Sundas Sohail, Farhat Rasul and Ummara Fatima
The purpose of this study is to explore how governance mechanisms (internal and external) enhance the performance of the return on asset (ROA), return on equity (ROE), earning per…
Abstract
Purpose
The purpose of this study is to explore how governance mechanisms (internal and external) enhance the performance of the return on asset (ROA), return on equity (ROE), earning per share (EPS) and dividend payout ratios (DP) of the banks of Pakistan. The study incorporates not only the internal factors of governance (board size, out-ratio, annual general meeting, managerial ownership, institutional ownership, block holder stock ownership and financial transparency) but also the external factors (legal infrastructure and protection of minority shareholders, and the market for corporate control).
Design/methodology/approach
The sample size of the study consists of 30 banks (public, private and specialized) listed at the Pakistan Stock Exchange (PSE) for the period 2008-2014. The panel data techniques (fixed or random effect model) have been used for the empirical analysis after verification by Hausman (1978) test.
Findings
The results revealed that not only do the internal mechanisms of governance enhance the performance of the banking sector of Pakistan but external governance also plays a substantial role in enriching the performance. The findings conclude that for a good governance structure, both internal and external mechanisms are equally important, to accelerate the performance of the banking sector.
Research limitations/implications
Internal and external mechanisms of corporate governance can also be checked by adding some more variables (ownership i.e. foreign, female and family as internal and auditor as external), but they are not added in this work due to data unavailability.
Practical implications
The study contributes to the literature and could be useful for the policy makers who need to force banks to mandate codes of governance through which they can create an efficient board structure and augment the performance. The investments from different forms of ownership can be accelerated if they follow the codes properly.
Social implications
The study facilitates the bankers in incorporating sound codes of corporate governance to enhance the performance of the banks.
Originality/value
This work is unique as no one has explored the impact of external mechanism of governance on the performance of the banking sector of Pakistan.
Details
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Ummara Yousaf, Muhammad Faizan Khan, Ismail Khan, Muhammad Zubair Khan and Muhammad Nadeem Dogar
The purpose of this study endeavour is to delve into the perceptions and sense-making of both spiritually empowered leadership and workplace spirituality at the Akhuwat…
Abstract
Purpose
The purpose of this study endeavour is to delve into the perceptions and sense-making of both spiritually empowered leadership and workplace spirituality at the Akhuwat Foundation, a prominent social sector microfinance organization in the Muslim majority economy of Pakistan.
Design/methodology/approach
Using a qualitative research approach and an intrinsic instrumental case study research methodology, a series of 16 in-depth semi-structured interviews and three focus group discussions (each focus group contained five members) were conducted with employees and leaders at the Akhuwat Foundation of Pakistan from June 2020 to June 2021.
Findings
The findings from thematic data analysis show that the spiritual leadership at Akhuwat Foundation implemented workplace spirituality by creating a spiritual environment, such as brotherhood, at the workplace. Moreover, the employees exercise workplace spirituality by voluntarily performing their duties at lesser salaries. Alternatively, spiritual leaders care for employees by reducing organizational problems and improving their employees’ well-being.
Research limitations/implications
Although this research explores spiritual leadership and workplace spirituality in the national context of Pakistan, further investigation in other contexts is required to cross-check and validate the research findings.
Practical implications
Regulators and policymakers of organizations operating in Muslim-majority countries should focus on brotherhood, inspire employees through vision, resolve organizational challenges and create a spiritual environment for spiritual leadership and workplace spirituality to improve employee well-being, broader societal welfare and organization’s overall performance.
Originality/value
This study revealed new themes of workplace spirituality and spiritual leadership in the organizational context of a Muslim-majority country, Pakistan, identified context-specific themes and enhanced the theory of spiritual leadership and workplace spirituality.