Corporate governance has two types of agency issues with respect to ownership and control of firms. The Type I agency issue is related to conflict of interest between shareholders and firm’s managers (i.e., principal-agent conflict); whereas, the Type II agency issue (i.e., principal-principal conflict) is between controlling (majority) shareholders and minority shareholders. The tunneling and propping in business group firms are examples of Type II agency issue. Tunneling is the process of expropriation or transfer of business resources by controlling shareholders from low cash-flow rights (CFR) firms to high CFR firms in a business group. Tunneling is carried out through certain transactions at the cost of minority shareholders in group firms. Whereas, propping is the opposite process through which resources are provided by controlling shareholders to firms under financial distress in a business group. This thesis examines these Type II agency issues between controlling and minority shareholders of firms related to family business groups of Pakistan. A family business group is a combination of two, or more firms under the control of a particular family. In this regard, the study examines whether tunneling, or propping is carried out in family business group firms, how it occurs and what impact it has on minority shareholders of these firms? The thesis has three major parts: first, this study explores regulatory and corporate environments in Pakistan; develops the pyramid ownership structures of family business groups; and examines the cash flow leverage, cash-flow rights and voting (control) rights of ultimate owners in family business group firms. The study finds that corporations in Pakistan have high degree of ownership concentration. Controlling shareholders own about 87% of firms with equal to or greater than 10% shareholding and 60% of firms with equal to or greater than 20% shareholding. Moreover, most of the businesses in Pakistan are controlled by families. In 62% of business group firms, families own about 20% or more top shareholdings. The study also finds considerable difference in voting, and cash-flow rights in family business group firms, which provides incentives for expropriation of resources. Secondly, the thesis focuses on finding the empirical evidence of tunneling, or propping in family business groups firms of Pakistan by taking a sample of 326 non-financial firms listed on Pakistan Stock Exchange (PSX) for the period 2004-17. The study finds that majority or controlling shareholders expropriate minority shareholders by tunneling or transferring resources from group affiliated firms containing low CFR of majority owners. While measuring the sensitivities of firms to the industry earnings shocks through indirect methodology; the empirical results elucidate that about 31% resources are tunneled from low to high CFR group firms. The study further finds that equity held by directors (representing majority shareholders) has negative relationship with earnings of minority shareholders of low CFR group firms. Thirdly, the thesis examines different categories of four thousand five hundred Related Party Transactions (RPTs) taken place among sample firms during the period 2008-2013. Using the direct methodology, the study categorizes, classifies, describes and analyses the RPTs. The study finds that group affiliated firms extensively involve in RPTs as compared to non-group, foreign and state-owned firms. The controlling shareholders significantly use various RPTs for both, tunneling and propping depending upon the characteristics of firms, and corporate governance. Moreover, the study finds that considerable amount of intra-group loans is outstanding on firms’ financial statements. Besides, direct cash payments, cash receipts, assets sales and trade of goods & services have been observed as major RPTs, and sources of Type II agency issues. The study further finds that market assigns lower multiple of reported earnings for the top other receivable balance firms and vice versa. The study finally finds that firms are less likely to reduce their outstanding other receivables balances despite qualified audit opinions and lower returns. Overall, the results show that business interests of dispersed minority shareholders are xi significantly affected by crafty operations of majority shareholders in family business group firms mainly because of pyramid ownership structure and inadequate enforcement mechanism of corporate governance.These findings have certain implications for regulatory institutions, firm management, shareholders, and researchers.
محبوب کی یاد میں اب تو آجا ساجن کہ ماحول ہے بڑا ساز گار میری بے چین نگاہوں کو کب سے ہے انتظار دل روتا ہے اور آنکھیں اشکبار رہتی ہیں محبوب کے ملنے کا یہ بار بار کہتی ہیں ہجر کی غمگین گھاٹیوں میں کب سے یہ رہتی ہیں یہ پیاسی ہیں ہونا چاہیے اب تو دیدار برسات کے موسم میں دل ملنے کی تمنا کرتا ہے شمع کی خاطر پروانہ جان کی پرواہ نہ کرتا ہے زندہ رہے یا مرجائے دکھ درد صبر سے وہ جرتا ہے حضرت عشق کی منزل میں آتے ہیں دکھوں کے انبار چاولہ سائیںؔ ساون کے مہینے میں گھٹا جب چھاجاتی ہے دکھ درد کے ماروں کو محبوب کی یاد ستاتی ہے قسمت والے ملتے ہیں بد قسمت سیج نہ بھاتی ہے ملنے والے خوشیوں کا کرتے ہیں پرچار
Holy Qur’an is the last revealed book of Allah Almighty.The explanation of its verses started from the time of last apostle and it will continue till the day of resurrection. The land of Indo Pak sub-continent is much fertile regarding the personalities who worked for the interpretation of the last revealed book. In this research paper characteristics and methodology of Tafseer-e-Siddiqui are discussed, especially Theological Discussions of exegesis are analysed. Moulana Abdul Qadeer Siddiqui was a renowned theologian of Hyderabad Dakkan. He spent his whole life in learning and teaching Islam. His work on Tafseer-e-Qur’an is a great contribution for Quranic understanding. In this Tafseer the writer has also consulted books of other religions.He criticized orientalists but with politeness. There is dire need to spread this contribution of Moulana Siddiqui among the Muslims and especially the students of educational institutions.
Key Words: Holy Qur’an, Hadith, Orientialists, Chiristianity, Judaism.
The empirical studies of the leadership styles have been zooming in to very minute details without any theoretical integration. This research is an effort to present an integrated model of leadership effectiveness and then correlating integrated leadership styles and the employees’ performance. On the moderation side, this study included comparatively newer phenomenon of impact of stages of Organizational Life Cycle (OLC) and leader’s self-efficacy on this relationship. Being exploratory study, it used factor analysis technique for dimensions reduction and identified four basic leadership styles (LS-1, LS-2, LS-3, and LS-4). The main constituent of LS-1 Style is transformational, LS-2 is telling, LS-3 is consultative and LS-4 is pace setting style. These leadership styles could epitomize most of the styles of leadership, available in the relevant literature. LS-1 and LS-3 styles have highly positive correlation with employees’ performance whereas LS-2 and LS-4 leadership styles do not impact employees’ performance. On the moderation side the results show that the LS-1 and LS-2 style leaders will be more successful during later stages of the OLC whereas LS-3 style leaders will prove to be successful during early stages of the OLC. OLC stage will not impact the relationship between LS-4 leadership style and the performance of his employees. Self-efficacy of LS-1 and LS-2 style leaders will have significantly positive impact on the relationship between leadership style and performance of their employees. However, in case of LS-3, it will impact negatively the relationship between leadership style and performance of their employees. Self-efficacy of LS-4 style leaders will not impact the relationship between leadership style and the performance of his employees. The experimental study of this thesis suggested a simpler motivational tool to be used by the leaders for effective performance of their employees. In the light of Herzberg’s motivation-hygiene theory and Festinger’s cognitive dissonance theory, the results show that increasing belief in the system of divine accountability has significant positive impact on the employee’s performance, which is not moderated by education level, age and gender. The concept of integrated leadership styles will make it simple to understand and handier to practice leadership styles theories. The findings of this research may provide guidelines to improve organizational performance by using the most suitable leadership style at different stages of OLC as per the leader’s self-efficacy. The findings can help organizations to fine-tune the contents of business leaders training packages to get required outcomes of these trainings. The integrated leadership styles will help organizations in hiring of new leadership and in setting priorities of leadership development. The researcher hopes that the motivational tool suggested will be helpful to the organizational leaders in improving performance of their employees in general and in the organizations where very less or no supervision is possible, in particular.