Pub Date : 2022-09-22DOI: 10.1108/jeas-01-2022-0009
Tazeen Arsalan, B. Chishty, Shagufta Ghouri, N. Ansari
PurposeThis research paper aims to analyze the stock exchanges of developed, emerging and developing countries to investigate the volatility in stock markets and to evaluate the rate of mean reversion.Design/methodology/approachThe stock exchanges included in the research are NASDAQ, Tokyo stock exchange, Shanghai stock exchange, Bombay stock exchange, Karachi stock exchange and Jakarta stock exchange. Secondary daily data from Bloomberg are used to conduct the research for the period from January 2011 to December 2018. Generalized autoregressive conditional heteroskedasticity (GARCH) (1,1) model was applied to examine volatility and the half-life formula was used to calculate mean reversion in days.FindingsThe research concluded that all the stock exchanges included in the research satisfy the assumptions of mean reversion. Developing countries have the lowest volatility while emerging countries have the highest volatility which means that the rate of mean reversion is fastest in developing countries and slowest in emerging countries.Research limitations/implicationsFuture studies can determine the reasons for fastest rate of mean reversion in developing countries and slowest rate of mean reversion in emerging countries.Practical implicationsDeveloping countries show the lowest mean reversion in days while the emerging countries show the highest mean reversion in days indicating that developing countries take less time to revert to their mean position.Originality/valueThe majority of previous studies on univariate volatility models are mostly on applications of the models. Only a few researchers have taken the robustness of the models into account when applying them in emerging countries and not in developed, developing and emerging countries in one place. This makes the current study unique and more rigorous.
{"title":"Comparison of volatility and mean reversion among developed, developing and emerging countries","authors":"Tazeen Arsalan, B. Chishty, Shagufta Ghouri, N. Ansari","doi":"10.1108/jeas-01-2022-0009","DOIUrl":"https://doi.org/10.1108/jeas-01-2022-0009","url":null,"abstract":"PurposeThis research paper aims to analyze the stock exchanges of developed, emerging and developing countries to investigate the volatility in stock markets and to evaluate the rate of mean reversion.Design/methodology/approachThe stock exchanges included in the research are NASDAQ, Tokyo stock exchange, Shanghai stock exchange, Bombay stock exchange, Karachi stock exchange and Jakarta stock exchange. Secondary daily data from Bloomberg are used to conduct the research for the period from January 2011 to December 2018. Generalized autoregressive conditional heteroskedasticity (GARCH) (1,1) model was applied to examine volatility and the half-life formula was used to calculate mean reversion in days.FindingsThe research concluded that all the stock exchanges included in the research satisfy the assumptions of mean reversion. Developing countries have the lowest volatility while emerging countries have the highest volatility which means that the rate of mean reversion is fastest in developing countries and slowest in emerging countries.Research limitations/implicationsFuture studies can determine the reasons for fastest rate of mean reversion in developing countries and slowest rate of mean reversion in emerging countries.Practical implicationsDeveloping countries show the lowest mean reversion in days while the emerging countries show the highest mean reversion in days indicating that developing countries take less time to revert to their mean position.Originality/valueThe majority of previous studies on univariate volatility models are mostly on applications of the models. Only a few researchers have taken the robustness of the models into account when applying them in emerging countries and not in developed, developing and emerging countries in one place. This makes the current study unique and more rigorous.","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"101 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2022-09-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81805996","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-20DOI: 10.1108/jeas-04-2022-0110
S. Alawi
PurposeAn effective corporate governance system helps to smoothly run business operations and manage financial matters. To ensure that management behavior is ethical, and their decisions are in the best interest of shareholders, corporate governance plays a vital role. This study aims to examine the impact of corporate governance on the insider trading profitability of listed banks in Pakistan, Bangladesh and India.Design/methodology/approachThe authors take data from the financial statements of 70 listed banks and stock exchanges of the respective countries. The period of the data for our study is from 2010 to 2020. The authors use board independence, the board size, institutional ownership and managerial ownership as measures of corporate governance characteristics. While inside trading profitability is measured with abnormal returns. The authors apply the fixed effect panel regression for hypothesis testing and the two-step dynamic panel system-generalized method of moments (GMM) regression technique for checking the robustness of the findings.FindingsThe authors found that corporate governance has a significant impact on insider trading profitability in Pakistan, Bangladesh and India. Board independence and institutional ownership are negatively related while board size and managerial ownership are positively associated with insider trading profitability.Originality/valueTo the best of our knowledge, this study is the first one to explore the role of corporate governance in limiting insider trading on South Asian banks. It recommends that corporations should follow the code of corporate governance for the protection of shareholders' and other investors' profits.
{"title":"The role of corporate governance towards insider trading profitability","authors":"S. Alawi","doi":"10.1108/jeas-04-2022-0110","DOIUrl":"https://doi.org/10.1108/jeas-04-2022-0110","url":null,"abstract":"PurposeAn effective corporate governance system helps to smoothly run business operations and manage financial matters. To ensure that management behavior is ethical, and their decisions are in the best interest of shareholders, corporate governance plays a vital role. This study aims to examine the impact of corporate governance on the insider trading profitability of listed banks in Pakistan, Bangladesh and India.Design/methodology/approachThe authors take data from the financial statements of 70 listed banks and stock exchanges of the respective countries. The period of the data for our study is from 2010 to 2020. The authors use board independence, the board size, institutional ownership and managerial ownership as measures of corporate governance characteristics. While inside trading profitability is measured with abnormal returns. The authors apply the fixed effect panel regression for hypothesis testing and the two-step dynamic panel system-generalized method of moments (GMM) regression technique for checking the robustness of the findings.FindingsThe authors found that corporate governance has a significant impact on insider trading profitability in Pakistan, Bangladesh and India. Board independence and institutional ownership are negatively related while board size and managerial ownership are positively associated with insider trading profitability.Originality/valueTo the best of our knowledge, this study is the first one to explore the role of corporate governance in limiting insider trading on South Asian banks. It recommends that corporations should follow the code of corporate governance for the protection of shareholders' and other investors' profits.","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"21 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2022-09-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75044362","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-08DOI: 10.1108/jeas-04-2022-0093
N. Prakash, Madhvi Sethi
PurposeThis article investigates the impact of foreign trade on carbon emissions of the member countries of the largest trade bloc, the Regional Comprehensive Economic Partnership (RCEP).Design/methodology/approachThe aggregate bilateral trade with members of RCEP during the period 1991–2020 was considered for analysis. The study also examines the impact of foreign trade (between member countries) on economic development, represented by GDP per capita. Dumitrescu–Hurlin panel Granger causality test was conducted to understand the impact of foreign trade on GDP per capita and carbon emissions.FindingsResults indicate that though foreign trade is heterogeneously Granger causing GDP per capita, it also aggravates carbon emissions in RCEP bloc.Originality/valueThe study is of significance to the policymakers in the member countries as it provides evidence to include climate impact in trade agreements. The wealthier RCEP member countries can support the green transition of low-income countries through transfer of eco-friendly technologies.
{"title":"Emissions-foreign trade nexus: establishing the need to harmonize environment and economics in RCEP","authors":"N. Prakash, Madhvi Sethi","doi":"10.1108/jeas-04-2022-0093","DOIUrl":"https://doi.org/10.1108/jeas-04-2022-0093","url":null,"abstract":"PurposeThis article investigates the impact of foreign trade on carbon emissions of the member countries of the largest trade bloc, the Regional Comprehensive Economic Partnership (RCEP).Design/methodology/approachThe aggregate bilateral trade with members of RCEP during the period 1991–2020 was considered for analysis. The study also examines the impact of foreign trade (between member countries) on economic development, represented by GDP per capita. Dumitrescu–Hurlin panel Granger causality test was conducted to understand the impact of foreign trade on GDP per capita and carbon emissions.FindingsResults indicate that though foreign trade is heterogeneously Granger causing GDP per capita, it also aggravates carbon emissions in RCEP bloc.Originality/valueThe study is of significance to the policymakers in the member countries as it provides evidence to include climate impact in trade agreements. The wealthier RCEP member countries can support the green transition of low-income countries through transfer of eco-friendly technologies.","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"63 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2022-09-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90876979","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-30DOI: 10.1108/jeas-12-2021-0255
A. Khursheed, Faisal Mustafa, Maham Fatima, M. Rao
PurposeThis study proposes a new comprehensive model of entrepreneurial intentions (EIs) that enhances the understanding of the crucial entrepreneurial personality traits. This study also examines how entrepreneurial family history, gender and discipline moderate the relationship between the key entrepreneurial personality traits and EIs of university students.Design/methodology/approachThe study introduces a new combination of important entrepreneurial personality traits, theoretically following the theory of planned behaviour (TPB). The data are collected using an entrepreneurial intention questionnaire and analysed with structural equation modelling (SEM) over a sample of 297 university students from Pakistan.FindingsThe findings highlight that one of the notable contributions to assessing EI is the negative impact of foreseeable challenges (FCs), resulting in negative EIs among university students of our sample. The authors also found significant moderating roles of gender, discipline and entrepreneurial family history in strengthening the relationship between entrepreneurial traits and EIs.Originality/valueThe study contributes both to the existing empirical and theoretical literature by examining a key set of entrepreneurial personality traits leading to enhance EIs. The results may also assist academicians to discover new ways for developing entrepreneurial traits among university students.
{"title":"The practical challenges faced by young entrepreneurs: an empirical analysis","authors":"A. Khursheed, Faisal Mustafa, Maham Fatima, M. Rao","doi":"10.1108/jeas-12-2021-0255","DOIUrl":"https://doi.org/10.1108/jeas-12-2021-0255","url":null,"abstract":"PurposeThis study proposes a new comprehensive model of entrepreneurial intentions (EIs) that enhances the understanding of the crucial entrepreneurial personality traits. This study also examines how entrepreneurial family history, gender and discipline moderate the relationship between the key entrepreneurial personality traits and EIs of university students.Design/methodology/approachThe study introduces a new combination of important entrepreneurial personality traits, theoretically following the theory of planned behaviour (TPB). The data are collected using an entrepreneurial intention questionnaire and analysed with structural equation modelling (SEM) over a sample of 297 university students from Pakistan.FindingsThe findings highlight that one of the notable contributions to assessing EI is the negative impact of foreseeable challenges (FCs), resulting in negative EIs among university students of our sample. The authors also found significant moderating roles of gender, discipline and entrepreneurial family history in strengthening the relationship between entrepreneurial traits and EIs.Originality/valueThe study contributes both to the existing empirical and theoretical literature by examining a key set of entrepreneurial personality traits leading to enhance EIs. The results may also assist academicians to discover new ways for developing entrepreneurial traits among university students.","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"57 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2022-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84870541","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-23DOI: 10.1108/jeas-02-2022-0049
Emad Sayed, M. Khalil
PurposeThis study aims to investigate the impact of cash holding (CH) on bankruptcy (BR) risk. This study also examines the moderating effect of corporate social responsibility (CSR) practices on this relationship.Design/methodology/approachThe data were extracted from firms' annual reports. The panel data were used for 68 firms listed at the Egyptian Stock Exchange (EGX) with a total of 340 observations from 2015 to 2019. The research hypotheses were tested using the panel corrected standards errors (PCSE) method and the feasible generalized least squares (FGLS) method.FindingsThe results reveal that (1) CH has a positive effect on the Z-score (decreasing bankruptcy risk) of the Egyptian listed firms. (2) Egyptian firms that practice CSR have a low level of bankruptcy risk. (3) CSR practices in Egyptian listed firms support the positive relationship between CH and Z-score (declining bankruptcy risk).Research limitations/implicationsThe limitations of this study include a relatively small sample size. In addition, the analysis doesn't include other measures of bankruptcy risk due to a lack of data.Practical implicationsThe findings of this study will help investors and creditors to evaluate and predict the firms' bankruptcy risk. This study highlights the importance of cash holding for firms in emerging economies. Firms may hold cash to support liquidity, overcome financial distress risk, lower the cost of capital, increase future investment opportunities and reduce uncertainty. Additionally, the results would also help the policymakers, regulators at the EGX and Financial Regulatory Authority and stakeholders to realize the importance of cash holding, evaluate the cash liquidity in Egyptian listed firms, predict the firms' financial distress and consider the consequences of the CSR practices in accordance with Egypt's vision 2030.Originality/valueConsistent with liquidity preference theory and trade-off theory, this study adds evidence to the literature on bankruptcy risk by investigating the effect of cash holding on bankruptcy risk in emerging economies. According to Egypt's vision 2030, the empirical findings in this study extend previous findings by providing strong additional evidence in emerging economies regarding the moderating effect of CSR practices on the association between cash holding and bankruptcy risk. To the best of our knowledge, this study is the first to investigate the relationship between CSR, CH and BR risk in Egypt.
{"title":"Cash holding and bankruptcy risk in Egyptian firms: the moderating effect of corporate social responsibility","authors":"Emad Sayed, M. Khalil","doi":"10.1108/jeas-02-2022-0049","DOIUrl":"https://doi.org/10.1108/jeas-02-2022-0049","url":null,"abstract":"PurposeThis study aims to investigate the impact of cash holding (CH) on bankruptcy (BR) risk. This study also examines the moderating effect of corporate social responsibility (CSR) practices on this relationship.Design/methodology/approachThe data were extracted from firms' annual reports. The panel data were used for 68 firms listed at the Egyptian Stock Exchange (EGX) with a total of 340 observations from 2015 to 2019. The research hypotheses were tested using the panel corrected standards errors (PCSE) method and the feasible generalized least squares (FGLS) method.FindingsThe results reveal that (1) CH has a positive effect on the Z-score (decreasing bankruptcy risk) of the Egyptian listed firms. (2) Egyptian firms that practice CSR have a low level of bankruptcy risk. (3) CSR practices in Egyptian listed firms support the positive relationship between CH and Z-score (declining bankruptcy risk).Research limitations/implicationsThe limitations of this study include a relatively small sample size. In addition, the analysis doesn't include other measures of bankruptcy risk due to a lack of data.Practical implicationsThe findings of this study will help investors and creditors to evaluate and predict the firms' bankruptcy risk. This study highlights the importance of cash holding for firms in emerging economies. Firms may hold cash to support liquidity, overcome financial distress risk, lower the cost of capital, increase future investment opportunities and reduce uncertainty. Additionally, the results would also help the policymakers, regulators at the EGX and Financial Regulatory Authority and stakeholders to realize the importance of cash holding, evaluate the cash liquidity in Egyptian listed firms, predict the firms' financial distress and consider the consequences of the CSR practices in accordance with Egypt's vision 2030.Originality/valueConsistent with liquidity preference theory and trade-off theory, this study adds evidence to the literature on bankruptcy risk by investigating the effect of cash holding on bankruptcy risk in emerging economies. According to Egypt's vision 2030, the empirical findings in this study extend previous findings by providing strong additional evidence in emerging economies regarding the moderating effect of CSR practices on the association between cash holding and bankruptcy risk. To the best of our knowledge, this study is the first to investigate the relationship between CSR, CH and BR risk in Egypt.","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"32 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2022-08-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88784919","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-19DOI: 10.1108/jeas-03-2022-0073
A. Verma, A. K. Giri, Byomakesh Debata
PurposeThe main purpose of this paper is to analyze the role of information and communication technology (ICT) diffusion in women empowerment and in fostering the process of achieving the Sustainable Development Goals (SDGs) in South Asian Association for Regional Cooperation (SAARC) countries using panel data from 2005 to 2020.Design/methodology/approachAn ICT diffusion index was constructed using principal component analysis (PCA). Further, the study uses econometric techniques robust to cross-sectional dependence (CSD) which include Pesaran's CSD tests, second-generation unit root test, Pedroni, Kao, Westerlund cointegration test, FMOLS, DCCE, Driscoll–Kraay (DK) regression, and D&H causality tests.FindingsICT diffusion and economic growth have a significant and favorable impact on women's empowerment. However, fertility rates and trade openness harm women's empowerment. In addition, the causality test results depict a bidirectional causal relationship between ICT and women empowerment and between growth and women empowerment. In addition, unidirectional causality is detected between education and women's empowerment. Overall, the findings indicate that expanding ICT and bridging the digital divide, particularly among women, can be effective in achieving empowerment-related SDGs.Originality/valueTo date, there are hardly any studies in SAARC context that empirically evaluate the link between ICT, women empowerment, and the issue of sustainability in a unified framework. Therefore, this study is unique in terms of conceptualization and methodological robustness in this context. The study will benefit policymakers and regulatory bodies to formulate appropriate policies to empower women and thereby attain the SDGs by 2030.
{"title":"ICT diffusion, women empowerment, and sustainable development in SAARC countries","authors":"A. Verma, A. K. Giri, Byomakesh Debata","doi":"10.1108/jeas-03-2022-0073","DOIUrl":"https://doi.org/10.1108/jeas-03-2022-0073","url":null,"abstract":"PurposeThe main purpose of this paper is to analyze the role of information and communication technology (ICT) diffusion in women empowerment and in fostering the process of achieving the Sustainable Development Goals (SDGs) in South Asian Association for Regional Cooperation (SAARC) countries using panel data from 2005 to 2020.Design/methodology/approachAn ICT diffusion index was constructed using principal component analysis (PCA). Further, the study uses econometric techniques robust to cross-sectional dependence (CSD) which include Pesaran's CSD tests, second-generation unit root test, Pedroni, Kao, Westerlund cointegration test, FMOLS, DCCE, Driscoll–Kraay (DK) regression, and D&H causality tests.FindingsICT diffusion and economic growth have a significant and favorable impact on women's empowerment. However, fertility rates and trade openness harm women's empowerment. In addition, the causality test results depict a bidirectional causal relationship between ICT and women empowerment and between growth and women empowerment. In addition, unidirectional causality is detected between education and women's empowerment. Overall, the findings indicate that expanding ICT and bridging the digital divide, particularly among women, can be effective in achieving empowerment-related SDGs.Originality/valueTo date, there are hardly any studies in SAARC context that empirically evaluate the link between ICT, women empowerment, and the issue of sustainability in a unified framework. Therefore, this study is unique in terms of conceptualization and methodological robustness in this context. The study will benefit policymakers and regulatory bodies to formulate appropriate policies to empower women and thereby attain the SDGs by 2030.","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"80 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2022-08-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86118246","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-18DOI: 10.1108/jeas-08-2021-0166
Aisha Aziz, Jawad Iqbal, Muhammad Hamid Murtza, Shahzad Ali Gill, Iqra Yousuf Cheema
PurposeThe breakout of the COVID-19 pandemic has forced governments all over the globe to bring radical changes to all walks of life. Strict lockdowns are not only adversely affecting the social, economic, and psychological wellbeing of individuals but also questioning the sustainability of most businesses. In wake of the current scenario, this study is aimed at exploring how the COVID-19 pandemic is influencing the sustainability of entrepreneurship particularly from a female perspective and further providing insights into the role of Islamic financial institutions in the sustainability of businesses during COVID-19.Design/methodology/approachThis is a qualitative study that takes social constructivism approach to study the underlying phenomenon. Semi-structured interviews are conducted to collect primary data. Secondary data are also utilized in this study to theoretically define various concepts relating to entrepreneurial sustainability. The application of thematic analysis revealed various risks associated with sustainability. The interviews reveal the ground realities and tell us about the hardships being faced by the entrepreneurs due to ongoing crises. The participants of the study also shed light on the role of Islamic financial institutions during the pandemic.FindingsThe study results revealed that it may look impossible for women entrepreneurs to halt or avoid the adverse consequences of the pandemic; however, a few female entrepreneurs strived to guard their existing portfolios with the help of Islamic microfinance institutions. Whereas, several women, especially those running home-based businesses, lost their income streams. Despite these rapid challenges, most female entrepreneurs are working on inventive online systems to sustain their business activities during the crisis. Finally, guidelines are suggested which can help achieve sustainability of the entrepreneurial startups.Research limitations/implicationsThe outcomes of this study are expedient for funding agencies, government authorities and Islamic financial institutions as well as for non-government institutions to establish sustainable and broader policies for women to become successful entrepreneurs during severe disasters like COVID-19. Moreover, the study is a helpful tool for women entrepreneurs to avert the worst impact of the pandemic with the help of Islamic microfinance institutions. The themes of this study help generate realistic information to appraise the strategies to create facilitating business environments that drive the women to carry out the entrepreneurial activity during any crisis like the COVID-19.Practical implicationsThe results of this study provide evidence that crisis can be anticipated up to some extent if entrepreneurs become able to take proactive decisions in case of expected or identifiable threats. The study may also help the women entrepreneurs to comprehend the serious consequences of the pandemic by shifting their mode of financing to Is
{"title":"Effect of COVID-19 pandemic on women entrepreneurial sustainability: the role of Islamic microfinance institutions","authors":"Aisha Aziz, Jawad Iqbal, Muhammad Hamid Murtza, Shahzad Ali Gill, Iqra Yousuf Cheema","doi":"10.1108/jeas-08-2021-0166","DOIUrl":"https://doi.org/10.1108/jeas-08-2021-0166","url":null,"abstract":"PurposeThe breakout of the COVID-19 pandemic has forced governments all over the globe to bring radical changes to all walks of life. Strict lockdowns are not only adversely affecting the social, economic, and psychological wellbeing of individuals but also questioning the sustainability of most businesses. In wake of the current scenario, this study is aimed at exploring how the COVID-19 pandemic is influencing the sustainability of entrepreneurship particularly from a female perspective and further providing insights into the role of Islamic financial institutions in the sustainability of businesses during COVID-19.Design/methodology/approachThis is a qualitative study that takes social constructivism approach to study the underlying phenomenon. Semi-structured interviews are conducted to collect primary data. Secondary data are also utilized in this study to theoretically define various concepts relating to entrepreneurial sustainability. The application of thematic analysis revealed various risks associated with sustainability. The interviews reveal the ground realities and tell us about the hardships being faced by the entrepreneurs due to ongoing crises. The participants of the study also shed light on the role of Islamic financial institutions during the pandemic.FindingsThe study results revealed that it may look impossible for women entrepreneurs to halt or avoid the adverse consequences of the pandemic; however, a few female entrepreneurs strived to guard their existing portfolios with the help of Islamic microfinance institutions. Whereas, several women, especially those running home-based businesses, lost their income streams. Despite these rapid challenges, most female entrepreneurs are working on inventive online systems to sustain their business activities during the crisis. Finally, guidelines are suggested which can help achieve sustainability of the entrepreneurial startups.Research limitations/implicationsThe outcomes of this study are expedient for funding agencies, government authorities and Islamic financial institutions as well as for non-government institutions to establish sustainable and broader policies for women to become successful entrepreneurs during severe disasters like COVID-19. Moreover, the study is a helpful tool for women entrepreneurs to avert the worst impact of the pandemic with the help of Islamic microfinance institutions. The themes of this study help generate realistic information to appraise the strategies to create facilitating business environments that drive the women to carry out the entrepreneurial activity during any crisis like the COVID-19.Practical implicationsThe results of this study provide evidence that crisis can be anticipated up to some extent if entrepreneurs become able to take proactive decisions in case of expected or identifiable threats. The study may also help the women entrepreneurs to comprehend the serious consequences of the pandemic by shifting their mode of financing to Is","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"30 4 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80405143","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-18DOI: 10.1108/jeas-09-2021-0177
O. G. Onatunji
PurposeThe current wave of decreasing electricity supply to meet the immediate demand of the populace is influencing not only economic growth but also the industrial productivity of the ECOWAS sub-region. In this context, this paper investigates the long-run and causal relationships between electricity consumption and industrial output in selected ECOWAS countries over the period 1971–2017.Design/methodology/approachThe Autoregressive Distributed Lag (ARDL) bound testing approach is employed to determine the existence of relationships among the variables. The causal nexus between electricity consumption and industrial output is examined using both the Toda-Yamamoto causality test and the bootstrap-corrected causality technique.FindingsThe long run results indicated that increasing electricity supply enhances industrial output only in Benin, Cote d'Ivoire, Gambia, Guinea, Liberia, Nigeria, Senegal, and Sierra Leone. Furthermore, the causality test results confirmed the presence of all four hypotheses in this study, but the two causality tests agree, particularly in the evidence of growth and neutrality hypotheses. In the cases of Benin, Burkina Faso, Gambia, Ghana, Nigeria, and Sierra Leone, a unilateral causality running from electricity consumption to industrial output is found. However, no evidence of causality between electricity consumption and industrial production has been confirmed in Cote d'Ivoire, Guinea Bissau, Liberia and Niger.Practical implicationsThe relevant energy stakeholders in the subregion need to reprioritize their policy framework to focus more on the electricity sector of their economies since electricity consumption is identified as an important driver of industrial growth in the West African countries.Originality/valueThis is the first study to provide a comparative and country-specific investigation of the nexus between electricity consumption and industrial output in Africa, particularly in the West African region.
{"title":"Electricity consumption and industrial output: fresh evidence from economic community of West African states (ECOWAS)","authors":"O. G. Onatunji","doi":"10.1108/jeas-09-2021-0177","DOIUrl":"https://doi.org/10.1108/jeas-09-2021-0177","url":null,"abstract":"PurposeThe current wave of decreasing electricity supply to meet the immediate demand of the populace is influencing not only economic growth but also the industrial productivity of the ECOWAS sub-region. In this context, this paper investigates the long-run and causal relationships between electricity consumption and industrial output in selected ECOWAS countries over the period 1971–2017.Design/methodology/approachThe Autoregressive Distributed Lag (ARDL) bound testing approach is employed to determine the existence of relationships among the variables. The causal nexus between electricity consumption and industrial output is examined using both the Toda-Yamamoto causality test and the bootstrap-corrected causality technique.FindingsThe long run results indicated that increasing electricity supply enhances industrial output only in Benin, Cote d'Ivoire, Gambia, Guinea, Liberia, Nigeria, Senegal, and Sierra Leone. Furthermore, the causality test results confirmed the presence of all four hypotheses in this study, but the two causality tests agree, particularly in the evidence of growth and neutrality hypotheses. In the cases of Benin, Burkina Faso, Gambia, Ghana, Nigeria, and Sierra Leone, a unilateral causality running from electricity consumption to industrial output is found. However, no evidence of causality between electricity consumption and industrial production has been confirmed in Cote d'Ivoire, Guinea Bissau, Liberia and Niger.Practical implicationsThe relevant energy stakeholders in the subregion need to reprioritize their policy framework to focus more on the electricity sector of their economies since electricity consumption is identified as an important driver of industrial growth in the West African countries.Originality/valueThis is the first study to provide a comparative and country-specific investigation of the nexus between electricity consumption and industrial output in Africa, particularly in the West African region.","PeriodicalId":44018,"journal":{"name":"Journal of Economic and Administrative Sciences","volume":"69 1","pages":""},"PeriodicalIF":1.8,"publicationDate":"2022-08-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78206442","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-16DOI: 10.1108/jeas-05-2022-0121
H. Almustafa, Ismail Kalash
PurposeThis paper investigates the impact of financial leverage on corporate cash holdings in the Middle East and North African (MENA) emerging markets.Design/methodology/approachThe author applies the dynamic modeling approach to data from nonfinancial firms listed in 10 MENA countries between 2010 and 2019. The empirical model avoids the shortcomings of the prior literature by including indicators of the dynamics of the financial leverage to account for its persistence in the corporate cash holdings reserves.FindingsThis research reports a significant negative relationship between corporate cash holdings and financial leverage. The results support the pecking order model, suggesting that leverage can be regarded as a substitute for holding a larger amount of cash and marketable securities. The author argues that the negative relationship between financial leverage and corporate cash holdings reinforces the precautionary motive to have internal cash reserves rather than external debt to support capital and investment activities by firms in the MENA emerging markets.Practical implicationsThe results of this research provide important insights into cash and capital structure management for nonfinancial listed firms in the MENA emerging markets. Specifically, the paper will help managers to understand the dynamic financial leverage determinants of holding cash in corporations in the MENA emerging markets and encourage policymakers to financially determine the corporate capital structure and cash holdings based on cost and benefits. Managing the firm's capital structure and cash holdings based on trade-offs between costs and benefits would enhance operating cash flow which may play an important role in creating value for shareholders.Originality/valuePrior studies have commonly been concerned with the determinants of corporate cash holdings, but few have investigated the dynamic financial leverage determinants of corporate cash holdings. This paper draws attention to this issue within the context of MENA emerging markets. To the authors' best knowledge, this is the first study that explores the relationship between cash holdings and financial leverage in MENA emerging markets.
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Pub Date : 2022-08-12DOI: 10.1108/jeas-10-2021-0207
S. Syed, S. Memon, Abdul Qadir Shah
PurposeThe qualitative study was conducted to examine work-family (W-F) balance practices in the collectivist culture of Pakistan. Keeping in view the context of Pakistan, three W-F practices, flexibility, childcare arrangement and social support, were studied by applying the theory of W-F balance.Design/methodology/approachIn total, 16 In-depth interviews from the bank operating in three different cities in Sindh, Pakistan.FindingsData analysis showed that providing economic benefits and short working hours can achieve W-F balance. Nevertheless, the provision of flexibility in terms of short working hours is more important than economic benefits in balancing both domains of life. Secondly, the provision of childcare arrangements helps to balance work and home life. This practice favors females more compared to males. Thirdly, supervisor and co-worker support is most important in creating W-F balance than family support.Research limitations/implicationsIt is crucial to understand the W-F balance practices in developing countries; the bank should encourage policies related to flexibility, childcare arrangement and social support in Pakistan. In addition, banks should take the initiative to develop a way that facilitates the employees' social support, which should consequently help to achieve the W-F balance.Practical implicationsIt is crucial to understand the W-F balance practices in developing countries; the bank should encourage policies related to flexibility, childcare arrangement and social support in Pakistan. Banks should take an initiative to develop a way that facilitates the employees' social support which should consequently help to achieve the W-F balance.Social implicationsThis research has a tremendous impact on society due to current changes in South Asian countries including Pakistan constitute a socio-cultural transition that directly affects working and family life.Originality/valueGiven the importance of W-F balance in recent times, the authors identified and extended the W-F balance practices in the collectivist culture of Pakistan. This study is novel and contributes to the W-F balance literature by considering most primary W-F balance practices that employees require.
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