ISSN: 1998 - 4162

JISR - Management and Social Sciences & Economics Journal Contents

Volume 15, Number 2, July 2017



Dear Readers,


With great pleasure, we publish JISR- MSSE a bi-annual research journal in the field of Management Sciences, Social Sciences and Economics to contribute to the academia. The journal enjoys being recognized in the prestigious “Y” category since January 2016 by HEC and is striving to be upgraded to the even more prestigious “X” category in the coming issues. The multidisciplinary journal welcomes contributions by all people from the academia, be it professors or students. This issue is special in the sense that for the first time since inception we are at a stage to publish eleven papers due to the sheer numbers of papers being received. The current issue contains papers from diverse fields that contribute to the society in many different ways. The first paper attempts to investigate seven macroeconomic risk factors’ effect on fifty stock returns of Pakistani stock market for the time period of July 1998 to June

2014 respectively. The sensitivity coefficients of macro-economic risk variables are identified as market return, money supply, industrial production, and call money rate, term structure of interest rate, exchange rate and inflation. This study jointly estimates economic risk factors and also risk premium associated with these risk factors by employing extended arbitrage pricing theory (APT) model by applying non-linear seemingly unrelated regression. The innovation of each economic variable is used as risk factor and the study estimates the sensitivities of risk factors and the premium for risk using extended APT model.


On the other hand, the second paper explores how the banking sector of Pakistan has witnessed a notable transformation in its structure and business activities following the implementation of financial sector reforms since the early 1990s.  Specifically, the reforms helped transform a repressed financial sector into a market oriented and sound financial sector, predominantly owned and managed by the private sector. How these developments have impacted competition among the banks is still an open question.  This study attempts to answer this question with the application of a recent approach to measure competition: Boone indicator of competitiveness. This measure postulates that inefficient firms (banks) in a competitive environment are punished harshly, and there is an output reallocation from inefficient to efficient firms/banks. The third paper shows how the Asian management thinkers and academician have called for Asian management researchers to employ Asian thought and culture in research (Fang, 2010; Meyer, 2006; Zhang, Waldman, Han, & Li,

2015). In view of these scholarly calls, this research aimed at, firstly, validating the positive psychological capital construct within work settings of Pakistan; secondly, broadening the positive psychological capital construct through adding dimensions of wisdom and gratitude that are typified in the Asian collectivist culture with the purpose of augmenting organizational behavior theory and practice, specifically within Asia.


Moving further the fourth paper shows the relationship between environment degradation, economic development, financial development, energy consumption, electricity production and natural resource depletion by using Environmental Kuznets curve hypothesis in Pakistan with yearly data from 1976 to 2013. The ARDL bound test to co-integration and error correction model is applied to check the relationship among the variables. The results conclude that there is long run evidence of environmental Kuznets curve in Pakistan but short run evidence does not exist. Energy consumption and natural resource depletion degrade the environment quality in long run. Electricity production from hydroelectric source improves the environment quality both in long run and short run. While the fifth paper aims to compare the sociability and its impact on learner’s personality traits, in classroom and E-Learning settings to provide an insight for HRM decisions. We proposed that student’s sociability level differ between classroom and e-learning environments. We also identify that sociability is a good predictor for extroversion and openness to experience. Here the sixth paper aims to investigate the use of ARCH (autoregressive conditional heteroscedasticity) family models for forecasting volatility of four regional emerging stock markets i.e. KSE 100, BSE-SENSEX, DSE 20 and SSE Composite index. The ARCH, GARCH, EGARCH, TGARCH and PARCH models are used and the best model is selected on the basis of the Akaike information criterion (AIC) and Schwartz information criterion (SIC) over the sample period covering from January 1996 to December 2015.


On the other hand, the seventh paper Information asymmetry leads to moral hazard in commercial banks, as evidenced in the 2008 crisis. This study aims at analyzing the implications of risk disclosure practices of commercial banks on their risk-taking behavior in Pakistan. It also attempts at assessing the level of compliance for commercial banks with the specifications of Basel accord II under Pillar 3. For measuring disclosure level, a risk disclosure index is devised. The dependent variable i.e. risk-taking behavior is operationalized through portfolio risk. While the eighth paper is an attempt to explore the profitability of asset growth anomaly on Karachi Stock Exchange (KSE) by constructing deciles portfolios from Jan 2001-Dec 2015. The results support the existence of asset growth anomaly in KSE market. The use of Generalized Methods of Moments (GMM) proved that Capital Asset Pricing Model (CAPM), Fama-French (three and five factor) models are mis-specified models in case of KSE because they all botched to elucidate the cross-sectional variation in portfolios returns based on firm’s asset growth.


The ninth paper examines the impact of three business processes expenditures i.e. research & development (R&D), advertising and training & development (T&D) on firm’s perceived financial performance in developing country like Pakistan. Majority of the previous researches in this area have been done in developed countries so there is a need to conduct such a study in a developing country like Pakistan. The current study tries to make an in-depth investigation into the impact of R&D, advertisement and T&D on perceived financial performance of a firm. The sample consists of 200 respondents from two industries of manufacturing sector i.e. pharmaceutical and cement industry. While the tenth paper is a qualitative  investigation  that  applies  inductive  approach  that  is  conducted  through  six semi-structured interviews – analyzed through code book, protocols, and transcripts method, and one focus group session of eleven university students cum working professionals - analyzed via descriptive-narrative method.


The eleventh paper aims to investigate export determining factors for four neighboring countries namely China, India, Pakistan and Bangladesh. It is an empirical analysis based on the structural gravity model. The study employees a relatively new technique of panel data (PPML-Estimator) for the comparison between countries. The findings reveal that factors such as income, expenditure and geographical distance in all four countries are in line with the theoretical literature as well as consistent with gravity theory. While the final paper aims towards identification of the factors responsible for the Brand Switching (MNP) in GSM sector of Pakistan. This study was based on primary data and was designed in a manner that it inferred the current purpose of customer defection and their intention to switch from one service provider to other. Overall 184 responses were collected and data was analyzed by using multiple responses set and Logistics Regression. After analysis, it was found out that the service Quality and Value-Added services are the prime factors that are responsible for the customer defection from one service provider to the other.



Yours sincerely,


Dr. Muhammad Kashif,

Editor & In-Charge Publications, JISR,


February 14, 2018

DISCLAIMER: All views expressed in the journal are those of the authors and not necessarily reflect the policies or preferences of JISR-MSSE or SZABIST.