Income smoothing refers to the use of accounting techniques to level out net income fluctuations ... more Income smoothing refers to the use of accounting techniques to level out net income fluctuations from one period to the next. Companies indulge in this practice to manipulate the earnings over the period in order to lower the level of uncertainty. The companies with constant earnings attract more investors as they are willing to pay more prices for company's stock. This study examine the presence of artificial income smoothing in 64 Shari'ah compliant companies listed in the financial market of Pakistan for the period 2008-2015. The study also takes into consideration the concept of income smoothing from an Islamic perspective. To achieve the study's objectives, Eckel's index model is used. The study found that 34 percent of the companies are non-smoothers and 66 percent of the companies are smoothers in pooled sample. Among high market capitalized 32 companies, 37.5 percent of the companies are non-smoothers and 62.5 percent are smoothing companies. In 32 low market capitalized companies, 31 percent companies are non-smoothing and 69 percent companies are practicing income smoothing.
Dynamic Green (Pvt.) Limited is the latest initiative of the Dynamic group of companies to tackle... more Dynamic Green (Pvt.) Limited is the latest initiative of the Dynamic group of companies to tackle the most challenging issue faced by Pakistan that is energy crisis. In Pakistan, the manufacturing industry, businesses, and households face energy shortfalls. To achieve the objective of reduction in energy crises, Dynamic Green (Pvt.) Limited has started the first integrated energy project. The aim of this study is to explore the delay factors and their causes in an integrated energy project by Dynamic Green (Pvt.) Limited. Qualitative research methodology was used in this study. Data was collected through semi-structured interviews conducted with those employees of Dynamic Green (Pvt.) Limited who had been actively involved in this integrated energy project. NVivo v11 software was used to analyze the critical delay factors and their causes. By applying the word cloud and thematic analysis, the study found that communication gap, improper planning, incomplete documents, poor organizational processes, stakeholders' conflicts, lack of coordination between project coordinators, unskilled labor, procurement issues, and poor evaluation of vendor selection were significant delay factors in the integrated energy project. These findings are expected to be a noteworthy contribution of this study which recommends practical solutions to prevent further delays in the future.
Viability of Employability Skills for Islamic Banking and Finance Graduates Employment; Case of Islamic Banks of Pakistan
Global Economics Review
The Islamic finance human capital demand is accelerating with a rapidly growing Islamic banking a... more The Islamic finance human capital demand is accelerating with a rapidly growing Islamic banking and finance (IBF) industry. In Pakistan, the IBF industry moves forward to be more competitive and sophisticated. Therefore, there is a need to explore the employability skills, which the IBF employers mainly require from the new Islamic finance graduates. This study examines the viability of employability skills for the employment of Islamic bank graduates in Pakistan. A quantitative method was adopted to collect data from 120 respondents using a self-administered questionnaire. The findings of the factor analysis suggested five variables deemed to be relevant in IBF graduates' employability skills for Islamic banks which are communication, interpersonal, technical, social, and subject knowledge skills. This study attempts to obtain the employer's perspective that will be used to refine and strengthen the existing skills, knowledge, and course structure in academia.
The study is an attempt to explore the transmission channel through which development in Islamic ... more The study is an attempt to explore the transmission channel through which development in Islamic banking could lead to economic growth. In order to determinethis transmission mechanism, the estimation based Vector Error Correction model (VECM) is used. This study has tested Murabaha, Ijarah and Diminishing Musharaka as proposed Islamic financial products because of their majority share in Islamic financing. This study has tested two co-integrated systems in the VECM model. The first system tests the effect of an increase in financing in Islamic banking products on the net financing of Islamic banks and the second system tests the effect of net financing of Islamic banks on economic growth. The results indicate that the financing done by Islamic banking products positively affects economic growth in Pakistan. Also, the net financing of Islamic banks is significantly based on financing in Ijarah and Murabaha. Hence, this study highlights the growth potential of Islamic banking which is gaining shares in the overall banking system of Pakistan.
The debate about embeddedness of entrepreneurship in cultural dimensions has not found any conclu... more The debate about embeddedness of entrepreneurship in cultural dimensions has not found any conclusive theory but still there is ample evidence that culture has impact on intention of entrepreneurial activity. The culturally legitimate vocational choices affect the efficacy to make an entrepreneurial startup. This is directly linked with not only the economic activity but also for creating businesses with the available local resources. Entrepreneurial self-efficacy reflects the personal beliefs of individuals in their own abilities and regarding opportunity recognition and risk propensity. The study conducted the analysis by comparing entrepreneurs in four provinces of Pakistan (Punjab, Khyber Pakhtunkhwa, Sindh and Balochistan) and found significant differences in factors describing self-efficacy. MGCFA revealed the stability of the research instrument across the provinces thus factor loadings for different provinces can be compared. Entrepreneurs in Punjab have relatively stronger ...
Banking sector development is one of the key elements benchmarking economic growth. Several empir... more Banking sector development is one of the key elements benchmarking economic growth. Several empirical studies for several instances have indicated a positive relationship between banking sector development and economic growth. This study intends to examine the sources of banking sector development of Pakistan, using capital formation, interest rate, trade deficit, general price level and remittances as the proposed indicators. There is a lack of studies which investigated the impact of investment and trade deficit on banking sector development. The empirical data for the study is taken from world development indicators for 38 years. For the reliable estimates, ARDL cointegration technique has been used to estimate the long run determinants of banking sector development. Domestic credit to private sector has been used as a proxy for the banking sector development because of its market orientation. The results show that increase in the investment, imports and general price level leads...
Dynamic Green (Pvt.) Limited is the latest initiative of the Dynamic group of companies to tackle... more Dynamic Green (Pvt.) Limited is the latest initiative of the Dynamic group of companies to tackle the most challenging issue faced by Pakistan that is energy crisis. In Pakistan, the manufacturing industry, businesses, and households face energy shortfalls. To achieve the objective of reduction in energy crises, Dynamic Green (Pvt.) Limited has started the first integrated energy project. The aim of this study is to explore the delay factors and their causes in an integrated energy project by Dynamic Green (Pvt.) Limited. Qualitative research methodology was used in this study. Data was collected through semi-structured interviews conducted with those employees of Dynamic Green (Pvt.) Limited who had been actively involved in this integrated energy project. NVivo v11 software was used to analyze the critical delay factors and their causes. By applying the word cloud and thematic analysis, the study found that communication gap, improper planning, incomplete documents, poor organizat...
his paper aims to identify the impact of firm specific factors on liquidity risk and operational ... more his paper aims to identify the impact of firm specific factors on liquidity risk and operational risk management for Islamic banks. The performance of Islamic financial institutions has been explored at length in regards to their operational differences, product offering and customer patronage. However, firm specific factors related to risk management have not been explored in Pakistan. This paper intends to fill that gap using empirical analysis. This study utilizes full-fledged Islamic banks operating in Pakistan during the period of 2006-2014. The ratio of capital to total assets us used as a proxy for liquidity risk and the ratio of return on assets is used as a proxy for operational risk. Size, NPL ratio, capital adequacy ratio, leverage and asset management have been used as independent variables. Results show that CAR, NPL ratio, leverage and asset management have a significant impact on liquidity risk. Size, car, and asset management have a significant impact on operational risk. The findings of this study can be utilized to create policies for enhanced risk management for Islamic financial institutions.
Islamic banking in Pakistan has gained recognition in last ten to eleven years. It offers many pr... more Islamic banking in Pakistan has gained recognition in last ten to eleven years. It offers many products which are different from conventional banking and the most significant constituent is zero interest. Currently, a chunk of people have motivation towards Islamic banking compared to conventional banking in view of its growth in terms of assets, investment and deposits. This growing number of Islamic banking institutes indicates an increased trend of Islamic banking in Pakistan. People's trust on the legitimacy of Islamic mode of banking motivates different conventional banks to open Islamic windows besides full-fledged Islamic branches to cater the increasing demand of people in Pakistan. The present study investigates short run and long run relationship between Islamic finance development, its various products and economic growth in Pakistan. Using quarterly data for the period of 2006-2013, the study applied bound cointegration test and error correction models (ECMs) developed within an autoregressive distributed lag (ARDL) structure. The study found that there is a supply side relation between economic growth and Islamic banking in Pakistan. The study also found that Islamic banking industry exerts significant impact on economic growth.
Journal of Islamic Economics Banking and Finance, 2017
Based on the argument of scarcity in the traditional and Islamic economics, this study has used t... more Based on the argument of scarcity in the traditional and Islamic economics, this study has used the data of common resources to see any evidence of scarcity. In this study, resources are analysed with the categorical feature of naturally available resource and man-made resource. Using ARDL cointegration approach, it was found that there is an absence of resource scarcity hypothesis for the case of a long run. The structural break dummy is significant for the case of rice, natural gas, oil and coal they are positive which shows that historical prices only jumped up once, especially for the case of oil prices. The slowest convergence can be seen for the case of oil prices, which is expected as oil prices are mostly regulated and managed by the OPEC. The results supported the idea of Islamic economics that resources are actually not scarce; it is Allah who has promised to provide sustenance.
International Journal of scientific research and management, 2016
Advertisements facilitate households to respond to adjust behavior. This study has designed to ex... more Advertisements facilitate households to respond to adjust behavior. This study has designed to examine the behavior of individuals about their future health behavior related choices in the light of pro-and antismoking advertisements respectively. Both advertisement follow the Health Belief Model which states that an advertisement must cover the cycle of exposure, recognition, receptivity and agreement respectively. This primary study which covers 222 respondents in order to judge the socioeconomic factors affecting the future decisions of the individuals about smoking using Multinomial Logit Model. This study concluded for prosmoking advertisement, only T.V and movies are encouraging individuals to smoke. However; in anti-smoking advertisement, we have found T.V and movies & magazines and newspapers are also discouraging individuals to smoke. The study indicates that purchase of merchandise promotes individuals to smoke, whereas, the antismoking law is discouraging individuals to smoke.
Income smoothing refers to the use of accounting techniques to level out net income fluctuations ... more Income smoothing refers to the use of accounting techniques to level out net income fluctuations from one period to the next. Companies indulge in this practice to manipulate the earnings over the period in order to lower the level of uncertainty. The companies with constant earnings attract more investors as they are willing to pay more prices for company's stock. This study examine the presence of artificial income smoothing in 64 Shari'ah compliant companies listed in the financial market of Pakistan for the period 2008-2015. The study also takes into consideration the concept of income smoothing from an Islamic perspective. To achieve the study's objectives, Eckel's index model is used. The study found that 34 percent of the companies are non-smoothers and 66 percent of the companies are smoothers in pooled sample. Among high market capitalized 32 companies, 37.5 percent of the companies are non-smoothers and 62.5 percent are smoothing companies. In 32 low market capitalized companies, 31 percent companies are non-smoothing and 69 percent companies are practicing income smoothing.
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Papers by AFIA MUSHTAQ