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Article
Publication date: 2 February 2023

Md Noman Hossain and Md Nazmul Hasan Bhuyan

The extant literature provides evidence that single CEOs are less risk-averse. Building on the theory of risk aversion, the authors argue that the risk aversion trait arising from…

Abstract

Purpose

The extant literature provides evidence that single CEOs are less risk-averse. Building on the theory of risk aversion, the authors argue that the risk aversion trait arising from CEO’s marital status partially explains capital allocation efficiency. The paper aims to examine the association between CEO marital status and capital allocation efficiency.

Design/methodology/approach

The primary sample includes 9,671 observations from 1,264 US firms. The authors apply multivariate regression and a series of endogeneity tests to examine the association between CEO marital status and capital allocation efficiency.

Findings

Single-CEO firms have higher capital allocation inefficiency than those with married CEOs. The findings continue to hold after a series of endogeneity tests such as propensity score matching, change analysis and instrumental variable regression analysis and are robust to alternative proxies for capital allocation inefficiency. The capital allocation inefficiency in single-CEO firms arises from overinvestment but not underinvestment, and corporate risk-taking channels the effect.

Research limitations/implications

The study is limited to the effect of CEO marital status, not CEO marital quality.

Practical implications

The findings imply that besides information asymmetry and agency conflicts, CEO marital status should receive special attention for capital allocation efficiency. Also, marital status influences the CEOs’ commitment to the general good of society, affecting the potential conflict of interest with different stakeholders from inefficient capital allocation.

Originality/value

This study extends corporate finance literature on CEO marital status by providing novel evidence on the effect of single CEOs on capital allocation efficiency. The authors conclude that CEOs’ personality traits, such as marital status, matter in corporate policy choices.

Details

International Journal of Managerial Finance, vol. 19 no. 5
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 26 January 2023

Md. Mahmudul Alam, Muhammad Nazmul Hoque and Ruhaini Muda

The Maqāṣid (objective) hierarchy is a triple-tiered conceptualisation of individual and social needs that is grounded in the five objectives of Sharīʿah (Islamic Law)…

Abstract

Purpose

The Maqāṣid (objective) hierarchy is a triple-tiered conceptualisation of individual and social needs that is grounded in the five objectives of Sharīʿah (Islamic Law). Managerialism is the ideological representation of human interaction based on managerial doctrines and practices. This paper aims to explore the tension between the Maqāṣid hierarchy and managerialism by evaluating the Sharīʿah requirements in the Islamic Financial Services Act (IFSA) 2013 of Malaysia from the Maqāṣid al-Sharīʿah perspective.

Design/methodology/approach

This qualitative study uses an inductive approach to review the sources of Sharīʿah and classical literature of Islamic jurists to present Sharīʿah rulings on managerialism and Maqāṣid al-Sharīʿah.

Findings

The Maqāṣid hierarchy promotes a vision of human life that is the opposite of managerialism. In the case of IFSA 2013, the Maqāṣid hierarchy, which is supposed to be the bedrock for Islamic finance, is replaced by a managerial hierarchy closer to Maslow’s hierarchy than it is to Imam Shatibi’s concept of human life. A process of fitting the Maqāṣid hierarchy into a narrow managerial mould occurs in IFSA 2013, meaning that many of the unique aspects of the Maqāṣid al-Sharīʿah are lost.

Social implications

This study will assist Sharīʿah scholars, policymakers and Islamic financial institutions to develop the financial system and to implement the Maqāṣid al-Sharīʿah to improve macro policy and shaping Islamic institutions.

Originality/value

This is a pioneer study that develops a bridge between the Islamic Maqāṣid and conventional managerial hierarchies, which will encourage academics and practitioners to enrich the literature by conducting more in-depth studies on this topic.

Details

Journal of Islamic Accounting and Business Research, vol. 14 no. 8
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 14 March 2024

Hasibul Islam, Lalmi Soumia, Masud Rana, Jhansi Bharathi Madavarapu and Shimanto Saha

This study analyzed the relationship between mobile financial services (MFS) usage and customer satisfaction with MFS in Bangladesh, considering perception, purpose of use and…

Abstract

Purpose

This study analyzed the relationship between mobile financial services (MFS) usage and customer satisfaction with MFS in Bangladesh, considering perception, purpose of use and technical challenges as the primary factors influencing customer satisfaction with MFS. The aim is to determine the factors most influencing the use of MFS.

Design/methodology/approach

Data were collected from 400 MFS users through a structured web survey using snowball sampling that is consistent with the nature of MFS users who are difficult to identify or locate. Structural equation modeling (SEM) was used to analyze the data and evaluate the reliability and validity of the measurement model.

Findings

The results show that customers’ perceptions and satisfaction significantly impact their intention to use MFS. Specifically, customers’ perceptions strongly influence their satisfaction with MFS, and the purpose of use significantly predicts both perception and satisfaction. Technical problems and challenges were found to have no significant impact on satisfaction levels, but other factors were more critical. Furthermore, the integration of innovative technological solutions is crucial for fostering sustainability in MFS, as it enhances reliability and efficiency while minimizing environmental footprints.

Research limitations/implications

The study was conducted in a single country, relied on self-reported data, and used a cross-sectional design, which limits the ability to draw causal inferences. Future research could explore the factors that influence customer satisfaction with MFS in different countries and regions and incorporate additional variables to provide a more comprehensive understanding of the drivers of customer satisfaction with MFS.

Originality/value

This study significantly contributes by extending the technology acceptance model (TAM) framework with the innovation resistance theory, offering a nuanced understanding of MFS adoption. The findings challenge conventional wisdom, highlighting the limited impact of technical problems on satisfaction and emphasizing the central role of user perceptions in shaping satisfaction and intention to use.

Details

Technological Sustainability, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2754-1312

Keywords

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