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 Usman Arshad, Fahad Najeeb Khan, Muhammad Ishfaq, Muhammad Nadir Shabbir and Syed Mehmood Raza Shah
This study aims to explore the firm's specific, opacity and economy-specific variables to explain the variation in South Asian market returns and indicate that how the difference…
Abstract
Purpose
This study aims to explore the firm's specific, opacity and economy-specific variables to explain the variation in South Asian market returns and indicate that how the difference in adoption of accounting standards refers to the effect of the movement in stock returns.
Design/methodology/approach
Following the scope of the study, factor analysis, fixed effect, Driscoll and Kraay standard errors (DKSE) and Panel Corrected standard error (PCSE) models have been inducted to determine the influence of firm-specific, opacity and economy-specific variables on stock returns. The sample of study comprises 1,885 firms from five countries located in the South Asia region with the period 2005–2018. To ensure the reliability of data, firm-specific data have been collected from DataStream International, while an international country risk guide was used to compile the data for economy-specific variables.
Findings
This study concluded that firm-specific variables showed a consistent and significant association with stock return except for beta, accrual and momentum while earning aggressiveness was the only factor in opacity measure to capture the variation in stock return. The implementation of international accounting standards seemed to be significant and proves to be helpful to enhance the quality of accounting information.
Research limitations/implications
The limitations of this study comprised the estimation error by avoiding the firm's observations with negative equity in case of earning opacity and majority (more than 50%) of the observation belongs to a single market as India out of final sample which leads to having biasedness in findings.
Practical implications
This study helps the investors to consider the firms with smaller market capitalization and lower book to market ratio and avoid the momentum strategy under firm specific factors. Moreover, earning aggressiveness under opacity domain capture the variation in stock return and must be considered while investing funds.
Originality/value
The influence of adoption of international accounting standards along with firm and economy specific variable in South Asian Equity Markets return was the major contribution. Moreover, the inclusion of DKSE and PCSE models to examine the relevance of the financial and economic informational environment was also considered as a part of major contribution of this study.
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Muhammad Akram Naseem, Enrico Battisti, Antonio Salvi and Muhammad Ishfaq Ahmad
This study examines the relationship between green intellectual capital (GIC) and competitive advantage (CA) and proposes the moderating role of corporate philanthropy types…
Abstract
Purpose
This study examines the relationship between green intellectual capital (GIC) and competitive advantage (CA) and proposes the moderating role of corporate philanthropy types (cash, in-kind and both) during the COVID-19 pandemic. In particular, this study investigates the types of corporate philanthropy, strengthening the link between GIC and CA for Chinese listed firms during a pandemic.
Design/methodology/approach
Cross-sectional data were collected from 248 chief executive officers (CEOs) of Chinese firms listed on the Shanghai Stock Exchange through a structured questionnaire. Regression analysis was employed to test the proposed hypotheses.
Findings
The findings reveal that all types of GIC positively influence a firm's CA. Furthermore, all three types of philanthropy – cash, in-kind and both – moderate the relationship between GIC and CA. However, the intensity of moderation was higher in the case of in-kind philanthropy than in the other two types.
Originality/value
To the best of the authors' knowledge, this is the first empirical study to examine the relationship between GIC (considering its three components: human, structural and relational capital) and CA in China. The study finds different types of philanthropy as moderating variables to better explain the relationship between GIC and CA. Further, it contributes to a new line of research that aims to study philanthropic aspects connected to the GIC debate.
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Muhammad Ishfaq Ahmad, Muhammad Akram Naseem and Ramiz Ur Rehman
This study aims to investigate the role of dynamic capabilities (DCs) in the financial performance of the small and medium enterprises (SMEs) during COVID-19. Furthermore, it took…
Abstract
Purpose
This study aims to investigate the role of dynamic capabilities (DCs) in the financial performance of the small and medium enterprises (SMEs) during COVID-19. Furthermore, it took chief executive officer gender to moderate the relationship between DCs and financial performance.
Design/methodology/approach
This study used the survey approach to collect the data. Regression analysis was used on 563 responses to test the proposed hypotheses.
Findings
The results showed that DCs have a significant positive effect on the SME’s operating level and revenues. Moreover, it also moderates the DCs and financial performance during COVID-19. The results revealed that firms that used the DCs during COVID-19 not only survive during the COVID-19 tough time but also enjoyed a decent revenue level.
Originality/value
To the best of the authors’ knowledge, this study is the first study to establish the link between DCs and SMEs operating and revenue level during the COVID-19 pandemic in Pakistani settings.
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Syed Mehmood Raza Shah, Yan Lu, Qiang Fu, Muhammad Ishfaq and Ghulam Abbas
Shadow banking has been evolving rapidly in China, with banks actively using wealth management products (WMPs) to evade regulatory restrictions. These products are the largest…
Abstract
Purpose
Shadow banking has been evolving rapidly in China, with banks actively using wealth management products (WMPs) to evade regulatory restrictions. These products are the largest constituent of China's shadow banking sector. A large number of these products are off-balance-sheet and considered a substitute for bank deposits. China's banking sector, especially the small and medium-sized banks (SMBs), uses these products to avoid regulatory restrictions and sustainability risk in the deposit market.
Design/methodology/approach
This study empirically examined how banks in China, specifically SMBs, utilize these products on a short and long-run basis to manage and control their deposit levels. This study utilized a quarterly panel dataset from 2010 to 2019 for the top 30 Chinese banks, by first implementing a Panel ARDL-PMG model. For cross-sectional dependence, this study further executed a cross-sectional augmented autoregressive distributive lag model (CS-ARDL).
Findings
Under regulations avoidance theory, the findings revealed that WMPs and deposits have a stable long-run substitute relationship. Furthermore, the WMP–Deposit substitute relationship was only significant and consistent for SMBs, but not for large four banks. The findings further revealed that the WMP–Deposit substitute relationship existed, even after the removal of the deposit rate limit imposed by the People's Bank of China (PBOC) to control the deposit rates.
Research limitations/implications
The individual bank-issued WMPs' amount data is not available in any database. Therefore, this study utilized the number of WMPs as a proxy for China's banking sector's exposure to the wealth management business.
Practical implications
This research helps policymakers to understand the Deposit–WMP relationship from the off-balance-sheet perspective. During the various stages of interest rate liberalization, banks were given more control to establish their deposit and loan interest rates. However, the deposit rates are still way below the WMP returns, making WMPs more competitive. This research suggests that policymakers should formulate a more balanced strategy regarding deposit rates and WMPs returns.
Originality/value
This study contributes to the existing literature on China's shadow banking by concentrating on the WMPs. This research represents one of the few studies that analyze regulatory arbitrage in terms of the WMP–Deposit relationship. Moreover, the implementation of CS-ARDL panel data models and multiple data sources makes this study's findings more reliable and significant.
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Muhammad Akram Naseem, Jun Lin, Ramiz ur Rehman, Muhammad Ishfaq Ahmad and Rizwan Ali
The purpose of this paper is to empirically capture the impact of a chief executive officer’s (CEO) personal and organizational characteristics on firm performance in the context…
Abstract
Purpose
The purpose of this paper is to empirically capture the impact of a chief executive officer’s (CEO) personal and organizational characteristics on firm performance in the context of a developing country and to explore whether capital structure mediates the relationship between CEO characteristics and firm performance.
Design/methodology/approach
In order to test the hypothesized model, CEO duality, tenure and personal characteristics (age, gender and education) were taken as explanatory variables to study their impact on firm performance. Data were collected from 179 Pakistani companies from 2009–2015. The collected data were processed via panel data regression analysis under fixed effect assumptions.
Findings
Results show that CEO duality has a negative impact on firm performance and that a CEO with a dual role is more inclined toward debt financing. Moreover, a CEO with a longer tenure tends to be opportunistic and prioritize his/her personal interest while making strategic financial decisions, thus creating agency costs for the firm. Furthermore, CEO characteristics like age, gender and education have significant effects on firm financial decisions and firm performance. Finally, the debt and equity ratio partially mediates the link between CEO characteristics and firm performance.
Research limitations/implications
The findings of this study have limited generalizability due to the specific nature of the sample characteristics.
Originality/value
To the best of the authors knowledge, this study is the first to explore the impact of CEO characteristics on capital structure and firm performance. This work is also the first to explore the mediating role of capital structure in the relationship between CEO characteristics and firm performance by using Pakistani data.
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Ramiz Ur Rehman, Muhammad Ishfaq Ahmad, Jaroslav Belas, Enrico Battisti and Gabriele Santoro
The study aims to examine the role of green learning orientation, green knowledge acquisition and green knowledge management in fostering corporate environmental performance of…
Abstract
Purpose
The study aims to examine the role of green learning orientation, green knowledge acquisition and green knowledge management in fostering corporate environmental performance of small and medium-sized enterprises (SMEs) in China. In addition, this research assesses the moderating role of chief executive officer (CEO) gender between green knowledge management and corporate environmental performance. Finally, this study examines the sequential mediating role of green knowledge acquisition and green knowledge management.
Design/methodology/approach
The study collected the data of 300 SMEs’ CEOs taken from five different provinces in China. The study used a partial least squares regression-based structural equation modelling technique.
Findings
The findings revealed that green learning orientation plays an important role in increasing SMEs’ corporate environmental performance. The results showed that green knowledge acquisition and green knowledge management serially and completely mediate the relationship between green learning orientation and corporate environmental performance.
Originality/value
To the best of the authors’ knowledge, this is the first study addressing the sequence of knowledge orientation, acquisition, management and results in terms of corporate environmental performance. Meanwhile, this study is the first to examine the indirect role of CEO gender on the relationship between green knowledge management and corporate environmental performance. As decisions are taken by the top management and CEO, especially in the case of SMEs, the role of top management and how well top management uses the knowledge acquired by the organization matters significantly.
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Muhammad Ishfaq Ahmad, Martin Cepel, Enrico Battisti and Ramiz Ur Rehman
This study aims to investigate the perspective of corporate philanthropy during the coronavirus disease 2019 (COVID-19) in China for firms with various levels of corporate social…
Abstract
Purpose
This study aims to investigate the perspective of corporate philanthropy during the coronavirus disease 2019 (COVID-19) in China for firms with various levels of corporate social responsibility (CSR). Specifically, the study appraises the impact of the COVID-19 pandemic on the stock returns and sustainable development of Chinese-listed companies and determines the likelihood of paying donations vis-à-vis firm reputation.
Design/methodology/approach
The study used data from 117 Chinese-listed firms engaged in philanthropy during the COVID-19 pandemic. The authors also utilized the stock returns and cash donation data, and owing to the cross-sectional data and continuous nature of dependent variables, they employed the ordinary least squares regression to test the research hypotheses.
Findings
The results show that irresponsible actions have a positive relationship with donations. The study particularly reveals that irresponsible firms have significant negative abnormal returns during the first wave of the COVID-19 pandemic.
Originality/value
To the best of our knowledge, this is the first empirical study to explore the perspective of corporate philanthropy during the COVID-19 pandemic for companies with different CSR levels. This study contributes to the empirical research on CSR and provides insights for managerial-cum-financial decisions to encourage managers of irresponsible firms to pursue philanthropic behaviors after crisis events.
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Mushtaq Ahmed and Muhammad Ishfaq Khan
This study aims to investigate the impact of ethical leadership on employees’ pro-social rule-breaking behavior, focusing on the mechanisms of psychological empowerment and the…
Abstract
Purpose
This study aims to investigate the impact of ethical leadership on employees’ pro-social rule-breaking behavior, focusing on the mechanisms of psychological empowerment and the moderating influence of ethical climate within the organization.
Design/methodology/approach
Conducting a survey across three waves, the research involves 515 nursing staff in various Pakistani hospitals. Partial least squares structural equation modeling is used for data analysis.
Findings
Contrary to expectations, this study uncovers a positive association between ethical leadership and employees’ pro-social rule-breaking behavior. The relationship is mediated by psychological empowerment, and ethical climate is found to moderate this association.
Research limitations/implications
While challenging traditional assumptions, this study acknowledges limitations related to sector focus and employee perspectives. Future studies are encouraged to explore multiple sectors and incorporate management perceptions for wider generalizability.
Practical implications
The results highlight the need for organizations to consider the unintended consequences of ethical leadership. Managers are advised to be mindful of employees’ psychological dynamics and the organizational environment to navigate the complex interplay between ethical leadership and pro-social rule-breaking.
Social implications
Understanding the paradoxical influence of ethical leadership extends beyond organizations to broader societal implications. The research encourages organizations to adopt strategies aligning ethical leadership with desired employee behaviors.
Originality/value
This study challenges established perceptions of ethical leadership, prompting a reevaluation of its universally perceived positive nature. It emphasizes the paradoxical influence of ethical leadership on organizational dynamics. The mediating role of psychological empowerment and the moderating effect of ethical climate contribute to the understanding of the relationship between ethical leadership and employees’ pro-social rule-breaking.
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Erasmia Leonidou, Enrico Battisti, Muhammad Ishfaq Ahmad and Raffaele Campo
The purpose of this study is to identify the financial and non-financial factors contributing to the success of hybrid offerings among Pakistani multinational enterprises (MNEs).
Abstract
Purpose
The purpose of this study is to identify the financial and non-financial factors contributing to the success of hybrid offerings among Pakistani multinational enterprises (MNEs).
Design/methodology/approach
To capture the complexity and interdependence of success factors, this study employed fuzzy-set qualitative comparative analysis (fsQCA). Data were collected from 213 chief executive officers (CEOs) of Pakistani MNEs.
Findings
The findings indicate that organizational support for service plays a vital role in hybrid offerings. Specific paths, such as a service-oriented corporate culture and management commitment to service, are necessary conditions for successful hybrid offerings.
Originality/value
The study sheds new light on the causal relationship underlying hybrid offerings in Pakistan, one of the Next Eleven countries, which is among the fastest-developing economies. We identified various paths to the financial and non-financial success of hybrid offerings within the Pakistani manufacturing MNE sector, which, to the best of our knowledge, has been underexplored. Additionally, we considered the digitalization dimension, which integrates and strengthens previous configurational models.