The purpose of the study is to observe the impact of policy intervention on financial sustainabil... more The purpose of the study is to observe the impact of policy intervention on financial sustainability using the structural vector autoregression (SVAR) analysis. The population of the study is the manufacturing sector of Pakistan, which is an emerging economy. Data for 249 firms operating in the manufacturing sector are taken, collected from Datastream from 2005 to 2019, with total observations of 2,400. To conduct the analysis, R software is used for its better visualization. Results show that firm performance, corporate governance, and sectoral policies have a positive and long-term impact on financial sustainability, whereas earning management and financialization not only have a negative impact, but this impact affects the operations of the corporate for a longer period. This study would be helpful for policymakers as it gives a framework for financial sustainability based on the policies and strategies developed by the sector.
Journal of Islamic Accounting and Business Research
Purpose The purpose of this study is to highlight key issues pertaining to making use of Islamic ... more Purpose The purpose of this study is to highlight key issues pertaining to making use of Islamic equity indices and proposing possible solutions to address the problems faced in advancement of the concept of Shariah investing (SI) with the aim to advance the discourse on the subject. Design/methodology/approach Online focus group discussion (FGD) was carried out in which ten Islamic finance researchers and analysts belonging to institutions considered as authority on the subject matter participated to share their viewpoints on Islamic equity indices. Content analysis on the collected data of FGD was carried out which has revealed six key themes. Findings Six broader themes were identified based on the analysis of FGD, which includes criteria for constructing Islamic equity indices, utilization of Islamic equity indices for comparison with conventional stock indices, stock market efficiency perspectives, reason for integration of different equity markets, investors’ awareness of SI a...
The aim of this study is to examine the transmission of contemporaneous spillover effects from th... more The aim of this study is to examine the transmission of contemporaneous spillover effects from the world Islamic equity market to emerging Islamic equity markets. Geweke (1982) measure as an extension of Granger causality test (1969) has been used using daily index data from 1 st September 2010 to 30 th September 2017. The results confirm transmission of contemporaneous spillover effects from MSCI World Islamic Equity Market to all the selected ten Emerging Islamic Equity Markets during the period of study.
The idea of profit and loss sharing in Islamic financial institution discriminates it from conven... more The idea of profit and loss sharing in Islamic financial institution discriminates it from conventional financial institutions on the basis of activities and funding structure. Islamic bank operations are affected by a variety of operational risks (Abdullah et al.2011; Radzi & Lonik, 2016). Two credit rating agencies PACRA and JC-VIS are evaluating the creditability of Pakistani Islamic banks. JC-VIS has the same credit rating methodology for all commercial banks without any discrimination of Islamic and conventional Banks (Jcr-vis's, 2018b). Three factors, operating environment, standalone profile, and external support are considered in the credit rating evaluation.
Current study aims to investigate the impact of institutional governance (GOV), trade openness (T... more Current study aims to investigate the impact of institutional governance (GOV), trade openness (TOPEN), real output (RGDP), economic freedom (EFR), inflation rate (INFR) and real output growth on f...
International migrant remittances are possibly the largest source of external finance in developi... more International migrant remittances are possibly the largest source of external finance in developing countries and this inflow have has considerable importance in the development of the financial sector. The present study aimed to analyze the link between workers remittances and development of the financial sector in the context of Pakistan. To carry out this empirical analysis, the study utilized a data set of annual frequency ranging from 1980 to 2015 (post-liberalization period). The econometric methodology of Auto-Regressive Distributed Lag (ARDL) has been used to get the short-run and long-run elasticities of the model. Overall findings suggested that there is a strong positive link between the inflow of remittances and the development of the financial sector in the context of Pakistan.
The increased access and availability of information technology solutions have brought structural... more The increased access and availability of information technology solutions have brought structural shifts in traditional business models, processes, and activities worldwide. As a result, the innova...
This paper tried to assess the nature of relationship betweenfinancial sector openness and financ... more This paper tried to assess the nature of relationship betweenfinancial sector openness and financial sector deepening forPakistan. The study utilized data set of annual frequency onfinancial sector openness index, institutional quality index,trade openness and a set of control variables over a periodfrom 1995 to 2018. The application of econometric method ofAutoregressive Distributed Lag Model (ARDL) confirmed theextensively debated long run association, and after havingestablished this, found the estimates (both short run and longrun). Results demonstrated that financial openness andinstitutional quality improve the quality of financial sectorefficiency in Pakistan for short run; however, in the long runfinancial openness did not lead financial sector development.These findings indicate that policies promote financial sectoropenness appear to help Pakistan to derive the benefits ofquality of financial sector efficiency. Our analysis suggeststhat there are unavoidable risks associat...
Inflation is not just a rise in general price level, but a much more complex phenomenon. It is we... more Inflation is not just a rise in general price level, but a much more complex phenomenon. It is well admitted fact that mild inflation is natural and a greasing factor to the wheel of economy and commerce and on the other hand, high inflation causes negative impact on economy. In order to formulate policies regarding its control and keeping it at a moderate level, it is necessary to explore its major determinants. Present study is an attempt to discuss the determinants of inflation in Pakistan utilizing a data set over 1975 to 2015. The empirical analysis is carried out with application of Auto Regressive Distributed Lag methodology. The estimation methods find the short run and long run impact of each variable on inflation and also found the speed of adjustment. Analysis used money supply, national expenditure, imports of goods and services and GDP growth as exogenous variables while taking inflation as an endogenous variable. Major preliminary findings suggested that money supply a...
Pakistan, like other developing countries across the world faces the resource constraint and attr... more Pakistan, like other developing countries across the world faces the resource constraint and attracts foreign capital in the form of foreign direct investment (FDI). This shortage of financial resources is caused due to gap between saving and investment. A number of factors affect the inflow of foreign direct investment, including variations in exchange rate and inflation rate in a country. The present study is conducted to explore the link between FDI and exchange rate and inflation rate. For empirical analysis it utilized annual data set ranging from 1975 to 2015 and applied econometric methodology of Vector Error Correction Method (VECM). The checking of time series characteristics of all variables is followed by testing the existence of long run relationship and finally estimation of short run and long run elasticities of the model. Major findings confirmed the existence of long run relationship between FDI and exchange rate and inflation. Major policy recommendations include th...
Universities and colleges provide education, however it is found that education alone is not enou... more Universities and colleges provide education, however it is found that education alone is not enough to achieve the high performance indices in practical work environment. Against this background there is a growing trend among the educational institutions and research houses for providing mentoring and internship opportunities to university graduates and undergraduate students. An ideal internship provides graduates with job opportunities in their field of interest and major. As a consequence of such programs, students gain practical experience with high work ethics and confidence in their interpersonal and communication abilities. The present study is conducted to find the outcomes of National Internship Programme (NIP) introduced in Pakistan for graduates during 2006 to 2010. A questionnaire survey was conducted, which included a total number of 90 graduate internees who availed this internship in different educational and public organizations all over the Punjab.
Ali Burhan Khana*, Abdelkader Alghorbanyb, Tria Djihadc, Nesba Messaoudad, Nazima Ellahie, a,cPhD... more Ali Burhan Khana*, Abdelkader Alghorbanyb, Tria Djihadc, Nesba Messaoudad, Nazima Ellahie, a,cPhD. Scholar, School of Economics, Finance and Banking University Utara Malaysia, Malaysia, bPhD. Scholar, School of Accountancy University Utara Malaysia, Malaysia, dAssociate Professor, Faculty of Economics, Commercial Sciences and Management Sciences University Mohamed khider, eAssociate Professor, Department of Economics and Finance Foundation University Islamabad, Email: a*aliburhan963@gmail.com, bKalghorbany@gmail.com, ctriadjihad@gmail.com, dmessaouda.nesba@univ-biskra.dz, enazimaellahi@fui.edu.pk
Shariah Governance is an essential characteristic that differentiates Islamic financial instituti... more Shariah Governance is an essential characteristic that differentiates Islamic financial institutions from Conventional financial institutions. The study’s purpose is to explore the effect of corporate governance attributes and Shariah board attributes on the long term and short-term credit rating of Islamic banks in Pakistan. The study develops six different models based on corporate board characteristics, Shariah board attributes and credit ratings, and collected data from annual reports of Pakistani Islamic banks for the period 2013- 2019. This study used Long term credit rating scale used by Grassa (2016) and, Ashbaugh-Skaife, Collins, and LaFond (2006), and developed a Short term credit rating scale. The study applied descriptive statistics, correlations and ordered logit regression. The results confirmed that corporate governance and Shariah governance attributes are significantly associated with the long term and short-term credit ratings of Islamic banks. The study concludes ...
A more regulated and better working financial sector contributes toward achieving monetary growth... more A more regulated and better working financial sector contributes toward achieving monetary growth based on proficient resource allocation and reducing information asymmetries. Current trends in research highlight the significance of factors determining the financial sector’s development; therefore, this study explores the institutional drivers, which are indispensable for developing the financial industry in the South Asian Association of Regional Cooperation (SAARC) region. Specifically, it examines the impact of institutional factors, trade openness, real output, legal origin, and inflation on the financial sector’s development. By employing the panel data method of generalized method of moments (GMM), the study concluded that trade openness, institutional factors, legal origin, and real gross domestic product (GDP) have a positive and significant impact on financial depth. However, the inflation rate has been found to affect it negatively. Finally, the study presents policy recom...
Journal of Open Innovation: Technology, Market, and Complexity, 2020
This study aimed to investigate the association between corporate governance characteristics, sha... more This study aimed to investigate the association between corporate governance characteristics, shariah governance characteristics, and the credit rating of Asian Islamic banks. To do so, we collected data from 22 banks during the 2006–2018 period. In total, we observed 286 data points. Credit rating was measured through an adaption of the credit rating scale that measured the long term credit of Islamic banks on an ordinal scale. From these data, 19 scores (Aaa) were considered high credit ratings and 1 score (C) was considered a low credit rating. Descriptive statistics, correlations, and the ordered logit regression model were applied in a panel setting. We found that the board interlock, board independence, CEO duality, and board foreign directorship negatively affected credit ratings. We also found that the board size, board accounting, finance knowledge, presence of women on the board, shariah board size, presence of supervisory shariah board, the shariah board interlock, and pr...
Women entrepreneurs suffer from various obstacles, such as gender gap or discrimination, few year... more Women entrepreneurs suffer from various obstacles, such as gender gap or discrimination, few years of business experience and limited access to financing. The first part of this study explains the theoretical base of the Islamic microfinance, going through religious and ethical principles and financial contracts related to these principles. By using these theoretical aspects, the present study tried to evidence the main reasons for the “feminization of microfinance” in Pakistan. This study tries to answers, why, Islamic microfinance is an answer to improvement in women entrepreneurship. The second part of this study highlights social and environmental factors acting as a hindrance to female-entrepreneurship development. The primary data set is collected through field surveys from major administrative units of Pakistan to make sample more representative of Pakistan, where major Islamic micro-financing institutions are in operation.
To meet the developmental goals and fulfill the domestic labor demand of Saudi Arabia, more than ... more To meet the developmental goals and fulfill the domestic labor demand of Saudi Arabia, more than 9.5 million skilled, semi-skilled and highly skilled workers from across the world are imported. After the United States of America (USA), it is the second-largest which is responsible for the larger outflow of remittances. This study is an empirical investigation to explore the impact of remittances outflow on the economic growth activity of Saudi Arabia. Furthermore, it also tests whether this outflow causes inflation in the Saudi economy. For the sack of empirical investigation, this study utilized annual time series data ranging from 1970 to 2017. Before estimating the shortrun and long-run estimates by the application of the AutoRegressive Distributed Lag (ARDL) method, time-series properties of data are explored using the Augmented Dicky Fuller (ADF) test.
The study explores how bureaucratic efficiency effects international trade in Bangladesh, Pakista... more The study explores how bureaucratic efficiency effects international trade in Bangladesh, Pakistan, India, and Srilanka. A composite indicator of government effectiveness is used to measure bureaucratic efficiency and model is estimated by using the SYS-GMM. It is well recognized that bureaucratic efficiency is vital to the enhancement of trade, whereas the result shows that a negative relationship exists between bureaucratic efficiency and trade openness. Similarly, encouraging link exists between government size and international trade as the government provides different services to enhance the trade at the international market.
The purpose of the study is to observe the impact of policy intervention on financial sustainabil... more The purpose of the study is to observe the impact of policy intervention on financial sustainability using the structural vector autoregression (SVAR) analysis. The population of the study is the manufacturing sector of Pakistan, which is an emerging economy. Data for 249 firms operating in the manufacturing sector are taken, collected from Datastream from 2005 to 2019, with total observations of 2,400. To conduct the analysis, R software is used for its better visualization. Results show that firm performance, corporate governance, and sectoral policies have a positive and long-term impact on financial sustainability, whereas earning management and financialization not only have a negative impact, but this impact affects the operations of the corporate for a longer period. This study would be helpful for policymakers as it gives a framework for financial sustainability based on the policies and strategies developed by the sector.
Journal of Islamic Accounting and Business Research
Purpose The purpose of this study is to highlight key issues pertaining to making use of Islamic ... more Purpose The purpose of this study is to highlight key issues pertaining to making use of Islamic equity indices and proposing possible solutions to address the problems faced in advancement of the concept of Shariah investing (SI) with the aim to advance the discourse on the subject. Design/methodology/approach Online focus group discussion (FGD) was carried out in which ten Islamic finance researchers and analysts belonging to institutions considered as authority on the subject matter participated to share their viewpoints on Islamic equity indices. Content analysis on the collected data of FGD was carried out which has revealed six key themes. Findings Six broader themes were identified based on the analysis of FGD, which includes criteria for constructing Islamic equity indices, utilization of Islamic equity indices for comparison with conventional stock indices, stock market efficiency perspectives, reason for integration of different equity markets, investors’ awareness of SI a...
The aim of this study is to examine the transmission of contemporaneous spillover effects from th... more The aim of this study is to examine the transmission of contemporaneous spillover effects from the world Islamic equity market to emerging Islamic equity markets. Geweke (1982) measure as an extension of Granger causality test (1969) has been used using daily index data from 1 st September 2010 to 30 th September 2017. The results confirm transmission of contemporaneous spillover effects from MSCI World Islamic Equity Market to all the selected ten Emerging Islamic Equity Markets during the period of study.
The idea of profit and loss sharing in Islamic financial institution discriminates it from conven... more The idea of profit and loss sharing in Islamic financial institution discriminates it from conventional financial institutions on the basis of activities and funding structure. Islamic bank operations are affected by a variety of operational risks (Abdullah et al.2011; Radzi & Lonik, 2016). Two credit rating agencies PACRA and JC-VIS are evaluating the creditability of Pakistani Islamic banks. JC-VIS has the same credit rating methodology for all commercial banks without any discrimination of Islamic and conventional Banks (Jcr-vis's, 2018b). Three factors, operating environment, standalone profile, and external support are considered in the credit rating evaluation.
Current study aims to investigate the impact of institutional governance (GOV), trade openness (T... more Current study aims to investigate the impact of institutional governance (GOV), trade openness (TOPEN), real output (RGDP), economic freedom (EFR), inflation rate (INFR) and real output growth on f...
International migrant remittances are possibly the largest source of external finance in developi... more International migrant remittances are possibly the largest source of external finance in developing countries and this inflow have has considerable importance in the development of the financial sector. The present study aimed to analyze the link between workers remittances and development of the financial sector in the context of Pakistan. To carry out this empirical analysis, the study utilized a data set of annual frequency ranging from 1980 to 2015 (post-liberalization period). The econometric methodology of Auto-Regressive Distributed Lag (ARDL) has been used to get the short-run and long-run elasticities of the model. Overall findings suggested that there is a strong positive link between the inflow of remittances and the development of the financial sector in the context of Pakistan.
The increased access and availability of information technology solutions have brought structural... more The increased access and availability of information technology solutions have brought structural shifts in traditional business models, processes, and activities worldwide. As a result, the innova...
This paper tried to assess the nature of relationship betweenfinancial sector openness and financ... more This paper tried to assess the nature of relationship betweenfinancial sector openness and financial sector deepening forPakistan. The study utilized data set of annual frequency onfinancial sector openness index, institutional quality index,trade openness and a set of control variables over a periodfrom 1995 to 2018. The application of econometric method ofAutoregressive Distributed Lag Model (ARDL) confirmed theextensively debated long run association, and after havingestablished this, found the estimates (both short run and longrun). Results demonstrated that financial openness andinstitutional quality improve the quality of financial sectorefficiency in Pakistan for short run; however, in the long runfinancial openness did not lead financial sector development.These findings indicate that policies promote financial sectoropenness appear to help Pakistan to derive the benefits ofquality of financial sector efficiency. Our analysis suggeststhat there are unavoidable risks associat...
Inflation is not just a rise in general price level, but a much more complex phenomenon. It is we... more Inflation is not just a rise in general price level, but a much more complex phenomenon. It is well admitted fact that mild inflation is natural and a greasing factor to the wheel of economy and commerce and on the other hand, high inflation causes negative impact on economy. In order to formulate policies regarding its control and keeping it at a moderate level, it is necessary to explore its major determinants. Present study is an attempt to discuss the determinants of inflation in Pakistan utilizing a data set over 1975 to 2015. The empirical analysis is carried out with application of Auto Regressive Distributed Lag methodology. The estimation methods find the short run and long run impact of each variable on inflation and also found the speed of adjustment. Analysis used money supply, national expenditure, imports of goods and services and GDP growth as exogenous variables while taking inflation as an endogenous variable. Major preliminary findings suggested that money supply a...
Pakistan, like other developing countries across the world faces the resource constraint and attr... more Pakistan, like other developing countries across the world faces the resource constraint and attracts foreign capital in the form of foreign direct investment (FDI). This shortage of financial resources is caused due to gap between saving and investment. A number of factors affect the inflow of foreign direct investment, including variations in exchange rate and inflation rate in a country. The present study is conducted to explore the link between FDI and exchange rate and inflation rate. For empirical analysis it utilized annual data set ranging from 1975 to 2015 and applied econometric methodology of Vector Error Correction Method (VECM). The checking of time series characteristics of all variables is followed by testing the existence of long run relationship and finally estimation of short run and long run elasticities of the model. Major findings confirmed the existence of long run relationship between FDI and exchange rate and inflation. Major policy recommendations include th...
Universities and colleges provide education, however it is found that education alone is not enou... more Universities and colleges provide education, however it is found that education alone is not enough to achieve the high performance indices in practical work environment. Against this background there is a growing trend among the educational institutions and research houses for providing mentoring and internship opportunities to university graduates and undergraduate students. An ideal internship provides graduates with job opportunities in their field of interest and major. As a consequence of such programs, students gain practical experience with high work ethics and confidence in their interpersonal and communication abilities. The present study is conducted to find the outcomes of National Internship Programme (NIP) introduced in Pakistan for graduates during 2006 to 2010. A questionnaire survey was conducted, which included a total number of 90 graduate internees who availed this internship in different educational and public organizations all over the Punjab.
Ali Burhan Khana*, Abdelkader Alghorbanyb, Tria Djihadc, Nesba Messaoudad, Nazima Ellahie, a,cPhD... more Ali Burhan Khana*, Abdelkader Alghorbanyb, Tria Djihadc, Nesba Messaoudad, Nazima Ellahie, a,cPhD. Scholar, School of Economics, Finance and Banking University Utara Malaysia, Malaysia, bPhD. Scholar, School of Accountancy University Utara Malaysia, Malaysia, dAssociate Professor, Faculty of Economics, Commercial Sciences and Management Sciences University Mohamed khider, eAssociate Professor, Department of Economics and Finance Foundation University Islamabad, Email: a*aliburhan963@gmail.com, bKalghorbany@gmail.com, ctriadjihad@gmail.com, dmessaouda.nesba@univ-biskra.dz, enazimaellahi@fui.edu.pk
Shariah Governance is an essential characteristic that differentiates Islamic financial instituti... more Shariah Governance is an essential characteristic that differentiates Islamic financial institutions from Conventional financial institutions. The study’s purpose is to explore the effect of corporate governance attributes and Shariah board attributes on the long term and short-term credit rating of Islamic banks in Pakistan. The study develops six different models based on corporate board characteristics, Shariah board attributes and credit ratings, and collected data from annual reports of Pakistani Islamic banks for the period 2013- 2019. This study used Long term credit rating scale used by Grassa (2016) and, Ashbaugh-Skaife, Collins, and LaFond (2006), and developed a Short term credit rating scale. The study applied descriptive statistics, correlations and ordered logit regression. The results confirmed that corporate governance and Shariah governance attributes are significantly associated with the long term and short-term credit ratings of Islamic banks. The study concludes ...
A more regulated and better working financial sector contributes toward achieving monetary growth... more A more regulated and better working financial sector contributes toward achieving monetary growth based on proficient resource allocation and reducing information asymmetries. Current trends in research highlight the significance of factors determining the financial sector’s development; therefore, this study explores the institutional drivers, which are indispensable for developing the financial industry in the South Asian Association of Regional Cooperation (SAARC) region. Specifically, it examines the impact of institutional factors, trade openness, real output, legal origin, and inflation on the financial sector’s development. By employing the panel data method of generalized method of moments (GMM), the study concluded that trade openness, institutional factors, legal origin, and real gross domestic product (GDP) have a positive and significant impact on financial depth. However, the inflation rate has been found to affect it negatively. Finally, the study presents policy recom...
Journal of Open Innovation: Technology, Market, and Complexity, 2020
This study aimed to investigate the association between corporate governance characteristics, sha... more This study aimed to investigate the association between corporate governance characteristics, shariah governance characteristics, and the credit rating of Asian Islamic banks. To do so, we collected data from 22 banks during the 2006–2018 period. In total, we observed 286 data points. Credit rating was measured through an adaption of the credit rating scale that measured the long term credit of Islamic banks on an ordinal scale. From these data, 19 scores (Aaa) were considered high credit ratings and 1 score (C) was considered a low credit rating. Descriptive statistics, correlations, and the ordered logit regression model were applied in a panel setting. We found that the board interlock, board independence, CEO duality, and board foreign directorship negatively affected credit ratings. We also found that the board size, board accounting, finance knowledge, presence of women on the board, shariah board size, presence of supervisory shariah board, the shariah board interlock, and pr...
Women entrepreneurs suffer from various obstacles, such as gender gap or discrimination, few year... more Women entrepreneurs suffer from various obstacles, such as gender gap or discrimination, few years of business experience and limited access to financing. The first part of this study explains the theoretical base of the Islamic microfinance, going through religious and ethical principles and financial contracts related to these principles. By using these theoretical aspects, the present study tried to evidence the main reasons for the “feminization of microfinance” in Pakistan. This study tries to answers, why, Islamic microfinance is an answer to improvement in women entrepreneurship. The second part of this study highlights social and environmental factors acting as a hindrance to female-entrepreneurship development. The primary data set is collected through field surveys from major administrative units of Pakistan to make sample more representative of Pakistan, where major Islamic micro-financing institutions are in operation.
To meet the developmental goals and fulfill the domestic labor demand of Saudi Arabia, more than ... more To meet the developmental goals and fulfill the domestic labor demand of Saudi Arabia, more than 9.5 million skilled, semi-skilled and highly skilled workers from across the world are imported. After the United States of America (USA), it is the second-largest which is responsible for the larger outflow of remittances. This study is an empirical investigation to explore the impact of remittances outflow on the economic growth activity of Saudi Arabia. Furthermore, it also tests whether this outflow causes inflation in the Saudi economy. For the sack of empirical investigation, this study utilized annual time series data ranging from 1970 to 2017. Before estimating the shortrun and long-run estimates by the application of the AutoRegressive Distributed Lag (ARDL) method, time-series properties of data are explored using the Augmented Dicky Fuller (ADF) test.
The study explores how bureaucratic efficiency effects international trade in Bangladesh, Pakista... more The study explores how bureaucratic efficiency effects international trade in Bangladesh, Pakistan, India, and Srilanka. A composite indicator of government effectiveness is used to measure bureaucratic efficiency and model is estimated by using the SYS-GMM. It is well recognized that bureaucratic efficiency is vital to the enhancement of trade, whereas the result shows that a negative relationship exists between bureaucratic efficiency and trade openness. Similarly, encouraging link exists between government size and international trade as the government provides different services to enhance the trade at the international market.
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Papers by Nazima Ellahi