UW Journal of Management Sciences

Mediating Role of Entrepreneurial Self-efficacy between Business Incubation Centre and Entrepreneurial Intention of Pakistani Students

Syed Muhammad Afrza Hassan Gillani, Jürgen Bode, Muhammad Ehsin — Wed, 28 Dec 2022 00:00:00 +0000

Purpose: The business incubation center is a buzzword in the academic world and a relatively new concept in public sector universities of Pakistan. Business Incubation center helps university students for developing entrepreneurship intention and decrease the unemployment rate. But many of the publicly funded incubation centers are unable to create an entrepreneurial intention in students therefore; this study develops to evaluate the impact of business incubation centers on entrepreneurial intention through entrepreneurial self-efficacy. This study is based on the resource-based view theory.

Design and Methodology: It has used random sampling and data has been collected from Government College University of Faisalabad and Punjab University Lahore Pakistan. Data is collected via questionnaires which were e-mailed to students, valid 166 responses were received. This study used Smart-PLS for data analysis of Structural Equation Modeling (SEM).

Findings: The result of the current study explains that the entrepreneurial intention of Pakistani university students is influenced by the business incubation center and entrepreneurial self-efficacy. There were three hypotheses of this study; the entire three hypotheses were accepted.

Implications: This study concludes that a business incubation center plays an important role in influencing university students’ entrepreneurial intention but is only possible if a business incubation center develops such strategies which increase the entrepreneurial self-efficacy of students.

Ownership Structure, Monitoring Cost and Agency Theory Perspective: Evidence from Pakistan Stock Exchange

Iram Iqbal, Shahab Ud Din, Naeem Akhtar — Wed, 28 Dec 2022 00:00:00 +0000

Purpose – The purpose of this study to investigate the association between ownership structure and monitoring cost in the presence of agency theory for Pakistani business environment. Additional the study also between firm performance and monitoring cost.

Research methodology – This study utilizes a sample of 97 companies listed on Pakistan stock exchange from the period of 2015-2019. Panel regression techniques is employed with fixed and random effect to estimate the association between pattern shareholdings and firm’s financial performance listed at Pakistan Stock Exchange (PSX).

Findings – This study reveals that foreign shareholdings has positive significant impact on the monitoring cost, while institutional, government and family shareholding are insignificant impact on monitoring cost in Pakistani institutional environment.

ownership, government and family ownership has not shown significant results

Limitations & Implications – The study mainly used the publically available date, hand collected from the annual reports of the sample companies. Therefore, sample size is small because data for certain variables was missing. In order to reduce the agency cost foreign shareholding should be decreased while employee shareholdings should be increased, as it will enhance commitment and motivation so productivity and performance will be enhanced.

Originality/Value – The present study will extend the body of existing literature on the corporate finance specifically the corporate governance literature by considering the monitoring cost, ownership structure and financial performance with respective an Asian emerging markets, more specifically Pakistan. The empirical findings of this study will provide guidelines to the policymakers and corporate managers to consider the quality of corporate governance with taking the corporate decisions, specifically ownership structure and agency cost.

Re-examining Capital Structure of State and Non-State Owned Enterprises in selected G-20 Countries: Developed Markets vs Emerging Markets

Muhammad Yusuf Amin, Faisal Sher, Sami ur Rahman — Wed, 28 Dec 2022 00:00:00 +0000

Purpose: In this article we explore how decisions on capital structure of enterprises are affected by ownership in selected G20 countries. This effect is also investigated across the level of economic development in selected countries.

Design and Methodology: Data on SOE and non-SOEs in these countries were selected from 2011 to 2015.This study employs ordinary least square and random effect methods, to investigate the effect of ownership on capital structure decisions in selected G20 countries and across the level economic development.

Findings: We determine that decisions on capital structure of an enterprise are effected significantly by its ownership structure and level of economic development. We find that in developed economies, state-owned enterprises are highly levered than non-state-owned peers, while the opposite is true in emerging economies. When the interaction between ownership structure and level of development is considered, state-owned enterprises in emerging economies have less leverage than their counterparts in developed countries.

Implications: We believe that our findings will benefit corporate management, financial regulators, and financial researchers. Furthermore, the capital structure decisions of SOEs and non-SOEs require investigation at different industrial levels, specifically in emerging markets.

The Nexus between Managerial Compensation and Performance: Evidence from Banking Sector in Pakistan

Faiza Komel, Syed Muhammad Ali Tarmizi, Majid Jamal Khan — Wed, 28 Dec 2022 00:00:00 +0000

Purpose: This study intends to investigate the relationship between bank performance and managerial compensation. The study is in aligned with the prior literature and adds an insight for the baking sector of Pakistan in this direction,

Design and Methodology: The study uses return on equity to gauge the bank performance and managerial compensation which includes the bonuses and total salary paid to CEO. For this purpose, a sample of twenty-eight banks for the period of twelve years i.e. 2009 to 2021 has been considered. Panel data estimation models have been employed for the purpose of analysis.

Findings: The findings of the study shows a positive relationship between the bank performance and CEO compensation. Our results are aligned with the agency theory and emphasis on market competitive salary for the CEO.

Implications: Our study complements the previously available literature that in order to minimize the agency problem, CEO should be paid adequately that impacted banks performance positively.

Service Recovery Strategies in Service Industry Affecting Consumer Forgiveness and Repurchase Intentions: Moderating Role of Online Brand Community Engagement

Uzma Noor, Tooba Israr, Zoia Khan — Wed, 28 Dec 2022 00:00:00 +0000

Purpose: This study investigated the impact of service recovery strategies;
namely apology (AP) and compensation (CP) on consumer forgiveness (CF)
as well as repurchase intention (RI). Online brand community engagement
(OBCE) was investigated as a moderator on the relationship between
recovery strategies and RI. Consumer forgiveness served as a mediator on the
relationship between service recovery strategies and RI.
Design and Methodology: A cross sectional study was designed. Data was
collected from faculty members and students of universities located in
Rawalpindi and Islamabad. The sample was selected by convenience
sampling; a questionnaire was sent to 1210 respondents. About 606
responses were received out of which the 426 usable responses were included
in the analysis. Data was analyzed by using AMOS and PROCESS.
Findings: The results have shown that the effect of apology on purchase
intention proved to be insignificant whereas the effect of compensation on
purchase intention was significant. The mediation role of consumer’s
forgiveness was also significant. The OBCE significantly moderated the
effect of CF on RI whereas its effect is insignificant for the direct
relationships of AP and CP with RI.
Implications: The findings provided useful insight for policymakers in
service sector organizations for planning. The purpose was to investigate how
service recovery strategies can influence the repurchase intention of
consumers in a service industry.

Impact of Social Media Usage and Brand Attitude on Purchase Intention in the Context of the Pakistani Mobile Market

Wasif Afzaal Taseer — Wed, 28 Dec 2022 00:00:00 +0000

Purpose: The purpose of the study is to gauge the impact of brand attitude and social media usage on the purchase intention of mobile phones in the context of the Pakistani market. (The study population was Rawalpindi/Islamabad and Wah cant whereas the sample size was 450)

Design/ Methodology: The research collected data about mobile phone user and their purchase intention during the COVID-19 period.

Findings: The findings indicate that the constructs of brand attitude (BA) and social media usage (SM) both show a positively significant relationship with purchase intention (PI).

Implications: The current research will facilitate mobile manufacturers to keep track of their sales indicators as well as to have a watchful eye on their competitors. Mobile phone users are increasing exponentially globally since the business norms are running on mobile phone, not to mention offices and education is now part of social media group.

Limitations: The study can be extended to other cities of Pakistan while including semi-urban areas to widen the scope of research in the future.

Exploring the nexus between Accounting Anomalies, Stock Returns, and Growth: A Study of KSE-100 Companies

Muhammad Haroon Rasheed, Tayyaba Zahid, Salma Sadiq — Wed, 28 Dec 2022 00:00:00 +0000

Purpose: Predicting stock movement is of vital interest to managers and investors. The study aims to validate a similar model by identifying accounting variables that significantly predict the stock return at Pakistan Stock Exchange (PSX).

Design and Methodology: The study utilized panel data extracted from the financial statements of nonfinancial firms included in the KSE-100 index from 2005 to 2020. A pooled regression model with a fixed effect for basic variables and a random effect for anomaly variables is used to test their impact on future stock returns.

Findings: The regression analysis indicates that there exists a significant impact of basic accounting variables in forecasting expected return, return yield and return growth. The results for anomaly variables also significantly predict expected return and yield but are unable to predict earning growth significantly.

Implications: The proposed model provides a tool for investors to take advantage of any mispricing existing in the stock market. The study statistically linked accounting anomaly variables with stock returns at Pakistan Stock Exchange. In a developing economy like Pakistan, where market mispricing is high this knowledge can be utilized by researchers, managers, and policymakers to foresee the direction of the business sector in Pakistan.

Examining Relationship between HR Value creation strategies and Organizational Performance: Evidence from banking sector of Pakistan

Naveed Iqbal, Muhammad Waseem, Naveed Farooq — Wed, 28 Dec 2022 00:00:00 +0000

Purpose: Internal customer directly influences sustainable organizational performance. Recognizing the importance of relationship development, the organization adopted various strategies to create added value for the organization. The objective of this study is to analyse the impact of administrative innovation, HR service quality, and downward integration and trust enhancement strategies on organizational performance.

Design and Methodology: A quantitative methodology was adopted by using numerical methods and statistical tools to collect and analyse the data for this study. Data was collected from 323 mangers of commercial banks through structured questionnaire to evaluate the relationship between HRM strategies and organizational performance.

Findings: This study found, by analyzing manager’s perception of commercial banks through PLS-SEM, that administrative innovation and trust enhancement are the key strategies for improving organizational performance.

Implications: This study provides valuable information for HR practitioner about how relationship enhancement strategies influences organizational performance.

Behavior Modification Interventions and Training Effectiveness in Higher Education's Training Institutes

Munawar Khan, Wali Rahman, Muhammad Saqib Anjum Lughmani — Wed, 28 Dec 2022 00:00:00 +0000

Purpose: The purpose of this study is look into the role of behavior modification interventions (training needs assessment, employee's commitment, employee learning, employee's motivation—as independent variables—and training framing as moderator, on training effectiveness) in the public sector training institutes of higher education of Khyber Pakhtunkhwa, Pakistan.

Design and Methodology: A total of 323 respondents of higher education departments working in BPS-17 and above who have completed training programs in these public sector organizations has been taken as sample. For data analysis, SPSS (for descriptive statistics) and structural equation modeling (for confirmatory factor analyses for both the measurement model as well as structural models) have been employed.

Findings: Results showed that TNA, employee learning, and commitment are positively associated with training effectiveness, while the empirical did not support the theoretical association of employees' motivation with training effectiveness. Similarly, training framing was found a good moderator between the association of TNA, employee learning, and employee commitment. However, training framing did not find to play the moderating role between employee motivation and training effectiveness.

Implications: The results are expected to be helpful for practitioners, policymakers, administrators, and decision-makers by taking steps to enhance training transfer and effectiveness. A longitudinal study with qualitative data collection may unfold some aspects of the association.

Impact of Firm Financial Ratios on Financial Distress: Moderating Role of Corporate Social Responsibility

Asad Ali, Syed Muhammad Ahmad Hassan Gillani, Ahsan Riaz — Wed, 28 Dec 2022 00:00:00 +0000

Purpose: Corporations fall into financial distress or even go into bankruptcy due to many reasons; financial factors are one of the most important factors for financial distress. In previous literature, this element is ignored that those companies are engaged in social activities. Therefore, this study invested the moderating effect of CSR actives.

Design and Methodology: This research focuses on non-financial companies that are listed on the Pakistan Stock Exchange (PSX). This study is quantitative and it deals with secondary data. This comprises data from the year 2012 to 2021. Descriptive statistics, correlation analysis, ANOVA, multiple logistic regressions, and multiple moderated logistic regressions are applied.

Findings: In the overall sample, liquidity, profitability, and activity are found significant and leverage are insignificant at firm-level financial variables. Moreover, CSR only moderates the relationship liquidity and financial distress at 10% level of significance but not moderated with other financial ratios.

Implications and Future Direction: The study's findings will help financial institutions evaluate financial distress and estimate minimum capital requirements to lower the cost of financial risk. The most important limitation lies, in this study is that it only includes non-financial firms listed on the Pakistan Stock Exchange, this study measured CSR as a quantitative approach by measuring the CSR spending ratio. However, future research may also use a qualitative approach (CSR index) for better CSR measurement.

Impact of Behavioral Biases on Manager’s Investment Decision-Making Process with Moderating Effect of Financial Literacy

Hafiz Muhammad Waqar, Bushra Zulfiqar, Munawar Hussain — Wed, 28 Dec 2022 00:00:00 +0000

Purpose: This study examines the impact of behavioural biases such as Overconfidence, representativeness, and Self-attribution on managers’ investment decisions by using financial literacy as a moderator for the banking sector existing in less developed market Pakistan. The study used the financial literacy moderating factor.

Design and Methodology: The data was collected through questionnaires. The population of this study consists of managers from the banking sector of Pakistan. The sample size consists of 200 respondent managers from different banks. The study used a descriptive summary, Structure Equation Model (SEM) technique, and Confirmatory Factor Analysis (CFA) to capture the results. The study also used the Alpha test, Correlations matrix, simple and linear regression model, etc.

Findings: Findings of this study show that factors of Overconfidence, Representativeness, and Self-attribution have a significant relationship with Managers' Investment Decisions in less developed markets in Pakistan. The study is implacable for managers, researchers, investors, other policymakers, etc.

Implications: The study is implacable for managers, researchers, students, investors, other policymakers, etc. This study is implacable for the managers of the financial sector to make their investment decisions without biases. Finally, the study can be extended by adding some other behavioural biases, and also by making the markets survey for managers financial analysts, and investors’ investment decisions.

Leveraging Brand Equity through Brand Love and Brand Respect: A Conceptual Extension through Lovemarks Theory

Faheem Ahmad Khan, Ammarah Sajid, Khuram Shafi — Wed, 28 Dec 2022 00:00:00 +0000

Purpose: In the twenty-first century, firms must continuously work on how to improve brand equity. This study applies the lovemarks theory to examine the direct relationships between brand love, brand respect, brand advocacy, and brand equity. The study also investigates the indirect relationship of brand advocacy between brand love and brand equity, and between brand respect and brand equity.

Design and Methodology:

Data was gathered from 350 smartphone users through a structured questionnaire adapted from the literature to test the model in the context of the smartphone industry by using the non-probability sampling method. The confirmatory factor analysis and structural equation technique (SEM) were evaluated using SPSS 20.0v and AMOS.

Findings: Results of the study revealed that meritoriously dealing with two elements of lovemarks i.e., brand love and brand respect is of paramount significance in building brand equity in the case of smartphone brands. The results indicate that brand love and brand respect directly affect brand equity while brand advocacy has a mediation impact between brand love and brand equity, between brand respect and brand equity.

Implications: This study added to the domain of branding literature by theoretically and empirically evaluating the antecedents of lovemarks theory in the context of smartphone brands. The paper has managerial implications for companies to spot crucial factors that may help them to maintain a sustainable competitive advantage through building brand equity and proposes significant aspects for managers to consider while developing strategies for consumers.