ریاست کے اداراتی مقاصد کے تناظر میں نظریہ انفرادیت اور اجتماعیت پسندی

Individualism and Collectivism are two main theories discussed in contemporary Islam implies to create such social environment where both Individual and community could get strength from each other. Islam demands self surrender to Almighty Allah Ta'ala and orders to lead peaceful life, doing all good and avoiding bad deeds. So virtues get stronger and corruption is rooted out in all forms from the Community's social life. Any concept like class struggle or materialistic interpretation of history does not exist in Islam. Rather it provides such guidelines in the economic sphere which promote a healthy circulation of wealth. Islam introduced the concept of ‘Halal & Haram’and appreciated to observe ethical values in economic activities. Islam made man realize being answerable for all earnings and expenditures whether done rightly in accordance with the Orders of Allah Ta’ala or in wrong way defying Allah’s Orders. This outlook not only creates incentives for the individual but also safeguards the Community at the same time.

Corporate Governance, Product Market Competition, Corporate Diversification and Value of Cash Holding

The purpose of this research is to investigate effect of corporate governance on different facets of cash management i-e, level of cash holding, value of cash holding, utilization of excess cash and performance. Furthermore, the role of product market competition is checked in the relationship of corporate governance with different facets of cash management and to get more detail analysis role of family ownership and Shariah compliance is also checked. The research also investigated effect of corporate diversification on value of cash holding in strong governed firms and poorly governed firms; competitive and concentrated industries; family and non-family firms; Shariah and non-Shariah compliant firms. The study used unbalanced panel data of 196 companies from the years 2006 to 2014. All models generally include time dummies and industry fixed effect with standard error cluster to firm. The result shows that corporate governance has significant negative effect on corporate cash holding which supports flexibility hypothesis. Moreover, corporate governance has significant positive effect on value of cash holding and performance of firm through efficient utilization of excess cash due to corporate governance. The role of product market competition is explained in the context of substitution and complementary effect argument. The results generally support complementary effect of product market competition for corporate governance in all relationship with cash management and performance except with level of cash holding that support substitution effect. Substitution effect claim that external market discipline alone is enough mitigate agency problem. On the other hand, complementary hypothesis claim that external market discipline need efficient internal governance to mitigate agency problem. Family firms have high agency problem compared to non-family firms and corporate governance leads to proper utilization of excess cash that leads to high value of cash holding and performance in family firms. The dissertation also investigated effect of corporate governance on different facets of cash management in Shariah compliant firms and nonShariah compliant firms. The result portray that corporate governance has no significant effect on level of cash holding. The result postulates insignificant effect on value of cash holding and utilization of excess cash in Shariah compliant firms which support substitution effect of Shariah compliance for corporate governance. Excess cash under good governance has same effect on performance in Shariah and non-Shariah compliant firms and the result does not support agency theory. The result also indicates that corporate diversification decreases value of cash holding due to agency problem. However, it increases value of cash holding in good governed firms compared to poorly governed firms. Similarly, it increases value of cash holding in competitive industries compared to concentrated industries because external market discipline mitigate agency problem. On the other hand, corporate diversification decreases value of cash holding in family firms, while it has significant effect on value of cash holding in Shariah compliant firms.