Search results

This study aims to investigate the factors that determine the customer adoption of Islamic banking in Pakistan.

This paper aims to use a sample of 540 Islamic bank customers located in the biggest city of Pakistan (Karachi). This study is based on the diffusion of innovation (DOI) theory and analyzed the role of five attributes (compatibility, relative advantage, complexity, observability and trialability) along with the consumer awareness about the customer adoption of Islamic banking. Additionally, the present research also considers Islamic banking as a new idea (innovation) in Pakistan under the framework of DOI theoretical assumptions. The exploratory and confirmatory factor analyses are applied to the sample data. The theoretical framework is then tested using structural equation modeling.

The findings of the study revealed that all five attributes of the DOI theory are positively and significantly related to the customer adoption of Islamic banking. The customer awareness also proved its importance in the hypothesized model by representing a positive and significant relationship.

The present study provides a useful guideline for the Islamic bank managers and the academicians to better understand the customer adoption of Islamic banking.

The unstable money demand function over the recent decades may explain the unsatisfactory performance of the exchange rate model. Numerous studies have shown that Divisia money serves as a better variable for a stable money demand function. In this study, Divisia money is used as an alternative money supply in MYR/USD exchange rate determination. This study finds that Divisia money differential, real income differential, relative short-term interest rate and real stock prices affect the MYR/USD exchange rate in the long run. The major implication of this study is that policy-makers could monitor the MYR/USD exchange rate via the money supplies following the principle of Divisia monetary aggregate, which assigns higher weightage to more frequently traded monetary assets.

The purpose of this paper is to investigate whether real estate companies manipulate their earnings through the brokerage fee across ownership expropriation or not.

This study considers Kuala Lumpur Stock Exchange listed real estate firms to investigate how the brokerage fee in the real estate industry might affect the earnings management of firms across its ownership expropriation. Using annual report data, the authors investigate the associations over a panel for the period 2008−2012. Robust panel regression is used to divulge the probability values with reference by probit regression.

Overall, the results show that high brokerage fees would drive more events of earnings management and that, generally, the ownership concentration among Malaysian real estate firms significantly affects the earnings management of the firms.

This study shows that firm profitability and brokerage fees enhance the probability of firm’s earnings management. A low brokerage fee would reflect low revenue to the company. Therefore, management would opt to manipulate earnings in order to overstate earnings, which garners more interest from investors.

Real estate values in Malaysia have climbed steadily over the years due to a combination of reasons giving companies a higher brokerage fee. Earnings management has become a big issue for property investors. The study demonstrates the relationship between earnings management and brokerage fee across ownership expropriation which can be considered by shareholders in their own strategic planning and investors in their own investing.

The purpose of this paper is to determine the factors influencing customer adoption toward takaful products in Pakistan.

The study used five attributes of diffusion innovation theory (DOI), namely, relative advantage, compatibility, trialability, observability and complexity. Furthermore, the authors introduced two additional constructs, namely, consumer awareness and religiosity to analyze the adoption behavior of customers. A total of 365 questionnaires were distributed among the participants of the study. The survey was conducted in the Karachi city where the respondents were the existing and potential users of takaful products. The theoretical model of DOI theory was tested using structural equation modeling.

The findings report that complexity has a negative impact on the adoption of takaful, whereas relative advantage, compatibility, trialability, observability, religiosity and consumer awareness shows a positive and significant influence.

It is a noteworthy point that past literature is quite limited to investigate the determinants of consumer intentions to adopt takaful products. Based on this argument, the authors build the study to provide a scope and coverage in the field of Islamic insurance. The authors also expect that the research will encourage and provide a venue for forthcoming studies to help policy makers and academicians in this emerging business.

The purpose of this paper is to investigate the connection between ethics and profitability by examining the association between published reports on white-collar crime and the share-price performance of the Malaysian-listed companies. This study aims to examine the role of white-collar crime in Malaysian-listed companies on its stock-price reaction.

Following prior research, even study methodology is used to exploit the stock-price reaction on the white-collar crime announcement. The daily bases of average abnormal returns (AARs) and cumulative average abnormal returns (CAARs) with an event window of 90 days prior to and after the announcements are determined. This study uses public announcement data of white-collar crimes from Malaysian Securities Commission from 1996 to 2013.

The finding indicates that an announcement of a white-collar crime has a negative abnormal return on the share price. As a result, the market does not react efficiently toward the information released regarding the incidence of a white-collar crime.

This study contributes to the managerial decision theory, where managers should be able to see a definite connection between unethical behavior and their firm’s stock. The stockholders and policymakers should find this information important in pressing for greater corporate and managerial accountability.

Unlike prior research, this paper investigates the stock-price performance due to white-collar crime announcement in the Malaysian context by using complete data set of announcement from 1996 to 2013.

This paper aims to investigate the factors affecting intentions to select Islamic credit cards in Pakistan by using the theory of reasoned action (TRA) model. In general, bank customers are aware of credit card facility, but the leading factors to select Islamic credit cards are particularly unexplored. Due to this fact, the study examined the effect of subjective norm (SN) and attitude (ATT) with the inclusion of new construct, namely, perceived financial cost (PFC) to predict the intention of customers about the Islamic credit card in Pakistan.

Sample data were conveniently drawn from the bank customers with the help of a self-administered survey based questionnaire, which was consisted over five-point Likert scale. The study uses a sample of 492 bank customers located in the biggest city of Pakistan. Out of these responses, only 466 responses were used in the analysis, while the remaining responses were ignored due to missing data and incomplete responses. The data were analyzed through factor and regression analysis.

Findings from regression analysis suggest that SN and ATT show positive and significant impact on intentions to select an Islamic credit card, while PFC has a negative impact on intentions to select Islamic credit cards. Moreover, SN was found to be the most influential factor to predict the selection of Islamic credit card.

This study has some practical implications for the academicians and Islamic bank managers. Through this research, bank managers can educate their customers about Islamic credit and financial products. Not only this, they should develop a strategy for the awareness of Islamic banking products through social networking and other marketing modes. On the other side, this study laid a foundation for future researchers to explore additional predictors of Islamic credit card. Their empirical work will provide a help to benefit and understand customers’ financial knowledge.

Islamic credit facility is entirely new in Pakistan and lacking with empirical support. Therefore, this investigation contributes to the existing body of knowledge by providing a comprehensive explanation on the Islamic credit card service in Pakistan.

This study aims to investigate the intention of using mobile payment (m-payment) services in Sarawak, Malaysia.

A total of 194 online payment users were selected to respond to the structured questionnaire. The partial least squares-structural equation modelling (PLS-SEM) was used to analyse the data by assessing the measurement and model.

Perceived usefulness (PU) and perceived ease of use mediated the relationship between perceived compatibility (PC) and the intention to use the mobile payment for mobile network operators’ services.

The analysis provides insights that PC is considered as a significant determinant for mobile payment of mobile network operators’ services.

The operators can consider factors such as PC in the design of their mobile applications and the potential to expand the m-payment services to others e-wallet such as Sarawak e-wallet. The model possesses medium prediction power, which suggests that other variables such as perceived security and personal innovativeness also can be used to predict the usage behaviour of mobile payment for the mobile network services.

The present study contributes to the m-payment users’ behaviour intention literature by investigating the mobile-based predictors of using m-payment technology in an emerging digital economy state in Sarawak, Malaysia. This study also extends the knowledge of technology acceptance model by introducing the mediation effect of PU and ease of use between the mobile-based predictors and m-payment intention.

The purpose of this study is to examine the effect of foreign aid (FA) on corruption in selected Asian countries (Pakistan, India, Srilanka and Bangladesh) using the panel data from 2000 to 2014.

The author used Levin-Lin-Chu and Im-Pesaran-Shin panel unit root tests to check the stationary properties of the variables. The Pedroni’s and Kao panel cointegration approach was applied to analyze the variable’s long-run relationship. The author used panel dynamic ordinary least squares (PDOLS) and fully modified ordinary least squares (FMOLS) framework to estimate the coefficients of cointegrating vectors. Additionally, the panel granger causality test was performed to check the causal relationship between the variables.

The results from PDOLS and FMOLS indicate that FA has a significant negative impact on the level of corruption. This infers that the foreign assistance decrease the level of corruption perception index, hence, more corruption in the country.

Overall, the study fulfills the need to understand the aid-corruption nexus, particularly in the case of the Asian region.

Local foods from the perspective of tourism play a significant role to attract tourists. Surprisingly, empirical evidence on food tourism is quite scarce. The purpose of this paper is to develop and investigate a conceptual framework on tourist satisfaction, loyalty and word of mouth (WOM) to select local foods in Pakistan.

The study uses a quantitative approach while convenience (non-probability) sampling is used to collect a sample of 286 final responses using a survey-based questionnaire. The study employed exploratory factor analysis and confirmatory factor analysis to stabilize the factor structure. The conceptual model is then tested under the assumptions of structural equation modeling.

The findings indicate that food quality, perceived environmental quality, perceived value and service quality has a significant impact on the tourist’s satisfaction. However, interpersonal interaction quality shows an insignificant influence on satisfaction. Moreover, satisfaction has a significant impact on loyalty while loyalty further shows a significant effect on tourist WOM. Overall, the authors found satisfaction and loyalty are the major contributors to the hypothesized model.

The conceptual framework and study findings will support practitioners and researchers to understand the factors that influence a tourist’s selection of local foods. Additionally, the study provides a useful policy to gain long-term economic benefits for the tourism sector in Pakistan.

To the authors’ best knowledge, this study is the first attempt to explore WOM behavior in tourism research focusing on the critical role of satisfaction and loyalty. The authors are certain that the findings will contribute significantly to the existing body of knowledge.

This paper aims to explore the impact of liquidity risk, credit risk, funding risk and corruption on bank stability of the banking system in Pakistan.

The empirical analysis is confined to 24 retail banks, which include 5 Islamic and 19 conventional banks during the period of 2007-2015.

The findings of this study suggest that bank size, liquidity risk, funding risk and corruption exert a positive impact on bank stability. Additionally, the authors find a negative relationship between credit risk and bank stability.

As per the knowledge of the authors, the present research is the first attempt that discusses the issues of bank stability related to risk and corruption faced by the banking system.