Harry Entebang

Corporate Governance and Firm Performance in Pakistan: The Case of Karachi Stock Exchange (KSE)-30

This paper examines the relationship between four important corporate governance mechanisms (board size, board composition, CEO/chairman duality and audit committee) and two firm performance measures (return on equity, ROE, and profit margin, PM), for a sample of 30 Pakistani listed firms between 2008 and 2009. The results provide evidence of a positive significant relationship between ROE and PM and three corporate governance mechanisms (board size, board composition and audit committee). The implication of this is that, the board size should be limited to a sizeable limit and board must be a right mixture of executive and non-executive directors. The study, however, could not provide a significant relationship between the two performance measures (ROE and PM) and CEO/Chairman duality. These results are consistent with prior empirical studies.

Entrepreneurial orientation of public enterprises in Malaysia

Purpose – The purpose of this paper is to gauge the extent to which public enterprises in Malaysia demonstrate entrepreneurial orientation.Design/methodology/approach – A face‐to‐face survey was initiated to obtain data directly from top management of public enterprises.Findings – The results of the investigation reveal that public enterprises seemed to concentrate on incremental aspect of the marketing of true and tried products/services. Although these companies appeared to have a strong emphasis on RD become the first to introduce new product/services and/or “undo the competitor posture” appeared to be quite low. On the other hand, public enterprises tended to focus on low risk projects. Hence, they prefer to explore and exploit the unknown gradually and will act when certainty ex...

SME Managers and Financial Literacy

The aim of this study is to examine the level of small and medium enterprises (SMEs) business owners–managers’ financial literacy and its impact on firm’s performance. The article applied a random sample and structural equation modelling (SEM) approaches in assessing the influence of SME business owners–managers’ level of financial literacy within the three states in the southwest Nigeria. The findings show the complete effect of business owner–manager’s financial knowledge, financial awareness and financial attitude in converting financial literacy to increase in firm performance. Also, they confirm that financial knowledge and awareness of SME business owners–managers are obviously not a prerequisite for the performance of SMEs, but entrepreneur characteristics in decision-making and relationship to financial attitude have a comparison with financial literacy. The research limitation evolves from cross section information observation that solely covers the southwestern part of the country. Additionally, inspired to meet the analysis gap is panel data analysis. Training courses through strategic orientation on the attitudinal perception of SME business owner–manager and basic business management skills, capacity-building aspect, leadership development as well as networking via relationship marketing and management on financial literacy may have significant effect on SMEs’ performance and growth for the managers in general in Nigeria. The article is one of the first to examine the level of financial literacy of SME business owners–managers in Nigeria. The article therefore sets an important benchmark for further research in this area.

Comparison between Islamic and Conventional Banking:Evidence from Malaysia

Purpose: To determine the financial performance of Islamic banks and non-Islamic banks from 2003 to 2010 in Malaysia by applying the theory of Sharī’ah Conformity and Profitability model. Methodology: This study used accounting ratios which included profitability ratio, liquidity ratio and credit risk ratio to measure the financial performance of the Malaysian banks. Findings: Results indicate that conventional banks perform better in profitability, while Islamic banks perform better in liquidity and credit risk. In t-test of the return on asset (ROA) and total equity to net loans, there are no major difference between Islamic banks and non-Islamic banks. In the return on equity and common equity to total assets, there are statistically significant differences in these two groups. The statistically significant difference was shown in the area of liquidity which means that the Islamic banks liquidity performance has major difference with the non-Islamic banks. These finding are partially rejecting null hypothesis of profitability ratio and credit risk ratio. Moreover, the results are also rejecting null hypothesis of liquidity ratio, that there is statistically significant difference in the mean of liquidity ratio between Islamic banks and non-Islamic banks.

Perceived corporate entrepreneurship in GLCs: evidence from Malaysia

Purpose – The purpose of this paper is to gauge the extent to which government‐linked companies in Malaysia demonstrate corporate entrepreneurship activities.Design/methodology/approach – To achieve the objectives of the study, data was solicited directly from top management through face to face survey.Findings – The findings on nature of corporate entrepreneurship activities suggest that GLCs appeared engage in incremental aspect of CE activities. On the other hand, many of new ideas seemed to come from the top management. Given the nature of external and internal environmental factors of firm which include government policy, environmental hostility, technological forces, top management support, strategic planning, organizational strategies, internal processes, culture, regulation/controls, work discretion, rewards, structure and time/resources were noted to influence the extent to which GLCs pursued CE activities.Research limitations/implications – The findings in this study were drawn from six top mana...