Reviews of Management Sciences (RMS)
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102 research outputs found
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The Moderating Role of ROA in the PER-Firm Value Nexus: Evidence from Pakistan’s Banking Sector
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Firm Value (FA) acts as a key measure of the efficiency of banking institutions in allocating resources and investor confidence in confidence in times of economic uncertainty. This research investigates the impact of investment choices, represented by the Price-to-Earnings Ratio (PER), and tests the moderating effect of profitability, represented by Return on Assets (ROA), on FV in commercial banks in Pakistan.
Methodology
The research applies panel data from 20 listed commercial banks for the period 2018–2023. Using a Random Effects Model (REM) on panel data diagnostics, the research examines direct and moderating effects of PER and ROA on FV.
Findings
The results show that neither PER nor ROA has any statistically significant direct effect on FV. Furthermore, ROA does not significantly moderate PER-FV. The findings are indicative of the complexity of value creation in commercial banks and suggest the possibility of other unexplored internal and external variables playing a more significant role in determining firm value.
Conclusion
The research provides insights to regulators and managers to move beyond conventional measures such as PER and ROA while formulating policies for augmenting firm value in turbulent environments.
Practical Implications
The management of banks and regulators in Pakistan must reconsider relying on traditional measures of PER and ROA to build firm value in turbulent environments. Further studies are essential in coming up with other untested internal and external factors that play a significant role in the value of firms in the Pakistani business banking industry.
Policies to increase the value of a firm should not be limited to concentration on only evidence of PER and ROA as a broader range of indicators offering good results need to be used
Impacts of Climate Change, Environmental Degradation, and Regulatory Compliance on Insurance Industry Dynamics in Emerging Economies
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This study investigates the impact of temperature variability (TMP), ecological risks (ENV), and regulatory measures (REG) on the insurance industry (INS) in Lagos, Nigeria. It examines how climate change, environmental issues, and evolving policy regulations impact insurance operations and risk management.
Methodology
A quantitative research design was adopted, utilizing survey data collected from 150 insurance professionals across life, non-life, and reinsurance companies. The data were analyzed using descriptive statistics, chi-square tests, and multiple regression analyses to assess the influence of TMP, ENV, and REG on the performance of the insurance industry.
Findings
Results indicate that temperature variability (TMP) significantly increases insurance claims at the 1% significance level, suggesting a need to revise risk assessment and pricing models. Ecological risks (ENV) exert a statistically significant negative effect at the 5% level, emphasizing the importance of adaptive risk management strategies. Regulatory measures (REG) have a positive and significant effect at the 5% level, promoting compliance, innovation, and operational stability.
Conclusion
This study provides real-world evidence of the relationship between environmental change, regulation, and insurance performance in a developing economy. It offers valuable insights for sustainable insurance in climate-sensitive regions. The results indicate that policymakers and insurers should incorporate climate risk into their financial planning, underwriting, and operational strategies. Stronger regulations and adaptive risk management can make the industry more resilient
Comparative Evidence for Innovative Models for Infrastructure Financing in Ghana
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This study explores the role of innovative financing models in overcoming infrastructure development challenges in developing countries. Infrastructure—encompassing transportation, energy, water, and telecommunications—is crucial for economic growth and social inclusion. However, many developing nations face financing gaps due to fiscal constraints, underdeveloped financial markets, and reliance on public funding.
Methodology
The study uses a quantitative approach to examine how Public-Private Partnerships (PPPs), infrastructure bonds, Sovereign Wealth Funds (SWFs), and blended finance can mobilize private sector investment, based on secondary data from government publications, international financial institutions, and academic journals. Secondary data was collected from 2010 to 2023. For data analysis, regression was used.
Findings
The findings reveal that while innovative financing models can significantly impact infrastructure development, their success depends on robust regulatory frameworks, political stability, and local capacity building. Public-private partnerships (PPPs) enhance project efficiency and accountability by distributing risks between the public and private sectors. Infrastructure bonds effectively mobilize long-term capital, while sovereign wealth funds (SWFs) provide a sustainable source of financing. Blended finance, which combines public and private capital, has proven particularly effective in sectors that are otherwise unattractive to private investors due to high risks.
Conclusions
The research identifies several challenges, including the need for improved regulatory and policy frameworks to attract private investment and ensure transparency. The study concludes that while innovative financing models are essential for bridging the infrastructure financing gap, their effectiveness depends on creating enabling environments that support private sector participation. Additionally, there is a pressing need for capacity building within the public sector to effectively manage complex financing structures
Fiscal Deficits and Inflation: An Empirical Analysis from South Africa
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The importance of fiscal considerations in elucidating the primary causes of inflation has received considerable attention. A well-known macroeconomic theory states that governments with ongoing budget deficits eventually must create money to cover them, which leads to inflation. This study examines fiscal deficits and inflation, using an empirical analysis from South Africa.
Methodology
The data from 1986 to 2021 was collected from the World Development Indicator (WDI, 2021). The ARDL econometric technique was used to test the nexus among the variables.
Findings
The study\u27s findings show that the long-term fiscal deficit coefficient is positive and statistically significant. The long-term results support the expected sign that the budget deficit directly impacts inflation in South Africa. The coefficient (0.78) indicates that a percentage increase in the budget deficit will cause inflation in South Africa to rise by roughly 0.78%.
Conclusion
It is recommended that the government use less inflationary sources, such as the non-banking technique, to finance fiscal deficits during economic downturns. The study also suggests keeping the fiscal deficit at a manageable level to keep inflation under control in South Africa, which will lead to growth and lower inflation
Monetary Policy and Profitability of Deposit Money Banks in Nigeria
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The significance of banking sectors for economic development, in every economy, cannot be overemphasized. This research investigates how monetary policy impacts the profitability of deposit-taking banks in Nigeria.
Methodology
The study employs an approach based on a static panel data estimator and the Dumitrescu and Hurlin panel causality tests to evaluate the defined objectives. The study\u27s data spanning 2012 to 2022, was obtained from the yearly reports of the chosen banks and Central Bank Statistical Bulletin.
Findings
The study revealed that monetary policy rates are a key factor influencing return on equity among banks in Nigeria at 1% level of significance. Furthermore, this research found the cash reserve ratio to be a significant factor influencing return on assets across banks in Nigeria at 5% level of significance. It was determined that monetary policy is a significant determinant of the profitability of banks in Nigeria.
Conclusions
This study extends evidence to examine how monetary policy impacts the profitability of deposit-taking banks in Nigeria. Amongst others, the research suggests that the central bank\u27s administration of monetary policy be flexible, allowing deposit-taking banks to perform their duties effectively to the public
The Impact of COVID-19 on Recruitment and Selection: A Digital and Network-Oriented
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This systematic review comprehensively examines how the COVID-19 pandemic influenced recruitment and selection practices in organizations, particularly in relation to digitalization and network-oriented approaches.
Methodology
A systematic search of peer-reviewed literature was conducted through electronic databases, such as PubMed and Scopus, since January 2020. The search terms combined "COVID-19" or "pandemic" with "recruitment," "hiring," "selection," and "digitalization. Two independent reviewers have screened titles, abstracts, and full texts against pre-defined inclusion criteria. Bias was assessed, and findings have been synthesized narratively, identifying common themes, benefits, and challenges across diverse global contexts.
Findings
This review revealed rapid and widespread acceleration in the digitalization of recruitment and selection processes, including the mandatory shift to virtual interviewing, online assessments, and digital onboarding. It increased reliance on network-oriented recruitment methods, such as professional social media platforms and enhanced employee referral programs, driven by talent shortages and remote work imperatives. The synthesis likely identifies benefits such as expanded talent pools and increased efficiency, alongside significant challenges, including digital stress, the complexity of maintaining organizational culture and candidate experience in virtual settings, and navigating governmental or cultural barriers in global hiring.
Conclusion
This systematic review offers robust synthesis of the literature on how the COVID-19 pandemic reshaped recruitment and selection practices through accelerated digitalization and network-oriented approaches. The findings provide crucial insights for HR professionals adapting to the new methods of talent acquisition and long-term innovations in HR
From Likes to Loyalty: Exploring the Pathways Linking Interactive Social Media Engagement to Consumer Loyalty
Full text linkPurpose
This study examines how interactive social media marketing influences brand loyalty, focusing on the mediating roles of Brand Awareness, Perceived Value, and Brand Love.
Methodology
Structural Equation Modeling with PLS-SEM was employed with a sample of 385 respondents, who were administered through convenience sampling, to execute this quantitative research with a cross-sectional time order. Bootstrapping was applied to assess mediation effects.
Findings
Results show that social media marketing significantly enhances brand awareness and love, but does not strongly influence the perceived value. The mediation analysis confirms that social media marketing affects brand loyalty indirectly through brand awareness and brand love, with brand love as the more powerful mediator. Perceived value does not significantly mediate the relationship.
Conclusion
The research suggests that social media marketing enhances brand awareness and emotional involvement, although it exerts no influence on perceived value. Brand love is the most potent catalyst and mediator of loyalty, signifying that emotional connection outweighs logical assessment. Consequently, companies should prioritize cultivating authentic emotional connections over merely increasing awareness to establish enduring customer loyalty. Managers should design social media strategies that foster emotional engagement and authentic connections, as loyalty is better sustained through brand love than through awareness or value perceptions alone
The Relationship between Tax Revenue, Economic Growth, and Trade Openness in Developing Countries
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This research examines the interplay between tax revenue, trade, and economic growth in Bangladesh, Indonesia, Malaysia, Vietnam, and Turkey from 1990 to 2024. It examines whether trade openness weakens growth, whether growth can be strengthened, and whether there is a nonlinear threshold at which excessive trade openness has a negative impact on growth.
Methodology
This study uses annual panel data from 1994 to 2024. Econometric techniques include the Fixed Effects Model (FEM), Generalized Least Squares (GLS), nonlinear estimation, and the System Generalized Method of Moments (GMM). These methods address heterogeneity and possible endogeneity. The models include interaction and squared terms to account for moderating and nonlinear effects of trade openness.
Findings
Tax revenue has a significantly positive impact on economic growth. This finding confirms the role of tax revenue in driving growth by improving fiscal capacity in emerging economies. The trade opening further enhances this relationship, suggesting that liberalization leads to greater efficiency, better allocation, and technological spillovers. Nonlinear analysis reveals no benefits when trade openness becomes excessively high. Hyper-globalization can reduce fiscal space and amplify external vulnerabilities. Control variables indicate that FDI has a positive impact on growth, while inflation, population growth, and high consumption have negative effects.
Conclusion
This paper presents a new analysis by jointly examining taxation and trade openness using a nonlinear panel model, providing specific evidence for emerging Asian economies. Future Research Directions. Further studies could include digital tax reforms, quality of institutions and environmental taxation or expand the analysis to other wider regional panels to test the cross-country heterogeneity.
Practical Implications
Policymakers should coordinate domestic tax reforms and maintain moderate levels of trade openness to support sustainable and inclusive growth in emerging economies
Economic Policy Uncertainty and Oil Price Uncertainty: An Empirical Analysis on Selected Asia-Pacific Economies
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This paper examines the impact of Economic Policy Uncertainty (EPU) and Oil Price Uncertainty (OPU) on inflation in five Asian Pacific countries, including Pakistan, China, India, Japan, and South Korea.
Methodology
Data was collected from January 2010 to August 2024. The analysis employed the Autoregressive Distributed Lag (ARDL) framework, using broad money and the output gap as control variables to account for monetary and demand-side impacts.
Findings
The results indicate that EPU exerts a significant inflationary effect in Pakistan and India, while OPU remains insignificant in both countries. Broad money also drives inflation in India. In China, OPU reduces CPI inflation, likely due to policy interventions. Japan exhibits a negative output gap effect, with EPU and OPU insignificant. For South Korea, EPU has a disinflationary short-run impact, but no long-run association is observed.
Conclusion
The results, in general, point to country-specific dynamics, which reflect varying monetary policy frameworks, institutional credibility, and resilience to uncertainty shocks, with significant implications for inflation management in the Asia-Pacific region.
Implication
The policymakers should endeavor to decrease the uncertainty to balance inflation. Monetary policy should be rigorous to accomplish long-term price growth perspectives. Mitigate the external oil shocks by inventing and executing novel energy techniques
Banking, Money Supply and Economic Growth: An Empirical Analysis from Nigeria
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This study explores the relationships between banking, money supply, and economic growth through an empirical analysis of Nigeria.
Methodology
Data from 1986 to 2021was gathered from the World Development Indicators and analyzed using the Auto-Regressive Distributed Lag model. The variables considered in this research include money supply, banking, and economic growth.
Findings
The results demonstrate that economic growth is consistent with different variables employed. Remarkably, outstanding deposits at commercial banks (OuD) also positively affected GDP, also in the long run, a rise in OuD by a percentage led to a 23.92% GDP increase. This indicates that, on average, OuD has a considerable long-term effect on GDP. Additionally, RcR has a direct impact on economic growth, the long-run results showed that the OuL had a positive effect on GDP irrespective of the country region. Initially, it was found that they positively contributed to economic growth, which in turn justifies the purpose of the banking system, as well as supports the intermediation theory of banking.
Conclusion
According to this study, based on the ARDL model, the role of the money supply in economic growth cannot be overstated. Additionally, the disequilibrium correction terms demonstrate that Nigeria is trending toward growth targeting, one of the country\u27s main economic goals, albeit at a slower pace