Reviews of Management Sciences

Impact of Audit Quality on Real Earnings Management: Moderating Role of Corporate Governance

2022-12-02T10:41:58+00:00

Purpose:

This study aims to examine the effectiveness of audit quality in restricting earnings management in the presence of country’s governance system.

Methodology:

The data was collected from 195 Pakistani-based and 150 UK based non-financial companies. The sampling period is ten years from 2010 to 2019. To test the hypotheses, the Generalized Method of Moments was applied.

Findings:

The results showed that firms switch from accrual earnings management to real earnings management in developed economies which are characterized by strong governance mechanism. Moreover, the negative association between governance mechanism and earnings management is increased in the presence of Big-4 auditor.

Conclusion:

It is concluded that audit quality restricts the firms to use real earnings management especially in those countries where governance mechanism is strong.

Organizational Productivity: A Critical Analysis of the Impact of Employee Motivation

2022-11-29T14:01:52+00:00

Purpose:

The main objective of this research was to examine the importance of training and development in the workplace.

Methodology:

Several dimensions of employee performance were analyzed, including productivity, job satisfaction, employee satisfaction, employee commitment, and decision-making. An adopted five Likert scale questionnaire was adopted for the online data collection from 100 respondents from the telecommunication industry. Convenience sampling was used for sampling and the

PLS-SEM was the main technique for data analysis using smart PLS software.

Findings:

The results suggest that organizational performance and employee performance in the telecommunication sector in Pakistan increase if there is a significant relationship between employees and decision-making. Similarly, employees with a high level of job satisfaction and affective commitment will ultimately have a higher potential for productivity and career satisfaction.

Conclusions:

The study concluded that employee performance improves as teamwork increases. Teamwork within the company is very valuable; it directly affects the performance of employees. When an employee gets enough teamwork possibilities, his performance will automatically develop.

Comparative Study of Pair Trading Techniques in Pakistan’s Financial and Non-Financial Sector

2022-10-25T10:03:18+00:00

Purpose:

This study attempts to empirically investigate the pair trading performance of financial and non-financial firms in Pakistan.

Methodology:

Daily data from 2008 to 2017 was collected for nine years. Cointegration and the distance approach were the two major analytical techniques used to evaluate the profitability of pair trading. The financial and non-financial sectors of the Pakistan Stock Exchange were used to build the pairs.

Findings:

Results showed that the top 5 pairs of portfolios exhibited the highest average excess returns of 0.0698, and Jensen's alpha is 0.0947 for the top 5 pairs. All pairs of firms showed significant and positive risk-adjusted performance. In the non-financial sector, the Top 10 pairs of portfolios had the highest average excess returns of 0.0789, and Jensen's alpha under the co-integration method for non-financial firms for all pairs 5, 10, 15, and 20 of the portfolios is also substantial and positive for risk-adjusted performance, with 0.0046, 0.0618, 0.0577, and 0.0493, respectively. Finally, pair trading under both techniques showed profitability. However, the co-integration technique exhibited better performance than the distance method.

Conclusion:

The study concluded that both pair trading techniques, particularly the co-integration technique, exhibited profitable pair trading performance that can assist investors and fund managers to earn positive returns on their investments regardless of market direction.

Corporate Social Responsibility through Collaboration in the Supply Chain: Insights into a More Sustainable Economy

2023-01-22T07:42:51+00:00

Purpose

The purpose of this study is to explore and analyze corporate social responsibility (CSR) as a helpful tool in solving significant societal concerns in countries where there is a greater desire for social and economic growth, such as Pakistan.

Methodology

In order to examine the current issues on supply chain collaboration for sustainability, this paper used a triangulation research method. In order to determine indicators in a CSR-intensive environment, data, and literature, the energy sector publications on EUR-Lex, international and European official papers, and the online site of the European Commission data sources were analyzed in this study. The indicators were divided into groups based on their sources (sets of standards and guidelines, council frameworks, document series, tools, and comprehensive legislation), as well as their intended uses (financial, social, and environmental).

Findings

The findings state that supply chain collaboration completely fulfills CSR for a viable economy. It focuses on three leading fashion brands and assesses their impact using open-source data, past research, and their official websites. It also highlights how, in comparison to global corporations, Pakistani business satisfies their corporate social responsibility.

Conclusion

It is concluded that a supply chain can help companies minimize the environmental impact of their supply chain processes. Further, CSR is a part of the supply chain that helps businesses determine their social and economic responsibilities by focusing on environmental aspects to add to a more sustainable economy.