ISSN: 1998 - 4162

JISR - Management and Social Sciences & Economics Journal Contents

Volume 16, Number 1, January 2018


Editorial


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 Higher Education Commission (HEC) of Islamic Republic of Pakistan 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 now we have got indexed and abstracted in various agencies to increase the visibility of the scholarly work of research scholars.

 

The current issue contains eight papers and one case study from diverse fields that contribute to the society in many different ways. The first paper attempts to find out the impact of employees organizational commitment on readiness for change during the change process. The study was carried out among the teaching and non-teaching staff of Higher Education Institutions, (HEIs) of Karachi. The important theoretical contributions of the study is that the three-component model which has been empirically tested in various socio-economic settings in the Western context and in a Pakistani public sector organization may also be employed in the Higher education sector of Pakistan, which helps in understanding the change related behavior of the employees with respect to policy making and adaptability to the new and updated requirements of the academia including curriculum, assessment methodology and others. In the second paper authors endeavor to study the behavior of stock market investors in Karachi, Pakistan. There are numerous factors that affect investment behavior of an on investment behavior. The study first presents the theoretical background and a deep insight of behavioral finance. It was found that the demographic and behavioral factors are having significant impact on the investor sentiments that affect their investment decisions. Thus, it is concluded that there is an utmost need of introducing the concept of behavioral finance in Pakistan to make the people be able to control over their emotions to improve their decisions.

 

In the third paper, authors intended to explore the leadership styles with reference to profes- sional qualification of the secondary school teachers. This study is providing the direction to readers, students and creates a positive impact towards the professional qualification. It deter- mines values, culture, change and styles of leadership which is helpful for educational sector. The major objective of the study is to explore, leadership styles of heads with different profes- sional training. It is concluded that professional training has no effect on democratic, transfor- mational and laissez-fair leadership styles. Professional training has no contribution on leader- ship styles. The training effect is not instantly reflected in the leadership style of the heads. It is might be due to the reason that leadership styles, Democratic Style, Laissez-fair Style and Transformational Style are the portrayal of personal traits adopted through their administra- tive practices. Moving ahead to fourth paper, authors have tried to contribute in the literature of systemic risk by investigating the extent of financial distress injected by banks, financial services, and insurance firms in the financial system of Pakistan. Furthermore, the paper aims to investigate the empirical determinants of systemic risk. The systemic risk is calculated by using the Delta Conditional Value at Risk (ΔCoVaR) methodology. The results state that size of financial institution, the loan ratio, the leverage ratio, the tier1 ratio, the operating profit margin ratio appears positively and significantly related to the systemic risk of financial institutions. The identification of systemically important financial institutions and its empiri- cal determinants is important for devising the financial regulations and financial reforms.

 

The fifth paper covers the various aspects of CPEC. The China-Pakistan Economic Corridor (CPEC) is one of such partnership that will connect these two countries with Asia, Africa and Middle East. The CPEC agreement includes projects of energy, Gwadar port, highways, railways and others having total investment of 46 billion U.S $. In this study, we have exam- ined business articles, news articles, facts and figures under content analysis to test the poten- tial impact of CPEC on Pakistan’s trade, investment, energy, and infrastructure. We may conclude that at present CPEC has limited impact, but it will increase on completion of CPEC. We have also analyzed impact of CPEC on Pakistan Stock Market (PSX) by using idea of event study and have identified four events from start of CPEC (April 2015) to purchase of

40% share of Pakistan Stock Exchange (PSX) by China (December 2016). We established theoretically and practically that CPEC has positive impact on stock market. This finding is supported by practical occurrences that Morgan Stanley Capital International (MSCI) announced to include Pakistan index in Emerging Market Index and Bloomberg ranked Pakistan index as 5th best performing stock around the world in 2016.Overall the CPEC is game changer for the Pakistan economy and will support to China as well as to achieve its targets. The sixth paper is based on examining the impact of Advanced Manufacturing Tech- nology (ADMATECH) on Management accounting (MACCT) along with the impact of both of these variables i.e. ADMATECH and MACCT on company’s performance (CPF). Further the mediating role of MACCT system between ADMATECH and CPF was also analyzed. It was also found that the link between AMATECH and CPF was indirect via MACCT i.e. MACCT is a full mediator between ADMATECH and CPF. The outcomes of this research will assist managers of these companies in determining whether the usage of ADMATECH is beneficial to increase CPF, with the mediating role of MACCT system. Further this study could assist top management of manufacturing businesses towards technical alliance with ADMATECH manufacturers for designing and developing of products.

 

On the other hand, authors aims to determine the impact of authentic leadership on job satisfaction of healthcare staff with the mediating effect of affective organizational commit- ment in the seventh paper of this issue. The results supported the proposed hypotheses suggesting that there is a significant impact of authentic leadership on job satisfaction with complete mediation of affective organizational commitment. Implying that a committed, satisfied and engaged employee is an asset for any organizations; it will be a loss for any organization to loose such an employee. Senior management of healthcare organizations should aim to focus on training of leaders and managers so they can equip themselves with the skills and traits of authentic leadership; this will not only help organizations to retain quality human resource but will also help to enhance the positive work environment. In the eight paper of this issue, authors have assessed the impact of Social and Demographic Factors on Female Entrepreneurial Intention in Pakistan because women constitute 50% of the popula- tion of Pakistan. The results of Role model, Self-efficacy and Perception of Economic Oppor- tunities are positive and significant predictors of EIs among females. From Socio-Cultural Perceptions, Career Choice and News in Media have a negative and insignificant relation with EIs while, status and Respect perception has been found strong predictors of EIs among Pakistani females. All perceptions (age, education and occupation) have negative impact on female EIs. In order to promote female EIs, the Government of Pakistan has to play an instru- mental  role  in  promoting  entrepreneurial  environment  in  country.  In  this  connection, female-specific training programs, business support centers, promoting successful female entrepreneurs through print and electronic media are some common areas where GoP can work, and finally, making a conducive environment when females can run their business indecently.

 

In the last, a case study on Murhabahah in the field of Islamic Finance has been included. This case provides a detailed account of execution of murabahah financing for Small and Medium Enterprise (SME) dealing in general supplies. Murabahah is cost-plus sale, where the Islamic Bank purchased generals supplies from Lahore and Karachi markets and sold the same to the Small and Medium Enterprise (SME) in Peshawar at a cost-plus price receivable to the Bank in six months. The management of the bank scrutinised the client’s application for murabahah financing to mitigate different types of risk exposures such as late payments to suppliers in the past. In addition, a customised process flow was designed to ensure smooth flow of process in compliance with Shariah. The case reveals a pragmatic 42 steps long process of how muraba- hah implementation happens for SMEs in local market, which extend our understanding in terms of identifying micro processes that happened in the murabahah implementation, which are usually missed by the abstract theory on murabahah.

 

Your sincerely,

 

Dr. Muhammad Kashif

Editor, JISR-MSSE SZABIST







September 7, 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.