S.M. Khalid Nainar and Mohamed Shehata
The dominant theory of individual decision making under uncertainty is the von Neumann and Morgenstern's expected utility model (EUM). Although, this model has gained its…
Abstract
The dominant theory of individual decision making under uncertainty is the von Neumann and Morgenstern's expected utility model (EUM). Although, this model has gained its popularity from its ability to explain a wide range of attitudes toward risk, empirical evidence over the last three decades has documented paradoxical behavior that is inconsistent with the EUM model. The present study examines in an experimental setting individuals' inconsistent behavior in choosing between two pairs of lotteries known as the Allais paradox. This study extends previous literature on money gamble situations by conducting a series of experiments to test expected utility behavior on auditing student subjects in pure money and audit settings. Two variants of audit settings are examined: overall audit plan case and audit procedure evaluation of internal control case.
John J. Siam and S.M. Khalid Nainar
The purpose of this paper is to document stylized features and market behaviour of the Canadian Bankers' Acceptance Futures (BAX) contract; and outlook for the BAX contract as the…
Abstract
Purpose
The purpose of this paper is to document stylized features and market behaviour of the Canadian Bankers' Acceptance Futures (BAX) contract; and outlook for the BAX contract as the dominant instrument to manage Canadian short‐term interest rate exposure.
Design/methodology/approach
The paper adopts GARCH methodology to model the time‐varying nature of the volatility of prices in the context of hedging and presents a time‐varying estimation of the hedge ratios between the BAX contract and major Canadian money market instruments.
Findings
The key finding is that the growth of the BAX Market hinges on the further development of the Canadian money market and its appeal to the international investor.
Originality/value
The paper demonstrates the suitability of the BAX contract as a tool in managing Canadian short‐term interest rate exposure for both domestic and international investors.
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Wei-Tsong Wang, Yi-Shun Wang and Wan-Ting Chang
The purpose of this paper is to investigate how different forms of interpersonal conflicts and employees’ psychological empowerment may affect knowledge sharing intentions…
Abstract
Purpose
The purpose of this paper is to investigate how different forms of interpersonal conflicts and employees’ psychological empowerment may affect knowledge sharing intentions directly or indirectly via interpersonal trust in the workplace.
Design/methodology/approach
Survey data collected from 249 employees of 37 of the top 500 corporations in the manufacturing industry in Taiwan were used for the data analysis. The research model was analyzed using the component-based structural equation modeling technique, namely, the partial least squares (PLS) approach.
Findings
The results indicate that both relationship and task conflicts have significant indirect effects on employees’ knowledge sharing intentions via psychological empowerment and trust. Additionally, psychological empowerment significantly influences employees’ knowledge sharing intentions both directly and indirectly via trust.
Research limitations/implications
The primary theoretical implication is an advancement in the understanding of the critical antecedents of and their different effects on employees’ knowledge sharing intentions from the perspectives of conflict management and individual psychological empowerment. Future research may concentrate on investigating the bidirectional interactions among trust, relationship conflicts and task conflicts in different knowledge-sharing contexts.
Practical implications
This study provides practical insights into conflict resolution intended to facilitate psychological empowerment and interpersonal trust that encourage knowledge sharing in the workplace.
Originality/value
To the best of the authors’ knowledge, this study is the first knowledge sharing study that empirically examines how task and relationship conflicts affect employees’ knowledge sharing intentions differently via the mediation of their perceived psychological empowerment and interpersonal trust in one another in the workplace.
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Pantri Heriyati, Krisna Nugraha, Neeraj Yadav and Aryo Bismo
Use of digital Islamic banking services is not increasing in Indonesia, despite the country’s sizable Islamic population. This non-adoption might have resulted from consumer…
Abstract
Purpose
Use of digital Islamic banking services is not increasing in Indonesia, despite the country’s sizable Islamic population. This non-adoption might have resulted from consumer resistance brought on by attempts to divert them, or it might have been a direct consequence of the diverting effect. This study aims to examine the direct relationship between the diverting effects and the decision to not adopt digital Islamic banking, as well as the mediating role of consumer resistance.
Design/methodology/approach
The partial least squares-based structural equation modelling (PLS-SEM) technique is used to analyse relationships among diverting effects, consumer resistance and non-adoption decisions. A total of 517 middle- and upper-class Indonesian consumers were involved as a sample, with several criteria such as being a conventional bank customer for at least 5 years and using digital services with a minimum of 5 transactions per month but not yet being an Islamic bank customer.
Findings
It is found that the direct relationship between the diverting effects and the non-adoption decisions is not statistically significant (β = 0.045, p = 0.15). However, it is found that the diverting effects trigger consumer resistance in a statistically significant manner (β = 0.192, p < 0.1). This consumer resistance is found to be influencing non-adoption decisions directly (β = 0.694, p < 0.1), as well as a mediating factor between diverting effects and the non-adoption decisions (β = 0.133, p < 0.1).
Originality/value
The paper deals with an emerging industry and offers actionable insights for its growth. In practice, this study suggests several possible strategies for the Islamic banking industry to grow under circumstances where digital banking is considered sine-qua-non of modern banking. Several related theories are also evaluated in this study.
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The purpose of this paper is to develop a synthesis for investor relations (IR) research on how to understand, conceptualize and build trust relationships between companies and…
Abstract
Purpose
The purpose of this paper is to develop a synthesis for investor relations (IR) research on how to understand, conceptualize and build trust relationships between companies and the financial community within the practice of IR. In doing so, a working definition of the role of trust for IR, a conceptual model as well as strategies on how to establish, maintain and foster trust relationships within IR are proposed. Furthermore, a brief research alley is sketched to inspire more corporate communication scholars to conduct empirical studies in this field of research.
Design/methodology/approach
The paper is based on a thorough literature review on empirical and theoretical work in the field of IR, strategic financial communication as well as related disciplines such as public relations, marketing and business research. Furthermore, the literature from other disciplines dealing with trust in the organizational context (economics, psychology, sociology) has been reviewed to develop a working definition for the role of trust in IR.
Findings
The following supposition for the role of trust in IR has been worked out: “Trust relationships within investor relations manifest themselves on a micro-, meso-, and macro-level and involve interactions with various individual actors, groups of people, organizations, institutions, and systems. Within these trust interactions, investor relations presents itself simultaneously three-fold: as a discipline, an organization and as individual practitioners.”
Practical implications
To support the establishment, maintenance and fostering of trust relationships, IR needs to provide honest, transparent, comprehensive and coherent information to be in continuous, direct and mutual contact with stakeholders (e.g. investors, analysts, CEOs) and to endeavor a fair representation of the company in the media and among the public.
Originality/value
Facing recent changes in the media, regulatory and corporate environment, this conceptual paper provides a thorough discussion of the role of trust in the field of IR. The working definition, the conceptual model as well as the practical strategies to build trust relationships provided in this paper might help IR to overcome these challenges. The call for more research in this area and the actual employment of the suggested trust building strategies might contribute to fostering trust relationships in the financial markets, thereby contributing to a more sustainable financial system in the long run.
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Shahid Muhammad Khan Ghauri and Amal Sabah Obaid Qambar
The purpose of this paper is to analyze the performance of conventional and Islamic paradigms of banking through profitability. Profitability of conventional and Islamic banks is…
Abstract
Purpose
The purpose of this paper is to analyze the performance of conventional and Islamic paradigms of banking through profitability. Profitability of conventional and Islamic banks is compared through four authentic methods of ratio through reliable statistical data from seven countries. The healthier bank spread in the Islamic way of banking is analyzed and compared with the conventional trend of banking.
Design/methodology/approach
Profitability of two‐streams of banking are analyzed through bank spread, bank margin to total assets, non‐interest‐based costs to total assets and relationship of bank‐spread and NPBT&Z of conventional and Islamic banks. Data from 87 banks belonged to seven countries were analyzed to obtain results, of which 35 were following Islamic principles‐based products and services. Countries are selected among those which are following binary‐banking systems simultaneously. Statistical data are gathered from audited‐annual reports of these sample banks.
Findings
Islamic banks are found to reflect marginal bank spread but bear higher operational (non‐bank margin) costs.
Research limitations/implications
Statistical data are gathered from audited annual accounts of banking companies. Foreign banks are excluded in this analysis due to non‐availability of published accounts for most of such banks at country level. Further NPLs of sample banks were not available in most of sample banks, which could provide actual statistical figures for earning assets of bank.
Originality/value
The paper will be helpful in analyzing the business approach of the global, growing trend of Islamic banking.