- Research Article
1
- 10.34260/jaebs.745
- Dec 30, 2023
- Journal of Applied Economics and Business Studies
- Muhammad Daniyal + 1 more
The dynamics of consumer price index (CPI) and its influencing factors lie at the heart of economic stability and growth. In this comprehensive research paper, we investigate the multifaceted relationship between consumer price index (CPI) and a set of critical independent variables, including trade (T), primary energy consumption (PEC), electricity generation (EG), exchange rate (ER), and urban population (UP). This research examines a cross-sectional sample of 20 European countries using panel ordinary OLS regression and fixed- and random-effects models for the period of 2000–2020. The findings of this research suggest that there is a notable inverse relationship between Primary Energy Consumption and CPI. The coefficient associated with Primary Energy Consumption carries a negative sign and demonstrates statistical significance at the 5% level and urban population, exchange rate and Electricity generation show positive significant impact on Inflation, while trade does not have any significant impact on inflation.
- Research Article
- 10.34260/jaebs.742
- Dec 30, 2023
- Journal of Applied Economics and Business Studies
- Muhammad Niaz Khan + 1 more
Abstract: This study investigates the volatility spillover between emerging South Asian equity markets and developed U.S. market. Specifically, the study examines the entire sample period and three sub-periods: pre-crisis, crisis, and post-Global Financial Crisis (GFC) periods in the emerging markets of Pakistan, India, and Sri Lanka, as well as the U.S. as developed stock market. The study analyses both unidirectional and bidirectional shock and volatility spillover among the markets to determine the direction of risk transmissions. The analysis utilizes a multivariate GARCH-BEKK model. The results indicate that volatility transmissions increased due to the GFC. Furthermore, the South Asian emerging markets exhibit shock and volatility spillover during the crisis period compared to the pre- and post-crisis periods. Additionally, the patterns of risk transmission were time-varying. These findings support the notion that market volatility increases during turbulent events, such as the Global Financial Crisis. The implications of these results are important for policymakers, investors, and researchers interested in international diversification and market efficiency within the studied markets especially during turbulent periods.
- Research Article
1
- 10.34260/jaebs.741
- Dec 30, 2023
- Journal of Applied Economics and Business Studies
- Muhammad Saeed Iqbal + 2 more
The study aims to determine consumers' perceptions of Islamic banking. Research should focus on identifying variables that influence bank selection, such as convenience, service quality, bank reputation, and religion. These factors affect Islamic finance acceptance. This study uses descriptive methodology to examine variables related to the current situation. This study surveyed 300 Islamic banking clients in Bahawalpur area of Punjab, Pakistan. This study indicates that religious conviction has a positive and significant effect on Islamic banking acceptability. This study contributes to the understanding of the factors influencing Islamic banking acceptability. In addition to reputation, there is a positive correlation between acceptance of Islamic banking and other characteristics (e.g., quality of service, ease of use, family, and friend relationships). Based on the findings of this research, Islamic banks will be in a position to identify variables that influence customer selection criteria. Further, research funding and time are limited, making it difficult to conduct broader research. It is particularly interesting that this study focuses on a region of Bahawalpur in the southern Punjab region; while recent studies have looked at entire nations, this study focuses on a region of southern Punjab. We will be able to determine how different variables influence Islamic banking acceptance based on the results of this study. Additionally, we will be able to assess the adaptations Islamic banks will need to make. The purpose of this study is to assist organizations in improving their operations as a means of increasing client loyalty. As a result of this research, the industry will be in a position to develop and implement effective strategies to operate in the southern Punjab region.
- Research Article
- 10.34260/jaebs.743
- Dec 30, 2023
- Journal of Applied Economics and Business Studies
- Emmanuel Olaniyi Dunmade + 3 more
The research investigated the influence of leadership’ style on the overall performance of NASCON Allied Industries Plc., Lagos, Nigeria. It therefore employed a structured questionnaire as the data collection instrument. This was with the sample size of 239, while the employed descriptive statistics involved simple percentages, and tables, as the utilized inferential statistics were Pearson Moment Correlation Matrix and regression analysis. The results of the research authenticated: (i) a considerable link between the type of leadership’s style in used by NASCON Allied Industries Plc. and the firm’s performance; and (ii) a great influence of the employed leadership style on the firm's performance in the organization. The study revealed that leadership style had a significant impact on organization’s performance. Hence, it was recommended that the organization should often adopt the best leadership’s style that fits its structure and policies as well as the Management By Objectives (MBO)’s principle to achieve both the organization's and the employees' goals.
- Research Article
- 10.34260/jaebs.744
- Dec 30, 2023
- Journal of Applied Economics and Business Studies
- Asad Khan + 1 more
Overqualification is emerging in today’s modern world, especially in COVID-19. This study was based on data collected from the Pakistan Agricultural Research Council, a renowned scientific and research organization in agriculture sector of Pakistan. A total of 250 Questionnaires were sent online using Google Forms and few were completed physically. The final sample size for data analysis was 214 after questionnaires collection and data cleaning. Results revealed that perceived over qualification has a moderate positive impact on the Job Satisfaction level and performance of employees. It is projected that perceived over qualification does not always have a negative impact on job outcomes and that the organizational environment plays an important role in mitigating the negative effects. Additionally, if an employee's job is effectively planned and the employees believes that they have career and growth chances in the organization, perceptions of over qualification may have a favorable impact on job outcomes.
- Research Article
1
- 10.34260/jaebs.734
- Sep 30, 2023
- Journal of Applied Economics and Business Studies
- Al-Harath Ateik + 4 more
This paper surveys the complex relationships between economic growth and Foreign Direct Investment (FDI) in South Asian countries, taking into account the specific conditions and environments that influence foreign investment in each country's economy. The study analyzes annual data from 1991-2020 focuses on India, Pakistan, and Bangladesh and uses co-integration and granger causality tests to determine that every country is at a distinct stage of outreach based on factors such as population, resources, and international trade. Results declare that FDI, economic development, and exports have robust relationship. The study concludes that creating a favorable environment for investors can increase foreign investment, leading to increase per capita GDP growth within the country
- Research Article
4
- 10.34260/jaebs.735
- Sep 30, 2023
- Journal of Applied Economics and Business Studies
- Muhammad Saeed Iqbal + 2 more
The most significant and theoretical link between credit risk and Islamic banks' profitability ratio (ROE) has been determined due to the special nature of Musharakah (cost-in-low) financing. This study aims to determine how credit risk affects Islamic banks' profitability ratio (ROE). Data was obtained from (2018-2022), from the yearly reports of selected Islamic banks in Pakistan. The data analysis found that measures for the end of Musharakah size financing (MSF) (0.0220) and Musharakah Non-Performing ratio (MNPR) (0.03706) significantly impact return on equity. Study results show a strong and positive correlation between ROE and the Musharakah Non-Performing Ratio (MNPR). Based on the findings, it was concluded that the economic support of Musharakah (diminishing) generally increases the return on equity (ROE) of Islamic banks. Therefore, this research suggests Islamic banks need to increase their support for Musharakah (diminishing) to overcome the high credit risk exposure. Based on the findings of this study, Islamic banks can design and implement policies to reduce credit risks while improving their financial performance. Furthermore, this research can help Islamic banks improve their profitability ratio by reducing credit risk.
- Research Article
- 10.34260/jaebs.733
- Sep 30, 2023
- Journal of Applied Economics and Business Studies
- Ali Waqar Ahmad Khan + 2 more
International Trade agreements are the source of trade creation or trade diversion. In the case of trade creation, it helps to rapid, sustainable economic development. This study assesses the trade creation and diversion effect for the notified trade agreements of Pakistan. This manuscript is based on an augmented gravity model with robust theoretical multilateral resistance terms. The model analyzes the impacts of trade agreements by using panel data over a period from 1962 to 2020. Making use of Poisson Pseudo maximum likelihood (PPML) family models with fixed effects, time-specific and dummy variables, it removes the issues of Jensen’s inequality E(lnXij ) ≠ lnE(Xij), heteroscedasticity, and zero-trade errors. This study's outcomes confirm that the trade agreements of Pakistan positively impact trade and exports. It can be concluded from this study that notified trade agreements of Pakistan are a source of trade creation. It further suggests that Pakistan should continue to pursue trade agreements with countries with complementary economies and focus on previously signed mutual agreements that are still not in force.
- Research Article
- 10.34260/jaebs.731
- Sep 30, 2023
- Journal of Applied Economics and Business Studies
- Rashid Rauf + 3 more
The impact of different types of volatility on the growth of Pakistani-listed non-financial firms is examined by using annual unbalanced panel data over the period 1988–2017. The differential effects of volatility conditional on firm size and age are also explored. The results indicate that the influence of firm volatility on firm growth is positive for small firms and negative for medium, large, young, and mature firms. The impact of market volatility is positive (negative) for small, young, and mature (large) firms. Industrial volatility has a negative impact on mature firms’ growth, but the impact on young, small, medium, and large firms is positive. Finally, the results indicate that the impact of macroeconomic volatility is positive for small firms but negative for large, young, and mature firms.
- Research Article
- 10.34260/jaebs.732
- Sep 30, 2023
- Journal of Applied Economics and Business Studies
- Sana Gul + 2 more
The aim of the study was to investigate the green finance disclosure and its effect on the financial performance of KSE-100 listed companies in Pakistan. Green finance disclosure, Tobin's Q, and several control variables such as firm age, size and leverage were the variables tested and evaluated using Generalized Least Squares regression (GLS). Secondary data was gathered from the annual reports of Pakistan's KSE-100 Listed Companies for five years, from 2015 to 2019. The period was chosen because the Securities and Exchange Commission of Pakistan (SECP) has established laws and regulations to oversee top management, company operations, and other activities to improve the financial performance of the companies during this period. The findings show that green finance disclosure positively impacts the financial performance of Pakistan's KSE-100 Listed Companies. Similarly, over time, there is considerable variance in the number of green finance disclosures among Pakistan's various industries (manufacturing and non-manufacturing). In addition, the control variables of company size, age, and leverage positively affect the financial performance of Pakistan's KSE-100 Listed Companies. The study's findings have recommendations for the legislators or regulators to obligate all publicly traded firms in Pakistan registered with the SECP to include green financing information in their annual reports. Recommendations for future research work regarding various problems were provided, and it has significant implications for the top management of publicly traded firms, the SECP, academia, regulatory bodies, researchers, and other stakeholders.