Bahria University Journal Of Management & Technology

Predicting stock returns of banking sector using machine learning models: Evidence from South Asian Economies

Ghulam Nabi — 2024-12-31

Banks are very important financial intermediaries in the financial system of a country. The objective of the study is to predict the stock market returns of the banking sector in South Asia. Banks stock return movements may have significant practical ramifications for a variety of decision makers, including current shareholders, potential investors, peer bank managers, and credit rating agencies. This study integrates textual data with financial information from leading news articles to predict stock returns in the banking sector of South Asian Economies with daily observations of 231,458 covering period from January 05, 2010 to January 12, 2024 by applying neural network technique. The study's findings showed that the news articles are important predictor of stock returns of South Asian banking sector. The findings also revealed that the information in news articles in news papers provide important information that may be used for stock returns. Therefore, investors, policymakers and researchers can leverage textual information in business news articles with financial information for better and well-informed decision-making. Investors can concentrate on potential investment opportunities, avoiding market risks and establishing portfolios in South Asia as bank stock is generally considered as an index of future economic expansion.

Determining the recipients and transmitters of asymmetric volatility spillover for green bond indices & agricultural commodity markets: Evidence from TVP-VAR method

Wajid Shakeel Ahmed — 2024-12-31

The primary aim of this research study is to determine recipients and transmitter of asymmetric volatility spillover for green bonds global/regional indices and agricultural commodity markets. The study uses daily data in order to study the asymmetry and volatility spillovers in agriculture commodity market and green bonds market by incorporating TVP-VAR approach. Our conclusions indicate that the highest transmission and reception of spillovers arises between sunflower oil, coconut oil, wheat, and corn respectively. This study adds to the growing body knowledge pertaining to green bonds by investigating the asymmetric spillover impact among green bonds and agricultural commodities that are progressively financialized. For policymakers the spillover volatility effect received by agricultural commodities from the green bonds market indicates mainly because of their effect on price inflation. Finally, for investors it will be beneficial to know which agricultural commodities carry higher and lower risks and this will aid them in accurately assessing financial resources allocation and investment strategy.

Factors Affecting the Adoption of AI in Recruitment & Selection: An Empirical Study in Pakistan

Rehana Farhat — 2024-12-31

This study will unveil the effect of different factors on adoption of Technology (AI) in the field of HR specially in recruitment under the technology, organization and environment outlook. SEM is used in this research. There are many factors that can affect the use of AI; however six important factors are selected in this study. The data is collected through questionnaires. Factors such as complexity, competitive advantage under Technology, organizational readiness, and senior management support for Organizational, while competitive pressure and vendor partnership for Environment are found to significantly affect the use of AI technology in recruitment. The study's findings can help organizations in Pakistan to address challenges in today's environment, particularly in recruitment, by leveraging AI technology. Adopting AI can provide significant advantages, enabling these organizations to gain a competitive edge.

Understanding leadership and managerial challenges at border crossing points of Pakistan: a CAREC and CPEC perspective

Ali Raza Hanjra — 2024-12-31

The geo-strategic location, availability of all-weather seaports, and proximity to gigantic inland connectivity projects like CAREC (Central Asia Regional Economic Cooperation) and CPEC (China–Pakistan Economic Corridor) can transform Pakistan into a trade and transit hub. Cognizant of the economic potential of regional/global connectivity, state-of-the-art infrastructure and cargo handling facilities are being developed by Government of Pakistan on the border crossing points (BCPs). However, the realization of the envisioned benefits from land trade seems conditional to the effectiveness of leadership/management at BCPs. The simultaneous engagement with multiple stakeholders, social and environmental concerns, and over-riding desire of trade facilitation can best be addressed by leaders through identification and resolution of challenges. Using the Stakeholders’ Theory, this study investigates the leadership and management challenges directly influencing the land trade performance of Pakistan’s BCPs. A total of 25 well experienced experts from public and private sector were interviewed. Drawing on the qualitative insights and the thematic analysis, the study finds that responsible leadership plays a critical role in improving operational efficiency, interagency coordination, implementing reforms, and accountability at the BCPs. Major leadership challenges identified by this study include disjointed decision-making, poor resource allocation, lack of transparency, gaps in rules and regulations, and lack of focus on trade efficiency and competitiveness. The study also finds that responsible leadership can address the challenges thorough creation of trade facilitative organizational climate through improved interagency coordination and enhanced accountability.

The Impact of Conflict Management Approaches on Team Performance: Moderating Role of Team Motivation

Usama Saleem — 2024-12-31

This research explores how different conflict management strategies influence team effectiveness, with a particular focus on the moderating role of team motivation. The study gathered data from 250 employees across various software companies located in Pakistan, using a custom-designed survey instrument. Statistical analysis was conducted using SPSS and Smart PLS software tools. The study employed Structural Equation Modeling (SEM) to test the proposed hypotheses. SEM is an advanced statistical methodology that analyzes relationships between observable measurements and underlying theoretical constructs. This comprehensive analytical approach integrates elements of factor analysis, regression, and path analysis, enabling researchers to examine multiple interconnected dependencies simultaneously in a single analytical framework. The findings revealed that different conflict management approaches significantly affect team performance, with the optimal management style varying based on the nature of the conflict. Additionally, the study demonstrated that team motivation plays a crucial moderating role in the relationship between conflict management techniques and overall team performance. The research concludes with practical recommendations designed to help Pakistani organizations better identify and address their current conflict management. The findings of this research can provide valuable guidance to organizational leaders, managers, and stakeholders in fostering a positive work environment. This knowledge can support the development of workplace cultures where employees feel empowered and motivated, ultimately enhancing their ability to work effectively toward organizational objectives. By understanding and implementing effective conflict management strategies, organizations can create conditions that promote both individual productivity and collective achievement of company goals.

Nature Connectedness and Pro-Environmental Behavior: Role of Mindfulness and Perceived Effectiveness

Zunaira Arshad — 2024-12-31

The study investigates the impact of connectedness to nature (CTN) on the voluntary pro-environmental behavior (VPEB) of employees in the hospitality and tourism sector of Pakistan along with the mediating impact of employee mindfulness (EM) and the moderating effect of perceived environmental effectiveness (PEE) in light of the re-perceiving theory of mindfulness. This study focused on investigating four variables; connectedness to nature, employee mindfulness, voluntary pro-environmental behavior and perceived environmental effectiveness. This is a quantitative study that gathered cross-sectional data from 277 full-time professionals employed in the tourism and hospitality sector of Pakistan. Data collection was done over six months duration; September 2023 to February 2024. Data analysis is done by using SPSS and PLS-SEM; partial least squares-structural equation modelling. The findings of the study showed a significant indirect effect on employees' PEB. CTN of employees is linked with EM which positively influences the employee’s voluntary pro-environmental behavior at the workplace. The mindfulness of an employee regarding his or her actions positively affects perception, which in turn leads to pro-environmental behaviors at the workplace. When individuals are in contact with nature and are mindful of their actions, they develop the environmental attitudes to deal with it and their perception related to environmental effectiveness is affected positively. Overall, this study contributed to theoretical literature by investigating new relationships between existing variables. It added value through practical implications for organizations in the hospitality and tourism industry. According to the findings, policymakers and managers should understand the importance of programs and initiatives that can create employee mindfulness and help them connect to nature, resulting in a changed effective perception towards voluntary pro-environmental behavior. Guidelines and policies can change the perception of employees toward environmental concerns. They can design reward-based programs and motivation campaigns that capture the right talent for the environment and organization and help in retaining them.

An insight into Islamic banking practices, employees perspective of Saudi Arabian Islamic banks

Dr. Turki Rashed ALSHAMMARI — 2024-12-31

The study investigates the Islamic banking environment in Saudi Arabia from the employee’s perspective, focusing particularly on the working conditions, employee preferences, and customer behaviors. Saudi Islamic banks are dominated by young male professionals. Saudi Islamic banks are operating in highly competitive environment that require attractive benefits and competitive working conditions to retain the experienced employees. The study also investigates the importance of customers feedback, setting and updating key performance indicators, assessing training needs, and a defining policy towards salaries, promotions, and compensation management. Setting daily targets and linking rewards to the achievements can motivate the employees and reduce the turnover. The study reveals that customers are generally aware of Islamic banking and Shariah compliance so the banks should engage in offering innovative and Shariah compliant products to grab a better market share. Islamic banking is generally considered resilient against crises like COVID-19 and the findings of the study validate this fact as well. The study also suggests that transparency, ethical practices, Sharia compliance, innovative and competitive products, use of technology, excellent customer service, collaboration with businesses, and social responsibility efforts are important factors for success in the Saudi Islamic banking sector.

Energy scarcity and economic stagnation in Pakistan

Dr. Muhammad Asif — 2024-12-31

In this research, the link between the energy crisis in Pakistan and its economic growth was researched into the very intricate level. Energy is the driving force of the economy; the mechanism responsible for movement, development and advancement in any economy. For the illustration of this relationship, we applied a time series data which was running from the year 1983 to 2022. Under this scheme, Gross Domestic Product (GDP) is the main target variable which signifies the wellness of the economy as a whole. The independent variables affect the input to variables by energy consumption (EC) and trade.
In the study, researchers investigated these relationships by applying the ARDL (Autoregressive Distributed Lag) technique. This way, it was possible to calculate both short-term and long-term effects of energy consumption and trade on using GDP as a measuring tool. The results of the now study display a powerfully gripping plot. Moreover, the country of Pakistan has witnessed outstanding improvements in its GDP, through major increase of energy consumption, in either the short-term or long-term period. Consequently, it can be a domino effect. Energy Absorption exerts an influence on the creation and development of Industries. Such industry growth acts as a multiplier effect, generating more jobs, leading to a rise in incomes and consequently increasing the country's GDP. However, trade does matter too, albeit neutrally in the short run and more tangibly in the long-run. The growing trade activities supplement the export options, which is a source of valuable foreign currency for the economy. With this financial infusion the grounds for economic expansion become even more solid.
The researchers suggested to the government of Pakistan the two-pronged approach based on the results of the survey. Above all, we must make certain that such projects will be novel, better, and more effective. Looking into and supporting the use of renewable energy sources can be a way to ensure that there is sustainability in the long term. The appropriate use of the already existing energy resources is also important. To get the best out of the current resources, the solution could be tackling with the issue of energy theft and outdated infrastructure. Pakistan can certainly light the way to robust and stable economic development by applying these ideas to real life.

Shannon Entropy as a Measure of Risk Based on Modern Portfolio Theory

Dr. Usman Ayub — 2024-12-31

The proxy for risk is variance based on modern portfolio theory. The stock returns typically follow asymmetric distribution leading to implausible estimation of risk. This study replaces variance with Shannon Entropy as a measure of risk and applies it to modern portfolio theory. It accommodates asymmetric distributions, and it is fully nonparametric. The study employs portfolio optimization based on variance and Shannon Entropy for MINT, Visegrád group, and CIVETS markets. The results are compared using tracking error. The study reports that the mean-variance portfolio optimization tracking errors are higher than those of the Shannon Entropy portfolio optimization. This implies that the portfolio estimated, using the latter, closely follows its benchmark. The study benefits investors in better understanding the risk assessment and making plausible decisions based on return-entropy portfolio optimization adjusted for the desirable benchmark index.