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This study aims to analyze the impact of political connection on the firm’s financial performance in presence of corporate governance.
Abstract
Purpose
This study aims to analyze the impact of political connection on the firm’s financial performance in presence of corporate governance.
Design/methodology/approach
The study utilizes panel regression analyses (OLS) and margin and contrast analysis techniques on a data set of Pakistan’s listed companies ranging from 2012 to 2021. For political connection, an aggregate score was calculated from political ties at the central, provincial and local level. Corporate governance was measured through an index using principal component analysis technique capturing its attributes comprised of board size, board tenure, board independence, board gender diversity, CEO duality, audit committee tenure and audit quality.
Findings
The study finds that politically affiliated individuals can exploit the wealth of firms. It also supports the positive role of corporate governance in augmenting the firm financial performance and further confirms that the presence of robust corporate governance practices can help mitigate the risk posed by the political connection.
Practical implications
The study provides valuable information to investors and offer insights into the investment opportunities available in nonfinancial sectors and identifies areas where investments may not yield favorable results. It provides solutions to the companies to effectively compose their boards and offset the adverse effect of political connection and capitalize on its potential benefits. Investors can draw upon these insights to inform and facilitate their investment decision-making processes. By gaining a better comprehension of the impact of political associations on corporate governance and performance, regulators and policymakers can better design policies that strike a balance between preventing abuses while still allowing firms to reap the benefits of political connections.
Originality/value
To the best of the authors’ knowledge, this is the first study that delves into an analysis to mitigate viz-a-viz offset the adverse effect of political affiliations by implementing robust practices of corporate governance. Further, in lieu of a binary indicator variable of political connection, this study applies a different approach to quantify the varying intensities of the political connections, which is a nascent method. It further undertakes margin & contrast analysis and also analyzes effect of different levels of political connections as well as the role of various attributes of corporate governance, which offer a novel contribution.
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Keywords
The purpose of this study is to find out the relationship between the corporate social responsibility (CSR) and green performance (GP) of Pakistani manufacturing SMEs. This study…
Abstract
Purpose
The purpose of this study is to find out the relationship between the corporate social responsibility (CSR) and green performance (GP) of Pakistani manufacturing SMEs. This study further explores the mediating roles of green human resource management (GHRM) and green innovation (GI) in the relationship between CSR and GP.
Design/methodology/approach
A survey method was used to collect data from manufacturing SMEs. Data were collected from 366 respondents working in higher positions and playing a decisive role in the organization. The collected data were analysed by applying structural equation modelling with the help of smart PLS.
Findings
The study shows that CSR (customers, society, employees) helps significantly improve a firm's GP. Furthermore, this study explores how GI (process, product) and GHRM (skills development, motivation and involvement) mediate the relationship between CSR and GP.
Research limitations/implications
This study is limited to manufacturing SMEs and a single developing country, Pakistan. However, this study will significantly contribute to the existing literature on GP and help manufacturing firms’ top management take steps to minimize carbon emissions and improve GP. Furthermore, this study will also provide valuable insights to government agencies in the Asian context to adjust their policies regarding the manufacturing sector to reduce pollution in the country.
Originality/value
As a pioneering study encompassing CSR, GHRM, GI and GP under one research paradigm in an emerging economy environment, the current research provides substantial additions to the literature on the impact of CSR on GP.
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Latika Sharma, Mridul Trivedi, Himanshu Bagdi and Hemantkumar P. Bulsara
The present research investigates the role of product availability, environmental concern, and social media concerning the intention to purchase green food products by utilising…
Abstract
Purpose
The present research investigates the role of product availability, environmental concern, and social media concerning the intention to purchase green food products by utilising the extended theory of planned behaviour framework in a developing economy.
Design/methodology/approach
A self-administered questionnaire collected information from 412 adults and educated consumers from Vadodara city in India. The questionnaire items were used to collect data from previous studies and further validated using confirmatory factor analysis. The data were further analysed using partial least square-structural equation modelling.
Findings
The study findings indicated that attitude and perceived behavioural control impact the purchase intention regarding green food products, while subjective norms were found not supportive. At the same time, product availability influences perceived behavioural control and increases the volitional control amongst consumers. Moreover, social media positively impacts the theory of planned behaviour’s key constructs.
Research limitations/implications
The outcomes of the present study provide marketing managers with enhanced insight into the relationship between consumers' perception and green food product consumption in the context of social media influence. The findings could help green food producers evaluate the extent of consumers' intentions to buy their products in developing countries.
Originality/value
To the best of the researchers’ knowledge, the present research is amongst the pioneers in India that focuses on the variables of the theory of planned behaviour, which led to knowing the role of green food availability and social media influence in green food products. At the same time, the focus on purchase intention concerning green food products adds to the study’s uniqueness.
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