Journal SEISENSE Journal of Management-
SEISENSE Journal of Management, Volume 3, pp 73-88; doi:10.33215/sjom.v3i2.321
Purpose- Based on the ongoing unethical scandal in the organizations, this study aims to explain the relationship between ethical leaders and their followers’ ethical behavior by explaining the underlying mechanisms. Design/Methodology- Data were collected through a structured questionnaire from the employees working in companies that produce fast-moving consumer goods. Three hundred sixty-nine samples were taken to study the proposed relationships. Findings- Results showed ethical leaders positively influence followers. Perceptual and reflective moral attentiveness positively mediates between ethical leadership and ethical behavior of employees. Moral awareness negatively moderates between ethical leadership and followers’ ethical behavior via reflective moral attentiveness, whereas moral awareness does not moderate the relationship. Practical Implications- Following the call for determinants of ethical behavior, this study provides insights for the managers to foster ethical behavior at the workplace.
SEISENSE Journal of Management, Volume 3, pp 58-72; doi:10.33215/sjom.v3i2.319
Aim - This study aims to measure the level of entrepreneurship, professionalism, and leadership intention of the Z generation. This effort is to investigate whether the socio-demographic characteristics of the Z generation, such as gender, education level, work experience, family income level, the presence of entrepreneurs in the family, or the immediate vicinity, leading to significant differences on the levels of entrepreneurship, professionalism and leadership intention. Methodology – The simple random sampling method was used to collect data. A total of 563 questionnaires was collected for the study. The participants were mainly the students in high schools and vocational schools of higher education in the Adiyaman-Kahta district. SPSS 22.0 program was used to analyze the data set. Findings - Cronbach's alpha value of the scale of entrepreneurship, professionalism, and leadership intention was measured as 0.89. Moreover, non-parametric analysis methods were used to test the hypotheses of the study because the data did not show normal distribution (p
SEISENSE Journal of Management, Volume 3, pp 45-57; doi:10.33215/sjom.v3i2.308
Purpose - Leadership plays a decisive role in key organizational outcomes. To investigate the effects of leadership and its mechanism on organizational performance, this paper examined how transformational leadership impacts followers’ trust for improving operational and financial performance in the case of Vietnamese firms. Design/Methodology - This study used the Structural Equation Modeling to assess the correlation among the constructs based on using survey data of 285 employees at 60 manufacturing and service companies. Findings - The findings revealed that employees' trust in leadership acts as a mediating mechanism in the relationship between transformational leadership and organizational performance. The transformational leadership style of leaders has greater effects on financial performance, while employee’s trust has larger effects on operational performance. This study calls attention to the importance of raising employee trust to link transformational leadership and organizational performance. Practical and theoretical implications - From a practical point of view, the paper brings more knowledge and insights for CEO/managers on the right pathway to enhance organizational performance. The paper also provides theoretical initiatives on the leadership theory and the new pathway to promote operational and financial performance.
SEISENSE Journal of Management, Volume 3, pp 31-44; doi:10.33215/sjom.v3i2.292
Objective: The paper sought to investigate the role of an effective audit committee in controlling earnings management practices. Design / Methodology: A panel data sourced from the audited financial reports of firms listed at the Kenyan Nairobi Securities Exchange for the periods between 2004 and 2017 were analyzed using a panel regression model. Findings: Audit committee effectiveness proved an important monitoring mechanism for earnings management. The independence, Meeting frequency, and financial expertise of the audit committee evidenced a negative and significant effect on earnings management. Practical Implications: Firms need to ensure that their audit committees operate effectively. This is achieved through enhancing their independence, ensuring optimal meeting frequency, and a higher number of members with financial expertise for fewer earnings management. Originality: The paper suggests the ways through which audit committee effectiveness can be enhanced to reduce earnings management amid rampant global financial scandals.
SEISENSE Journal of Management, Volume 3, pp 14-30; doi:10.33215/sjom.v3i2.261
Purpose- It is complicated to efficiently manage the bank’s portfolio, simultaneously maximize returns and minimize risks while being subject to managerial and regulatory constraints. In the financial industry, the size of a bank is used to assist in capturing economies as well as diseconomies of scale. Design/Methodology- As in cases of most literature from finance, natural logarithms of banks' total assets were made use of to measure commercial banks’ size. The 43 commercial banking institutions having an official license from CBK by December 2017 were the target population of this study. The study analyzed Time-Series Cross-Sectional unbalanced secondary panel data obtained from all the 43 commercial banking institutions in Kenya for fifteen years ranging from 2003 to 2017. Findings- Study findings revealed a positive effect of bank size on ROE and ROA that was significant. Correlation analysis revealed a positive association of bank size on the financial performance of banks in Kenya, which was significant. Bank size had a significant moderating effect on the relationship of banks portfolio diversification and financial performance of banks in Kenya. Practical Implications- The findings on bank size insinuated that a higher size of entire asset of banks is most probable to accelerate the bank to diversify into feasible opportunities on investment, traverse more enhanced lines of business, increase capacity in market power and, produce increased value that boosts the firm to profit from economies of scale and wider scope and henceforth superior and increased financial performance.
SEISENSE Journal of Management, Volume 3, pp 1-13; doi:10.33215/sjom.v3i2.255
Purpose- The main aim of this study is to determine the role of ownership concentration and dividend policy on the firm performance of chemical sector firms of Pakistan. Design/Methodology- This research used the secondary data collected from the annual reports of the companies listed at the Karachi Stock Exchange (KSE). However, inclusion criteria are the 26 listed firms from 2012 to 2017, giving a total of 156 observations. This study used the Generalized Least Squares Model. Findings- The findings reveal that ownership concentration has a significant positive association with firm financial performance. This stated that larger shareholders could attribute to the alignment of managerial incentives with shareholder interests. They also monitor the team very effectively and efficiently. The dividend policy has a significant positive relationship with ROA. Leverage and tangibility have a significant negative relationship with firm performance. Practical Implications- These results potentially can be relevant for policymakers and academic research as well as also helpful for managers and policymakers.
SEISENSE Journal of Management, Volume 3, pp 64-77; doi:10.33215/sjom.v3i1.260
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
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
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
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.