Purpose The purpose of this paper is to examine the impact of corporate governance, with particular reference to the role of independent directors on boards and audit committees, and media coverage on corporate transparency and disclosure. In addition, the paper also investigates the role of the media on independent directors’ behaviours towards corporate transparency and disclosure. Design/methodology/approach The paper uses the well-developed two-step system generalised method of moments approach on a sample of 99 Pakistan stock exchange (PSX) listed financial firms over the period 2007-2012. Findings The empirical analysis shows that media and independent directors on audit committees play a significant positive role in line with agenda setting and agency theories in promoting corporate transparency and disclosure. On the contrary, the boards’ independent directors are risk-averse and hold the information to protect their reputation. Nevertheless, the study does not find any significant influence of media coverage on independent directors’ behaviours in promoting corporate transparency and disclosure. Practical implications The findings provide some useful insight into cost benefits analysis of media coverage towards an understanding of independent directors’ behaviours for promoting transparency and disclosure in financial sector. Moreover, the study findings can be useful for both shareholders and stakeholders in taking decisions about firm activities. Originality/value To the best of the authors’ knowledge, this is the first study that proposed and tested a multi-level framework for corporate transparency and disclosure practices. In addition, this study is also among the very few studies that use financial sectors as a sample, in particular, and media coverage, specifically, thus adding some value to the limited literature.

Corporate governance (CG) is often split among rule and principle-based approaches to control in idiosyncratic institutional contexts. This split is often primed by the types of institutional conformations, their potencies, and the complementarities within them. Drawing on the theoretical foundation of institutional theory, this study theorizes CG practices and structures as institutionally resoluted and directed and explores the key institutional determinants of good CG practices in an emerging economy. Based on qualitative method, this study presents eight specific antecedents of good corporate governance practices in weak institutional settings (Pakistan). In particular, the study explores the extent to which certain underlying formal and informal institutional determinants, such as the auditing, political, legal, board, shareholders awareness, voting, culture and values play a determining role in corporate governance. This study advocates how each of these precursors must be implied, enunciated and hitched, on the basis of pertinent institutional peculiarities, in order to address contextual corporate governance challenges. This study contributes to the institutional theorizing of good corporate governance, by paying attention to the context, efficacy (instrumentality) and legitimacy (symbolic) in expounding the good corporate governance practices in an international business environment.

Purpose Organisational cynicism (OC) is a growing trend in contemporary organisations. However, its impact on employee performance (EP) remains understudied. The purpose of this paper is to address this gap by investigating its effect on EP. The study also investigates the moderating effect of employee engagement (EE) on the relationship between OC and EP. Design/methodology/approach Primary data are collected through questionnaire from employees (N=200) of various health organisations in Pakistan by employing a convenient sampling technique. Hierarchical multiple regression is employed by using SPSS. Findings The findings of correlation and regression analyses reveal that OC has significant negative relationship with EP. Hence, the patient care is compromised in sampled organisations due to poorer performance of employees. Moreover, findings also reveal that EE has a moderating effect on relationship between OC and EP. Therefore, hospital management needs to increase EE to reduce the cynicism and improve performance. In addition, organisations and managers need to consider their role and actions creating the conditions that lead to cynicism among employees and should take trustworthy steps to increase employee retention and engagement and, ultimately, their performance. Moreover, the findings of the study indicate that the majority of respondents are not happy with their organisations. They also feel that the organisation is not fulfilling its promises and betraying them in several ways. This breach of contract becomes the reason for OC among employees and badly affects their performance. Most of respondents give importance to their career development and the findings reveal that organisations are not focussing on career development of their employees. Research limitations/implications The study has some limitations and implications. The organisational culture can mitigate the negative effect of OC and enhance performance by promoting EE. It is recommended that employee cynicism can be reduced by providing a supportive environment, EE and fairness. Nevertheless, the findings of this study still help supervisors to inhibit this harmful effect by reducing the level of psychological contract violation and organisational politics that will reduce the level of cynicism among employees and improve their performance. Practical implications It is found that OC has a major impact on the behaviour and attitude of employees, supervisors and representatives on the one hand and, ultimately, the organisation, on the other hand. These effects have specific susceptibilities due to the vicinity of the employees. It is recommended that employee cynicism can be reduced by providing a supportive environment. Social implications The study also helps psychologists to understand employees’ attitudes and improve personnel selection to ensure they recruit the right people. Leaders need to communicate honestly, effectively and frequently to address cynicism in order to ensure ample staffing and resource levels that result in good patient care and positive work attitudes at hospitals. Originality/value According to the researchers’ best knowledge, only few studies tried to investigate the relationship between organisational cynicism and EP by employing the moderating effect of EE. Therefore, it will be a good contribution in existing literature to understand consequences of cynicisms.

The aim of this study is to examine the relationship between corporate governance (CG), in terms of its internal significance, and cost of capital (COC), based on a sample of listed firms of Pakistan Stock Exchange (PSX) over the period of 2009-2015. We used Pakistan as a case study mainly because we expect that key features of Pakistani setting in terms of CG and financial markets will have impact on the relationship between CG and COC. Drawing on a sample of 120 PSX listed firms, we find that CG compliance and disclosure (CG index [CGI]) has improved over time among PSX listed firms. The findings also reveal a positive relationship of institutional, government and director ownership with both CGI and COC, while this relationship becomes negative with block ownership. The findings of 2SLS reveal a significant negative association between CG compliance and COC; hence, firms with higher CG score enjoy a lower COC. Interestingly, gender diversity and board size have a negative association with CG compliance and COC, while audit firm size reveals a positive association with CG compliance and disclosure while a negative association with COC. The study contributes to existing literature dealing with CG and determinant of firm value (COC) in emerging markets, particularly in Pakistan, which has not been extensively explored in existing research.

Corporate governance (CG) fosters dynamic economic growth through managing stakeholder interest and reducing the cost of capital which ultimately lead towards the development of financial markets and better firm performance. Recently, regulators and policy makers around the world either have revised extensively or introduced new laws, codes and listing regulations to enhance effectiveness and transparency of corporate governance practices. Established economic theories were already aware of the significance of corporate governance for development and economic growth. This study assesses the link between corporate governance, socio-economic factors and economic growth through a consistent literature review. A majority of studies show a positive effect of corporate governance on economic growth of a country through stock market development. Moreover, theoretical and empirical research reveals that socio-economic factors are also a pivotal determinant of corporate governance mechanisms. This study summarizes the key findings and concludes that dynamic and flexible corporate governance system claims more demand as compared to rigorous corporate governance principles especially in emerging countries. This study also finds the need of methodological advancement in corporate governance research. Nevertheless, the social economic factors, political and legal system of the country should be blended in introduction and adaption of corporate governance system. The regulators and policy makers can use theoretical grounds o f study for reforms of the corporate governance system.

Purpose: This purpose of this paper is to empirically examine the relationship between transparency and disclosure and firm performance. Highlighting the importance of corporate governance in banking sector, the paper has focused in depth over its role, level and its impact on performance in banking industry of Pakistan. Design/methodology/approach: The paper access this purpose by constructing transparency and disclosure index for the past five year 2007-2011, using proxies for three sub-categories which are board and management structure disclosure, ownership structure disclosure and financial transparency disclosure. The paper also investigated structural changes of T&D Index and its effect on bank financial performance over the sample of 30 banks operating in Pakistan. Findings: Empirical analysis results by using ordinary least square regression model, reveals that financial performance is positively related to the transparency and disclosure and their sub levels except ownership structure disclosure which has negative relation with both ROA and ROE. Furthermore the average T&D level in Pakistani banking sector is above average. Practical implications: The current research paper aims for important policy implementation to reduce information asymmetry and improve corporate governance and firm performance in banking sector of Pakistan.

Purpose Organizational cynicism is a growing trend in contemporary organizations. However, its impact on employee performance remains understudied. The purpose of this study is to address this gap by investigating the effect of three dimensions of organizational cynicism (cognitive, affective and behavioral cynicisms) on employee performance. The study also investigates the moderating effect of employee engagement on the relationship between three types of organizational cynicism and employee performance. Design/methodology/approach Primary data are collected through questionnaire from employees (N = 200) of various health organizations in Pakistan by using a convenient sampling technique. Hierarchal multiple regression models are used by using SPSS. Findings The findings reveal that all three types of organizational cynicism (i.e. cognitive cynicism, affective cynicism and behavioral cynicism) have a significant negative relationship with employee performance, while employee engagement moderates this relationship. Moreover, the findings indicate that the majority of respondents are not happy with their organizations. They have the feeling that their organizations are not fulfilling their promises, in fact, are betraying them in different ways. This breach of contract becomes the reason for organizational cynicism among employees and negatively affects their performance at work. Research limitations/implications The study has a large population size and it is quite difficult to address the whole population and collect data from a large sample because of time and limited budget. Practical/implications The organizational culture can mitigate the negative effect of organizational cynicism and enhance performance by promoting employee engagement. The study helps psychologists to understand employees’ attitudes and improve personnel selection to ensure they recruit the right people. Openness, honesty and early communication can increase predictability and controllability of future events. Social implications The job insecurity and lack of adequate compensation are assertive factors towards low productivity and negative attitude toward organization. Originality/value According to the researchers’ best knowledge, only few studies tried to investigate the relationship between organizational cynicism and employee performance by using the moderating effect of employee engagement. Therefore, it will be a good contribution in existing literature to understand consequences of cynicisms.

Purpose The issue of exploitative labour practices has been a persistent and recurring problem in the textile and garment industry. Despite increased media, policy and practitioners attention the evidence base remains unexplored. The International Labour Organization (ILO) has acknowledged the presence of labour exploitation in global supply chains because of private sectors’ employment practices. The purpose of this study is to apprehend views of multilevel stakeholders to explore the nature and driving mechanisms of exploitation. Design/methodology/approach Semi-structured interviews were conducted with 76 respondents from 25 factories from 3 cities of Pakistan i.e. Faisalabad, Lahore and Gujranwala. Convenient and snowball sampling techniques were used because of the complexity of research settings. Transcribed data was analysed with the help of NVivo. Findings Drawing on qualitative evidence, the study reveals that workers experience a range of exploitation at the workplace, which is unlikely to fall within the scope of severe exploitation. The findings reveal that three types of exploitation exist in Pakistan’s textile and garment industry such as financial, physiological and psychological. Power inequality is the foundation and a fundamental cause of the endurance of exploitation. The study found three mechanisms that facilitate the endurance of exploitation, i.e. distance, profit and oppression. Research limitations/implications The study contributes to supply chain literature by exemplifying power inequality. It is crucial for the government to step up efforts to stipulate a minimum wage rate in the textile and garment industry to alleviate labour exploitation. The findings provide motivation for policy and decision-makers to implement incremental changes to global supply chains to protect the rights and welfare of workers, according to the standards of social accountability 8000, the ILO and other world trade stakeholders. Originality/value This study argues that the international and local instruments do not specifically address the severe labour exploitation in Pakistan textile and garment industry. Therefore, the need arises to develop a specific instrument to address the problem. In the absence of such an instrument, there is a piecemeal approach by international and local bodies towards the regulation of labour exploitation.