Muhammad Irfan Javaid and Attiya Yasmin Javid
The purpose of this paper is to determine whether the original and the revised versions of the existing prediction models are the best tools for assessing the going concern…
Abstract
Purpose
The purpose of this paper is to determine whether the original and the revised versions of the existing prediction models are the best tools for assessing the going concern assumption of a firm in the creditor-oriented regime.
Design/methodology/approach
The analysis begins from estimating the classification accuracy of the original versions of the bankruptcy, going concern and liquidation prediction models. At the second step, the revised versions of the aforesaid existing prediction models are developed. At the third step, the accounting-based going concern prediction model is proposed by using multiple discriminant analysis for the creditor-oriented regime. The sample contains the financial ratios of manufacturing firms for the period 1997–2014.
Findings
The finding indicates that the five discriminatory variables, which belong to “income statement” and “statement of financial position,” of the proposed model are not only useful for evaluating the going concern assumption of a firm, but also give aid for evaluating the financial fraud risk of a firm as compared to the original and revised versions of the prediction models that are developed for the debtor-oriented regime.
Research limitations/implications
The external validity of the proposed prediction model can be tested on the large data sets of the countries where the liquidation provisions are a part of their local corporate law.
Practical implications
The proposed accounting prediction model will be helpful for the internal and external auditors in order to determine the going concern assumption at planning, performing and evaluation stages.
Originality/value
The proposed accounting-based going concern prediction model is based on liquidated firms.
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Muhammad Irfan Javaid Attari, Matloub Hussain and Attiya Y. Javid
This paper is a direct extension of the work by Hussain et al. (2012). They have investigated a long-term relationship between climatic change and economic growth in case of…
Abstract
Purpose
This paper is a direct extension of the work by Hussain et al. (2012). They have investigated a long-term relationship between climatic change and economic growth in case of Pakistan. Agricultural sector plays an important role in economic field, whereas industrial sector is the main source of carbon dioxide (CO2) emission. Therefore, this study aims to replace economic growth variable with industrial growth in case of Pakistan.
Design/methodology/approach
Investigation is made on the basis of the environmental Kuznets curve by using the time series data during the period 1971-2009. The per capital carbon dioxide (CO2) emission is used as an environmental indicator and per capita industrial income as the economic indicator. Different econometric tools including augmented Dickey–Fuller, autoregressive distributed lag and Granger-causality test are used to verify this relationship.
Findings
The empirical findings will help the policy-makers of Pakistan in developing new standards and monitoring networks for reducing CO2 emission. It is essential to extend the current research work at provincial and different sectors levels in order to have clear understanding about the impact of current emission rate.
Originality/value
This study replaces economic growth variable with industrial growth in case of Pakistan because the industrial sector is the main source of carbon dioxide (CO2) emission. This study is to investigate a long-term relationship between climatic change and industrial growth in case of Pakistan.
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Matloub Hussain, Muhammad Irfan Javaid and Paul R. Drake
The purpose of this paper is to examine the relationship among environmental pollution, economic growth and energy consumption per capita in the case of Pakistan. The per capital…
Abstract
Purpose
The purpose of this paper is to examine the relationship among environmental pollution, economic growth and energy consumption per capita in the case of Pakistan. The per capital carbon dioxide (CO2) emission is used as the environmental indicator, the commercial energy use per capita as the energy consumption indicator, and the per capita gross domestic product (GDP) as the economic indicator.
Design/methodology/approach
The investigation is made on the basis of the environmental Kuznets curve (EKC), using time series data from 1971 to 2006, by applying different econometric tools like ADF Unit Root Johansen Co‐integration VECM and Granger causality tests.
Findings
The Granger causality test shows that there is a long term relationship between these three indicators, with bidirectional causality between per capita CO2 emission and per capita energy consumption. A monotonically increasing curve between GDP and CO2 emission has been found for the sample period, rejecting the EKC relationship, implying that as per capita GDP increases a linear increase will be observed in per capita CO2 emission.
Research limitations/implications
Future research should replace the economic growth variable, i.e. GDP by industrial growth variable because industrial sector is major contributor of pollution by emitting CO2.
Practical implications
The empirical findings will help the policy makers of Pakistan in understanding the severity of the CO2 emissions issue and in developing new standards and monitoring networks for reducing CO2 emissions.
Originality/value
Energy consumption is the major cause of environmental pollution in Pakistan but no substantial work has been done in this regard with reference to Pakistan.
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Omar Javaid, Aamir Feroz Shamsi and Irfan Hyder
There are many entrepreneurial communities in the Asian subcontinent, which are known for their economic resilience and religious orientation but have received limited attention…
Abstract
Purpose
There are many entrepreneurial communities in the Asian subcontinent, which are known for their economic resilience and religious orientation but have received limited attention in extant literature. These communities include Memon, Delhiwala, Chinioti, Ismaili and Bohri, which have been persistent in keeping their members economically stable, as many centuries, while also retaining their religio-sociocultural identity. This paper aims to add to the body of literature by documenting the possible factors, which contribute toward advancing socio-economic justice for the members of respective communities.
Design/methodology/approach
This study uses Eisenhardth research strategy within a social constructivist paradigm to process data from in-depth interviews, memos and documentary sources to explore the internal dynamics of three most prominent of these communities (Memon, Delhiwala and Chinioti) in Pakistan.
Findings
The findings reveal that the secret to their resilience is, perhaps, rooted in their religio-sociocultural communal norms, which may not just ensure effective wealth redistribution among the deserving segments of the society but may also enable its deserving members to achieve self-reliance through community-supported–entrepreneurial–activity. This study proposes that a culture of community-based–family–entrepreneurship coupled with the spirit of cooperation, sacrifice and reciprocity may eliminate the possibility of socioeconomic injustice.
Social implications
The religious entrepreneurial communities may be seen as an alternate to free-market or state-driven methods to impart socioeconomic justice where needed. The voluntary inclination of entrepreneurs in such communities to facilitate those in need may, perhaps, reduce or even eliminate the need to involve state intervention to redistribute wealth through taxation, which may also eliminate the cost of the state bureaucracy, which is used for the collection and redistribution of taxes.
Originality/value
The findings add to the body of literature which could help similar communities to improve their socioeconomic stability in a just manner for all its members. Policymakers can also take notice of the religio-sociocultural norms at the source of socioeconomic justice within the respective communities to formulate policies conducive to sustaining such norms where necessary.
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Talat Islam, Arooba Chaudhary and Muhammad Faisal Aziz
This study aims to examine the effect of knowledge hiding (KH) on organizational citizenship behavior toward individuals (OCBI) through the mediation of self-conscious emotions…
Abstract
Purpose
This study aims to examine the effect of knowledge hiding (KH) on organizational citizenship behavior toward individuals (OCBI) through the mediation of self-conscious emotions (SCE), namely, shame and guilt. This paper further considers the supervisor’s Islamic work ethics (IWE) as a conditional variable.
Design/methodology/approach
In this quantity-based research, this paper collected data from 473 employees working in various service and manufacturing organizations through Google form at two-lags.
Findings
The study applied structural equation modeling and identified that employees experience SCE due to KH. More specifically, rationalized hiding was found to have a negative effect, whereas playing dumb and evasive hiding was found to have a positive effect on shame and guilt. The results also revealed SCE (shame and guilt) as mediators between KH and OCBI. Further, the supervisor’s IWE was found to be a conditional variable to strengthen the association between KH and SCE.
Research limitations/implications
The study collected data from a single source. However, the issue of common method variance was tackled through time-lags.
Practical implications
The study suggests that supervisors must communicate with employees about the negative outcomes of KH. They must create such an environment that discourages the engagement of employees in KH and encourages the employees to engage themselves in helping behaviors to maintain a productive and creative work environment.
Originality/value
This study adds to the limited literature on the emotional consequences of KH from knowledge hiders’ perspective and unfolds the behavior-emotion-behavior sequence through the emotional pathway. More specifically, this study examined the negative emotional effect of hiding the knowledge that leads to compensatory strategy (organizational citizenship behavior) through SCE (shame and guilt). Finally, zooming into SCE, this study elucidates the supervisor’s IWE as a conditional variable.
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Sami Ullah, Mohit Kukreti, Abdul Sami and Muhammad Rehan Shaukat
This research explains the critical role of technological readiness and green dynamic capabilities in enhancing the sustainability performance of manufacturing firms, which is…
Abstract
Purpose
This research explains the critical role of technological readiness and green dynamic capabilities in enhancing the sustainability performance of manufacturing firms, which is pivotal for achieving the United Nations’ Sustainable Development Goals. The theoretical framework is grounded in the dynamic capability theory, positing that technological readiness enhances a firm’s green dynamic capabilities, and employee green behavior moderates the effect on the sustainability performance of manufacturing firms.
Design/methodology/approach
Quantitative data from 1,660 managerial employees of a diverse sample of manufacturing firms was aggregated at the firm level using interclass correlation and interrater agreement, ensuring robustness using at least two responses per firm. With the final dataset of 418 firms, structural equation modeling was conducted using AMOS26.
Findings
The findings reveal that technological readiness positively affects sustainability performance and enhances it through green dynamic capabilities. Furthermore, the study highlights the positive moderating role of employees’ green behavior, amplifying the impact of green dynamic capabilities on sustainability performance.
Originality/value
This research makes a novel contribution to the body of knowledge by integrating dynamic capability theory with empirical evidence on sustainability performance. It represents a significant step toward promoting a more sustainable and responsible future for organizations and society and provides comprehensive insights into the complex interplay of these variables. These insights are crucial for academia, industry practitioners and policymakers striving to foster sustainable practices within the manufacturing sector.
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Muhammad Rafiq and Duan Xiuqing
This research aims to explore the effect of green inclusive leadership (GIL) on environmental performance (EP). It further investigates the mediating role of pro-environmental…
Abstract
Purpose
This research aims to explore the effect of green inclusive leadership (GIL) on environmental performance (EP). It further investigates the mediating role of pro-environmental behavior (PEB) and the moderating role of environmental strategy (ES) in shaping this association.
Design/methodology/approach
Data were gathered from 708 employees working in the Chinese manufacturing sector. We used SPSS macro-PROCESS (specifically Model 7) for the empirical analysis.
Findings
The findings exposed a significant positive effect of GIL on EP. PEB was found to mediate this relationship, and ES significantly moderated the relationship between GIL and PEB.
Practical implications
The findings of this study provide a better understanding of how organizations can enhance their EP by fostering GIL and promoting PEB among employees. It also emphasizes the importance of incorporating an effective ES to strengthen the influence of green leadership on PEB.
Originality/value
This research contributes to the growing body of literature on green leadership and EP by revealing the mediating role of PEB and the moderating role of ES. This nuanced understanding could help organizations to implement more effective strategies for environmental sustainability.
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Kamran Mohy-Ud-din, Muhammad Azam, Hamad Ul Haq and Shakeel Aslam
This study aims to investigate the determinants of localised corporate social responsibility (LCSR) activities in Pakistan. The present study explores factors influencing the…
Abstract
Purpose
This study aims to investigate the determinants of localised corporate social responsibility (LCSR) activities in Pakistan. The present study explores factors influencing the corporate sector to promote the welfare of local areas where the company has located its manufacturing plants.
Design/methodology/approach
The authors selected 100 companies listed on the Pakistan Stock Exchange. Data were collected from the companies’ financial reports issued from 2012 to 2017 (N = 700). The authors analysed the data using fixed- and random-effects regression models to test the factors influencing LCSR activities.
Findings
The findings indicate that directors’ ancestry significantly enhances LCSR. This implies that boards with a greater number of directors whose names indicate their relevant ancestry are more likely to engage in LCSR. Moreover, environmental-protection activity by the corporate sector promotes LCSR initiatives. However, Pakistan’s corporate sectors are not promoting the essential aspects of their workers’ welfare, e.g. health and education.
Research limitations/implications
The present study was limited to the directors’ ancestry, environmental corporate social responsibility (CSR), CSR for factory workers and donation. Other factors, such as culture and language, may play an important role in determining LCSR.
Practical implications
The results suggest that the Security and Exchange Commission of Pakistan should emphasise the importance of LCSR to develop rural areas and devise meaningful policy for CSR. These findings provide substantial evidence that regulators and policymakers should encourage the inclusion of LCSR by firms listed on the stock exchange to increase environmental protection through CSR policy.
Originality/value
To the best of the authors’ knowledge, this study is the first to explore the determinants of LCSR. Moreover, the present study investigates for the first time the influence of directors’ ancestry on rural development in any of Asia’s developing countries, including Pakistan. The findings of this study contribute theoretically and empirically to the literature.
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Rizwan Ali, Ramiz Ur Rehman, Madiha Kanwal, Muhammad Akram Naseem and Muhammad Ishfaq Ahmad
This study aims to examine the key determinants of corporate social responsibility (CSR) disclosure of all listed banks that operate their function in an emerging market, Pakistan.
Abstract
Purpose
This study aims to examine the key determinants of corporate social responsibility (CSR) disclosure of all listed banks that operate their function in an emerging market, Pakistan.
Design/methodology/approach
This study applied the principles of systems-oriented theories such as legitimacy, stakeholder and agency theory. The hypothesis is linking the bank’s social disclosure and its determinants are developed. The relevant data was gathered from the bank’s annual reports and Pakistan Stock Exchange from 2008 to 2018. Further, governance attributes and performance measures are used as the predictor variable and the CSR score as the predicted variable. This study applied panel data analysis on the sampled banks to examine the proposed hypothesis for empirical estimation.
Findings
This study’s inclusive results confirm that the hypothesized determinants of board size, foreign directors on board and female directors on board positively impact the CSR disclosure potential. Board size significantly explains the CSR disclosure in all bank samples. The determined performance measures, profitability and liquidity show a significant positive relationship with CSR disclosure except for few exceptions.
Research limitations/implications
This study’s results lack generalizability due to its unique setting; future researchers can extend the research scope in national–international settings and a regional context.
Practical implications
This study enriches the literature on CSR disclosure determinants and is relevant to practice in an emerging context. It can be helpful from a policy perspective; institutions (bodies) that regulate banks should recognize the governance and performance aspects essential to enhancing CSR disclosure and enhancing the bank’s performance hence value.
Originality/value
This research offers empirical evidence that sheds light on the key governance attributes and performance measures that partially affect CSR disclosure and its extent. In doing so, this study’s findings contribute to the literature significantly, along with regulators, shareholders, deposit holders, individual–institutional investors.
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Muhammad Shahbaz and Avik Sinha
The purpose of this paper is to provide a survey of the empirical literature on environmental Kuznets curve (EKC) estimation of carbon dioxide (CO2) emissions over the period of…
Abstract
Purpose
The purpose of this paper is to provide a survey of the empirical literature on environmental Kuznets curve (EKC) estimation of carbon dioxide (CO2) emissions over the period of 1991–2017.
Design/methodology/approach
This survey categorizes the studies on the basis of power of income in empirical models of EKC. It has been hypothesized that the EKC shows an inverted U-shaped association between economic growth and CO2 emissions.
Findings
For all the contexts, the results of EKC estimation for CO2 emissions are inconclusive in nature. The reasons behind this discrepancy can be attributed to the choice of contexts, time period, explanatory variables, and methodological adaptation.
Research limitations/implications
The future studies in this context should not only consider new set of variables (e.g. corruption index, social indicators, political scenario, energy research and development expenditures, foreign capital inflows, happiness, population education structure, public investment toward alternate energy exploration, etc.), but also the data set should be refined, so that the EKC estimation issues raised by Stern (2004) can be addressed.
Originality/value
By far, no study in the literature of ecological economics has focused on the empirical estimation of EKC for CO2 emissions. This particular context has been used for this study, as CO2 is one of the highest studied pollutants in the ecological economics, and especially within the EKC hypothesis framework.