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1 – 10 of over 7000Aamir Inam Bhutta, Jahanzaib Sultan, Muhammad Fayyaz Sheikh, Muhammad Sajid and Rizwan Mushtaq
Pakistan has experienced financial liberalization with rapid ups and downs in economic growth due to domestic issues during the last 2 decades. Motivated by inconclusive and…
Abstract
Purpose
Pakistan has experienced financial liberalization with rapid ups and downs in economic growth due to domestic issues during the last 2 decades. Motivated by inconclusive and conflicting time-driven findings about the performance of the business groups, this study examines the performance of business groups in Pakistan for a relatively long period from 2003 to 2018.
Design/methodology/approach
The study uses 3,821 firm-year observations from non-financial firms listed on the Pakistan Stock Exchange (PSX). For the estimation, pooled ordinary least squares (OLS) with industry- and year fixed effects and two-step system generalized methods of moments (GMM) are used.
Findings
The study finds that group-affiliated firms outperform independent firms in accounting performance, while underperform in market performance. The outperformance is mainly driven by medium-sized business groups, while underperformance is driven by small and large business groups. Further, the study documents that the underperformance in terms of market performance of firms affiliated with small and large groups is greater before the economic downturn, while outperformance in terms of the accounting measure of firms affiliated with medium-sized groups is greater during the economic downturn. These findings support our time-driven concerns. Overall, the authors' findings are consistent with institutional and transaction cost theories.
Practical implications
Business groups are important channels to reduce market inefficiencies. Business groups may enhance the affiliated firms' resources and resistance capacity through active utilization of the internal capital market, specifically when market conditions are not ideal for affiliates. However, effective utilization of internal capital markets depends on group size. Therefore, investors should deliberate on the size of business groups and diversification within business groups.
Originality/value
The authors extend the literature by providing fresh evidence related to the performance of business groups in the Pakistani context while accounting for the role of the size of business groups.
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Joseph Ikechukwu Uduji, Nduka Vitalis Elda Okolo-Obasi, Justitia Odinaka Nnabuko, Geraldine Egondu Ugwuonah and Josaphat Uchechukwu Onwumere
The purpose of this paper is to critically examine the multinational oil companies’ (MOCs) corporate social responsibility (CSR) initiatives in Nigeria. Its special focus is to…
Abstract
Purpose
The purpose of this paper is to critically examine the multinational oil companies’ (MOCs) corporate social responsibility (CSR) initiatives in Nigeria. Its special focus is to investigate the impact of the global memorandum of understanding (GMoU) on mainstreaming gender sensitivity in cash crop market supply chains in the Niger Delta region of Nigeria.
Design/methodology/approach
This paper adopts an explanatory research design with a mixed method to answer the research questions and test the hypotheses. A total of 1,200 rural women respondents were sampled across the Niger Delta region.
Findings
Results from the use of a combined logit model and propensity score matching indicate a significant relationship between the GMoU model and mainstreaming gender sensitivity in cash crop market supply chains in the Niger Delta.
Research limitations/implications
This study implies that MOCs’ CSR interventions that improve women’s access to land and encourage better integration of food markets through improved roads and increased mobile networks would enable women to engage in cash crop production.
Social implications
This implies that improving access to credit through GMoU cluster farming targeted at female farmers would improve access to finance and extension services for women in cash crop production in the Niger Delta.
Originality/value
This research contributes to the gender debate in the agricultural value chain from a CSR perspective in developing countries and is rational for demands for social projects by host communities. It concludes that businesses have an obligation to help solve problems of public concern.
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Luyao Jiang, Yanan Sun and Hongbo Zhao
This study aims to explore the relationship between non-market strategies and organizational resilience, using a Chinese private enterprise as an example.
Abstract
Purpose
This study aims to explore the relationship between non-market strategies and organizational resilience, using a Chinese private enterprise as an example.
Design/methodology/approach
This study collected data through semi-structured interviews and analyzed them through grounded theory, using a three-step approach of open coding, axial coding and selective coding to analyze and construct a model of the mechanism of the impact of non-market strategies on organizational resilience.
Findings
The following conclusions were drawn from this study. (1) Stakeholders, internal and external environment and entrepreneurship are important motivations that influence private firms to implement non-market strategies to enhance organizational resilience, with entrepreneurship being the key driver. (2) Non-market strategies contain three dimensions, and different non-market behaviors have different mechanisms of action on the organizational resilience of firms. (3) Non-market strategies and organizational resilience form an interactive spiral relationship. This mutually reinforcing effect promotes firm growth and sustainable corporate development. The research results enrich the theoretical connotation of non-market strategies, construct a model of the mechanism of influence of non-market strategies on organizational resilience, and describe three explanatory paths for the relationship between the two–incentive mechanism, functional mechanism and transformation mechanism.
Research limitations/implications
This study's single case is unique and based on the Chinese context. In addition, this study adopts a rooted qualitative research approach and although the coding and model construction strictly follow the steps of grounded theory research, a degree of subjectivity is inevitable. On this basis, future research can adopt quantitative analysis methods to test and improve the model.
Practical implications
This paper explores the important role of non-market strategies in the Chinese context under the impact of traditional market mechanisms, based on the perspective of Chinese private enterprises, and provides new insights and revelations for private enterprises to achieve sustainable development.
Originality/value
This study innovatively explores the formation mechanism of organizational resilience from the perspective of non-market strategies, adding a new perspective to the literature. Additionally, it examines the mechanisms between long-term non-market strategy and organizational resilience, particularly their relationship in times of crisis, utilizing a rooted approach that goes beyond static analysis.
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Tracie Tung and Franck Vigneron
The purpose of this study is to understand how consumers' green trust and green brand equity (GBE) vary by perceived brand greenness and age in the US market from the lens of…
Abstract
Purpose
The purpose of this study is to understand how consumers' green trust and green brand equity (GBE) vary by perceived brand greenness and age in the US market from the lens of brand knowledge (brand awareness and brand image).
Design/methodology/approach
Three multiple-group comparisons of structural equation modeling were used to analyze the data collected from a questionnaire. An experimental design was applied (high vs. low perceived brand greenness). A total of 440 usable responses were collected from an online consumer panel. With a higher percentage of participants older than 60 years, two groups were used, younger (under 55) and older (over 55), within each brand condition to conduct age comparisons.
Findings
Consumers' previous brand experience is important. The most promising indicators are brand image and green trust for GBE. A difference was observed between the group comparisons. For the less perceived green brand, existing brand image played a more important role in the process, and there is a need to enhance its green trust. For the higher perceived green brand, more factors should be included to explain their GBE, especially for consumers under 55.
Originality
This study identified two moderators, perceived brand greenness and age, in the formation of GBE, which has not been widely explored in the literature. The findings provide significant insights for generational cohorts, focusing for the first time on the joint catalyst effect of greenness and age regarding the influence of GBE on consumers' commitment to green brands. Additionally, the fact that a higher percentage of participants are Baby Boomers enables this study to add to the existing body of literature and bring unique perspectives to understand their and their younger counterparts' attitude toward green consumption.
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Kader Sahin, Ekrem Tatoğlu, Kubra Mert, Tuğba Kaplan and Ismail Golgeci
This paper aims to investigate the internationalization motives behind location choice among emerging country business groups (EBGs) and the way in which institutional factors…
Abstract
Purpose
This paper aims to investigate the internationalization motives behind location choice among emerging country business groups (EBGs) and the way in which institutional factors affect Türkiye’s foreign direct investment (FDI).
Design/methodology/approach
This study develops a multi-perspective framework that integrates the ownership, location and internalization (OLI) paradigm (Dunning and Lundan, 2008) and the linkage, leverage and learning (LLL) model (Mathews, 2006) with neo-institutional theory to explain the internationalization of EBGs. It adopts a multiple-case study research method relying on 14 semi-structured interviews with top executives to explore the internationalization strategy of a set of Turkish BGs.
Findings
This study supports the combination of the OLI paradigm, the LLL model and neo-institutional theory to explain EBGs’ internationalizing behaviors. Turkish BGs have adopted both asset exploitation and asset augmentation internationalization strategies. The institutional legitimacy mechanism moderates the internationalization motives of Turkish BGs, and their host country location choice and normative pressures are more salient than their regulative and cognitive pressures.
Research limitations/implications
This study is based on a sample of EBGs from Türkiye, and this restriction limits the generalizability/applicability of the findings to BGs globally.
Originality/value
Few studies have considered EBGs and their internationalization strategies in the international business field. This paper puts forward an integrated framework for analyzing internationalization and legitimacy in the institutional context of EBGs. This study highlights that BGs bridge institutional voids. Focusing on Turkish BGs helps to answer Granovetter’s Coasian question and contributes to the understanding of emerging countries’ economic development.
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Yanxi Li, Delin Meng and YunGe Hu
This study aims to investigate the influence of parent company personnel embedding on the stock price crash risk (SPCR) of listed companies, along with the moderating effect of…
Abstract
Purpose
This study aims to investigate the influence of parent company personnel embedding on the stock price crash risk (SPCR) of listed companies, along with the moderating effect of disparate locations between parent and subsidiary companies and other major shareholders.
Design/methodology/approach
This research empirically tests hypotheses based on a sample of listed subsidiaries in China during the period between 2006 and 2021.
Findings
Our results demonstrate that personnel embeddedness in the parent company significantly alleviates SPCR in subsidiaries. This effect is even more substantial when the parent and subsidiary companies are in different places. However, other major shareholders in the subsidiary company weaken it. Our additional analysis indicates that, relative to executive embeddedness, director embeddedness exerts a stronger effect on the SPCR of the subsidiary. Mechanism examination reveals that the information asymmetry and the level of internal control (IC) within the subsidiary are significant channels through which the personnel embeddedness from the parent company influences the SPCR of the subsidiary.
Originality/value
This study expands the literature on how personnel arrangements in corporate groups within emerging countries influence SPCR. We have extended the traditional concept of interlocking directorates to corporate groups, thereby broadening the understanding of the governance effects of interlocking directors and executives from a group perspective.
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As an important form of the e-commerce industry, online group buying is under the spotlight from with two sides: cheaper price but longer waiting time. The purpose of this paper…
Abstract
Purpose
As an important form of the e-commerce industry, online group buying is under the spotlight from with two sides: cheaper price but longer waiting time. The purpose of this paper is to adequately investigate the interaction between saving and waiting time of group buying comprehensively.
Design/methodology/approach
To fill the research gap, the authors elaborate a dual-channel supply chain (SC) with regular retail (individual buying) and group-buying channel, and formulate the demand based on the consumer utility with the positive effect of saving money and the negative effect of wasting time.
Findings
The authors find that power structure only changes the optimal prices, instead of the waiting time. The selling price mainly influences consumer demands, instead of the price discount of group buying. The SC profits are only positive to the channel preference, and it is the decisive parameter of consumers' choice. The price sensitivity lays a more remarkable impact on the SC compared to the time sensitivity. Above all, the price is the main factor of group buying, instead of time.
Originality/value
These results underscore the improvement for the dual-channel SC of group buying, providing managerial insights for the group-buying industry.
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Muhammad Akram, Ahmed Imran Hunjra, Imran Riaz Malik and Mamdouh Abdulaziz Saleh Al-Faryan
Internationalization and financial deregulation have caused market participants and policymakers to consider the significance of financial connectedness and the spillover effects…
Abstract
Purpose
Internationalization and financial deregulation have caused market participants and policymakers to consider the significance of financial connectedness and the spillover effects of shocks. In this context, this research is a pioneering effort to investigate the direction and magnitude of return volatility spillovers between Pakistan’s financial markets and those of its key trade partners. This paper examines the relationship between return and volatility spillover in the financial markets of Pakistan and its major trading partners.
Design/methodology/approach
Ten countries are selected for empirical examination of dynamic connectedness among Pakistan and its major trading partner’s stock markets. This study utilizes a spillover index approach model and considers daily, weekly and monthly datasets spanning 25 years from 1995 to 2019.
Findings
The results indicate that stock markets provide efficient channels for return and volatility spillovers. Moreover, it is found that the intensity of spillovers during the financial crisis is more intense as these crises are major determinants of contagion; consequently, investors, speculators and policymakers use these events for their respective purposes.
Originality/value
Researchers, practitioners, policymakers and investors may all benefit from the findings in areas including risk management, portfolio diversification and trading methods.
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Sadia Shafiq, Saiqa Saddiqa Qureshi and Muhammad Akbar
This paper aims to examine whether the volatility of returns in commodity (gold, oil), bond and forex markets is related over time to the volatility of returns in equity markets…
Abstract
Purpose
This paper aims to examine whether the volatility of returns in commodity (gold, oil), bond and forex markets is related over time to the volatility of returns in equity markets of Bangladesh, Indonesia, Pakistan, Philippines, Turkey and Vietnam. In addition, the authors analyze the integration of the commodity, bond, forex and equity markets across these markets.
Design/methodology/approach
The dynamic conditional correlation GARCH (DCC-GARCH) model is used to capture the time-varying conditional correlation among markets. The authors use daily data of stock prices, oil prices, gold prices, exchange rates and 10 years' bond yields of the six countries from Datastream and investing.com from January 2001 to April 2021.
Findings
Findings reveal that the parameters of dynamic correlation are statistically significant which indicates the importance of time-varying co-movements. Estimation of the DCC-GARCH model suggests that the stock market is significantly correlated with bond, forex, gold and oil markets in all six countries.
Practical implications
This study has practical implications for policymakers and investment professionals. A better understanding of dynamic linkages among the markets would help in constructing effective hedging and portfolio diversification strategies. Policy makers can get insight to build proper strategies in order to insulate the economy from factors that cause volatility.
Originality/value
Several studies have investigated the linkage between commodity and stock markets and the volatility spillover effect, but very little attention is given to study the interrelationship between groups of market segments of different economies. No study has comparatively examined the dynamic relationship of multiple markets of a group of emerging countries simultaneously.
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Pushpanjali Kaul and Sangeeta Arora
The present study, by using signaling perspective aims to investigate short-term valuation impact of rebranding announcements (with name change) on stock performance of 160…
Abstract
Purpose
The present study, by using signaling perspective aims to investigate short-term valuation impact of rebranding announcements (with name change) on stock performance of 160 service firms listed on NSE NIFTY-500 over the period of 2000–2019.
Design/methodology/approach
An event study methodology is used to estimate the cumulative abnormal returns (CARs) and its statistical significance is tested with both parametric and non-parametric test-statistics. Separate analysis has been conducted for firms with “major vs minor” and “restructuring vs non-restructuring” name change.
Findings
Findings of the study suggest that rebranding decisions are negatively associated with abnormal returns around the announcement period indicating strong disapproval of name change event. In addition, investors formed strong adverse opinion for major name change firms as compared to minor name change firms. Further, restructured name change sample document larger negative drift than non-restructured sample.
Practical implications
Findings offer substantial repercussions for shareholders who can make informed judgments about name change as a signal of reinventing brand identity. Managers should announce detailed rationale behind name change decision to market for enhancing corporate reputation.
Originality/value
This study contributes to marketing-finance interface literature and is first to examine market reaction to name change of Indian service firms and moreover, made a distinction between major vs minor and restructured vs non-restructured name change events for these firms.
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