Corporate Governance and New Product Offerings at Local Commercial Banks in Pakistan

Naz, Sana (2008): Corporate Governance and New Product Offerings at Local Commercial Banks in Pakistan.

Abstract

The main objective of this study is to analyze the determinants of risk-taking behavior. Consistent with models of risk return, we indicate that risk-taking behavior in the context of investment is affected by the risk of self-attitudes, and perceptions of risk and return expectations. One implication of our study is that objective measures of risk, such as historical volatility and return, are not able to determine the risk-taking behavior almost as well as subjective measures, the risk perceptions and self-return, especially the historical returns seems to be a poor indicator of risk-taking behavior. Moreover, we find substantial differences between the self-perceptions of risk is inferred from the interval estimates and inferred from those of the Likert scales. Our results also indicate that, in line with theoretical models, behavioral biases such as overconfidence and excessive optimism significantly affect risk behavior. Those investment advisers can try to incorporate some of these results in the consultative processes to correct the erroneous beliefs of investors. This can be achieved through the strengthening of the patch from the financial literacy of clients as well as showing them that their investment is required is probably more serious than originally envisaged by them. We also find evidence of the expanding scope of content in the privacy of our data. Determinants of risk-taking behavior differ not only between the two areas of content and very clear, but even in the field of investments. Show that the determinants of risk behavior in the field of investments, lottery does not need to be able to predict the risk in equity investments, and vice versa. Measuring risk attitudes using lotteries approach is useless and therefore if we want to predict the behavior of risk in financial securities. It therefore seems that (method is used to have, for example, often in surveys of large plate-sized enterprises, such as socio-economic panel (SOEP), as well as in the banking industry) to extract positions risk customers by asking them about his conviction cannot predict the risk behavior of individuals.

• Item Type: MPRA Paper
• Language: English
• Keywords: Corporate governance: new product development
• Subjects: G - Financial Economics > G0 - General; G - Financial Economics > G3 - Corporate Finance and Governance

References

1. Ahmad, B., & Ali, S. B. (2012). Do Individual Investors in Pakistan Prefer Dividends?

2. Ahmad, M., & Ali, S. B. (2008). Technical Analysis in the Stock Markets of Pakistan: A Case of Commercial Banks.

3. Aleem, M. U., Purwani, M., Ali, U., Ali, S. B., & Bhojani, N. (2018). Power of Training and Development on Employee Retention in Pharmaceutical Organization, IBT Journal of Business Studies, 14(2), 148-157.

4. Aleem, M. U., Ali, S. B., Naz, S., & Baig, U. (2021). Recognizing the Influence of Training Needs Analysis on Performance of Business Faculties in Karachi Business Schools. KASBIT Business Journal, 14(2), 37-52.

5. Ali, M., & Ali, S. B. (2014). The impact of working capital management on firm profitability and fixed investment in Pakistan.

6. Ali, M. S. B., Iqbal, M. A., & Qazi, N. S. (2014). Shariah Compliance of Islamic Mutual Funds in Pakistan–Perspective of Small Investors’.

7. Ali, S. B., Khan, Z. S., Shah, Z. A., Ahmed, H., & Aziz, A. (2021). Quality of Internal Risk Rating Framework at Commercial Banks in Pakistan, Elementary Education Online, 20 (5), 7150-7163.

8. Ali, S. B. (2012). Corporate Governance and Accounting Practices in Pakistan.

9. Ali, S. B., Farooq, K., Shah, Z. A., & Burney, S. (2021). Testing the Evidence on Weak Form EMH at Pakistan Stock Market. Turkish Online Journal of Qualitative Inquiry, 12(8).

10. Ali, S. B., Hussain, B. M., Baig, U., Khan, Z. S., Raza, A., & Murad, H. (2021). The Enigma of Capital Structure Theories: An Empirical Investigation Between Peer Corporations in Pakistan. International Journal of Advanced Research in Engineering and Technology, 113-124.

11. Ali, S. B., & Khalidi, M. A. (2020). Valuation of equity securities, private firms, and startups. IBT Journal of Business Studies (JBS), 16(1).

12. Ali, S. B., Khan, Z. S., Shah, Z. A., & Ahmad, M. (2021). Lean Accounting System: Importance and Successful Implementation. Journal of Contemporary Issues in Business and Government| Vol, 27(3), 2388.

13. Ali Zaidi, S. N., & Ali, S. B. (2006). Risk and Scope of Debit Check Card in Competitive Market of Pakistan.

14. Amir Barnea, Henrik Cronqvist, and Stephan Siegely, First version: July 9, 2009, This version: September 15, 2009.

15. Arshad, M. A., Ali, S. B., Masood, K., Syed, A., Jabeen, N., & Sabir, R. I. (2021). The Nexus between Culture and IT Capabilities and Innovation Capabilities: Focusing on Manufacturing Firms in Pakistan. Multicultural Education, 7(9).

16. Arshad, M. A., Ali, S. B., Jafri, S. K. A., Arshad, M. H., & Sabir, R. I. (2021). Effect of Organizational Culture and Information Technology Capabilities on Innovation Capabilities: A Case of Manufacturing Firms. Elementary Education Online, 20(5), 6388-6388.

17. Arshad, M. Z., Ali, S. B., Sabir, R. I., Shahidan, A. N., & Arshad, M. A. (2021). The interrelationship between Orientations and SME’s Performance. Turkish Online Journal of Qualitative Inquiry, 12(7).

18. Baig, U., Hashmi, M. A., Ali, S. B., & Zehara, S. (2020). Exploratory Sequential Mixed Methods in Doctorate Research: Extended Application of Constructivist Grounded Theory. IBT Journal of Business Studies (JBS), 16(2).

19. BERND ROHRMANN, Risk Attitude Scales: Concepts, Questionnaires, Utilizations, Project Report, University of Melbourne/Australia - January 2005.

20. David Hillson & Ruth Murray-Webster, 2011, UNDERSTANDING AND MANAGING RISK ATTITUDE, 2005, ISBN 0-566-08627-1, www.lucidusconsulting.com

21. Daulatzai, M, U. K., Ali, S. B., Jafri, S. K. A., & Awan, M. H. T. (2021). Impact of Green HRM on Environmental Performance: Mediating Role of Employees’ Organizational Commitment, International Journal of Disaster Recovery and Business Continuity, 12(1), 405–412.

22. Dohmen, Falk, Huffman, Sunde, Schupp and Wagner (2005), Discussion Paper No. 1730, http://ssrn.com/abstract=807408

23. ELKE U. WEBER, ANN-RENE´ E BLAIS and NANCY E. BETZ, A Domain-specific Risk-attitude Scale: Measuring Risk Perceptions and Risk Behaviors, Journal of Behavioral Decision Making, J. Behav. Dec. Making, 15: 263–290 (2002), Published online in Wiley InterScience 1 August 2002, (www.interscience.wiley.com) DOI: 10.1002/bdm.414

24. GREG davies, phd, HEAD OF BEHAVIOURAL ANALYTICS, HOW NOT TO MEASURE RISK TOLERANCE, [e-mail]

25. Hussain, B. M., Baig, U., Ali, S. B., & Zehra, S. (2020). An Empirical Investigation Factors Influencing upon Investment Decision of Women Entrepreneurs. International Journal of Innovation, Creativity and Change, 11 (11).

26. Hussain, Z., & Ali, S. B. (2009). Implementation of Operational Risk Regime: A Case of Commercial Banks in Pakistan.

27. Khurram, W., Jafri, S. K. A., Ali, S. B., & Shah, Z. A. (2021). Survival of the Quickest: Role of Innovativeness and Transformational Leadership in Determining Sustainable Competitive Advantage of Born Global SMEs. Survival, 12(1), 907-929.

28. Murad, H., Ali, S. B., Baig, U., Raza, A., Ali, S., & Abdullah, A. (2021). Comparative study: conventional and Islamic banking performance in Pakistan. International Journal of Management (IJM), 12(3), 448-459.

29. Riaz, H., Ahmed, H., & Ali, S. A. (2021). Mapping the Impact of Employee Engagement on Job Performance with Mediating Role of Work-Life Balance: An Investigation of Private Sector Organizations in Pakistan, Market Forces Research Journal, 16(2).

30. Rizvi, A., & Ali, S. B. (2011). Risk Taking Behavior of Investors of Pakistan

31. Shah, Z. A., Ali, S. B., Burney, S., & Azhar, K. A. (2021). Student-Perceived Service Quality in Management Science – MS, PhD Programs of TIER 1 Business Schools in Karachi, Multicultural Education, 7 (6).

32. Syed Tabassum Sultana, An Empirical Study of Indian Individual Investors’ Behavior, Global Journal of Finance and Management, ISSN 0975 - 6477 Volume 2, Number 1 (2010), pp. 19-33, Research India Publications, http://www.ripublication.com/gjfm.htm

33. Ullah, Z., Sulaiman, M, A. B. A., Ali, S. B., Ahmad, N., Scholz, M., & Han, H (2021). The Effect of Work Safety on Organizational Social Sustainability Improvement in the Healthcare Sector: The Case of a Public Sector Hospital in Pakistan. International Journal of Environmental Research and Public Health, 18(1), 1-18.