The purpose of this study is to explore the possible impact of banking market structure on the idiosyncratic risk of financially dependent firms in China.
Abstract
Purpose
The purpose of this study is to explore the possible impact of banking market structure on the idiosyncratic risk of financially dependent firms in China.
Design/methodology/approach
The study analyzes firm-level data for China from 1999 to 2018 using a two-step dynamic panel system generalized method of moments (GMM).
Findings
The findings imply that bank competition lowers corporate risk, particularly among firms that are highly dependent on external funding for their financing needs. The findings are consistent with alternative indicators of competition, corporate risk, and financial dependence. The analysis of the transmission mechanism – the channel through which competition affects corporate risk – reveals that bank competition reduces corporate risk by curtailing financing constraints faced by firms.
Research limitations/implications
The competition-enhancing policy should consider the optimum level of bank competition for financial and economic stability. Further research is necessary to define the “desirable” or “optimum” level of bank competition.
Practical implications
In China, where the banking sector is still highly concentrated, the findings of this study call for policies aimed at encouraging healthy competition among banks. Nevertheless, such a policy must also consider the extent of bank competition that is optimal for the economy, particularly for financial and economic stability.
Originality/value
The paper provides the first evidence of the possible linkage between bank competition and corporate risk in China.
Details
Keywords
Faisal Khan, Mohamad Ali Bin Abdul-Hamid, Saidatunur Fauzi Saidin and Shatha Hussain
This study aims to investigate whether organizational complexity (hereafter firm complexity) increases audit report lag (ARL) in a unique environment of GCC countries.
Abstract
Purpose
This study aims to investigate whether organizational complexity (hereafter firm complexity) increases audit report lag (ARL) in a unique environment of GCC countries.
Design/methodology/approach
The research study uses a panel data set of 6,084 firm-year observations of nonfinancial firms from GCC economies from 2009 to 2022. First, the study uses an ordinary least square estimator to examine the association of firm complexity with ARL. Second, for robustness purposes, the study applies the propensity score matching technique.
Findings
This research study finds that the firms’ complexity increases ARL. Supporting the argument that auditors respond to firm complexity with increased effort, the authors find a positive relation of firm complexity with ARL. This relationship is augmented by auditor change, auditors’ tenure, auditor-qualified opinion and adoption of IFRS. In addition, the authors also find that Big-4 and audit firm industry specialization curtail the positive impact of firm complexity on ARL.
Research limitations/implications
Firms in the GCC have less time to complete their audit and complex firms are likelier to have bigger ARLs. This study provided evidence regarding the curtailing effect of audit quality in GCC. Our findings suggest policymakers and reformers choose improved audit quality to reduce the possibility of larger ARL.
Originality/value
This study enriches the scholarship by presenting a mechanism for reducing the ARL of complex firms through higher audit quality. This study contributes to agency theory by emphasizing audit quality’s important role in emerging markets.
Details
Keywords
Nida Hussain, Baoming Li and Habib Elahi Sahibzada
Under the unique context of COVID-19, this paper aims to analyze how the Government of Pakistan (GoP) provides financial and non-financial support to women entrepreneurs in…
Abstract
Purpose
Under the unique context of COVID-19, this paper aims to analyze how the Government of Pakistan (GoP) provides financial and non-financial support to women entrepreneurs in Pakistan. Drawing on the resource-based theory of entrepreneurship (RBTE), the study advances the understanding of resources and grants offered by GoP to women entrepreneurs to help them in business survival.
Design/methodology/approach
The study adopts qualitative research method to address the questions: how does the Pakistani government respond to issues faced by women entrepreneurs during the COVID-19 pandemic, and what assistance and initiatives were implemented by GoP? Semi-structured interviews were conducted with twenty on-job government officials related to the entrepreneurial sector in Pakistan.
Findings
The paper reveals that during the pandemic, GoP keenly communicated with women entrepreneurial representatives to comprehend their business challenges. In addition, waivers and incentives were provided to support their business activities. GoP further invited women entrepreneurs to contribute their knowledge and give suggestions in policy making.
Originality/value
Lots of research have been conducted to identify the issues faced by women entrepreneurs during the pandemic. However, the specific strategies, policies, and support provided by the governments to address these issues have often been overlooked. This paper fills such gap with focus on the governing bodies and policymakers in Pakistan towards women entrepreneurship during the COVID-19 crisis.
Details
Keywords
Umair Ahmed, Muhammad Saeed and Shah Jamal Alam
This paper aims to explore the use and impact of social media, specifically Twitter (now X), in political mobilization in Pakistan. It focuses on the events followed by the…
Abstract
Purpose
This paper aims to explore the use and impact of social media, specifically Twitter (now X), in political mobilization in Pakistan. It focuses on the events followed by the no-confidence motion against Imran Khan as Pakistan’s prime minister in April 2022 and the protest campaign that ensued, facilitated through the strategic use of the Urdu hashtag #امپورٹڈ_حکومت_نامنظور (translated as “imported-government unacceptable”) on Twitter, both within and outside Pakistan.
Design/methodology/approach
Using Web scraping, data from Twitter was extracted and analyzed between 2022 and 2023. By probing into user account profiles and interactions with this hashtag, this paper investigates the claims surrounding the hashtag’s popularity, by identifying suspicious accounts and their contributions in the trending of the hashtag.
Findings
Findings suggest that the claim of the hashtag's unprecedented success was overhyped, further suggesting that the popularity and impact of the social media campaign were exaggerated. Despite high engagement rates, the study indicates a discrepancy between perceived influence and actual impact on public sentiment and political mobilization.
Originality/value
This paper contributes to the literature on social media’s role in political mobilization and agenda-setting in the Pakistani context. More generally, understanding hashtag dynamics and their impact on shaping public opinion, may be beneficial to academics and practitioners in better understanding the role of digital platforms in the politics.
Details
Keywords
Imran Khan, Mehreen Khan and Muhammad Tahir
This study aims to investigate the performance differences of Islamic and conventional banks in Pakistan by using financial ratios.
Abstract
Purpose
This study aims to investigate the performance differences of Islamic and conventional banks in Pakistan by using financial ratios.
Design/methodology/approach
This study analyzed 5 Islamic and 19 conventional banks for the periods of 2007-2014. Two types of analyses were performed – sample t-test and logistic regression. Analysis was also performed on sub-sample considering crisis effects.
Findings
It was found that Islamic banks are relatively better in profitability, efficiency, risk and liquidity management, while conventional banks are superior in asset quality. Higher efficiency of Islamic banks contradicts with previous studies conducted in Pakistan. Probable reasons for this include phenomenal expansion of Islamic banking industry and its broad appeal to customers in Pakistan. Risk management practices of Islamic banks are superior to conventional banks, as Shariah rules restrict pure speculation in monetary terms. Better asset quality of conventional banks is attributed to their recognition and product diversity. During the crisis, Islamic banks were found less profitable than their counterparts.
Research limitations/implications
This study suggests that high operational efficiency of Islamic banks should be converted into technical efficiency by improving human resource, introducing innovative market-oriented products and prudent resource allocations. As operational efficiency does not promise returns in long term, to sustain ongoing phenomenal growth of Islamic banking, management needs to gain customer trust.
Originality/value
This is an original research that compares performance differences across Islamic and conventional banks by using financial ratios.
Details
Keywords
Abid Hussain, Amjid Khan and Pervaiz Ahmad
As a part of doctoral study, this study aims to analyze research on library management models (LMMs) by conducting a systematic literature review (SLR).
Abstract
Purpose
As a part of doctoral study, this study aims to analyze research on library management models (LMMs) by conducting a systematic literature review (SLR).
Design/methodology/approach
A Preferred Reporting Items for Systematic Review and Mata-Analysis approach was used to search four databases. The search criteria included studies published in English until 2022, resulting 9,125 records. Out of these records, a total of 36 studies were selected for final analysis
Findings
The results show a positive attitude among researchers toward the development of LMM for libraries globally. The results depict that more than one-third (39%) of the target population was comprised of academic staff and students. The majority (91.76%) of studies were conducted using survey. Quantitative methods were predominant (89%) for LMMs. There were a significant number of studies conducted in 2016. The country-wise distribution shows the USA and China each contribute (20%) of the studies.
Practical implications
The findings of this research could assist policymakers and authorities in reconciling the LMMs applied in libraries for providing efficient access to information resources and services to end users.
Originality/value
To the best of the authors’ knowledge, this study is unique as no comprehensive study has been conducted on LMMs using the SLR method.
Details
Keywords
Bernard Lim Jit Heng, Phuah Kit Teng, Siti Intan Nurdiana Wong Abdullah, Ow Mun Waei and Khoong Tai Wai
By market capitalisation, Bitcoin, which debuted in 2009, is the biggest cryptocurrency globally. A decentralised ledger system called blockchain is used in the creation…
Abstract
By market capitalisation, Bitcoin, which debuted in 2009, is the biggest cryptocurrency globally. A decentralised ledger system called blockchain is used in the creation, distribution, trading, and storage of Bitcoin, with the original goal being to address the shortcomings of fiat currency. This chapter highlights potential dangers and legal concerns when Bitcoin interacts with the actual economy and the traditional financial system. Besides, the details also discuss the platform’s design principles and attributes for a non-technical readership. When assessing its transactional potential, some recognise its potential for speculation, while others are doubtful of its admirable intent. The write-up also explores the potential of the adoption of cryptocurrencies in Southeast Asia due to the vast adoption of Bitcoins in countries such as Vietnam and the Philippines following the establishment of cryptocurrency technology and e-commerce. In addition, rankings of the cryptocurrency and legal stance from each country in Southeast Asia were exhibited as the solid foundation of cryptocurrencies existent for transaction purposes. The rise of central bank digital currencies (CBDC) and the future directions of Bitcoins were also highlighted in this write-up to spur the debate on whether cryptocurrency remains a fad of sensation or is legalised as the medium of exchange in an ever-growing digital world of commerce.
Details
Keywords
Shivani Shivani, Manisankar Datta, Seema Sharma and Shveta Singh
The growing pressure on businesses to balance environmental sustainability with profit maximisation has led to the development of green entrepreneurial orientation (GEO), which…
Abstract
Purpose
The growing pressure on businesses to balance environmental sustainability with profit maximisation has led to the development of green entrepreneurial orientation (GEO), which proactively integrates green practices into core business operations. Grounded in the ecological modernisation theory, GEO acts as a green management practice which helps in achieving competitiveness through environmental innovation. However, despite the growing emphasis on GEO, there remains a gap in understanding how specific drivers influence the organisational structures and processes that lead to GEO. Therefore, the study addresses this gap by analysing the key drivers of GEO using an integrated approach.
Design/methodology/approach
In this study, total interpretive structural modelling (TISM) and cross-impact matrix multiplication applied to classification (MICMAC) were used to identify and interpret the interrelationship between key drivers of GEO. Here, TISM technique aided in constructing a contextual relationship-based structural model of drivers, whereas MICMAC assisted in categorising the drivers based on their driving and dependence power. A case evaluation was also carried out in the Indian textile industry to validate the TISM model.
Findings
The result indicates that institutional pressure, managerial environment concern, organisational resilience and big data analytical capabilities are the most influential drivers of GEO at organisational level, and other drivers act as secondary and linked variables in this process. The MICMAC analysis further supports the results of TISM. In addition, the overall TISM model is validated in the Indian textile sector.
Practical implications
The study findings will assist researchers and policymakers in adopting a systematic approach to prioritise GEO in pollution intensive industries. Moreover, it will help managers in leveraging GEO to achieve strategic advantages amid environmental challenges.
Originality/value
This study is amongst the first to employ an integrated qualitative approach to analyse drivers of GEO.
Details
Keywords
Muhammad Sohail, Rahila Naz and Rabeeah Raza
The purpose of this paper is to address the entropy analysis of the 3D flow of Maxwell nanofluid containing gyrotactic microorganism in the presence of homogeneous–heterogeneous…
Abstract
Purpose
The purpose of this paper is to address the entropy analysis of the 3D flow of Maxwell nanofluid containing gyrotactic microorganism in the presence of homogeneous–heterogeneous reactions with improved heat conduction and mass diffusion models over a stretched surface. Improved models are supported out by utilizing Cattaneo–Christov heat flux and generalized Fick’s law, respectively.
Design/methodology/approach
Governing equations which present the given flow phenomenon are modeled in the form of PDEs by applying boundary layer analysis and then suitable makeovers are engaged to transfigure prevailing partial differential equations into a set of ordinary differential equations. Transformed equations are handled via optimal homotopy analysis process in computational tool Mathematica and also a special case of already published work is substantiated and found to be in excellent settlement.
Findings
The bearing of innumerable convoluted physical parameters on velocity, temperature, concentration, reaction rate, the concentration of motile microorganism and entropy generation are presented and deliberated through graphs. Moreover, the convergence of the homotopic solution is presented in tabular form which confirms the reliability of the proposed scheme. It is perceived that mounting values of the magnetic parameter and Brinkman number boosts the irreversibility analysis and Bejan number diminishes for these parameters. Moreover, the growing values of Prandtl and Schmidt numbers reduce the temperature and concentration fields, respectively.
Practical implications
The work contained in this paper has applications in a different industry.
Originality/value
The work contained in this paper is original work and it is good for the researcher in the field of applied mathematics.
Details
Keywords
This chapter examines how information and communication technology (ICT) initiatives affect customers’ everyday routines with an emphasis on how electronic word of mouth (eWOM…
Abstract
This chapter examines how information and communication technology (ICT) initiatives affect customers’ everyday routines with an emphasis on how electronic word of mouth (eWOM) affects their purchasing decisions and determines if eWOM might serve as a useful trust factor when making purchasing decisions. This chapter is based on both primary and secondary data and examines how eWOM affects customers’ buying decisions in this era of increasing social media platform usage. One hundred individuals from various regions of Karachi provided the primary data, collected through an online survey. Secondary data are also employed, such as details from business websites, scientific papers, and other related publications of businesses. In Karachi’s developing digital market, it was discovered that eWOM via social media used to have a substantial impact on consumers’ shopping habits. The effectiveness of social media content depends greatly on how appropriate it is for the intended audience. Social media marketing doesn’t quite simply aim to improve consumers’ impressions or directly advertise things. It also entails maintaining and fostering relationships between businesses and prospective customers. According to the research, consumers’ recommendations and ratings of goods and services made on social media, whether through eWOM or another channel, influenced their decisions to buy. Customers consider social media to be trustworthy when making decisions about what to buy. Customers are currently adopting social media as opposed to more conventional means to learn about new products. Most customers believe that eWOM from social media greatly affected their shopping choices, according to the results of the study.