Muhammad Ahsan Syed and Safdar Ali Butt
The purpose of this research study is to lower the knowledge gap by exploring the degree of corporate social responsibility disclosures (CSRD) made by top Pakistani (Karachi Stock…
Abstract
Purpose
The purpose of this research study is to lower the knowledge gap by exploring the degree of corporate social responsibility disclosures (CSRD) made by top Pakistani (Karachi Stock Exchange [KSE] 100 listed non-financial) companies and investigating the financial and non-financial CSRD determinants which aid to the policy development in implementing required regulatory reforms.
Design/methodology/approach
KSE 100 index listed companies are covered in this study that published their annual reports consistently during the time period of five years from 2009 to 2013. Financial and non-financial data will be collected from the sample of KSE-listed company’s annual reports. Information related to corporate social responsibility (CSR) will be collected by hand from reports of disclosure of CSR, disclosures of corporate governance, report of the directors, a statement of Chairman’s and notes to the financial statement enclosed in companies’ annual reports. Content analysis technique to measure corporate environmental and social disclosures for items scoring the approach is, in essence, dichotomous, one score assigned to the item in the scores of instrument of research if it disclosed, otherwise assigned zero, and no penalty or negative score is imposed to the item which is reflected irrelevant.
Findings
Family ownership, industry type and firm size have positive significant relationship with CSR disclosure, and the authors found negative significant relationship between risk and CSRD. Results of this study propose that, in developing countries like Pakistan, the extent of determinant of CSRD is based on the number of important firm and industry characteristics and are aligned with empirical evidence.
Research limitations/implications
This research uses only annual reports of the companies for the data of CSRD but companies also use other sources for disclosure of their CSR information such as mass media, etc. Content analysis is performed by one author and the second author cross-checked the companies, so biasness may remain a limitation due to the fact that errors attach in rating scale due to judgments of human.
Practical implications
The finding of this study helps policymakers to quantify and know the degree of CSRD and its determinants which enables them to boost the organizational legitimacy and CSR practices by adopting the needed regulatory reform.
Social implications
The results of this study provide warning signals to the management of the companies in some cases where disclosure level of CSR is lower in the period before issuance of SECP CSR guidelines of 2013.
Originality/value
This research study offers valuable inputs in the development and betterment of CSR rules for the reason that the findings of the research provide information to the future CSR rules and guidelines. The results of this study also help the regulator (SECP) in Pakistan to revise the CSRD to align with the need of changing industrial characteristics and economic environment.
Details
Keywords
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
Sattar Khan, Naimat Ullah Khan and Yasir Kamal
This paper aims to examine the role of corporate governance (CG) in the earnings management (EM) of affiliated companies in family business groups (FBGs) listed on the Pakistan…
Abstract
Purpose
This paper aims to examine the role of corporate governance (CG) in the earnings management (EM) of affiliated companies in family business groups (FBGs) listed on the Pakistan Stock Exchange (PSX), using principal–principal agency theory.
Design/methodology/approach
The sample of 327 nonfinancial firms of the PSX, consisting of 187 group-affiliated firms and 140 nonaffiliated firms has been used in this study for the period of 2010 to 2019. The study uses different regression models for analysis, with robustness tests of various alternative measures of EM and FBG affiliation. In addition, endogeneity is controlled with the propensity score matching method.
Findings
The findings show that EM is less prevalent in affiliated firms compared to nonaffiliated companies. The results show a negative and significant relationship between FBGs affiliated firms and EM. Moreover, the results also show a positive relationship between EM and the interaction term of the CG index and group affiliation. It refers to the fact that effective governance cannot reduce EM in affiliated companies of FBGs as well as in the nonfinancial companies of the PSX. In addition, the quality of CG is higher in affiliated companies compared to its counterpart in nonaffiliated firms. The findings support the principal–principal agency theory that CG cannot mitigate the expropriating behavior of controlling shareholders against minority shareholders by reducing EM in emerging markets due to the ownership concentration phenomenon.
Research limitations/implications
This research study has implications for small investors, government agencies and regulators. The findings of the study show that CG code should make it mandatory for companies to reveal information about their complex ownership structure and ownership information about affiliated companies and directors. Furthermore, it is suggested to revisit the code of CG in the Pakistani context of principal–principal conflict instead of the agent–principal explanation of agency theory based on Anglo–Saxon countries.
Originality/value
This research study has contributed to the CG and FBG literature in relation to EM in idiosyncratic settings of Pakistan. One of the prime contributions of the paper is the development of a comprehensive CG index. This research study used detailed, manually collected novel data on affiliated firms of FBGs in Pakistan.
Details
Keywords
Muhammad Mohsin Butt, Susan Rose, Stephen Wilkins and Junaid Ul Haq
Multinational corporations (MNCs) that want to compete in markets worldwide should not underestimate the influences of religion on consumer demand. Almost one quarter of the…
Abstract
Purpose
Multinational corporations (MNCs) that want to compete in markets worldwide should not underestimate the influences of religion on consumer demand. Almost one quarter of the world’s population is Muslim so it is important for MNCs to get into the Muslim mind set when operating in countries where Islam has a large influence. The purpose of this paper is to assess the extent to which consumer-based brand equity in a religious market results from the psychological and behavioural characteristics of consumers rather than from product characteristics.
Design/methodology/approach
A quantitative survey method was adopted, using a total sample of 551 Muslim consumers in Malaysia and Pakistan. A holistic model conceptualising three potential psychological and behavioural predictors of consumer-based halal brand equity (CBHBE) was created and then tested using structural equation modelling.
Findings
The strength of an individual’s religious identity was found to be a strong predictor of consumer halal choice behaviour and perceived self-expressive religious benefits. Consumers’ halal choice behaviour and perceived self-expressive benefits directly predict CBHBE. Moreover, consumer halal choice behaviour partially mediates the relationship between self-expressive benefits and CBHBE.
Practical implications
The authors conclude that firms targeting Muslim consumers can maximise CBHBE by focussing their marketing strategies on the three psychological and behavioural constructs identified in the model. For example, by using halal certification logos and providing convincing information about the halalness of their brand, businesses can facilitate Muslim consumers’ search processes in relation to their choice behaviour.
Originality/value
The study contributes to the existing international branding literature in two main ways. First, it introduces and defines the concept of CBHBE. Second, it identifies and empirically validates the important psychological and behavioural predictors of CBHBE.
Details
Keywords
Asma AbdulRahim Chang, Muhammad Shujaat Mubarik and Navaz Naghavi
By taking the theory of entrepreneurial legacy as the baseline, this study explores the various aspects of succession planning in indigenous family businesses especially the role…
Abstract
Purpose
By taking the theory of entrepreneurial legacy as the baseline, this study explores the various aspects of succession planning in indigenous family businesses especially the role of female family members in succession and conflicts in family businesses.
Design/methodology/approach
The study is qualitative in nature and adopts narrative inquiry to explore the aspects of succession planning. In doing so, the study utilizes an in-depth interviewing technique with nine participants who run their family-owned firms which are mostly in their second or third generation for analysis.
Findings
The findings are concurrent with the literature that indicates a lack of strategic succession planning although ordinary or natural succession does occur in some firms. The study also reports a lack of consideration for female members in succession, daughters in particular, for traditional family firms (FFs) in contrast to entrepreneurial FFs.
Research limitations/implications
The study has many implications for family-owned firms in Pakistan as they need to align their family business with the theory of entrepreneurial legacy and its three strategic activities in order to ensure the longevity of their business.
Originality/value
Exploring how succession planning takes place in family indigenous family businesses and what is the role of female family members in succession and conflicts in family businesses are original contributions of this study.
Details
Keywords
Sri Herianingrum, Muhammad Alan Nur, Sulistya Rusgianto, Meri Indri Hapsari, Ergun Huseyin, Firmansyah Firmansyah and Annisa Rahma Febriyanti
This study aims to unveil the variables that drive Indonesia’s seafood exports to organization of Islamic cooperation (OIC) countries, including a deeper analysis to understand…
Abstract
Purpose
This study aims to unveil the variables that drive Indonesia’s seafood exports to organization of Islamic cooperation (OIC) countries, including a deeper analysis to understand the factors that affect Indonesia’s potential for halal seafood exports, and attempts to validate Linder’s hypothesis, which might occur as part of the determinants of Indonesia’s seafood exports, as well as one of the variables that can affect Indonesia’s potency of halal seafood exports based on economic scale similarities and relative factor endowments.
Design/methodology/approach
Using Poisson regression by pseudo maximum likelihood, this study applies the theory of trade gravity and Linder’s hypothesis of Indonesia’s seafood exports to OIC countries and its halal market potency over the 30 years observation period from 1992 to 2021, with 47 countries importing Indonesia’s seafood products during the observation period based on United Nations Comtrade statistics.
Findings
The variables that drive Indonesia’s seafood exports are the situation of the economy between Indonesia and its trading partners, the population of importing countries and the common understanding of language. On the other hand, the adjusted-Muslim GDP of importing countries, the adjusted-Muslim GDP of Indonesia and the number of Muslim inhabitants of importer countries are the factors that affect Indonesia’s potential for halal seafood exports. The study also validates the presence of Linder’s hypothesis in Indonesia’s seafood export and could hint Indonesia’s potential for halal seafood exports
Research limitations/implications
Owing to the absence of an Harmonized System code that explicitly accommodates trade in halal commodities, especially in halal seafood exports, it will be more accurate if data are available in the future as material for further studies. Future studies may also consider per capita consumption of seafood, food safety standards and the level of food security from OIC countries as variables that might also influence Indonesia’s seafood exports in an approach analysis using the gravity theory of trade.
Practical implications
This study is part of the authors’ efforts to encourage a greater contribution of the fisheries sector to Indonesia’s GDP by identifying the factors that drive seafood exports, which have so far only been around 2%–3% and have never reached more than 4% in the past two decades. While Indonesia is blessed with extraordinary marine biodiversity and hopes of being the leader of the halal food industry, the fisheries sector is expected to contribute.
Originality/value
Unlike previous studies that used the approach of the gravity model of trade on food exports, this study is specifically in the field of seafood exports, takes Indonesia as the main object of research and also examines Linder’s hypothesis as part of the analysis to identify what drives Indonesia’s seafood exports in the OIC countries market and fill the scant of studies highlighting the factors that could drive halal food exports, specifically in seafood.
Details
Keywords
Safdar Khan, Sujood Sujood, Asad Rehman and Ramzi Al Rousan
The aim of this paper is to explore how information shared by SMIs affects consumers' food tasting intentions. To achieve this, it integrates the IAM and TAM, in conjunction with…
Abstract
Purpose
The aim of this paper is to explore how information shared by SMIs affects consumers' food tasting intentions. To achieve this, it integrates the IAM and TAM, in conjunction with trust and EWOM.
Design/methodology/approach
This paper utilized a convenience sampling technique, employing a survey instrument to gather data online. The questionnaire was distributed across the social media pages of food bloggers from September 11 to November 30, 2023. The collected data was analyzed using SPSS and AMOS.
Findings
We developed a research framework that integrates IAM, TAM, Trust, and EWOM variables to assess how information shared by SMIs influence consumers' intentions to explore new food tastes. The model demonstrated enhanced predictive and explanatory capabilities.
Research limitations/implications
This study enriches the existing literature on information adoption and technology acceptance by advancing our understanding of how SMIs influence consumers’ food tasting intentions. Additionally, it aids SMIs in comprehending their role in endorsing new food products and restaurants, fostering trust and reliability among their followers. This study enables consumers to make more informed decisions about trying new food products or dining establishments, empowering them to evaluate influencer recommendations critically.
Originality/value
This study uniquely focuses on the influence of information shared by SMIs on consumers' intentions to taste new foods. While SMIs have been extensively studied in various contexts, such as fashion, beauty, and travel, this research offers a fresh perspective on understanding their impact on consumer behavior within the food industry.
Details
Keywords
Komalpreet Kaur, Rajan Sharma and Sukhwant Singh
The purpose of this review is to address the consumer’s preferences that have varied greatly in the past decade appraising the use of flavor and aroma compounds in the development…
Abstract
Purpose
The purpose of this review is to address the consumer’s preferences that have varied greatly in the past decade appraising the use of flavor and aroma compounds in the development of functional foods rather than consuming artificial additives. A growing interest in natural flavoring agents and preservatives have made the researchers to explore the other bio-functional properties of natural flavors beyond their ability to give a remarkable flavor to the food.
Design/methodology/approach
In this review, five major flavoring agents used significantly in food industries have been discussed for their bioactive profile and promising health benefits. Vanilla, coffee, cardamom, saffron and cinnamon, despite being appreciated as natural flavors, have got impressive health benefits due to functional ingredients, which are being used for the development of nutraceuticals.
Findings
Flavoring and coloring compounds of these products have shown positive results in the prevention of several diseases including carcinoma and neurological diseases such as Alzheimer’s and Parkinson’s. Such effects are attributed to the presence of phenolic compounds, which possesses free radical scavenging, anti-inflammatory antiviral and antimicrobial properties. These properties not only show a preventive mechanism against diseases but also makes the food product shelf-stable by imparting antimicrobial effects.
Originality/value
This paper highlights the opportunities to increase the use of such natural flavoring agents over synthetic aroma compounds to develop novel functional foods. Phenols, carotenoids and flavonoids are the major health-promoting components of these highly valued aroma ingredients.
Details
Keywords
Matthew Kalubanga and Winfred Mbekeka
This study examines how compliance with government and firm's own policy and reverse logistics practices relate with firm environmental performance.
Abstract
Purpose
This study examines how compliance with government and firm's own policy and reverse logistics practices relate with firm environmental performance.
Design/methodology/approach
This study draws on insights from stakeholder theory, and follows a two-phase research approach. The first phase utilized an extended literature review that seeks to provide a qualitative and comprehensive understanding of the research problem. The 2001–2023 data was collected from the Web of Science and Scopus databases, complemented with Google Scholar. The second phase involved an empirical study—adopting a quantitative cross-sectional survey design with a self-administered questionnaire to validate the theoretical conceptualizations deriving from the literature review. The empirical data were collected from 203 food and beverages manufacturing firms in Uganda and analysed using the partial least squares structural equation modelling (PLS-SEM) approach.
Findings
The study findings suggest that compliance with government policy positively influences firm environmental performance, both directly, and indirectly through fostering reverse logistics practices, and that the relationship between compliance with government policy and reverse logistics practices is contingent upon compliance with the focal firm's own policy.
Research limitations/implications
The study findings will enhance the theoretical and conceptual development of the ideas that underpin stakeholder theory and applications. The Ugandan government will come up with better mechanisms for enforcing compliance with policy regulating the application of reverse logistics practices. In addition, the study advances the use of multi-method approaches in investigating interesting research aspects requiring in-depth examination. However, considering the fact that the empirical study was conducted in a single country context, and focused on firms more or less from the same sub-sector, the findings of the study might not be generalizable globally.
Practical implications
This study provides useful insights to logistics and supply chain managers involved in reverse logistics activities in food and beverages manufacturing firms. These managers can know how to leverage reverse logistics practices to enhance environmental performance of firms amidst environmental policies in the industry where they operate.
Originality/value
This study contributes to the built body of knowledge in operations, logistics and supply chain management literature; understanding about reverse logistics practices as a mechanism through which compliance with government policy influences environmental performance of firms. The interaction between compliance with government policy and compliance with firm policy is essential in explaining the performance effects of reverse logistics practices. In addition, the study advances the use of multi-method approaches in investigating interesting research aspects requiring in-depth examination. Complementing extended literature review with and empirical research to investigate reverse logistics practices influences on firm environmental performance, and incorporating the role of policy in explaining this relationship should make considerable contribution. Besides, the study highlights important areas for future research.
Details
Keywords
Nasib Dar, Saima Ahmad, Kamal Badar and Yasir Mansoor Kundi
This paper aims to probe the prevailing belief that engaging in innovative work behavior (IWB) will invariably lead to favorable outcomes. To do so, the paper integrates…
Abstract
Purpose
This paper aims to probe the prevailing belief that engaging in innovative work behavior (IWB) will invariably lead to favorable outcomes. To do so, the paper integrates followership theory and cognitive dissonance theory to investigate the connection between employees’ IWB and despotic leadership, and the mediating role of interpersonal conflict with the supervisor in this connection. Moreover, the moderating impact of the supervisor’s dispositional resistance to change trait on the direct and indirect relationship between IWB and despotic leadership is explored.
Design/methodology/approach
The data were collected through a multi-wave survey of 350 employees and 81 supervisors working in 81 public schools.
Findings
The findings show that IWB has a positive and significant relationship with despotic leadership, and this relationship is mediated by interpersonal conflict with the supervisor.
Originality/value
To the best of the authors’ knowledge, this is the first study that examines the link between IWB and despotic leadership via interpersonal/dyadic conflict and explores the moderating effect of leadership dispositional resistance to change trait in this indirect relationship.