This article aims to give a fresh insight into the non-linear relationship between unemployment, governance, and poverty in Pakistan. For the purpose, the study utilizes data from 1984 to 2016 by employing a nonlinear ARDL co-integration approach. The findings provide an insight that poverty responds asymmetrically due to positive or negative shocks in unemployment and governance. Moreover, the results suggest that applying linear models on poverty modelling may mislead the inference. The findings of the study imply that the policymakers and academicians must consider nonlinear behaviour of poverty for better policymaking.
PurposeThe study aims to yield evidence on the relation between the quality of governance characteristics and the firms' financial credibility involved in financial violations.Design/methodology/approachThe study uses annual data ranging from 2000 to 2018. The sample consists of 154 nonfinancial firms listed on the Pakistan Stock Exchange, comprising 77 fraudulent and 77 non-fraudulent companies. To examine the relationship between improvements in the governance structure and financial credibility of the firms, hypotheses are tested using the univariate analysis and multivariate regression model through the ordinary least square method.FindingsThe results affirm that fraud firms are possessed with poor governance structure compared to control firms in the pre-fraud year. The findings further imply that an improved governance structure brings foremost performance in stock price. The results of the study divulge that board of directors characteristic i.e. change in outside directors' percentage has a significant positive impact (β = 0.015, p = 0.05) on the financial credibility of the firms. The governance variables in terms of CEO-COB joint position has a significant negative (β = −0.824, p = 0.05) association with the financial credibility, which means that whenever CEO-COB joint position enhances, the financial credibility of the firms decreases. However, governance variables in the context of blockholders percentage has a significant positive (β = 0.13, p = 0.01) impact on financial credibility. The results of the study overall indicate that the governance structure has a significant influence on the financial performance of firms in the stock market.Originality/valueThe study provides an understanding of how fraudulent firms rehabilitate their governance structure and accrue economic benefits by the means of financial credibility after when the fraud is made public. It also adds to the literature in the area of corporate frauds specifically the role of governance structure in the financial performance of fraudulent firms in the stock market; this field is in its initial stage, even in developed countries, while, in developing countries, little work has been done.
The study aims to examine what causes firms to engage in Corporate Social Responsibility (CSR) Decoupling. It also highlights the intensity of the firms to be involved in the decoupling of firms’ actual from claimed CSR practices. The study hypothesizes a significant association between CSR decoupling and its various antecedents. The documented antecedents are coercive isomorphism, monitoring mechanism, firm reputation, resource slack, and firm advertising intensity. Based on Institutional Theory and Stakeholder Theory, the present study accounts for the gap between firms’ actual CSR efforts and its professed CSR while also highlighting the factors and conditions under which firms overstate and misrepresent their CSR activities. The sample of the study includes 200 non-financial Pakistani firms listed on Pakistan Stock Exchange (PSX) with a time frame ranging from 2010 to 2018. The model under study is tested using common effects regression. The study findings reveal that non-financial firms operating in Pakistan are highly engaged in CSR decoupling. Also, coercive isomorphism, monitoring mechanisms, and firm reputation are significantly associated with CSR decoupling.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.