Memoona Sajid, Hashmat Shabbir and Raheel Safdar
The purpose of this study is to examine the relationship between the ownership concentration and cost of equity of firms in Pakistan context. Moreover, this study also…
Abstract
Purpose
The purpose of this study is to examine the relationship between the ownership concentration and cost of equity of firms in Pakistan context. Moreover, this study also investigates how the presence of disclosure quality and governance quality affects the relationship between ownership concentration and the cost of equity of firms.
Design/methodology/approach
Data are collected from six non-financial sectors listed on Pakistan Stock Exchange during the period of 2015–2019. This study uses pooled ordinary least square (OLS) method to validate the proposed hypothesis in STATA.
Findings
The study found a positive and significant relationship between ownership concentration and cost of equity. The results also show that better disclosure and governance quality negatively moderates the relationship between ownership concentration and cost of equity.
Practical implications
The findings of this study will help firm managers to implement a high level of disclosure and governance quality in firms to reduce agency problems which will further help a firm in reducing the firm's cost of equity. Furthermore, this study is valuable for practitioners regarding thinking about the process of designing ownership structures to protect minority shareholders' rights, especially in emerging markets.
Originality/value
The novelty of this study is having better disclosure quality and more board independence members helps firms with higher ownership concentration in reducing the cost of equity.
Details
Keywords
Abdul Habib Zaray, Abid Hasan, Sparsh Johari, Parvez Ahmad Hashmat and Kumar Neeraj Jha
The poor quality of construction work in war-affected regions is a significant issue. The large-scale destruction to the existing infrastructure from the war necessitates cost and…
Abstract
Purpose
The poor quality of construction work in war-affected regions is a significant issue. The large-scale destruction to the existing infrastructure from the war necessitates cost and time-efficient delivery of construction projects during and post-war to bring normalcy to affected lives and places. Consequently, there is always a tendency to finish construction projects in the shortest possible time on a limited budget without following the proper quality management processes. However, the poor quality of construction projects continues to affect the country's development, growth, credibility, reputation, and public safety for several years after the war. To this end, the present study was conducted to evaluate the significant attributes and factors contributing to the poor quality of construction projects in the war-affected Afghan construction sector.
Design/methodology/approach
A total of 31 attributes influencing construction project quality were ranked based on 110 completed survey responses collected from Afghan construction professionals. Moreover, independent samples t-test, Spearman's rank correlation test, and exploratory factor analysis were conducted.
Findings
The study found a moderate consensus between clients and contractors on attributes' rankings. In addition, the independent samples t-test showed statistically significant differences in means values of responses from clients and contractors for eight attributes. Based on factor analysis, 19 important attributes (median value greater than or equal to four) were classified into 4 latent factors – (1) poor-quality assurance and control, (2) unethical practices, (3) design and drawing errors, and (4) knowledge and skills gap.
Originality/value
Evaluating the factors affecting the quality of construction projects will help clients, government departments, and construction practitioners improve the construction quality management practices. The findings will also inform the policies and procedures of international aid providers.