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This study aims to analyze whether family ownership and working capital management (WCM) affect firm profitability and liquidity. Further, we also investigate the moderating effect of family ownership on the association between WCM, firm profitability and liquidity.

This study uses a sample of 150 nonfinancial companies listed on the Pakistan Stock Exchange for the period 2014–2019. For empirical analysis, this study used multiple proxies of family ownership and applied robust and bootstrapped quantile regression models.

The results suggest that family ownership has a negative association with firm profitability and liquidity. Moreover, this study finds a positive association between WCM and firm profitability and liquidity. Furthermore, the results indicate that family ownership negatively moderates the association between WCM and firm profitability. In addition, we argue that family ownership rescinds the impact of WCM as excess liquidity may be used for extracting private benefits and related party transactions.

First, this study has examined the nexus between family ownership, WCM, firm profitability and liquidity in the context of a developing country, i.e. Pakistan. Second, previous studies have not analyzed the moderating role of family ownership in the association between working capital management, firm profitability and liquidity. Third, this study provides unique evidence that family-owned firms have an adverse liquidity position as compared with other firms.

This paper evaluates the performance of actively managed conventional and Islamic equity funds in a developing economy with a focus to assess the performance-growth puzzle posited by Gruber (1993) (a.k.a Gruber’s puzzle). Under the context of an emerging market of Pakistan, this study explores if actively managed equity fund (AMEF) managers have been able to add value by outperforming the market in terms of stock-selection and market-timing abilities; and the comparative performance analysis of Islamic versus conventional AMEFs is also carried out.

We employ Sharpe and Treynor ratios, Capital asset pricing model, Fama–French three factors model (1993), Carhart four-factor model (1997) and Hendrickson (1981) market timing models on 45 equity funds comprising of 23 conventional and 22 Islamic equity funds operating in Pakistan for a period of 10 years. The overall sample period (2008–2018) is divided into two 5 years sub-periods (i.e. 2009–2013 and 2014–2018) and three 3 years sub-periods (2009–2011, 2012–2014 and 2015–2017) to be viewed in conjunction with the country's macro-economic condition.

We report that the actively managed equity funds (AMEFs) were unable to beat the market index with their stock selection or market timing capabilities. However, AMEFs depicted improved performance in the post-global financial crisis period where both conventional and Islamic AMEFs generated substantial rewards for the given amount of risk. Also, conventional AMEFs outperformed Islamic AMEFs potentially due to their holdings in highly leveraged value and large-cap stocks, while Islamic AMEFS invest more cautiously in small-cap and value firms. Analysis of market timing skills revealed that the funds have not been able to select the undervalued stocks and adopted a defensive strategy in the post-global financial crisis recovery period.

Our findings shed some interesting insights and raise some pertinent questions for research, policy, and practice – specifically for developing countries’ context. The no ‘return-growth’ configuration defies its fit with the ‘Gruber puzzle’ and somewhat presents a case of what we call the ‘Inverse Grubber puzzle’. This novel notion of the ‘Inverse Grubber puzzle’ should inform policy and practice to reflect on their practices, institutional arrangement, regulatory framework and policy design in developing economies characterized by lacklustre performance and growth of AMEFs. For example, the regulatory design may consider focusing on stimulating financial inclusion and deepening by motivating low-cost Index tracker funds (ITFs) – with lower fund management costs, while allocating the avoided cost to flow towards effective marketing campaigns driving greater awareness, financial deepening, and investor base diversification. For future research, financial development researchers may explore the implications and appropriateness of AMEFs versus ITFs in other developing economies.

The work reported in this paper is original and constitutes a valuable asset for ethno-religious-sensitive investors. The research has not been published in any capacity and is not under consideration for publication elsewhere.

The link between SME performance, growth and development is well established; however, the characteristics of SMEs that allow firms to be successful in the long run in an underdeveloped country context, i.e. Pakistan, are still unclear. This paper aims to bridge this gap by identifying the SMEs’ characteristics that set them apart from their rivals and become successful.

This study uses Storey’s development framework to identify the SMEs’ characteristics. Data is gathered using the case study method from SMEs with a metropolitan context in Pakistan. A narrative methodological framework was used during the data gathering and analysing stages.

Findings of this study indicate that the prosperity of SMEs in Pakistan is dependent on a combination of characteristics, including entrepreneurial characteristics of owner–managers, knowledge of business operating models, social networks and relationship building and innovation in business style. Additionally, other factors such as governance structure, strategic planning of market diversification and export characteristics also influence the prosperity of an SME. These findings may have several important implications for key stakeholders, including entrepreneurs, SMEs and policymakers in the government.

This research provides evidence about factors that can help an SME to become successful in uncertain situations surrounding a business environment. Theoretically, the contribution of this research is that it demonstrates that entrepreneurial characteristics and the effective leadership style of owner–managers can help SMEs achieve prosperity in external unforeseeable situations.

This paper aims to investigate the effect of political connections on earnings quality by simultaneously controlling the firm characteristics; to test whether Pakistani firms’ ownership, specifically family ownership, plays a significant role in political connections–earnings quality association; to draw a conclusion about the agency theory in the context of Pakistan.

A quantitative approach was used to examine the influence of political connections and family ownership on the earnings quality of listed firms in Pakistan. The study uses historical data from 238 active non-financial firms listed on the Pakistan Stock Exchange during the period of 2009-2015. The final data set comprises more than 1,600 firm-year observations from ten major non-financial industry classifications. To enhance the robustness of the empirical relationship, the study used several proxies of earnings quality in conjunction with robust regression methods and diagnostic checks.

The present study’s findings are consistent with the findings of the studies on agency theory previous literature, where politically connected firms have significantly lower earnings quality as compared to non-connected firms. The results also indicate that family firms have superior earnings quality than non-family–controlled firms. Furthermore, family ownership moderates the negative influence of political connections on earnings quality. This implies that family ownership diminishes the costs of political connections and improves the earnings quality of the firm.

This study is different from previous research in three respects. First, it examines whether family ownership concentration has a moderating influence on the relationship between political connections and earnings quality. Second, it uses a robust methodology and extensive data set to examine the influence of political connections and family ownership concentration on earnings quality. Further, this study is the first to analyze the nexus between financial reporting quality and the political business environment in the context of Pakistan.

The study analyzes the influence of corporate governance and ownership concentration levels on the cost of equity. Further, the authors extend the literature by investigating the moderating effect of ownership concentration levels (i.e. at 5%, 10% and 20%) on the relationship between corporate governance and the cost of equity.

The study applies several robust panel regression techniques to a sample of 114 active non-financial companies listed on the Pakistan Stock Exchange from 2011 to 2016. Corporate governance was measured through a unique index comprising 30 governance attributes. The cost of equity was measured through the capital asset pricing model. Further, the authors construct three variables for ownership concentration levels, i.e. at 5%, 10% and 20%. To address the endogeneity problem, the one-lagged variable model and GMM approaches were also applied.

The results indicate that better corporate governance reduces the cost of equity, while ownership concentration at high thresholds would increase the cost of equity. Further, the authors find that ownership concentration at the 20% threshold moderates the relationship between corporate governance and the cost of equity. Thus, the authors argue that firms can minimize the risk faced by shareholders by implementing substantive corporate governance mechanisms. In addition, effective corporate governance mechanisms at high ownership concentration levels are imperative for managing the cost of equity.

The study reports novel evidence that ownership concentration at a high threshold moderates the effect of corporate governance on the cost of equity.

This study aims to investigate the impact of family ownership on firm performance. The authors examine whether family ownership in a firm reduces the adverse consequences of political connections on firm performance. Further, the authors analyze whether monitoring benefits of family ownership vary over family generations.

This study examines the financial data from 229 active nonfinancial firms listed on the Pakistan Stock Exchange between 2011 and 2019. First, the authors estimated several panel data regression models after incorporating control variables in the full sample. Second, the authors estimated models in the subsample of family firms for investigating whether the results vary among different generations of family firms. Further, for checking the robustness of the authors’ statistical results, the authors have used two proxies of family ownership and revalidated the findings in several subsamples of the data.

This study finds that family firms financially outperform nonfamily firms. Further, the results suggest that boards with family members tend to enhance monitoring and governance mechanisms which reduce the harmful effects of political connections. Finally, this study finds that the monitoring benefits of family ownership which reduce the adverse effects of political connections on family firm performance diminishes over generations.

First, this study provides evidence of whether the monitoring benefits of family ownership reduce the adverse effects of political connections on firm performance. Second, to the best of the authors’ knowledge, no prior study provides evidence whether first-generation family firms are superior in monitoring and ultimately reducing the negative effects of political connections.

Road traffic crashes (RTCs) result in creating significant social and economic hazard for affectees, their families and society. The purpose of this paper is to present studies which were conducted to study the patterns of RTCs in Karachi which is a metropolitan city of Pakistan. The studies were conducted on one of the busiest roads in the city named as Shara-e-Faisal. The influence and contribution of different factors in RTCs has been studied and hazardous road sections of Shara-e-Faisal have been identified. Based on the data analysis, an evaluation model has been suggested to reduce the hazard of RTCs on Shara-e-Faisal. The objective of the presented studies is to increase the present level of safety of road travel by reducing crashes on Shara-e-Faisal.

Existing data of RTCs in Karachi have been analysed for the presented studies. For this purpose, Shara-e-Faisal was divided in sections of 1 km length to study the vehicle crash pattern. Location surveys were conducted to record physical conditions of this road. A cluster analysis was carried out to identify hazardous sections of the road. An evaluation model has been suggested in the end to reduce the hazard of RTCs by identifying hazardous road sections of Shara-e-Faisal.

The analysis of the data revealed that the crashes were higher over weekend and on Monday. Male population, particularly young people, and motorcycle riders were the largest affectees of RTCs. In general, more daytime crashes were recorded as compared to nighttime crashes. The crashes in the mid block of the road and those involving rear-end collisions were higher. The hazardous road locations were related to poor road conditions. Statistical analysis indicated that alternate routes were required to reduce the RTC hazard on Shara-e-Faisal.

The paper is a small, but an original, contribution to identify a potential hazard which is faced by the community in the city. This is the first attempt (to the best of authors’ knowledge) to address the issue of RTCs in Karachi from an engineering view point.

The suggested model can be employed by the authorities as a guideline to mitigate the hazard of road crashes in the country.

The paper provides valuable information on the road traffic incidents, their pattern and contributing factors in one of the largest metropolis of Pakistan. The suggested model can become helpful in reducing RTCs in Pakistan.

This study aims to test the mean and volatility spill over from the environmental, social, and governance (ESG) market to the stock markets of G7 countries. The study used ARMA-GARCH model to predict the results. The findings of the study reveal that as the spill over exists in the markets, however the mean volatility does not exist showing efficiency of the market as significant results depict that past prices cannot predict the future prices. It provides new insights for the international portfolio investors and policymakers by shedding light on how cross-markets correlate in two different markets.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

This paper identified the different characteristics that can help SMEs, within an underdeveloped country context.

The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

By taking the theory of entrepreneurial legacy as the baseline, this study explores the various aspects of succession planning in indigenous family businesses especially the role of female family members in succession and conflicts in family businesses.

The study is qualitative in nature and adopts narrative inquiry to explore the aspects of succession planning. In doing so, the study utilizes an in-depth interviewing technique with nine participants who run their family-owned firms which are mostly in their second or third generation for analysis.

The findings are concurrent with the literature that indicates a lack of strategic succession planning although ordinary or natural succession does occur in some firms. The study also reports a lack of consideration for female members in succession, daughters in particular, for traditional family firms (FFs) in contrast to entrepreneurial FFs.

The study has many implications for family-owned firms in Pakistan as they need to align their family business with the theory of entrepreneurial legacy and its three strategic activities in order to ensure the longevity of their business.

Exploring how succession planning takes place in family indigenous family businesses and what is the role of female family members in succession and conflicts in family businesses are original contributions of this study.