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Article
Publication date: 31 July 2023

Amer Sohail, Zohaib Butt, Affaf Asghar Butt and Aamer Shahzad

This study examines the effect of business group affiliations on corporate cash holdings and how political connectedness modifies the relationship between business group…

Abstract

Purpose

This study examines the effect of business group affiliations on corporate cash holdings and how political connectedness modifies the relationship between business group affiliations and corporate cash holdings.

Design/methodology/approach

The multiple ordinary least square regression with year dummies is used to estimate the effect of business groups on cash holdings. For moderating, the multiplicative term is used. The data from 252 non-financial firms listed on Pakistan Stock Exchange were collected for the analysis from 2010 to 2018.

Findings

The findings show that business group affiliations negatively affect corporate cash holdings, and political connection positively moderates this relationship. Business group firms that are politically connected hold less cash. The firm-specific factors such as leverage, size, cash flow, and dividend dummy also significantly affect corporate cash holdings.

Practical implications

The results imply that affiliated companies have lessened financing frictions and improved stability in their expected future cash flows. Moreover, the results indicate that political connection minimizes the opportunity and agency costs linked to cash holdings.

Originality/value

This study contributes to the existing literature by examining the moderating role of political affiliations on the relationship between business groups and cash holdings in the emerging market.

Details

Journal of Economic and Administrative Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 13 February 2024

Hadia Sohail and Noman Arshed

Literature has pointed that conventional financial development theories have inconclusive role on motivating new businesses. New ventures often consider the conventional system…

Abstract

Purpose

Literature has pointed that conventional financial development theories have inconclusive role on motivating new businesses. New ventures often consider the conventional system that passes through risk and provides fixed-interest lending as a burden. Comparatively, Islamic finance contributes using participative and equitable substitute for startups and has a potential in promoting new businesses. This study aims to investigate the holistic financial development index quadratic effect on entrepreneurship and include the moderating role of Islamic financing at national level.

Design/methodology/approach

Islamic banks of 21 nations constitute the unbalanced panel data. Financial development and entrepreneurship indices were developed using factor analysis and panel median regression to estimate the nonlinear financial market development effects and Islamic financing moderation model.

Findings

The results indicated that low financial market development is entrepreneurship deterring because of interest burden effect, which could be eased with a proportional increase in the Islamic financing, which is participative. The moderating effect has led to the categorization of the sample countries into entrepreneurship promoting and entrepreneurship discouraging with respect to the current incidence of financial market development and Islamic financing, which can help policymakers in understanding the entrepreneurship promoting combination of financial development and Islamic financing.

Research limitations/implications

Central banks and Shari’ah advisory councils can adopt Islamic financing transition in the national financial inclusion policy for new business facilitation.

Originality/value

This study is instrumental in exploring the assessment of introducing Islamic financing while developing the financial sector on multidimensional entrepreneurship.

Details

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

Keywords

Article
Publication date: 28 April 2023

Muhammad Hassaan, Gang Li and Asif Yaseen

This paper aims to understand the facilitators and inhibitors that might influence customers' adoption of smart banking services (SBS) in Pakistan.

Abstract

Purpose

This paper aims to understand the facilitators and inhibitors that might influence customers' adoption of smart banking services (SBS) in Pakistan.

Design/methodology/approach

Semi-structured interviews were conducted with 33 bank customers in Multan and Lahore using a case study design. Cases were selected using a purposive sampling strategy with maximum variation. A thematic content analysis (TCA) was performed to analyze the qualitative data.

Findings

The findings of this study support the notion that SBS has become a sine qua non of 21st-century banking owing to performance expectancy, effort expectancy, social influence, price value, facilitating conditions, habit and hedonic motivation. However, information privacy concerns and big brother effect impair customers' cognitive, personal and social experiences, creating an obstacle toward SBS adoption.

Research limitations/implications

Studying SBS adoption only in Pakistan represents the perspective of a developing country, which limits the generalizability of the findings.

Practical implications

Pakistani customers' demand for SBS can be linked to its performance. By upgrading technology, banks can improve the usefulness of these services.

Originality/value

The first scholarly inquiry explores the facilitators and inhibitors that could influence the adoption of SBS in Pakistan.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 5 October 2022

Ruba Khalid Shira

This paper aims to explore the nexus between corporate governance, competition and earnings management (EM) in Asian emerging economies.

Abstract

Purpose

This paper aims to explore the nexus between corporate governance, competition and earnings management (EM) in Asian emerging economies.

Design/methodology/approach

The authors used a sample of 116 banks from 10 Asian emerging economies from 2010 to 2021. To measure corporate governance, the board size, chief executive officer duality and ownership concentration are used. Competition is captured with Herfindahl-Hirschman Index (HHI) and Lerner index (LI). Although earning management is measured through discretionary accruals. The authors use fixed effect regression for hypothesis testing. However, dynamic panel system generalised method of moments estimation is used to confirm the robustness of the results.

Findings

The authors find that corporate governance and competition are significantly related to earning management practices of banks in emerging Asian economies. The authors report similar outcomes with both estimation methods verifying the reliability of results.

Originality/value

The findings of the study have implications for corporate regulatory authorities, management and investors in the Asian emerging economies. Banks in the Asian emerging economies need to pay more attention to factors such as governance and competition to avoid EM.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 12 December 2023

Qingjin Lin, Loo-See Beh and Nurul Liyana Mohd Kamil

This study aims to explore the associations between leadership styles (i.e. transformational and ethical) and innovative work behavior within higher education institutions (HEIs)…

Abstract

Purpose

This study aims to explore the associations between leadership styles (i.e. transformational and ethical) and innovative work behavior within higher education institutions (HEIs), additionally investigating the mediating role of work engagement and the moderating role of psychological empowerment.

Design/methodology/approach

The basis of this study rested upon adopting a cross-sectional research framework. The data were acquired from a sample comprising 825 academic staff and 275 leaders across 226 HEIs in China. Employing a quantitative methodology, the researchers used AMOS version 26.0 and SPSS version 22.0 for statistical analysis.

Findings

The results indicated that leadership styles (i.e. transformational and ethical) positively affected innovative work behavior, both directly and indirectly (via work engagement). Also, psychological empowerment moderated the linkage between leadership styles and innovative work behavior but not the association between work engagement and innovative work behavior.

Originality/value

Despite some existing literature having discussed the correlation between leadership styles and innovative work behavior, there appears to be a conspicuous dearth of research endeavoring to explore the mediator (i.e. work engagement) and the moderator (i.e. psychological empowerment) within the above nexus, especially in the context of HEIs. Thus, this study can be considered original, introducing novel perspectives and substantial contributions to the management literature on HEIs. In addition, it offers insights for organizational managers.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

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