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Article
Publication date: 3 February 2021

Farman Ali, Man Wang, Khalil Jebran and Syed Tauseef Ali

The purpose of this paper is to explore how multiple facets of board diversity influence technical efficiency (TE) and total factor productivity (TFP).

Abstract

Purpose

The purpose of this paper is to explore how multiple facets of board diversity influence technical efficiency (TE) and total factor productivity (TFP).

Design/methodology/approach

The authors measure board diversity in two dimensions: relation-related dimension (age and gender) and task-related dimension (tenure, education and expertise). The authors use a balanced panel data of 806 nonfinancial Chinese firms over the period 2009–2017. The authors use a two-stage approach for analysis. In the first stage, the authors use a non-parametric frontier approach to calculate the TE and factor productivity scores. In the second stage, the authors regressed these scores on board diversity attributes (relation-related diversity and task-related diversity).

Findings

By using tobit regression and two-step system GMM, the authors find that board diversity improves TE and TFP. The authors’ analyses illustrate that a higher diversity on corporate board (in terms of age, gender, tenure, education and expertise) positively influence firm efficiency.

Practical implications

The findings have important implications for policymakers. The findings suggest that regulators should devise policies to encourage board diversity. Because a diverse board can bring knowledge, skills, abilities, expertise and experience of diverse group members, which will ultimately enhance a firm’s efficiency. Especially, in the emerging markets (such as China), there is still a need for standard governance mechanisms; therefore, the authors suggest that policymakers should develop regulations and promote diversity of directors as one of the factors for improving the governance mechanisms, which will ultimately improve firms productivity.

Originality/value

Prior studies mostly considered only one dimension (such as gender) of diversity and, therefore, have overlooked how other dimensions influence firms. The authors consider several dimensions of diversity and quantify them into relation-related (age and gender) and task-related (tenure, education and expertise) attributes and show how they influence firms’ efficiency. To the best of the authors’ knowledge, this is the first study to comprehensively investigate how several facets of diversity influence a firm’s TE and TFP.

Details

Corporate Governance: The International Journal of Business in Society, vol. 21 no. 4
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 2 July 2020

Mohammad A.A Zaid, Man Wang, Sara T.F. Abuhijleh, Ayman Issa, Mohammed W.A. Saleh and Farman Ali

Motivated by the agency theory, this study aims to empirically examine the nexus between board attributes and a firm’s financing decisions of non-financial listed firms in…

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Abstract

Purpose

Motivated by the agency theory, this study aims to empirically examine the nexus between board attributes and a firm’s financing decisions of non-financial listed firms in Palestine and how the previous relationship is moderated and shaped by the level of gender diversity.

Design/methodology/approach

Multiple regression analysis on a panel data was used. Further, we applied three different approaches of static panel data “pooled OLS, fixed effect and random effect.” Fixed-effects estimator was selected as the optimal and most appropriate model. In addition, to control for the potential endogeneity problem and to profoundly analyze the study data, the authors perform the one-step system generalized method of moments (GMM) estimator. Dynamic panel GMM specification was superior in generating robust findings.

Findings

The findings clearly unveil that all explanatory variables in the study model have a significant influence on the firm’s financing decisions. Moreover, the results report that the impact of board size and board independence are more positive under conditions of a high level of gender diversity, whereas the influence of CEO duality on the firm’s leverage level turned from negative to positive. In a nutshell, gender diversity moderates the effect of board structure on a firm’s financing decisions.

Research limitations/implications

This study was restricted to one institutional context (Palestine); therefore, the results reflect the attributes of the Palestinian business environment. In this vein, it is possible to generate different findings in other countries, particularly in developed markets.

Practical implications

The findings of this study can draw responsible parties and policymakers’ attention in developing countries to introduce and contextualize new mechanisms that can lead to better monitoring process and help firms in attracting better resources and establishing an optimal capital structure. For instance, entities should mandate a minimum quota for the proportion of women incorporation in boardrooms.

Originality/value

This study provides empirical evidence on the moderating role of gender diversity on the effect of board structure on firm’s financing decisions, something that was predominantly neglected by the earlier studies and has not yet examined by ancestors. Thereby, to protrude nuanced understanding of this novel and unprecedented idea, this study thoroughly bridges this research gap and contributes practically and theoretically to the existing corporate governance–capital structure literature.

Details

Corporate Governance: The International Journal of Business in Society, vol. 20 no. 5
Type: Research Article
ISSN: 1472-0701

Keywords

Open Access
Article
Publication date: 11 December 2019

Syed Tauseef Ali, Zhen Yang, Zahid Sarwar and Farman Ali

In view of organizational inertia, with the occurrence of a major event, though resource rigidity minimizes, however simultaneously, it increases process rigidity, which…

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Abstract

Purpose

In view of organizational inertia, with the occurrence of a major event, though resource rigidity minimizes, however simultaneously, it increases process rigidity, which creates difficulties in motivating managers and dealing with the agency problem. Therefore, keeping in mind the high demand created by the China–Pakistan Economic Corridor and Naya Pakistan Housing Scheme in the cement sector of Pakistan, the purpose of this paper is to investigate the impact of corporate governance (CG) on the cost of equity (COE) in the cement sector, to deal with the problems surging during and after the completion of these projects and highlight further opportunities for the cement sector of Pakistan.

Design/methodology/approach

CG is a qualitative concept therefore, eight proxies have been used to measure it along with the two control variables. This study uses balance panel data of six years from 2012 to 2017, collected from 18 companies of the cement sector of Pakistan. Descriptive statistics have been used to describe the data, correlation matrix to see the nature of the relationship, and Pooled OLS as the estimation technique, while to analyze the data a statistical package 13 has been used. To measure the COE, the Capital Asset Pricing Model (CAPM) has been used.

Findings

Regression results suggest that block ownership, insider ownership and the board size are insignificant, while CEO tenure is negatively and significantly associated with the COE. Non-executive directors, independence and CEO duality are insignificant; however, diversity is positively and significantly associated with the COE. Moreover, the mean value of the COE is 8.22 percent for the cement sector, while the coefficient of determination of the model under study is 74 percent.

Research limitations/implications

This paper is based on the data from the cement sector of Pakistan only. Therefore, this is the reason that these results cannot be generalized on the whole economy of Pakistan.

Practical implications

This study helps in finding out the COE value specific to the cement sector, which will help this sector to evaluate the capital budgeting decision more precisely and accurately than before. Moreover, the association of diversity as positive, while independence as negative with the COE highlights a room for improvement in the implementation of CG codes by SECP. This study also helps to mitigate the impact of inertia, the after-effects of high demand, and managing the agency problem in the cement sector.

Originality/value

This is the first study using CG data collected just after the revised promulgation of CG codes in 2012, along with a wide range of eight proxies measuring CG and its impact on the COE in the cement sector.

Details

Asian Journal of Accounting Research, vol. 4 no. 2
Type: Research Article
ISSN: 2443-4175

Keywords

Article
Publication date: 3 August 2021

Shahzad Shabbir, Muhammad Adnan Ayub, Farman Ali Khan and Jeffrey Davis

Short-term motivation encompasses specific, challenging and attainable goals that develop in the limited timespan. On the other hand, long-term motivation indicates a sort…

Abstract

Purpose

Short-term motivation encompasses specific, challenging and attainable goals that develop in the limited timespan. On the other hand, long-term motivation indicates a sort of continuing commitment that is required to complete assigned task. As short-term motivational problems span for a limited period of time, such as a session, therefore, they need to be addressed in real time to keep the learner engaged in the learning process. Similarly, long-term learners’ motivation plays an equally important role to retain the learner in the long run and minimize the risk of dropout. Therefore, the purpose of this study is to incorporate a comprehensive learner motivation model that is based on short-term and long-term aspects of the learners' motivation. This approach enables Web-based educational systems to identify the real-time motivational state of the learner and provide personalized interventions to keep the learners engaged in learning process.

Design/methodology/approach

Recent research regarding personalized Web-based educational systems demonstrates learner’s motivation to be an essential component of the learning model. This is because of the fact that low motivation results in either students’ less engagement or complete drop out from the learning activities. A learner motivation model is considered to be a set of perceptions and beliefs that the system has developed about a learner. This includes both short-term and long-term motivations of leaners.

Findings

This study proposed a framework of a domain independent learners’ motivation model based on firm educational theories. The proposed framework consists of two modules. The primary module deals with real-time identification of motivation and logging off activities such as login, forum participation and adherence to assessment deadline. Secondary module maintains the profile of leaners associated with both short-term and long-term motivation. A study was conducted to verify the impact of learners’ motivation model and personalized interventional strategies based on proposed model, using Systematical Information Education Method assessment standards. The results show an increase in motivational index and the characteristics associated with motivation during the conducted study.

Originality/value

Motivational diagnosis is important for both traditional classrooms and Web-based education systems. It is one of the major elements that contribute in the success of the learning process. However, dropout rate among online students is very high, which leads to incorporate motivational elements in more personalized way because motivated students will retain the course until they successfully complete it. Hence, identifying learner’s motivation, updating learners’ motivation model based on this identification and providing personalized interventions are the key for the success of Web-based educational systems.

Article
Publication date: 26 January 2022

Muhammad Nouman, Ijaz Ahmad, Muhammad Fahad Siddiqi, Farman Ullah Khan, Mohammad Fayaz and Idrees Ali Shah

The financial policies of the modern world corporations and their investment decisions are generally considered as interrelated because the agency problems, associated…

Abstract

Purpose

The financial policies of the modern world corporations and their investment decisions are generally considered as interrelated because the agency problems, associated with the debt level and its maturity structure, give rise to incentives for overinvestment or underinvestment. The present study empirically investigates the linkage between debt maturity structure and firm investment in a financially constrained environment, using Pakistan as a case study, to determine how the institutional environment in which firms operate affect these decisions and their linkage.

Design/methodology/approach

The empirical analysis is carried in a panel data setting using panel regression models as the baseline methods. Moreover, generalized methods of moments (GMM) estimators are used, coupled with the instrumental variables approach, for robustness and improving the efficiency and consistency of estimates.

Findings

Results suggest that firms rely more on short financing in Pakistan. Thus, given the capital structure which is characterized by higher proportion of short-term financing, the higher level of leverage is less likely to cause underinvestment problem. However, the underinvestment problem do persists in the firms that have higher portion of long-term debt. These findings imply that the debt-overhang problem may persist even in the financially constrained environments where attractive investment opportunities are limited, and long-term financing is difficult to acquire.

Originality/value

This study contributes to the literature by revealing how corporate investment and financing decisions and their linkage is influenced by the institutional environment of the less developed countries which is characterized by underdeveloped financial markets, inefficient legal system and weak investor protection system.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 25 February 2020

Shahid Ali, Junrui Zhang, Muhammad Usman, Muhammad Kaleem Khan, Farman Ullah Khan and Muhammad Abubakkar Siddique

This study aims to investigate the question concerning whether tournament incentives motivate chief executive officers (CEOs) to be socially responsible.

Abstract

Purpose

This study aims to investigate the question concerning whether tournament incentives motivate chief executive officers (CEOs) to be socially responsible.

Design/methodology/approach

Data from all A-share Chinese companies listed on the Shanghai and Shenzhen stock exchanges for the period from 2010 to 2015 are used. To draw inferences from the data, ordinary least squares (OLS) regression and cluster OLS are used as a baseline methodology. To control for the possible issue of endogeneity, firm-fixed-effects regression, two-stage least squares regression and propensity score matching are used.

Findings

A reliable evidence is found that tournament incentives motivate CEOs to be more socially responsible. Additional analysis reveals that the positive effect of CEO tournament incentives on corporate social responsibility performance (CSRP) is more pronounced in state-owned firms than it is in non-state-owned firms. The study’s findings are consistent with tournament theory and the conventional wisdom hypothesis, which proposes that better incentives lead to competitiveness, which improves financial and social performance.

Practical implications

The study’s findings have implications for companies and regulators who wish to enhance CSRP by giving tournament incentives to top managers. Investment in social responsibility may reduce the conflict between executives and employees and improve the corporate culture.

Originality/value

This study contributes to the existing literature by providing the first evidence that CEOs’ tournament incentives play a vital role in CSRP. The study’s findings contribute to tournament theory.

Details

Managerial Auditing Journal, vol. 35 no. 5
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 17 August 2021

Muhammad Farooq, Amna Noor and Shoukat Ali

The purpose of this research is to look into the governance–performance relationship in the context of critical firm characteristics, such as firm size.

Abstract

Purpose

The purpose of this research is to look into the governance–performance relationship in the context of critical firm characteristics, such as firm size.

Design/methodology/approach

Based on total assets, sample firms were classified as small or large. The governance index, which is based on 29 governance provisions covering the audit committee, board committee, ownership and compensation structure of the respective firm, measures governance quality among sample firms. A higher governance index indicates a higher level of governance quality and vice versa. Accounting and market value measures are used to determine firm profitability. The authors used the two-stage least square (2SLS) method of estimation of the model to eliminate the simultaneous equation bias.

Findings

Corporate governance (CG) appears to have a positive impact on accounting return and market indices (Tobin’s Q), but it has little impact on return on equity. In terms of firm size, larger companies profited more from better governance implementation than smaller firms that lacked these principles, thus improving CG. The findings indicate that small businesses should improve their governance mechanisms to reap the benefits of CG in terms of increased profitability.

Research limitations/implications

There are certain drawbacks to this research. First, the authors omitted qualitative aspects of CG from the CG index, such as the board’s decision-making process, directors’ perceptions of the board’s position and directors’ age and qualifications. Such a qualitative component will improve the governance index in the future while building the governance index. Second, as the current study only looks at the nonfinancial sector, caution should be exercised before applying the findings to the entire population.

Practical implications

The findings show that companies that follow good governance standards have better accounting and market efficiency than those that do not. As a result, good governance practices can help firms in developing countries improve their performance. Academic researchers, regulators, investors, lenders and practitioners can find the findings useful in establishing a true relationship between firm performance and CG practices in Pakistan.

Originality/value

The relationship between governance and profitability in the context of firm size is examined in this research. Firms with varying resources and ability to implement CG codes have varying effects on profitability. To the authors’ knowledge, there was a gap in the literature that addressed this topic in the local context.

Details

Corporate Governance: The International Journal of Business in Society, vol. 22 no. 1
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 8 January 2018

Yannick Djoumessi, Victor Afari-Sefa, Cyrille Bergaly Kamdem and Jean-Claude Bidogeza

The purpose of this paper is to examine the efficiency of vegetable farmers within the tree-crop based rainforest agro-ecological zone in Southwest region of Cameroon.

Abstract

Purpose

The purpose of this paper is to examine the efficiency of vegetable farmers within the tree-crop based rainforest agro-ecological zone in Southwest region of Cameroon.

Design/methodology/approach

The non-parametric data envelopment analysis method was used to evaluate technical and scale efficiencies while the Tobit model was used to identify factors affecting efficiency of vegetable production.

Findings

An econometric analysis result indicates that family size, education and extension service have significant impact on both technical and scale efficiencies, whereas credit service has significant impact on scale efficiency.

Practical implications

Future agricultural policies could include measures to improve the capacity of farmers to efficiently use existing resources.

Social implications

The study highlighted that encouraging more people to engage in farm labor and facilitating smallholder access to microcredit could render vegetable farmers more efficient.

Originality/value

In Cameroon, only a few studies have been conducted on technical efficiency. These encompass mainly cash and food crops. To the best of our knowledge, no single study has measured technical efficiency of vegetable farmers in forest-based farming of Cameroon.

Details

International Journal of Social Economics, vol. 45 no. 1
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 28 March 2022

Ahmad Albqowr, Malek Alsharairi and Abdelrahim Alsoussi

The purpose of this paper is to analyse and classify the literature that contributed to three questions, namely, what are the benefits of big data analytics (BDA) in the…

Abstract

Purpose

The purpose of this paper is to analyse and classify the literature that contributed to three questions, namely, what are the benefits of big data analytics (BDA) in the field of supply chain management (SCM) and logistics, what are the challenges in BDA applications in the field of SCM and logistics and what are the determinants of successful applications of BDA in the field of SCM and logistics.

Design/methodology/approach

This paper conducts a systematic literature review (SLR) to analyse the findings of 44 selected papers published in the period from 2016 to 2020, in the area of BDA and its impact on SCM. The designed protocol is composed of 14 steps in total, following Tranfeld (2003). The selected research papers are categorized into four themes.

Findings

This paper identifies sets of benefits to be gained from the use of BDA in SCM, including benefits in data analytics capabilities, operational efficiency of logistical operations and supply chain/logistics sustainability and agility. It also documents challenges to be addressed in this application, and determinants of successful implementation.

Research limitations/implications

The scope of the paper is limited to the related literature published until the beginning of Corona Virus (COVID) pandemic. Therefore, it does not cover the literature published since the COVID pandemic.

Originality/value

This paper contributes to the academic research by providing a roadmap for future empirical work into this field of study by summarising the findings of the recent work conducted to investigate the uses of BDA in SCM and logistics. Specifically, this paper culminates in a summary of the most relevant benefits, challenges and determinants discussed in recent research. As the field of BDA remains a newly established field with little practical application in SCM and logistics, this paper contributes by highlighting the most important developments in contemporary literature practical applications.

Details

VINE Journal of Information and Knowledge Management Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-5891

Keywords

Article
Publication date: 12 August 2021

Sven Maricic, Daniela Kovacevic Pavicic, Barbara Ptacnik and Romina Prziklas Druzeta

This study aims to develop a specialized and economically feasible educational model using a combination of conventional approach and additive technology with a precision…

Abstract

Purpose

This study aims to develop a specialized and economically feasible educational model using a combination of conventional approach and additive technology with a precision that proves to be sufficient for educational use. With the use of computer-aided design/computer-aided manufacturing models in educational stages, the possibility of infectious diseases transmission can be significantly reduced.

Design/methodology/approach

The proposed process involves the planning and development of specialized anatomical three-dimensional (3D) models and associated structures using omnipresent additive technologies. A short survey was conducted among dental students about their knowledge of applying additive technologies in dental medicine and their desire to implement such technologies into existing curricula.

Findings

The results revealed how an educational 3D model can be developed by optimizing the mesh parameters to reduce the total number of elements while maintaining the quality of the geometric structure. The survey results demonstrated that the willingness to adapt to new technologies is increasing (p < 0.001) among students with a higher level of education. A series of recent studies have indicated that the lack of knowledge and the current skill gap remain the most significant barriers to the wider adoption of additive manufacturing.

Practical implications

An economically feasible, realistic anatomical educational model in the field of dental medicine was established. Additive technology is a key pillar of new specialized-knowledge digital skills for the enhancement of dental training.

Originality/value

The novelty of this study is the introduction of a 3D technology for promoting an economically feasible model, without compromising the quality of dental education.

Details

Rapid Prototyping Journal, vol. 27 no. 9
Type: Research Article
ISSN: 1355-2546

Keywords

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