Pub Date : 2021-12-31DOI: 10.26710/jafee.v7i4.2068
Muhammad Akbar Ali Ansari, Muhammad Sajid, A. Khan, Tanveer Ahmed
Purpose: The study aims to evaluate the impact of the cost of financing, customer loyalty, and customer security on customer satisfaction with financial services as moderating effects in the context of Pakistan. The purpose of the study is to provide the financial services concept between the cost of financing, customer loyalty, customer security, and customer satisfaction. Methodology: Data is gathered through the use of a questionnaire. A total of 330 respondents from Pakistan's five largest banks participated in the study. The information gathered pertains to the various roles that bank personnel play on behalf of bank clients. The sample approach utilised in this study is a convenience sampling method. The SPSS program is used to evaluate the data on the demographics of the area. The PLS-SEM (partial least squares equation model) is used to investigate the conceptual model. Findings: To achieve banking goals in the long term, financial service quality has a favorable impact on customer loyalty and satisfaction, as well as on the cost of financing. Even in the conventional banking sector, the quality of financial services is not adhered to. Financing prices, customer loyalty, customer security, and customer satisfaction all have a direct correlation to the quality of financial services. Practical Implications: To generate high profits and productivity, financial organizations must develop the quality mechanisms to get the best results from customer satisfaction goals.
{"title":"Factors of Customer Satisfaction in Service Sector: Does Quality of Service Matter?","authors":"Muhammad Akbar Ali Ansari, Muhammad Sajid, A. Khan, Tanveer Ahmed","doi":"10.26710/jafee.v7i4.2068","DOIUrl":"https://doi.org/10.26710/jafee.v7i4.2068","url":null,"abstract":"Purpose: The study aims to evaluate the impact of the cost of financing, customer loyalty, and customer security on customer satisfaction with financial services as moderating effects in the context of Pakistan. The purpose of the study is to provide the financial services concept between the cost of financing, customer loyalty, customer security, and customer satisfaction. \u0000Methodology: Data is gathered through the use of a questionnaire. A total of 330 respondents from Pakistan's five largest banks participated in the study. The information gathered pertains to the various roles that bank personnel play on behalf of bank clients. The sample approach utilised in this study is a convenience sampling method. The SPSS program is used to evaluate the data on the demographics of the area. The PLS-SEM (partial least squares equation model) is used to investigate the conceptual model. \u0000Findings: To achieve banking goals in the long term, financial service quality has a favorable impact on customer loyalty and satisfaction, as well as on the cost of financing. Even in the conventional banking sector, the quality of financial services is not adhered to. Financing prices, customer loyalty, customer security, and customer satisfaction all have a direct correlation to the quality of financial services. \u0000Practical Implications: To generate high profits and productivity, financial organizations must develop the quality mechanisms to get the best results from customer satisfaction goals.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"74 5 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89202491","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 : 2021-12-31DOI: 10.26710/jafee.v7i4.1917
M. Adnan, Samia Zarrar, K. Zafar
Purpose: Using data from 200 hotel guests in Multan, Pakistan, this research aims to evaluate the influence of service quality and pricing fairness on consumer loyalty while moderating the role of information literacy. Design/Methodology/Approach/Findings: The findings are estimated using partial least square (PLS). The variables service quality, pricing justice, and information literacy are all positively and substantially connected to customer loyalty, according to PLS estimations. Because the link between service quality and customer loyalty is statistically significant, the results of the moderated regression demonstrate that information literacy positively moderates it. On the other hand, while the link between price fairness and customer loyalty is statistically significant, the variable information literacy acts as a negative moderator. Implications/Originality/Value: Hotel management are advised to invest in and increase the quality of service. Managers must maintain control of all activities related to the concept of quality from the bottom to the top of their business.
{"title":"Impact of Service Quality and Price Fairness on Consumer Loyalty: The Moderating Role of Information Literacy","authors":"M. Adnan, Samia Zarrar, K. Zafar","doi":"10.26710/jafee.v7i4.1917","DOIUrl":"https://doi.org/10.26710/jafee.v7i4.1917","url":null,"abstract":"Purpose: Using data from 200 hotel guests in Multan, Pakistan, this research aims to evaluate the influence of service quality and pricing fairness on consumer loyalty while moderating the role of information literacy. \u0000Design/Methodology/Approach/Findings: The findings are estimated using partial least square (PLS). The variables service quality, pricing justice, and information literacy are all positively and substantially connected to customer loyalty, according to PLS estimations. Because the link between service quality and customer loyalty is statistically significant, the results of the moderated regression demonstrate that information literacy positively moderates it. On the other hand, while the link between price fairness and customer loyalty is statistically significant, the variable information literacy acts as a negative moderator. \u0000Implications/Originality/Value: Hotel management are advised to invest in and increase the quality of service. Managers must maintain control of all activities related to the concept of quality from the bottom to the top of their business.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"13 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74254552","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 : 2021-12-31DOI: 10.26710/jafee.v7i4.2072
Azam Khan, Saqib Ghias, S. Hyder
Purpose: The article covers the prospects, challenges and criticism of Islamic Banking. There is still a confusion among people about the differences in Islamic and commercial banking. The implementation of Islamic banking is not as per the true spirit with which it was started. Methodology/Approach: A systematic literature review was conducted and a thorough research was carried out by studying 2725 articles and finally qualifying thirty articles (30 articles) for the review Findings: The results revealed that there is still a confusion among people regarding the difference between Islamic and Conventional banking. The Islamic banks should organize more awareness programs to improve the knowledge of people regarding Islamic banks. The social objectives of Islamic banks are not highlighted from their operations. Implications/Originality/Value: This articles contributes to the literature by giving important insights regarding the Islamic Banking industry. The Islamic Banks can definitely improve by adopting the suggestions given in paper.
{"title":"Islamic Banking Prospects, Challenges, and Criticism- A Systematic Literature Review","authors":"Azam Khan, Saqib Ghias, S. Hyder","doi":"10.26710/jafee.v7i4.2072","DOIUrl":"https://doi.org/10.26710/jafee.v7i4.2072","url":null,"abstract":"Purpose: The article covers the prospects, challenges and criticism of Islamic Banking. There is still a confusion among people about the differences in Islamic and commercial banking. The implementation of Islamic banking is not as per the true spirit with which it was started. \u0000Methodology/Approach: A systematic literature review was conducted and a thorough research was carried out by studying 2725 articles and finally qualifying thirty articles (30 articles) for the review \u0000Findings: The results revealed that there is still a confusion among people regarding the difference between Islamic and Conventional banking. The Islamic banks should organize more awareness programs to improve the knowledge of people regarding Islamic banks. The social objectives of Islamic banks are not highlighted from their operations. \u0000Implications/Originality/Value: This articles contributes to the literature by giving important insights regarding the Islamic Banking industry. The Islamic Banks can definitely improve by adopting the suggestions given in paper.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"453 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82930277","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 : 2021-12-31DOI: 10.26710/jafee.v7i4.2004
Muhammad Waqas Ashraf, Habib Ullah, Muhammad Athar Bashir, Hafiz Muhammad Uzair Asghar
Purpose: The purpose of this study is to comprehend the dynamics of dividend payout in Pakistan’s oil and gas sector. This study is an attempt to differentiate that what are factors force firms to distribute dividends instead of enhancing retained earnings. To draw the required results 13 listed oil and gas companies have been incorporated in this study and their 5 years’ data has been studied. Design/Methodology/Approach: This study is quantitative and secondary data has been used to extract results. The sources of the data are financial statements of the companies under study. Fixed and random effects of regression were used for data analysis. Findings: Based on this study, it can be concluded that the independent variables selected in this model have the power to explain the dependent variable by 45%, which means the results generated through this study can be given importance accordingly in the oil and gas sector of Pakistan. The explanatory variables were identified from the prior literature and then their impact on dividend payout ratio was studied. Implications/Originality/Value: It is evident from the results of the study that management can take necessary steps to formulate a mutually beneficial dividend policy that can enhance the strength and effectiveness of these explanatory variables to enforce a dividend policy that fulfils the expectations of both the investors and the company. The investors can also evaluate different factors that might have an impact on dividend distribution and they can also get the ability to determine dividend payout ratio which made the basis for decision making for investment in the given sector.
{"title":"Corporate Tax Operating Cash flow and Sales Growth and their Impact on Dividend Payout Ratio in Oil and Gas Companies Listed in Karachi Stock Exchange (KSE)","authors":"Muhammad Waqas Ashraf, Habib Ullah, Muhammad Athar Bashir, Hafiz Muhammad Uzair Asghar","doi":"10.26710/jafee.v7i4.2004","DOIUrl":"https://doi.org/10.26710/jafee.v7i4.2004","url":null,"abstract":"Purpose: The purpose of this study is to comprehend the dynamics of dividend payout in Pakistan’s oil and gas sector. This study is an attempt to differentiate that what are factors force firms to distribute dividends instead of enhancing retained earnings. To draw the required results 13 listed oil and gas companies have been incorporated in this study and their 5 years’ data has been studied. \u0000Design/Methodology/Approach: This study is quantitative and secondary data has been used to extract results. The sources of the data are financial statements of the companies under study. Fixed and random effects of regression were used for data analysis. \u0000Findings: Based on this study, it can be concluded that the independent variables selected in this model have the power to explain the dependent variable by 45%, which means the results generated through this study can be given importance accordingly in the oil and gas sector of Pakistan. The explanatory variables were identified from the prior literature and then their impact on dividend payout ratio was studied. \u0000Implications/Originality/Value: It is evident from the results of the study that management can take necessary steps to formulate a mutually beneficial dividend policy that can enhance the strength and effectiveness of these explanatory variables to enforce a dividend policy that fulfils the expectations of both the investors and the company. The investors can also evaluate different factors that might have an impact on dividend distribution and they can also get the ability to determine dividend payout ratio which made the basis for decision making for investment in the given sector.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"105 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85191200","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 : 2021-12-31DOI: 10.26710/jafee.v7i4.2103
Nasir Sharif Chauhdary, Bushra Ghufran, Maria Shams Khakwani
Purpose: Market bubbles and crashes remain unexplainable by classical finance theories. Because the history of the Pakistan Stock Exchange has been marked by occasional market bubbles and crashes, a behavioral study is conducted to investigate the impact of investor’s behavioral biases on investment performance. Design/Methodology/Approach: Our research investigates behavioral biases and examines the role of such biases in the selection of investment decision methods. We then investigate the direct impact of behavioral biases on investors' investment performance, as well as how investment analysis methods play a role in mediating the impact of behavioral biases on investment performance. We identified 11 irrational behavior biases based on existing literature and in-depth interviews with brokers, and two decision analysis methods are used: fundamental and technical. Findings: Our findings show that PSX investors exhibit moderately high levels of irrational behavior. Despite their moderately high level of irrationality, investors can use fundamental analysis to make better decisions and achieve better results. Since they use fundamental analysis method, they are boundedly rational rather than completely irrational. Implications/Originality/Value: The fundamental analysis does not fully mediate three determinants of irrationality, namely anchoring, control, and overconfidence. Individual investors and brokers are concerned about reducing the impact of these three biases in order to achieve optimal performance. Brokerage firms and fund managers are recommended to consider the behavioral aspects of investors to predict the future because behavioral factors of investors can not only shape the investment trend of individuals but also the market at large.
{"title":"Impact of Behavioral Biases and Decision Analysis Methods on Investment Performance of Individual Investors at PSX","authors":"Nasir Sharif Chauhdary, Bushra Ghufran, Maria Shams Khakwani","doi":"10.26710/jafee.v7i4.2103","DOIUrl":"https://doi.org/10.26710/jafee.v7i4.2103","url":null,"abstract":"Purpose: Market bubbles and crashes remain unexplainable by classical finance theories. Because the history of the Pakistan Stock Exchange has been marked by occasional market bubbles and crashes, a behavioral study is conducted to investigate the impact of investor’s behavioral biases on investment performance. Design/Methodology/Approach: Our research investigates behavioral biases and examines the role of such biases in the selection of investment decision methods. We then investigate the direct impact of behavioral biases on investors' investment performance, as well as how investment analysis methods play a role in mediating the impact of behavioral biases on investment performance. We identified 11 irrational behavior biases based on existing literature and in-depth interviews with brokers, and two decision analysis methods are used: fundamental and technical. \u0000Findings: Our findings show that PSX investors exhibit moderately high levels of irrational behavior. Despite their moderately high level of irrationality, investors can use fundamental analysis to make better decisions and achieve better results. Since they use fundamental analysis method, they are boundedly rational rather than completely irrational. \u0000Implications/Originality/Value: The fundamental analysis does not fully mediate three determinants of irrationality, namely anchoring, control, and overconfidence. Individual investors and brokers are concerned about reducing the impact of these three biases in order to achieve optimal performance. Brokerage firms and fund managers are recommended to consider the behavioral aspects of investors to predict the future because behavioral factors of investors can not only shape the investment trend of individuals but also the market at large.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"23 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78866207","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 : 2021-12-31DOI: 10.26710/jafee.v7i4.2079
I. Chaudhry, Asia Iqbal, Muhammad Umar, Muhammad Faheem
Purpose: This study aims to explore the impact of monetary policy on inflation and investment in Pakistan. Methodology: Our study employs the Autoregressive distributed lag model (ARDL) over the time of 1972 to 2019. Findings: The empirical findings show that in the long-run impact of money supply has significant and positive on investment and other variables trade, foreign direct investment, gross domestic saving, services are also positively associated with the investment. While other variables interest rate and exchange rate negatively linked with investment. Empirical findings of the second econometric model show the core variable money supply has a significant and positive on inflation including other variables foreign direct investment, exchange rate, exports and government expenditures on education but other variables interest rate, gross domestic saving and agriculture output negatively linked with inflation. Implications: The study indicates that a stable monetary policy should be introduced to improve a country's economic development. Monetary policy should be used to build an agreeable environment of uncertainty that draws both domestic and outside investors to promote economic growth. Economic growth can be accomplished by encouraging efficient monetary policy steps for inflation stability and attractive interest rates.
{"title":"Impact of Monetary Policy on Inflation and Investment in Pakistan: A Time Series Analysis","authors":"I. Chaudhry, Asia Iqbal, Muhammad Umar, Muhammad Faheem","doi":"10.26710/jafee.v7i4.2079","DOIUrl":"https://doi.org/10.26710/jafee.v7i4.2079","url":null,"abstract":"Purpose: This study aims to explore the impact of monetary policy on inflation and investment in Pakistan. \u0000Methodology: Our study employs the Autoregressive distributed lag model (ARDL) over the time of 1972 to 2019. \u0000Findings: The empirical findings show that in the long-run impact of money supply has significant and positive on investment and other variables trade, foreign direct investment, gross domestic saving, services are also positively associated with the investment. While other variables interest rate and exchange rate negatively linked with investment. Empirical findings of the second econometric model show the core variable money supply has a significant and positive on inflation including other variables foreign direct investment, exchange rate, exports and government expenditures on education but other variables interest rate, gross domestic saving and agriculture output negatively linked with inflation. \u0000Implications: The study indicates that a stable monetary policy should be introduced to improve a country's economic development. Monetary policy should be used to build an agreeable environment of uncertainty that draws both domestic and outside investors to promote economic growth. Economic growth can be accomplished by encouraging efficient monetary policy steps for inflation stability and attractive interest rates.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"191 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79627638","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 : 2021-12-31DOI: 10.26710/jafee.v7i4.2091
Khadim Nabi, M. M. Shafi
Purpose: This study was an effort with the aim to study livelihoods and food security status in rural areas of Khyber Pakhtunkhwa province, Pakistan. Design/Methodology/Approach: Three districts of the province were confined and research data from randomly selected 336 households were collected. Livelihoods was analyzed by investigating livelihood strategies pursued by the households while food security status was measured through calorie intake method. Findings: The study examined that diversified livelihood strategies were pursued by the households; and noticed that farm was the prime strategy of 34.52% households while non-farm was the strategy of 65.48% households The incidence of food secure and insecure households was 57.44% and 42.56%, respectively; and FSI of the food secure households averaged 1.26 and food insecure households averaged 0.79. Implications/Originality/Value: There is dire need to provide opportunities for a sustainable livelihood strategy at household level that could ultimately move them from worse to better food security status.
{"title":"Analysis of Livelihoods and Food Security among Rural Households of Khyber Pakhtunkhwa, Pakistan","authors":"Khadim Nabi, M. M. Shafi","doi":"10.26710/jafee.v7i4.2091","DOIUrl":"https://doi.org/10.26710/jafee.v7i4.2091","url":null,"abstract":"Purpose: This study was an effort with the aim to study livelihoods and food security status in rural areas of Khyber Pakhtunkhwa province, Pakistan. \u0000Design/Methodology/Approach: Three districts of the province were confined and research data from randomly selected 336 households were collected. Livelihoods was analyzed by investigating livelihood strategies pursued by the households while food security status was measured through calorie intake method. \u0000Findings: The study examined that diversified livelihood strategies were pursued by the households; and noticed that farm was the prime strategy of 34.52% households while non-farm was the strategy of 65.48% households The incidence of food secure and insecure households was 57.44% and 42.56%, respectively; and FSI of the food secure households averaged 1.26 and food insecure households averaged 0.79. \u0000Implications/Originality/Value: There is dire need to provide opportunities for a sustainable livelihood strategy at household level that could ultimately move them from worse to better food security status.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"9 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81566190","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 : 2021-12-31DOI: 10.26710/jafee.v7i4.2002
Umair Khan, Umair Khalid, Fatima Farooq
Purpose: The current research aims to analyze the particular quagmire of endogeneity by considering panel data with the renowned challenge of limited periods. Design/Methodology/Approach: More specifically, the empirical methodology is applied to a novel sector of Telecommunications in Pakistan by analyzing the possible relationship between Operational Risk and a Telecommunication company’s financial performance. The efficacy of the results is further tested by additional tests of GMM. Operational risk in the study is proxied with three variables. Performance is measured in terms of Returns with respect to Equity holders and Total Assets. From the point of view of management, Asset utilization is also used as a proxy for financial performance. Findings: Results show a presence of a significant and a negative relationship between operational risk and management performance and returns, thereby emphasizing the importance of operational risk management for enhanced performance in light of the theory of performance frontiers introduced by Schmenner and Swink in 1998. Implications/Originality/Value: The results suggest that the focus on operational risk management should be revitalized if the firms seek improved performance and a sustainable competitive advantage.
{"title":"The Endogeneity Quagmire Empirical Evidence from Telecommunication Industry of Pakistan","authors":"Umair Khan, Umair Khalid, Fatima Farooq","doi":"10.26710/jafee.v7i4.2002","DOIUrl":"https://doi.org/10.26710/jafee.v7i4.2002","url":null,"abstract":"Purpose: The current research aims to analyze the particular quagmire of endogeneity by considering panel data with the renowned challenge of limited periods. \u0000Design/Methodology/Approach: More specifically, the empirical methodology is applied to a novel sector of Telecommunications in Pakistan by analyzing the possible relationship between Operational Risk and a Telecommunication company’s financial performance. The efficacy of the results is further tested by additional tests of GMM. Operational risk in the study is proxied with three variables. Performance is measured in terms of Returns with respect to Equity holders and Total Assets. From the point of view of management, Asset utilization is also used as a proxy for financial performance. \u0000Findings: Results show a presence of a significant and a negative relationship between operational risk and management performance and returns, thereby emphasizing the importance of operational risk management for enhanced performance in light of the theory of performance frontiers introduced by Schmenner and Swink in 1998. \u0000Implications/Originality/Value: The results suggest that the focus on operational risk management should be revitalized if the firms seek improved performance and a sustainable competitive advantage.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"3 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88031465","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 : 2021-12-15DOI: 10.26710/jafee.v7i3.1881
Immaculate Simiso Nxumalo, P. Makoni
Purpose: The purpose of the study was to examine the key determinants of foreign direct investment (FDI) and foreign portfolio investment (FPI) in emerging market economies, with greater emphasis placed on the impact of institutional quality. Design/Methodology/Approach: The study applied a panel data system generalised method of moments (GMM) model using annual data spanning the period 2007 to 2017, in respect of 12 emerging market economies. To measure institutional quality, the study adopted the Worldwide Governance Indicators, and constructed a composite index for institutional quality using the Principal Components Analysis (PCA) method. Findings: The results revealed that FDI in the selected emerging markets was attracted by institutional quality and economic growth. Capital account openness, institutional quality and economic growth were positive determinants of FPI. However, stock market development stood out as the key determinant factor for foreign capital inflows. Implications/Originality/Value: The implications of these findings are that, in their pursuit of foreign capital inflows, these emerging markets should continue to liberalise their economies and develop their financial markets. Importantly, such developments must be coupled with the strengthening of the formal governance institutions. Robust institutions would not only curb institutional weaknesses that deter international capital inflows, but would also insulate emerging markets from unfavourable effects of volatile capital flows.
{"title":"Determinants of Foreign Capital Inflows in Emerging Markets: The Role of Institutional Quality","authors":"Immaculate Simiso Nxumalo, P. Makoni","doi":"10.26710/jafee.v7i3.1881","DOIUrl":"https://doi.org/10.26710/jafee.v7i3.1881","url":null,"abstract":"Purpose: The purpose of the study was to examine the key determinants of foreign direct investment (FDI) and foreign portfolio investment (FPI) in emerging market economies, with greater emphasis placed on the impact of institutional quality. \u0000Design/Methodology/Approach: The study applied a panel data system generalised method of moments (GMM) model using annual data spanning the period 2007 to 2017, in respect of 12 emerging market economies. To measure institutional quality, the study adopted the Worldwide Governance Indicators, and constructed a composite index for institutional quality using the Principal Components Analysis (PCA) method. \u0000Findings: The results revealed that FDI in the selected emerging markets was attracted by institutional quality and economic growth. Capital account openness, institutional quality and economic growth were positive determinants of FPI. However, stock market development stood out as the key determinant factor for foreign capital inflows. \u0000Implications/Originality/Value: The implications of these findings are that, in their pursuit of foreign capital inflows, these emerging markets should continue to liberalise their economies and develop their financial markets. Importantly, such developments must be coupled with the strengthening of the formal governance institutions. Robust institutions would not only curb institutional weaknesses that deter international capital inflows, but would also insulate emerging markets from unfavourable effects of volatile capital flows. ","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"3 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86496472","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 : 2021-12-07DOI: 10.26710/jafee.v7i3.1926
Muhammad Adil Keerio, A. Talpur, Tooba Ameen, Meer Hassan Mari
Purpose: The study examined the impact of cash flow management practices on Pakistani cement firm’s financial performance with comparison of Indian cement sector’s selected firms. Methodology: The Pooled OLS Regression is applied with the Help of EViews software. The data collection is from official websites of the concerned companies from 2009 to 2018 with help of secondary source. The multiple regressions, Random Effect Model and Fixed effect models are used for the analysis of data and confirmed with Husman test. Findings: The finding of this study for both selected countries indicated the influence of cash flow management practices wherein both countries cement producing companies shows significant impact on firm’s performance but in terms of Pakistan Return on Assets have no impact on firm’s Profitability. Implications: Therefore, after a careful analysis study recommended that cement manufacturing companies must reevaluate their practices of managing cash flows in order to generate more profitability and generate enough cash to meet their obligations.
{"title":"The Impact of Cash Flow Management Practices on Financial Performance of Cement Manufacturing Firms: A Comparative Study of Pakistan and India","authors":"Muhammad Adil Keerio, A. Talpur, Tooba Ameen, Meer Hassan Mari","doi":"10.26710/jafee.v7i3.1926","DOIUrl":"https://doi.org/10.26710/jafee.v7i3.1926","url":null,"abstract":"Purpose: The study examined the impact of cash flow management practices on Pakistani cement firm’s financial performance with comparison of Indian cement sector’s selected firms. \u0000Methodology: The Pooled OLS Regression is applied with the Help of EViews software. The data collection is from official websites of the concerned companies from 2009 to 2018 with help of secondary source. The multiple regressions, Random Effect Model and Fixed effect models are used for the analysis of data and confirmed with Husman test. \u0000Findings: The finding of this study for both selected countries indicated the influence of cash flow management practices wherein both countries cement producing companies shows significant impact on firm’s performance but in terms of Pakistan Return on Assets have no impact on firm’s Profitability. \u0000Implications: Therefore, after a careful analysis study recommended that cement manufacturing companies must reevaluate their practices of managing cash flows in order to generate more profitability and generate enough cash to meet their obligations.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"14 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-12-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85033204","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}
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