International Journal of Business and Management Sciences

NURTURING HIGH-IMPACT ENTREPRENEURSHIP THROUGH EQUITY FINANCING; EXPERIENCE IN SOUTH AFRICA, KENYA, AND UGANDA

2023-05-02T08:02:08+03:00

The article primarily explores the impact of equity finance mechanisms on high-impact entrepreneurship with a special interest in Venture capital (VC). SMEs contribute approximately 90% of all business and create 50% of employment opportunities globally, nonetheless, the portfolio of equity-financing instruments available to these firms in many developing countries remains underdeveloped. We specifically examine the contribution of equity capital as a natural pathway to nurturing high-impact companies to enable them positively to contribute to economic growth. The study adopted a quantile regression approach, to analyze a cross-country dataset for 61 Venture capital companies in South Africa, Kenya, and Uganda, with a portfolio of 327 firms. Our study provides evidence that the earlier SMEs get access to equity capital, the higher their productivity and growth. Additionally, there was a lack of knowledge from the entrepreneurs about the benefits of using equity capital to nurture and sustain SMEs’ growth over time. The study makes vital contributions to the ongoing debate about this topic. First, the article unveils the benefits of access to equity capital for high-impact companies in African nations. VC-funded firms are typically nurtured into well-known companies as VC investors fund risky high-impact companies where bank financing instruments are unreachable. Second, the study delivers new insights to entrepreneurs to expand their understanding of the choice of funding opportunities and VC investors’ expertise, which is essential to boost the finance structure of firms.

IMPACT OF QUALITY ATTRIBUTES ON HEDONIC PRICING OF CHICKEN MEAT

2023-06-12T14:18:53+03:00

Product pricing is vital for businesses and marketing managers as it affects consumer buying behavior and business performance. In a highly competitive market, it is essential to observe the factors that increase the profitability of a product. The available studies concentrated on estimating the shared aspects from the sellers' perspective instead of the end user. To fill the gap this study investigates the impact of different meat quality attributes on retail chicken prices from consumers' perspectives when they buy fresh chicken meat. The data was collected from household consumers of four major cities of Pakistan, i.e. Karachi, Lahore, Faisalabad, and Islamabad, using a well designed and pre-tested structured questionnaire. The present study applies revealed preference theory and estimates log-linear functional form to study the effects of fresh chicken meat attributes on its price. The findings shows that meat quality attributes such as place of purchase, hygiene, meat cuts (drumstick,chest piece, boneless and whole chicken), texture, juiciness, and organic(desi) chicken positively impact the price of fresh chicken meat. The results indicate that consumers are paying premium price for these quality attributes of chicken meat. The implications of the results have been discussed in the perspective of developing the business strategies for the chicken industry in Pakistan. Understanding product attributes communicate the consumer`s preference, which is valuable for producers in developing production strategies, cost management strategies, investment decisions, marketing programs, and policy making regarding the development of the poultry industry.

FORECASTING STOCK RETURNS: APPLICATION OF MACHINE LEARNING ALGORITHM TO PSX

2023-07-17T13:16:42+03:00

The Stock Exchange performance is reflector of financial health of economy, while prediction of stock returns considered to be a complex task. The stock returns are determined by many factors from company specific to the macroeconomic indicators and also dependent on behavioral factors associated with the investors sentiments. The emergence of Artificial Intelligence (AI) and Machine Learning (ML) have revolutionized the traditional statistical approaches to forecast returns. The Current study is an attempt to forecast stock returns using ML Algorithm “prophet” to analyze performance of the prediction model via comparison of forecasted returns with actual returns. The model is implemented and tested in emerging market stock returns where the returns are highly volatile. For the purpose of analysis, data of all the firms listed in Oil and Gas sector in PSX were selected w.e.f. 2012 to 2021.The data distributed in training and testing samples to forecast returns with prophet model using python. The model performance is evaluated with evaluation matrix of MAE, MSE and RMSE. The results of the study indicated that the OGDC stock has reported superior performance of ML algorithm to forecast returns with MAE 0.002, MSE 0.0001 and RMSE 0.0108. The 98% indicates that the Machine learning prophet model has greater ability to predict returns as the algorithm provides flexibility to capture trend, seasonality and holidays effect to forecast results according to the analyst requirements. The findings of study are useful for the fund Managers, investors and researchers to analyze trend and make optimal investment decisions.

EXAMINING THE INFLUENCE OF BRAND NOSTALGIA ON BRAND LOYALTY THROUGH THE MEDIATION OF BRAND ATTACHMENT

2023-08-10T13:02:05+03:00

Marketers have recognized the complexity encompassing the relationship between customers and the brands. The relationship between customers and brands cover various variables. However, certain crucial factors such as brand nostalgia, brand attachment, and brand loyalty have remained relatively unexplored in the current body of literature. These are few of the pivotal variables that need more research. Therefore, the primary objective of this study was to
examine the influence of brand nostalgia on brand loyalty through the mediating route of brand attachment. The study employed convenience sampling method to collect the data. The responses were gathered through questionnaires from 550 respondents from different cities of Pakistan. The study employed Smart PLS 3.0 for data analysis. The results revealed that brand nostalgia positively influenced brand attachment and brand loyalty and brand attachment significantly mediated the relationship between brand nostalgia and brand attachment. By introducing and empirically validating a research model that is based on brand nostalgia, brand attachment, and brand loyalty, this study makes a substantial contribution to the existing landscape of consumer-brand dynamics. Beyond its theoretical implications, the research holds practical significance as well. It provides valuable insights for marketers and practitioners striving to
cultivate stronger connections between customers and brands. Ultimately, the study uncovers the intricate mechanisms at play in the realm of branding, offering guidance for strategies aimed at bolstering both customer loyalty and brand attachment.

UNREVEALING GENDER DIFFERENCES; AN INVESTIGATION OF COUNTERPRODUCTIVE WORK BEHAVIOR AND EMOTIONAL INTELLIGENCE AMONG FACULTY OF EDUCATIONAL INSTITUTIONS IN SINDH

2023-08-11T20:13:09+03:00

Counterproductive work behavior (CWB) encompasses discretionary actions aimed at causing harm to organizations and individuals, hindering organizational objectives, and disrupting norms. This study examines the prevalence of CWB in academic staff during the COVID-19 pandemic, with a specific focus on gender differences in Sindh universities. We explored how negative behaviors such as aggression, rudeness, withdrawal, sabotage, theft, and absenteeism manifest in academic environments and whether they vary based on gender. A sample of academic staff (301) from multiple universities in Sindh participated in the study. Utilizing bootstrapping with 2000 bootstrap samples and 90% bias-corrected confidence intervals, we examined the significance of path coefficients and conducted a chi-square difference test and p-value analysis. SEM was developed for both male and female groups. Our findings indicate that the model was more suitable for females (R²= 0.14) compared to males (R²= 0.07) in explaining the variance in CWB. We detected significant gender differences in CWB, suggesting that females may exhibit higher levels of negative behaviors in the academic setting during the pandemic. Additionally, the study sheds light on the persistence of gender stereotypes and cultural biases in the workplace, even amidst the pandemic-induced changes in work arrangements. These findings have important implications for policymakers and organizations and highlight the need to address and support the well-being of male academic staff in Sindh universities.

CAN STOCK MARKET MISPRICING OR THE PRESENCE OF STOCK PRICE BUBBLE BE ANTICIPATED USING FUNDAMENTAL ANALYSIS? AN EVIDENCE FROM DEVELOPING ECONOMIES

2023-09-02T14:21:54+03:00

The scarcity of resources is not a new phenomenon and financial resources are further inadequate. Regardless of this fact stock market mispricing and bubbles are a continuing phenomenon. These have far-reaching consequences which penetrate deep and wide in the market causing loss of wealth to the investors. It has been surfaced that even efficiently working stock exchanges have went through this tragic event of bubble burst. Estimation of stock price returns to test the presence of abnormal hike is the crucial need of time. The correction of the mispricing of stocks cost a lot of money, from investors pocket and sometime result in public lending and government bailout. A sample of countries with the history of stock market mispricing, including Pakistan, China, India, Bangladesh, Turkey, Malaysia, Thailand, and Qatar, were selected for the analysis. Stock market data set from 1980 to 2020 was collected for this purpose. It has been observed that the stock price is comprised of two factors the rational (fundamental) and irrational factors. This study has used the ARDL approach to test the impact of fundamental factors on price. Nevertheless its effect on prices has been demonstrated to be inferior as compared to irrational factors such as herding behavior and noise trader effect. However, it is implied that fundamental analysis is eminent in the course of stock price estimation. The results of this study aims to aid the portfolio managers for better investment alternatives selection.

FISCAL POLICY RESPONSE TO COVID-19 PANDEMIC: CASE OF PAKISTAN

2023-07-17T13:08:38+03:00

This study aims to explain the macroeconomic and welfare impacts of changes in indirect taxes brought about as a response to COVID-19.We study if tax relief provided in federal budget of fiscal year 2020-21 provided any relief to the private enterprise and trade sector. Another effort in this study aims to study if production subsidies during first
wave of COVID-19 were able to effectively support firms in the agriculture sector. Using a PEP Single Country Recursive Dynamic CGE model, we simulate impact of changes in tax codes and production subsidies and explain five major results. First, out of all fiscal policy changes, those designed for manufacturing sector offer highest gains in real GDP and reduction in consumer prices (and increase in consumer welfare). Second, tax relief offered for services sector firms lead to highest investment gains. Third, while all simulations depicting changes in fiscal policy led to increases in exports, however this is also accompanied by an even higher increase in import demand. Fourth, we do see that consumption inequalities may have expanded as a result of the pandemic and fiscal policy responses. Finally, our qualitative assessment reveals how COVID-19 has led to widening of gender inequalities. Based on a structured public-private dialogue series (where results of this study were also presented), we offer policy recommendations which could help mitigate the challenges for both households and firms as a result of the pandemic.

INSTITUTIONAL QUALITY: THE HIDDEN ENGINE BEHIND FINANCIAL INNOVATION

2023-09-07T12:59:50+03:00

Regardless of the increased research on institutional quality and financial innovation, there remained a review gap in this string of knowledge. Thus, we have highlighted the gaps in the existing knowledge of financial innovation and institutional quality through systematic analysis of the literature review and used a meta-analysisprocedure, to sum up past quantitative studies on financial innovation and institutional quality to identify the direction and strength of the
relation. Our analyses include 553 types of research on institutional quality and financial innovation for systematic literature review and 36 quantitative types of research for meta-analysis from 2000 to 2022. By examining the relationship between financial innovation and institutional quality, we established a rounded picture of what prevailing empirical researchers have identified and addressed the contradictions and inconsistencies in the available literature. It is
acute given that the financial innovation and institutional quality nexus is still early. Thus, research on financial innovation and institutional quality is strong in some areas while weak in others. We find that institutional quality and financial innovation are positively correlated. We conclude that the knowledge has yet to develop that institutional quality matters for financial innovation vigorously. The study recommends improving institutional quality as a strategic action to foster financial innovation and enhance their innovation potential.

UNVEILING THE PATHWAY FROM AUTHENTIC LEADERSHIP TO EMPLOYEE WORK OUTCOMES: THE MEDIATING ROLE OF HARMONIOUS PASSION

2023-08-10T12:24:59+03:00

Now a day’s organization facing huge problems due to the negative behavior of the leader. Leader plays a pivotal role in the development of the organization. Overall organization growth and developmental process is based on the leader behavior. This research delves into the mechanism by which authentic leadership influences employee work engagement and knowledge sharing, examining the mediating role of harmonious passion. By using convenient sampling technique a sample of 340 employees spanning various industries, we utilized structural equation modeling to explore the connections among authentic leadership, harmonious passion, employee work engagement, and knowledge sharing. The outcomes illuminated a noteworthy positive correlation between authentic leadership and both employee work engagement and knowledge sharing. Additionally, harmonious passion emerged as a mediator between authentic leadership and employee work engagement and knowledge sharing. This underscores the influence of leaders who cultivate authenticity and trust, fostering a sense of passion for work among employees, ultimately enhancing their engagement and propensity to share knowledge. These revelations contribute to the expanding literature on authentic leadership and well-being within workplaces, underscoring the role of nurturing harmonious passion to bolster employee work engagement and knowledge sharing. The implications for leaders and organizations are examined, underscoring the importance of authentic leadership in cultivating a more vibrant and engaged workforce.

SUCCESS OF PAKISTANI SPECIAL ECONOMIC ZONES: INTERPLAY BETWEEN GOVERNMENT AND SOCIETY

2023-09-11T09:45:17+03:00

Governments establish Special Economic Zones (SEZs) to turbocharge job creation and economic development. These are
spatial areas having a legal status. Pakistan, following the footsteps of China, is working to establish many such zones. Their success, however, is not guaranteed because of the various challenges that have to be overcome: tailoring the concept to our own context; issues in implementation like dealing with politics, societal and governance challenges; question of their long-term success; and dealing with their unintended consequences. This study was carried out to understand how SEZs model adapted from China can work in Pakistan, and what unintended consequences will this create and how the government can mitigate them with an understanding of Pakistan’s societal and moral context so as to ensure sustainable and lasting results. We have used an interpretivist approach, conducting interviews with industrialists, zone managers, government officials as well as university researchers. Data was analyzed using a grounded theory QDA approach adapted from Chamaz. Themes derived from the analysis include: cultural norms and moral values especially work ethic and standards of morality; issues with understating the concept of SEZs; issues relates to policy, planning and implementation; issues related to bureaucracy and governance; and, requirements of making these zones successful,
especially decades needed to succeed, in contrast to our expectations of a quick harvest. Recommendations are related to contextualizing the concept; policy; governance; educating the society; and managing expectations related to the time needed to succeed.