales personnel and display and colour schema—have influence on impulsive buying among shoppers. However, contrary to the finding of earlier studies, the present paper noted no role of instore crowd and music and light in triggering and encouraging such behaviour. This contradiction in the findings of this paper is major contribution to the existing literature on antecedents influencing impulsive buying.

Abstract: Mall managers tend to believe that purchasing decisions are made inside the shopping malls. These decisions, however, are influenced by various antecedent factors. This implies that shoppers look beyond the basic chore of shopping and experience while shopping plays a vital role. To attract the attention of shoppers, mall developers make huge investments in mall promotion and ambient factors in order to enhance the shopping expe-rience. As the Indian shoppers’ euphoria about shopping malls gets toned down with time, mall managers need to focus on something more substantive. Such fundamental benefits can be offered to shoppers only if mall managers know what is more relevant for the shoppers visiting the malls. Past studies have identified a number of factors such as ambience, physical infrastructure, convenience, safety, and marketing activities. This research posits that a more optimal and focused approach in mall management requires identification of relative significance of various influencing factors. This way, mall managers would be able to offer the most meaningful benefits to shoppers at a very optimal level of investment. Once shoppers get what they value the most, they are expected to be more loyal to the shopping mall.

Despite the development of various forecasting techniques, predicting mall loyalty has remained under-explored in marketing literature. This article addresses the gap by using neural network model to predict shoppers’ loyalty towards a particular mall. To gain more insights from the model, the authors have also identified relative signifi-cance of the factors impacting shoppers’ mall selection.

This study establishes that mall shoppers value ‘convenience’ as the most influencing factor in their selection of malls. This factor alone garners one-third of the total weightage among the five factors, which reflects that signif-icance of convenience is 66 per cent more than what is expected in a scenario when all determinants contribute equally. This strongly indicates that Indian mall shoppers are more utilitarian than hedonic.

Prashar, S., Singh, H., Parsad, C., & Vijay, T. S. (2017). Predicting Indian Shoppers’ Malls Loyalty Behaviour. Vikalpa, 42(4), 234-250.


IIM Raipur in Media

Central Chronicle, 14th Oct 2017, p. 16

Dainik Bhasker, 16th Oct. 2017, p.22


Navbharat, 16th Oct 2017, p.3 (Rajdhani)

Patrika, 16th Oct 2017, p. 15


Dainik Bhasker, 16th Oct. 2017, p.22

The Times of India, 16th Oct 2017, p.2 Naidunia, 3rd Nov 2017, p.17


Patrika, 05th Nov 2017, p. 14

The Pioneer, 4th Nov 2017, p. 4


Naiduniya, 7th Nov 2017, p.11

The Times of India, 7th Nov 2017, p.2

Dainik Bhasker, 7th Nov. 2017, p.15


Haribhoomi, 7th Nov 2017, p.18

The Hitavada, 8th Nov 2017


Naidunia, 9th Nov 2017, p.13

Naidunia, 20th Nov 2017, p.15


Dainik Bhaskar, 23rd Nov 2017, p.17

The Hitavada, 2nd Dec 2017, P.4 (City Line) Dainik Bhaskar, 25th Nov 2017, p. 17

Navbharat, 5th Dec 2017, p. 7(Rajdhani)


Dainik bhasker, 15th Dec 2017, p.17

Central Chronicle, 06th Dec 2017, p. 16

Navbharat, 15th Dec 2017, p.6(Rajdhani)

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COMMU NIQUE - iimraipur.ac.in · The welcome speech by Professor Bharat Bhasker, Director, IIM Raipur, focused on the importance of operating in an un-bounded and irrational environment