R.M. Ammar Zahid, Muhammad Kaleem Khan and Muhammad Shafiq Kaleem
Executive decisions regarding capital financing are an important management aspect, especially during financing constraints and growth opportunities. The current study examines…
Abstract
Purpose
Executive decisions regarding capital financing are an important management aspect, especially during financing constraints and growth opportunities. The current study examines the impact of managerial skills of a company on capital financing decisions. Furthermore, it analyzed this nexus in financing constraints and growth opportunity situations.
Design/methodology/approach
The authors use the GMM (generalized method of moments) estimation approach on a dataset of 20,651 firm-year observations of Chinese A-share companies from 2010 to 2019.
Findings
The authors’ findings are compatible with management signaling and reputation enhancement theories, since they show that managerial skill is connected with more substantial debt financing. Managers with high management skills are likely to have more debt financing as they can foresee the economic future of their companies and tactfully convey private information, lowering information inequality and enhancing their reputation. Furthermore, the authors also show that firms with restricted financial resources and growth opportunities make this relationship stronger. Capital structure and managerial skill findings are unaffected by alternative specifications, omitted factors, industry group bias and endogeneity.
Originality/value
This study sheds fresh light on the essential manager personality trait of managing ability and how it influences complicated corporate decision-making, particularly in the tough environment due to financing constraints and competitive growth. The authors argue that high-ability managers are compelled to use debt financing not only to lessen information asymmetry but also to guarantee that the market finds their superior ability. This work contributes significantly to the managerial ability literature and the capital structure literature supporting signaling theory.
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Khuram Shahzad, Qingyu Zhang, Muhammad Kaleem Khan, Muhammad Ashfaq and Muhammad Hafeez
This study pinpoints the critical factors influencing the acceptance of blockchain technology in supply chain management in the light of the extended unified theory of acceptance…
Abstract
Purpose
This study pinpoints the critical factors influencing the acceptance of blockchain technology in supply chain management in the light of the extended unified theory of acceptance and use of technology (UTAUT2) with additional factors personal innovativeness in technology and user's self-efficacy.
Design/methodology/approach
The questionnaire-based data was obtained from SC professionals in China (Beijing). The essential factors influencing it are evaluated through structural equation modeling (SEM), using AMOS software.
Findings
The empirical findings specify that performance expectancy, facilitating conditions, price value, hedonic motivation, user self-efficacy, and personal innovativeness are positively influencing user satisfaction. User satisfaction has a substantial progressive effect on habit. Furthermore, facilitating conditions, price value, habit, user self-efficacy, personal innovativeness, and user satisfaction have a progressive impact on continued intention to use blockchain technology in supply chain management.
Originality/value
Although numerous studies investigated the influencing factors of blockchain technology adoption in supply chain management, no study examined the determinants of UTAUT2. However, this study not only empirically studied the UTAUT2 model but also extended it with the most influencing elements such as personal innovativeness in technology and user's self-efficacy. Furthermore, this study contributes to the BT-enabled SCM literature by studying the continued use and acceptance, rather than testing behavioral intention and initial adoption which is common in previous studies of BT-enabled SCM. Finally, this study discusses the limitations, future directions, and managerial implications of the results so that supply chain professionals can deliver what supply chain stakeholders require.
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Muhammad Usman, Muhammad Umar Farooq, Junrui Zhang, Muhammad Abdul Majid Makki and Muhammad Kaleem Khan
This paper aims to investigate the question concerning whether gender diversity in the boardroom matters to lenders or not?
Abstract
Purpose
This paper aims to investigate the question concerning whether gender diversity in the boardroom matters to lenders or not?
Design/methodology/approach
To answer this question, the authors use the data from 2009 to 2015 of all A-share listed companies on the Shanghai and Shenzhen stock exchanges. The authors use ordinary least squares regression and firm fixed effect regression to draw our inferences. To check and control the issue of endogeneity the authors use one-year lagged gender diversity regression, two-stage least squares regression, propensity score matching method and Heckman two-stage regression.
Findings
The results suggest that the presence of female directors on the board reduces managerial opportunistic behavior and information asymmetry and, consequently, creditors’ perceptions about the probability of loan default and the cost of debt. The authors find that lenders charge 4 per cent less from borrowers that have at least one female board member than they do from borrowers with no female board members. The authors also find that the board structure (i.e. gender diversity) of government-owned firms also matters to lenders, as government-owned firms that have gender-diverse boards have a lower cost of debt (i.e. 5 per cent lower interest rate).
Practical Implications
The findings have implications for individual borrowers and for regulators. For example, borrowers can get debt financing at lower rates by altering their boards’ composition (i.e. through gender diversity). From the regulatory perspective, the results support recent legislative initiatives around the world regarding female directors’ representation on boards.
Originality Value
This paper makes several contributions. First, beyond the recent studies on boardroom gender, the authors investigate the relationship between gender diversity in the boardroom and the cost of debt. Second, the authors extend the literature on the association between government ownership and cost of debt by first time providing evidence that the board composition (e.g. gender diversity) of government-owned firms also matters to the lenders. The other contributions are discussed in the introduction section.
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Shahid Ali, Junrui Zhang, Muhammad Usman, Muhammad Kaleem Khan, Farman Ullah Khan and Muhammad Abubakkar Siddique
This study aims to investigate the question concerning whether tournament incentives motivate chief executive officers (CEOs) to be socially responsible.
Abstract
Purpose
This study aims to investigate the question concerning whether tournament incentives motivate chief executive officers (CEOs) to be socially responsible.
Design/methodology/approach
Data from all A-share Chinese companies listed on the Shanghai and Shenzhen stock exchanges for the period from 2010 to 2015 are used. To draw inferences from the data, ordinary least squares (OLS) regression and cluster OLS are used as a baseline methodology. To control for the possible issue of endogeneity, firm-fixed-effects regression, two-stage least squares regression and propensity score matching are used.
Findings
A reliable evidence is found that tournament incentives motivate CEOs to be more socially responsible. Additional analysis reveals that the positive effect of CEO tournament incentives on corporate social responsibility performance (CSRP) is more pronounced in state-owned firms than it is in non-state-owned firms. The study’s findings are consistent with tournament theory and the conventional wisdom hypothesis, which proposes that better incentives lead to competitiveness, which improves financial and social performance.
Practical implications
The study’s findings have implications for companies and regulators who wish to enhance CSRP by giving tournament incentives to top managers. Investment in social responsibility may reduce the conflict between executives and employees and improve the corporate culture.
Originality/value
This study contributes to the existing literature by providing the first evidence that CEOs’ tournament incentives play a vital role in CSRP. The study’s findings contribute to tournament theory.
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Muhammad Zubair Alam, Ahmad Raza Bilal, Saba Sabir and Muhammad Ali Kaleem
The dynamic global environment has increased the requirement of multidisciplinary entrepreneurial engineers. While studying entrepreneurial aspects of engineers, researchers have…
Abstract
Purpose
The dynamic global environment has increased the requirement of multidisciplinary entrepreneurial engineers. While studying entrepreneurial aspects of engineers, researchers have not considered inherent variability due to engineering majors. This study investigates the impact of entrepreneurial motivation (EM) on entrepreneurial intentions (EIs), to analyse the inherent entrepreneurial potential of engineering majors. The impact of entrepreneurial education has also been studied to proffer recommendations for policymakers.
Design/methodology/approach
The design of this study is a survey conducted with 342 undergraduate students from three major engineering institutions in Pakistan using a close-structured questionnaire. Moderation analysis examines the entrepreneurial potential of different engineering majors. Analysis of variance (ANOVA) has been conducted to compare the EIs of different engineering majors and regarding the impact of entrepreneurial education on EIs.
Findings
The engineering major's role in the transformation of EM to EIs is multifaceted. EIs of students of a few engineering majors were found high. Entrepreneurship education improves the overall EIs of engineering students.
Practical implications
Outcomes of the study are useful for academia and policymakers to engage students of particular engineering majors, identified as entrepreneurial, in advanced entrepreneurial education and expose them to potential start-ups to have better value addition in specific sectors.
Originality/value
This is the first study in which engineering majors have been examined to bring insights about inherent entrepreneurial potential. This inherent entrepreneurial potential needs further exploration by academic researchers. The study has provided the base for future studies to institutionalize entrepreneurial education for different engineering majors.
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Yi Zhang, Muhammad Kaleem Zahir-ul-Hassan, Feng Wei and Jean Leslie
This paper explores the link between leadership derailment risk and competency ambidexterity in a digitalized global environment. It also investigates the impact of balanced…
Abstract
Purpose
This paper explores the link between leadership derailment risk and competency ambidexterity in a digitalized global environment. It also investigates the impact of balanced skills on leadership success in collectivist and assertive cultures.
Design/methodology/approach
A mixed methods approach is employed using survey data from 766 American and Japanese managers and eight interviews across four diverse cultures. It uncovers the intricate relationship between leadership derailment risk and competency ambidexterity.
Findings
Optimal competency ambidexterity lowers the risks of leadership incompetence (operationalized as derailment) but through distinct configurations of current and needed competencies, which both competencies should be congruent at high levels in uncertain environments. Furthermore, moderately high competency levels mitigate derailment risk in collaborative cultures (Japan and China), while very assertive cultures (USA and Netherlands) require high competencies to lower derailment danger and sustain leadership effectiveness.
Practical implications
Leaders must maintain competency ambidexterity, adapting to diverse contexts in our dynamic world. Recognizing cultural nuances is essential for enhancing managers’ skills in global talent management.
Originality/value
Cultural values shape competency configurations and managers should balance organizational and personal competencies for effective leadership. Qualitative insights complement quantitative data.
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Muhammad Nurul Houqe, Solomon Opare and Muhammad Kaleem Zahir-Ul-Hassan
The purpose of this study is to examine the association between carbon emissions and earnings management (EM). This study also considers the effect of female CEOs on the…
Abstract
Purpose
The purpose of this study is to examine the association between carbon emissions and earnings management (EM). This study also considers the effect of female CEOs on the association between carbon emissions and EM.
Design/methodology/approach
This study uses the carbon disclosure project (CDP) for carbon emissions data, the Compustat database for financial information and the ExecuComp database for female CEOs. The empirical sample of this study consists of 1,692 firm-year observations in the USA that voluntarily participated in the CDP survey from 2007 to 2015. Regression analysis and robustness tests are conducted for this study and both accrual and real EM are considered.
Findings
This study provides evidence that firms with female CEOs who voluntarily disclose their carbon emissions information engage in less real EM. Thus, the presence of female CEOs moderates the association between carbon emissions and EM. This study/paper also finds a positive association between carbon emissions and real EM, although there is an insignificant association between carbon emissions and accruals EM.
Practical implications
The association between carbon emissions and EM has important implications for investors, regulators and policymakers. This study suggests that policymakers should improve the conditions that promote inclusion of females in the top management positions to constrain EM.
Originality/value
This study focuses on the USA, which is one of the major contributors to carbon emissions in the world. The presence of female CEOs moderates the association between carbon emissions and EM and firms with female CEOs show a greater impact on EM.
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Muhammad Zubair Alam, Shazia Kousar, Aiza Shabbir and Muhammad Ali Kaleem
Intrapreneurship is rapidly concerning organizations to tailor their operations and strategies for competitive advantage. Research on intrapreneurial dimensions is in the…
Abstract
Purpose
Intrapreneurship is rapidly concerning organizations to tailor their operations and strategies for competitive advantage. Research on intrapreneurial dimensions is in the developing stage, requiring more rigorous methods of investigation and application in various contexts. This study aims to focus on individual level intrapreneurship by examining the association of personality traits (PTs) on intrapreneurial behaviour (IB) moderated by knowledge sharing behaviour (KSB) and comparison of employees in engineering and functional departments.
Design/methodology/approach
A survey has been conducted for data collection using a structured questionnaire. Partial least squares structural equation modelling has been used for hypotheses testing, moderation and multi-group analysis on a sample of 534 respondents.
Findings
Results reveal that PTs exerted a positive influence on IB. The impact of PTs on IB was more pronounced in the employees of functional departments. KSB moderates positively in the relationship between PTs and IB. Both groups significantly differ in dimensions of PTs.
Practical implications
Organizations can do little to improve PTs of employees, which impacts on intrapreneurship in organizations. However, KSB in organizations can be improved by adopting various measures. KSB eventually promotes innovation in organizations resulting in an overall competitive advantage for firms.
Originality/value
This is the first study that contributes theoretically in intrapreneurship literature by providing insights on PTs impacting IB incorporating KSB and comparing the diverse group of employees.
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R.M. Ammar Zahid, Muhammad Kaleem Khan and Volkan Demir
Current research aims to investigate the relationships between Chinese national cultural values (uncertainty avoidance (UA), power distance, masculinity (MAS), individualism (IDV…
Abstract
Purpose
Current research aims to investigate the relationships between Chinese national cultural values (uncertainty avoidance (UA), power distance, masculinity (MAS), individualism (IDV) and Confucian dynamism) and accounting practices (professionalism, uniformity, conservatism and secrecy).
Design/methodology/approach
A sample of 842 users/preparers of financial statements participated in this cross-sectional, questionnaire-based survey from China. Covariance-based structural equation modeling (CB-SEM) was used to test the proposed relationship.
Findings
Results show that cultural values strongly impact financial reporting practices in China. Chinese society is characterized by low UA, high power distance, collectivism, future orientation (Confucianism) and masculine traits. These values show an overall preference for uniformity, conservatism and secrecy in financial reporting with weak professionalism. The findings show that Chinese society emphasizes law abidance, strict codes of conduct, written rules and regulations and respect for consistent orthodox measures.
Practical implications
This study provides valuable input for policymakers in developing regulations and accounting standards in the Chinese market. Understanding the relationship between cultural dimensions and accounting values helps to address societal challenges and align policies with cultural values to acquire desired financial reporting values. Global firm managers must consider cultural dimensions in accounting when entering Chinese markets or negotiating with partners from different cultures. Findings also suggest local managers gain self-awareness of their cultural biases and accounting values, enabling them to navigate businesses and society's financial reporting needs.
Originality/value
This study enriches the existing literature on cultural and accounting practice studies by validating the role of stakeholder and social contract theories in Gray–Hofstede’s framework and highlighting the influence of dominant cultural values on accounting values. The study provides a unique empirical analysis of the Chinese market by using a questionnaire survey and structural equation modeling (SEM). Further, it also opens avenues for future research on the relationship between cultural dimensions, accounting practices and their global impact. These findings emphasize the importance of cultural sensitivity and adaptability, especially in multicultural environments.
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R.M. Ammar Zahid, Alina Taran, Muhammad Kaleem Khan and Can Simga-Mugan
This study investigates the influence of ownership composition on market-based and accounting-based financial performance in the European frontier markets (EFMs), a target region…
Abstract
Purpose
This study investigates the influence of ownership composition on market-based and accounting-based financial performance in the European frontier markets (EFMs), a target region for global investors.
Design/methodology/approach
Ownership composition is defined as shareholders' concentration and structure (i.e. foreign, domestic, state and free-float), whereas financial performance is measured as Tobin's Q and return on assets. The system generalised method of moments panel data estimation technique is employed on a sample of 241 companies.
Findings
Findings reveal that companies from European Union (EU) frontier markets are controlled, on average, by one to five large shareholders. Being a signal of expropriation rationale of majority shareholders regardless of the capital structure, this highly concentrated ownership and decision-making model negatively affects the market-based and accounting-based financial performance of the companies and thereby supports the agency theory in the frontier markets.
Research limitations/implications
The findings provide empirical evidence for authorities, investors, analysts and corporations regarding the effect of ownership percentage and structure in the Eastern European region, assisting also other frontier and emerging markets in corporate governance and other regulatory decisions.
Originality/value
The ownership–performance relationship varies from developed to emerging markets with conflicting results. This study provides evidence on monitoring and expropriation effects of majority shareholders in the context of different categories of shareholders. In doing so, it combines the analysis of both ownership concentration and structure in the EFMs.