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This study aims to explore the moderating role of cynicism about change in the positive relationship between authentic leadership and employee commitment to change.

This study used an exploratory research design with deductive approach to invite responses of doctors, nurses and para medical staff of public sector district hospitals, set to be privatized, on structured close-ended questionnaires. Data gathered from four hospitals chosen because they were undergoing restructuring that facilitated the testing of our propositions were analyzed through structural equation modeling using AMOS. A total of 271 usable responses (response rate of 65 per cent) were analyzed. Interaction and simple slope tests were applied to test moderating effects.

Results indicate that authentic leadership is positively related to commitment to change. Cynicism about change moderated this positive relationship such that a high level of authentic leadership has a stronger impact on commitment to change when cynicism is low rather than when cynicism is high.

Results show that in Pakistani hospitals undergoing restructuring, leaders who use authentic leadership will have followers who are more committed to enacting the planned changes, but this effect is magnified if followers are not cynical about the change. Thus, regulators of public sector hospitals may benefit from this study by developing authenticity in hospital leaders to mitigate cynicism about and enhance their commitment to change.

This study is the first which has explored relationships among cynicism about change, authentic leadership and commitment to change in a privatization context of Pakistan. Findings should be tested in other cultural contexts to determine generalizability.

The purpose of this paper is to investigate the impact of diversification, corporate governance and capital regulations on bank risk-taking in Asian emerging economies.

The authors applied the generalized method of moments to analyze a sample of 116 listed banks of ten Asian emerging economies for the years 2010–2018.

The authors found that diversification, board size, CEO duality and board independence, block holders and capital regulations significantly affect bank risk-taking. In particular, nontraditional income sources such as noninterest income and adoption of diversification strategies minimize bank risk-taking.

It is expected that the outcomes of this study can be used by banks in Asian emerging economies that seek to reduce risk-taking by managing the diversification of their income streams and managing the impacts of capital regulation and implementing sound corporate governance features in monitoring their operations. This study suggests practical risk minimizing strategies for banks. First is the sourcing of nontraditional income and adoption of diversification strategies. Second, maintaining nonexecutive directors on the board would enhance monitoring of business activities. Third, maintaining deposit insurance would reduce bank’s risk. Government provides insurance to depositors to motivate them to deposit their funds into the banks. This, in return, facilitates banks to overcome risk. However, banks need to be cautious of any increase in capital ratio, as channeling funds into risky investments would increase risk.

This study is the first to investigate the impacts of corporate governance, diversification and regulation on bank’s risk-taking in a cross-country setting of ten Asian emerging economies.

Economic risk plays a vital role in firm's cash holdings. We aim to determine the impact of economic risk on the firm's cash holdings.

The data is collected from the DataStream from 2002 to 2018, which covers 552 listed firms in the manufacturing sector of Pakistan, Sri Lanka, India and Bangladesh. We apply a two-step dynamic panel estimation to analyze the results.

We use the variance of inflation and variance of interest rate as proxies of economic risk. Our results show that variance of inflation has a significant and negative effect while the variance of interest rate has a significant and positive effect on firms' cash holdings in selected countries. Furthermore, we find economic risk negatively affects the firm's cash holdings in the country-wise analysis. Firms should maintain a reasonable amount of cash reserves to handle uncertain situations.

This study may provide insights to financial decision-makers of a firm for better cash management according the economic conditions of the country.

The authors examine the impact of asymmetric information on firm's financing decisions, the feedback effect of changes in capital structure on the level of asymmetric information, and the speed of adjustments in capital structure on its target leverage.

The authors extract the data on 280 non-financial firms listed in the Pakistan Stock Exchange (PSX) from the DataStream. The authors implement the generalized method of moments (GMM), complemented by the fixed effect model (FEM) to estimate the model coefficients.

The authors find that asymmetric information significantly affects the financing decisions; and that on average, firms adjust 26% of the total debt toward their target capital structure. The negative effect from the difference between the observed and target changes in leverage on asymmetric information confirms that capital structure changes act as a signal for future profitability and helps the management to lower its level of asymmetric information.

The findings offer fresh insight into the effect of asymmetric information on financing decisions, as well as the speed of adjustment of capital structure toward its target leverage, in the context of the firms working in emerging markets like Pakistan. To the authors’ best knowledge, this is the first study to investigate the impact of asymmetric information on financing decisions that incorporate firm's age, size and the global financial crises 2007–2008. The authors construct an asymmetric information index using both accounting and finance measures of asymmetry.

Earnings management (EM) plays a vital role in risk management. This paper aims to investigate the impact of real earning management (REM) on credit risk.

This paper measures the credit risk by the expected default frequency of Kealhofer, McQuown and Vasicek model. This paper uses data from 2011 to 2020 of Pakistani manufacturing listed firms. This paper applies the fixed effect to analyze the results and generalized methods of moments to handle the heterogeneity issue.

This paper finds that the impact of REM on corporate credit risk is positive and significant and that of sales manipulation is negative and significant. This paper also reports similar outcomes of the robustness test using dynamic panel regression.

The findings of this study may help managers to modify the EM strategy to minimize corporate credit risk. Furthermore, the findings of this study are important for investors to enhance their understanding of firms’ accounting information, REM activities and cash flow patterns. It further suggests the manager should consider credit risk as an important factor while practicing REM.

Islamic Banking has been in the limelight since the recession of 2008. Although around for a long time, it is enjoying a renaissance of sorts. This case provides an introduction.

EMBA and/or MBA introduction to banking, senior semester undergraduate, specialization in Islamic Banking.

This case is written in the form of an interview with Meezan Bank, one of the leading financial institutions in the Islamic banking sector. It is based on primary as well as secondary data obtained via interviews and documentary analysis.

This is an analytical case and not a decision-making one. The main theme of the case revolves around analysing what Islamic banking is, the challenges that Meezan has faced, the pros and cons of doing business this way and the future issues it can face.

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CSS 7: Management Science.

This chapter provides a comprehensive investigation of the literature on sustainability reporting in Islamic banks using a content analysis of 200 English language articles published between 2000 and 2023. The data were collected from the Web of Science (WOS) database and analyzed using Bibliometrix in R software. This chapter addresses the trends of the most influential authors, institutions, countries, and research hotspots. This chapter fills one of the gaps in sustainability reporting literature, setting up a statistical description of the principal features of sustainable Islamic banking research and carrying out an analysis of its knowledge structure via bibliometric analysis. This chapter found that the number of articles on sustainability reporting in Islamic banks has increased over time; however, it is concentrated on a few core sources and authors, mostly related to Islamic finance, accounting, and ethics, as well as sustainability and social responsibility. The analysis of the co-authorship network shows a limited degree of collaboration between researchers from different clusters. The most productive and collaborative countries are Malaysia, the United Kingdom, and Pakistan, reflecting their well-developed and regulated Islamic banking industries that follow sustainability guidelines and frameworks. Moreover, the co-word analysis identifies 11 clusters and 43 keywords that represent the main topics and themes in the field, such as corporate governance, performance, disclosure, and risk. This chapter suggests some directions for future research and action on sustainability reporting in Islamic banks. This chapter contributes to the literature on sustainability in Islamic banking and the UN 2030 Agenda for Sustainable Development.

This study aims to study the impact of corporate governance (CG) versus ethical investment on the firm performance. It takes into account the firms of Bangladesh, India, and Pakistan for the purpose of the study. A composite variable of CG index and environmental, social, and governance (ESG) index is used to test the impact on the firm performance. Separate country wise and overall analysis is obtained. Regression analysis is used to obtain the results. Two measures of performance are used, one is return on assets (ROA) and other is Tobin Q. The findings of the study reveal that there is an impact of corporate governance index (CGI) on firm performance (overall and country wise) whereas ethical investment (EI) has an impact on firm performance when tested overall and no impact when checked for country wise results. The results further show that on country level, increase in CG measures may lead to positive results, but at the macro level, it may lower the performance. On the other hand, at the micro level, ethical finance may not show its impact; however, at the macro level, it has an impact. The study has implications for the investors and policymakers.

Implementing the 17 Sustainable Development Goals (SDGs) unarguably demands huge financial investments. However, the United Nations has acknowledged the huge financial gap militating against the implementation of the SDGs worldwide, leading experts to question the possibility of complete implementation of the goals by their terminal dateline of 2030. While the bulk of the finance currently outlaid on the SDGs comes from traditional sources including foreign direct investments (FDIs), there is the need to focus more attention on developing and exploiting impact investments that are more suitable for financing development programmes and projects. In this chapter, the SDG implementation profiles of the 12 Arab West Asia countries concerning the five most targeted SDGs were evaluated and sustainable finance issues were discussed. Secondary data were retrieved from World Bank's DataBank. The data were descriptively analyzed. Based on the profiles generated, debt relief is put forward as a possible impact investment mechanism suitable for funding the SDGs. Specifically, this chapter recommends that outright cancellation of debts based on the debt-for-SGD swap could serve as some of the impact investments needed to boost the global drive for a developed, peaceful, and just world.