Contributing role of regulatory compliance and Islamic operations in bank risk: evidence from Pakistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shahzad Akhtar ◽  
Haroon Hussain ◽  
Rana Yassir Hussain
Keyword(s):  
Negative Relationship ◽  
Regulatory Compliance ◽  
Bank Risk ◽  
Method Of Moment ◽  
Content Type ◽  
Direct And Indirect Impacts ◽  
Conventional Banks ◽  
Indirect Impacts ◽  
Generalized Method Of Moment

Purpose This study aims to estimate the regulatory compliance impact on the risk of banks operating in Pakistan. The direct and indirect regulatory compliance of conventional banks with Islamic operations in terms of risk from 2009 to 2017 are estimated. Design/methodology/approach This study used a two-step system generalized method of moment (GMM) (dynamic panel) to examine the relationship between regulatory compliance, Islamic operations and the bank risk and tested the direct and indirect impacts of regulatory compliance and Islamic operations on the said risk. Findings Regulatory compliance has a significant and positive relation with bank risk, whereas the Islamic bank operations have a significant and negative relationship. Thus, regulatory compliance creates pressure on banks, but the Islamic operations of conventional banks reduce this pressure in direct and indirect ways. Practical implications Per the policy of State Bank of Pakistan (SBP), banks shall pursue Islamic operations to reduce regulatory pressure and widen their scope. The results suggest that regulatory compliance creates pressure on bank risk irrespective of the type of the bank. Thus, the SBP should seek the appropriate measure for this occurrence. Originality/value To the best of the authors’ knowledge, this work is the very first study that has considered the unique Islamic operations of conventional banks and estimated its impact on risk. Moreover, this work examined two types of bank risk instead of employing stability and market measure. This research is also the first to implement a two-step system GMM for the methodology.

The impact of foreign direct investment on trade in Pakistan: the moderating role of terrorism

2020 ◽  
Vol 47 (5) ◽  
pp. 1137-1154
Author(s):  
Syed Hasanat Shah ◽  
Hafsa Hasnat ◽  
Delpachitra Sarath
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Deficit ◽  
Method Of Moment ◽  
Content Type ◽  
The Face ◽  
External Sector ◽  
Generalized Method Of Moment ◽  
The Impact

PurposePakistan suffered with the menace of terrorism for long and become a front line state in the “War on Terror”. Terrorism shattered Pakistan economy and rendered her external sector vulnerable to instability and uncertainties.Design/methodology/approachTherefore, using system generalized method of moment (GMM), this paper investigates the impact of foreign direct investment (FDI) on exports, imports and trade deficit in the face of unabated terrorism in Pakistan.FindingsThe findings of the paper suggest that as terrorism in Pakistan increased, FDI contribution to Pakistan exports decreased while FDI contribution to Pakistan imports significantly increased. Terrorism also disrupted the chain of local production and increased Pakistan reliance on imports. Thus terrorism widened Pakistan trade deficit of Pakistan and expose Pakistan to external imbalances.Originality/valueDespite rise in organized acts of terrorism and its adverse impact on various departments of economy, hardly any study bothers to check its impact on trade and investment nexus. This is the first study of its nature that looks deep down to understand how terrorism affects the relation of major economic variables.

How multiple large shareholders affect bank profitability under the dispersion and the coalition hypotheses? An insight from the MENA region

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rim Boussaada ◽  
Abdelaziz Hakimi
Keyword(s):  
Method Of Moment ◽  
Mena Region ◽  
Return On Assets ◽  
Bank Profitability ◽  
Content Type ◽  
Return On Equity ◽  
Large Shareholders ◽  
Conventional Banks ◽  
Generalized Method Of Moment ◽  
Ownership Composition

PurposeThe aim of this paper is to examine whether multiple large shareholders and their interactions affect bank profitability in the MENA region.Design/methodology/approachTo achieve this goal, we used a sample of conventional banks in the MENA region observed during the period 2004–2015. We performed the System Generalized Method of Moment as the empirical approach.FindingsEmpirical results indicate that under the dispersion hypothesis, multiple large shareholders (MLS) tend to reduce bank profitability for both return on assets (ROA) and return on equity (ROE). However, under the alignment of interests’ hypothesis, coalition between the first and the second largest shareholder increases bank profitability only for ROA. We also find that an additional large shareholder, beyond the two largest, reduces bank return equity.Originality/valueTo the best of our knowledge, to date, there is no study that investigates the effect of MLS and the bank profitability in the MENA region. Indeed, this study shows the importance of considering ownership composition among large shareholders in banking studies.

Impact of regulatory focus on security technostress and organizational outcomes: the moderating effect of security technostress inhibitors

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Inho Hwang ◽  
Sanghyun Kim ◽  
Carl Rebman
Keyword(s):  
Regulatory Focus ◽  
Structural Equation ◽  
Negative Relationship ◽  
Organizational Outcomes ◽  
Equation Model ◽  
Organizational Level ◽  
Moderating Effects ◽  
Content Type ◽  
Individual Personality

PurposeOrganizations invest in information security (IS) technology to be more competitive; however, implementing IS measures creates environmental conditions, such as overload uncertainty, and complexity, which can cause employees technostress, eventually resulting in poor security performance. This study seeks to contribute to the intersection of research on regulatory focus (promotion and prevention) as a type of individual personality traits, technostress, and IS.Design/methodology/approachA survey questionnaire was developed, collecting 346 responses from various organizations, which were analyzed using the structural equation model approach with AMOS 22.0 to test the proposed hypotheses.FindingsThe results indicate support for both the direct and moderating effects of security technostress inhibitors. Moreover, a negative relationship exists between promotion-focused employees and facilitators of security technostress, which negatively affects strains (organizational commitment and compliance intention).Practical implicationsOrganizations should develop various programs and establish a highly IS-aware environment to strengthen employees' behavior regarding IS. Furthermore, organizations should consider employees' focus types when engaging in efforts to minimize security technostress, as lowering technostress results in positive outcomes.Originality/valueIS management at the organizational level is directly related to employees' compliance with security rather than being a technical issue. Using the transaction theory perspective, this study seeks to enhance current research on employees' behavior, particularly focusing on the effect of individuals' personality types on IS. Moreover, this study theorizes the role of security technostress inhibitors for understanding employees' IS behaviors.

Impact of general trust on bank risk-taking: the moderating effect of confidence in banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Heba Masoud ◽  
Mohamed Albaity
Keyword(s):  
Risk Taking ◽  
Developing Economies ◽  
Negative Relationship ◽  
Developed Countries ◽  
Moderating Effect ◽  
Bank Risk ◽  
World Value Survey ◽  
Mena Region ◽  
Content Type ◽  
General Trust

PurposeThis study examines the effect of general trust (GT) and confidence in banks (CIB) on bank risk-taking. Besides, it explores the moderating role of CIB on the relationship between GT and bank risk-taking.Design/methodology/approachSecondary data was obtained from the World Value Survey, World Bank and BankFocus from 2011 to 2018. Two-step system GMM estimator was used to examine the links between the GT and CIB with bank risk-taking in MENA region.FindingsResults indicated that both GT and CIB negatively influenced bank risk-taking. Moreover, CIB weakened the negative relationship between GT and bank risk-taking. However, the results were different for MENA region as compared to the full sample.Originality/valueThe studies on the link between trust and bank risk-taking are either carried out on an international sample or using a developed economies sample. However, the authors believe that developing economies might exhibit different relationships due to cultural and structural differences present in developed countries. Besides, the authors believe that testing the moderating effect of CIB could shed more light on the differences between developing and developed countries.

Linking team-member exchange differentiation to team creativity

2020 ◽  
Vol 41 (2) ◽  
pp. 208-219
Author(s):  
Chao Chen ◽  
Xinmei Liu
Keyword(s):  
Negative Relationship ◽  
Moderated Mediation ◽  
Mediation Model ◽  
Team Creativity ◽  
Content Type ◽  
Mediating Role ◽  
Moderated Mediation Model ◽  
Team Member Exchange ◽  
Member Exchange

PurposeThe purpose of this paper is to examine the effect of team-member exchange (TMX) differentiation on team creativity by developing a moderated mediation model. The model focuses on the mediating role of team proactivity in linking TMX differentiation with team creativity and the moderating role of leader-member exchange (LMX) median in influencing the mediation.Design/methodology/approachA time-lagged field survey data from 331 employees and 68 team leaders in more than ten high-technology firms from Northern China was used to test the model.FindingsResults indicated that the negative relationship between TMX differentiation and team creativity was mediated by team proactivity. Moderated mediation analyses further revealed that team proactivity mediated the relationship between TMX differentiation and team creativity for only those teams with a low-LMX median.Originality/valueThe empirical study provides preliminary evidence of the mediating role of team proactivity in the negative relationship between TMX differentiation and team creativity. The moderated mediation model also extends the existing finding by showing that LMX quality can moderate the indirect impact of TMX differentiation on team creativity (via team proactivity).

Interactional justice and willingness to share tacit knowledge: perceived cost as a mediator, and respectful engagement as moderator

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bindu Gupta ◽  
Karen Yuan Wang ◽  
Wenjuan Cai
Keyword(s):  
Tacit Knowledge ◽  
Social Exchange ◽  
Negative Relationship ◽  
Interactional Justice ◽  
Content Type ◽  
Work Related ◽  
The Social ◽  
Tacit Knowledge Sharing ◽  
Practical Implications

PurposeManaging tacit knowledge effectively and efficiently is a huge challenge for organizations. Based on the social exchange and self-determination theories, this study aims to explore the role of social interactions in motivating employees' willingness to share tacit knowledge (WSTK).Design/methodology/approachThe study used a survey approach and collected data from 228 employees in service and manufacturing organizations.FindingsInteractional justice and respectful engagement are positively related to WSTK. The perceived cost of tacit knowledge sharing (CostTKS) partially mediates the relationship between interactional justice and WSTK. Respectful engagement moderates the negative relationship between interactional justice and the perceived CostTKS.Research limitations/implicationsThe study advances the understanding of the role of social interaction in facilitating employee WSTK by integrating the direct and intermediate relationships involving the effect of supervisor's interactional justice and peers' respectful engagement and employee perceived CostTKS on WSTK.Practical implicationsThe findings have important practical implications for organizations as these suggest how organizations can help tacit knowledge holders experience less negative and more supportive behaviors when they engage in voluntary TKS.Originality/valueThis study examines the effect of both vertical and horizontal work-related interactions on perceived CostTKS and sequentially on WSTK, thereby extending existing literature.

scholarly journals Managing Consumer Loyalty

2020 ◽  
Vol 11 (1) ◽  
pp. 21-47
Author(s):  
Shivani Saini ◽  
Jagwinder Singh
Keyword(s):  
Study Data ◽  
Service Firms ◽  
Consumer Loyalty ◽  
Consumer Experience ◽  
Direct And Indirect Impacts ◽  
Indirect Impacts ◽  
Service Groups ◽  
Positive Effect

A growing body of academic and practitioner literature has highlighted the role of consumer experience management in maintaining long-term relationships with consumers. However, related studies are still divergent and there is little empirical evidence available to support the positive effect of consumer experience management on attitudinal and behavioural loyalty. The present study aims to fill this gap by investigating the direct and indirect impacts of consumer experience efforts on attitudinal and behavioural loyalty. To conduct an empirical study, data was collected from consumers of three service firms: health, retail, and wellness. By means of AMOS17.0, using CFA and SEM techniques, the measurement and comparison of structural models was carried out to test the invariance across three service groups. This article has significant implications for academicians well as marketers of service firms.

scholarly journals Contactless hospitality in a post-Covid-19 world

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sima Rahimizhian ◽  
Foad Irani
Keyword(s):  
Survey Design ◽  
Mediating Effect ◽  
Physical Contact ◽  
Added Value ◽  
Online Questionnaire ◽  
Consumer Innovativeness ◽  
Content Type ◽  
Revisit Intention ◽  
Direct And Indirect Impacts ◽  
Indirect Impacts

PurposeThis study aims to investigate the mediating effect of consumer innovativeness in the relationship between tourism inclinations and revisit intention. This study focuses on the significance of innovative technologies that help to reduce physical contact and optimize operations and services to offer a direct added value to hospitality businesses and their customers.Design/methodology/approachThis study uses a self-reported survey design using an online questionnaire to collect data from randomly selected potential tourists. The survey was in English. Data collection was carried out from June to July 2020, and a valid sample of 272 responses was obtained for data analysis.FindingsThe data were analyzed using ADANCO software. The study suggested that tourism inclination has both direct and indirect impacts on revisit intention through innovativeness.Originality/valueThis study allows a deeper understanding of the importance of contactless and low laborer-interaction technologies that help hospitality industry to win back pandemic-sensitive customers once this outbreak is over. To do this, the mediating effect of consumer innovativeness on their intention to revisit a tourist destination post-Covid-19 was investigated.

Human resource managers as liaisons between firms and labour

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Michael O’Donnell ◽  
Sue Williamson ◽  
Arosha Adikaram ◽  
Meraiah Foley
Keyword(s):  
Human Resource ◽  
Regulatory Compliance ◽  
Negative Consequences ◽  
Incentive Payment ◽  
Data Set ◽  
Content Type ◽  
Hr Practices ◽  
Garment Factories ◽  
Hr Managers

Purpose The purpose of this paper is to explore how human resource (HR) managers in garment factories in a Sri Lankan export processing zone (EPZ) navigated the tension between their role as stewards of employee welfare and their role to maximise firm productivity in response to time and production pressures imposed by international buyers. Relatively little attention has been paid to the role of HR managers as liaisons between firms and labour. This omission is significant, given the importance of human resource management in the recruitment and retention of labour and the role of HR managers in organisational performance and regulatory compliance. Design/methodology/approach A qualitative approach was used based on interviews with 18 HR managers, factory managers and other key informants, and 63 factory workers from 12 firms in the Katunayake EPZ. The interviews and focus groups in English were transcribed and coded into themes arising from the literature and further developed from the transcripts. Initial codes were analysed to identify common themes across the data set. Findings HR managers were acutely aware of the competitive pressures facing the EPZ garment factories. While examples of company welfarism were evident, HR practices such as incentive payment systems and the management of employee absences reinforced a workplace environment of long hours, work intensification and occupational injury. Originality/value This paper goes some way towards filling the gap in our understanding of the roles played by HR managers in garment factories in the Global South, raising theoretical debates regarding the potential for HR managers in developing countries to distance themselves from the negative consequences of HR practices such as individual and team reward systems.

The performance implications of perceptual differences of dependence in marketing channels

2014 ◽  
Vol 26 (3) ◽  
pp. 344-364 ◽  
Author(s):  
Zhilin Yang ◽  
Fang Jia ◽  
Shaohan Cai
Keyword(s):  
Dyadic Relationship ◽  
Content Type ◽  
Supplier Performance ◽  
Perceptual Differences ◽  
Essential Questions ◽  
Unique Nature ◽  
Channel Performance ◽  
Direct And Indirect Impacts ◽  
Indirect Impacts ◽  
Dependence Relationship

Purpose – The purpose of this paper is to address two essential questions: do perceptual differences regarding dependence matter in determining channel performance, and if so, how? Design/methodology/approach – The paper conducted an empirical study of 347 cellular telephone supplier-retailer dyads in China. A questionnaire survey was employed. Findings – The results reveal that a retailer's perceptual difference of dependence exerts a significant effect on its evaluation of supplier performance only. Retailer trust partially mediates the effect of the perceptual differences on supplier performance and retailer performance. Therefore, the particular side of a dyadic relationship that researchers choose to study matters in an unbalanced dependence relationship. Practical implications – Managers, depending on their side, should pay close attention to perceptual differences and their consequences and deliberately employ different strategies to ensure effective channel management. Originality/value – Do differences in parties’ perceptions of dependence influence channel performance? If they do, how do these perceived differences exert direct and indirect impacts? By answering these questions, the authors contribute not only to an understanding of the unique nature of dyadic channel relationships but also to methodological notions about whether to study one side in a dyad.

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