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1 – 10 of 28Muhammad Farooq, Imran Khan, Qadri Al Jabri and Muhammad Tahir Khan
The study hypothesized that the impact of board diversity on financial distress (FD) is not direct but rather mediated by the firm’s corporate social responsibility (CSR…
Abstract
Purpose
The study hypothesized that the impact of board diversity on financial distress (FD) is not direct but rather mediated by the firm’s corporate social responsibility (CSR) activities. Consequently, the purpose of this study is to examine the impact of CSR as a mediator in the board diversity–FD relationship.
Design/methodology/approach
The study examined six board diversity dimensions – age, gender, nationality, education and tenure in 81 nonfinancial Pakistan Stock Exchange (PSX)-listed firms from 2010 to 2021. The CSR engagement of the sample firms is evaluated using a multidimensional financial approach and the likelihood of FD is computed using Altman’s Z-score. The system-generalized method of moments estimator is used to meet the study objectives. In addition, several tests are run to determine the robustness of the study’s findings.
Findings
Based on the procedure for mediation analysis outlined by Baron and Kenny (1986), the authors found that CSR is significantly inversely associated with the likelihood of FD. Second, board diversity variables age, gender and national diversity were positively associated with CSR. Third, board age, gender and national diversity are significantly inversely related to FD. Finally, it was found that there is partial mediation between board age diversity and FD, whereas full mediation is shown between board age diversity and FD and between board nationality diversity and FD.
Practical implications
This study provides practical insights into PSX’s board diversity for companies, regulators and policymakers.
Originality/value
This research studies the connection between board diversity and FD. In addition, the current study extended the analysis by testing for the first time the mediating role of CSR in the diversity–distress relationship, particularly in the context of an emerging economy.
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Muhammad Farooq, Qadri Al-Jabri, Muhammad Tahir Khan, Muhamamad Akbar Ali Ansari and Rehan Bin Tariq
The present study aims to investigate the impact of corporate governance proxies by ownership structure and firm-specific characteristics, i.e. firm size, leverage, growth…
Abstract
Purpose
The present study aims to investigate the impact of corporate governance proxies by ownership structure and firm-specific characteristics, i.e. firm size, leverage, growth opportunities, previous year dividend, firm risk, profitability, and liquidity on dividend behavior of the Pakistan Stock Exchange (PSX) listed firms.
Design/methodology/approach
Final sample of the study consists of 140 PSX-listed firms. The study covers a period of six years, starting from 2015 to 2020. Dividend payout dummy, dividend payout ratio, and dividend yield were used to assess the dividend behavior of the sample firms. The appropriate regression procedures (logistic, probit, ordinary least square (OLS), and fixed effect regression) are used to test the study hypothesis. To check the robustness of the result, a system GMM estimation technique is also used in the present study.
Findings
The study reveals that institutional ownership, foreign ownership, and individual ownership have a significant positive whereas managerial ownership has a significant negative impact on the dividend decision of sample firms. Among firm-specific characteristics, it was found that liquidity, profitability, and the previous year's dividend were significantly positive, while growth opportunities were significantly inversely associated with dividend payout decisions of PSX-listed firms.
Practical implications
This study sheds light on the relationship between dividend policy, ownership structure, and firm-specific factors in the context of an emerging market like Pakistan. The study's findings have important implications for managers, minority shareholders, lawmakers, and investors looking for guidance on the dividend policy of publicly-traded non-financial firms.
Originality/value
The literature lacks studies that together analyze the ownership characteristics and firm-specific variables on dividend decisions, particularly in the context of developing economies. The current study aims to fill this gap.
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Hafiz Muhammad Muien, Sabariah Nordin and Bazeet Olayemi Badru
As the benefit of gender diversity continues to receive significant attention, a holistic investigation of its effect on corporate financial distress (CFD) is lacking. Therefore…
Abstract
Purpose
As the benefit of gender diversity continues to receive significant attention, a holistic investigation of its effect on corporate financial distress (CFD) is lacking. Therefore, this study examines the effects of board gender diversity, measured in different forms, such as the presence and proportion of female directors, family-affiliated female directors and the chief executive officer (CEO) gender, on CFD in Pakistan. The study also investigates the interacting effects of family-controlled (20 and 50% family-owned) companies on the association between board gender diversity and CFD.
Design/methodology/approach
The study applied the pooled cross-sectional logistic regression model to examine the effect of board gender diversity (presence and proportion of female directors, family-affiliated female directors and CEO gender) on CFD through a sample of 285 non-financial companies in Pakistan over the period of 2006–2017.
Findings
The results reveal that gender diversity on boards is significantly and negatively associated with CFD in Pakistan. In addition, when family ownership is 50% or more, the interacting effect of family control is found to be significant, while gender effects remain negative. The results suggest that female directors contribute to the long-term viability of companies, especially family-owned companies. Female directors are also found to be more prevalent in family-owned companies compared to their non-family counterparts.
Research limitations/implications
The findings imply that female directors may efficiently manage and control all functions necessary to guarantee the company's long-term prosperity. Similarly, gender effects can outweigh the detrimental impact of family control when female directors are in reasonable numbers and of high quality in the boardroom.
Practical implications
The practical relevance of the findings is that female directors play a significant role on the corporate board. Thus, it is a wakeup call for Pakistani companies to recognize the critical role and uniqueness of women on the corporate ladder. Family companies can also galvanize on the uniqueness of women to improve their governance structure.
Originality/value
This study adds to the literature on the benefits of gender diversity in family and non-family-owned companies. Specifically, this study applied multiple measures of gender diversity and family control in a single study. In addition, the study was conducted in a country that is ranked as the second worst country in the Global Gender Gap Index 2022, implying that investigating this type of research would go a long way towards changing the minds of corporate executives and regulators about the critical role that women can play in the economy.
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Syed Aarij Hasan, Afshan Naseem, Muzamil Mahmood, Zunaira Sajjad and Muhammad Zeeshan Mirza
Supervisor phubbing is an increasingly common behavior depicted by supervisors despite the significance of supervisor–subordinate interactions. This study explores the impact of…
Abstract
Purpose
Supervisor phubbing is an increasingly common behavior depicted by supervisors despite the significance of supervisor–subordinate interactions. This study explores the impact of this behavior on workplace incivility and workplace presenteeism and analyzes the mediating role of self-esteem and the moderating role of power distance.
Design/methodology/approach
Data were collected from employees belonging to IT sector. The research was cross-sectional in nature and the data were collected using a structured questionnaire.
Findings
The findings indicate a significant impact of supervisor phubbing on self-esteem, workplace incivility and workplace presenteeism. Additionally, results reveal the mediating role of self-esteem between supervisor phubbing and workplace presenteeism. However, the moderating effect of power distance on the relationship between supervisor phubbing and self-esteem was not supported.
Originality/value
The research contributes to the existing literature and theory, especially in the area of supervisor phubbing and communications management. The study suggests a need for comprehensive approach that involves both organizational policies and individual behavior change.
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This study aims to examine the impact of brand ethical behavior, specifically perceived brand ethicality, on corporate brand legitimacy in the context of halal cosmetics, by…
Abstract
Purpose
This study aims to examine the impact of brand ethical behavior, specifically perceived brand ethicality, on corporate brand legitimacy in the context of halal cosmetics, by considering perceived brand integrity as a mediating factor.
Design/methodology/approach
The study used a quantitative cross-sectional research design to gather data from 341 fast-moving consumer goods (FMCG) in Tanzania. The data was analyzed by using AMOS 21, using structural equation modeling techniques.
Findings
The findings indicated that perceived brand ethicality has a significant influence on corporate brand legitimacy through the mediation of perceived brand integrity.
Practical implications
The study emphasizes the significance of incorporating and clarifying Islamic laws as integral components of marketing strategies aimed at attracting conscientious customers of halal products. It recommends defining Islamic laws as societal values and norms and integrating them into various brand practices to showcase professionalism, ultimately fostering social acceptance and approval. The study presents valuable practical implications for managers and marketers of FMCG, assisting them in formulating policies and strategies that reflect societal values and norms.
Originality/value
This study represents a novel endeavor that explores the interplay between perceived brand ethicality, corporate brand legitimacy and perceived brand integrity in the context of halal products. It extends theoretical understanding by shedding light on the significance of Islamic laws as a foundation for establishing a competitive advantage. By offering and designing ethical practices, businesses can enhance their legitimacy among halal consumers, particularly in the domain of halal cosmetics.
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Munwar Hussain Pahi, Umair Ahmed, Sohel M. Imroz, Syed Mir Muhammad Shah and Irene Seok-Ching Yong
The purpose of this empirical research was to investigate the individual effects of three dimensions of flexible human resource management (HRM) practices – skill flexibility…
Abstract
Purpose
The purpose of this empirical research was to investigate the individual effects of three dimensions of flexible human resource management (HRM) practices – skill flexibility, behavioral flexibility and human practice flexibility on firm performance and to what extent these relationships are strengthened/weakened when there was the moderation of empowering leadership in small- and medium-sized enterprises (SMEs) of the Kingdom of Bahrain.
Design/methodology/approach
The data were collected from chief executive officers (CEOs) through a questionnaire survey method to test the hypothesized relationships. A final dataset of 315 valid responses was utilized for data analysis, and results were analyzed using the Smart partial least squares structural equation modeling (PLS-SEM) technique.
Findings
The findings revealed positive effects of skill flexibility, behavioral flexibility and human practice flexibility on firm performance. The moderating role of empowering leadership further strengthened the effects of employee skill flexibility and employee behavioral flexibility had on firm performance. However, empowering leadership did not pose any moderating effect on human practice flexibility and firm performance relationship.
Research limitations/implications
This paper offers implications for theories on HRM and leadership. It also provides valuable insights for organizations and leaders seeking to boost firm performance across SMEs.
Practical implications
This paper offers implications for theories on HRM and leadership and also contributes in the understanding of the modern managers.
Originality/value
This paper investigated the effects of flexible HRM practices on firm performance and the role of empowering leadership across SMEs in Bahrain. It also explored how the performance of SMEs can be improved using flexible HRM practices followed by the presence of empowering leadership.
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Muhammad Ali, Leong Choi-Meng, Eugene Cheng-Xi Aw, Chin-Hong Puah and Abdulkadir Barut
This study aims to examine the interconnectedness between investors' perceptions of assets and their behavioral factors with investment decisions during the COVID-19 pandemic in…
Abstract
Purpose
This study aims to examine the interconnectedness between investors' perceptions of assets and their behavioral factors with investment decisions during the COVID-19 pandemic in the real estate business in Pakistan. In this regard, this study predicted investment decisions using individuals’ perceptions of the asset (perceived asset quality, perceived asset price and perceived asset value [PAV]),and behavioral biases (overconfidence [OC], herding [HD], disposition effect [DE] and risk aversion [RA]).
Design/methodology/approach
This study used a survey-based instrument to gather a total of 189 usable samples. The sample data were analyzed using partial least square structural equation modeling.
Findings
The findings of this study indicated that PAV, OC and HD significantly predicted the investment decision, whereas DE and RA had an insignificant impact on investment decisions in the real estate business. In addition, this study found that PAV is the most important factor to predict investment decisions in real estate during the COVID-19 crisis.
Originality/value
The authors are certain that the study findings reinforce policy implications for regulators, policymakers and financial institutions. The study findings are also useful and relevant if the real estate sector experiences a crisis in the future.
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Mohammad Nisar Khattak, Moyassar Zuhair Al-Taie, Ifzal Ahmed and Noor Muhammad
This study aims to investigate the effect of servant leadership on employee organizational identification and career satisfaction through the mediating lens of…
Abstract
Purpose
This study aims to investigate the effect of servant leadership on employee organizational identification and career satisfaction through the mediating lens of leader-member-exchange (LMX). Furthermore, this study also examines whether perceived organizational support (POS) strengthens the positive effect of servant leadership on LMX and subsequently, on employee organizational identification and career satisfaction.
Design/methodology/approach
Survey data were collected from 314 respondents working in hotels in United States of America (USA). Structural equation modeling (SEM), hierarchical moderation analysis and bootstrapping were used to test the study hypotheses.
Findings
Servant leadership was found to positively influence employee organizational identification and career satisfaction. Further, analysis revealed that LMX partially mediated the positive relationship between servant leadership and employee career satisfaction and fully mediated the positive relationship between servant leadership and organizational identification. However, although POS moderated the indirect relationship between servant leadership and employee’ career satisfaction, it did not moderate the indirect relationships between servant leadership and organizational identification.
Practical implications
This study provides insight into the nexus of servant leadership and organizational support in hospitality industry to foster the employee organizational identification and career satisfaction which are extremely needed for competitive advantage in hotel industry.
Originality/value
This study addresses recent calls for future researchers to investigate the important of servant leadership in the hospitality industry.
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Muhammad Farrukh, Muhammad Rafiq, Ali Raza and Nabeel Younus Ansari
This study aims to examine the influence of team-level green human resource management practices (TGHRM) on team-level green creative behavior (TGCB) through team green…
Abstract
Purpose
This study aims to examine the influence of team-level green human resource management practices (TGHRM) on team-level green creative behavior (TGCB) through team green psychological climate (TGPC). Additionally, it delves into the moderating effects of ethical leadership (EL) and green culture (GC) on the relationships among team-level GHRM, TGPC and TGCB.
Design/methodology/approach
Using a cross-sectional design, data were gathered from hotel teams and were analyzed using the PROCESS model.
Findings
The results indicate that TGHRM significantly impacts TGCB via TGPC. Moreover, the study provides partial evidence supporting the moderating roles of EL and GC in the relationships between TGHRM, TGPC and TGCB.
Practical implications
These findings offer valuable insights for managers and practitioners. They highlight the potential to enhance TGCB by implementing GHRM practices, nurturing a TGPC and cultivating both EL and a GC within teams.
Originality/value
This research addresses a gap in the literature, focusing on the effects of TGHRM on TGCB and shedding light on the intertwined social and psychological processes. Further, it broadens the discourse by analyzing the moderating influence of EL and GC in the dynamics between TGHRM, TGPC and TGCB.
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Aiman Niazi, Muhammad Imran Qureshi, Mehwish Iftikhar and Asifa Obaid
In light of the widely acknowledged significance of GHRM practices, this study improves comprehension pertaining to GHRM practices and employee workplace outcome relationships…
Abstract
Purpose
In light of the widely acknowledged significance of GHRM practices, this study improves comprehension pertaining to GHRM practices and employee workplace outcome relationships. Drawing on the conservation of resource (COR) theory, the association between GHRM practices and employee workplace outcomes, namely green commitment and thriving at work, was explored, with a specific focus on the mediating role of organizational pride.
Design/methodology/approach
A quantitative research design was adopted, and data was collected through a multistage sampling technique, yielding a sample of 255 employees working in six textile manufacturing organizations in Pakistan, all of which held the ISO 14001 certification. The model was tested using Partial Least Square Structural Equation Modeling (PLS-SEM).
Findings
The findings of this study reveal a significant link between GHRM practices and organizational pride. Moreover, organizational pride was found to mediate the relationship between GHRM practices and thriving at work while partially mediating the relationship between GHRM practices and green commitment.
Research limitations/implications
The outcomes of this study have implications for organizations seeking to enhance sustainability and employee well-being by adopting GHRM practices. Specifically, fostering a sense of organizational pride can further enhance thriving at work and green commitment among employees.
Originality/value
The findings contribute to the existing literature by highlighting the positive impact of GHRM practices on employee workplace outcomes and the importance of organizational pride as a mediating mechanism.
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