Pakistan Journal of Commerce and Social Sciences (ISSN 1997-8553)
Mission Statement Pakistan Journal of Commerce and Social Sciences (PJCSS) is a peer reviewed journal started in 2008 with the mission of providing high quality scientific content to academic researchers and business practitioners. It focuses to provide intellectually stimulating forum where researchers can share their ideas, experiments, commerce related themes and topics in a friendly, supportive and thought provoking environment. The editorial board of PJCSS is committed to promote the journal as one of the leading and globally reputable essential reading in contemporary commerce during the next five years to come.
Estimation of Parameters of the Beta-Extreme Value Distribution
In this research paper The Beta Extreme Value Type (III) distribution which is developed by Zafar and Aleem (2007) is considered and parameters are estimated by using moments of the Beta-Extreme Value (Type III) Distribution when the parameters ‘m’ & ‘n’ are real and moments of the Beta-Extreme Value (Type III) Distribution when the parameters ‘m’ & ‘n’ are integers and then a Comparison between rth moments about origin when parameters are ‘m’ & ‘n’ are real and when parameters are ‘m’ & ‘n’ are integers. At the end second method, method of Maximum Likelihood is used to estimate the unknown parameters of the Beta Extreme Value Type (III) distribution.
Copyright (c) 2008 Pakistan Journal of Commerce and Social Sciences (ISSN 1997-8553)
Burnout in Customer Service Representatives
The purpose and aim of this research was to (1) identify the factors that contributes towards job burnout in sales service representative (2) What are the relationships of these factors (3) To empirically test the relationships of the determinants relating to burnout in customer service representatives. Based on literature survey six different variables related to burnout were identified. The variables were (1) Emotional exhaustion.(2) Reduced personal accomplishment.(3) Job induced tension.(4) Job satisfaction.(5) Workload (6) Job satisfaction. Each of the variables contained 3 sub-variables. Five different hypotheses were developed and tested through techniques such as Z-test, F-test and regression analysis. The questionnaire administered for the study contained 15 questions including personal data. The subject was Moblink company customers sales service representative in Karachi.The valid sample size was 98 drawn through multi-cluster technique. Techniques such as measure of dispersion and measure of central tendencies were used for analyzing the data. Regression, Z-test, and F-test were used for testing the developed hypothesis. According to the respondents’ opinions, the reduced personal accomplishment had a high rating with a mean of 3.75 and job induced tension has the lowest mean of 3.58. The standard deviation of respondents’ opinions was highest for dimension depersonalization and least for dimension work load. This indicates that there is a high polarization of the respondents’ opinions on the dimension depersonalization moral and least on the dimension work load. The Skew nesses for all the dimensions were in negative except the determinants emotional exhaustion and workload. This indicates that the majority of respondents’ opinions on all the dimensions were below the mean except in the case of emotional exhaustion and workload. Five hypotheses were developed and tested: a) The hypothesis relating to low level of burnout in customers service representative was rejected. b) The hypothesis relating to no significant difference in the burnout levels of younger age group and older age group was accepted. c) The hypothesis relating to higher level of burnout in the single customers sales representatives as compared to married ones was accepted. d) Alternative hypothesis of relationship between independent variable “Job satisfaction” and dependent variable “Burnout”” was accepted. e) Alternative hypothesis of relationship between independent variable “Work load” and dependent variable “Burnout”” was accepted.
Education, Underemployment, and Job Satisfaction
Education is an effective vehicle for producing the required skills to maintain economic growth. The benefits of education range from human to economic, social and cultural. In Pakistan, there is significant rise in the average level of education, but over time, more and more workers incapable to use their educational background on the job. Supply of labor may have outstripped the demand of labor in some professions, and high qualified peoples taking job on low positions. Such underemployment/overeducation has not been fully explored in Pakistan. The theme of paper is “underemployment symbolizes an inefficient usage of human resources and lost output for society”. The research is based on case study on clerical workers of SNGPL. By comparing their educational backgrounds with their nature of job, this paper examines the impact of overeducation on job satisfaction. Our results show that underemployment/overeducation is correlated with higher level of job dissatisfaction, reduced job involvement, impaired co-worker relationship, and more emphasis on future aspirations.
Sui Northern Gas Pipeline Limited (SNGPL), Job satisfaction, Underemployment, overeducated clerical workers.
Growth and Efficiency of Small Scale Industry and its Impact on Economic Development of Sindh
The purpose of this study is to analyze the growth, efficiency, causes of sickness of small scale industry, emergence of entrepreneur and competencies of entrepreneurs at Larkana estate area of Sindh Province. The study examines the educational background of the entrepreneurs of small scale industry who are the helm of affairs and its impact on the growth of sales of the every year. Strong evidence emerges that owners of small industrial units are family concern and having a low educational background, lack of managerial knowledge and conservation-oriented attitude results in under utilization of capacity and low growth of units established every year. This research paper provides a survey of the theoretical and empirical literature relating to promote the small scale industry in the Larkana region. This study indicates effective policy measures to promote the small scale industry particularly in Larkana region and generally in Pakistan.
Small scale industry, Skilled entrepreneurs, Sindh, Larkana.
Dynamic Supply Response Analysis of Pakistani Rice Growers
Alternative specifications of model of supply response of Pakistani rice growers and their economic implications are considered in terms of the existences and nature of production lags, and the choice between expected price and gross returns as the preferred explanatory of producer's response to changing economic condition. The analysis indicates that there are lags which are due primarily to the difficulties and cost of rapid adjustment rather than to the time required to revise expectations. The statistical results were similar for the alternative specification of gross margins and prices as the economic decision available. However, the price elasticities derived using the gross margins specification were about a third of those using the prices specification. The gross margin specification yielded additional information in the form of yield and input cost elasticities.
Supply response analysis, Rice growers, Pakistan.
Problems and Challenges in Human Resource Management: A Case of Large Organization in Pakistan
This paper critically analyzes the work culture for a mainstream financial organization operating within Pakistan, while drawing a specific example to elucidate certain dilemmas that impede the potential growth for the financial sector and its constituent workforce, besides hampering the performance of the organizations. The case study is related to an organization in financial sector which conducts a Management Trainee Program with the purpose to select, train and develop a high-potential pool of talent into future leaders and fore-runners of the organization. This paper critically analyzes several inherent problems that face the successful implementation of the trainee program under the frameworks of various theories of organizational management. To solve these problems, this article presents a detailed diagnosis of the management shortcomings to improve the firm‟s corporate culture, work ethics and employee handling strategy and mechanism. Recommendations are also made to minimize the problems and maximize the success of the Management Trainee Program in the case study organization.
Human resource management, management trainee program, problems, challenges, motivation.
Working Capital Approaches and Firm’s Returns in Pakistan
This study investigates the relationship between the aggressive/conservative working capital policies for seventeen industrial groups of public limited companies listed at Karachi Stock Exchange for a period of 1998-2003. The ordinary least square regression model has been used to investigate into the relationship of working capital approaches and the returns of firms. The study found significant differences among their working capital investment and financing policies across different industries. Moreover, these significant differences are remarkably stable over the period of six years. The aggressive investment working capital policies are accompanied by aggressive working capital financing policies. Finally, we found a negative relationship between the profitability measures of firms and degree of aggressiveness of working capital investment and financing policies. The study would contribute a better understanding of working capital management policies in an emerging market like Pakistan.
Working capital, Aggressive working capital policy, Aggressive financing policy.
Determinants of Corporate Philanthropy in Pakistan
The importance of corporate philanthropy and its related philosophy of corporate social responsibility have captured the attention of researchers and humanitarian groups in WTO era. Corporate donations have been considered as a critical tool to improve corporate image in a highly competitive environment. This paper explores the determinants of corporate donations based on LSE-25 index companies over the five year period 2002-06. Multiple regression techniques have been used for gauging the determinants of corporate philanthropy after collecting data from audited financial reports of companies. The study is a pioneering attempt in measuring the determinants of philanthropy in corporate sector of Pakistan.
corporate philanthropy, charitable contributions, LSE-25, corporate donations.
Analysis of Trade Before and After the WTO: A Case Study of South Asia
Trade stimulates economic growth as well as create employment. The basic principles (of the WTO) make the system economically more efficient and cut the production and marketing costs. It gives consumers more choice, and a broader range of qualities to choose from. These are the basic benefits of world trading given by the WTO (WTO 2003). A number of studies have explained implications of the WTO with reference to developed and developing countries. How much trade has been increased by nations after the implementation of the WTO remained an ambiguous estimation. The increase in trade can result into benefits of the WTO. Generally, it is taken that developing economies have taken lesser tranche of the global trading. By applying the before-after approach we have tried to estimate that how much trade is increased in South Asian counties. How much the agriculture and industrial sectors were contributing in boosting the trade of the nations before the WTO and how it is doing after the WTO. It concluded that trade of the South Asian nations has not been increased up to the expectations that results in to low gaining of benefits from world trade.
Exports, Imports, International Trade, South Asia, WTO, Agriculture, Industry.
Copyright (c) 2009 Pakistan Journal of Commerce and Social Sciences (ISSN 1997-8553)
Reliability and Quantile Analysis of Pareto Distribution
This paper presents the reliability and Quantile analysis of the Pareto distribution. The main interests are in the relationship between and various percentiles lives that describe the spread of the values in a set of data. Here these quantiles models are presented graphically and mathematically.
Pareto distribution, Quantile analysis, percentile life
Faith and Reason: A Synthesis in Pakistani Society
The basic objectives of this paper are to build a general level of understanding towards the need for synthesizing and harmonizing religious, scientific and philosophical thoughts as they are developed and practiced in Pakistan or in other words, bringing the Islamic and western incliners close to each other and also in outlining some practical methodological ways through which this process of integration can be put on track leading towards a forward looking and modern Pakistani society while retaining its core and basic fabric of faith and religion. The paper has three sections, the first section highlights the needs and reasons for synthesis in relation to various segments of our society and also point out the potential adverse consequences of not undertaking and building an integrative view. The second section suggests some ways, measures and methods of achieving the above mentioned thought of integration across the society and focuses on some of the collective and institutional level endeavors and commitments required to actualize this integration. The third section of this paper issues some warnings regarding the process of integration and its possible undesirable repercussions on the society, in light of some of the earlier such attempts. The research draws some practical steps which need to be undertaken in the Pakistani society for creating a synthesis between Faith and Reason.
Banking Crisis: Empirical Evidence of Iranian Bankers
It is generally understood that well functioning banks and financial institutions help promote economic growth. That’s why Iranian government is trying to play active role to promote economic growth through well established banking and financial system. This survey shows that after interference of Iranian government in banking sector the going concern of Iranian banks became sustainable. However, the interference raises higher level of inflation in Iranian economy.
Bank crisis, Survival, Inflation, and Iran.
Application of Endogenous Growth Model to the Economy of Pakistan: A Cointegration Approach
During the last few decades, governments of developing countries have increasingly viewed foreign direct investment (FDIs) as a catalyst for economic growth. This study investigates the impact of FDI on economic growth of Pakistan by using Endogenous Growth Model. Out of a number of variables affecting economic growth, few have been taken into our model e.g. Foreign Direct Investment (FDI), Domestic Savings, Employed Labour Force, Capital Formation, Human Capital Index and Balance of Trade. The study examines the causality among economic Growth and all variables mentioned above over the period 1972-2005 using Johansen‟s maximum likelihood co-integration test and multivariate Granger causality test developed by Yamamoto and Toda (1995). The results of Granger causality indicated that in the short run, economic growth is caused by FDIs, domestic savings, human capital index, employed labour force and balance of trade.
Foreign Direct Investment, Economic Growth, Causality, Human Capital Index.
Empirically Testing the Mediating Effect of Distributive Justice in the Relationship between Adequacy of Benefits and Personal Outcomes
This study was conducted to examine the effect of adequacy of benefits and distributive justice on personal outcomes (i.e., job satisfaction and organizational commitment) using 583 usable questionnaires gathered from Malaysian public institutions of higher learning (PLEARNINGINSTITUTE sector). The outcomes of step-wise regression analysis showed that the inclusion of distributive justice in the analysis has increased the effect of adequacy of benefits on both job satisfaction and organizational commitment. Furthermore, the findings of this study confirm that distributive justice do act as a partial mediating variable in the benefits program models of the organizational sector sample. In addition, implications and limitations, as well as directions for future research are discussed.
Adequacy of Benefits, Distributive Justice, Personal Outcomes.
Evaluation of Shortest Paths in Road Network
Optimization is a key factor in almost all the topics of operations research / management science and economics. The road networks can be optimized within different constraints like time, distance, cost and traffic running on the roads. This study is based on optimization of real road network by means of distances. Two main objectives are pursued in this research: 1) road distances among different routes are composed in detail; 2) two standard algorithms (Dijkstra and Floyd-Warshall algoritms) are applied to optimize/minimize these distances for both single-source and all-pairs shortest path problems.
Shortest Path, Dijkstra Algorithm, Floyd-Warshall Algorithm, Road Networks
Comparing Standards of Business Ethics in USA, China, Jamaica and Pakistan
As the business organizations are expanding at a rapid pace, so is the circulation of human resources the world over. Managers and workers are required to work in different socio economic environments which, at times, may not be similar to those of their home countries. It is imperative therefore for business organizations and individuals to acquire in depth knowledge about the culture and business ethics prevailing in the country of interest. A number of scholars have undertaken research studies to compare the standards of Business Ethics of different countries but such a research on “the Standards of Business Ethics” has been carried out for the first time in Pakistan. Interestingly, either such studies have been carried out in developed countries like Europe, America and Far East or the researchers have been from these countries. The conduct of such a study in Pakistan by a Pakistani would be the first of its nature. Some of the internationally accepted norms have been used as scenarios and respondents have been asked to indicate possibility of their reaction to take action. They have also been asked to give rationale of their decision. An effort has been made in this study, to compare the standards of business ethics of Pakistani business professionals with those of other countries of the world. This would help adjudge differences and similarities of well-established universal norms and ethics prevailing in the world business community. It is expected that this and more such studies would help researchers and business professionals develop good and desirable business practices in Pakistan.Comparing and enhancing awareness about standards of business ethics in Pakistan is the main objective of this research. It is expected that this humble effort would encourage many more researchers to dive deep into the ocean of business ethics.
Business Ethics, Ethical Standards, Social Ethics, Morality in Business, Business Norms
Does Nominal Devaluation Precede Real Devaluation in Floating Exchange Rate Regime? An Empirical Investigation for Ghana
This paper attempts to examine the link between nominal devaluation and real devaluation with special reference to Ghana. To find this relationship, we have employed some sophisticated tests such as ADF, P-P & Ng-Perron unit root tests; ARDL Bounds Testing, and DOLS test for the long run correlation. The findings of the study suggest that nominal devaluation leads to real devaluation both in the long run and in the short run in the case of Ghana.
Nominal devaluation, real devaluation, Inflation, exchange rate regime, Ghana.
Stock Market Liquidity: A Case Study of Karachi Stock Exchange
A market is to be considered as liquid when large transactions are executed with a small impact on price. This paper identifies the position of stock market liquidity at Karachi Stock Exchange (KSE) during the period from 1985 to 2006. The analysis is based on using annual data of the listed firms at KSE and the data available on economic survey of the Government of Pakistan and other sources. For measurements of liquidity at KSE we have used three measuring tools as; Liquidity Analysis, Turnover Ratio and Size of Market to determine the liquidity issues at KSE. We provide the evidences of less stock market liquidity or to say illiquidity at Karachi Stock Exchange during the sample period. Consequently, market is still for behind in its efficiency, especially in liquidity hence it fails to attract new investors. We find that less liquidity causes less synchronicity in prices attracting less inventors and results is low size of market.
Stock Market Liquidity, Turnover ratio, Aggregate Market Capitalization, Size of Stock Market, Portfolio investors
Formal Mentoring, Gender Type in Mentorship and Individuals’ Psychosocial: A Moderating Model Approach
Formal mentoring is a type of training and development program and if mentors can properly implement the related activities, may lead to increased individuals’ psychosocial. More importantly, recent studies in this area have revealed that the effect of formal mentoring on individuals’ psychosocial has not been consistent if gender type played an active role in organizations. The aim of this study is, therefore, to examine the effect of formal mentoring and gender type on individuals’ psychosocial based on information derived from 153 usable questionnaires administered to employees who have worked in the selected public university in Sarawak, Malaysia (SRWKUNIV). The outcomes of hierarchical regression analysis showed that interaction between same-gender and formal mentoring, and interaction between cross-gender and formal mentoring positively and significantly correlated with individuals’ psychosocial. The results confirm that gender type does act as a full moderating variable in the formal mentoring model of the organizational sample. In addition, implications and discussions are elaborated.
Formal Mentoring, Gender type, Individuals’ Psychosocial, Malaysia
The Nexus between Higher Education and Economic Growth: An Empirical Investigation for Pakistan
The study investigates the role of higher education in economic growth for Pakistan between 1972 and 2005 using the application of Johansen Cointegration and Toda & Yamamoto (1995) Causality approach in Vector Autoregressive (VAR) framework. It examines whether higher education affect long run economic growth in Pakistan. The empirical analysis reveals that there is a long run relationship between economic growth and higher education, which suggests that these variables are necessary for each other. The empirical results of causality test indicate that there exists a unidirectional causality running from economic growth to higher education and no other direction of causality found between these variables.
Pakistan, Higher Education, Economic Growth, Cointegration and Causality.
MUNIF: A Brand Name in Innovation of Shari'ah Compliant Note Issuance for Islamic Capital Market
This applied study was aimed at giving an insight to practitioners and academicians as well as investors and interested parties in understanding the process of a form of shari’ah-compliant note issuance (shahadah al-dayn). As such, the shari’ah related principles were clearly explained. Observation and scrutiny on the contents of documentation and transaction involved in handling this instrument were thoroughly carried out. Based on the archival study, a simple model of note issuance is proposed in this study. Thus, contributions in term of an innovation can offer a new knowledge to the practitioners as well as academicians and the interested parties of this capital market instrument. Qualitative method of research and descriptive approach to research were applied in this study as they were appropriate in looking into the research issue understudied. Capitalizing on the explored and examined instrument shall then become the basis in innovating more sophisticated models for multiplicity of instruments to be made available in the capital market both for domestic and foreign markets.
Shahadah al-dayn, murabahah, debt and Shari’ah-compliant.
Copyright (c) 2010 Pakistan Journal of Commerce and Social Sciences (ISSN 1997-8553)
The Relationship between Ethical Brand and Company Reputation: The Malaysian Perspective
This paper reports the initial finding on examination of the effect of product and service quality on ‘ethical brand’, which in turn may influence a company’s reputation among industrial buyers that use electronic office equipment. The current study is informed by 50 experienced industrial buyers when buying electronic office equipment in Malaysia. The initial result does show that ethical brand has a full mediation impact on corporate reputation. In general, this study adds to the existing literature on branding and reputation by introducing the concept of the ‘ethical brand’ in order to understand the formation of a company reputation.
Ethical brand, company’s reputation, corporate reputation, industrial buyers
The Intellectual Capital Performance of Banking Sector in Pakistan
Efficiency in using of resources plays an important role in determining the strength of the organization. Efficiency measured purely on financial variables does not give the true picture especially in sectors which are intellectual capital intensive. The present paper is an attempt to measure the performance of banks in Pakistan on a new dimension of intellectual capital. This paper estimates the value added intellectual capital (VAIC) of the banks in Pakistan for a 2 year period. The study concludes that the private sector banks were doing much better than all other banks in Pakistan on intellectual capital efficiency levels. The good performance is attributed to efficient usage and management of human resources.
human capital, structural capital, banking sector, Pakistan.
Evaluating Effectiveness of External Auditors’ Report: Empirical Evidence from Iran
This study emphasizes that it is interesting to study the opinion of the auditor as intermediary information between the company and external users throughout audit report. Throughout questionnaire usable data were collected from different participants. The results of this study show that audit report is easily understandable from various stakeholders in Iran and it is cornerstone to investment making decision.
A Natural Resource Management Framework for Sustainable Development
Natural resources in the form of oil, gas, minerals and forests are an asset in the countries where they are found. A number of countries depend largely on exports of their natural resources, earning major portion of their foreign exchange from these exports. It is very easy for the countries to exhaust their natural resources by over utilization of these resources. Policy makers may overlook sustainability aspect of the natural assets and resultantly, design policies to obtain short term gains while ignoring long term implications. Another problem faced by countries depending heavily on export of natural resources is that their revenue generation capacities from service sector or export of other items is overlooked in policy decisions. The paper presents a framework that may be used by policymakers for visualizing country’s natural resources as assets and developing policies for gaining maximum economic benefits from these assets, but at the same time, taking care that these assets are developed and preserved for the next generations. The paper suggests that the countries should view natural resources as critical asset and secondly, asset specific strategies should be formed for their development. It is emphasized that these asset specific strategies should be designed in such a manner as they do not work against one another and are aligned with the overall economic plan of the country.
natural resources, natural resource management framework, sustainable development.
Analyzing Financial Performance of Commercial Banks in India: Application of CAMEL Model
Sound financial health of a bank is the guarantee not only to its depositors but is equally significant for the shareholders, employees and whole economy as well. As a sequel to this maxim, efforts have been made from time to time, to measure the financial position of each bank and manage it efficiently and effectively. In this paper, an effort has been made to evaluate the financial performance of the two major banks operating in northern India .This evaluation has been done by using CAMEL Parameters, the latest model of financial analysis. Through this model, it is highlighted that the position of the banks under study is sound and satisfactory so far as their capital adequacy, asset quality, Management capability and liquidity is concerned.
financial performance, commercial banks, capital Adequacy, asset quality, management capability, earnings analysis, liquidity analysis.
The Effect of CSR Disclosure on Institutional Ownership
This study attempts to address the question of whether Corporate Social Responsibility Disclosure (CSRD) has any impact to institutional investors of the public limited companies (PLC) in Malaysia. Despite CSRD being at a nascent stage in Malaysia, such reporting is found to be positively related to institutional ownership and these results provide evidence that is consistent with the conjecture that institutional investors pay attention to the way Malaysian companies manage their social issues. Using longitudinal data analysis, the findings of this study solidly support the outcome of the majority of results in developed markets. This result suggests that local firms are able to attract and maintain their institutional investors while they engage in social activities.
corporate social responsibility (CSR), corporate social responsibility disclosure (CSRD), institutional ownership (IO), fixed effects model (FEM), Bursa Malaysia.
An Experimental Study of Total Quality Management Application in Learning Activity: Indonesia’s Case Study
Babbar’s study (1995) on the application of total quality management (TQM) to educational instruction in US universities has provided the idea for the current experimental study. The purpose of this study is to analyze the effectiveness of TQM implementation in Indonesian higher education educational activities. This study is a causal research that analyzes the effect of independent variable on the dependent variable. It is proposed to find the effect of TQM implementation on the effectiveness of educational activities. The data was collected with experiment methods which involved the researcher to manipulate the variables and observe for the effects. The experimental design that used in the study was a pretest and posttest experimental and control group design, therefore it utilized two group of participants (experimental and control groups). The finding of the study supports the hypothesis that TQM implementation increases the effectiveness of educational activities. TQM implementation as a treatment has a positive effect on the effectiveness of educational activities. Student’s evaluation of the effectiveness of educational activities shows the higher score after the treatment.
experimental study, TQM, educational activities, Indonesia
Estimating Income Variances by Probability Sampling: A Case Study
The main focus of the study is to estimate variability in income distribution of households by conducting a survey. The variances in income distribution have been calculated by probability sampling techniques. The variances are compared and relative gains are also obtained. It is concluded that the income distribution has been better as compared to first Household Income and Expenditure Survey (HIES) conducted in Pakistan 1993-94.
Variability, Income distribution, Probability Sampling, Relative gain, Gini Coefficient.
Group Acceptance Sampling Plan for Lifetime Data Using Generalized Pareto Distribution
In this paper, a group acceptance sampling plan (GASP) is introduced for the situations when lifetime of the items follows the generalized Pareto distribution. The design parameters such as minimum group size and acceptance number are determined when the consumer’s risk and the test termination time are specified. The proposed sampling plan is compared with the existing sampling plan. It is concluded that the proposed sampling plan performs better than the existing plan in terms of minimum sample size required to reach the same decision.
Group sampling plan, generalized Pareto distribution, consumer’s risk, producer’s risk, operating characteristics.