Business Commons^™

Does Momentum Matter? Modeling Stock Returns Through Fama-French And Carhart Model For Pakistan Stock Exchange, Mirza Osama Bin Shahid, Abdurrahman Aleemi, Muhammad Asadullah

Business Review

Asset pricing models are widely applied for explaining variations in stock returns. The applicability of these models is tested on different markets for assessing different stock price anomalies. In this paper, Fama and French three-factor model and Carhart Model were applied to the KSE-100 Index, over the period of 2004 to 2019. Following the FF 3 factor methodology, we create a relatively large number of portfolios based on size, value, and momentum, whereas the existence of the momentum factor was checked through the Carhart model. The results indicate that, out of 25 portfolios, 15 were able to explain the variations …

Risk Spillover From World Energy Markets To Pakistan Agricultural Commodity Markets. An Application Of Dependence Switching Copula Model, Hira Saeed, Rukhsana Bibi, Muhammad Tahir

Business Review

This study aims to examine the risk spillover from world energy markets to Pakistan’s agricultural commodities market using a time-varying copulas model. It also analyzes the dependence structure between energy and agricultural markets. The results show commodities such as wheat has less volatile behavior and weak lower tail dependence in energy-agricultural commodity pairs. The world energy volatility index is more volatile as compared to Pakistan’s agricultural commodities markets. Wheat is the least volatile commodity while palmolien is most volatile. The normal copula is best fitted for all energy and commodity pairs at 1% level of significance. Student-t copula is the …

Factors Affecting Adoption Of Tiktok Among Students In The Dhaka City Area., Mahafizur R. Jim, Muhammad I. Alam

Business Review

This study investigates the factors affecting adoption of TikTok among the students in Dhaka city area. A structured survey questionnaire was developed through the survey tool, Google form and data were obtained from 529 respondents living in various locations of Dhaka city by an online survey method through using the social media platform, Facebook. Moreover, the multiple regression analysis was performed to test the research hypotheses. Results show that students perceive this app in a different way and do not consider this app as a great source of enjoyment. Moreover, they do not perceive this app as a decent media …

Dynamics Of Employee Motivation And Employee Performance In Banking Sector, Muhammad Shoaib Hassan

Business Review

Employee motivation in banking has become one of the most considerable issues as every firm wants to make optimistic usage of their available human resources motivating them to achieve boosted performance. The study aimed to investigate the employee motivation dynamics in Pakistan conventional banking sector for employee performance circulating an adopted questionnaire online, considering 180 respondents as the sample size using a convenience probability sampling technique with a valid response rate of 78.89%. The findings employing SEM analysis using Smart PLS3 revealed a positive impact of employee motivation training and intrinsic rewards on the performance of bank employees. Furthermore, the …

Linking Green Innovation, Corporate Environmental Performance With Financing Constraints: A Sustainable Transition Towards Environmental Protection, Syeda Fizza Abbas, Iqra Tariq, Fareeha Waseem

Business Review

Purpose: Accessing different sources of finance becomes difficult when companies fail to take action towards environmental protection. Motivated by the theoretical propositions of stakeholder theory, this research investigates the impact of green innovation (GI) and corporate environmental performance (CEP) on financing constraints (FC) in the context of the most polluting industries of an emerging economy.

Methodology: The sample is based on 33 companies from the cement, chemical and fertilizer sectors of Pakistan for the period of 2017 to 2020. For data analysis, random effects and VCE Robust regressions models have been employed to explore the link between GI, CEP and …

Behavioral Biases, Financial Literacy, And Investment Decision: A Case Of Individual Investors In Pakistan, Arslan Saleem, Muhammad Usman, Zahid Bashir

Business Review

This research dives into the interesting world of investment choices and analyses the influence that behavioural biases and financial literacy play in the process. The study uncovers the direct impact of behavioural biases such as anchoring, optimism bias, and loss aversion on investment decisions by using primary data from individual investors in the Lahore region. These individuals participated in the study. According to the findings of the study, having a solid understanding of finance can help mitigate the effects of cognitive biases and lessen the toll they take on investment choices. The study underscores the necessity for future research on …

Effects Of Electronic Word Of Mouth On The Purchase Intention Of Millennials (Gen Y) Of Pakistan: Mediating Role Of Brand Image And Perceived Quality, Maria Younus, Sarah Anjum

Business Review

Purpose:

The study strives to find out how the purchase intentions (PI) of millennials consumer in Pakistan are affected by electronic word-of-mouth impacts.

Design/methodology/approach

To fulfill that purpose, three EWOM determinants - quantity, quality, and valence are chosen. Whereas Brand image (BI) and perceived Quality (PQ) are taken as mediators. The paper adopts a Quantitative approach to survey 169 Karachi respondents. Inferential analysis of collected data was performed using PLS version 4.0. Structural equation modeling is also performed using Smart PLS version 4.0.

Findings

The results confirmed the proposed hypothesis that the quality, quantity, and valence of EWOM significantly influence …

Impact Of Supply Chain Robustness And Resilience On Firm Performance: A Perspective Of Pakistan Textile Industry, Aalyan Munir, Aamer Hanif, Nimra Afzal

Business Review

This study investigates the impact of supply chain resilience and robustness on firm performance and also examines the significance of supply chain risk management (SCRM) in minimizing the consequences of disruptions on supply chain performance in the context of the COVID-19 pandemic. Data was gathered using convenience sampling technique through a survey from management staff (n=409) working in textile companies operating in Pakistan. Using SPSS software for data analysis, this study proposes a mediation model where risk management practices are proposed as a mediator between supply chain resilience, robustness and firm performance. The findings highlight that supply chain resilience and …

Islamic Banks' Decomposed Financing And Industrial Output Growth In Pakistan, Sadia Yasmin, Mohammad Ayaz Dr

Business Review

Abstract

Finance is considered as "the lifeblood of an economy" and imperative to a country's growth and stability. However, this perception has been called into two propositions, "More finance more growth "and "Does too much finance harm economic growth”? Existing literature considered only a single indicator i.e. total financing, assuming all financing has the same effect on growth. Furthermore, these studies also overlooked the nonlinear dynamics of Islamic decomposed financing and sectoral growth. As the composition of every economic sector is different, therefore financing can impact differently. This gap is covered in this study by decomposing Islamic financing into Islamic …

Neuromarketing: A Bibliometric Perspective Of The Field, Saniya Fayaz, Raja Rub Nawaz

Business Review

With an increase in studies relating to consumer perceptions, behaviors, cognition and potential markets, researchers are trying to understand the science of neuromarketing and the copious possibilities it puts forth. The present reviews in the field of neuromarketing are often limited when it comes to the scope or the discussion of documents and further subjects. This serves as a limitation to the consolidative and theoretical implications in the field. The study addresses this theoretical and methodological gap by charting the bibliometric analysis using the citation, cooccurrence, annual productivity, collaborations and sources approaches by analyzing a total of 390 articles extracted …

Ipo Waiting Period In Pakistan, Tayyeba Zanib, Muhammad Zubair Mumtaz

Business Review

This study examined the IPO waiting period from offering to the first trading day listed on the Pakistan Stock Exchange from 1995 to 2018. We find that firms that float shares to the general public have passed through multiple layers of inspection by underwriters, auditors, institutional investors, and regulatory bodies. The waiting period of the unseasoned issue is an essential predictor of uncertainty associated with a firm. To test this proposition, we first determine the endogenous and exogenous factors that influence IPO waiting period. The results confirm that the firms offer price, percentage of shares after issuance of IPO, book …

Impact Of Capital Structure On Performance Of Microfinance Institutions, Rukhsana Bibi, Naveed Raza, Attiya Yasmin Javid

Business Review

Microfinance institutions play a crucial role in poverty alleviation and provide financial services to low-income households. Microfinance growth rate is quite high in Asia but an undesirable development is achieved due to high borrowing cost and inadequate reserves. For microfinance institutions, there is a need to determine a suitable mix of financing to stay sustainable. This study examines the impact of capital structure on the performance of microfinance institutions in Asia. Using a unique unbalanced panel data set of 253 microfinance institutions from 2000 to 2015, performance is measured in terms of sustainability, financial performance, social performance and efficiency. It …

A Better Model? Testing Of Fama And French Six-Factor Model In Pakistan, Mehak Younus

Business Review

This study examines the performance of the Fama and French six factor model and the alternative six-factor model in explaining anomalous return patterns using a broad sample of the Pakistani stock market from 2000 to 2017. This study is the first to test the applicability of these models in Pakistan and their performance in explaining anomalous returns. There are 11 anomalies taken, which proved to be significant in the Pakistani market. The GRS test is used with other time-series measures to check the power of the given models in explaining one-way sorted quintile portfolios. The results reveal that both models …

Engaging The Customers Through Social Mobile Application Experience, Nida Zaheer, Muhammad Rizwan

Business Review

This paper aims to investigate the customer experience and post purchase behavior in the mobile application environment. This study is experimental with a quantitative approach. Two hypothetical mobile apps were developed; social-focused and information-focused. Data was collected by surveying 400 online shoppers and, analyzed by employing SEM and multi-group analysis techniques using Amos. Results suggest that a mobile app that is socially focused enhances the customer experience and customer engagement behavior respectively. Next, the need for touch provides boundary conditions between customer experience and customer engagement behavior. Behavioral experience can be enhanced by improving online customer experience with the help …

Food Price Volatility And Household Welfare: A Case Study Of Major Cities Of Pakistan, Nigar Zehra, Ambreen Fatima

Business Review

The purpose of this paper is to find the impact of food price volatility on the welfare of urban households of Pakistan. Food price volatility in monthly prices of major food commodities for main cities of Pakistan is calculated through standard deviation method. Moreover, the study adopts the methodology provided by Alkire and Foster 2007, and Alkire and Santos 2010 to develop Household Deprived Welfare Index (DWI) for major cities of Pakistan. Following Deaton 1985, the study uses pseudo panel approach. Fixed Effect technique is applied to estimate the impact of volatility on household welfare. The results generated from pseudo …

Internal Corporate Governance And Bank Risk Taking Behavior: Evidence From Developed And Emerging Economies, Ghulam Subhani, Shumaila Zeb

Business Review

The study aims to evaluate the impact of board structure and ownership structure on bank risk taking behavior in developed and emerging countries. To fulfill this objective, the study used annual data of 100 large commercial banks for the period 2006-2017 from twelve countries. Zscore is used as the main proxy of bank risk taking behavior. Internal corporate governance is measured by board size, board independence, CEO power, gender diversity, state ownership and foreign ownership. The study controls the issues of endogeneity by applying a two-step generalized method of moments (GMM) econometric approach. The main findings of the study indicate …

Linking Online Business Education And Academic Excellence: Outbreak Of Covid-19 Pandemic, Muhammad Rafiq, Shumaila Naz, Saif Maqbool

Business Review

The outburst of COVID-19 epidemic has enforced the higher education sector to revamp customary mode of teaching and assessing students learning. This study is a portrayal of online education and intended to critically examine how online education during COVID-19 fostered a combination of favorable and unfavorable outcomes which might disrupt and redesign academic routine process. Data were collected from professors, associate professors and rectors affiliated with higher education system through focused group discussions and semi-structured interviews. The interpretivism paradigm analysis was performed to examine the data using qualitative methodology. This study delivers a comprehensive review of enduring online education mode …

Impact Of Ceo Overconfidence On Corporate Financing Decision With Mediating Role Of Risk Perception, Amina Batool, Tahira Awan, Sumayya Chughtai

Business Review

The purpose of this paper is to investigate the impact of managerial (Chief Executive Officer) overconfidence on corporate financing decision with the mediating role of risk perception. This study indicates that psychological factors and biases affect the decision making of human beings including top management. The research design of this research work is causal and primary data has been used to test the results of this study. Among all the companies listed on Pakistan Stock Exchange, researchers have selected top executives of 200 companies as a sample. E-Questionnaire has been used to collect the required data through LinkedIn and other …

Does Emotional Intelligence Impact Team Performance In Construction Projects? Exploring The Mediating Role Of Trust And Moderating Role Of Work Status, Ariba Abid, Aamer Hanif, Amna Khan

Business Review

Emotional intelligence (EI) is an essential part of the many types of intelligences an individual possesses. The outcome of interactions in personal life as well as within the organization depend upon how high or low the Emotional Quotient (EQ) is. Organizations, nowadays, specifically design tests for hiring people with higher EQ since the emotional intelligence of a team member leaves an impact on its performance. The major goal of this research is to investigate the relationship between emotional intelligence and team performance, as well as the impact of employee work status on these two. The research also examines the mediating …

Gold Vs. Psx Sectors During Political Uncertainties: An Event Study Analysis, Hafsa Rasheed, Habib Ahmad, Attiya Yasmin Javid

Business Review

Amplified uncertainties in economic, financial, and political environments across nations have created a dire need to search for safe investment options that could mitigate the losses faced by investors due to such uncertainties. So researchers and investment managers have started investigating alternative investment options like real assets, to cope with such risks. Pakistani investors require such investigations more critically because Pakistan is among one of the most politically unstable economies. Previous researches have widely reported gold to be a hedge and safe haven during various economic downturns, therefore, the current study investigates whether gold could also diversify the risk of …

Role Of Organizational Capital At Different Phases Of Business’S Life Cycle: A Study Of Psx Companies, Zahid Bashir, Ghulam Ali Bhatti, Sobia Arshad

Business Review

The goal of this study was to examine the association between Business Life Cycle phases and organizational capital using PSX index companies. Mainly, the study investigates the relationship of organizational capital phases during different phases of the life cycle and comparison with high and low organizational capital. To fulfill this objective data has been collected of 56 companies of PSX index companies with yearly observations ranging from 2011-2020. For estimation, a multinomial logistic model was used due to categories of the dependent variable. The results indicate that organizational capital is positively significant at the maturity phase but negatively significant at …

Impact Of Covid-19 On Sectoral Stock Prices: An Event Study Based On Us Stock Market, Nasir Nadeem, Ghulam Mujtaba Kayani, Imran Abbas Jadoon

Business Review

The impact of COVID-19 on stock prices of different United States economic sectors is examined using event study methodology. Results revealed that the first confirmed case in US on January 21, 2020 was underestimated by investors and did not disturb stock prices significantly. However, the first local transmission case on February 26, 2020 hit the stock market in the post event window. Due to this event, the stock prices of industries in energy, financials, industrials, real estate and utilities sectors declined but observed price increases in health care, information technology and telecom services industries. First “stay at home” order issued …

Relationship Between Ewom And Purchase Intention: Moderating Role Of Culture (Evidence From University Students Of Pakistan), Shaikh Obaidullah, Asad Shahbaz, Tariq Majeed

Business Review

This study is an attempt to find out the relationship between eWOM and Purchase Intention (PI) with the moderating role of culture among the varsities students in Khyber Pakhtunkhwa. For this purpose data was collected from business and management students of various public and private sector universities. The adopted version of constructs was used to obtain the data. The result indicates that the Consumer Review (CR), Brand Image (BI) and Source Credibility (SC) attributes of eWOM have a significant relationship with (PI), while Brand Equity (BE) shows an insignificant relationship with PI. Interestingly findings from a cultural perspective indicate no …

Bonds Duration And Covid-19: A Study On United Kingdom Conventional Gilts, Riffat Abdul Latif Mughal

Business Review

This article studies whether the government bonds portfolio developed based on bonds duration produces abnormal returns in London Stock Exchange fixed income market during the phase of double-dip recession and COVID-19. The sample consists of UK conventional gilts traded from February 2004 till February 2021. The daily data is obtained from Thomson Reuters / Refinitiv Eikon. For this study, the data is divided into two subsamples July 2009-December 2018 and December 2019-February 2021. The findings reveal that all the bonds produced abnormal returns during the complete sample and sub-sample period when returns of UK gilts 1 year maturity are kept …

Investment Behavior During Covid Pandemic: An Evidence From Emerging Asian Markets, Sana Tauseef

Business Review

This study investigates the investor behavior in Asian emerging markets during the COVID pandemic period and assesses the asymmetric patterns and the influence of global and regional return dynamics on local investor behavior. It uses daily firm-level data from January 2001 to December 2020 for nine Asian emerging countries: China, India, Indonesia, Korea, Malaysia, Pakistan, Philippines, Taiwan and Thailand to estimate the impact of extreme price movements, market liquidity and US and Chinese market returns on local return dispersions using a non-linear specification. The findings indicate that rational price behavior prevailed in all markets over the COVID period. Though herding …

The Integration And Efficiency Of Brics And Pakistan Stock Markets: An Analysis Using Asymmetric Cointegration And Mf-Dfa Approaches, Rukhsana Bibi, Kalsoom Akhtar, Naveed Raza

Business Review

This study examines the asymmetric cointegration and efficiency between Pakistan and BRICS equity markets using monthly data from October 1997 to September 2018. The results reveal that the Brazilian stock market is the most efficient during the global financial crisis. Threshold and momentum threshold autoregressive models (TAR and M.TAR) confirm the presence of a long-run relationship between BRICS and Pakistan stock markets, where the speed of negative shocks is higher and significant for Pakistan Russian, Pakistan South Africa stock market pair. This infers quick adjustment of stock prices to negative shocks (bad news) as compared to positive shocks (good news). …

Design Perception And Consumer-Brand Relationshipin Textile Apparel: Mediating Role Of Experiential Value And Moderating Role Of Openness To Experience, Rohail Jibran, Muhammad Ahmad Ur Rehman, Sadia Shaheen

Business Review

Pakistan's fashion and apparel market has shown comprehensive growth during the last decade. This paper aims to investigate the impact of design perception on consumer based brand equity and examines the mediating role of experiential value and moderating role of openness to experience. Data was collected from 210 consumers of textile apparel brands in Pakistan. Findings of the study reveal that there is a significant relationship between design perception and consumer based brand equity, experiential value mediates the relationship between design perception and consumer based brand equity. Furthermore, results reveal that the personality trait of openness to experience plays a …

Volatility Spillover Between Stock Market And Currency Market Of Pakistan In The Presence Of Structural Breaks, Muhammad Jamil, Hifsa Mobeen

Business Review

This study examines the volatility transmission between the currency market and the stock market of Pakistan in the presence of structural breaks. For this purpose, daily data from the stock market and currency market is analyzed. An empirical investigation is conducted using the bivariate EGARCH model and the test for multiple structural breaks developed by Bai and Perron (2003). This study analyses these markets with the inclusion of sudden changes. Results of the EGARCH model suggest that volatility spillover is positive and bidirectional between these markets of Pakistan.

Role Of Government Initiatives In Shaping Entrepreneurial Intentions: A Canonical Correlation Analysis, Ansar Waseem, Yasir Rashid, Ahmad Ahsan Akbar

Business Review

Although, governments employ different policies to boost entrepreneurial activities in a country, these initiatives would remain futile if they fail to inculcate entrepreneurial intentions among citizens. This study aims to find out how government initiatives shape the perception of its citizens about entrepreneurship. The main idea of this paper is to identify a correlation between government initiatives and entrepreneurial perception using Global Entrepreneurship Monitor data. This research uses the parameters of perceived opportunity, perceived capability, and entrepreneurial intention to correlate them with different government initiatives such as supportive and relevant policies, taxes related policies, government entrepreneurship programs, commercial and legal …

An Analysis Of The Asymmetric Effect Of Fiscal Policy On Economic Growth In Pakistan: Insights From Non-Linear Ardl, Ibrar Hussain, Muhammad Rafiq, Zahoor Khan

Business Review

This paper evaluates the current state of monetary and non-monetary rewards systems in place in the UK banking sector in an attempt to identify reasons for the preference of monetary rewards over non-monetary rewards. Data was collected from two banks, LLOYDS TSB and Royal Bank of Scotland. The selection of these two banks emanates from their recent bonus crises and the fact that they are both part nationalised, hence the need for a prudent reward system. Questionnaires were used to obtain data and the Evidence Based Reward Management (EBRM) methodology was used to highlight the effectiveness as well as the …