Pub Date : 2021-09-30DOI: 10.26710/jafee.v7i3.1635
Nisar Ahmad Bazmi, Shumaila Abid, Samia S. Maqbool
The study explains the relationship of dividend payout policy on the business performance of companies that exist in Chemical of Pakistan. 100 companies are selected from Chemical sector. Relationship of dividend payout policy and business performance was controlled with four variables based on relevant theories. These variables include size of company, growth of company, leverage (debt to equity ratio) and corporate governance index. Panel data is collected from 2012-2017 (six years) and then analyzed with unit root, descriptive statistics, correlation analysis, OLS regression, Lagrange multiplier, Huasman test, Fixed effect and Random effect models. Following key findings for each research objective were obtained by applying the adopted research method on the data through the adopted method of analyses: The results showed that the no sign of a relationship between their dividend payout policy and profitability and so there is no controlling factor effective due to the absence of any relationship. Thus, the hypotheses were rejected.
{"title":"Bidirectional Relationship between Firm Performance and Dividend Payout Policy: A Study of Chemical Sector in Emerging Economies in Pakistan","authors":"Nisar Ahmad Bazmi, Shumaila Abid, Samia S. Maqbool","doi":"10.26710/jafee.v7i3.1635","DOIUrl":"https://doi.org/10.26710/jafee.v7i3.1635","url":null,"abstract":"The study explains the relationship of dividend payout policy on the business performance of companies that exist in Chemical of Pakistan. 100 companies are selected from Chemical sector. Relationship of dividend payout policy and business performance was controlled with four variables based on relevant theories. These variables include size of company, growth of company, leverage (debt to equity ratio) and corporate governance index. Panel data is collected from 2012-2017 (six years) and then analyzed with unit root, descriptive statistics, correlation analysis, OLS regression, Lagrange multiplier, Huasman test, Fixed effect and Random effect models. Following key findings for each research objective were obtained by applying the adopted research method on the data through the adopted method of analyses: The results showed that the no sign of a relationship between their dividend payout policy and profitability and so there is no controlling factor effective due to the absence of any relationship. Thus, the hypotheses were rejected.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"33 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75847986","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 : 2021-09-30DOI: 10.26710/jafee.v7i3.1986
M. Rashid, M. Haq, Umair Khalid, A. Basit
Purpose: Apart from standard spheres of financial institutions’ performance such as asset quality, profitability, liquidity and efficiency; the study investigates the influence of non-financial factors such as governance and management. Design/Methodology/Approach: This study utilizes 2009 through 2018 data for the sample of commercial banks and insurance companies of Pakistan to analyze the significance of financial and non-financial information on credit rating. The study is done by employing frequently used Fully Modified Ordinary Least Square (FMOLS). Findings: The main contribution lies including explanatory variables from various areas that have an impact on the financial position of the examined banks and insurance companies. Implications/Originality/Value: The obtained results suggest that the combined use of financial and non-financial information tends to a significant impact on credit rating.
{"title":"Significance of Financial and Non Financial Information on Credit Rating: An Empirical Study on Banking and Insurance Sectors of Pakistan","authors":"M. Rashid, M. Haq, Umair Khalid, A. Basit","doi":"10.26710/jafee.v7i3.1986","DOIUrl":"https://doi.org/10.26710/jafee.v7i3.1986","url":null,"abstract":"Purpose: Apart from standard spheres of financial institutions’ performance such as asset quality, profitability, liquidity and efficiency; the study investigates the influence of non-financial factors such as governance and management. \u0000Design/Methodology/Approach: This study utilizes 2009 through 2018 data for the sample of commercial banks and insurance companies of Pakistan to analyze the significance of financial and non-financial information on credit rating. The study is done by employing frequently used Fully Modified Ordinary Least Square (FMOLS). \u0000Findings: The main contribution lies including explanatory variables from various areas that have an impact on the financial position of the examined banks and insurance companies. \u0000Implications/Originality/Value: The obtained results suggest that the combined use of financial and non-financial information tends to a significant impact on credit rating.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"117 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79959375","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 : 2021-09-30DOI: 10.26710/jafee.v7i3.1907
S. Irfan, I. Iqbal, S. Iqbal, F. Bashir
Purpose: This study aims to examine the impact of Corporate Social Responsibility (CSR) image on customer satisfaction in the context of the banking sector of Pakistan. Further, the intervening role of customer trust and customer loyalty in the relationship between CSR image and customer satisfaction is also examined. Design/Methodology/Approach: Present research is quantitative in nature and collects the data through structured questionnaires. By employing the Smart PLS technique to test the proposed hypothesis. Findings: This study reveals the following salient findings: 1) the response of CSR image to customer satisfaction is positive (p<0.01); 2) customer trust and customer loyalty both significantly mediates the impact of CSR image on customer satisfaction. Implications/Originality/Value: Based on novel findings, the current study will help the organizations to realize the significance of CSR practices to enhance the customers’ satisfaction level.
{"title":"CSR Image and Customer Satisfaction: The Mediating Role of Customer Trust and Customer Loyalty","authors":"S. Irfan, I. Iqbal, S. Iqbal, F. Bashir","doi":"10.26710/jafee.v7i3.1907","DOIUrl":"https://doi.org/10.26710/jafee.v7i3.1907","url":null,"abstract":"Purpose: This study aims to examine the impact of Corporate Social Responsibility (CSR) image on customer satisfaction in the context of the banking sector of Pakistan. Further, the intervening role of customer trust and customer loyalty in the relationship between CSR image and customer satisfaction is also examined. \u0000Design/Methodology/Approach: Present research is quantitative in nature and collects the data through structured questionnaires. By employing the Smart PLS technique to test the proposed hypothesis. \u0000Findings: This study reveals the following salient findings: 1) the response of CSR image to customer satisfaction is positive (p<0.01); 2) customer trust and customer loyalty both significantly mediates the impact of CSR image on customer satisfaction. \u0000Implications/Originality/Value: Based on novel findings, the current study will help the organizations to realize the significance of CSR practices to enhance the customers’ satisfaction level.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"149 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75847054","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 : 2021-09-30DOI: 10.26710/jafee.v7i3.1979
Aly Raza Syed, K. Rehman, Q. Ali, A. Ramish
Purpose: This study intends to explore the key challenges the financial sector faces today about employees’ perspectives and how these challenges eventually play a role in the employee’s work-life balance. Design/Methodology/Approach: A Focus group was conducted with a leading multinational bank in Pakistan. Six managerial cadre employees participated in the focus group study. The focus group analysis suggests very stringent rules and regulations incorporated by SBP that bind each bank to undergo strict compliance. Findings: The challenge of customer retention, declining interest rates, coping with the frugal economic situation of the country, meeting customer satisfaction, incorporating personal relationship management, use of ancillary support services by customers, reward and recognition to employees, dealing with information savvy knowledgeable customers, work-life balance and overall motivation of the bank employees are assumed by the participants as the key challenges that drive the banking industry of Pakistan. Implications/Originality/Value: Senior management of the banking sector of Pakistan can learn from the problems discussed, and the possible solution proposed to the said problems. This research contributes to the body of knowledge while explaining the issues faced by the professionals working in the banking sector of Pakistan.
{"title":"Organizational and Personal Drivers of the Financial Sector: A Focus Group of Banking Officials in Pakistan","authors":"Aly Raza Syed, K. Rehman, Q. Ali, A. Ramish","doi":"10.26710/jafee.v7i3.1979","DOIUrl":"https://doi.org/10.26710/jafee.v7i3.1979","url":null,"abstract":"Purpose: This study intends to explore the key challenges the financial sector faces today about employees’ perspectives and how these challenges eventually play a role in the employee’s work-life balance. \u0000Design/Methodology/Approach: A Focus group was conducted with a leading multinational bank in Pakistan. Six managerial cadre employees participated in the focus group study. The focus group analysis suggests very stringent rules and regulations incorporated by SBP that bind each bank to undergo strict compliance. \u0000Findings: The challenge of customer retention, declining interest rates, coping with the frugal economic situation of the country, meeting customer satisfaction, incorporating personal relationship management, use of ancillary support services by customers, reward and recognition to employees, dealing with information savvy knowledgeable customers, work-life balance and overall motivation of the bank employees are assumed by the participants as the key challenges that drive the banking industry of Pakistan. \u0000Implications/Originality/Value: Senior management of the banking sector of Pakistan can learn from the problems discussed, and the possible solution proposed to the said problems. This research contributes to the body of knowledge while explaining the issues faced by the professionals working in the banking sector of Pakistan.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"62 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82351085","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 : 2021-09-30DOI: 10.26710/jafee.v7i3.1955
Hussain Khawaja, J. Khan, Noor Muhammad Jamali
Purpose: This research aims to explore the psychological biases in the investment behavior of Pakistani investors, which refers to the natural inclination of investors towards specific financial products based on certain perceptions developed through information or news relating to the issuer of financial products Design/Methodology/Approach: A sample of twelve actively participating investors were selected in this research contacted through telephone in which the conversations were tape-recorded with the consent of the interviewee. It was then transcribed and coded into Ms. Word, or themes were developed. Findings: Thematic analysis was conducted over the responses received; the results suggest that due to lack of training, knowledge relating to an investment in financial products, the behavior of investors is highly biased; partly either because of their association in the form of employment with issuing authorities or because of the news or information floated relating to financial products of the various companies. Implications/Originality/Value: The study has many practical implications; the financial managers and consultants can design financial management behavior practical learning approach to reduce biases. Also, stock stockbrokers, investors identify such biases and reduce their impact. Furthermore, this study highlights the philosophical paradigm through ontological and epistemological understanding.
{"title":"An Exploratory Inquiry into the Psychological Biases in Financial Investment Behavior Evidence from Pakistani Financial Markets","authors":"Hussain Khawaja, J. Khan, Noor Muhammad Jamali","doi":"10.26710/jafee.v7i3.1955","DOIUrl":"https://doi.org/10.26710/jafee.v7i3.1955","url":null,"abstract":"\u0000 \u0000 \u0000 \u0000Purpose: This research aims to explore the psychological biases in the investment behavior of Pakistani investors, which refers to the natural inclination of investors towards specific financial products based on certain perceptions developed through information or news relating to the issuer of financial products \u0000Design/Methodology/Approach: A sample of twelve actively participating investors were selected in this research contacted through telephone in which the conversations were tape-recorded with the consent of the interviewee. It was then transcribed and coded into Ms. Word, or themes were developed. \u0000Findings: Thematic analysis was conducted over the responses received; the results suggest that due to lack of training, knowledge relating to an investment in financial products, the behavior of investors is highly biased; partly either because of their association in the form of employment with issuing authorities or because of the news or information floated relating to financial products of the various companies. \u0000Implications/Originality/Value: The study has many practical implications; the financial managers and consultants can design financial management behavior practical learning approach to reduce biases. Also, stock stockbrokers, investors identify such biases and reduce their impact. Furthermore, this study highlights the philosophical paradigm through ontological and epistemological understanding. \u0000 \u0000 \u0000 \u0000","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"3 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85126104","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 : 2021-09-30DOI: 10.26710/jafee.v7i3.1902
M. Husnain, Mumtaz Ahmad, Aijaz Mustafa Hashmi
Purpose: Taxation basically occupies an important place in the strategic decisions of companies, therefore, business are thinking to adopt a dynamic and active method for tax management. This study examine the moderating role of board independence, and board size in the relation between tax avoidance, and business strategy in developing economy of the Pakistan. Design/Methodology/Approach: The sample of study consist of 125 non-financial companies listed on Pakistan stock exchange with time period of 5 years from 2013 to 2017 on annual basis. Study uses static (fixed effect, & random effect) and dynamic (GMM) panel data estimation techniques. Findings: The result shows that increase in board size of a prospector firm will increase its trend to avoid taxes. The finding also reveal that that an increase in the independent directors in prospector firms will decreases tax avoidance activities in emerging economies. Additionally, result shows that firm profitability and leverage are negatively related to tax payments while firm size show positive association with tax payments. Implications/Originality/Value: Among others, this study suggests that tax authorities should advocate the prospector firms to increase the number of independent directors on board because there presence cause a reduction in tax avoidance activities and increase tax payments.
{"title":"Analyzing the Moderating role of Board Structure in Relation between Tax Avoidance and Business Strategy: New Insight from Emerging Economy","authors":"M. Husnain, Mumtaz Ahmad, Aijaz Mustafa Hashmi","doi":"10.26710/jafee.v7i3.1902","DOIUrl":"https://doi.org/10.26710/jafee.v7i3.1902","url":null,"abstract":"Purpose: Taxation basically occupies an important place in the strategic decisions of companies, therefore, business are thinking to adopt a dynamic and active method for tax management. This study examine the moderating role of board independence, and board size in the relation between tax avoidance, and business strategy in developing economy of the Pakistan. \u0000Design/Methodology/Approach: The sample of study consist of 125 non-financial companies listed on Pakistan stock exchange with time period of 5 years from 2013 to 2017 on annual basis. Study uses static (fixed effect, & random effect) and dynamic (GMM) panel data estimation techniques. \u0000Findings: The result shows that increase in board size of a prospector firm will increase its trend to avoid taxes. The finding also reveal that that an increase in the independent directors in prospector firms will decreases tax avoidance activities in emerging economies. Additionally, result shows that firm profitability and leverage are negatively related to tax payments while firm size show positive association with tax payments. \u0000Implications/Originality/Value: Among others, this study suggests that tax authorities should advocate the prospector firms to increase the number of independent directors on board because there presence cause a reduction in tax avoidance activities and increase tax payments.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"3 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83853033","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 : 2021-09-30DOI: 10.26710/jafee.v7i3.1992
Nebat Galo Mugenda, T. Olweny, J. Wepukhulu
Purpose:Prior literature has focused on the direct effect of firm level fundamental characteristics on stock returns while ignoring the likely effect of investor irrationality on asset pricing decisions. The purpose of this study is to investigate the role of investor sentiment in the relationship between value risk premium and stock returns in Kenya. Design/methodology/approach: The study utilized monthly time series data for 60 companies listed at the NSE over the recent 9 years from 2011-2019. The study employed time series regression using ARDL and VEC estimation techniques to examine whether the effect of value risk on stock returns will vary with level of investor sentiment. Findings: Results show weak evidence for existence of value risk premium at the NSE using the main effects model. The pricing effect of value risk premium is however enhanced in the interaction model. The interaction though not significant implying that there is no moderating effect of sentiment. Research limitations: The shorter nine-year period considered by the study could be a source of small sample bias in the estimation. Sample periods for studies in mature markets span for over decades. In this light, making comparison of the findings in this thesis with those of other related studies may not be feasible. Originality/Value: This study is first of its kind to analyze the moderating effect of investor behavior on asset pricing for an emerging market. The paper contributes to portfolio management and asset pricing literature for emerging markets.
{"title":"Value Risk Premium and Stock Returns in Kenya: Exploring the Moderating Effect of Investor Sentiment","authors":"Nebat Galo Mugenda, T. Olweny, J. Wepukhulu","doi":"10.26710/jafee.v7i3.1992","DOIUrl":"https://doi.org/10.26710/jafee.v7i3.1992","url":null,"abstract":"Purpose:Prior literature has focused on the direct effect of firm level fundamental characteristics on stock returns while ignoring the likely effect of investor irrationality on asset pricing decisions. The purpose of this study is to investigate the role of investor sentiment in the relationship between value risk premium and stock returns in Kenya. \u0000Design/methodology/approach: \u0000The study utilized monthly time series data for 60 companies listed at the NSE over the recent 9 years from 2011-2019. The study employed time series regression using ARDL and VEC estimation techniques to examine whether the effect of value risk on stock returns will vary with level of investor sentiment. \u0000Findings: Results show weak evidence for existence of value risk premium at the NSE using the main effects model. The pricing effect of value risk premium is however enhanced in the interaction model. The interaction though not significant implying that there is no moderating effect of sentiment. \u0000Research limitations: The shorter nine-year period considered by the study could be a source of small sample bias in the estimation. Sample periods for studies in mature markets span for over decades. In this light, making comparison of the findings in this thesis with those of other related studies may not be feasible. \u0000Originality/Value: This study is first of its kind to analyze the moderating effect of investor behavior on asset pricing for an emerging market. The paper contributes to portfolio management and asset pricing literature for emerging markets.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82789275","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 : 2021-06-30DOI: 10.26710/jafee.v7i2.1785
Q. Khan, Rehana Kouser
Purpose: Profitability measurement is a comparative statistic that describes the relationships between overall profit and other financial determinants of the firm. Design/Methodology/Approach: The focus of this study is to measure the technical (TE), pure technical (PTE) and scale efficiency (SE) scores via Data Envelopment Analysis (DEA) of modaraba companies operating in Pakistan. The next stage is to study the empirical relationship between profitability, liquidity, leverage, and macroeconomic performance drivers. Financial statement data for 2010 to 2019 have been analyzed. Findings: Empirical findings of descriptive statistics, correlation and regression were measured. These empirical results reveal that capital ratio (CR) and operating expenses to net income (OENI) had negative correlation with PTE, SE and TE. Whereas the age of the firm had a negative correlation with PTE and TE and positive correlation with SE, moreover, exchange rate (EXC) PKR to USD, log of total assets (LTA) and management expenses (ME) had negative correlation with SE and positive correlation with PTE and TE. Furthermore, inflation (INF) had negative correlation with PTE and positive correlation with SE and TE. Moreover, number of certificates (NOC) had negative correlation with SE and TE and positive correlation with PTE. Implications/Originality/Value: Findings will be helpful to the management and policy makers for enhancing future financial performance by concentrating on these economic factors. More detailed and extensive data from the financial and non-financial aspects is suggested to support the hypothesized relationship of efficiency measures and determinants.
{"title":"Measurement and Determinants of Financial Performance of Modaraba Companies: A Case Study of Pakistan","authors":"Q. Khan, Rehana Kouser","doi":"10.26710/jafee.v7i2.1785","DOIUrl":"https://doi.org/10.26710/jafee.v7i2.1785","url":null,"abstract":"Purpose: Profitability measurement is a comparative statistic that describes the relationships between overall profit and other financial determinants of the firm. \u0000Design/Methodology/Approach: The focus of this study is to measure the technical (TE), pure technical (PTE) and scale efficiency (SE) scores via Data Envelopment Analysis (DEA) of modaraba companies operating in Pakistan. The next stage is to study the empirical relationship between profitability, liquidity, leverage, and macroeconomic performance drivers. Financial statement data for 2010 to 2019 have been analyzed. \u0000Findings: Empirical findings of descriptive statistics, correlation and regression were measured. These empirical results reveal that capital ratio (CR) and operating expenses to net income (OENI) had negative correlation with PTE, SE and TE. Whereas the age of the firm had a negative correlation with PTE and TE and positive correlation with SE, moreover, exchange rate (EXC) PKR to USD, log of total assets (LTA) and management expenses (ME) had negative correlation with SE and positive correlation with PTE and TE. Furthermore, inflation (INF) had negative correlation with PTE and positive correlation with SE and TE. Moreover, number of certificates (NOC) had negative correlation with SE and TE and positive correlation with PTE. \u0000Implications/Originality/Value: Findings will be helpful to the management and policy makers for enhancing future financial performance by concentrating on these economic factors. More detailed and extensive data from the financial and non-financial aspects is suggested to support the hypothesized relationship of efficiency measures and determinants.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"55 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80421327","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 : 2021-06-30DOI: 10.26710/JAFEE.V7I2.1670
M. Ali, K. Rehman, A. Maqbool, S. Hussain
Individual financial well-being is recognized as a major concern for the general welfare and social welfare of society. In this context, it is very important to understand how people can ensure good financial well-being. This article aims to explore the effects of financial literacy, risk tolerance, and risk perception on the financial well-being of individuals, with an emphasis on behavioral investment interventions. Quantitative research methods are used to measure the factors that affect financial well-being. A questionnaire was developed on Google Forms to collect data from people who have bank accounts. The sample of 318 Pakistanis supports the proposed hypothesis. Structural equation modeling (SEM) was used to evaluate the results. The results show that risk tolerance, risk perception and financial literacy influence people's investment behavior and ultimately their financial well-being. Individual financial behavior needs to be improved. In this context, there is an urgent need for financial education programs in the education system and centers of employment, behavioral development and financial literacy. Future research on this topic could benefit from collecting longitudinal data which could provide more relevant information for Pakistanis seeking to achieve better financial well-being. All measures used are reported separately and individually, measuring the risk that respondents will misinterpret questions and even interpret their behavior.
{"title":"The Impact of Behavioral Finance Factors and the Mediating Effect of Investment Behavior on Individual’s Financial Well-being: Empirical Evidence from Pakistan","authors":"M. Ali, K. Rehman, A. Maqbool, S. Hussain","doi":"10.26710/JAFEE.V7I2.1670","DOIUrl":"https://doi.org/10.26710/JAFEE.V7I2.1670","url":null,"abstract":"Individual financial well-being is recognized as a major concern for the general welfare and social welfare of society. In this context, it is very important to understand how people can ensure good financial well-being. This article aims to explore the effects of financial literacy, risk tolerance, and risk perception on the financial well-being of individuals, with an emphasis on behavioral investment interventions. Quantitative research methods are used to measure the factors that affect financial well-being. A questionnaire was developed on Google Forms to collect data from people who have bank accounts. The sample of 318 Pakistanis supports the proposed hypothesis. Structural equation modeling (SEM) was used to evaluate the results. The results show that risk tolerance, risk perception and financial literacy influence people's investment behavior and ultimately their financial well-being. Individual financial behavior needs to be improved. In this context, there is an urgent need for financial education programs in the education system and centers of employment, behavioral development and financial literacy. \u0000Future research on this topic could benefit from collecting longitudinal data which could provide more relevant information for Pakistanis seeking to achieve better financial well-being. All measures used are reported separately and individually, measuring the risk that respondents will misinterpret questions and even interpret their behavior.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"37 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86865096","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 : 2021-06-30DOI: 10.26710/jafee.v7i2.1781
Q. Hussain, Sidra Ghazanfar, M. Abdullah, Waqar Ahmad
Purpose: The current study investigates the new impact of the language style of online reviews (figurative vs. literal) on customers' perceived credibility and purchase intention the use of figurative language to advertise product quality and social presence has been advocated in previous marketing research. Design/Methodology/Approach: The theory of expectation is adopted that is developed by Victor Vroom, is used in this study. It claims that a person would act or behave in a certain way because they are motivated to choose a specific behavior over others because of the desired output of that activity. A Google Forms quiz was created to collect data from persons who have done online purchasing. They were divided into two groups. The sentiment is echoed by a sample of 334 Pakistani students. The results were assessed using structural equation modeling (SPSS). Findings: The findings show that consumers' purchasing intentions are influenced by both the language style of online reviews and their perceived reliability. Literal reviews, as opposed to figurative reviews, can increase users' desire to purchase search products. Consumers' willingness to buy experience products may be improved through figurative reviews. Implications/Originality/Value: In the context of Pakistan customer's trust in online shopping is not good. They think these platforms are not trustworthy. With the help of Literal reviews’, we can build customers' trust in online shopping.
{"title":"Impact of Language Style on Purchase Intention Mediation Effect of Perceived Credibility: Case from Pakistan","authors":"Q. Hussain, Sidra Ghazanfar, M. Abdullah, Waqar Ahmad","doi":"10.26710/jafee.v7i2.1781","DOIUrl":"https://doi.org/10.26710/jafee.v7i2.1781","url":null,"abstract":"Purpose: The current study investigates the new impact of the language style of online reviews (figurative vs. literal) on customers' perceived credibility and purchase intention the use of figurative language to advertise product quality and social presence has been advocated in previous marketing research. Design/Methodology/Approach: The theory of expectation is adopted that is developed by Victor Vroom, is used in this study. It claims that a person would act or behave in a certain way because they are motivated to choose a specific behavior over others because of the desired output of that activity. A Google Forms quiz was created to collect data from persons who have done online purchasing. They were divided into two groups. The sentiment is echoed by a sample of 334 Pakistani students. The results were assessed using structural equation modeling (SPSS). Findings: The findings show that consumers' purchasing intentions are influenced by both the language style of online reviews and their perceived reliability. Literal reviews, as opposed to figurative reviews, can increase users' desire to purchase search products. Consumers' willingness to buy experience products may be improved through figurative reviews. Implications/Originality/Value: In the context of Pakistan customer's trust in online shopping is not good. They think these platforms are not trustworthy. With the help of Literal reviews’, we can build customers' trust in online shopping.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90428201","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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