Asima Siddique, Muhammad Asif Khan and Zeeshan Khan
Among all of the world's continents, Asia is the most important continent and contributes 60% of world growth but facing the serving issue of high nonperforming loans (NPLs)…
Abstract
Purpose
Among all of the world's continents, Asia is the most important continent and contributes 60% of world growth but facing the serving issue of high nonperforming loans (NPLs). Therefore, the current study aims to capture the effect of credit risk management and bank-specific factors on South Asian commercial banks' financial performance (FP). The credit risk measures used in this study were NPLs and capital adequacy ratio (CAR), while cost-efficiency ratio (CER), average lending rate (ALR) and liquidity ratio (LR) were used as bank-specific factors. On the other hand, return on equity (ROE) and return on the asset (ROA) were taken as a measure of FP.
Design/methodology/approach
Secondary data were collected from 19 commercial banks (10 commercial banks from Pakistan and 9 commercial banks from India) in the country for a period of 10 years from 2009 to 2018. The generalized method of moment (GMM) is used for the coefficient estimation to overcome the effects of some endogenous variables.
Findings
The results indicated that NPLs, CER and LR have significantly negatively related to FP (ROA and ROE), while CAR and ALR have significantly positively related to the FP of the Asian commercial banks.
Practical implications
The current study result recommends that policymakers of Asian countries should create a strong financial environment by implementing that monetary policy that stimulates interest rates in this way that automatically helps to lower down the high ratio of NPLs (tied monitoring system). Liquidity position should be well maintained so that even in a high competition environment, the commercial is able to survive in that environment.
Originality/value
The present paper contributes to the prevailing literature that this is a comparison study between developed and developing countries of Asia that is a unique comparison because the study targets only one region and then on the basis of income, the results of this study are compared. Moreover, the contribution of the study is to include some accounting-based measures and market-based measures of the FP of commercial banks at a time.
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Bashir Tijjani, Murtaza Ashiq, Nadeem Siddique, Muhammad Ajmal Khan and Aamir Rasul
The purpose of this study is to provide quantitative information on the growth of Islamic finance literature. The study focused on publishing trends, countries producing research…
Abstract
Purpose
The purpose of this study is to provide quantitative information on the growth of Islamic finance literature. The study focused on publishing trends, countries producing research on Islamic finance, key authors, major contributing organizations, authorship patterns, keywords and articles with the highest citations.
Design/methodology/approach
Bibliometric analysis is applied to analyse the growth and publishing trends in Islamic finance literature. The Web of Science (WoS) database was used to extract bibliometric data covering the period 1939–2019 for Islamic finance literature.
Findings
The study finds that Islamic finance research has gained remarkable momentum in the literature. However, such growth is largely manifested in Malaysia because of a conducive atmosphere for this type of research. Interestingly, the study finds that the three most productive journals are located in the UK and Malaysia, while Professor M. Kabir Hassan from the University of New Orleans, the USA appears to head the list of authors with 23 publications on Islamic finance.
Practical implications
This study provides up-to-date literature on the current state of Islamic finance in the world; as a result, it supports the development of policies by the Islamic finance industry. The findings of the study also serve as a reference point for Islamic finance training and educational institutions.
Originality/value
Islamic finance is an emerging financial discipline; as such, there is a need for more awareness of this financial system in the world. Muslim-majority countries, especially Saudi Arabia, Turkey, Indonesia, the United Arab Emirates (UAE), Pakistan and Bahrain, have to include Islamic finance in their curriculum and establish research institutions and research journals. In addition, Arabic language journals should be indexed in WoS and/or Scopus to provide a high-quality publication platform. This study provides a more comprehensive bibliometric analysis on the growth of Islamic finance literature (1939–2019) in the WoS database; most of the prior studies have covered relatively few areas of focus and a lower range of years in some cases.
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Muhammad Asif Khan, Asima Siddique, Zahid Sarwar, Le Thi Minh Huong and Qaiser Nadeem
The purpose of this study is to investigate the interaction effect of commercial loans in between trade Credit, retain earning, and entrepreneurial small and medium enterprises…
Abstract
Purpose
The purpose of this study is to investigate the interaction effect of commercial loans in between trade Credit, retain earning, and entrepreneurial small and medium enterprises (SMEs) performance.
Design/methodology/approach
In this research, the cross-sectional research design was used, and data were collected from 362 SMEs located in Pakistan by using a questionnaire. Correlation and regression analysis was adopted to establish the interaction effect of commercial loans in between trade credits, retain earning and entrepreneurial SMEs performance.
Findings
The results demonstrated that commercial loans, trade credit and retain earning have a positive relationship with entrepreneurial SMEs performance. The findings also confirmed the interaction effect of commercial loans in between retain earnings, trade credit and entrepreneurial SMEs performance.
Originality/value
The study examined the association and interaction effect of commercial loans in between retain earnings, trade credit and SMEs performance in the emerging state (Pakistan). So, this is the first time to study the relationship between these variables, which highly contributes to entrepreneurial SMEs literature.
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Muhammad Asif Khan, Asima Siddique and Zahid Sarwar
The size of non-performing loans (NPLs) plays a key role in the stability of the banking sector of a country. The factors that explain the NPLs contain very important information…
Abstract
Purpose
The size of non-performing loans (NPLs) plays a key role in the stability of the banking sector of a country. The factors that explain the NPLs contain very important information for banks. Studies in this regard with respect to developing states such as Pakistan have received little attention. This study aimed to scrutinize the determinants of NPLs observing a case of the banking sector in Pakistan over the period from 2005 to 2017.
Design/methodology/approach
The sample consists of the banking sector (i.e., commercial banks) listed in Pakistan Stock Exchange over the period of 2005–2017. The banking factors, including profitability, operating efficiency, capital adequacy and income diversification, were evaluated. The estimations were done by regression modeling using random and fixed effects through STATA software.
Findings
Results show that the operating efficiency and profitability indicators have a negative association with NPLs but were statistically significant, while capital adequacy and income diversification have a negative association with NPLs but were statistically insignificant.
Research limitations/implications
The present study has considered limited banking indicators as determinants of NPLs and was limited to a specific time period from 2005 to 2017.
Originality/value
The study is an attempt to investigate various banking factors that affect the NPLs with respect to developing economies such as Pakistan.
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Rabia Hassan, Zeeshan Ahmad Arfeen, Mehreen Kausar Azam, Zain ul Abiden Akhtar, Abubakar Siddique and Muhammad Rashid
Material selection, driven by wide and often conflicting objectives, is an important, sometimes difficult problem in material engineering. In this context, multi-criteria…
Abstract
Purpose
Material selection, driven by wide and often conflicting objectives, is an important, sometimes difficult problem in material engineering. In this context, multi-criteria decision-making (MCDM) methodologies are effective. An approach of MCDM is needed to cater to criteria of material assortment simultaneously. More firms are now concerned about increasing their productivity using mathematical tools. To occupy a gap in the previous literature this research recommends an integrated MCDM and mathematical Bi-objective model for the selection of material. In addition, by using the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS), the inherent ambiguities of decision-makers in paired evaluations are considered in this research. It goes on to construct a mathematical bi-objective model for determining the best item to purchase.
Design/methodology/approach
The entropy perspective is implemented in this paper to evaluate the weight parameters, while the TOPSIS technique is used to determine the best and worst intermediate pipe materials for automotive exhaust system. The intermediate pipes are used to join the components of the exhaust systems. The materials usually used to manufacture intermediate pipe are SUS 436LM, SUS 430, SUS 304, SUS 436L, SUH 409 L, SUS 441 L and SUS 439L. These seven materials are evaluated based on tensile strength (TS), hardness (H), elongation (E), yield strength (YS) and cost (C). A hybrid methodology combining entropy-based criteria weighting, with the TOPSIS for alternative ranking, is pursued to identify the optimal design material for an engineered application in this paper. This study aims to help while filling the information gap in selecting the most suitable material for use in the exhaust intermediate pipes. After that, the authors searched for and considered eight materials and evaluated them on the following five criteria: (1) TS, (2) YS, (3) H, (4) E and (5) C. The first two criteria have been chosen because they can have a lot of influence on the behavior of the exhaust intermediate pipes, on their performance and on the cost. In this structure, the weights of the criteria are calculated objectively through the entropy method in order to have an unbiased assessment. This essentially measures the quantity of information each criterion contribution, indicating the relative importance of these criteria better. Subsequently, the materials were ranked using the TOPSIS method in terms of their relative performance by measuring each material from an ideal solution to determine the best alternative. The results show that SUS 309, SUS 432L and SUS 436 LM are the first three materials that the exhaust intermediate pipe optimal design should consider.
Findings
The material matrix of the decision presented in Table 3 was normalized through Equation 5, as shown in Table 5, and the matrix was multiplied with weighting criteria ß_j. The obtained weighted normalized matrix V_ij is presented in Table 6. However, the ideal, worst and best value was ascertained by employing Equation 7. This study is based on the selection of material for the development of intermediate pipe using MCDM, and it involves four basic stages, i.e. method of translation criteria, screening process, method of ranking and search for methods. The selection was done through the TOPSIS method, and the criteria weight was obtained by the entropy method. The result showed that the top three materials are SUS 309, SUS 432L and SUS 436 LM, respectively. For the future work, it is suggested to select more alternatives and criteria. The comparison can also be done by using different MCDM techniques like and Choice Expressing Reality (ELECTRE), Decision-Making Trial and Evaluation Laboratory (DEMATEL) and Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE).
Originality/value
The results provide important conclusions for material selection in this targeted application, verifying the employment of mutual entropy-TOPSIS methodology for a series of difficult engineering decisions in material engineering concepts that combine superior capacity with better performance as well as cost-efficiency in various engineering design.
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Muhammad Athar Rasheed, Khuram Shahzad and Sajid Nadeem
This study aims to investigate the impact of transformational leadership on the innovation of small and medium enterprises (SMEs) through employee voice behaviors. Drawing from…
Abstract
Purpose
This study aims to investigate the impact of transformational leadership on the innovation of small and medium enterprises (SMEs) through employee voice behaviors. Drawing from the upper echelon theory, it is hypothesized that employee voice is the mediating mechanism through which transformational leadership affects the process and product innovation in SMEs.
Design/methodology/approach
Data was collected from 169 SMEs of Pakistan through an online self-administered questionnaire. The proposed hypotheses were tested using partial least squares structural equation modeling (PLS-SEM).
Findings
Findings confirm that transformational leadership positively affects both process and product innovation in SMEs and employee voice behavior mediates between these relationships.
Originality/value
This research contributes to both theoretical and practical domains by providing evidence that encouraging employees to raise their voice positively impacts product and process innovation and transformational leadership is a potential organizational factor to shape employee voice and process and product innovation. To the best knowledge, this is the first study that investigates the mediating role of employee voice between transformational leadership and process and product innovation in SMEs and developing country’s context.
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Sumaira Chamadia, Mobeen Ur Rehman and Muhammad Kashif
It has been demonstrated in the US market that expected market excess returns can be predicted using the average higher-order moments of all firms. This study aims to empirically…
Abstract
Purpose
It has been demonstrated in the US market that expected market excess returns can be predicted using the average higher-order moments of all firms. This study aims to empirically test this theory in emerging markets.
Design/methodology/approach
Two measures of average higher moments have been used (equal-weighted and value-weighted) along with the market moments to predict subsequent aggregate excess returns using the linear as well as the quantile regression model.
Findings
The authors report that both equal-weighted skewness and kurtosis significantly predict subsequent market returns in two countries, while value-weighted average skewness and kurtosis are significant in predicting returns in four out of nine sample markets. The results for quantile regression show that the relationship between the risk variable and aggregate returns varies along the spectrum of conditional quantiles.
Originality/value
This is the first study that investigates the impact of third and fourth higher-order average realized moments on the predictability of subsequent aggregate excess returns in the MSCI Asian emerging stock markets. This study is also the first to analyze the sensitivity of future market returns over various quantiles.
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Oussama Saoula, Amjad Shamim, Norazah Mohd Suki, Munawar Javed Ahmad, Muhammad Farrukh Abid, Ataul Karim Patwary and Amir Zaib Abbasi
This study aims to examine the impact of website design, reliability and perceived ease of use as an engagement motivational factors on customer e-trust and e-retention in online…
Abstract
Purpose
This study aims to examine the impact of website design, reliability and perceived ease of use as an engagement motivational factors on customer e-trust and e-retention in online shopping.
Design/methodology/approach
By using deductive approach, quantitative methods and purposive sampling technique, this study has collected the data from 295 young online customers to enhance an understanding of website design, reliability and perceived ease of use in an online shopping context.
Findings
The findings revealed interesting insights where reliability is the most significant predictor of customer e-trust in online shopping, followed by perceived ease of use and website design. In addition, a significant mediating effect of e-trust is found between customer e-retention, website design, reliability and perceived ease of use.
Research limitations/implications
Future research is recommended to predict the antecedents of online engagement motivational factors with value co-creation and co-creation experience in online shopping context.
Originality/value
This study offers fresh insights about driving elements and impediments of online customer retention. Customer engagement comprising of website design, reliability and perceived ease of use appear to influence the online customer retention through direct and indirect effect.
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Zeshan Ahmad, Shahbaz Sharif, Muhammad Ahmad Alrashid and Muhammad Nadeem
The purpose of this study is to investigate how the congruence between predecessor and successor personality traits (PTs) with the values of their small family business (SFB…
Abstract
Purpose
The purpose of this study is to investigate how the congruence between predecessor and successor personality traits (PTs) with the values of their small family business (SFB) contributes to a successful succession transition across generations.
Design/methodology/approach
The conceptual model method was employed in this investigation, which describes an entity and identifies issues that should be considered in a study (MacInnis, 2011). It involves a form of theorizing that seeks to create a nomological network around the focal concept, to examine and detail the causal linkages and mechanisms at play (Delbridge and Fiss, 2013).
Findings
Drawing on the trait activation theory (TAT), this study conceptualizes that the congruence of the successor's PTs with those of the predecessor, as well as the values, transitions and nature of the assigned task, activates the successor's PTs and motivates him to work diligently for a successful succession transition while preserving the business's core values established by the founder.
Research limitations/implications
This study is an eye-opener for strategists and SFB predecessors to ponder the successor's PTs disparities across generations. Additionally, it urges them to consider the congruence of SFB's values and nature of operations with the successor's PTs for successful succession transition. Thus, such awareness may contribute to stabilizing the SFB's survival rate.
Originality/value
This study contributed to the existing literature by answering how predecessor’s and successor's PTs congruence and SFB's values and nature of operations congruence with their PTs may contribute to successful succession transition across generations. This study contributed to the TAT by thematically explaining the organizational cues to bridge a relationship between entrepreneurial personality traits (EPT) and succession success of SFBs.