The paper investigated the impact of capital structure and dividend policy on firm performance and stock return. The study used the panel data of 24 companies listed in KSE 100 index of Pakistan over the period of 2007–2013. Results of Hausman, (1978) test suggest Random Effect Model. Firm Performance is the dependent variable and capital structure is the independent variable. Moreover, two control variables are also used (i.e. Growth and Size). The result shows that capital structure portion (STD and LTD) has negative impact on performance of the firm. Furthermore, dividend policy (Pay) also has negative relationship with performance of the firm.
Potential of human resource has always been considered as at the heart of a business organization. An effective human resource can not only ignite the organizational excellence but it is also a cornerstone for the consistency of optimal level of business performance. The aim of research paper is one of the most discussed areas in the literature related to human resource management called “Workforce diversity”. Right from the start of modern business practices public and private business organizations came into existence and so the difference in human resource focus of both these types of business organizations. Focus of this study is to explore the difference among employees of both types of above mentioned business organizations, keeping in view the level of workforce diversity in their respective organizations. The said research gap is that no such study has been done before in literature keeping in view Pakistani business environment. Target population comprising of banking sector, health and medical services sector was studied and brought under light by taking a sample of 150 employees. In order to analyze the acquired data statistical tools like independent t test and frequency test were also applied for findings. Findings of the study state that there exists huge difference among employees working in public and private sector organizations due to conception and application of workforce diversity in both of these business organization types. It was also found that middle and operational levels of workforce are more diverse in comparison with top levels of workforce. Workforce diversity is properly planned in most of the private organizations while public sector organizations are still lagging behind. Due to significantly highlighted importance of organizational performance in public sector organizations; public sector is now improving application of workforce diversity in its practices. Keywords: Workforce Diversity, Public & Private Sector, Culture, Organizational Performance.
Abstract Despite the claims that corporate social responsibility (CSR) plays a vital role in employee behavior, the empirical support of these claims is limited especially in the Pakistani context. Thus, this paper aims to fill this gap by investigating the relationship between employees' perception of CSR and employee engagement (EE) in Pakistan. In addition, the present research also looks at the role of gender differences in terms of CSR perception and EE. The data were collected from employees working in different industries of Pakistan, such as manufacturing, banking, electronics, and oil and gas. Structural equation modeling technique was used to test the hypothesized relationships. The results revealed a significant positive impact of CSR perception on EE. Furthermore, the moderation effect of gender on the CSR‐EE relationship was investigated. The empirical evidence showed a stronger relationship between CSR and women than men. The current study attests the importance of CSR in nurturing employees' positive work behavior. This research suggests the incorporation of CSR in a business to the maximum possible capacity.
Drawing upon the self-regulatory perspective, we investigate the antecedents of abusive supervision. We study supervisor's work stress as a predictor of abusive supervisory behavior and investigate supervisor ego depletion as an intervening mechanism. Furthermore, we study the role of gender in explaining ego depletion and abusive supervision. We employed a multilevel research design to study supervisor work stress and ego depletion at group level and perception of abusive supervision at individual level. Data are collected from 59 supervisors and 295 subordinates working in the banking sector. We find that supervisor work stress is positively associated with subordinates' perception of abusive supervision, and supervisor ego depletion plays a mediating role. We find that these relationships are more pronounced for females than males. We contribute by identifying supervisors' work stress as an antecedent of abusive supervision and extend ego depletion theory by studying supervisor's ego depletion as an underlying mechanism.
Insurance sector is mainly affected by financial crisis due to failure of other sectors such as banks where insurance companies has put their guarantee on different securities and its investments in other sectors faced huge losses. AIG suffered from a liquidity crisis when its credit ratings were downgraded below AA levels in September 2008. AIG affected due collateral demand of $100 billion by counter parties on forward contract and currency swapping. The company’s liquidity position become too weak to get support from Government in form of bailout package to pay out its debt obligation and meet the collateral demands by counter party. In 2008 leverage position of company reach its high that was due increased debt (borrowing from Government) and losses from operations and investments depleted the equity amount. Same case with the Lincoln national corporation and Hart Ford financial services in 2008 the due losses from operations and other investments the equity amount decrease too much, so too get bailout package from US Government. These both companies have retuned back the bailout amount to treasury department but AIG has still $50 billion outstanding. In 2010-11 the performance of companies is good to some extent and debt to equity ratio of above all companies is decreased and unrealized losses are now recovered. Keywords : Financial Crisis, Debt-to-Equity, Federal Reserve Bank, Insurance Sector.
The intent of the present study is to find out impact of transformational leadership on employee motivation in banking sector of Pakistan.Data about relationship of transformational leadership with employee motivation in banking sector (Allied Bank Limited, Habib Bank Limited and National Bank of Pakistan) was collected through a designed questioner "MLQ (Multi Factor Leadership Questionnaire)".Test size population was 290 components from populace.In actual, 350 polls were sent to populace (Major three banks) and 290 answers were great quality for study and after data screening 270 responses were accounted for of 90 responses of each bank.Regression analysis revealed that all dimensions of Transformational Leadership have positive impact on Employee Motivation which proves that Transformational Leadership has significant, positive and strong effect on employee motivation in the Banking sector of Pakistan.Study also reveal that there is positive and strong relationship of all dimension of transformational leadership such as Idealize Influence (II), Individual Consideration (IC), Intellectual Stimulation (IS) and Inspirational Motivation (IM) with employee motivation.At the end concluded that it is all in the hand of organization to keep the employees motivated to work because they can develop such policies that lead to motivation of employees.
Purpose Pakistan has experienced financial liberalization with rapid ups and downs in economic growth due to domestic issues during the last 2 decades. Motivated by inconclusive and conflicting time-driven findings about the performance of the business groups, this study examines the performance of business groups in Pakistan for a relatively long period from 2003 to 2018. Design/methodology/approach The study uses 3,821 firm-year observations from non-financial firms listed on the Pakistan Stock Exchange (PSX). For the estimation, pooled ordinary least squares (OLS) with industry- and year fixed effects and two-step system generalized methods of moments (GMM) are used. Findings The study finds that group-affiliated firms outperform independent firms in accounting performance, while underperform in market performance. The outperformance is mainly driven by medium-sized business groups, while underperformance is driven by small and large business groups. Further, the study documents that the underperformance in terms of market performance of firms affiliated with small and large groups is greater before the economic downturn, while outperformance in terms of the accounting measure of firms affiliated with medium-sized groups is greater during the economic downturn. These findings support our time-driven concerns. Overall, the authors' findings are consistent with institutional and transaction cost theories. Practical implications Business groups are important channels to reduce market inefficiencies. Business groups may enhance the affiliated firms' resources and resistance capacity through active utilization of the internal capital market, specifically when market conditions are not ideal for affiliates. However, effective utilization of internal capital markets depends on group size. Therefore, investors should deliberate on the size of business groups and diversification within business groups. Originality/value The authors extend the literature by providing fresh evidence related to the performance of business groups in the Pakistani context while accounting for the role of the size of business groups.
The objective of the study is to investigate the impact of board composition on firm's financial performance. A case of Pakistani listed companies a modal consist 18 organizations at KSE from the year ended from 2008 to 2012. In this study bank performance can be measured by using the return on equity and return on assets as performance techniques. A model consist 18 non financial organizations at KSE form the year ended 2008 to 2012 is selected. Which have independent board of director in their board, were scrutinize higher return on assets (ROA) and Tobin's Q.
The sustainable and socioeconomic development of any country is based on reliable energy resources which are also to be considered as the lifeline of the country’s development. Pakistan is facing a severe energy crisis. Despite strong economic growth and rising energy demand during the past decade, some efforts have been made to install a new power plant for energy generation but have not achieved any sustainable development in this regard. The aim of this work is to utilize agricultural waste-based biomass like wheat straw to generate electricity in Punjab (PAKISTAN) to overcome the specter of load shedding and to fulfill energy demands in PAKISTAN. In this article, a detailed analysis of the production of wheat and wheat-straw has been debated. It is also studied that such field-based residues are a significant energy resource that can be used to generate electricity, based on clean energy technologies. In this paper, two biomass conversion technologies such as biomass gasification and biomass combustion are discussed in detail. It is also proposed one model village based on the wheat straw to fulfill the electricity demand of the village. Such proposed way can be implemented in the wheat rich areas. Therefore, in this paper, many recommendations have been reported for future consideration. Also, some clean energy-based technologies have been recommended which can lower environmental pollution and CO2. The potential of such waste/residues can be a sustainable source of income for the farmers as well as for the economy of the country. Therefore, some small units can be installed at the village level which can lower the overall energy crises. The impact of this research will be on the country economy, environmental friendly, and socio-economic.
Financial knowledge is essential for every individual, due to the complexity of the financial structure it becomes essential for everyone to manage their cash effectively. Because less financial knowledge consumers are confused while deciding that which product and services are most profitable. Therefore, this study aims at examining the relationship of financial knowledge with financial inclusion and financial decisions. We researched 8 districts of Punjab province in Pakistan. Data is collected through a survey questionnaire from a sample of 332 respondents. The results show that there is a positive relationship of financial knowledge with financial inclusion and financial decisions. The findings suggest that financially literate individuals can plan good financial decisions for their future life and they can also avail the services of financial institutions. The results are informative for the researchers and policymakers to deem how they can operationalize a balance of financial aid information and personal financial management guidance.
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