Farman Ali, Man Wang, Khalil Jebran and Syed Tauseef Ali
The purpose of this paper is to explore how multiple facets of board diversity influence technical efficiency (TE) and total factor productivity (TFP).
Abstract
Purpose
The purpose of this paper is to explore how multiple facets of board diversity influence technical efficiency (TE) and total factor productivity (TFP).
Design/methodology/approach
The authors measure board diversity in two dimensions: relation-related dimension (age and gender) and task-related dimension (tenure, education and expertise). The authors use a balanced panel data of 806 nonfinancial Chinese firms over the period 2009–2017. The authors use a two-stage approach for analysis. In the first stage, the authors use a non-parametric frontier approach to calculate the TE and factor productivity scores. In the second stage, the authors regressed these scores on board diversity attributes (relation-related diversity and task-related diversity).
Findings
By using tobit regression and two-step system GMM, the authors find that board diversity improves TE and TFP. The authors’ analyses illustrate that a higher diversity on corporate board (in terms of age, gender, tenure, education and expertise) positively influence firm efficiency.
Practical implications
The findings have important implications for policymakers. The findings suggest that regulators should devise policies to encourage board diversity. Because a diverse board can bring knowledge, skills, abilities, expertise and experience of diverse group members, which will ultimately enhance a firm’s efficiency. Especially, in the emerging markets (such as China), there is still a need for standard governance mechanisms; therefore, the authors suggest that policymakers should develop regulations and promote diversity of directors as one of the factors for improving the governance mechanisms, which will ultimately improve firms productivity.
Originality/value
Prior studies mostly considered only one dimension (such as gender) of diversity and, therefore, have overlooked how other dimensions influence firms. The authors consider several dimensions of diversity and quantify them into relation-related (age and gender) and task-related (tenure, education and expertise) attributes and show how they influence firms’ efficiency. To the best of the authors’ knowledge, this is the first study to comprehensively investigate how several facets of diversity influence a firm’s TE and TFP.
Details
Keywords
Syed Tauseef Ali, Zhen Yang, Zahid Sarwar and Farman Ali
In view of organizational inertia, with the occurrence of a major event, though resource rigidity minimizes, however simultaneously, it increases process rigidity, which creates…
Abstract
Purpose
In view of organizational inertia, with the occurrence of a major event, though resource rigidity minimizes, however simultaneously, it increases process rigidity, which creates difficulties in motivating managers and dealing with the agency problem. Therefore, keeping in mind the high demand created by the China–Pakistan Economic Corridor and Naya Pakistan Housing Scheme in the cement sector of Pakistan, the purpose of this paper is to investigate the impact of corporate governance (CG) on the cost of equity (COE) in the cement sector, to deal with the problems surging during and after the completion of these projects and highlight further opportunities for the cement sector of Pakistan.
Design/methodology/approach
CG is a qualitative concept therefore, eight proxies have been used to measure it along with the two control variables. This study uses balance panel data of six years from 2012 to 2017, collected from 18 companies of the cement sector of Pakistan. Descriptive statistics have been used to describe the data, correlation matrix to see the nature of the relationship, and Pooled OLS as the estimation technique, while to analyze the data a statistical package 13 has been used. To measure the COE, the Capital Asset Pricing Model (CAPM) has been used.
Findings
Regression results suggest that block ownership, insider ownership and the board size are insignificant, while CEO tenure is negatively and significantly associated with the COE. Non-executive directors, independence and CEO duality are insignificant; however, diversity is positively and significantly associated with the COE. Moreover, the mean value of the COE is 8.22 percent for the cement sector, while the coefficient of determination of the model under study is 74 percent.
Research limitations/implications
This paper is based on the data from the cement sector of Pakistan only. Therefore, this is the reason that these results cannot be generalized on the whole economy of Pakistan.
Practical implications
This study helps in finding out the COE value specific to the cement sector, which will help this sector to evaluate the capital budgeting decision more precisely and accurately than before. Moreover, the association of diversity as positive, while independence as negative with the COE highlights a room for improvement in the implementation of CG codes by SECP. This study also helps to mitigate the impact of inertia, the after-effects of high demand, and managing the agency problem in the cement sector.
Originality/value
This is the first study using CG data collected just after the revised promulgation of CG codes in 2012, along with a wide range of eight proxies measuring CG and its impact on the COE in the cement sector.
Details
Keywords
Shulin Xu, Syed Tauseef Ali, Zhen Yang and Yunfeng Li
China's New Rural Pension Program (NRPP) has been implemented for a decade, but the factors that facilitate rural residents' participation have received little attention. This…
Abstract
Purpose
China's New Rural Pension Program (NRPP) has been implemented for a decade, but the factors that facilitate rural residents' participation have received little attention. This study aims to investigate whether financial literacy has an influence on rural residents' behavior of participation in the NRPP. In particular, this study further verifies if high financial literacy is important and whether financial education can enhance the impact of financial literacy on current, long-term and dynamic pension decisions of rural households.
Design/methodology/approach
This study investigates the impact of financial literacy on rural residents' participation in China's NRPP using the China Household Financial Survey (CHFS) Data of 2015 and 2017. This study constructs an analytical framework for current, long-term and dynamic impacts and comprehensively analyzes the value of financial literacy in the decision making of the NRPP. This study uses the instrumental variable method to solve the possible endogeneity problem. In addition, the authors also demonstrate the positive role of high financial literacy in household pension decisions. Further analysis reveals gender and regional heterogeneity in the impact of financial literacy on pension decisions. The moderating effect model explores whether financial education has a significant moderating effect on financial literacy and pension decision making of the NRPP.
Findings
Financial literacy can improve the participation behavior of households in rural areas (dynamic effect) and promote their current and long-term participation in the NRPP, choosing a higher pension contribution level in the NRPP. However, financial literacy has no significant effect on the change in the contribution amount of the NRPP. Further research finds that high financial literacy has comparative advantages in household pension decision making in rural areas. There are gender and regional differences in the impact of financial literacy on pension decisions. In addition, effective financial literacy education enhances the current, long-term and dynamic impacts of residents' financial literacy on NRPP participation and pension contributions.
Practical implications
This study comprehensively considers the impact of financial literacy on pension decision making behavior from three aspects: current, long-term and dynamic, making up for the dearth in the existing literature that only focuses on the impact of financial literacy on current financial behaviors and bridging the gap between the theoretical framework and experimental results. Our study proposes new policy implications: (1) Governments and financial institutions should pay attention to financial literacy and education levels in rural areas and carry out financial education and training programs to increase social welfare levels by increasing rural residents' participation and pension contribution. (2) The community can strengthen the policy advocacy of the NRPP and make people develop a stronger sense of trust toward it. The government can also subsidize individual accounts through financial support.
Originality/value
This study comprehensively considers the impact of financial literacy on pension decision-making behavior from three aspects: current, long-term and dynamic, making up for the dearth in the existing literature that only focuses on the impact of financial literacy on current financial behaviors and bridging the gap between the theoretical framework and experimental results. Our study proposes new policy implications: (1) Governments and financial institutions should pay attention to financial literacy and education levels in rural areas and carry out financial education and training programs to increase social welfare levels by increasing rural residents' participation and pension contribution. (2) The community can strengthen the policy advocacy of the NRPP and make people develop a stronger sense of trust toward it. The government can also subsidize individual accounts through financial support.
Details
Keywords
Tauseef Iqbal Khan, Syed Ali Raza and Mahesh Devji
The learning objectives of this case study are listed below: • What is corporate social responsibility (CSR)? • The role of CSR in creating opportunities to growth. • Distinguish…
Abstract
Learning outcomes
The learning objectives of this case study are listed below: • What is corporate social responsibility (CSR)? • The role of CSR in creating opportunities to growth. • Distinguish the ways in which social marketing evolved differently in urban and rural areas. • Obstacles in CSR • CSR beyond the competition.
Case overview/synopsis
The case of CSR by Reckitt Benckiser (RB) follows the marketing practices through purpose-led marketing through CSR. RB Pakistan Limited is a fast-moving consumer goods provider in Pakistan following a vision of the world where people are healthier and live well. The purpose is to make a difference by giving people innovative solutions for healthier lives and happier homes. This means they are expending their capabilities and investing in innovation to stay ahead of the game. RB is trying to achieve this vision by following the strategy of health and hygiene awareness in rural marketing through various types of communications, by introducing low price products to reduce diarrhea and open defecation. In urban areas, the young generation is the trend creators and they are much involved in awareness of state of the world. RB is committed in providing innovative solutions with the help of well-organized programs such as reaching new moms, educating them and providing awareness sessions in schools to students for handwashing practices. RB carries these activities with the help of non-government organizations and small support of Government of Pakistan.
Complexity academic level
This case is appropriate for MBA (Marketing) courses. The case explains the significance of CSR in capitalizing the growing trend and unleashing untapped areas and remaining competitive by providing innovative solutions. The case can be taught to the strategic marketing students.
Subject code
CSS 8: Marketing.
Supplementary materials
Teaching Notes are available for educators only.
Details
Keywords
Syed Zulfiqar Ali Zaidi, Syed Tauseef Mohyud-din and Bandar Bin-Mohsen
The purpose of this study is to conduct a comparative investigation for incompressible electrically conducting nanofluid fluid through wall jet. Single-walled carbon nanotubes…
Abstract
Purpose
The purpose of this study is to conduct a comparative investigation for incompressible electrically conducting nanofluid fluid through wall jet. Single-walled carbon nanotubes (SWCNTs) and multiple-walled carbon nanotubes (MWCNTs) are considered as the nanoparticles. To record the effect of Lorentz forces, a magnetic field is applied normally with the assumption that the induced magnetic field is negligible.
Design/methodology/approach
Boundary layer approximation is used to convert governing equations into ordinary differential equations along with appropriate boundary conditions. To obtain the results, used homotopy analysis method (HAM) has been used as an analytical technique and to validate the obtained results a famous numerical Runge–Kutta–Fehlberg method is also exploited. It has been observed that the results obtained through both of the methods are in excellent agreement with exact solution.
Findings
The Hartmann number is used as controlling parameter for velocity and temperature profile. That can be recorded as its extended values help to normalize the velocity, whereas it controls the rapid increase in temperature. The temperature profile is boosted by increasing the value of the Biot number, a physical parameter. Similarly, it also increases for an increased percentage of volume fraction of particles (SWCNTs/MWCNTs). The Hartmann number plays an important role in decreasing local skin friction coefficient. The influence of the Biot number and volume fraction of nanoparticles caused similar increasing effects on the local Nusselt number. Nanoparticles of the form SWCNT provide better heat transfer as compared to MWCNTs. Influence of the Biot number and volume fraction of nanoparticles caused similar increasing effects on the local Nusselt number. Nanoparticles of the form SWCNT provide better heat transfer as compared to MWCNTs.
Originality/value
To gain insight into the problem, the effects of various emerging parameters and physical quantities such as Biot number, Nusselt number and skin friction coefficient, have been explored.
Details
Keywords
Umar Khan, Adnan Abbasi, Naveed Ahmed and Syed Tauseef Mohyud-Din
This paper aims to explore the flow of nanofluid over bi-directional stretching sheet in the presence of magnetic field and linear thermal radiation.
Abstract
Purpose
This paper aims to explore the flow of nanofluid over bi-directional stretching sheet in the presence of magnetic field and linear thermal radiation.
Design/methodology/approach
In this study, water is taken as a base fluid, and copper is diluted in the base fluid. Further, four different shapes of nanoparticles are considered for the analysis. The governing nonlinear partial differential equations are transformed into the system of ordinary differential equations after using the feasible similarity transformations. Solution of the model is then performed by means of Runge–Kutta scheme.
Findings
Influence of the emerging dimensionless parameters on velocity, temperature, skin friction coefficient and local rate of heat transfer are studied with the help of graphs.
Originality/value
The study is presented in this paper is original and has not been submitted to any other journal for the publication purpose. The contents are original, and proper references have been provided wherever applicable.
Details
Keywords
Syed Tauseef Mohyud-din, Muhammad Asad Iqbal, Umar Khan and Xiao-Jun Yang
This paper aims to propose a method by merging Legendre wavelets method and quasilinearization technique to tackle with the nonlinearity and to get better and more accurate…
Abstract
Purpose
This paper aims to propose a method by merging Legendre wavelets method and quasilinearization technique to tackle with the nonlinearity and to get better and more accurate results.
Design/methodology/approach
To test the significance of the proposed scheme, the authors applied the method on the model representing magneto-hydrodynamic squeezing flow of a viscous fluid between two parallel infinite disks, where one disk is impermeable and the other is porous with either suction or injection of the fluid. For the sake of comparison, numerical solution by using RK-4 is also computed. From the graphs and tables, it is evident that the proposed method shows an excellent accordance with the numerical solution.
Findings
The solution converges to the numerical solution when the degree of Legendre polynomials m is increased. For m = 20 in all the three cases, for different values of S, M and A, the graphs of solutions obtained by Legendre wavelet quasilinearization technique show an excellent agreement with numerical solution. Also, it is evident from figures that suction and injection affects the velocity profile in opposite way. For suction, maximum velocity is seen to be at the center of the channel. Magnetic field can be used to regularize the flow and it stabilizes the flow behavior.
Originality/value
Magnetic field can be used to regularize the flow and it stabilizes the flow behavior.
Details
Keywords
Naveed Ahmed, Umar Khan, Syed Tauseef Mohyud-Din and Saeed Ullah Jan
In this current study, the authors aim to analyze non-linear radiative squeezed flow in a rotating frame of viscous fluid.
Abstract
Purpose
In this current study, the authors aim to analyze non-linear radiative squeezed flow in a rotating frame of viscous fluid.
Design/methodology/approach
The Radioactive nature of the fluid is taken into consideration. The reduced form of equations governing the flow are developed by the implementation of similarity transformations. The coupled system thus obtained is solved by using the homotopy analysis method (HAM).
Findings
Augmentation in velocity and temperature profiles is discussed graphically by varying various involved parameters. The total error of the system is discussed in Table I. The cases of linear radiation and non-linear radiation are also discussed in Tables II and III.
Originality/value
The study presented in this paper is original and it has not been submitted to any other journal for publication purpose. The contents are original and proper references have been provided wherever applicable.