Pub Date : 2021-06-30DOI: 10.26710/jafee.v7i2.1793
Aftab Hussain Tabassam, Shahbaz Khan
Purpose: Generally, prior literature merely focuses on the direct nexus of governance-performance, while ignoring the precise channels through which corporate governance has an effect on the firm performance. Specifically, this study has taken up this issue to capturing the governance-enterprise valuation following the indirect channel of financial slack in Pakistan. Design/Methodology/Approach: The study examined the corporate governance and enterprise performance linkage, employing financial slack as a mediating variable. A market-based performance measure “Tobin’s Q” and corporate governance index are used. For the years 2005-2019, this empirical study looks at a large number of 180 firms in the Pakistani non-financial sector. For analysis, a variety of alternative specifications and estimate approaches of panel data analysis are used. Findings: The empirical findings support the hypothesis that the association between corporate governance and Tobin’s Q is likely to be significant. The novelty of the study lies in the governance-value linkage considering financial slack resource as mediator. The study also confirms partial mediation of financial slack, between CG and FP. Implications/Originality/Value: This study examines the corporate governance standards in Pakistan, a developing nation with a fledgling stock market. The findings show that the organizations with effective corporate governance principles strive to deliver the best financial and market performance. It emphasizes that efficient corporate governance policies curtail the agency conflicts and costs. It is also argued that firms with effective corporate governance can enhance the efficiency of financial slack resources to enhance the efficiency of the firms.
{"title":"Corporate Governance and Firm Performance: Exploring the Mediating Role of Financial Slack","authors":"Aftab Hussain Tabassam, Shahbaz Khan","doi":"10.26710/jafee.v7i2.1793","DOIUrl":"https://doi.org/10.26710/jafee.v7i2.1793","url":null,"abstract":"Purpose: Generally, prior literature merely focuses on the direct nexus of governance-performance, while ignoring the precise channels through which corporate governance has an effect on the firm performance. Specifically, this study has taken up this issue to capturing the governance-enterprise valuation following the indirect channel of financial slack in Pakistan. \u0000 Design/Methodology/Approach: The study examined the corporate governance and enterprise performance linkage, employing financial slack as a mediating variable. A market-based performance measure “Tobin’s Q” and corporate governance index are used. For the years 2005-2019, this empirical study looks at a large number of 180 firms in the Pakistani non-financial sector. For analysis, a variety of alternative specifications and estimate approaches of panel data analysis are used. \u0000Findings: The empirical findings support the hypothesis that the association between corporate governance and Tobin’s Q is likely to be significant. The novelty of the study lies in the governance-value linkage considering financial slack resource as mediator. The study also confirms partial mediation of financial slack, between CG and FP. \u0000Implications/Originality/Value: This study examines the corporate governance standards in Pakistan, a developing nation with a fledgling stock market. The findings show that the organizations with effective corporate governance principles strive to deliver the best financial and market performance. It emphasizes that efficient corporate governance policies curtail the agency conflicts and costs. It is also argued that firms with effective corporate governance can enhance the efficiency of financial slack resources to enhance the efficiency of the firms. \u0000 ","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"88 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78862302","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.v7i2.1782
M. Alvi, Syed S. Hassan
The aim of the study is to explore the trends of organizations performance of Islamic and Non-Islamic South Asian countries. Out of 8 south Asian countries, 4 were selected those play a vital role in economic development of south Asia. Pakistan and Bangladesh were taken as Islamic ruling countries, whereas, India and Sri Lanka were taken as non-Islamic countries. 10 years of data before COVID-19 pandemic from organizations listed in stock markets were gathered on annual basis. Efficiency and profitability ratios were taken as variables. Augmented dickey fuller unit root test was used to interpret the stationary in data. Data was found volatile in South Asian countries organization in terms of efficiency and profitability ratios. Results revealed that purchasing power among people of South Asia increased in terms of buying commodities as the stationarity in stock inventory did not investigate and it inclined with consistent growth gradually. Future studies are possible with a different methodology (graphical representation and other associations) and contexts (other than South Asia) with induction of sample size.
{"title":"Analyzing the Financial Trends of Islamic and Non Islamic Emerging Markets of South Asia","authors":"M. Alvi, Syed S. Hassan","doi":"10.26710/jafee.v7i2.1782","DOIUrl":"https://doi.org/10.26710/jafee.v7i2.1782","url":null,"abstract":"The aim of the study is to explore the trends of organizations performance of Islamic and Non-Islamic South Asian countries. Out of 8 south Asian countries, 4 were selected those play a vital role in economic development of south Asia. Pakistan and Bangladesh were taken as Islamic ruling countries, whereas, India and Sri Lanka were taken as non-Islamic countries. 10 years of data before COVID-19 pandemic from organizations listed in stock markets were gathered on annual basis. Efficiency and profitability ratios were taken as variables. Augmented dickey fuller unit root test was used to interpret the stationary in data. Data was found volatile in South Asian countries organization in terms of efficiency and profitability ratios. Results revealed that purchasing power among people of South Asia increased in terms of buying commodities as the stationarity in stock inventory did not investigate and it inclined with consistent growth gradually. Future studies are possible with a different methodology (graphical representation and other associations) and contexts (other than South Asia) with induction of sample size.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"101 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79509029","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.v7i2.1724
S. Irfan, Waris Ali, Muhammad Abdul Basit Memon, Shahzad Younis
Purpose: The objective of this study is to investigate the relationship between emotional intelligence and work commitment through the moderating role of organizational culture. Design/Methodology/Approach: A sample of 351 teachers was randomly selected from public sector universities of Punjab, Pakistan. The data was acquired using a self-administered questionnaire. The study used the structural equational modeling technique (PLS-SEM) to test the hypothesized relationships. Findings: The result showed a differential impact of all the dimensions of emotional intelligence on work commitment. The results showed a significant positive relationship between the interpersonal dimension and work commitment and a significant negative relationship between the adaptability dimension and work commitment. The remaining dimensions of emotional intelligence were found to have an insignificant relationship. However, hierarchy culture moderated the relationship between emotional intelligence and work commitment. Implications/Originality/Value: The results highlight the significance of emotional intelligence and hierarchy culture for university teachers. The study suggests university authorities to invest in organizational culture to develop and improve emotional intelligence competencies among university teachers to enhance work commitment.
{"title":"The Relationship between Emotional Intelligence and Work Commitment: The Moderating Role of Organizational Culture","authors":"S. Irfan, Waris Ali, Muhammad Abdul Basit Memon, Shahzad Younis","doi":"10.26710/jafee.v7i2.1724","DOIUrl":"https://doi.org/10.26710/jafee.v7i2.1724","url":null,"abstract":"Purpose: The objective of this study is to investigate the relationship between emotional intelligence and work commitment through the moderating role of organizational culture. \u0000Design/Methodology/Approach: A sample of 351 teachers was randomly selected from public sector universities of Punjab, Pakistan. The data was acquired using a self-administered questionnaire. The study used the structural equational modeling technique (PLS-SEM) to test the hypothesized relationships. \u0000Findings: The result showed a differential impact of all the dimensions of emotional intelligence on work commitment. The results showed a significant positive relationship between the interpersonal dimension and work commitment and a significant negative relationship between the adaptability dimension and work commitment. The remaining dimensions of emotional intelligence were found to have an insignificant relationship. However, hierarchy culture moderated the relationship between emotional intelligence and work commitment. \u0000Implications/Originality/Value: The results highlight the significance of emotional intelligence and hierarchy culture for university teachers. The study suggests university authorities to invest in organizational culture to develop and improve emotional intelligence competencies among university teachers to enhance work commitment.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"15 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78376279","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.v7i2.1773
M. Bhatti, I. Chaudhry, H. Rehman, F. Bashir
This paper covers previous studies' deficiencies and re-examine the theoretical model using a heterogeneous panel GMM technique, which overcomes cross-section dependency. In the current sample of developing nations, developed two models'; model 1 consists of the domestic output gap, and the second model includes the foreign output gap. According to model 1, foreign globalization and imports boost the inflation level in developing countries and disaggregation analysis (low, lower-middle, and upper-middle-income countries). The output gap impedes inflation in overall, lower-middle, and upper-middle-income countries, while it boosts inflation in low-income nations. And unemployment level increases the inflation rate in the overall and middle-income groups, while in low- and high-income countries, it decreases. According to the second model, foreign globalization and the foreign output gap boost overall low-income, middle-income, and upper-middle-income groups. While import reduces the inflation level globally, while in low-income, middle-income, and upper-middle-income groups, it increases inflation. Finally, the unemployment level boosts the global inflation level and as well as in low income, and it impedes inflation rate in upper-middle-income group. Despite this, there is considerable variation in countries' effect, perhaps due to differences in political institutions' quality, central bank independence, exchange rate systems, financial development, and legal traditions.
{"title":"Financial Globalization, Output Gap and Foreign Output Gap on inflation: Evidenced from Developing Economies","authors":"M. Bhatti, I. Chaudhry, H. Rehman, F. Bashir","doi":"10.26710/jafee.v7i2.1773","DOIUrl":"https://doi.org/10.26710/jafee.v7i2.1773","url":null,"abstract":"This paper covers previous studies' deficiencies and re-examine the theoretical model using a heterogeneous panel GMM technique, which overcomes cross-section dependency. In the current sample of developing nations, developed two models'; model 1 consists of the domestic output gap, and the second model includes the foreign output gap. According to model 1, foreign globalization and imports boost the inflation level in developing countries and disaggregation analysis (low, lower-middle, and upper-middle-income countries). The output gap impedes inflation in overall, lower-middle, and upper-middle-income countries, while it boosts inflation in low-income nations. And unemployment level increases the inflation rate in the overall and middle-income groups, while in low- and high-income countries, it decreases. According to the second model, foreign globalization and the foreign output gap boost overall low-income, middle-income, and upper-middle-income groups. While import reduces the inflation level globally, while in low-income, middle-income, and upper-middle-income groups, it increases inflation. Finally, the unemployment level boosts the global inflation level and as well as in low income, and it impedes inflation rate in upper-middle-income group. Despite this, there is considerable variation in countries' effect, perhaps due to differences in political institutions' quality, central bank independence, exchange rate systems, financial development, and legal traditions.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"20 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74617254","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.v7i2.1824
A. Saleem, Abdul Farooq, A. Nawaz, Muhammad Anwar
Purpose:The relationship between foreign direct investment and population health has been the focus of research among researchers in recent years. One of the basic individual rights is a healthy life and decent living conditions, but the SAARC countries are lagging behind in this respect.The goal of this study is to evaluate the effect of foreign direct investment inflows on population health by integrating growth, foreign aid, and human capital into the model for selected SAARC countries. Design/Methodology/Approach:The fixed effect technique based on the Hausman test was implemented through the period of 1996-2018 because of the Panel nature of the data. Findings:Our empirical results indicate that FDI inflows have a positive and significant effect on population health. Increase in FDI inflows in the host country raises the income of the people, as better job opportunities are available to them. Implications/Originality/Value:This research is a crucial step in observing the complicated relationship between Foreign Direct Investment and Population Health. It is expected that this research motivates the debate and enhance the knowledge further in this line of research.Government should provide incentives to the foreign investors by providing concessions in taxes, and better facilities in terms of improved infrastructure.
{"title":"Does the Inflow of FDI Boost the Health of the Population in SAARC Countries Evidence from a Panel Data Analysis","authors":"A. Saleem, Abdul Farooq, A. Nawaz, Muhammad Anwar","doi":"10.26710/jafee.v7i2.1824","DOIUrl":"https://doi.org/10.26710/jafee.v7i2.1824","url":null,"abstract":"Purpose:The relationship between foreign direct investment and population health has been the focus of research among researchers in recent years. One of the basic individual rights is a healthy life and decent living conditions, but the SAARC countries are lagging behind in this respect.The goal of this study is to evaluate the effect of foreign direct investment inflows on population health by integrating growth, foreign aid, and human capital into the model for selected SAARC countries. \u0000Design/Methodology/Approach:The fixed effect technique based on the Hausman test was implemented through the period of 1996-2018 because of the Panel nature of the data. \u0000Findings:Our empirical results indicate that FDI inflows have a positive and significant effect on population health. Increase in FDI inflows in the host country raises the income of the people, as better job opportunities are available to them. \u0000Implications/Originality/Value:This research is a crucial step in observing the complicated relationship between Foreign Direct Investment and Population Health. It is expected that this research motivates the debate and enhance the knowledge further in this line of research.Government should provide incentives to the foreign investors by providing concessions in taxes, and better facilities in terms of improved infrastructure.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"30 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83390916","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.V7I2.1715
Zeeshan Ahmad, M. N. Abbasi, Nadir Munir Hassan, N. Sarwat
This study focuses on evaluating the contribution CSR activities have in encouraging the customers to co-create value for the organization. This study also assesses the moderation of ECI and OCB between CSR and customer VCC behavior. Using the purposive sampling technique data from 304 employees, managers, and customers simultaneously from the telecom industry in southern Punjab Pakistan. Data analysis were performed through structural equation modeling (SEM) in AMOS v23 and the findings of the quantitative data shows the significant and positive relationship between CSR and customer VCC behavior. ECI and OCB also strengthens the relationship of CSR and VCC. As data was collected only from the telecom sector therefore for the generalizability future research can be conducted towards other stakeholders’ orientations in other sectors as health, tourism, and hospitality etc. Moreover, through ECI initiatives, the organization can enhance customer role clarity and perceived value of co-creation, which drive customers to further engage in VCC behavior
{"title":"Impact of CSR on Customer Value Co-Creation Behavior: The Investigation of Moderation Mechanisms","authors":"Zeeshan Ahmad, M. N. Abbasi, Nadir Munir Hassan, N. Sarwat","doi":"10.26710/JAFEE.V7I2.1715","DOIUrl":"https://doi.org/10.26710/JAFEE.V7I2.1715","url":null,"abstract":"This study focuses on evaluating the contribution CSR activities have in encouraging the customers to co-create value for the organization. This study also assesses the moderation of ECI and OCB between CSR and customer VCC behavior. Using the purposive sampling technique data from 304 employees, managers, and customers simultaneously from the telecom industry in southern Punjab Pakistan. Data analysis were performed through structural equation modeling (SEM) in AMOS v23 and the findings of the quantitative data shows the significant and positive relationship between CSR and customer VCC behavior. ECI and OCB also strengthens the relationship of CSR and VCC. As data was collected only from the telecom sector therefore for the generalizability future research can be conducted towards other stakeholders’ orientations in other sectors as health, tourism, and hospitality etc. Moreover, through ECI initiatives, the organization can enhance customer role clarity and perceived value of co-creation, which drive customers to further engage in VCC behavior","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"42 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78167571","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.v7i2.1787
Lubna Khan, Imtiaz Arif, S. Raza
Purpose: The current paper analyzes the effects of capital flow and capital control on economic growth in developed and developing countries. We used four main components of capital flow such as, FDI, exports, remittances and external debt Design/Methodology/Approach: The econometric models are tested by using the annual data of 1995-2017 from 54 countries, classified as developed (high-income) and developing (middle-income) economies. Findings: Empirical estimation of PMG revealed that all four components of capital flow augment the economic growth in both developed and developing countries. However, restrictions on these flows reduces the impact of FDI, external debt and exports but raises the influence of remittances on the economic growth. Implications/Originality/Value: The findings of this paper also provides some useful insights for policymakers to use capital control as a tool for economic progress.
{"title":"Capital Flow, Capital Control, and Economic Growth: Evidence from Developed & Developing Economies","authors":"Lubna Khan, Imtiaz Arif, S. Raza","doi":"10.26710/jafee.v7i2.1787","DOIUrl":"https://doi.org/10.26710/jafee.v7i2.1787","url":null,"abstract":"Purpose: The current paper analyzes the effects of capital flow and capital control on economic growth in developed and developing countries. We used four main components of capital flow such as, FDI, exports, remittances and external debt \u0000Design/Methodology/Approach: The econometric models are tested by using the annual data of 1995-2017 from 54 countries, classified as developed (high-income) and developing (middle-income) economies. \u0000Findings: Empirical estimation of PMG revealed that all four components of capital flow augment the economic growth in both developed and developing countries. However, restrictions on these flows reduces the impact of FDI, external debt and exports but raises the influence of remittances on the economic growth. \u0000Implications/Originality/Value: The findings of this paper also provides some useful insights for policymakers to use capital control as a tool for economic progress. ","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":"88479528","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 : 2021-02-21DOI: 10.26710/JAFEE.V7I1.1541
G. Alvi
Higher education plays a vital role in the community and the universities are the backbone of the higher education system. Management is an important part of higher education; to survive. The administration of higher education is considered essential to achieving economic progress, political stability and peace. . In this research the researcher found the current challenges facing administrators to maintain the status of higher education in public and private universities. The objectives of the study were to identify the issues and problems faced by management to maintain the quality of higher education at the university level, to identify the importance of quality in the management of higher education, to help in updating our universities for best meeting future demands, and to suggest the possible solutions of current issues and problems to improve the quality of higher education management. The qualitative approach was used as a research methodology in this study. Five universities from Lahore were selected for observing the current issues and problems about the quality of higher education management. Data were collected through interviews. The vice-chancellors, registrars, controllers, treasurers and heads of human resource departments of these universities were selected for interviews. Interview protocol was used for the collection of data. The results were analyzed with the help of initial codes and broad categories It was concluded that it is necessary for the quality of higher education, to boost up higher education management. It was also determined that all the universities management almost is trying to improve their abilities towards academic matters under the umbrella of Higher Education Commission(HEC). The researchers recommended that by removing the current issues and problems concerned to the management in the universities should be mobilizing financial, technical, human and social resources for enhancing the quality of education, and for facilitating the reform process initiated within these institutions.
{"title":"Current Issues and Problems about the Quality Improvement Faced by Management in Higher Educational Institutions","authors":"G. Alvi","doi":"10.26710/JAFEE.V7I1.1541","DOIUrl":"https://doi.org/10.26710/JAFEE.V7I1.1541","url":null,"abstract":"Higher education plays a vital role in the community and the universities are the backbone of the higher education system. Management is an important part of higher education; to survive. The administration of higher education is considered essential to achieving economic progress, political stability and peace. . In this research the researcher found the current challenges facing administrators to maintain the status of higher education in public and private universities. The objectives of the study were to identify the issues and problems faced by management to maintain the quality of higher education at the university level, to identify the importance of quality in the management of higher education, to help in updating our universities for best meeting future demands, and to suggest the possible solutions of current issues and problems to improve the quality of higher education management. \u0000 The qualitative approach was used as a research methodology in this study. Five universities from Lahore were selected for observing the current issues and problems about the quality of higher education management. \u0000Data were collected through interviews. The vice-chancellors, registrars, controllers, treasurers and heads of human resource departments of these universities were selected for interviews. Interview protocol was used for the collection of data. \u0000The results were analyzed with the help of initial codes and broad categories It was concluded that it is necessary for the quality of higher education, to boost up higher education management. It was also determined that all the universities management almost is trying to improve their abilities towards academic matters under the umbrella of Higher Education Commission(HEC). The researchers recommended that by removing the current issues and problems concerned to the management in the universities should be mobilizing financial, technical, human and social resources for enhancing the quality of education, and for facilitating the reform process initiated within these institutions.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"72 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-02-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84036101","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 : 2021-01-26DOI: 10.26710/jafee.v7i1.1599
Nosheen Rasool, Safi Ullah, Muhammad Mubashir Hussain, Muhammad Usman
The purpose of this study is to examine the comparative relationship of value-added and conventional financial performance indicators with stock returns of listed companies of Pakistan Stock Exchange. Stock Return (SR) is used as an outcome variable, whereas, for measuring explanatory variables, Traditional Financial Performance indicators includes return on assets (ROA), return on equity (ROE), Return on Capital Employed (ROCE) and Earnings Per Share (EPS) whereas modern performance indicators is measured through economic value added (EVA), economic value added movement (EVAM), economic value added spread (EVAS). The sample consists of 107 companies and having 856 observations of non-financial sector listed on Pakistan Stock Exchange (PSX) for the time period 2011 to 2018. Findings reveal that stock returns are more influenced by the value that is created by listed companies for their shareholders than the accounting profits. The study aims at providing useful information for the management, investors, researchers, and regulators.
{"title":"Role of Value Added and Conventional Accounting Measures in Stimulating Stock Market Returns: A Study of Non-Financial Sector Listed at Pakistan Stock Exchange","authors":"Nosheen Rasool, Safi Ullah, Muhammad Mubashir Hussain, Muhammad Usman","doi":"10.26710/jafee.v7i1.1599","DOIUrl":"https://doi.org/10.26710/jafee.v7i1.1599","url":null,"abstract":"The purpose of this study is to examine the comparative relationship of value-added and conventional financial performance indicators with stock returns of listed companies of Pakistan Stock Exchange. Stock Return (SR) is used as an outcome variable, whereas, for measuring explanatory variables, Traditional Financial Performance indicators includes return on assets (ROA), return on equity (ROE), Return on Capital Employed (ROCE) and Earnings Per Share (EPS) whereas modern performance indicators is measured through economic value added (EVA), economic value added movement (EVAM), economic value added spread (EVAS). The sample consists of 107 companies and having 856 observations of non-financial sector listed on Pakistan Stock Exchange (PSX) for the time period 2011 to 2018. Findings reveal that stock returns are more influenced by the value that is created by listed companies for their shareholders than the accounting profits. The study aims at providing useful information for the management, investors, researchers, and regulators.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"55 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73099431","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 : 2021-01-01DOI: 10.26710/jafee.v7i3.1879
Aon Waqas, D. Siddiqui
Purpose: The conservatism of accounting and robustness of accounting information disclosure may restrain the irrational behavior of investors and help to reduce the risk of stock price crashes. This study aims to explore this in the context of developing country Pakistan. More specifically, this study investigates the effect of accounting conservatism on stock price crash risk. We also examine the complementary role of managerial and institutional ownership in strengthening this effect. Design/Methodology/Approach: This study conducts the panel data analysis of 155 nonfinancial firms listed in PSX from 2007 to 2019. This study calculates the C-Score to measure accounting conservatism. This study measures the firm’s stock price crash risk by calculating the DUVOL of weekly share prices. Findings: This study finds that there is a significant negative effect of accounting conservatism on firms’ stock price crash risk. This study also finds that managerial ownership enhances the stock price crash risk of the sample firms significantly as a moderator while there is no significant moderating influence of institutional ownership. Implications/Originality/Value: The competent authorities of Pakistan should consider agency conflicts. They should direct the firms’ management to share equal information in time regardless of whether the information is good or bad for stock prices.
{"title":"How Does the Accounting Conservatism Affect the Stock Price Crash Risk in Pakistan: The Complementary Role of Managerial and Institutional Ownership","authors":"Aon Waqas, D. Siddiqui","doi":"10.26710/jafee.v7i3.1879","DOIUrl":"https://doi.org/10.26710/jafee.v7i3.1879","url":null,"abstract":"Purpose: The conservatism of accounting and robustness of accounting information disclosure may restrain the irrational behavior of investors and help to reduce the risk of stock price crashes. This study aims to explore this in the context of developing country Pakistan. More specifically, this study investigates the effect of accounting conservatism on stock price crash risk. We also examine the complementary role of managerial and institutional ownership in strengthening this effect. Design/Methodology/Approach: This study conducts the panel data analysis of 155 nonfinancial firms listed in PSX from 2007 to 2019. This study calculates the C-Score to measure accounting conservatism. This study measures the firm’s stock price crash risk by calculating the DUVOL of weekly share prices. Findings: This study finds that there is a significant negative effect of accounting conservatism on firms’ stock price crash risk. This study also finds that managerial ownership enhances the stock price crash risk of the sample firms significantly as a moderator while there is no significant moderating influence of institutional ownership. Implications/Originality/Value: The competent authorities of Pakistan should consider agency conflicts. They should direct the firms’ management to share equal information in time regardless of whether the information is good or bad for stock prices.","PeriodicalId":52706,"journal":{"name":"Journal of Accounting and Finance in Emerging Economies","volume":"39 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75983693","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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