A Role of Corporate Governance and Firm’s Environmental Performance: A Moderating Role of Institutional Regulations

change has become one of the biggest issue across the globe as most countries have been bearing the consequences of this phenomenon on a global scale. Countries have been drafting environmental regulations to help mitigate the environmental pollution caused by climate change. Therefore, the implications of environmental policies in various sectors of the economy are dependent on state regulations. The main objective of this study is to investigate the impact of corporate governance on environmental performance. Furthermore, this study examines the impact of institutional regulations on the relationship of corporate governance and firms’ environmental performance. The data was collected from the top 120 manufacturing companies that are based in Pakistan, India, China and Bangladesh. The binary logit regression methodology was employed in this study. The results indicate that the attributes of corporate governance have a positive and significant impact on green performance. In addition, the results were also positive and significant on the moderating role of institutional regulation for corporate governance and firm performance. Hence, based on the empirical findings, this study recommends strict environmental institutional regulations to further enhance environmental performance

A Role of Corporate Governance and Firm’s Environmental Performance: A Moderating Role of Institutional Regulations

change has become one of the biggest issue across the globe as most countries have been bearing the consequences of this phenomenon on a global scale. Countries have been drafting environmental regulations to help mitigate the environmental pollution caused by climate change. Therefore, the implications of environmental policies in various sectors of the economy are dependent on state regulations. The main objective of this study is to investigate the impact of corporate governance on environmental performance. Furthermore, this study examines the impact of institutional regulations on the relationship of corporate governance and firms’ environmental performance. The data was collected from the top 120 manufacturing companies that are based in Pakistan, India, China and Bangladesh. The binary logit regression methodology was employed in this study. The results indicate that the attributes of corporate governance have a positive and significant impact on green performance. In addition, the results were also positive and significant on the moderating role of institutional regulation for corporate governance and firm performance. Hence, based on the empirical findings, this study recommends strict environmental institutional regulations to further enhance environmental performance

Determinants of Participatory Poverty: Evidence from Pakistan

This paper presents the empirical findings on the participatory poverty and its causes among rural household in Bahawalpur Division, Punjab (Pakistan). It is based on primary data collected through household survey. Multistage random sampling technique was used for data collection and 600 household from two districts of Bahawalpur division were selected. An ordinal Logit regression was used to estimate the factors affecting the participatory poverty of rural household. Participation in punchiat, relation with local governance, access to announce price by Government (for inputs) and access to support price by government (for outputs) were used as the proxy of participatory poverty. The estimates revealed that gender of head of household, household accessories, assets and property, average education of household, occupation of agriculture, household income and occupation of services reduce the participatory poverty among rural households. Keywords: Participatory Poverty Index; Support Price; Announce Price; Punchiat Participation; Agriculture Sector

The Impact of Social Capital on Educational Attainment: Evidence from Rural Areas of Pakistan

This study investigate the impact of social capital on child’s educational achievement and personality development by using primary data of Southern Punjab (Bahawalpur and Bahawalnagar District). Through multi stage cluster sampling a total of 600 hundred household head were selected as sample size for this study. The educational production function was used.in this study. This approach (educational achievement) was measured as output and other elements (Social capital) that have direct link with education was studied as inputs. The results indicate that while taken into account other variables, social capital resources have direct and indirect effects on their personality development and their educational achievement. Moreover, human and social capital do not exist in seclusion from each other. These two are connected in complex ways and to some extent, feed into each other. In other words, social capital promotes the development of human capital (education) and human capital take part in generating future human capital (education). This research helpful for educational policy makers in making better policies that are socially acceptable. Keywords: Social Capital, Educational attainment, southern Punjab, Pakistan

Assessing the Effect of Managerial Power on Firm Performance through the Perceptual Lens of Executive Remuneration

Executives or top management in any organization play the central role in designing firms’ policies including their own remuneration, investments and capital related decisions. Due to their prime importance, executives have greater access to all important information related to organizations. If such personals have greater control over the board or organization, it alludes as managerial power. Concisely, if managerial power is high then the management may misuse such information for their personal benefits. Therefore, considering the importance of managerial power, the current study aims to investigate the effects of managerial power and executive remuneration on firm performance. In order to empirically test the proposed relationships, the current study applied PLS-SEM approach by using the data of Sugar & Allied industry of Pakistan Stock Exchange for the year 2014. The results of the current study indicated that direct effect of managerial power on firm performance did not exist, however, the empirical findings showed that managerial power had a significant effect on executive remuneration. Furthermore, managerial power also significantly influenced the firm performance through the executive remuneration or remuneration mediated the relationship between managerial power and firm performance. Therefore, the current study suggests that firm should take necessary actions to reduce the managerial power and design the pay of top management in a way that any harmful action of managers against the firm’s wealth would significantly affect their own benefits

Assessing the Effect of Managerial Power on Firm Performance through the Perceptual Lens of Executive Remuneration

Executives or top management in any organization play the central role in designing firms’ policies including their own remuneration, investments and capital related decisions. Due to their prime importance, executives have greater access to all important information related to organizations. If such personals have greater control over the board or organization, it alludes as managerial power. Concisely, if managerial power is high then the management may misuse such information for their personal benefits. Therefore, considering the importance of managerial power, the current study aims to investigate the effects of managerial power and executive remuneration on firm performance. In order to empirically test the proposed relationships, the current study applied PLS-SEM approach by using the data of Sugar & Allied industry of Pakistan Stock Exchange for the year 2014. The results of the current study indicated that direct effect of managerial power on firm performance did not exist, however, the empirical findings showed that managerial power had a significant effect on executive remuneration. Furthermore, managerial power also significantly influenced the firm performance through the executive remuneration or remuneration mediated the relationship between managerial power and firm performance. Therefore, the current study suggests that firm should take necessary actions to reduce the managerial power and design the pay of top management in a way that any harmful action of managers against the firm’s wealth would significantly affect their own benefits

Determinants of Rural Poverty in Pakistan: A Micro Study

Poverty reduction is the most important agenda for the least developed countries such as Pakistan.In spite of the modest economic growth in Pakistan, rural poverty has not been reduced due to various reasons.Poverty is a complex phenomenon and it can be articulated in income and non-income components.This study identifies the factors affecting rural household poverty.The study was based on the primary data which was collected through the multi-stage cluster sampling from the rural areas of the Southern Punjab.The responses were collected through face-to-face interviews and the total two hundred heads of household were interviewed. The incidence of poverty was measured through the headcount ratio.A Logit model was used to analyze the relationship between the dependent and the independent variables.The education, health status within the households, the gender of the household head, female participation ratio in labor market and the access to market are inversely related to the household poverty in the said area, while person per room, the female-male ratio (workers), a distance of school from house and dependence ratio are positively related to poverty incidence.Poverty will be alleviated in rural areas of Pakistan if the government improves the basic infrastructure and the market access facilities as well as enhance the household empowerment of rural people

Impact of Social and Human Capital on Entrepreneurship: A study in Pakistani Prospective

Whether entrepreneurial business high performance is already there in business or it can be created through the process of opportunity recognition in the society. Based on these points it seems that entrepreneur must have some kind of knowledge comes through education, past experience, social contact, special source of information. This study is based on primary source of data which was collected through survey of entrepreneurs from the areas of Mardan, Peshawar, and Rawalpindi. The questionnaire approach was used for data collection and 70 respondents were selected for sample size. Result of this study revealed that the opportunities for their business success, so human capital (knowledge, skill, experience, education) and social capital (social contacts, social networks, social club) has positively affected the business rate of success.   Key words: Social Capital, Human Capital, Opportunities, Entrepreneurship, Pakistan

Impact of Major Political Events on Stock Market Returns of Pakistan

The purpose of this study is to check the impact of various political events on Karachi stock exchange. For this purpose nine major political events were taken under study during the period of 2007 to 2012. These events were Emergency rule of Musharaf, Benazir Bhutto Assassination, 2008 General Elections of Pakistan, Resignation of Musharaf, Restoration of Chief Justice of Pakistan, Abbotabad Operation, Salala Attack, De-seating of Prime Minister and 2012 Elections of USA. For the purpose of this study, these events were divided into two categories one is those events that caused changed in government policy and the other is those events that did not caused change in government policy. “t” statistics was used to check the significance of every event. Results showed that only those events affected the returns of Karachi stock exchange that caused change in government policy where those events which did not cause change in government policy had no effects on returns of Karachi stock exchange. Moreover it was also seen that Karachi stock exchange readjust itself very quickly i.e. effect of any news did not last for more than  two days. Keywords: Political Instability, Stock Market Returns, Financial Market, Economic Growt

Macroeconomic Indicators and Stock Market Development

The stock markets play a key role in both developing and advanced countries because it channelize idle money into productive investment and generate capital for businesses which boosts the economy up. Pakistan’s stock market is an emerging stock market. The main objective of the study is to check the contribution of macroeconomic indicator to the stock market development. In this study, an attempt is made to capture the macroeconomic determinants that effect more or less in stock market development. Karachi Stock Exchange (KSE) is taken as a representative stock exchange of Pakistan. This study considered Gross Domestic Saving (GDS), Money Supply (MS) and Foreign Remittances (FR) as explanatory variables and stock market development (SMD) takes as dependent variable. The study employed Phillips and Perron (PP) test for Stationarity. Finally the study utilized the ARDL to co-integration approach because it is more dominant and robust procedure to examine the short run and long run dynamic relationship. Autoregressive distributed lag (ARDL) and Error Correction Model used to find the relationship between the variables of selected econometric model. The ARDL to Co-integration results  showed that Gross domestic savings ,money supply positively contribute to the development of stock market in Pakistan in both short run and long run that are consistent with theoretical and conceptual framework and literature (See also; Raza et al., 2012; Adam and Tweneboah, 2009). Foreign remittances have insignificant effect in both short run and long run on stock market because most of the foreign remittances are used in consumption. CUSUM lines remained inside the critical bound at 5 percent significance level that guaranteed the stability of  model. Keywords: Stock Market development, Money Supply, Gross Domestic Saving, Foreign Remittance