Faculty Publications
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Item Geopolitical risk and corporate investment inefficiency: evidence from India(Journal of Accounting Literature, 2025-10-01) Yadav, Akash Singh; Yadav, Inder Sekhar; Wali Ullah, G.M.Purpose – Thisstudy investigatesthe influence of geopolitical risk on firm investment inefficiency and explore the moderating role of corporate governance on the above relationship using a dataset of 43,182 observations from Indian-listed firms between 2002 and 2023. Design/methodology/approach – The study employs pooled ordinary least squares regression models with firm and year fixed effects. Robustness tests include entropy balancing and alternative proxies, quantile regression and endogeneity checks via two-stage least squares and Oster (2019) omitted variables test. Findings – The results shows that heightened geopolitical risk significantly worsens investment inefficiency, increasing both overinvestment and underinvestment, while strong corporate governance mitigates these effects. Cross-sectional analysis shows the impact is more pronounced in firms with lower cash holdings, more irreversible investments, fewer financial constraints, those operating in industries with higher exposure to geopolitical risk and those in competitive industries. Practical implications – The study highlights the positive impact of geopolitical risk on investment inefficiency, emphasizing the need for financial support mechanisms such as subsidies and credit facilities. Firms should adopt proactive investment strategies while strengthening corporate governance, disclosure and transparency to reduce information asymmetry. Investors should prioritize firms with strong governance, and regulators must promote competition-friendly policies to ensure efficient capital allocation under high geopolitical risk. Originality/value – This study advances corporate finance literature by providing new evidence regarding the impact of geopolitical risk on investment inefficiency. It is among the first studies to show that strong corporate governance mitigates adverse effects of geopolitical risk. Additionally, it examines how cash holdings, irreversible investments, financial constraints and market competition shape the geopolitical risk–investment inefficiency relationship.Item Corporate sustainability practices: An interplay of uncertainty, geopolitical risk and competition(Journal of Environmental Management, 2025-03) Bhue, Rajesh; Gartia, Umakanta; Panda, Ajaya Kumar; Tiwari, Aviral KumarThe present study analyses the interplay between uncertainty and sustainability investment in the line of PMC (product market competition), and its impact on the firms' sustainable practices. Based on a sample of 2533 listed companies from 2011 to 2023, it was observed that uncertainty positively influences sustainable investment, and the PMC plays a moderating role in the case of G-20 countries. Furthermore, the research indicates that sustainable investment promotes long-term investment in G-20 countries during the study period and lessens the unfavorable outcome of uncertainty on a firm's value. We employed SGMM (System-generalized method of moments) to concern about the endogeneity issues and for robustness, which was consistent with the empirical results. The study's implications help investors, managers, and policymakers integrate sustainable investment practices with uncertainty alongside pushing sustainable development goals.Item Geopolitical risk and real estate stock crash(Finance Research Letters, 2025-06) Abakah, Emmanuel Joel Aikins; Abdullah, Mohammad; Akinsomi, Omokolade; Tiwari, Aviral KumarWe investigate the effect of geopolitical risk (GPR) on real estate stock crashes while accounting for the impact of cash holdings and financial constraints in this relationship. Using a dataset from 28 countries covering the period of 2000 to 2023 from 1805 firms, we document that geopolitical risk increases real estate stock price crash risk. Our result remains consistent using an alternate proxy of geopolitical risk and even after considering endogeneity concerns using 2SLS and Entropy balanced samples. Our result shows the negative impact of GPR is stronger for firms with high cash holdings and high financial constraints.Item Novel approaches to model decomposed oil shocks, geopolitical risk, clean and fossil fuel stocks(Borsa Istanbul Review, 2025-05) Dam, Mehmet Metin; Altıntaş, Halil; Tiwari, Aviral KumarThis study examines how oil supply, demand, and risk shocks, along with geopolitical risks, impact the performance of clean and fossil fuel stocks. Using daily data from March 2014 to January 2022, advanced methods like wavelet quantile correlation (WQC), cross-quantilogram (QC), and nonparametric causality-in-quantile (NPCQ) are applied. The results reveal significant volatility linkages between clean and fossil fuel stocks, with oil shocks and geopolitical risks influencing financial markets. Demand and risk shocks act as transmitters, while supply and geopolitical risks are receivers of spillovers. Clean energy stocks are net transmitters of spillovers, while fossil fuel stocks show mixed profiles. Fossil fuel stocks act as safe havens in the medium term, while clean energy stocks exhibit this in the long term. Geopolitical risks have little effect on clean energy stocks, indicating their resilience. The study highlights the importance of real-time monitoring for managing market fluctuations.