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SALU-Commerce & Economics Review

Addressing investor decision-making behavior through overconfidence risk, ‎underdog bias, and risk propensity


Muhammad Asif Channa
Muhammad Salih Memon
Benazir Solangi


This study has been carried out to measure the ability of investors to face the level of risk as investors go beyond the risk level or investors have the ability to face the risk as overconfidence or underdog bias risk in relation to risk propensity. The study has
utilized a primary source of data collection from 184 investors who mostly invest in financial securities: “Pension / Provident Fund Management, Private Wealth Investment Private Equity, Hedge Fund Management, Equity Trading, Fund of Funds, Bond Trading, Stock Broking, and Insurance.” This study has inquired respondents to specify their funds’ present level of risk. 48% reported that they served in reasonable risk setting, 28% high-risk situation, 12% mixed risk perspective, and 12% in conservative perspective

An Exploratory Analysis of Corporate Governance Practices of Pakistan ‎International Airlines Corporation Limited (PIACL)‎


Khalid Hussain Abbasi
Sameena Khokhar
Ashique Jhatial
Najia Shaikh

The aim of this study is to explore how corporate governance impacts the performance of public sector organizations in Pakistan in particular PIACL. The study was carried out by conducting twenty in-depth interviews with the key informants in PIACL to find out factors behind the unsatisfactory performance of national flag carriers using the narrative analysis technique. Findings revealed that appointment of inappropriate persons in the BoD, political involvement in operational decision making which hinder merit-based decision-making in the corporation, as a result, there are wrong policies, unsound decision making, less transparent actions, and lose accountability practices cause poor performance. Corporation has been facing chronic issues like shortage of aircraft, huge financial losses, unavailability of spare parts on time, delay in flight take-offs, frequent development of technical faults in aircraft, conflicts between union with management are frequently reported in media and annual reports of the corporation. Implications of findings are discussed in the last section of the paper.

Assessment of entrepreneurial networking activities and perceived self-_efficacy towards entrepreneurial success


Bahadur Ali Soomro
Naimatullah Shah
Ashique Ali Lashari

In the present day, entrepreneurship has served as an appliance for socio-economic development and prosperity through entrepreneurial networking activities (ENAs) and perceived self-efficacy (PSE). The purpose of the present study is to examine ENA and PSE’s role in entrepreneurial success (ES) among Pakistan’s entrepreneurs. Based on vigorous literature, the hypotheses are developed to confirm through the cross-sectional data. The data are collected from the entrepreneurs who are doing business in the different provinces of Pakistan. A simple random technique is applied to gather the facts through a survey questionnaire. At the initial stage, 330 samples are collected in a raw shape. This yields a 66 percent response rate. After data cleaning and screening, 318 valid samples are employed for final estimation. Analysis of Moment Structures (AMOS) version 26.0 is applied to test the hypotheses. By utilizing the Structural Equation Modeling (SEM), the results emphasize a significant and positive impact of the inter-organizational network activities (INAs), entrepreneurs’ social networking (ESN), and PSE on the ES amongst the entrepreneurs of Pakistan. The study’s findings would be supportive for policymakers and practitioners to bring a thriving entrepreneurial environment in the Asian context, predominantly in Pakistan. The outcomes would also enrich the
depth of entrepreneurship literature

Burden of being a Working Woman; An Empirical Investigation into ‎Satisfaction and Happiness of Working Women in a Patriarchal Society

Hidayat Ullah Khan
Muhammad Asif Jan
Abdul Wajid


Women’s labor market participation in Pakistan is phenomenally low. Those women have somehow managed to make it into the job market after overcoming numerous odds. Therefore, retention of women in the labor force is a daunting task, despite aggressive organizational reward and recognition programs in place. In this study, we attempt to assess the effects of rewards (monetary benefits) and recognition (non-monetary benefits) on job satisfaction and/or happiness among working women, both in the absence or presence of various odds and hurdles faced by the working women. We predict women’s job satisfaction and/or happiness in two different scenarios, i.e. absence and presence of odds. To achieve our objectives, we use original micro-data, collected through random sampling, from over 600 respondents. We assess the effects of rewards and recognition on job satisfaction and/or happiness, both in the presence and/or absence of the odds and hurdles i.e. constrained and unconstrained analysis. We find that rewards and recognition are effective, both constrained and unconstrained scenarios but the former has diminishing effects on job satisfaction and/or happiness.

Corporate Governance, Ownership Structure, SOEs, and CFO Gender Impact on ‎Investment Efficiency Evidence from Chinese listed firms.‎


Naveed Razzaq
Raheem Bux Soomro
Khair Muhammad Memon

This paper is aimed at investigating the ownership mechanism, corporate governance, SOEs, and CFO gender association with investment efficiency in the context of the Chinese economy. In order to measure the efficiency of investment, a famous method developed by Richardson (2006) was utilized in this study. To assess the impact of corporate governance mechanism and ownership structure on the investment efficiency of Chinese-listed companies in Shenzhen and Shanghai stock exchanges, it employed OLS regressions with year and industry effect fixed effect. This study determines that ownership concentration holds a negative relationship with investment efficiency, however, no. of senior executives on the board keep a positive association with investment efficiency. Further, executives and institutional investors in the Chinese firms are increasing investment efficiency. In addition, investment efficiency pronounced more in SOEs firms and when CFO is male in Chinese listed firms. Furthermore, for policymakers, corporate governance improvement helps to support the managerial interests, and institutional investments are required to enhance investment efficiency.

Employees’ psychological contract in organizations Using System thinking approach


Salman Iqbal
Ms. Hafsa Farooq
Ms. Mamoona Rasheed

The purpose of this study is to evaluate the measures managers can take to curtail psychological contract breach in order to ascertain exchanges in the manager-subordinate relationship. We used a system thinking approach and drew a CLD (casual loop diagram), followed by a stock-&-flow map. For the validation of the CLD, interviews were conducted, targeting individuals (executives) from private sector universities. Interview results were later reported to strengthen the CLD results. Results show that managers are more likely to coach their subordinates, promoting workforce competency to deliver tasks and contextual performance. Consequently, reneging prospects, psychological contract breaches, and violations are significantly lowered.
Furthermore, a trusting relationship amid exchange partners causes them to attribute breaches to involuntary reneging, which encourages them to compromise, consequently allowing socio-emotional exchanges that are conducive to organizational performance in terms of organizational productivity. It can be possible to enhance the employees’ motivation and job performance if a psychological contract breach is avoided by the managers that will aid in improving employees’ performance and ultimately organizational performance. Promoting Interpersonal trust among managers and employees, and removing informal communications barriers can enhance organizational performance. Therefore, this paper will help in bringing awareness to organizational leaders.

Evidence on Unit Roots and Structural Breaks A Chosen Macroeconomic Series ‎from Pakistan


Sarfaraz Ahmed Bhutto
Zulfiqar Ali Rajper
Jai Kishan
Ashique Ali Lashari

Observing certain properties of Unit Root in the time series of macro-economic indicators has become a necessary pre-requisite for establishing the order of integration. The study used conventional unit root tests that indicate level stationery or non-stationary using annual data for Pakistan. Perron (1989) and Zivot and Andrews (1991) tests failed to reject the hypothesis of unit root even after the inclusion of structural break. Results showed that all variables witnessed the existence of structural break during the 1970s. Lumsdaine and Papell (1997) test results after incorporating multiple structural breaks indicate M3, exports, and saving show trend stationarity. The study concludes that shocks in the economy have affected the long-run behavior of these variables and implications for economic growth.


Experiential Marketing in Online Shopping A Way Forward in ‎Understanding Customer Behavioral Intention to Reuse


Muhammad Zahid Maitlo
Rehman Gul Gilal
Irfan Ali Mirani

The purpose of this study is to examine the influence of experiential components on behavioral intention to reuse in online or electronic shopping (e-shopping) using the flow theory of Csikszentmihalyi (1990). The study selected a quantitative research design using a close-ended approach including 323 responses of online shopping by using a convenience sampling technique. Moreover, the proposed model was empirically tested and validated employing a structural equation model using Smart PLS latest version. The paper has extended the theoretical and conceptual knowledge by empirically validating the relationships of experiential components and behavioral intention to reuse and flow experience


Factors affecting the Development of Women Entrepreneurship in Beauty-Parlour ‎Industry of Sukkur Sindh, Pakistan.‎

Marvi Soomro
Raheem Bux Soomro
Irfan Ali Mirani

The main objective of this paper is to explore the influencing factors of women entrepreneurship by highlighting the barriers in the beauty parlor industry of Sukkur, Sindh Pakistan. This study follows a quantitative approach to capture the most influencing factors. In this quantitative study, descriptive statistics, reliability tests, factor analysis, Multiple regression analysis, and correlation analysis were performed to know the influence or impact of each variable on the dependent variable. It is found that financial affairs, entrepreneurial skills &education, business support, and environment significantly influence the development of women entrepreneurship in the beauty parlor industry and operational incentives are not enough. This study specifically helps the policymakers to amend financial policies and educational programs and to develop a theoretical framework at the institutional level to change the mindset of a strongly patriarchal society. This study will specifically help the nascent female entrepreneurs who want to initiate entrepreneurial activity in the beauty sector.


Impact of Brand Experience on Positive Word of Mouth (PWOM) communication in ‎Smartphone products A mediation effect through customer satisfaction.


Muhammad Ali Brohi
Iram Rani Shaikh
Minhoon Khan Laghari
Saqib Wahab Mahar

The impact of brand experience on positive word of mouth has taken for the current study in which customer satisfaction used as the mediator in the context of Smartphone usage in Pakistan. The data have been collected by using a convenience-sampling technique from the undergraduate students of The Shaikh Ayaz University Shikarpur. The data collection was done from the aspect of Smartphone buying experiences (N = 389) and was quantitatively analyzed on SPSS 26 and Amos 26. The Structural Equation
Modeling (SEM) was employed to check the mediation effect of customer satisfaction between Brand Experience and Positive word of mouth communication. The results signified that brand experience was the main construct having contributed to positive
WOM communication but customer satisfaction performed the role of full mediator in the association between Brand Experience and Positive word of mouth in the context of Smartphones. The discussion, conclusion, Theoretical and managerial suggestions of the results are reported in the light of the brand management literature. Moreover, further research directions are also evident.

Impact of Liquidity Risk on Islamic Banks Performance in Pakistan Study of ‎Meezan Bank Limited (Ltd) and BankIslami Limited (Ltd) Pakistan (2014-2018)‎


Waseem Ahmed Jatoi
Siraj Ahmed Soomro
Mujeeb-ur-rehman Abro, Ph.D
Muhammad Muqeem Shah


Many researchers have proved with their studies that one of the factors affecting the economic growth of every country is banking performance, so by improving the performance of banks the economy of any country can be improved. The major purpose behind this research study is to figure out the influence of liquidity on the performance of Islamic banks in Pakistan. Liquidity Risk increases when bank’s funds decrease to pay their dues on time. Liquidity (independent variable) of banks has been studied by Loan to Deposit Ratio (L-DR), Liquid Risky Assets to Total Assets (LRA-TA), and Capital to Total Asset Ratio (C-TA). The Bank Performance (dependent variable) has been measured by Return on Assets (ROA) and Return on Equity (ROE). Secondary panel data starting from the year (2014-2018) has been derived from the financial statements of Meezan Bank Ltd and BankIslami Ltd Pakistan. Regression Model (Multiple Linear) has been used to find out the influence on a dependent variable by the independent variable. This study results that, keeping other factors constant, Liquidity is positively affecting financial performance (ROA & ROE) of Islamic banks in Pakistan but their impact is insignificant. Based on results we can recommend to Islamic Banks for improving performance they should increase their Net Current Assets.

Impact of Self-efficacy and Organizational Culture on Organizational ‎Commitment of Bank Officers ‎


Abdul Jaleel Mahesar
Sameena Khokhar
Khalid Hussain Abbasi
Najia Shaikh

Committed employees lead to increased productivity and efficiency of the organization. However, the factors leading to the commitment of employees in the banking sector are inadequately known in the existing literature. Previous research had largely focused on organizational culture, satisfaction cause commitment but little attention has been paid to the combined effects of the cultural factors and self-efficacy on organizational commitment of employees. Thus, this study examined factors that cause organizational commitment of employees in the banking sector. Based on a 200 bank managers’ survey, the study reveals a significant relationship of corporate culture and self-efficacy with the organizational commitment of private banking sector employees.

Strategies into Actions Finding Gaps between Expected and Actual Outcomes of ‎Microfinance


Aisha Ismail
Sadia Farooq
Rab Nawaz Lodhi


This study aims to investigate an unexplored dimension of the microfinance industry in Pakistan by analyzing the social performance of Microfinance Providers (MFPs) in terms of finding the gaps between stated and actual outcomes. The study employs qualitative content analysis, to explore the vision and mission of 27 MFPs (Microfinance institutions and Microfinance banks) and success stories of microfinance borrowers published on the official websites of MFPs. The results of content analysis reveals financial inclusion, social and economic development, poverty alleviation, and empowerment as prominent themes stated in the strategic statements. The major findings of the study suggest that vision and mission statements are aligned in stating the expected outcomes of microfinance, whereas, few gaps between actual and expected outcomes are reported in terms of their focus. Among various themes; MFPs have focused on financial inclusion and empowerment the most, while borrowers’ success stories highlighted the business expansion and improved living standard as the prominent outcomes of microfinance.


Perception of University Students regarding Semester System and Research Case of ‎Karachi University ‎


Farooq Ahmed Kalhoro
Muhammad Kamil Lakho
Inayatullah Magsi

The perception of students is different about the semester system and research being carried out in the Universities. This perception varies from individual to individual and vice versa. This study aims to identify the students’ preferences in the context of the semester system and research. The study is quantitative and the University of Karachi was selected as the universe. Whereas, accidental and convenience sampling techniques have been utilized for this study. The sample size is 400 respondents. The results reveal that according to the perception of the students, more preference for the semester system is positively associated with preference for research. The semester system creates more competition among students. The study proved otherwise, the majority of the students were found willing to studying in the semester system and doing research. It is further revealed that the research is a critical component of higher education that is encouraged in the semester system as well. Based on findings, it is recommended that the universities may focus on research and innovative activities in their semester system. It is also recommended that the universities should introduce a semester system in their affiliated colleges, where research may be entertained.

Pakistan Stock Exchange’s Causal Relationship with Mutual Fund Industry in ‎Pakistan. Benchmark KSE100 Index & Equity Mutual Funds


Sajid Hussain Mirani
Inayatullah Bhatti
Muhammad Salih Memon
Sarmad Rahat
Waseem Ahmed Jatoi (Corresponding Author)

This research paper studies the causal relationship between Pakistan Stock Exchange and Mutual Fund Industry in Pakistan. KSE100 – Index, and Equity mutual funds have been selected as a benchmark to check the relationship between them. A causality and Vector Auto Regression technique has been used to see the impact of stock returns over mutual funds flows and vice versa. The Johansen test showed that the variables under study are not cointegrated in long run. Granger causality and Vector Autoregression Model test shows the unidirectional relationship of the KSE100 index over Mutual fund flows. KSE100 index return significantly affected by its own lags and mutual funds lags, although the impact of mutual funds lags and KSE100 index lags on Mutual fund flow is not significant. Based on results it could be concluded that improved Pakistan stock exchange performance improves the performance of the mutual fund industry in Pakistan.


Measuring Industry-wise difference of employee turnover and its consequences at ‎Site Area Kotri using ANOVA


Tayyaba Rafique Makhdoom (Corresponding Author)
Syed Abdul Sattar Shah
Noor Muhammad Jamali

This study explored and analyzed the industry-wise difference of employee turnover and its consequences/effects at manufacturing organizations situated in Site area Kotri. The data were accumulated by semi-structured interviews, and a survey was conducted afterward with the use of a closed-ended questionnaire, comprising 37 items. Industry-wise differences in turnover and its consequences were assessed with the help of ANOVA using SPSS 24.0. Industry-wise turnover rates were found to be high at Site area Kotri, but there was no significant difference in terms of Annual employee turnover rate (observed) across the industries selected for this study. Furthermore, three factors/consequences of turnover were found to be significantly different across the industries, while six factors were not perceived to be different across the industries. The industry-wise difference in terms of consequences of turnover implies that industries should develop specific strategies and policies for reducing turnover, though general policies may also be formulated and implemented.


Influential Factors of Brand Extension Among University Students of Southern ‎Punjab, Pakistan


Muhammad Sajjad
Muhammad Umair Zulfiqar
Muhammad Ali

Brand extension is considered to be a highly plausible and important factor for the success of new products. This study carefully considers the influential factors for the evaluation of brand extension. By employing a new and proposed nomological network, this study analyzed the three important characteristics of consumers to assess the brand extension and its strategies. The proposed theoretical model was assessed through structural equation modeling (SEM) with the help of smart pls. Data was collected from 331 university students of southern Punjab, Pakistan. It was found that all three personal characteristics of young consumers (need for uniqueness, innovativeness, and need for variety) are highly significant with an evaluation of brand evaluation. The proposed model explained more than 30% variation in the observed phenomenon. Theoretically, this study contributed to and enhanced the nomological network of brand extension for young consumers. Practically, the study will help the decision-makers to understand the preferences of the young generation for devising the new strategies of brand extension


Impact of supervisor’s AMO on Employee’s Satisfaction with PMSS Mediating ‎Role of Employee’s Perception of PMSS


Qamar Uddin Maitlo
Iqra Hafeez
Khaliq Ur Rehman
Frida Thomas Pacho
Hamid Ali Shaikh

Performance management systems (PMS) are utilized to enhance employees’ output with a definitive objective to increase organizational performance. Organizations rely on supervisors to execute PMS; to take part in a constant procedure of objective setting, criticism, and training and performance assessment with their subordinates. While taking the inferences from Ability, Motivation, and Opportunity (AMO) theory, current research anticipates that the execution of PMS is the output of three variables named ability, motivation, and role conflict. According to this theory, supervisors should have the ability to exercises those activities which are included in PMS. To test this assumption empirically the data was collected from 78 section heads and 408 representatives working in model schools in Sindh Pakistan. Hierarchical linear modeling was used to test the theoretical model. And results found that the supervisor’s AMO to execute PMS is positively associated with the subordinate’s satisfaction with the system. This relationship is being mediated by subordinate’s perception of the PMS’s strength.

Causal Analysis of Job Insecurity and Job Performance A Study of Faculty ‎Members Working in Privately Owned Degree Awarding Institutes of Sindh


Saifullah Shaikh
Muhammad Muqeem Shah
Hussain Amar
Sarfaraz Ahmed Bhutto

In today’s competitive business scenario there are various issues faced by employees at the workplace especially in privately-owned organizations. This research has focused on these issues. About various burning issues tackled by employees, job insecurity is one of the most stressful, problematic, and threatened challenges in today’s competitive business world. This study has been conducted to examine the influence of job insecurity in relation to job performance among the faculty of those specific institutions which are managed in private in Sindh. It has been observed from this study that job insecurity is a hindrance construct for better job performance. Data has been collected from those academic institutions that are affiliated with the Higher Education Commission of Pakistan. Results propose that there is a negative significant relationship between JI and JP. This study has significant importance and scope. It has attempted to explore occupational psychology variables. This study can help management to control the unpredictable behavior of employees. It may determine the situations where employees feel insecure on their job and cannot perform better. Negative consequences may occur if it is uncertain, discomfort and displeasure descriptions added in employees’ job and recommend poor performance of the employees. Further, results can guide policymakers of the organizations to make employee-oriented policies.

Factors Influencing Development of Counterproductive Work Behavior Among University Employees


Rooh ul Amin
Qadar Bakhsh Baloch
Ms. Sourath Mahar
Syed Naseeb Shah

This study was conducted to evaluate the factors that influence the development of counterproductive work behavior amongst university employees. For this purpose employees of Peshawar University and Agriculture University Peshawar were considered a population total of 500 questionnaires were distributed. Responses were received from 415 participants. The collected data was analyzed using SPSS and AMO software. The Confirmatory Factor Analysis was conducted to evaluate model fitness however,
regression analysis was conducted to evaluate the relationship between independent variables and dependent variables. The study found employee development, organizational commitment, burnout, and psychological capital influence the development of counterproductive work behavior in university employees. The statistical values of regression analysis show the existence of a significant positive relationship between independent variables and dependent variables also found consistent with previous studies. In this regard, it is recommended that organizations must consider the identified factors to encounter the development of counterproductive work behavior amongst employees. Also, recommend developing a soft image in the industry by providing employees development opportunities.