Journal of Banking and Social Equity (JBSE)

A Bibliometric Analysis of Board Gender Diversity in the Perceptive of Social Equity: A Science Mapping and Performance Analysis in the Banking Sector

Kanwal Iqbal Khan — 2024-06-30

Gender equality is becoming a well-discussed phenomenon among scholars, policymakers, and governments, particularly after the emphasis on gender equality goals by the United Nations. As a result, women increasingly occupy higher managerial positions within the firm hierarchy in the banking sector to achieve social equity which is only possible to address the gender disparity issue. That is why the literature on female representation in corporate boards has dramatically increased in recent years, proving unequivocally that specific traits of women favorably influence many domains inside the organization. However, the conflicting empirical evidence regarding the significance of gender board diversity (GBD) leads scholars to revisit the underpinning theories and literature. The current study conducted a bibliometric analysis to evaluate scholarly papers concerning female participation on governing boards from 2012-22. The Scopus database was used for document extractions, and 792 publications were included in the bibliometric analysis. The findings emphasize important journals, institutes, countries, pertinent authors, and research on this issue. The United States, the United Kingdom, and Spain are the most dominant regions, and University Utara Malaysia is the leading institute in publications. Journal of Business Ethics is the primary source of publication, and García-Sánchez is the most contributing author based on article metric. The study also reported the five major research themes: board structure and composition, CSR disclosure and sustainability, the financial impact of board gender diversity (BGD), demographic diversity, and the significance of female CEOs in decision-making opening new research areas for scholars and practitioners. The study will be helpful in theoretically supporting the concept of GBD in the banking sector and highlighting the reasons for conflicting findings from the prior studies that will be useful in achieving sustainable organizational goals.

Revolutionizing Islamic Finance: The Impact of Islamic Banks on Car Ijarah Financing in Pakistan

Muhammad Saeed Iqbal — 2024-06-30

Pakistan is one of the countries that has contributed significantly to Islamic Banking and Finance growth. During the past few years, the Islamic financial sector has experienced significant growth, with an annual growth rate of over 31%. Currently, Pakistan's Islamic banking sector holds almost 11% of market share (SBP: Strategic Strategy for Islamic Banking Sector of Pakistan 2019-2023). The most popular form of Islamic financing is Car Ijarah financing, which accounted for 8.6% of overall financing from the beginning of the year until December 2022 (SPB-IBB-Dec 2022). Pakistan had five full-fledged Islamic banks as of December 31, 2022, as well as 561 Islamic financial divisions in conventional banks (Islamic Banking Strategy and Guidelines Division, SBP). This study analyzes the development of Ijarah financing. Thus, for their contextual research, experts selected Meezan Bank, the largest Islamic bank in the world. An independent variable is Car Ijarah Security Deposit (CISD), Car Ijarah Charities (CJC), Car Ijarah Inventories (CII), while a dependent variable is Net Car Ijarah Financing (NCJF). During the extended period from (2019–2023), data are derived from Islamic banks' financial statements (secondary source). As a result, each coefficient's size is indicated. Using the coefficients, Meezan Bank's net Ijarah financing was estimated. Meezan Bank's size had a significant impact on its net Ijarah financing, suggesting that it had a substantial impact on the bank's success.

Impact of Ownership Structure on Investment Efficiency of Sharia Compliant Firms

Muhammad Azmat Shaheen — 2024-06-30

Sharia compliance is very common preference among Muslim nations of world, requiring to meet certain criteria as a sharia compliant firm. Muslims prefer to either invest in stocks or buy products from firms that are working as per the sharia rules and does not contribute in non-sharia activities in the society. This research is conducted, focusing on sharia compliant firms’ ownership structure and impact on firm’s investment efficiency. The workable data comprises of 65 non-financial sharia compliant firms listed in Islamic index of Bursa Malaysia and the span of study was 10 years from 2011 to 2020. Panel data analysis using two-step System Generalized Method of Moments technique was used in the study. The results showed that ownership concentration has a direct positive relationship with investment inefficiency while dispersed shareholdings displayed a negative relationship. Managerial shareholdings proved to have a positive relation with investment inefficiency as in line with agency theory. Institutional ownership was found to be negatively related to investment inefficiency while Mutual Fund ownership and Retail ownership were found to increase investment inefficiencies. Impact of Independent Non-Executive Ownership in firm was found to be statistically insignificant in impacting the investment efficiencies. The findings are in line with previous studies conducted on conventional non-financial institutions. Furthermore, the study could be further enhanced through inclusion of owner’s activism and cash flow rights.

Impact of CSR on Corporate Environmental Performance: Moderating Role of Green Finance

Afshan Ali — 2024-06-30

The Primary objective of this research is to examine the Impact of Corporate Social Responsibility CSR on environmental performance (EP). This study also examined the role of green financing as a moderator for the correlation among corporate social responsibility (CSR) and corporate environmental performance (CEP). The data used in this study was sourced from the annual reports of Pakistan’s listed companies. This study used the Panel data methods with fixed effects estimates succeeding after diagnostic tests. The results indicates that there is a strong and positive relationship between CEP and CSR. Additionally, the results of this study shows that green finance plays a mediating role between CSR and CEP. The combined effect of Corporate Social Responsibility (CSR) and Green Finance necessitates that companies grab this opportunity to increase their ecological performance to a great extent. Therefore, the present study suggests that to direct the funding towards sustainable projects, the financial institutions and governments together with other financial instruments, should promote the utilization of green bonds and loans proactively. In order to accomplish this, the green finance standards should assure openness and efficiency. In addition to this, guarantees or lower financing rates might be offered for ecologically friendly projects, whereas favorable regulatory environments are developed.

Impact of Corporate Governance on Capital Structure; Evidence from Pakistan

Kashif Saeed — 2024-06-30

A GMM analysis is conducted on the long-term debt ratio of non-financial listed companies on the Pakistan Stock Exchange for 2013–2022. Board meetings, the dual role of chief executive officers, short-term debt, and committee work positively affect the long-term debt ratio. So, it’s reasonable to assume that companies with more short-term debt, more frequent board meetings, CEO duality, and active board committees will also have more long-term debt. However, when an internal auditor is present, the long-term debt ratio tends to be lower. Additionally, a positive and statistically significant association exists between the long-term debt ratio and control variables such as Tobin’s Q, ROA, and ROE. This suggests that firms with greater market valuations and profitability metrics have higher long-term debt. Diagnostic statistics verify the model’s robustness by verifying the validity of the over-identifying restrictions and the absence of substantial autocorrelation in the residuals. This investigation enhances comprehension of the dynamics of financial structure and corporate governance in the context of an emerging market.