Market Forces (Journal of Management, Business and Economics, College of Management Science, PAF-KIET)
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Economic Determinants of Rupee-Dollar Exchange Rates
Get PDFThe objective of this study is to examine the economic determinants of USD-PKR exchange rate. This study uses four independent variables (i.e., inflation rate, interest rate, GDP and money supply) and one dependent variable (i.e., USD-PKR exchange rate). We have used a dataset for the period 2008 to 2017. The data was retrieved from the official websites of the State Bank of Pakistan, the World Bank, and the Pakistan Bureau of Statistics. Several diagnostic tests were applied before multiple regression. The results suggest that the money supply and interest rate have a positive relationship with the USD-PKR exchange rate while we found an insignificant relationship between inflation rate and USD-PKR exchange rate. The main limitation of this study is that it uses data from Pakistan only. Future research may use cross-country data to examine the relationships between these variables.Keywords: Exchange rate, inflation rate, money supply, interest rate, GDP, Pakistan
Corporate Entrepreneurship, HRM Practices and Firm Performance
Get PDFAIn modern business dynamics, firm growth and sustainability significantly depends on corporate entrepreneurship (CE) and entrepreneurship (E) practices. Because of their significance, we have examined the direct and indirect effect of corporate entrepreneurship (CE) and entrepreneurship (E) on firm performance (FP) in SMEs of Nigeria. We have used a sample of 387 for collecting the data non-randomly. The tool we used for collecting the data was a close-ended questionnaire, which we adapted from earlier studies. The authors have used Smart PLS for statistical analysis. We found that corporate entrepreneurship (CE), entrepreneurship (E), and human resource management (HRM) affects firm performance (FP). We also found that HRM practices also have a significant link with corporate entrepreneurship (CE), entrepreneurship (E), and firm performance (FP). The results also suggest that entrepreneurship (E) and corporate entrepreneurship (CE) mediates HRM practices and firm performance (FP). The above findings were consistent with the view that HRM practices are an essential component of an organization. HRM activities besides conventional functions also promote entrepreneurial (E) behaviour and organizational outcomes. Thus, the HRM department must continuously revisit the policies and procedures to ensure that they are aligned with the changing environment. Entrepreneurial (E) and corporate entrepreneurial (E) orientation support an environment that encourages employees to participate in decision making, which enhances employees’ sense of belonging and promote a positive attitude towards work.Keywords: Corporate entrepreneurship, entrepreneurship, practices, firm performance, Nigeri
Audit Reporting Lag and Firm Value in Nigerian Food and Beverage Companies
Get PDFDelays in financial reporting give a negative signal to the market and adversely affect the company’s market value. Financial reporting lags raise suspicions among market participants regarding concealment of any potential bad news by a firm, which may affect its share value. Thus, the study investigates the interaction of audit reporting lag and firm value in Nigerian beverage and food companies. Audit delays lead to the late publication of financial statements, enhancing the information asymmetry problem, and affecting firm value. We obtained the data from annual reports of 10 listed companies for five years. The Generalized Method of Moments (GMM) estimation is used to analyze the data. The results suggest that audit delays do not affect the market value of a firm. Previous studies mainly focus on the relationship between corporate governance firm characteristics, and audit reporting lag in Nigeria. To the best of our knowledge, the impact of audit delays on firm value in Nigeria is yet to be adequately explored. The finding may help statutory bodies in reducing the period of financial reporting. The results may also help firms improve their performance and promote an environment that may give investors confidence. This study has focused on the food and beverage sector in Nigeria. Future studies can be undertaken in other sectors which may bring more insight to the issues related to financial reporting lags
The Role of Job Satisfaction and Burnout on Work-Family Conflict and Turnover Intentions
Get PDFJob satisfaction (JS), burnout (BO), and work-family conflict (WFCs) have numerous consequences on employees and organizations. Despite an abundance of research on the subject, previous studies have not examined the multi-mediating effects of JS and BO on WFCs and turnover intentions (TIs). Given this gap, we have contributed towards the body of knowledge by developing a new model based on the four theories (i.e., effort-reward imbalance model, conservation resource model, social exchange theory and identity theory). A sample of 387 respondents from the banking sector of Karachi was selected non-randomly. The Smart PLS software was used for statistical analysis. The results suggest that WFCs enhance TIs and JS. On the contrary, past studies indicate that increased WFCs decrease JS. The study also found that BO increases TIs, which is in line with the results of other studies. We also found that JS negatively affects BO and positively affects TIs. The results also suggest that JS has a mediating effect on BO and TIs, and BO has a mediating effect on TIs. The study also indicates that both JS and BO mediates WFCs and TIs.Keywords: Job satisfaction, work-family conflict, burnout, turnover intentions, banking, Karachi
Employee Cynicism and Organizational Change
Get PDFOrganizational performance and its sustainability significantly depend on aligning business procedures with the fast-changing environment. Because of its significance, the study is based on the Social Exchange Theory. It has developed a new model that has five latent variables (i.e., organizational change, organizational commitment, trust, employee cynicism, and tendency to gossip and a total of fifteen direct and indirect relationships. The study has focused on SMEs in New York. The sample size for the survey was 390 calculated at a 95% percent confidence level and a 5% margin of error. The scales used in the study were adapted from earlier studies. The author has collected the data personally by visiting selected SMEs and used SmartPLS for data analysis. The results suggest that employee cynicism has a negative association with organizational change, the tendency to gossip, and trust. The organizational change also has a negative relationship with organizational commitment and trust. The tendency to gossip and trust have a negative association with organizational commitment. The results support all five single mediating relationships and two multi-mediating relationships. Based on the results, the study has concluded that the element of trust between employees and management is the most crucial aspect in SMEs of the surveyed units. Employees who have confidence and trust in management policies and procedures tend to support change management processes and have a high commitment level towards the organization.Keywords: Organizational change, commitment, trust, employee cynicism, the tendency to gossip
Training & Development, Organizational Commitment and Turnover Intentions in SMEs
Get PDFTraining and development is an important tool for motivating employees and increasing organizational performance. Therefore, we have developed a new model in which we have empirically tested four direct relationships, three mediating relationships, and one moderating effect. We have collected the data from selected SMEs in Karachi. A total of 410 questionnaires were distributed, and 385 valid responses were available. The instrument was adapted from earlier studies. We have used Smart PLS for data analysis. Of the four direct hypotheses, we found support for two of them. Similarly, we only found support for one indirect hypothesis and no support for the moderating relationship. The study found that antecedents “availability of training and managerial support for training†stimulate organizational commitment. However, we did not find any support for the “association between motivation to learn and organizational commitment†in Karachi SMEs. In contrast to earlier literature, we found that “organizational commitment stimulates turnover intentions.†Organizational commitment mediates (1) availability of training and turnover intentions, and (2) managerial support and turnover intentions. However, the study did not support organizational commitment’s mediating role on motivation to learn and turnover intentions. Similarly, constituent attachment did not have a moderating effect in our study
Antecedents of Attitude towards Advertising of Controversial Products in Digital Media
Get PDFThe promotion of controversial products on digital media has become a challenge for marketers as consumers of different ethnicities and cultures access web media. Therefore, the study has examined the impact of advertising’s antecedents on consumers’ attitude and their effect on purchase intentions. The study has also considered the mediating roles of attitude towards purchase intentions. The population for this study comprises of adult female digital media users. We collected data from 400 female respondents via the online survey method. The results suggest that hedonic value, falsity, and materialism directly impact attitude towards the advertising of controversial products. Further, hedonic value and materialism also affect purchase intentions. We also found that advertising attitude mediates the relationship between hedonic value, falsity, materialism, and purchase intentions. The study’s empirical results will help design appropriate marketing strategies, especially in the context of controversial products. Future research may extend the model by incorporating other factors and testing their efficacy in different regions and cultures
Determinants of Firm Value in Shariah Compliant Companies
Get PDFThis study explores the determinants of firm value in Shariah-compliant firms listed on the Pakistan Stock Exchange (PSX). The dataset covers the period from 2009 to 2016 for firms listed on the KMI-30 index. We used three different proxies for firm value, i.e., Tobin’s Q, market-value-to-book value ratio, and log of the market price of shares. Based on regression analysis, we have concluded that firm value significantly and positively influences dividend per share and fixed asset turnover in all model specifications. Further, both the debt ratio and firm size substantially and negatively impact firm value. However, both dividend payout and dividend yield have an insignificant effect on firm value. The mixed results partially support the dividend relevance theories, which imply that the dividend payments influence firm value. Moreover, the results also support the view that a firm’s size and its efficiency in utilizing assets influence its valuation. The results are broadly consistent with previous research on the determinants of firm value. The study will facilitate policymakers in developing suitable policies for regulating Shariah-compliant instruments. Likewise, investors looking for Halal returns on their investments may also gain valuable insights about the determinants of firm value in Shariah-compliant organizations.Keywords: Firm value, Tobin’s Q, market-to-book-value ratio, dividend policy, dividend payout, dividend yield, debt ratio, fixed asset turnover, firm size, Pakistan Stock Exchange (PSX)
Revisiting Purchasing Power Parity in Pakistan
Get PDFThe study aims to revalidate the purchasing power parity hypothesis in Pakistan using yearly exchange rate data from 1980-2012. The Augmented Dickey-Fuller and Zivot-Andrews unit root tests were used to validate the long run purchasing power parity hypothesis. The results suggest that the Augmented Dickey-Fuller test failed to validate the PPP hypothesis in Pakistan. However, the Zivot-Andrews unit root test with structural break provides evidence to support the PPP hypothesis. The finding is not consistent with several prior studies which did not find evidence to support the PPP hypothesis. Future studies may analyze the PPP hypothesis in other developing countries using advanced time series approaches.Keywords: Purchasing power parity, exchange rate, unit root test, structural break, Pakistan
Role of Work Engagement and Job Performance in an LMX Environment
Get PDFThe banking environment in Pakistan is quite demanding. Employee motivation level is generally low and turnover intentions are high which has made it difficult for banks to retain talented employees. In view this problem, the study has developed a conceptual framework that has six direct and three indirect relationships. The scope of the study was restricted to the banking sector of Karachi, Pakistan. A self-administered questionnaire was used in the study and the sample size was 220. The results suggest that LMX has a significant effect on creative work involvement, work engagement, job performance and turnover intentions. The study also found that work engagement mediates leader member exchange (LMX) and job performance. Moreover, job performance mediates LMX and turnover intentions while job performance mediates work engagement and turnover intentions. The results suggest that organizations must focus on developing a sustainable LMX environment as it will improve work engagement, job commitment and organizational commitment. This study was restricted to the banking industry of Karachi. Future studies may examine the consequences of LMX in firms based in other cities of Pakistan.Keywords: Job performance, LMX, turnover intentions, work engagement, creative work involvement