This article adds to the existing literature by analyzing static and dynamic welfare impacts of food price changes for rural households in Pakistan. All three waves of Pakistan Rural Household Survey (2001, 2004, and 2010) were used. Lagrange Multiplier and of test on the coefficients of squared expenditure term (Likelihood Ratio test) were used to determine whether QUAIDS is an appropriate model or not. Nonlinear Seemingly Unrelated Regression (NLSUR) was used to estimate demand functions for eight food groups (Cereals, milk, and milk products, vegetables, cooking oil, pulses and other food). Results indicate inelastic expenditure elasticity of cereals in the pooled sample. Own price elasticities for all food groups, except other food, are smaller than zero during the entire sampled period (2001, 2004, 2010), and cereals are complimentary with meat and pulses, as suggested by cross price elasticity (uncompensated). Furthermore, results reveal that rural households needed a 28 percent increase in food expenditure and 26 percent increase in total expenditure to return to the previous level of welfare (year-2001).
{"title":"Estimating Food Demand System and Rural Household Welfare: A Case study from Pakistan","authors":"L. Naz, Munir Ahmad, G. Arif","doi":"10.22547/BER/10.4.3","DOIUrl":"https://doi.org/10.22547/BER/10.4.3","url":null,"abstract":"This article adds to the existing literature by analyzing static and dynamic welfare impacts of food price changes for rural households in Pakistan. All three waves of Pakistan Rural Household Survey (2001, 2004, and 2010) were used. Lagrange Multiplier and of test on the coefficients of squared expenditure term (Likelihood Ratio test) were used to determine whether QUAIDS is an appropriate model or not. Nonlinear Seemingly Unrelated Regression (NLSUR) was used to estimate demand functions for eight food groups (Cereals, milk, and milk products, vegetables, cooking oil, pulses and other food). Results indicate inelastic expenditure elasticity of cereals in the pooled sample. Own price elasticities for all food groups, except other food, are smaller than zero during the entire sampled period (2001, 2004, 2010), and cereals are complimentary with meat and pulses, as suggested by cross price elasticity (uncompensated). Furthermore, results reveal that rural households needed a 28 percent increase in food expenditure and 26 percent increase in total expenditure to return to the previous level of welfare (year-2001).","PeriodicalId":80398,"journal":{"name":"Akron business and economic review","volume":"20 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74198593","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}
This paper presents a conceptual framework of managerial activities to foster disruptive innovations. Despite wide recognition of managerial role at middle and lower tiers of organization towards shaping its long-term strategy, the existing research, so far, has lacked in explicitly explaining the managerial activities directed towards the development of disruptive innovations. Authors explored the extant literature on disruptive innovation theory and identified three phases of the disruption process where managers at the middle and lower tiers can play an active role. The authors named this role of managers as their disruptive innovation activities (DIA). Furthermore, manager’s DIA is explored in the context of existing antecedents of manager’s strategic activities and a conceptual framework is proposed along with a resource map for future research, in this direction.
{"title":"Exploring the Role of Managers in Nurturing Disruptive Innovations","authors":"Fawad Sadiq, Tasweer Hussain","doi":"10.22547/ber/10.4.5","DOIUrl":"https://doi.org/10.22547/ber/10.4.5","url":null,"abstract":"This paper presents a conceptual framework of managerial activities to foster disruptive innovations. Despite wide recognition of managerial role at middle and lower tiers of organization towards shaping its long-term strategy, the existing research, so far, has lacked in explicitly explaining the managerial activities directed towards the development of disruptive innovations. Authors explored the extant literature on disruptive innovation theory and identified three phases of the disruption process where managers at the middle and lower tiers can play an active role. The authors named this role of managers as their disruptive innovation activities (DIA). Furthermore, manager’s DIA is explored in the context of existing antecedents of manager’s strategic activities and a conceptual framework is proposed along with a resource map for future research, in this direction.","PeriodicalId":80398,"journal":{"name":"Akron business and economic review","volume":"31 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-12-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76897665","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}
This study analyses the return and volatility spillover effects of Shanghai Stock Exchange (SSE) crash to its Major Trading Partners (MTPs) – U.S.A. (S&P 500), Germany (DAX), Japan (Nikkei 225), South Korea (KOSPI), and Hong Kong (HSI) - using Diebold and Yilmaz (2012) spillover index model. The findings indicate the presence of increased return and volatility spillover between SSE and stock exchanges of MTPs during the sample period. The return spillover transmission is found to be higher than the volatility spillover transmission. Results also highlighted low level of return and volatility spillover from SSE to the stock markets of U.S.A. and Germany. Evidence of high integration between SSE and HSI are also indicated, which promote the geographical proximity impact on financial markets integration. The low return and volatility spillover between SSE and the stock markets of U.S.A. and Germany provide useful portfolio diversification benefits for international investors. The findings of this study provide useful information to potential investors for making rational decisions regarding portfolio diversification in the periods of crisis.
{"title":"Return and Volatility Spillover across stock markets of China and its Major Trading Partners: Evidence from Shanghai Stock Exchange Crash","authors":"Muhammad Owais Qarni, Gulzar Saqib","doi":"10.22547/ber/10.3.1","DOIUrl":"https://doi.org/10.22547/ber/10.3.1","url":null,"abstract":"This study analyses the return and volatility spillover effects of Shanghai Stock Exchange (SSE) crash to its Major Trading Partners (MTPs) – U.S.A. (S&P 500), Germany (DAX), Japan (Nikkei 225), South Korea (KOSPI), and Hong Kong (HSI) - using Diebold and Yilmaz (2012) spillover index model. The findings indicate the presence of increased return and volatility spillover between SSE and stock exchanges of MTPs during the sample period. The return spillover transmission is found to be higher than the volatility spillover transmission. Results also highlighted low level of return and volatility spillover from SSE to the stock markets of U.S.A. and Germany. Evidence of high integration between SSE and HSI are also indicated, which promote the geographical proximity impact on financial markets integration. The low return and volatility spillover between SSE and the stock markets of U.S.A. and Germany provide useful portfolio diversification benefits for international investors. The findings of this study provide useful information to potential investors for making rational decisions regarding portfolio diversification in the periods of crisis.","PeriodicalId":80398,"journal":{"name":"Akron business and economic review","volume":"120 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75791393","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}
The motive behind the present study is to assess that how organizational performance is influenced by the Gap between intended and implemented HR practices and it also aims to evaluate the potential moderating role of employee participation and HR uncertainty between them. This study empirically tests Intended-Implemented HRM gap and its impact on Organizational performance by gathering data from 213 respondents including both manufacturing and services sectors through a self-report questionnaire. Regression analysis was used to ascertain the impact of Gap on organizational performance while structural equation modeling was used to test moderation. Results indicate that there exists a gap between actual and intended HRM having negative influence on organizational performance and this relationship is moderated by HR uncertainty and employee participation which leads to better organizational performance. Study suggests managers to assess HR uncertainty and ensure employee participation in policy making (which affect performance of employees) and thereby reduce the negative consequences of intended-implemented HR Gap on organizational performance.
{"title":"Intended-Implemented HRM-GAP effect on Organizational Performance: Moderation of HR-Uncertainty and Employee Participation","authors":"NoorUl Ain, Hafiz Muhammad Azeem Akhtar, J. Ahmad","doi":"10.22547/ber/10.3.5","DOIUrl":"https://doi.org/10.22547/ber/10.3.5","url":null,"abstract":"The motive behind the present study is to assess that how organizational performance is influenced by the Gap between intended and implemented HR practices and it also aims to evaluate the potential moderating role of employee participation and HR uncertainty between them. This study empirically tests Intended-Implemented HRM gap and its impact on Organizational performance by gathering data from 213 respondents including both manufacturing and services sectors through a self-report questionnaire. Regression analysis was used to ascertain the impact of Gap on organizational performance while structural equation modeling was used to test moderation. Results indicate that there exists a gap between actual and intended HRM having negative influence on organizational performance and this relationship is moderated by HR uncertainty and employee participation which leads to better organizational performance. Study suggests managers to assess HR uncertainty and ensure employee participation in policy making (which affect performance of employees) and thereby reduce the negative consequences of intended-implemented HR Gap on organizational performance.","PeriodicalId":80398,"journal":{"name":"Akron business and economic review","volume":"36 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74065548","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}
Supervisor and subordinate relationship play a significant role in a work place. One can measure the quality of reciprocal exchange between them through leader member exchange relationship. The main objective of current study is to check the impact of leader and member exchange (LMX) on organizational commitment at individual level. Data (N = 270) were collected from faculty members working in higher educational institutes (HEIs) from two cities of Pakistan. Utilizing Preacher and Hayes (2008) macro of mediation, the proposed mediating variable i.e. employee voice behavior, used in this study appeared to be significant. Employee voice behavior of faculty members mediated the positive association between LMX and normative and affective components of organizational commitment. Depending on social exchange theory, this study widens the research on both the variables i.e. LMX and organizational commitment relationship by declaring employee voice as the mediator. Implications and future directions are discussed.
{"title":"A Social Exchange Perspective through the Lens of an Individual: Relationship between LMX, Voice and Organizational Commitment in Academia","authors":"Sobia Rashid, G. Dastgeer, T. Kayani","doi":"10.22547/ber/10.3.3","DOIUrl":"https://doi.org/10.22547/ber/10.3.3","url":null,"abstract":"Supervisor and subordinate relationship play a significant role in a work place. One can measure the quality of reciprocal exchange between them through leader member exchange relationship. The main objective of current study is to check the impact of leader and member exchange (LMX) on organizational commitment at individual level. Data (N = 270) were collected from faculty members working in higher educational institutes (HEIs) from two cities of Pakistan. Utilizing Preacher and Hayes (2008) macro of mediation, the proposed mediating variable i.e. employee voice behavior, used in this study appeared to be significant. Employee voice behavior of faculty members mediated the positive association between LMX and normative and affective components of organizational commitment. Depending on social exchange theory, this study widens the research on both the variables i.e. LMX and organizational commitment relationship by declaring employee voice as the mediator. Implications and future directions are discussed.","PeriodicalId":80398,"journal":{"name":"Akron business and economic review","volume":"35 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78669284","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}
This paper investigates a critical aspect of agency conflict between dispersed minority and majority (controlling) shareholders in firms affiliated with family business groups. Corporate governance literature indicates that majority shareholders can exploit minority shareholders through tunneling the resources for their benefit or they provide insurance through propping to group firms in distress. For years 2009-2013, the study uses a unique hand-picked data set of 290 non-financial (i.e. 177 family business group and 113 stand-alone or non-group) firms listed on Pakistan Stock Exchange (PSX). The study finds that majority shareholders expropriate minority shareholders by tunneling (transferring) important resources from low cash-flow rights firms affiliated with family business group. While measuring the sensitivities of firms to the industry earnings shocks, the empirical results reveal that about 15% resources of low cash-flow rights firms are tunneled to high cash-flow rights firms in family business groups. It is also confirmed that equity held by directors representing majority shareholders has negative relationship with earnings of minority shareholders in low cash-flow rights firms affiliated with family business groups. These findings have certain policy implications for governance related regulation development, diverse shareholders and firm management.
{"title":"Tunneling: Evidence from Family Business Groups of Pakistan","authors":"S. Hussain, N. Safdar","doi":"10.22547/BER/10.2.5","DOIUrl":"https://doi.org/10.22547/BER/10.2.5","url":null,"abstract":"This paper investigates a critical aspect of agency conflict between dispersed minority and majority (controlling) shareholders in firms affiliated with family business groups. Corporate governance literature indicates that majority shareholders can exploit minority shareholders through tunneling the resources for their benefit or they provide insurance through propping to group firms in distress. For years 2009-2013, the study uses a unique hand-picked data set of 290 non-financial (i.e. 177 family business group and 113 stand-alone or non-group) firms listed on Pakistan Stock Exchange (PSX). The study finds that majority shareholders expropriate minority shareholders by tunneling (transferring) important resources from low cash-flow rights firms affiliated with family business group. While measuring the sensitivities of firms to the industry earnings shocks, the empirical results reveal that about 15% resources of low cash-flow rights firms are tunneled to high cash-flow rights firms in family business groups. It is also confirmed that equity held by directors representing majority shareholders has negative relationship with earnings of minority shareholders in low cash-flow rights firms affiliated with family business groups. These findings have certain policy implications for governance related regulation development, diverse shareholders and firm management.","PeriodicalId":80398,"journal":{"name":"Akron business and economic review","volume":"19 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86446116","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}
This paper analyzes cash holding determinants around different regions of the world including Asia Pacific, Europe, Africa, North America, Middle East and South America. The sample consists of 5,957 companies from 47 countries grouped into six regions for the period from 2007 to 2016. Panel Generalized Method of Moments is applied to account for endogeneity in the independent variables. The study is conducted in two phases: in the first stage, model is run for all the companies where results of the analysis show that size, financial strength, investments and cash flows are positively and significantly related to cash holdings for the companies in the sample while leverage, dividend, intangibles, market to book ratio, profitability and net working capital have significant negative effect on cash holdings. In the second phase, model is run separately for each region. The results show deviations across the regions which indicate differences of institutional frameworks in different countries present in different regions of the world. The study is of immense importance for the international managers and academic researchers in analyzing cash holding determinants in different regions having varying institutional and governance settings.
{"title":"The Determinants of Cash Holdings around Different Regions of the World","authors":"Ummar Aftab, A. Y. Javid, Waseem Akhter","doi":"10.22547/BER/10.2.7","DOIUrl":"https://doi.org/10.22547/BER/10.2.7","url":null,"abstract":"This paper analyzes cash holding determinants around different regions of the world including Asia Pacific, Europe, Africa, North America, Middle East and South America. The sample consists of 5,957 companies from 47 countries grouped into six regions for the period from 2007 to 2016. Panel Generalized Method of Moments is applied to account for endogeneity in the independent variables. The study is conducted in two phases: in the first stage, model is run for all the companies where results of the analysis show that size, financial strength, investments and cash flows are positively and significantly related to cash holdings for the companies in the sample while leverage, dividend, intangibles, market to book ratio, profitability and net working capital have significant negative effect on cash holdings. In the second phase, model is run separately for each region. The results show deviations across the regions which indicate differences of institutional frameworks in different countries present in different regions of the world. The study is of immense importance for the international managers and academic researchers in analyzing cash holding determinants in different regions having varying institutional and governance settings.","PeriodicalId":80398,"journal":{"name":"Akron business and economic review","volume":"6 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77017791","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}
Organizational learning is viewed as a source of gaining a sustained competitive advantage for organizations. However, past research suggests that organizations do not necessarily learn constructive and ethical practices and behaviors; instead, organizational members can indulge in unethical and destructive behaviors such as bribery, nepotism and the manipulation of organizational resources for personal gains that impede organizational learning. Although literature has highlighted the importance of unlearning for enhancing organizational learning and gaining sustained competitive advantage, there is a paucity of work on how organizations unlearn destructive behaviors and practices. To fill this research void, this study building mainly on social learning theory, using a single case study as research methodology and collecting data using 40 semi-structured interviews, brought to the fore how two key aspects of ethical leadership – accountability and honesty – facilitate the unlearning of destructive and inappropriate behaviors and practices. The study carries important implications for the policymakers and managers concerned with the unlearning of destructive behaviors and obsolete practices
{"title":"Exploring the links between Ethical Leadership and Organizational Unlearning: A Case Study of a European Multinational Company","authors":"Muhammad Usman, A. Hameed, S. Manzoor","doi":"10.22547/BER/10.2.2","DOIUrl":"https://doi.org/10.22547/BER/10.2.2","url":null,"abstract":"Organizational learning is viewed as a source of gaining a sustained competitive advantage for organizations. However, past research suggests that organizations do not necessarily learn constructive and ethical practices and behaviors; instead, organizational members can indulge in unethical and destructive behaviors such as bribery, nepotism and the manipulation of organizational resources for personal gains that impede organizational learning. Although literature has highlighted the importance of unlearning for enhancing organizational learning and gaining sustained competitive advantage, there is a paucity of work on how organizations unlearn destructive behaviors and practices. To fill this research void, this study building mainly on social learning theory, using a single case study as research methodology and collecting data using 40 semi-structured interviews, brought to the fore how two key aspects of ethical leadership – accountability and honesty – facilitate the unlearning of destructive and inappropriate behaviors and practices. The study carries important implications for the policymakers and managers concerned with the unlearning of destructive behaviors and obsolete practices","PeriodicalId":80398,"journal":{"name":"Akron business and economic review","volume":"12 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78006185","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}
This study explores the effect of selected economic factors on stock return volatility along with asymmetry and leverage effects on comparative basis of the New York Stock Exchange (NYSE) and Pakistan Stock Exchange (PSX). These dimensions are further investigated with respect to size and age of the firms. The daily stock returns of all the firms on both NYSE and PSX and macroeconomic factors are considered for the period 2000–2015. The results from GARCH (1, 1) revealed that all the economic factors have proven their significance in determining the stock returns volatility in both the markets with respect to firm’s size and age. More precisely, a negative relationship is observed for market returns (MR), exchange rate (EXR), and oil returns (OIL) with stock return volatility for majority of the firms in both stock markets. Furthermore, risk-free rate (RFR) showed positive and negative effect on the stock return volatility of majority of the firms in NYSE and PSX markets respectively. However, with respect to size and age effects, firms in both the markets exhibited entirely different behavior for all the macroeconomic factors. Further, using EGARCH model, an evidence of asymmetry and leverage effect (with negative coefficient) is found in NYSE and partial evidence (both negative and positive coefficients) in PSX is observed. Again, these results vary with respect to firms’ features in both the markets. Therefore, the results of the current study clearly show that there are significant differences in both markets and the investors can diversify their investments and shape their liquidity positions in both markets in order to exploit the maximum benefits from the market and firms specific factors
{"title":"Return Volatility and Macroeconomic Factors: A Comparison of US and Pakistani Firms","authors":"Sharif Ullah Jan, Hashim Khan","doi":"10.22547/BER/10.2.1","DOIUrl":"https://doi.org/10.22547/BER/10.2.1","url":null,"abstract":"This study explores the effect of selected economic factors on stock return volatility along with asymmetry and leverage effects on comparative basis of the New York Stock Exchange (NYSE) and Pakistan Stock Exchange (PSX). These dimensions are further investigated with respect to size and age of the firms. The daily stock returns of all the firms on both NYSE and PSX and macroeconomic factors are considered for the period 2000–2015. The results from GARCH (1, 1) revealed that all the economic factors have proven their significance in determining the stock returns volatility in both the markets with respect to firm’s size and age. More precisely, a negative relationship is observed for market returns (MR), exchange rate (EXR), and oil returns (OIL) with stock return volatility for majority of the firms in both stock markets. Furthermore, risk-free rate (RFR) showed positive and negative effect on the stock return volatility of majority of the firms in NYSE and PSX markets respectively. However, with respect to size and age effects, firms in both the markets exhibited entirely different behavior for all the macroeconomic factors. Further, using EGARCH model, an evidence of asymmetry and leverage effect (with negative coefficient) is found in NYSE and partial evidence (both negative and positive coefficients) in PSX is observed. Again, these results vary with respect to firms’ features in both the markets. Therefore, the results of the current study clearly show that there are significant differences in both markets and the investors can diversify their investments and shape their liquidity positions in both markets in order to exploit the maximum benefits from the market and firms specific factors","PeriodicalId":80398,"journal":{"name":"Akron business and economic review","volume":"5 1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90153563","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}
Efficiency analysis is a vital part of prudent management practices across the banking industry, yet there is only sparse literature examining bank efficiency, especially in Asian developing countries and using a comprehensive methodology. This study aims to analyze bank efficiency in a South Asian developing country, Pakistan, for the period 2007 to 2014. Borrowing a technique from Simar and Wilson (2007), this study applies two-stage data envelopment analysis (DEA) with double bootstrapping. Our results reveal that private banks are more technically efficient than government banks; conventional commercial banks precede Islamic commercial banks in efficiency, and large banks are more technically efficient than small and medium-size banks. Moreover, the results indicate that market concentration, capital risk, credit risk, and liquidity risk have significant effects on the overall efficiency of banks. This study provides an important opportunity to advance the understanding of bank efficiency, market concentration, and risk complications in developing countries and gives insightful directions to researchers and financial institutions.
{"title":"Market Concentration, Risk-taking, and Efficiency of Commercial Banks in Pakistan: An Application of the Two-Stage Double Bootstrap DEA","authors":"I. Khan, Sadaqat Ali, H. Khan","doi":"10.22547/BER/10.2.4","DOIUrl":"https://doi.org/10.22547/BER/10.2.4","url":null,"abstract":"Efficiency analysis is a vital part of prudent management practices across the banking industry, yet there is only sparse literature examining bank efficiency, especially in Asian developing countries and using a comprehensive methodology. This study aims to analyze bank efficiency in a South Asian developing country, Pakistan, for the period 2007 to 2014. Borrowing a technique from Simar and Wilson (2007), this study applies two-stage data envelopment analysis (DEA) with double bootstrapping. Our results reveal that private banks are more technically efficient than government banks; conventional commercial banks precede Islamic commercial banks in efficiency, and large banks are more technically efficient than small and medium-size banks. Moreover, the results indicate that market concentration, capital risk, credit risk, and liquidity risk have significant effects on the overall efficiency of banks. This study provides an important opportunity to advance the understanding of bank efficiency, market concentration, and risk complications in developing countries and gives insightful directions to researchers and financial institutions.","PeriodicalId":80398,"journal":{"name":"Akron business and economic review","volume":"24 24 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88700744","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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