Sattar Khan, Naimat Ullah Khan and Yasir Kamal
This paper aims to examine the role of corporate governance (CG) in the earnings management (EM) of affiliated companies in family business groups (FBGs) listed on the Pakistan…
Abstract
Purpose
This paper aims to examine the role of corporate governance (CG) in the earnings management (EM) of affiliated companies in family business groups (FBGs) listed on the Pakistan Stock Exchange (PSX), using principal–principal agency theory.
Design/methodology/approach
The sample of 327 nonfinancial firms of the PSX, consisting of 187 group-affiliated firms and 140 nonaffiliated firms has been used in this study for the period of 2010 to 2019. The study uses different regression models for analysis, with robustness tests of various alternative measures of EM and FBG affiliation. In addition, endogeneity is controlled with the propensity score matching method.
Findings
The findings show that EM is less prevalent in affiliated firms compared to nonaffiliated companies. The results show a negative and significant relationship between FBGs affiliated firms and EM. Moreover, the results also show a positive relationship between EM and the interaction term of the CG index and group affiliation. It refers to the fact that effective governance cannot reduce EM in affiliated companies of FBGs as well as in the nonfinancial companies of the PSX. In addition, the quality of CG is higher in affiliated companies compared to its counterpart in nonaffiliated firms. The findings support the principal–principal agency theory that CG cannot mitigate the expropriating behavior of controlling shareholders against minority shareholders by reducing EM in emerging markets due to the ownership concentration phenomenon.
Research limitations/implications
This research study has implications for small investors, government agencies and regulators. The findings of the study show that CG code should make it mandatory for companies to reveal information about their complex ownership structure and ownership information about affiliated companies and directors. Furthermore, it is suggested to revisit the code of CG in the Pakistani context of principal–principal conflict instead of the agent–principal explanation of agency theory based on Anglo–Saxon countries.
Originality/value
This research study has contributed to the CG and FBG literature in relation to EM in idiosyncratic settings of Pakistan. One of the prime contributions of the paper is the development of a comprehensive CG index. This research study used detailed, manually collected novel data on affiliated firms of FBGs in Pakistan.
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Shazia Aman Jatoi, Sobia Shafaq Shah, Abdul Sattar Shah and Sajjad Hyder Channar
The purpose of this research is to examine the relationship between high- performance work systems (HPWS) and organisational innovation in hospital settings, examining the role of…
Abstract
Purpose
The purpose of this research is to examine the relationship between high- performance work systems (HPWS) and organisational innovation in hospital settings, examining the role of employee engagement as a mediator in this relationship. Additionally, the study aims to investigate the moderating role of perspective-taking between HPWS and employee engagement as well as the moderating effect of trust in leader on the connection between employee engagement and organisational innovation.
Design/methodology/approach
A quantitative-deductive causal method, along with a cross-sectional approach, was utilized. Structural equation modelling was applied to analyse data from a sample of 530 doctors employed in hospitals, practicing human resources management in the public and private sectors of Sindh province, Pakistan.
Findings
The findings show positive effects of HPWS on employee engagement and organisational innovation. Additionally, employee’s engagement partially mediates the relationship between HPWS and organisational innovation, while the moderating role of perspective-taking significantly influences the link between HPWS and employee engagement.
Originality/value
While HPWS are recognized for enhancing organisational innovation, this study confirms their positive effects on individual and organisational outcomes, particularly within the healthcare sector in Pakistan. This study suggests that when HPWS are effectively perceived and implemented, these integrated practices can be beneficial for both employees and organizations, even in challenging situations.
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Muhammad Bilal Zafar and Mohd Fauzi Abu-Hussin
This study aims to dissect and understand the latent themes of Islamic work ethic (IWE) and explore the driving factors of IWE research.
Abstract
Purpose
This study aims to dissect and understand the latent themes of Islamic work ethic (IWE) and explore the driving factors of IWE research.
Design/methodology/approach
Structural topic modeling (STM), a sophisticated machine learning technique, was used to analyze a corpus of 205 articles sourced from the Scopus database. These articles cover the 36 years of research on IWE, from 1988 to 2024. Moreover, negative binomial regression was applied to examine the driving factors of IWE research.
Findings
The STM analysis unfolds ten topics in conjunction with IWE including individual success, workplace dynamics, organizational work ethics, knowledge management, employee citizenship behavior, financial ethics, job satisfaction, organizational commitment, performance enhancement and leadership. The further STM outputs included word clouds, prevalence proportions, correlation matrix, heatmap, relationship of topics with metadata, topic prominence in the publishing journals and, finally, illustrating trends and future prospects of research on IWE. The results of negative binomial regression reveal that number of authors, article age, journal indexing, authors from multiple countries and number of references are strong drivers of fostering research in IWE, by having significant positive impacts on total citations.
Social implications
The insights from this study provide valuable guidance for businesses and organizations looking to integrate IWE principles into their operations. By promoting values such as fairness, hard work and ethical behavior, organizations can foster a more inclusive and morally grounded workplace culture. This, in turn, may lead to enhanced employee satisfaction, greater organizational commitment and improved overall performance. Additionally, the emphasis on ethical practices can contribute to broader societal benefits, such as increased trust in business practices and a stronger alignment with social responsibility initiatives.
Originality/value
This is a unique study that explores the latent themes and characteristics of the IWE literature through STM and provides insights on the future research directions. In addition, this study also examines the driving factors of IWE research.
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This study aims to empirically test the influence of board member gender on insolvency risk in a two-tier system.
Abstract
Purpose
This study aims to empirically test the influence of board member gender on insolvency risk in a two-tier system.
Design/methodology/approach
This study considers 91 banks operating in Indonesia from 2009 to 2021. It uses a two-step system generalized moment method to analyze the data.
Findings
This study reports that appointing women to the board of commissioners and as directors reduces the insolvency risk. Women’s role in reducing risk is more effective in listed and private-owned banks (POB) than in others.
Practical implications
The presence of women in boardrooms is crucial for improving financial performance and reducing financial distress in banks, particularly listed and POB. The findings of this study are expected to provide insights into board selection and appointment.
Originality/value
The extant literature on the impact of appointing women to boards on bank risk lacks a consensus because of differences in proxies in measuring gender diversity (GD). This paper conducts scenarios using four GD proxies, namely, dummy, percentage of women, Blau index and Shannon index, and two insolvency risk proxies.
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Mukaram Ali Khan, Rimsha Ashfaq Butt, Saba Nawab and Syed Sohaib Zubair
This study intends to explore the influence of emotional intelligence on employee self-efficacy in Pakistan's telecom industry. Besides, it explores the mediating effect of…
Abstract
Purpose
This study intends to explore the influence of emotional intelligence on employee self-efficacy in Pakistan's telecom industry. Besides, it explores the mediating effect of emotional labor (surface acting and deep acting) between them. This study also tests the relationship between emotional labor (surface acting and deep acting) and self-efficacy in the customer care of Pakistan's telecom division.
Design/methodology/approach
The study leads forward with a positivist approach to obtain data in two different waves as a time lag study from the big five telecom companies operating in Pakistan. The data was collected from 270 employees working in Customer Services in the Telecom sector.
Findings
The results reveal that there exists a positive relationship between emotional intelligence and self-efficacy in customer care employees in Pakistan's telecommunication division sector. Moreover, emotional labor (deep acting) partially mediates the relationship between emotional intelligence and self-efficacy, and surface acting could not mediate the relationship among the employees of customer care in Pakistan's telecom division.
Originality/value
Management of emotions at the workplace has been an immensely vital area in managing the performance of employees, especially in customer-centric jobs, where dealing with customers is the prime focus and achieving customer satisfaction is the utmost outcome. There is limited evidence of the relationship between emotional intelligence and self-efficacy specifically in the customer care of the Telecom sector.
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Neeraj Dhiman, Honey Kanojia, Mohit Jamwal and Sachin Kumar
This study presents a systematic review of “employee happiness” research from 1991–2023. In this way, this study aims to critically appraise the existing literature, and…
Abstract
Purpose
This study presents a systematic review of “employee happiness” research from 1991–2023. In this way, this study aims to critically appraise the existing literature, and synthesize themes, thereby, paving a clearer understanding of the construct, along with providing the future research agenda.
Design/methodology/approach
By adopting a systematic approach, this study followed scientific procedures and rationales for systematic literature reviews for article selection. A total of 57 articles were finally chosen after a careful examination from 110 selected journals.
Findings
The current study identified three major themes after evaluating the selected literature on Employee happiness: (1) work, family and personal blend, (2) organizational support, and (3) Ebullience sentiment. Amidst an ambiguous usage of several related constructs in employee happiness research, the review provided a clear definition of “employee happiness” along with proposing crucial research directions.
Originality/value
There is a lack of systematic reviews on employee happiness in the existing literature. Thus, by far, this effort is one of the earliest endeavors that researchers undertook toward understanding employee happiness.
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Flokart Aliu and Enver Kutllovci
The purpose of this paper is to delve into the intricate link between job satisfaction and employees’ turnover intentions. To accomplish this, a detailed structural model was…
Abstract
Purpose
The purpose of this paper is to delve into the intricate link between job satisfaction and employees’ turnover intentions. To accomplish this, a detailed structural model was constructed, incorporating five essential constructs: job satisfaction, turnover intention, satisfaction with financial factors, satisfaction with non-financial factors and external factors.
Design/methodology/approach
The research used a questionnaire with 28 items based on established tools, focusing on five different constructs. The model’s validation involved applying structural equation modelling to 147 non-managerial employees in microfinance institutions.
Findings
The findings reveal a significant negative correlation between job satisfaction and turnover intention. Satisfaction with financial factors significantly outweighs satisfaction with non-financial factors in shaping job satisfaction. In addition, the impact of external factors on turnover intention was observed to be minimal and inconsequential.
Research limitations/implications
This review highlights the importance of investigating the moderating factors in the job satisfaction–turnover relationship, distinguishing between types of satisfaction and conducting longitudinal studies across diverse contexts. It notably presents a diverse range of recent findings in this field, emphasising the breadth of the results that have emerged in this area of research.
Practical implications
Understanding job satisfaction and turnover intention is crucial for microfinance institutions. By prioritising efforts to enhance job satisfaction through improved financial offerings and non-financial factors like a supportive work environment and opportunities for growth, organisations can effectively mitigate turnover rates and foster success.
Social implications
The study underscores the societal value of supportive work environments beyond just benefits and career opportunities. By understanding the external influences on employee satisfaction, organisations can contribute to building more decent workplaces and promote social well-being, while advocating for social considerations in organisational practices.
Originality/value
This paper uses a novel integrated model comprising five distinct constructs not previously used together. It stands among the pioneering works that not only elucidate the correlation between job satisfaction and turnover intention but also delineate the constituents of job satisfaction itself.
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Udemezue Ndubuisi Nnakee, Chi Aloysius Ngong, Chinyere C. Onyejiaku, Shadrack Moguluwa and Josaphat Uchechukwu Joe Onwumere
This paper aims to examine the long-run relationship between stock market development and Nigerian economic growth from 1980 to 2020.
Abstract
Purpose
This paper aims to examine the long-run relationship between stock market development and Nigerian economic growth from 1980 to 2020.
Design/methodology/approach
Market capitalization, number of listed companies, total value traded ratio and turnover ratio are used. An autoregressive distributed lag model is used for the analysis.
Findings
The market capitalization ratio and turnover ratio have positively significant links with economic growth. The number of listed companies has a negative and non-significant impact on economic growth. Total value traded ratio has a negatively significant link with economic growth in the short run. The positive but insignificant relationship between traded value ratio and turnover ratio in the long run growth means that the Nigerian stock market is growth inducing and on the right track as stock market liquidity drives growth.
Research limitations/implications
The government and Security Exchange Commission should increase the market liquidity level by improving the trading infrastructure. The government and regulatory authorities should improve and effectively implement the existing policies that would ensure stock market growth. This facilitates the investors’ speed to purchase and sell shares. The Securities and Exchange Commission should reduce transaction costs to encourage active trading activities. The market should be diversified with investment instruments such as derivatives, futures and swap options which would limit the adverse effect of listed companies in the market. To increase the stock market liquidity, the Security and Exchange Commission should apply moral suasion to bring private companies that have met certain financial thresholds to convert to public companies. Government should improve on the legislation to encourage more private companies to list on the stock exchange.
Originality/value
The study findings add value in that stock market development has a positive impact on economic growth in Nigeria.
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Fathullah Asni, Mohamad Ihsan Zulkifli and Yusairi Yusli
This paper aims to examine the acceptance of Zakat institutions in Malaysia towards Micro Credit-Qard Hasan Financing through Zakat Fund (MCZF) for post-pandemic asnaf…
Abstract
Purpose
This paper aims to examine the acceptance of Zakat institutions in Malaysia towards Micro Credit-Qard Hasan Financing through Zakat Fund (MCZF) for post-pandemic asnaf entrepreneurs. The study is motivated by the declining trend in Zakat collection and the increasing number of asnaf individuals in the post-pandemic period. This necessitates alternative initiatives such as the MCZF scheme by Zakat institutions. However, the reception of the MCZF scheme in Malaysia is unfavourable, despite studies suggesting its suitability for Zakat institutions and asnaf entrepreneurs.
Design/methodology/approach
This study adopts a qualitative methodology involving library and field research as data collection methods. The library research encompasses reviewing relevant books, articles, statutes and circulars. In terms of the field study, semi-structured interviews were conducted with five selected Zakat management officers from Zakat institutions and two proficient academics specialising in Shariah and Zakat management. The interview data generated several themes analysed using the content analysis method. Consequently, the snowball method was employed to determine the sample size of Zakat institutions, ensuring comprehensive coverage of their acceptance of the MCZF scheme.
Findings
The study’s findings reveal that three Zakat institutions accept the MCZF scheme for implementation, justifying it as a matter of differing opinions (khilaf) that allows room for ijtihad based on the current needs and well-being (maslahah). However, one of the Zakat institutions expresses unpreparedness to implement the scheme due to obstacles posed by an official fatwa. Additionally, the study demonstrates that two Zakat institutions reject the MCZF scheme, citing reasons such as the principle of direct ownership (tamlik) in giving Zakat funds, the prohibition specified by the official state fatwa, and the prevailing societal expectation of direct Zakat distribution without loans.
Research limitations/implications
This study focuses solely on five Zakat institutions in Malaysia, all of which have specific fatwas concerning the MCZF scheme. Future research may explore Zakat institutions in other states. Furthermore, this study specifically concentrates on asnaf entrepreneurs. Hence, further research could investigate the applicability of the MCZF scheme for other asnaf groups, such as asnaf students.
Practical implications
This study examines the acceptance of Zakat institutions towards the MCZF scheme and the justifications provided by Zakat institutions for its implementation. The findings of this study can guide Zakat institutions in Malaysia in accepting and implementing the MCZF scheme. It can significantly impact these institutions by assisting asnaf entrepreneurs in securing capital and expanding their businesses.
Social implications
This study has substantial implications for society, particularly for asnaf entrepreneurs, as loans provided through Zakat funds can help boost their business capital. Consequently, this can elevate the asnaf group from being recipients of Zakat to becoming contributors. Furthermore, when Zakat funds are provided as debt to asnaf entrepreneurs, they can be motivated to grow their businesses since they commit to repaying the debt through instalments.
Originality/value
This study analyses the acceptance of the MCZF scheme by Zakat institutions in Malaysia as an alternative initiative to support asnaf entrepreneurs after the pandemic.
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Chenxing Wang, Bena Ilyas, Guqang Ni and Muhammad Imran Rasheed
The success and long-term survival of service organizations depend on employee behavior such as work engagement and creativity. In this study, The authors intend to investigate…
Abstract
Purpose
The success and long-term survival of service organizations depend on employee behavior such as work engagement and creativity. In this study, The authors intend to investigate employee engagement and creativity in the hospitality industry based on the theory of social exchange. In addition, The authors explore the mediating role of employee ambidexterity between ethical leadership and employee work engagement and between ethical leadership and employee creativity.
Design/methodology/approach
Through an online survey questionnaire, data were collected from 246 workers in the hospitality industry in Pakistan. Smart-PLS version 3 was used to analyze the data.
Findings
The results of the structural equation modeling reveal that ethical leadership has a positive association with work engagement and employee creativity in the hospitality industry. Results further reveal that employee ambidexterity significantly mediates the relationships between ethical leadership and work engagement and between ethical leadership and employee creativity.
Originality/value
This study not only makes an important contribution to the literature on the role of employee ambidexterity in the hospitality industry but will also help service businesses in managing their employees more effectively.