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.

Analysis of Sectoral Energy Demand in Pakistan

2023-03-20T11:04:18+00:00

Purpose

This research aims to estimate the energy demand for different sectors, including commercial, industrial, residential, transportation, and agriculture. For this purpose, various factors affecting the demand for energy in each sector have been analyzed.

Methodology

The adopted methodology is box Jenkins a systematic approach of identification, estimation, diagnostic checks, and forecasting of the model. This model is appropriate for time series data of medium to long-term length.

Findings

The data analysis outcomes specified that Pakistan's energy demand mainly depends on five fuel types. Within each sector, the consumption of fuel varies. Results show that 86% of energy consumption share is held by transport oil, industrial gas, industrial coal, residential gas, and residential electricity.

Conclusion

The major issue in the energy sector is the demand-supply gap primarily caused by the gas and electricity deficit. Conclusively, sectoral demand increases in each sector where commercial, residential, and industrial energy demand has higher growth. Moreover, the price effect is negative for all variables except coal, making it a Giffen good

IMPACT OF FEMALE LABOR FORCE PARTICIPATION IN ECONOMIC DEVELOPMENT OF PAKISTAN

2023-04-22T17:19:28+00:00

Purpose

This paper tries to examine whether the labor force participation of the female population affects the growth of the economy.

Methodology

The sampling data was collected from the World Bank’s website from 1971 to 2018. The Johansen co-integration test and VECM model were used to examine the relationship between female labor force participation and economic development.

Findings

The result of the Johansen and Juselius Co-integration test showed the long-term relationship between Female Labor Force Participation and Economic Development. The finding also indicated that female labor force participation had a negative impact on GDP. The CUSUM stability test was used for the short-run stability adjustments. Results of the CUSUM stability test showed that the coefficients of ECM (-1) speed of adjustment were stable at a 5 percent significance level, there were no oscillations outside the critical level, and the CUSUM curve was above the origin line, which indicated the significance of our short-run dynamics.

Conclusion

The study concludes that female labor force participation has a significant negative impact on Pakistan’s GDP, this is due to societal and cultural norms as well as the religious dignity of women.

Spatial Analysis of Relative Poverty: A Case Study of Slum Areas of Karachi

2023-06-10T07:28:20+00:00

Purpose

This study aims to explore the reasons for the existence of relative poverty in Karachi, a metropolitan city in Pakistan.

Methodology

A self-administered survey was conducted on 375 households in eight, major slum areas in Karachi (Orangi Town, Manghopir, New Karachi, Surjani Town, Bangali Para Gulshan, Lyari, Malir, and Korangi). Logistic regression was used for the data analysis.

Findings

The results confirm that secondary education for males, the uneducated males, the bread-winning members, and children having no education significantly impacts the dependent variable, i.e., total family income. Whereas, tertiary education of children, secondary education of children, tertiary education of male households, and house possession have no impact on total family income. The result of Andrews and Hosmer-Leme confirms that the model is a good fit.

Conclusion

The study concludes that the basic cause of relative poverty is unequal access to education, a highly dependent population, and low-earning members. Unequal access to housing facilities is another significant factor that needs to be assessed.