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This paper examines the sustainability of the current account deficit (CAD) and validity of the intertemporal budget constraint of India for the period of 1980 to 2019. The cointegration results show that exports and imports are not cointegrated and the current account (CA) series is not mean reverting during the study period. Therefore, the results refute the sustainability of CAD and the validity of the intertemporal budget constraint in the Indian context. Furthermore, the study also emphasised the testing of the disaggregated CA and found that while the goods account is not sustainable, the services account found to be sustainable in the long run. Our findings thus indicate the potential for aggregation bias to have an impact on the overall CA sustainability results. Therefore, policies that help in achieving self‐sufficiency on the one hand and export promotion in goods on the other may eventually contribute to CA sustainability. [ABSTRACT FROM AUTHOR]

A thrust on insurance‐financed health systems may reduce Out‐of‐pocket health spending. But health insurance penetration among Indian elderly is abysmally low. In this context, the paper intends to examine the factors affecting demand for various types of insurances among Indian elderly. Data were drawn from 71st round (2014–15) "Key Consumption: Health" household survey data collected by National Sample Survey Organization (NSSO), Government of India. A total number of 27,245 older adults were selected for this study. In addition to basic descriptive statistics, we employ logistic regression models to conduct the econometric analysis. Socioeconomic, health‐related and contextual predictors are considered in this study. The results show that the probability of health insurance coverage among elderly significantly depends on income, education, disease types, caste, family size, and most importantly, social relationships. The underprivileged groups have higher likelihood to be covered by government‐funded insurance, while the older people with higher income and education, having spouses and less number of children, and residing in urban areas have a higher likelihood of purchasing private health insurance. The study identified the factors responsible for low demand for health insurance among elderly. The study suggests the expansion of private insurance network, especially, in the underserved rural areas, along with generating financial awareness among the elderly. The study also suggests an inclusive model of health insurance demand, which may be adopted by future empirical studies to find out the significant factors affecting health insurance demand. [ABSTRACT FROM AUTHOR]

This study examines whether investing in R&D reduces the impact of exogenous shocks like the COVID‐19 on stock market performance and accounting performance of manufacturing firms in India. For the sample of listed manufacturing firms, the paper finds that the firms engaged in R&D activities had lower negative cumulative abnormal return than those firms that did not invest in R&D in the pre‐pandemic period using multiple event windows. The result suggests that R&D investments can lower value erosion for the shareholders during a severe crisis period. Further, using a difference‐in‐difference fixed effects model, the study finds that manufacturing firms engaged in R&D activities in the pre‐pandemic period exhibited higher return on sales and growth of total income during the pandemic quarter vis‐à‐vis the non‐R&D firms. The favorable accounting performance indicates the possibility of firm‐level R&D being associated with the firm's ability to adjust its functioning during a crisis, thereby reducing the effect of the crisis. Finally, the study documents that government intervention to reduce the spread of the virus had a differential impact on firms based on their industry of operation. The findings have implications for investors, corporate managers, and policymakers in India. [ABSTRACT FROM AUTHOR]

The present study aims to assess employee emotional responses of organizations undergoing Mergers and Acquisitions and middle‐level manager role in managing these emotional responses in the post‐acquisition phase. The study is empirical in which a total of 215 responses from middle managers, involved in six Mergers and Acquisitions, were considered. Data were collected using a structured questionnaire containing standard scales of employee emotions during change, and middle manager role tested in other change contexts. The psychometric properties of the measures are established before testing the hypotheses. The results indicated that middle managers involvement in the strategy could enhance their commitment, which can reduce resistance to change and smoother integration. The results highlighted the importance of leveraging the middle manager role, given the post‐merger phase's criticality to achieve the desired synergies. One of the fundamental strengths of the paper is the rigors undertaken in selecting the companies representing an apt radical change context to test the theory of emotional balancing. The application of the concept of emotional balancing in the radical change context of Mergers and Acquisitions and its empirical validation is an original contribution to the field of knowledge in change management. [ABSTRACT FROM AUTHOR]

The current study provides empirical evidence on how Indian Accounting Standards (Ind‐AS hereinafter) adoption has affected earnings management (EM hereinafter) in India. The study uses the Beneish Model and Modified Jones model to detect EM. The sample of the study comprises 240 companies listed in the S&P BSE MidSmallCap index for the period 2013–2019. The results of the Modified Jones model reveal that Ind‐AS have no significant effect on EM. However, the Beneish model shows that all ratios except leverage index have a significant relationship with EM after Ind‐AS adoption. Nine industries out of 28 sample industries are suspectable to indulge in manipulating financial statements. The ratio of manipulators to nonmanipulators has grown after Ind‐AS adoption. The paper adds to the literature by examining the impact of new accounting standards on EM in an emerging economy. The findings of the study would be relevant to the public accounting bodies, regulators, accounting professionals, and the public at large. [ABSTRACT FROM AUTHOR]