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We reveal the reporting quality channel by investigating the mediating role of financial reporting quality (FRQ) in the relationship between product market competition (PMC) and analysts' forecast quality (AFQ). We analyze a sample of 1179 unique nonfinancial Chinese listed firms, resulting in 6074 firm-year observations, over the period 2007–2016. We employ the Herfindahl-Hirschman Index (HHI) to measure PMC, the modified Jones model to measure FRQ, and analysts' forecast dispersion and accuracy as measures of AFQ. We then apply a three-step mediation model following the Baron and Kenny approach to test our proposed hypotheses. The results of the mediation model support our hypotheses by revealing the mediating role of FRQ in the PMC-AFQ relationship. The results suggest that intense PMC enhances the FRQ of Chinese-listed firms, in turn enhancing AFQ. Our findings present important implications for both current and potential investors, financial analysts, and relevant government regulatory bodies.

Abstract The study aims to investigate how relying on short-term debt may help Chinese listed firms to make efficient investment decisions and reduce overinvestment problem for low-growth firms. The study uses a large set of panel data of non-financial Chinese listed firms over the period 2007–2017 and, using the robust two-stage generalized method of moments, which is robust to unobserved heterogeneity of individual firms and addresses endogeneity issues. Findings show a positive relationship between growth and investment; this association is enhanced by leverage, especially for high-growth firms. This supports the view that short-term debt helps Chinese firms to make optimal use of leverage and therefore make better investment decisions. Furthermore, the results reveal that leverage plays a disciplining and monitoring role to reduce overinvestment incentive for low-growth firms. Overall, the study suggests that shareholders should consider short-term debt to mitigate the debt overhang problem and restrict the opportunistic behavior of managers, which can lead to efficient investment decisions. It also provides foreign investors insights about capital structure in China, and how it can help them make better investment decisions.

Abstract Using a sample of 280 firms listed on the Pakistan Stock Exchange, we empirically investigate factors that determine corporate cash holdings in different periods from 2005 to 2014. We divide the sample into three sub-periods—pre-crisis, crisis, and post-crisis—and apply a panel data model to estimate the results. The results suggest that financial crises affect firms’ cash holdings policies. Further, findings show that financial crisis has influenced the relationship of size and leverage with cash holdings. In particular, cash flow, liquidity, and tangibility are major determinants of cash holdings in the sub-periods. We present important implications for corporate managers, academicians, and policymakers.

Purpose - This study aims to investigate the market timing strategy in different market conditions (i.e. up, down, normal and in-financial-crisis situation) in the emerging market of Pakistan over the period 1995 to 2015. Furthermore, this study tests the validity of the capital asset pricing model (CAPM) and Fama and French model. Design/methodology/approach - This study considers monthly stock returns of 167 firms and constructs six different portfolios on the basis of different size and book to market ratio. The Treynor and Mazuy model is used to capture the market timing strategy. Findings - The results indicate evidence of the market timing in normal market conditions. However, there is less supportive evidence of market timing in up-market, down-market and in-financial-crisis situations. This study also confirms the validity of the capital asset pricing model and Fama and French three-factor model with strong support of value premium and size premium in the stock market. Practical implications - The findings of this study are helpful to companies in estimating the cost of issuing equity more accurately. The investors can use market timing to make their investment in a more better and profitable manner. Originality/value - Unlike other previous studies, this study considers an extended period to test the validity of the capital asset pricing model and Fama and French model. In addition, this study is novel in testing the marketing timing of the firms in the context of emerging economy of Pakistan.

This study examines the relation between person-environment (P-E) fit with job satisfaction and job (task) performance. This cross-national study is based on faculty members of universities from Kabul (180) and Islamabad (270). Data is collected through self administered questionnaires and is tested following the Baron and Kenny (1986) moderation and mediation procedures. The studycontend that power distance moderates the relationship between P-E fit and job satisfaction. Contrary to expectation, power distance does not moderate the hypothesized relationship. This study finds that individual's satisfaction from high power distance culture depends on their cultural norms because they give more preference to cultural norms than their own needs and demands. Moreover, results show the direct relationship of P-E fit with job performance in Afghanistan (Kabul) and Pakistan (Islamabad). We compared the results of hypothesized model cross-nationally and find some variation regarding employee's job satisfaction. Job satisfaction partially mediates the relationships between P-E fit and job performance in Kabul, while in Islamabad job satisfaction fully mediate the relationship between P-E fit and job performance. By asserting the role of culture, this study developed practical implications for both theorists and practitioners. Keywords: P-E Fit, Power distance, Job satisfaction, Job performance, Afghanistan, Pakistan

Mergers and Acquisitions are considered as one of the useful strategies for growth and expansion of businesses. These strategies have widely been adopted in developed economies while are quite often practiced in developing countries like Pakistan. This study aims to explore the effect of Mergers and Acquisitions on stock price behavior of banking sector in Pakistan by using event study analysis for the period of 2002–2012. Market Study Method was used to compute the abnormal and cumulative abnormal returns for analyzing pre and post events effect of the phenomenon on share prices. The results reveal mixed observations of the activity of mergers and acquisitions on stock price performance. Our findings indicate that most of the firms experienced negative while some firms have shown positive abnormal and cumulative abnormal returns following the activity. Overall, the results indicate that the market responded negatively towards the phenomenon of mergers and acquisition in Banking sector of Pakistan. The results would be useful in providing new insights to the investors and management in making their investment related decisions.

This study investigates the Islamic and conventional Index integration over the period 3rd September, 2008 to 30th September, 2015. This study uses Johansen and Juselius cointegration method for exploring the long run association. The short run association is explored using VECM model. The volatility spillover dynamics is examined using the GARCH and EGARCH models. The robustness of the results is analyzed by using Granger causality method, Variance Decomposition method, and Impulse Response Function. The estimation results show significant long run and short run association between Islamic and Conventional index. Furthermore, this study finds asymmetric bidirectional volatility spillovers between Islamic and conventional index. The findings suggest that domestic investors have low diversification opportunities by adding both Islamic and conventional index in their portfolios. However, international investors can add one of the indices in their portfolios, in order to benefit from portfolio diversification. Keywords: Islamic index, Conventional index, EGARCH, GARCH, Pakistan

The importance of solar energy has been accepted worldwide for the generation of electricity, but unfortunately, Pakistan has yet to exert efforts on the development of this source of energy. The purpose of this research is to explore the public acceptance and interest in solar home system (SHS). Moreover, the expectations of the public towards SHS development in Pakistan and the difficulties they face in SHS usage are identified. The result of the survey indicates that about 81% of the respondents show higher interest in SHS. However, many respondents claim that some hindrances obstruct them from using SHS which includes; high cost of solar panels, lack of information and trust on solar panel providers. Almost 60% of the respondents expect that government provision of incentives could be the best way to boost the usage of SHS countrywide. For the successful implementation of new SHS policy, the government of Pakistan needs to establish solar power plants, increase installation of solar panels, provides funding and full information for conducting independent research. In addition, almost 90% of the respondents believe that government should take the lead in developing the SHS sector. Therefore, this study provides some valuable references for SHS promotion in Pakistan.

This study examines the association between various uncertainties and corporate investment and further investigates this association between state-owned enterprises (SOEs) and non-state-owned enterprises (non-SOEs). Moreover, this study analyzes the indirect effects of uncertainty on corporate investment through cash flow. The current research uses an unbalanced panel data of Chinese nonfinancial listed firms for the period 1999–2016. To control endogeneity issues, this study applies a robust two-step system generalized method of moments (GMM) technique to estimate the model. Empirical findings indicate that market-based and firm-specific uncertainties have positive effects, whereas economic policy and CAPM-based uncertainties have negative effects on corporate investment. Furthermore, results indicate that the effects of market-based, CAPM-based, and firm-specific uncertainties (economic policy uncertainty) were less (more) prominent for SOEs. Additional analyses show that cash flow stimulates the effect of firm-specific uncertainty on SOEs’ investment, whereas it weakens the influence of CAPM-based uncertainty (economic policy uncertainty) on investment of non-SOEs (SOEs). Moreover, cash flow attenuates the market uncertainty effect on investment.

This study investigates the influence of corporate governance and the nature of the ultimate owner on the adjustment behavior of corporate cash holdings. This study uses a sample of Chinese listed firms over the period 2003–2016 and opts difference- and system-GMM (generalized method of moments) models to explore the target cash holdings of Chinese firms. The results demonstrate that Chinese firms have target cash holdings and that the cash holdings adjustment behavior varies across the state-owned enterprises and nonstate-owned enterprises. Finally, the results show that cash holdings adjustment rate varies across normal and crisis period. This study adds to the existing literature by showing how corporate governance attributes and the nature of ownership can impact the cash holdings. Finally, this study provides insights that the cash holdings adjustment varies in normal and a crisis period.

This study investigates the volatility spillover effect among Asian emerging markets in pre and post 2007 financial crisis period. The sample includes five emerging markets of Asia named; China, Pakistan, Hong Kong, Sri Lanka, and India. The asymmetric volatility spillover among the stock markets is examined using an extended EGARCH model. The results highlight certain interesting key findings. We find bidirectional volatility spillover between stock markets of India and Sri Lanka in both sub-periods. However the volatility spillover is bidirectional between stock markets of Hong Kong and India; Pakistan and India in pre-crisis period, while in stock markets of Sri Lanka and Pakistan in post-crisis period. The integration of emerging markets of Asia has important implications for investors and policy makers.

This study investigates the financing behavior of Chinese firms in tranquil and crisis situation over the period 2002–2014. We divide the sample into three sub-periods; pre-crisis, during-crisis, and post-crisis. The results indicate some noteworthy findings as this study incorporates firm and country-level factors. We find that the firms’ financing choice depends on the market conditions. The results show that Chinese firms have significantly decreased their dependence on leverage after the eruption of global financial crisis. Furthermore, we find that financial crisis of 2007–2008 has significantly affected the explanatory power of all factors. Moreover, profitability, size, and liquidity are important factors determining capital structure of the firm in financial crisis period.