scholarly journals The Role of Financial Constraints in Business Environment; Evidence from Business Group Affiliated and Non-Affiliated Firms in Pakistan

2021 ◽  
Vol 9 (2) ◽  
pp. 34-60
Author(s):  
Saba Aslam ◽  
◽  
Muhammad Sohail ◽  
Keyword(s):  
Financial Constraints ◽  
Inverse Correlation ◽  
Cash Flows ◽  
Business Environment ◽  
Easy Access ◽  
Growth Opportunities ◽  
Return On Assets ◽  
Size Firm ◽  
The Relationship

The main purpose of this study is to investigate the relationship between Cash Flows, Growth Opportunities, Firm Size, Firm Age, Firm Performance, Investment, Financial constraints and Leverage between the B.G AFs and NAFs of Pakistan. Current study consists of the balanced panel data containing 86 B.G AFs vs. 90 NAFs of the Pakistan. This study covers the yearly data period from 2007 to 2017. The findings showed that the cash flows are positively correlated with the return on assets, investments, financial constraints, while leverage is negatively correlated with the financial constraints. The positive correlation between cash flows and return on asset is higher for the B.G AFs, which means the B.G AFs are more profitable than the NAFs. The correlation of cash flows with the investment and financial constraints is positive but lower for the B.G AFs, showing that AFs investment is less sensitive and less financially constrained than NAFs. The inverse correlation between leverage and financial constraints shows that the B.G AFs have easy access to the financial sources. The positive and higher correlation of growth opportunities with cash flows and return on assets shows that the AFs growth is higher than NAFs.

Leadership and Employee Motivation: Moderating Role of Gender

2016 ◽  
Vol 5 (1) ◽  
Author(s):  
Beena Prakash
Keyword(s):  
Transformational Leadership ◽  
Employee Motivation ◽  
Business Environment ◽  
Demand Pull ◽  
Logistics Services ◽  
And Gender ◽  
The Relationship ◽  
Core Issues ◽  
Moderating Role

With the present business environment which is creating a strong demand pull for quality and efficient logistics services, core issues are being gradually removed with time but HR issues are still neglected. Motivation can be the key process of boosting the morale of employees to encourage them to willingly give their best in accomplishing assigned tasks. During growth of any sector, dimensions of leadership can have great impact on employee motivation. This research paper analyzes impact of transformational leadership on employee motivation and moderating role of gender. The result shows significant positive correlation between transformational leadership and employee motivation and gender does moderate the relationship.

Do Financially Constrained Firms Earn Higher Returns than the Unconstrained Firms? A Comprehensive Evidence from Pakistan Stock Exchange

2020 ◽  
Keyword(s):  
Time Series ◽  
Asset Pricing ◽  
Capital Structure ◽  
Stock Returns ◽  
Financial Constraints ◽  
Stock Exchange ◽  
Cash Flows ◽  
Total Asset ◽  
Cash Holding ◽  
The Relationship

This paper examines the relationship between financial constraints and the stock returns explaining the pricing of stock through financially constrained and unconstrained firms in Pakistan. Three proxies; total assets, tangible to total assets and cash holding to total assets ratios) have been used for financial constraints and the study tried to investigate that either the investors are compensated for taking the extra risk or not in Pakistan Stock Exchange (PSX). We find that the financially constrained firms don’t earn higher returns when their capital structure is heavy with liquid assets and their cash flows are more than the unconstrained firms in PSX. Moreover, the time series results showed that the risk-adjusted returns of the most constrained firms give the mix and somewhat negative and significant and insignificant results for the Pakistani firms listed in PSX sorted based on tangible to total assets and Cash holding to total asset ratios. Keywords: Asset Pricing, Financial constraints, risk-adjusted performance of portfolios

scholarly journals IMPACT OF DIVIDEND PAYOUT ON FIRM’S PERFORMANCE UNDER LOW GROWTH OPPORTUNITIES

2021 ◽  
Vol 9 (3) ◽  
pp. 1156-1165
Author(s):  
Taymoor Ali ◽  
Muhammad Kashif Khurshid ◽  
Adnan Ali Chaudhary
Keyword(s):  
Stock Exchange ◽  
Manufacturing Sector ◽  
Secondary Data ◽  
Financial Statements ◽  
Manufacturing Firms ◽  
Growth Opportunities ◽  
Dividend Payout ◽  
Relationship Of ◽  
The Relationship

Purpose of the study: The objective of the study was to investigate the relationship of the dividend payout on a firm's performance under low growth opportunities from the manufacturing sector of Pakistan. Methodology: A sample of 251 firms out of 378 manufacturing firms listed at the Pakistan Stock Exchange (PSX), have been carefully chosen for the era of ten years from 2006 to 2015. The secondary data was obtained from the firm’s web financials and analysis of financial statements, published by the statistics department of the State Bank of Pakistan. For the persistence of investigation panel data (fixed effect) analyses were employed in this study. Main Findings: The fallouts of the analysis revealed that the dividend payout ratio has an insignificant relationship with the firm's performance in the low growth perspectives of the study. Applications of this study: The findings of the study are helpful for the financial managers of the firms facing low growth opportunities. Furthermore, the investors in capital markets can use the findings of this while investing. The originality of this study: The study focussed on the role of low growth opportunities while studying the nexus of dividend pay-out and the firm’s financial performance which inherits the novelty and originality of the study.

scholarly journals The Relationship Between Business Environment and Single Champion Enterprise Entrepreneurship

2022 ◽  
Vol 12 ◽  
Author(s):  
Chanti Wu ◽  
Jinjin Lin
Keyword(s):  
Financial Services ◽  
Business Environment ◽  
Financial Service ◽  
Market Environment ◽  
Multiple Resources ◽  
Configuration Theory ◽  
Market Driven ◽  
Innovation Type ◽  
The Relationship

What kind of business environment can produce high single champion enterprise entrepreneurship is a new issue for discussion in research on entrepreneurship. Based on institutional configuration theory and the fcQCA method, the present paper analyses the relationship between the business environment and single champion enterprise entrepreneurship from the perspective of configuration. This paper studies the role of the business environment in 80 case cities all over the country in promoting high single champion enterprise entrepreneurship and discusses three business environment configurations concerning high single champion enterprise entrepreneurship and two configurations concerning non-high single champion enterprise entrepreneurship. Three typical business environment element configurations can promote high single champion enterprise entrepreneurship, namely, the market innovation type dominated by multiple resources, the financial service–driven type assisted by resources, and the market-driven type led by financial services, which reflects the significance of financial services and the market environment.

scholarly journals Financial capital, constraints, partners, and performance: An empirical analysis of Indonesia SMEs

2021 ◽  
Vol 18 (2) ◽  
pp. 210
Author(s):  
I Wayan Widnyana ◽  
I Made Dauh Wijana ◽  
Almuntasir Almuntasir
Keyword(s):  
Financial Performance ◽  
Financial Constraints ◽  
Small And Medium Enterprises ◽  
Value Added ◽  
Financial Capital ◽  
Moderation Effect ◽  
And Performance ◽  
Medium Enterprises ◽  
The Relationship

Indonesia's small and medium enterprises (SMEs) are considered the backbone of the national economy. However, the fact that SMEs still contribute less to the national gross domestic product (GDP) in terms of value-added, need to be addressed. While previous studies mainly focused on financial (access) constraints as one of the major constraints faced by small enterprises which affect their growth and performances, this study aims to extend the relationship between capital and financial performance of Indonesia SMEs with the moderating effect of financial constraints and partners. This study is different from others as it uses a bigger panel dataset which is about 4.36 million SMEs in Indonesia and is the first to explore the role of financial partners comprehensively. Moreover, the panel regression model with geographic analysis unit uses as a data analysis method. The results of the study show that financial capital has a positive and significant effect on the financial performance of SMEs. Furthermore, while the moderation role of financial partners on the relationship between financial capital and financial performance of Indonesia SMEs was failed to prove, the negative moderation effect of financial constraints was able to prove in this study.

Corruption, Business Climate, and Economic Growth

2015 ◽  
pp. 1156-1179
Author(s):  
Harish C. Chandan
Keyword(s):  
Economic Growth ◽  
Political Institutions ◽  
Business Environment ◽  
Domestic Investment ◽  
Business Climate ◽  
Transparency International ◽  
Leadership Management ◽  
Economic Freedom Index ◽  
The Relationship

Corruption is globally pervasive. Defined as abuse of entrusted power for private gain (Transparency International, 2013), corruption represents a set of economic, social, cultural, and political practices that are secretive and rooted in greed, ambition, or quest for power. This chapter reviews causes of corruption including the macro- and micro-level determinants of corruption such as leadership, management, and organizational culture. Various subjective and objective measures of corruption are discussed. Transparency International's Corruption Perception Index (CPI) and Heritage Foundation's Economic Freedom Index (EFI) are reviewed. The World Bank's Business Environment and Enterprise Performance Survey (BEEPS), Doing Business Indicator (DBI), and World Bank Institute's Governance Indicator (WBI-GI) are also reviewed, as is the role of global anti-corruption agencies and various instruments. Additionally, the relationship between corruption and foreign domestic investment, economic growth, and economic and political institutions are considered, as are anti-corruption intervention strategies for corruption and business ethics training.

An Investigation to an Enabling Role of Knowledge Management Between Learning Organization and Organizational Learning

2011 ◽  
pp. 1579-1594
Author(s):  
Juin-Cherng Lu ◽  
Chia-Wen Tsai
Keyword(s):  
Knowledge Management ◽  
Organizational Learning ◽  
Learning Organization ◽  
Current Knowledge ◽  
Business Environment ◽  
High Tech ◽  
Management Processes ◽  
Exploratory Investigation ◽  
The Relationship

This chapter is an exploratory investigation of the relationship and interaction between the learning organization and organizational learning in terms of an enabling role of knowledge management. In the severe and dynamic business environment, organizations should respond quickly to their rivals and environment by transforming into a learning organization. A learning organization could provoke innovation and learning through its structure, task and process redesigns, and evermore adapt gradually toward the eventual goal of organizational learning. Therefore, the dynamic process between the learning organization and organizational learning is an important issue of current knowledge management and practice — that is, the enabling role of knowledge management could enhance the interaction between learning organization and organizational learning. Furthermore, the authors will explore the relationship and interaction between the learning organization and organizational learning in terms of knowledge management processes in business. Two cases, TSMC and Winbond, the semiconductor and high-tech firms in Taiwan, will be studied to illustrate the findings and insights for the study and the chapter.

Ethical values and bank performance: evidence from financial institutions in Malaysia

2020 ◽  
Vol 11 (1) ◽  
pp. 233-256
Author(s):  
Tuan Azma Fatiema Tuan Ibrahim ◽  
Hafiza Aishah Hashim ◽  
Akmalia Mohamad Ariff
Keyword(s):  
Banking Sector ◽  
Positive Association ◽  
Annual Reports ◽  
Bank Performance ◽  
Ethical Values ◽  
Return On Assets ◽  
Content Type ◽  
And Performance ◽  
The Relationship

Purpose The purpose of this study is to investigate the relationship between ethical values and performance in the context of the banking sector in Malaysia. Design/methodology/approach Based on the philanthropic model, this study posits that firms undertaking zakat and charity are ethical firms. Zakat disclosure index (ZDI) and charity disclosure index (CDI) were constructed to measure ethical values. This study hypothesises that ethical values are positively associated with bank performance. Ethical values (i.e. CDI and ZDI) and financial performance data (i.e. return on assets) were collected from the disclosures made in the annual reports of 50 banks for a period of five years (2010-2014). Findings A positive association was found between zakat disclosure and bank performance. The results indicate that higher zakat disclosure is associated with greater bank performance. However, no relationship was found between charity disclosure and bank performance. Research limitations/implications Considering the limitation of the index used in this study, other dimensions such as corporate governance, sustainability, products and environment can be considered in the development of index to measure ethical values in future studies. Originality/value This study offers additional explanation on the relationship between ethical values and performance by examining the role of zakat disclosures that characterize the unique aspects of Malaysian companies.

scholarly journals Mediating Role of Knowledge Management in the Relationship between Organizational Learning and Sustainable Organizational Performance

2020 ◽  
Vol 12 (23) ◽  
pp. 10061
Author(s):  
Mirna Kordab ◽  
Jurgita Raudeliūnienė ◽  
Ieva Meidutė-Kavaliauskienė
Keyword(s):  
Knowledge Management ◽  
Organizational Learning ◽  
Organizational Performance ◽  
Business Environment ◽  
Mediating Role ◽  
Knowledge Based ◽  
East Region ◽  
The Relationship ◽  
Consulting Companies

Organizations operating in the intensive knowledge-based sector seek efficient management approaches and sustainable development practices to perform efficiently in the dynamic business environment. Knowledge management practice and organizational learning are significant factors in order to achieve sustainable organizational performance in a rapidly changing business environment. Based on the scientific literature analysis, there is still a lack of evidence related to the mediating role of the whole knowledge management cycle, including the five knowledge management processes (knowledge acquisition, creation, storage, sharing, and application) in the relationship between organizational learning and sustainable organizational performance for organizations operating in intensive knowledge-based sectors. This study aimed to examine the impact of the whole knowledge management cycle on the relationship between organizational learning and sustainable organizational performance in intensive knowledge-based sectors, specifically the audit and consulting companies in the Middle East region. Systematic scientific literature analysis, expert evaluation (structured questionnaire), and structural equation modeling (SEM) technique were used to develop and verify the research model. Data was collected through a structured questionnaire distributed among auditing experts working in a knowledge-based sector—audit and consulting companies in the Middle East region. The research results supported the hypotheses stating that organizational learning positively affects knowledge acquisition, storage, sharing, application processes, and sustainable organizational performance. However, the results verified that organizational learning has an insignificant impact on the Middle Eastern audit and consulting companies’ knowledge creation process.

Intrapreneurship to engage employees: role of psychological capital

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jatin Pandey ◽  
Manish Gupta ◽  
Yusuf Hassan
Keyword(s):  
Work Engagement ◽  
Structural Equation ◽  
Online Survey ◽  
Psychological Capital ◽  
Business Environment ◽  
Content Type ◽  
Mediating Role ◽  
Survey Responses ◽  
The Relationship

PurposeIntrapreneurship is gaining traction in organizations to buckle up for the dynamic business environment. Scholars have argued that intrapreneurship increases positivity at work and helps employees attach themselves better with their job. However, empirical evidence suggests that these relationships do not exist. The objective of this paper is to examine the mediating role of psychological capital (PsyCap) in the relationship between intrapreneurship and work engagement.Design/methodology/approachData were collected through an online survey. Responses from 309 employees working in different industries in India were analysed. Structural equation modelling (SEM) was used to analyse the hypothesized relationships.FindingsThe results show that there exist positive relationships among intrapreneurship, psychological capital (PsyCap) and work engagement. Further, it was observed that the PsyCap partially mediates the relationship between intrapreneurship and work engagement.Practical implicationsManagers may not only encourage intrapreneurial behaviour in their organizations but also ensure that the employees are psychologically capable (high on PsyCap). It would enable the employees to engage themselves wholeheartedly into their work.Originality/valueTo the best of the authors' knowledge, this study is one of its kinds to relate intrapreneurship with PsyCap and work engagement.

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