Prior major studies in the field of corporate finance have centered on financial decisions and corporate performance. While studying the corporate performance and financial decision patterns, classical finance assumes that managers are rational and self-interested in their decision-making. However, behavioral finance contradicts this idea and provides evidence of irrationality in corporate decisions. For this purpose, our study investigated the effect of behavioral biases of corporate finance managers (i.e., self-serving, overconfidence, optimism, anchoring & representativeness, loss aversion and mental accounting) on three facets of corporate financial decisions (i.e. capital structure, dividend policy and working capital management), and how the corporate performance is affected by these financial decisions. This study also focused on the conditional impact of risk perception, financial literacy, and managerial skills on financial decisions of corporate finance managers. For the contextual contribution, the emerging economies like Pakistan, Malaysia, and Turkey have been chosen for the cross-country comparison. This study used primary data to address research questions. Questionnaire items were adapted from different authors, pilot tested and rephrased for numerous validity and reliability measures. The unit of analysis in this cross-sectional study was the financial decision makers of the corporate sector. The results of this study concluded that overconfidence, optimism, anchor/representative and mental accounting bias have a positive impact on risk perception. However, loss aversion bias has a negative impact on risk perception. These relations are significant for all countries except loss aversion bias which is not significant for Malaysia. Self-serving bias has no impact on risk perception and overconfidence. This finding is consistent for all three counties. Risk perception negatively impacts on dividend policy decisions, positively impacts on the capital structure and working capital management decisions. Dividend policy and working capital management positively while capital structure negatively impacts the corporate performance. These results are also consistent with all three counties. Overall results concluded that the behaviorally biased managers impact corporate financial decisions. The results of the moderation of financial literacy and managerial skills indicated that the moderating effect of financial literacy on the relationship of self-serving and anchoring bias with risk perception is not significant for all countries. Financial literacy is moderating the relationship of risk perception with overconfidence and mental accounting for all countries. The moderating effect of financial literacy with optimism on risk perception is supported for Pakistan and Malaysia, however, not supported for Turkey. The moderating impact of financial literacy with loss aversion bias on risk perception is supported only in Pakistan. The moderation of managerial skills on the relationship of risk perception and the corporate financial decision is not found significant for Pakistan, Malaysia, and Turkey. However, it is only significant in the relationship of risk perception and capital structure decisions of Turkey. The risk perception fully mediates the relationship of overconfidence and capital structure while partial mediates with dividend policy and working capital management. The mediation of risk perception between self-serving and financial decisions is not significant for all counties. Moreover, it partially mediates the relationship of optimism and financial decisions while it fully mediates for anchoring for all three countries. Risk perception is not mediating the relationship of loss aversion and financial decisions in Malaysia while partially mediates for Pakistan and Turkey. Overall the mixed results show that in general, risk perception mediates the relationship of behavioral biases and corporate financial decisions. The comparison of family vis-à-vis non-family owned companies reveals that in family-owned companies, the effect of behavioral biases is escalating and vice versa. Owing to the scarce evidence in the literature, this study not only contributes to the existing literature on behavioral aspects but opens some new horizon to understand the behavior of corporate managers of developing countries. This study tries to provide the opportunity for a better understanding of the heteroskedastic policies and decisions of individuals and groups. Based on results and discussion of the study, the policymakers are strongly recommended to look beyond the classical facets by focusing psychological aspects while hiring finance managers with desired experience, personality, management style, and problem-solving skills.
ناطق کے ادبی سفر کا آغاز بچپن سے ہی ہوا تھا۔وہ بتاتے ہیں کہ شروع میں مصوری کرنا انھیں پسند تھا اپنے دوستوں کی ڈرائنگ کاپیاں بنایا کرتے تھے۔ پھر مجسمہ سازی میں بھی اپنا ہنر آزمایا۔وہ ادبی سفر کے آغاز میں اپنے تجربات بتاتے ہوئے کہتے ہیں کہ :
’’ہمارے گھر کے پاس ایک شیشم کا درخت تھا جس پر ایک دن کوئل بیٹھی تھی۔وہ ایک درخت سے دوسرے درخت پر جابیٹھی تو اسے دیکھ کر میں نے کہا کہ یہ تو میں بھی کرسکتا ہوں۔تو میں نے بھی ویسے ہی کرنے کی کوشش کی لیکن میں منہ کے بل نیچے خس وخاشاک پہ آگرا۔اسی طرح کے تجربات میں کرتا رہتا تھا۔ہر چیز کو آزمایا اور آزمانے کے بعد نتیجہ نکالا کہ یہ میں کرسکتا ہوں اور یہ میں نہیں کر پاؤں گا۔"(1)
تجربات کے بعد جب ناطق نتیجہ نکالتے تو وہ اس چیز کو ترک کردیتے جو وہ نہیں کرپاتے تھے مگر وہ اسے دیکھ کر کرنے کی کوشش ضرور کرتے تھے۔پھر کتابیں پڑھنا شروع کیں تو پڑھتے ہوئے میں نے سوچا کہ یہ کتنا اچھا لکھا ہوا ہے اور پھر یہ شوق بڑھتا گیا بچپن میں ہی اپنے دوستوں پر خاکے لکھنا شروع کر دیے اور شاعری کرنا شروع کردی وہ بتاتے ہیں کہ شاعری کی طرف پہلے راغب ہوا۔ناطق کا خاندان جب ہجرت کرکے پاکستان آیا تو اتنے مشکل حالات میں بھی ان کے دادا جان جو عربی اور فارسی دونوں زبانوں پر کمال عبور رکھتے تھے۔ہندوستان سے اپنی کتابیں ساتھ لانے میں کامیاب رہے ،وہ ان کی ادب سے دلچسپی تھی۔انہوں نے بتایا کہ وہ اپنے بچپن میں اپنے دادا کی کتابیں پڑھتے تھے۔ کہانیاں پڑھنے کا شوق وہ بچپن ہی سے...
Today in the world, the human beings are crunch in crimes in developed society or in undeveloped society. As a result the whole world has become insecure and unsafe. A society and nation can perish and drowned due to its cruelty and crimes. The Muslim society is also being victims of such crimes. According to the scholars the basic reason of this issue is illiteracy and get for away from Islamic teachings while fearless from God and from the Day of Judgment, social injustice, instability, destabilization, disunity and dis-integrity, away from knowledge, negative role of media and impatience tolerance are also considered as major factors. The scholars and reformers are suggested to control the crimes through laydown of justice or establishment of Courts and spread of knowledge, bring awareness among the peoples, establishment of educational institutes in a society. In this article it has been point out the major causes of social crimes and their potential remedy in the light of Qur’an and Sunnah.
For millennia in all noteworthy civilizations, the importance and necessity of justice to the maintenance of stability and health of societies have been advocated. Justice in any organizational system is considered to be important at least from two perspectives (a) as a virtuous end in itself and (b) the negative consequences of its absence. Scholars have argued that if organizational decisions and managerial actions are deemed unfair or unjust, the affected employees experience feelings of anger and resentment. Further, the employees affected by injustice not only become angry and unhappy but may also retaliate directly or indirectly. However, organizational justice research has focused mainly on establishing the direct effects of various types of justice on outcomes. There is little research on whether employees’ response to the instances of injustice varies and if so, under what circumstances and to what extent? Hence, an area requiring attention is the incorporation of situational variables into the empirical models to investigate the explanatory power of these variables and to enhance the predictive capacity of justice dimensions in explaining outcomes. Organizational politics has been and is now widely recognized as a fact of organizational life. It has been suggested that it is more important than competence. Scholars have argued that politics should be conceived of as a subjective evaluation rather than an objective reality: individuals respond on the basis of their perceptions of reality, not necessarily reality per se. Thus, how members in organizations perceive organizational politics has been one of the interesting aspects of research in the area. Perceptions of organizational politics have been studied as a direct antecedent to many outcomes; but it has received minimal attention as a potential moderator. viA substantial part of the past research on organizational justice and politics has been carried out primarily in the individualistic western cultures, particularly in the U.S. This study attempts to fill the gap in these two significant areas of organizational life by exploring the interactive effects of perceptions of politics and three types of justice- distributive, procedural and interactional-on five personal and organizational outcomes i.e., job performance, job satisfaction, organizational commitment, organizational citizenship behavior and intent to turnover; it also investigates the direct effects of the justice dimensions and perceptions of politics on these outcomes in a non-Western and still broadly collectivist culture of Pakistan. Data was collected through questionnaires from employees and their supervisors of several national and multinational organizations. The results support most hypotheses suggesting the main effects of three justice types on outcomes. It especially highlights the importance of interactional justice as we find that it is the only justice dimension which showed significant relationship with all the outcomes studied in this research. The findings also reveal that perceptions of politics are significantly related to job performance, job satisfaction, organizational commitment, OCB, and turnover intentions. The results indicate significant interactive effects of perceptions of politics and justice dimensions on job satisfaction only.