Journal SEISENSE Journal of Management-
SEISENSE Journal of Management, Volume 3, pp 64-77; doi:10.33215/sjom.v3i1.260
Abstract:Purpose - This study examines the volatility spillovers in the presence of structural breaks with specific reference to South Asian Capital markets. The global financial crisis of 2007-2009 has compelled policymakers to realize that financial instability has the potential to threaten economic stability and growth; therefore, managing the financial crisis is inevitable. To manage the impact of financial crises, understanding the dynamics of volatility spillover across various markets is imperative. This study has investigated the possible emergence of structural breaks in risk patterns after global financial crises in south Asian markets. Methodology - Using the data from July 2002 to June 2016, employing the Exponential GARCH methodology. Findings - This study finds a significant volatility spillover after the financial crisis of 2007-09. Therefore, the existence of a structural break in the risk pattern of south Asian capital markets cannot be fully rejected. Policy Implications - This conclusion is of prime importance to policymakers in devising policy guidelines concerning financial crises.
SEISENSE Journal of Management, Volume 3, pp 47-63; doi:10.33215/sjom.v3i1.263
Abstract:Aim - Past studies support the importance of organizational justice and its impact on employees' work attitudes. There are many factors that affect the employees’ work attitude but their perceptions about organizational justice and support are significant factors. Many studies have been conducted to investigate the relationship between Organizational justice and trust but there is a lack of research to measure the mediating role of perceived support. This study examines the role of perceived support as a mediator between organizational justice and trust. Methodology - The sample of the study is 170 faculty members of public and private sector universities of Pakistan. A cross-sectional design with a standardized questionnaire is used. Findings - Results indicate that distributive, procedural and interactional justice is direct antecedents of organizational and supervisory trust with the demonstration perceived organizational support as a partial mediator between procedural justice and organizational trust. Distributive justice is related to organizational trust both directly and indirectly through perceived organizational support and supervisory trust. Finally, interactional justice is a direct and indirect predictor of supervisory trust through perceived supervisor support.
SEISENSE Journal of Management, Volume 3, pp 27-46; doi:10.33215/sjom.v3i1.274
Abstract:Purpose- Entrepreneurial Marketing (EM) research has progressed rapidly over the last decade due to its effectiveness in highly competitive markets and uncertain conditions. However, the theory development in the EM domain is inadequate as yet. Due to this, the higher education institutions are also using outdated curricula to teach EM, as the new theories contribute towards the development of curricula. Thus, to assist in upgrading the EM curricula, we have examined the theory development over the last decade in the domain of EM. Design/Methodology- A systematic and in-depth review and analysis of over a decade’s EM literature has been done. Findings- Five major yet specific gaps are identified, and accordingly, we have proposed future research directions.
SEISENSE Journal of Management, Volume 3, pp 15-26; doi:10.33215/sjom.v3i1.278
Abstract:Purpose: The literature on demutualization is confined to efficiency and social welfare issues. Little empirical literature exists on the effect of demutualization on listed firms. This study examines the impact of demutualization on the liquidity of listed firms’ stocks. Methodology: It empirically investigates how the liquidity of listed firms’ stocks is affected by demutualization. Analyzing data of 137 non-financial firms listed on the Pakistan Stock Exchange for 2005 to 2017, we employ fixed effect regression to test the hypotheses. Findings: We find that demutualization has significantly improved liquidity. We analyze all three dimensions of liquidity that are the trading activity, market impact, and transaction cost. We find that demutualization increases trading activity, improve market depth, and has reduced the transaction cost. Implications: Our findings suggest that demutualization is beneficial not only for listed firms but also for its shareholders as all three dimensions of liquidity are improved by demutualization. Stock exchanges that are not demutualized and are facing liquidity problem, can be improved by changing its structure from mutual to demutualized. Originality: Prior literature focuses on the impact of demutualization on the stock market or social welfare. There is scares research on the effect of demutualization of the listed firm. This study fills this gap by analyzing the impact of demutualization on listed firms' liquidity in a developing economy, such as Pakistan.
SEISENSE Journal of Management, Volume 3, pp 1-14; doi:10.33215/sjom.v3i1.272
Abstract:Purpose- Numerous studies have explored entrepreneurial marketing (EM) activities in the firms that are established for a few years, but the research exploring the EM activities and challenges, particularly during the start-up phase, is scant. To cover this wide gap, the current study explores in-depth the EM activities and EM challenges faced during the start-up phase by a graduate entrepreneur who has exposure to both marketing and entrepreneurship education and practical EM experiences. Design/Methodology- In-depth case study approach has been adopted to study an SME owned and managed successfully by a graduate entrepreneur. Findings- After rigorous data analysis, in addition to the currently known seven EM dimensions, this study has discovered a new EM dimension, i.e., ‘legitimation’. Moreover, the key EM challenges in emerging economies are also identified. Practical Implications- The results have guided future entrepreneurs regarding their investment decisions, and to the entrepreneurship education policymakers regarding pedagogical up-gradation.
SEISENSE Journal of Management, Volume 2, pp 65-77; doi:10.33215/sjom.v2i6.244
Abstract:Purpose- This research aims to examine the relationship between real earnings management (REM) and sticky Selling General and Administrative (SG&A) costs in the case of a developing economy. Design/Methodology- The study employed a purposive sampling method. Fifteen firms listed on Ghana stock exchange were selected for the study. Data from the period of 2005 to 20014 were collected. Findings- The study finds Ghanaian listed firm's SG&A cost to be sticky and also see these firms to manipulate earnings through REM. This study finds that REM through discretionary expenses and production cost increases sticky SG&A cost, whereas REM through cash flow reduces sticky SG&A cost. Overall, the results imply that REM exhibit sticky cost. Practical Implications- The study informs managers that cost is not only fixed or variable but also behaves asymmetrically. The understanding of this concept could help managers to implement strategies that will lower the cost of doing business. Also, since some managers deliberately make decisions that lead to real earnings management and sticky cost, we, therefore, believe that this research will be of importance to regulatory bodies, policymakers, investors, and other stakeholders.
SEISENSE Journal of Management, Volume 2, pp 49-64; doi:10.33215/sjom.v2i6.227
Abstract:Purpose: Understanding the mediating role of the adoption of financial innovations on the relationship behavioral factors and utilization of formal financial services was the main aim of this research. The behavioral factors examined were self-control, confidence and social proof. The study is premised on behavioral finance theories. Design/Methodology: The positivist approach and explanatory research designs were adopted to understand the relationships between the variables under investigation. A sample of 486 owners/managers of licensed micro-enterprises in Nairobi, Kenya were selected using stratified random sampling technique. Primary data was collected through a structured questionnaire. Hypotheses were tested using Hayes and Zhao approach for mediation analysis. Findings: The results showed that financial innovations mediated the relationship between each of the behavioral factors and financial inclusion, that is; self- control (β =.0941, ρ= .00), confidence; (β = .1019, ρ = .00) and social proof (β = .1036, ρ = .00). Practical implications: The study has brought into fore the mediating role of financial innovations on the relationship between the three behavioral factors and financial inclusion. Thus, practitioners are encouraged give due attention to behavioral factors and financial innovations in policy formulation and programs geared towards optimal utilization of financial services.
SEISENSE Journal of Management, Volume 2, pp 30-48; doi:10.33215/sjom.v2i6.233
Abstract:Purpose- Although previous papers have attempted to explore the determinants of financial inclusion, few studies have interrogated the role of innovativeness in financial addition. This study examines the moderating role of entrepreneur innovativeness on the relationship between strategic orientation and financial inclusion Design/Methodology - We used two indicators to measure financial inclusion; digital financial inclusion scale and traditional financial inclusion scale. Three proxies were used to measure strategic orientation; learning orientation, market orientation, and technology orientation. Survey data obtained from 634 women entrepreneurs was used, and the hypothesis was tested using moderated regression analysis. Findings - The empirical results supported the hypothesis that innovative entrepreneur moderates the relationship between strategic orientation and financial inclusion. In particular, the results indicated that at higher levels of entrepreneur innovativeness, learning orientation has a stronger effect on financial inclusion. Similarly, the results also indicated that at high levels of entrepreneur innovativeness, technology orientation affects financial inclusion. In contrast with the other findings showing a positive moderating effect, at higher levels of entrepreneur innovativeness, the impact of market orientation on financial inclusion is low. Practical Implications - The findings are useful to the government and practitioners for designing policies and training programs geared to increasing the level of financial inclusion among women Small and Medium Enterprises.
SEISENSE Journal of Management, Volume 2, pp 17-29; doi:10.33215/sjom.v2i6.217
Abstract:Purpose- The purpose of this study was to examine the effect of board education diversity on environmental accounting disclosure among firms listed in the Nairobi Security Exchange. Design/Methodology- The study adopted both explanatory and longitudinal research design. The target population comprised 65 listed firms at Nairobi Securities Exchange from 2008 to 2017. However, inclusion criteria were the 27 listed firms from 2008 to 2017, giving a total of 270 observations. A documentary analysis guide was used to collect secondary data. Findings- The findings showed that board education had a significant and positive impact on environmental accounting disclosure. The findings validate the human capital theory's proposition. Practical Implications- Firms listed at the Nairobi Securities Exchange ought to diffuse the education level of the board of directors to increase the level of environmental accounting disclosure. Besides, their boards should be well educated and experienced to enhance disclosure of environmental accounting.
SEISENSE Journal of Management, Volume 2, pp 1-16; doi:10.33215/sjom.v2i6.221
Abstract:Purpose - Following the resource dependence and optimism theory, the study explored whether Chief Executive Officer (CEO) optimism moderates the link between board leadership and firm innovation in the financial sector. Design/Methodology - 130 financial institutions in Kenya were surveyed using cross-sectional and explanatory designs. Hypothesis testing utilized both moderated hierarchical regression models and mod-graphs. Findings - The results revealed that the board member’s openness and independence positively influence firm innovation. The moderated hierarchical regression results and figures in the mod-graphs reveal that CEO optimism enhances the association between the board member’s openness, independence, and firm innovation. Practical Implications - The results suggested that for financial institutions to be innovative, board members should be open to each other in terms of the private ideas as well as being independent about decisions made to spur the growth of the firms. Additionally, such boards should appoint CEOs who are optimistic about being innovative.