Publications Volume-1 | No. 1 | October, 2014

Editorial

Dr. Khalid Ahmed

Editor-in-Chief

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Dear Readers,

Since the advent of globalization, the business and economic growth has replaced the conventional power tools, i.e. military strength, weapons, number of soldiers, etc. Today the countries of the world are recognized and considered powerful in terms of their economic strength and global business accumulation. That is why the global surge towards the attainment of business and economic goals is associated with the quality of management and economic policy design. The last few decades have seen proliferating growth in business and management education. The candidates produced in these systems are now running the business empires which rule the world. In precise, business education and management research has been playing a vital role in innovating businesses and management practices. It further expands the businesses with minimized risk and results in a larger success ratio.

Nevertheless, Pakistan has also been striving for imparting the quality of business education and research since its inception. Numerous business schools are working on producing business graduates to meet the growing demand in the developing economy. The institutes are engaged in understanding the domestic business requirements with its compatibility to global markets and vice versa. Therefore, Sukkur IBA is also aimed to establish to meet such requirements with international standards. The institute has distinguished itself among the best schools in the country in a very short span of time. Now it ranks 3rd best business school in Pakistan. Realizing the responsibility and long term vision, Sukkur IBA is now focusing the business and management research. After holding a very successful international conference (ICOBM-2014), we proudly brought the first special issue of our newly established Sukkur-IBA Journal of Management and Business (SIJMB). The special issue is composed of selected papers from the conference proceedings. The frequency of the journal is initially set to semi-annual.

The journal is a sincere effort of Sukkur-IBA’s unmatched contributions towards business education and research. SIJMB is aimed to produce high quality original research articles, case studies, review articles and short essays on any of the journal’s thematic areas. The Journal will be indexed in highly ranked services and aim to get recognized on an international level.

I look forward to receiving your submissions and feedback.

A study of causality between disintegrated intellectual capital and firm performance

Mujeeb Ur Rehman1

School of Management, Wuhan University of Technology, Wuhan 430070, PR. China

Khalid Ahmedc

Department of Business Administration, Sukkur IBA, Sukkur 65200, Pakistan
khalid.ahmed@iba-suk.edu.pk

Ahmer Qasim Qazi3

Pakistan Institute of Development Economics (PIDE), Islamabad, Pakistan

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This paper aims to provide the new and unique way to analyze the factors which cause Intellectual Capital (IC) and its impacts on firm’s performance. The data is obtained from 41 Chinese companies listen in Shanghai Stock Exchange Company from 2005 to 2011The empirical technique adopted to investigate this research is also unprecedented. This study uses Vector Auto-Regression (VAR) model on panel data structure to analyze the relationship between disaggregate intellectual resources and its impacts on the profitability at the firm level. The diverse estimation technique is used which covers both cross-sectional and time behavior of data. The variety of empirically tools; unit root, co-integration and granger causality tests are applied respectively to validate the hypothesis. The overall results confirm the hypothesis whereas, in the light of the results of the descriptive statistics, the low value of SCE shows that the Chinese high-tech companies are not investing enough as compared to the other components of intellectual capital as compare to HCE and CEE. The results from the short run causality test based on VECM signify bidirectional causality between ROE and HCE and unidirectional causality from HCE to SCE and CEE to SCE. The results of the data analysis provide useful implications for the theory of intellectual capital. The results indicate that the presence of intellectual capital causes a firm to attain better performance.

Determinants of Job Satisfaction in Academic Professionals of Pakistan

Ali Ahmad Bodlac

Antai College of Economic and Management, Shanghai Jiao Tong University, Xuhui Campus, Shanghai, China
alibodla22@gmail.com

Matloub Hussain2

College of Business Administration (COBA), Abu Dhabi University, 59911, Abu Dhabi, UAE

Chiyin Chen3

Antai College of Economic and Management, Shanghai Jiao Tong University, Xuhui Campus, Shanghai, China

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The purpose of this study is to explore and analyze the determinants of job satisfaction in academic professional of Pakistan. The job satisfaction was considered dependent variable and human resource management (HRM) practices (training and development, performance appraisal, career planning, and compensation) were predictor variables. Linear regression model was used in this study that demonstrated the overall effect of variable and data was collected from faculty members of four (two public and two private) different universities of Pakistan. It has been found that performance appraisal and compensation are important determinants of job satisfaction among faculty members. Therefore, the management of universities in Pakistan should give considerable emphasis on performance appraisal. Interestingly, the analysis of means variation and independent t-test did not demonstrate a difference between faculty members of public and private universities in terms of job satisfaction and HRM practices. Future investigations should explore the underlying mechanism between the HRM practices and job satisfaction.

Home Equity Bias

Ume Salma Akbarc

Department of Business Administration, Sukkur IBA, Sukkur 65200, Pakistan
u.salma@iba-suk.edu.pk

Mubasher Ali Jamro2

Department of Business Administration, Sukkur IBA, Sukkur 65200, Pakistan

Zulfiquar Ali Shah3

Department of Management Sciences International Islamic University, Islamabad, Pakistan

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This study is aimed to investigate the factors that are intended to lessen the home equity bias or became a base for foreign diversification. By using the foreign diversification of twenty-one developing countries over a period of ten years and incorporating the effect of nine important variables for exploring their effect on home bias. The results from Random effect panel regression shows a diminishing trend of investors towards home equity biasness and the contributing factors for lessening this bias are local market share in world market capitalization and information available to investors and trade opening.

Publication Trends and Methodological Advancements in the Area of Agency Cost

Mehreen Furqanc

Lahore School of Economics, Lahore, Pakistan
mehreena@lahoreschool.edu.pk

Maha Ijaz2

Lahore School of Economics, Lahore, Pakistan

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The paper presents a systematic literature review of the Research done in the last 30 years in the area of Agency Cost. It undertakes content analysis technique for the purpose and does a complete publication and methodological analysis to discuss the path the research is following. Simple counts and cross tabs are run to look at the advancements in the publication and methodology of the research over the years and in the four different regions of the world where this research is taking place. The results help us determine where and how most of the research in the world is taking place, as in what are its characteristics. The implication of this would be to use the characteristics to do further research in the area of Agency Cost. Also, this research would help in identifying the gaps in the methodology used to research for Agency Cost creating room for further research.

Testing Main and Interactive Effect of Personal Coping and Social Support on Work Family conflict

Aneel Kumarc

PhD. Scholar, Department of Business Administration, Sukkur IBA, Sukkur-65200, Sindh Pakistan
aneelkumar.phd@iba-suk.edu.pk

Ghulam Ali Arain2

Assistant Professor, Department of Business Administration, Sukkur IBA, Sukkur-65200, Sindh Pakistan

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Managing the work family conflict is essential to perform at work and home effectively. The individuals utilize lots of their efforts to ease the work family conflict (WFC). This research investigated the role of personal coping (PC) strategies and the social support (SS) an individual receives in decreasing the level of work family conflict (WFC). Survey method was used to collect the data from Pakistan. The results of this study revealed that PC and SS are negatively associated with WFC and SS was found as moderator in the relationship between PC and WFC. The negative relationship between the PC and WFC was stronger when SS was low as compared to when it was high, whereas the excessive use of resources (i.e., coping and social support) together increased the WFC. This research has contributed by determining the role of SS as moderator in relationship between PC and WFC. Implications of the study are discussed.

The Income Inequality and Domestic Terrorism Nexus: Fresh Evidence from Pakistan

Muhammad Shahbazc

COMSATS Institute of Information Technology, Lahore-54000, Pakistan
shahbazmohd@live.com

Faridul Islam2

Department of Economics, Morgan State University, Baltimore, MD 21251

Muhammad Sabihuddin Butt3

Applied Economic Research Centre, Islamabad-44000, Pakistan

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We examine the relationship among income inequality and domestic terrorism economic growth, education and trade openness. Results indicate that rise in income-inequality promotes terrorism. Lopsided economic growth and unequal access to education accentuate inequality and contribute to terrorism.

Validity of EMH; A Case Study of KSE-100 Index

Salma Nazc

MS Finance Scholar, Department of Business Administration, Sukkur IBA
salma.naz@iba-suk.edu.pk

Seema Razaque2

MS Finance Scholar, Department of Business Administration, Sukkur IBA

Hyder Ali Khuwaja3

MS Finance Scholar, Department of Business Administration, Sukkur IBA

Niaz Ahmed Bhutto4

Associate Professor, Department of Business Administration, Sukkur IBA

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The emerging markets offer major investments opportunities for a range of investors over the last decades especially after the global financial crises,which attracted the attention of investors and financial researchers towards the market efficiency.This research paper is designed to verify other researchers work, because some of them have provided contradictory results to test the market efficiency of Pakistani stock index (KSE-100). Average daily observations are considered for the period of twenty two years (November 02, 1991 to December 31, 2012). Unit Root tests (ADF, PP and KPSS), Runs test, Serial Autocorrelation (L-Jung-Box Q statistic) techniques are used to analyze the market’s informational weak form efficiency. Return time series is not normally distributed because it is negatively skewed and leptokurtic. All of the tests applied provide sufficient statistical evidence to reject the Random Walk Hypothesis thus KSE-100 shares index is informational weak form inefficient.