Internal Mechanism of Corporate Governance and Firm's Profitability: A Comparative Study of Financial and Non-Financial Firms
This research examines comparative effects of corporate governance internal mechanism on Profitability (ROA/ROE) in financial vs non-financial firms indexed on Pakistan Stock Exchange.The data of 296 firms (both types of firms) was taken from companies' audited accounts and various available documents of the State Bank of Pakistan for the period of 14 years (2001-2014). Panel data study is conducted as the data have the characteristics of both time series and cross-sectional. Multiple regression and fixed effect methods were employed to analyze the given dataset. Results revealed significance of both board characteristics and managerial ownership in the profitability of the selected companies.
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Board Independence, Managerial Ownership, Panel Data, Return on Equity
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(1) Muhammad Kaleem
Institute of Business Studies,Kohat University of Science & Technology, Kp, Pakistan.
(2) Sammar Abbas
Institute of Business Studies,Kohat University of Science & Technology, Kp, Pakistan.
(3) Zeeshan Zaib Khattak
Institute of Business Studies,Kohat University of Science & Technology, Kp, Pakistan.
Measuring the Dynamic Predictive Relationship of Social Media Metrics with Firm Equity Value: A Time Series Analysis
In the online environment, social media metrics offer a credible basis of customer feedback in anticipating the firm performance. This study verifies the association of social media metrics of Face-book and Twitter to financial market performance. Data were collected from official Facebook pages and Twitter accounts of 3 fast-food companies over the time period of 6 months. Then established multiple metrics for respective social media platforms and develop outcomes using Vector Autoregressive time series models to evaluate the instantaneous and continuing relationship between social media metrics and financial market performance of the firms in terms of unusual returns and idiosyncratic risk. Results indicated that FB metrics are significant leading indicators of firm equity value. However, Twitter metrics, have a weaker relationship with firm value as compared to FB metrics. Collectively, current research extends new visions for organizational top executives and investors concerning organizational equity valuation and the social media power transformation.
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Firm Equity Value, Social Media Metrics, Facebook, Twitter, Social Media Marketing.
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(1) Zeshan Ahmad
Assistant Professor, Business Administration,Air University Multan Campus, Pakistan.
(2) Imran Khan
Senior Lecturer, Department of Management Sciences, The Islamia University of Bahawalpur, Pakistan.
(3) Muhammad Abbas
Associate Professor, Business Administration, Air University Multan Campus, Pakistan.
Effect of Executive Ownership on the Relationship between Agency Cost and Equity Mispricing
The purpose of the current work is to investigate the influence of agency cost on equity mispricing for the firms listed on Pakistan Stock Exchange during the period from 2008 to 2016. Agency cost is estimated by asset utilization ratio, mispricing is computed by book- to -market ratio and some firms characteristic such as size, profitability and leverage are taken as control variables. Balanced panel method is used to estimate the results. The sample is divided into two parts on the basis of stock mispricing; undervalued and overvalued firms. The influence of agency costs is then separately examined on both sub-samples. Moreover, the effect of managerial ownership on the relationship between agency cost and mispricing is investigated. Results show that agency cost is positively linked with equity mispricing. Moreover, findings demonstrate that for undervalued firms, effect of agency costs is stronger but for overvalued firm, it is weaker and negative. Results are consistent with previous studies.
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Agency cost, Equity mispricing, Information Asymmetry
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(1) Faiq Mahmood
Assistant Professor, Lyallpur Business School,Govt. College University, Faisalabad, Punjab, Pakistan.
(2) Amir Inam Bhutta
Assistant Professor,Lyallpur Business School, Govt. College University, Faisalabad, Punjab, Pakistan.
(3) Muhammad Usman
Assistant Professor,Department of Management Sciences,University of Gujrat, Punjab, Pakistan.
Investment of Pension Funds in Different Streams: Evidence from Low vs. High Growth Oriented OECD Countries
Pension funds pools’ investments have an impact on its growth. These investments can be either in equity stock, bonds, deposits, or in other miscellaneous assets that can generate different results with the involvement of some endogenous factors such as rate of return, inflation etc. To bring out the core investment factors determining pension fund growth, a stepwise regression technique was used on a dynamic panel data model. Moreover, to check the individual significance of the included variables in the model progressively, R2-change was observed. This study has found that the investment factors behave positively in high growth-oriented OECD economies and have a negative impact in low growth-oriented countries. Moreover, pension funds growth is slower due to market volatility in low-growth oriented economies. The study helps to know the utilization or investment factors that support the large asset-holding of financial-sector of OECD economies.
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Pension Funds Growth, Investment in Equity, Deposits, Investment on Bonds, Rate of Return, Inflation.
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(1) Arslan Qayyum
Assistant Professor, Department of Management Sciences, Institute of Business Management (IOBM), Karachi, Pakistan.
(2) Aniqa Arslan
Assistant Professor, Department of Management Sciences, Shaheed Benazir Bhutto University, Karachi, Pakistan.
(3) Kanwal Iqbal Khan
Assistant Professor, Institute of Business & Management, University of Engineering and Technology, Lahore, Punjab, Pakistan.
A Dynamic Resourced Based View on Firm's Life Cycle Stages and Capital Structure Theories: A Comparative Analysis of Developed and Emerging Asian Markets
‘Dynamic resource-based view’ is the major inspiration for this study, which signifies the changes in paths & patterns of the evolution in organizational capabilities during its LCS. Using the Dickinson’s (2011) firm’s LCS, the study determined diverse behavior of traditionally established explanatory variables across stages. For the purpose of analysis GMM model has been used, the study conducted a comparative analysis of developed and emerging markets in Asia. The results showed higher COE capital during introduction and decline stages in emerging markets implying trade-off theory and dynamic resource-based view. Study denies association between COE capital and market-to-book value in developed markets in line with market timing theory Its concluded that COE’s explanatory factors evolve across markets and firm’s LCS the explanatory power of the general model is much higher when the study included LCS in its main model justifying resource-based view.
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Firm Life Cycle Stages (FLCS), Cost of Equity Capital (COE), Market-to-Book Value, Asian Markets
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(1) Misbah Wadood
PhD Scholar, Department of Management Sciences, COMSATS University, Islamabad, Pakistan
(2) Hashim Khan
Assistant Professor, Department of Management Science, COMSATS University, Islamabad, Pakistan.
(3) Hassan Wadood
Lecturer, Umm Al Qura University, Makkah KSA.
The Importance of Social Media ads in Enhancing Brand Equity: A Study on Fast- Food Restaurants in Lahore
Social media platforms are used in many businesses for the marketing of their products and operations. The Lahore based restaurants are under observation of this research, and the impact of social media is highlighted in the meantime. The major objective of this study is to examine the impacts of social media in doing food business and how it influences their activities. A mix of qualitative and quantitative methods along with individual interviews was conducted. The results of the study showed that in the case of the restaurants business, social media has a positive impact and an increment in sales and flow of consumers. Facebook and Instagram are the major social media platforms used by restaurants. Word of mouth also plays a huge role.Nonetheless, social media provides cheap and accessible marketing to reach numerous people instantly.
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Social Media, Brand Equity, Fast-Food, Lahore, Pakistan, Facebook
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(1) Muhammad Shabi ul Hasnain
MPhil Scholar, School of Media and Communication Studies, University of Management and Technology, Lahore, Punjab, Pakistan
(2) Tanveer Hussain
Assistant Professor, School of Media and Communication Studies, University of Management and Technology, Lahore, Punjab, Pakistan
(3) Faiza Aslam
Research Associate, Office of Research Innovation and Commercialization, University of Management and Technology, Lahore, Punjab, Pakistan.
Language Policy and Planning in the Era of Globalization: Examining the Effects of Global Trends on National and Regional Language Policies and Educational Practices
This paper looks at how the language policy and planning (LPP) is affected by the globalization, with references on national and regional language policies and education. The study examines three policy situations through a conceptual, comparative, qualitative case study, which includes English-media expansion, official multilingualism and decentralized regional autonomy. The data was collected by reviewing policy documents, policy elites interviews, interviews with school administrators, interviews with teachers, classroom observations, and student/parent focus groups. The results indicate that such global tendencies as the Englishization, the increase of mobility, and digital language use influence policy discourse. Nonetheless, implementation is influenced by such challenges as lack of teacher training, resources to regional languages and mismatched assessment. Such informal multilingual practices as code-switching sprouted in classrooms. The research proposes a combination of planning, teacher training, and resource allocation in order to support equitable LPP and linguistic justice in the environment of globalization-related reforms.
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Language Policy, Language Planning, Globalization, English-Medium Instruction, Multilingual Education, Equity, Assessment Alignment
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(1) Irfan Ullah
Assistant Professor, Department of English, Abdul Wali Khan University Mardan, KP, Pakistan.
(2) Aqsa Goloona
BS Student, Department of English, Abdul Wali Khan University, Mardan, KP, Pakistan.
The Performance of Pakistani Equity Mutual Funds During Bull and Bear Market
This study examines equity mutual funds in Pakistan within bull and bear market contexts.It traces the evolution and significance of mutual funds, particularly their adoption by investors for retirement and financial goals. Despite a substantial presence of open-ended and closed-ended mutual funds, Pakistan's mutual fund industry remains comparatively small on a global scale. Equity mutual funds, focused on stocks, appeal to young investors seeking higher returns with moderate risk. These funds enable risk diversification and effective portfolio management by experienced professionals. While small investors benefit from equity funds, their performance is subject to public scrutiny due to robust regulatory oversight. This research sheds light on equity mutual funds' role in Pakistan's financial landscape, emphasizing their importance in providing accessible and diversified investment options for a range of investors.
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Pakistani Equity Mutual Funds, Bull and Bear Market, Stocks, Finance, Financial Goals
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(1) Muhammad Yousif
Ph.D. Scholar, Department of Business Administration, Ghazi University, Dera Ghazi Khan, Punjab, Pakistan.
(2) Muhammad Ziaullah
Associate Professor, Department of Business Administration, Ghazi University, Dera Ghazi Khan, Punjab, Pakistan.
(3) Muhammad Gulraiz Tariq
Ph.D. Scholar, Department of Business Administration, Ghazi University, Dera Ghazi Khan, Punjab, Pakistan.
