Muhammad Farrukh | SEGi University (original) (raw)

Papers by Muhammad Farrukh

Research paper thumbnail of Entrepreneurial Intention: Creativity, Entrepreneurship, and University Support

J. Open Innov. Technol. Mark. Complex

Citation: Anjum, T.; Farrukh, M.; Heidler, P.; Díaz Tautiva, J.A. Entrepreneurial Intention: Crea... more Citation: Anjum, T.; Farrukh, M.; Heidler, P.; Díaz Tautiva, J.A. Entrepreneurial Intention: Creativity, Entrepreneurship, and University Support. J. Open Innov. Technol. Mark.

Research paper thumbnail of Influence of high-performance work systems on intrapreneurial behavior Work systems

Journal of Science and Technology Policy Managemen, 2021

Purpose-In the past, a plethora of studies has investigated the organizational and individual out... more Purpose-In the past, a plethora of studies has investigated the organizational and individual outcomes of high-performance work systems (HPWS). However, less is known about the mechanism through which HPWS impacts employees' behavior, particularly intrapreneurial behavior (IB). Drawing on the social exchange theory, this study aims to fill this gap by investigating the mediation effect of perceived organizational support (POS) on HPWS-IB linkages. Design/methodology/approach-Data were collected with the help of structured questionnaires from employees working in service industries such as banking and insurance. Findings-HPWS was conceptualized as a higher-order measurement model that includes four lower-order dimensions, namely, information sharing, decision-making participation, job security, training and development. Partial least squares structural equation modeling technique was used to test the hypothesized relationships. Results showed a positive and significant effect of HPWS on IB. Moreover, POS significantly mediated the HPWS-IB link. Originality/value-Despite an increasing number of studies on the role of human resource management (HRM) practices in enhancing innovation and creativity, there has not been enough research on how HPWS affects IB at the individual level in the presence of POS. Thus, this research is the first of its kind to investigate the mediating role of POS in HPWS-IB linkages in the Malaysian context. 1. Introduction Corporate entrepreneurship and intrapreneurial behavior (IB) are significant sources for organizational growth, differentiation and success. Although these two concepts have been used interchangeably in previous studies, in-depth analysis of literature argued that corporate entrepreneurship is all about business venturing, innovation in products and services and strategic renewal efforts at the organization level. In contrast, IB stands on individuals rather than at the organizational level (Mahmoud et al., 2020). Corporate entrepreneurship and IB have become a flourishing area of research in organizational management as they help organizations to gain competitive edge and differentiation (Aǧca et al., 2012; Farrukh et al., 2019a). Despite growing research on entrepreneurship at the organizational level, less attention has been paid to IB and there are sparse studies considering how to enhance IB in the organizations. Very specifically, a larger question looming in the above challenge is how organizations can foster intrapreneurship or IB at an individual level? This study aims to examine the impact of high-performance work systems (HPWS) on IB. HPWS are the combination of different human resource (HR) practices, processes and work structure that increase the employees' skill, knowledge, commitment and involvement. In this study, we specifically stress employees' perceptions of HPWS. Several authors such as Agarwala (2003) and Alfes et al. (2013) suggested investigating how an individual perceives HPWS and what is the impact of HPWS on employees' behavior. More specifically, the impact of HPWS on the employees' attitudes and behaviors depends on the employees' perception of these practices when applied in the working context, rather than on what the manager says has been implemented. Extant literature depicts that organizations, with the support of strategic HR practices such as decision-making participation, job security, information sharing, training and development, can motivate employees to participate in extra-role behavior such as IB. A recent trend in strategic human resource management (HRM) focuses on how and why HR practices affect employee behavior, rather than merely reporting a direct impact. Social exchange theory (Balu, 1964) explains that investment in HRs would be reciprocated positively by employees. To further advance the existing HPWS-IB relationship, we investigate the underlying mechanisms by which HPWS affect IB. Specifically, we propose and test the mediating role of perceived organizational support (POS) of employees in the HPWS-IB linkage. In doing so, the research will answer the following questions:

Research paper thumbnail of Knowledge sharing in higher education institutes: An empirical investigation of individual characteristics

Journal of Applied Research in Higher Education, 2019

Purpose The purpose of this paper is to investigate the relationship between individual character... more Purpose The purpose of this paper is to investigate the relationship between individual characteristics and knowledge sharing (KS) in higher education institutes (HEIs) of Pakistan. Design/methodology/approach The study used a quantitative research methodology. The empirical data consisted of 370 responses from the academic staff of six HEIs of Pakistan. Findings The findings revealed a significant impact of dispositional factors on KS. More precisely, extroversion, openness to experience, agreeableness, emotional intelligence and religiosity were positively associated with KS, while neuroticism was found to be negatively associated with KS. Practical implications This micro-level model of KS has some potential implications for the decision makers in the context of HEIs. To enhance the KS in HEIs, the decision makers should take the findings of this study into consideration while hiring the academicians in the universities. The decision makers should give priority to the potential candidates who have a higher level of extroversion, openness and agreeableness. Further, while making hiring and other job-related strategies, religiosity and emotional intelligence of the potential candidates should not be ignored. Originality/value The paper tested a micro-level model of KS in HEIs and contributed to the body of knowledge by jointly investigating the relationship between religiosity, emotional intelligence, personality traits and KS. To the best of researchers’ knowledge, no study has been conducted, so far, which tested these variables jointly. Thus, the present research filled this knowledge gap.

Research paper thumbnail of Intrapreneurial behavior: an empirical investigation of personality traits

The study investigated the impact of personality traits on intrapreneurial behavior. Data was col... more The study investigated the impact of personality traits on intrapreneurial behavior. Data was collected from 306 employees working in higher education institutions. Structural equation modeling technique was utilized with the help of SmartPLS software. The findings of the study revealed a positive association of extroversion, openness to experiences and emotional stability with intrapreneurial behavior, while a negative impact of conscientiousness, agreeableness on intrapreneurial behavior was recorded. The findings of this study have several implications in the context of HEIs. To enhance the intrapreneurial behavior in the higher educational institutes, the management of the institutions should take positive steps to ensure that employees have personality traits which have shown a significant impact on the intraprenuerial behavior in this study. One strategy top management could consider is that, at the time of recruitment, preference should be given to candidates with higher levels of extroversion, openness to experience and emotional stability. However, among all the traits, the most indicative marker is extroversions followed by emotional stability. Therefore, hiring employees with high levels of extroversion and emotional stability could facilitate more intraprenuerial behavior, which ultimately, will help improve the performance of HEIs. This study with its focus on the micro level foundations of intrapreneurial behavior is one of the first studies in the domain of intrapreneurship.

Research paper thumbnail of Religion and entrepreneurial Intentions: An empirical investigation

This current study aimed to investigate the impact of religion on entrepreneurial intentions of t... more This current study aimed to investigate the impact of religion on entrepreneurial intentions of the final year business students in private higher educational institutes of Pakistan. Data were collected with the help of a structured questionnaire; a total number of 290 responses were collected from the students studying in private higher educational institute. Structural Equation Modelling (SEM) was employed and data were analysed using SmartPLS version 2 software. The empirical results of the study reveal that, religion has a highly significant impact on Entrepreneurial Intention (beta=0.316 t=5.1125). Government should consult the Islamic scholars and religious leaders to consolidate an entrepreneurial model; this could help in promoting the entrepreneurship which will ultimately help in poverty alleviation.

Research paper thumbnail of Organizational commitment: Does religiosity matter?

Purpose: The purpose of this study is to investigate the relationship between three dimensions of... more Purpose: The purpose of this study is to investigate the relationship between three dimensions of organizational commitment, namely; affective commitment , normative commitment, and continuance commitment. Method: Data were collected by the use of a structured questionnaire. Five hundred questionnaires were distributed and 306 usable questionnaires were collected back. Structural equation modeling was used to statistically test the model. We used SmartPLS V 2 software to assess measurement and structural model. Findings and contribution: The findings showed a positive relationship between religiosity, affective and normative commitment while no association was found between religiosity and continuance commitment. The study contributed to the domain of religion and organizational management by empirically testing the impact between the variables. To the best of the researchers' knowledge, there is no empirical study has been conducted on the said variables to date. Implication: Religion is a system of beliefs which effects attitude and behavior of the individual not only in society but also in work place. Keeping the religion and employees separate in work place is similar to keeping the mind away from the body. We believe that man is triune creature, thus organizations must encourage the people to bring their whole self in to give their maximum. Limitation: This study only focused on the higher educational institutes for gathering the data and ignored the other sectors, which limits the application of the findings on other sectors. Moreover, as the study was conducted in Pakistan where majority of the population belong to Islam, thus we can say the majority of respondents answered the survey by keeping the Islamic teaching in mind which made the limited generalizability of findings.

Research paper thumbnail of Learning organization and competitive advantage-an integrated approach

The major purpose of this conceptual paper is to integrate the view points of different researche... more The major purpose of this conceptual paper is to integrate the view points of different researchers about leaning organization and competitive advantage and then to develop a proposed model of Learning organization. After the in-depth study of literature we concluded that learning organization is an organization which learns through its members individually and collectively to create competitive advantages by developing a facilitative system through the process of self-development and information sharing by empowering the employees.. The paper also finds some critical factors which must be present in the organization to become a learning organization. These factors are Innovation, facilitative leadership, self-development, empowerment, and information sharing and collective collaboration. The paper tried to explain the similarities and differences among the previously available models of learning organization and proposed a new theoretical model for LO.

Research paper thumbnail of LEARNING ORGANIZATION AND COMPETITIVE ADVANTAGE-AN INTEGRATED APPROACH

The major purpose of this conceptual paper is to integrate the view points of different researche... more The major purpose of this conceptual paper is to integrate the view points of different researchers about leaning organization and competitive advantage and then to develop a proposed model of Learning organization. After the in-depth study of literature we concluded that learning organization is an organization which learns through its members individually and collectively to create competitive advantages by developing a facilitative system through the process of self-development and information sharing by empowering the employees.. The paper also finds some critical factors which must be present in the organization to become a learning organization. These factors are Innovation, facilitative leadership, self-development, empowerment, and information sharing and collective collaboration. The paper tried to explain the similarities and differences among the previously available models of learning organization and proposed a new theoretical model for LO.

Research paper thumbnail of The Effect of Corporate Social responsibility on Consumer Buying Behavior A case of Pakistan

The main purpose of this paper is to find out the relationship between corporate social responsib... more The main purpose of this paper is to find out the relationship between corporate social responsibility and
consumer buying behavior in Pakistan. A total of 250 responses were collected from respondents of twin cities of
Pakistan multiple regression was used to investigate the relationship among the variable of study. Results showed that
substantial, viable and identifiable consumer group exists that considers a company's level of social responsibility in its
purchase decisions. For academicians, this research makes a contribution to the understanding the underlying dynamics
of the role of corporate social responsibility in consumers' buying behavior. The result of this study indicates that all of
the CSR components have a significant relationship with consumers' buying behavior. This research may help managers
to make appropriate strategy for initiatives of CSR.

Research paper thumbnail of Impact of organizational justice on learning organization: An empirical investigation of banking sector of Pakistan

The primary purpose of this research is to examine the association between learning organization ... more The primary purpose of this research is to examine the association between learning organization and organizational justice in the banking sector of Pakistan. This research also investigates that which type of organizational justice is more effective in banking sector of Pakistan. The findings of this paper show that organizational justice has a significant impact on learning organization. Furthermore, it is also found that distributive justice is more effective than other dimensions of justice.

Research paper thumbnail of The Impact of Innovation Climate & Job Satisfaction on Corporate Entrepreneurship

This study verified corporate entrepreneurship, innovation climate and Job satisfaction (person-j... more This study verified corporate entrepreneurship, innovation climate and Job satisfaction (person-job fit, Salary Benefit) as the research framework. Through a literature review, we examined causal relationship among these variables. The climate for innovation is demonstrated by team unity, administrative encouragement, resources, independence, as well as openness to innovation. Recent studies have showed a lack of research in conventional mechanized firms on innovative climate. The relationship model was examined with regression analysis, and all hypotheses established support. This result implied that climate for the innovation enhanced corporate entrepreneurship.

Research paper thumbnail of "The Relationship between Dividend Policy and Shareholder's Wealth" (Evidence from Pakistan

The article examined the influence of dividend policy on shareholder's wealth of 75 companies lis... more The article examined the influence of dividend policy on shareholder's wealth of 75 companies listed in "Karachi Stock Exchange", for duration of six years from 2005 to 2010 using multiple regression and stepwise regression. We have used shareholder's wealth as a dependent variable which is measured as market price per share, whereas the explanatory variable dividend policy is measured as dividend per share. Furthermore we also used, Lagged Price earnings ratio, Retained Earnings and Lagged Market Value of equity as explanatory variables. Data has been collected from company's annual reports, Karachi Stock Market and State Bank of Pakistan. We have found that the difference in average market value (AMV) relative to book value of equity (BVE) is highly significant between dividend paying companies and non-paying companies. Retained earnings have insignificant influence on market value of equity. There is significant influence of dividend policy on wealth of shareholder's, as far as the dividend paying companies are concerned. Lagged Price earnings ratio did not appear to have any significant influence on dependent variable, whereas lagged market value of equity has a significant impact on market price per share.

Research paper thumbnail of Entrepreneurial Intention: Creativity, Entrepreneurship, and University Support

J. Open Innov. Technol. Mark. Complex

Citation: Anjum, T.; Farrukh, M.; Heidler, P.; Díaz Tautiva, J.A. Entrepreneurial Intention: Crea... more Citation: Anjum, T.; Farrukh, M.; Heidler, P.; Díaz Tautiva, J.A. Entrepreneurial Intention: Creativity, Entrepreneurship, and University Support. J. Open Innov. Technol. Mark.

Research paper thumbnail of Influence of high-performance work systems on intrapreneurial behavior Work systems

Journal of Science and Technology Policy Managemen, 2021

Purpose-In the past, a plethora of studies has investigated the organizational and individual out... more Purpose-In the past, a plethora of studies has investigated the organizational and individual outcomes of high-performance work systems (HPWS). However, less is known about the mechanism through which HPWS impacts employees' behavior, particularly intrapreneurial behavior (IB). Drawing on the social exchange theory, this study aims to fill this gap by investigating the mediation effect of perceived organizational support (POS) on HPWS-IB linkages. Design/methodology/approach-Data were collected with the help of structured questionnaires from employees working in service industries such as banking and insurance. Findings-HPWS was conceptualized as a higher-order measurement model that includes four lower-order dimensions, namely, information sharing, decision-making participation, job security, training and development. Partial least squares structural equation modeling technique was used to test the hypothesized relationships. Results showed a positive and significant effect of HPWS on IB. Moreover, POS significantly mediated the HPWS-IB link. Originality/value-Despite an increasing number of studies on the role of human resource management (HRM) practices in enhancing innovation and creativity, there has not been enough research on how HPWS affects IB at the individual level in the presence of POS. Thus, this research is the first of its kind to investigate the mediating role of POS in HPWS-IB linkages in the Malaysian context. 1. Introduction Corporate entrepreneurship and intrapreneurial behavior (IB) are significant sources for organizational growth, differentiation and success. Although these two concepts have been used interchangeably in previous studies, in-depth analysis of literature argued that corporate entrepreneurship is all about business venturing, innovation in products and services and strategic renewal efforts at the organization level. In contrast, IB stands on individuals rather than at the organizational level (Mahmoud et al., 2020). Corporate entrepreneurship and IB have become a flourishing area of research in organizational management as they help organizations to gain competitive edge and differentiation (Aǧca et al., 2012; Farrukh et al., 2019a). Despite growing research on entrepreneurship at the organizational level, less attention has been paid to IB and there are sparse studies considering how to enhance IB in the organizations. Very specifically, a larger question looming in the above challenge is how organizations can foster intrapreneurship or IB at an individual level? This study aims to examine the impact of high-performance work systems (HPWS) on IB. HPWS are the combination of different human resource (HR) practices, processes and work structure that increase the employees' skill, knowledge, commitment and involvement. In this study, we specifically stress employees' perceptions of HPWS. Several authors such as Agarwala (2003) and Alfes et al. (2013) suggested investigating how an individual perceives HPWS and what is the impact of HPWS on employees' behavior. More specifically, the impact of HPWS on the employees' attitudes and behaviors depends on the employees' perception of these practices when applied in the working context, rather than on what the manager says has been implemented. Extant literature depicts that organizations, with the support of strategic HR practices such as decision-making participation, job security, information sharing, training and development, can motivate employees to participate in extra-role behavior such as IB. A recent trend in strategic human resource management (HRM) focuses on how and why HR practices affect employee behavior, rather than merely reporting a direct impact. Social exchange theory (Balu, 1964) explains that investment in HRs would be reciprocated positively by employees. To further advance the existing HPWS-IB relationship, we investigate the underlying mechanisms by which HPWS affect IB. Specifically, we propose and test the mediating role of perceived organizational support (POS) of employees in the HPWS-IB linkage. In doing so, the research will answer the following questions:

Research paper thumbnail of Knowledge sharing in higher education institutes: An empirical investigation of individual characteristics

Journal of Applied Research in Higher Education, 2019

Purpose The purpose of this paper is to investigate the relationship between individual character... more Purpose The purpose of this paper is to investigate the relationship between individual characteristics and knowledge sharing (KS) in higher education institutes (HEIs) of Pakistan. Design/methodology/approach The study used a quantitative research methodology. The empirical data consisted of 370 responses from the academic staff of six HEIs of Pakistan. Findings The findings revealed a significant impact of dispositional factors on KS. More precisely, extroversion, openness to experience, agreeableness, emotional intelligence and religiosity were positively associated with KS, while neuroticism was found to be negatively associated with KS. Practical implications This micro-level model of KS has some potential implications for the decision makers in the context of HEIs. To enhance the KS in HEIs, the decision makers should take the findings of this study into consideration while hiring the academicians in the universities. The decision makers should give priority to the potential candidates who have a higher level of extroversion, openness and agreeableness. Further, while making hiring and other job-related strategies, religiosity and emotional intelligence of the potential candidates should not be ignored. Originality/value The paper tested a micro-level model of KS in HEIs and contributed to the body of knowledge by jointly investigating the relationship between religiosity, emotional intelligence, personality traits and KS. To the best of researchers’ knowledge, no study has been conducted, so far, which tested these variables jointly. Thus, the present research filled this knowledge gap.

Research paper thumbnail of Intrapreneurial behavior: an empirical investigation of personality traits

The study investigated the impact of personality traits on intrapreneurial behavior. Data was col... more The study investigated the impact of personality traits on intrapreneurial behavior. Data was collected from 306 employees working in higher education institutions. Structural equation modeling technique was utilized with the help of SmartPLS software. The findings of the study revealed a positive association of extroversion, openness to experiences and emotional stability with intrapreneurial behavior, while a negative impact of conscientiousness, agreeableness on intrapreneurial behavior was recorded. The findings of this study have several implications in the context of HEIs. To enhance the intrapreneurial behavior in the higher educational institutes, the management of the institutions should take positive steps to ensure that employees have personality traits which have shown a significant impact on the intraprenuerial behavior in this study. One strategy top management could consider is that, at the time of recruitment, preference should be given to candidates with higher levels of extroversion, openness to experience and emotional stability. However, among all the traits, the most indicative marker is extroversions followed by emotional stability. Therefore, hiring employees with high levels of extroversion and emotional stability could facilitate more intraprenuerial behavior, which ultimately, will help improve the performance of HEIs. This study with its focus on the micro level foundations of intrapreneurial behavior is one of the first studies in the domain of intrapreneurship.

Research paper thumbnail of Religion and entrepreneurial Intentions: An empirical investigation

This current study aimed to investigate the impact of religion on entrepreneurial intentions of t... more This current study aimed to investigate the impact of religion on entrepreneurial intentions of the final year business students in private higher educational institutes of Pakistan. Data were collected with the help of a structured questionnaire; a total number of 290 responses were collected from the students studying in private higher educational institute. Structural Equation Modelling (SEM) was employed and data were analysed using SmartPLS version 2 software. The empirical results of the study reveal that, religion has a highly significant impact on Entrepreneurial Intention (beta=0.316 t=5.1125). Government should consult the Islamic scholars and religious leaders to consolidate an entrepreneurial model; this could help in promoting the entrepreneurship which will ultimately help in poverty alleviation.

Research paper thumbnail of Organizational commitment: Does religiosity matter?

Purpose: The purpose of this study is to investigate the relationship between three dimensions of... more Purpose: The purpose of this study is to investigate the relationship between three dimensions of organizational commitment, namely; affective commitment , normative commitment, and continuance commitment. Method: Data were collected by the use of a structured questionnaire. Five hundred questionnaires were distributed and 306 usable questionnaires were collected back. Structural equation modeling was used to statistically test the model. We used SmartPLS V 2 software to assess measurement and structural model. Findings and contribution: The findings showed a positive relationship between religiosity, affective and normative commitment while no association was found between religiosity and continuance commitment. The study contributed to the domain of religion and organizational management by empirically testing the impact between the variables. To the best of the researchers' knowledge, there is no empirical study has been conducted on the said variables to date. Implication: Religion is a system of beliefs which effects attitude and behavior of the individual not only in society but also in work place. Keeping the religion and employees separate in work place is similar to keeping the mind away from the body. We believe that man is triune creature, thus organizations must encourage the people to bring their whole self in to give their maximum. Limitation: This study only focused on the higher educational institutes for gathering the data and ignored the other sectors, which limits the application of the findings on other sectors. Moreover, as the study was conducted in Pakistan where majority of the population belong to Islam, thus we can say the majority of respondents answered the survey by keeping the Islamic teaching in mind which made the limited generalizability of findings.

Research paper thumbnail of Learning organization and competitive advantage-an integrated approach

The major purpose of this conceptual paper is to integrate the view points of different researche... more The major purpose of this conceptual paper is to integrate the view points of different researchers about leaning organization and competitive advantage and then to develop a proposed model of Learning organization. After the in-depth study of literature we concluded that learning organization is an organization which learns through its members individually and collectively to create competitive advantages by developing a facilitative system through the process of self-development and information sharing by empowering the employees.. The paper also finds some critical factors which must be present in the organization to become a learning organization. These factors are Innovation, facilitative leadership, self-development, empowerment, and information sharing and collective collaboration. The paper tried to explain the similarities and differences among the previously available models of learning organization and proposed a new theoretical model for LO.

Research paper thumbnail of LEARNING ORGANIZATION AND COMPETITIVE ADVANTAGE-AN INTEGRATED APPROACH

The major purpose of this conceptual paper is to integrate the view points of different researche... more The major purpose of this conceptual paper is to integrate the view points of different researchers about leaning organization and competitive advantage and then to develop a proposed model of Learning organization. After the in-depth study of literature we concluded that learning organization is an organization which learns through its members individually and collectively to create competitive advantages by developing a facilitative system through the process of self-development and information sharing by empowering the employees.. The paper also finds some critical factors which must be present in the organization to become a learning organization. These factors are Innovation, facilitative leadership, self-development, empowerment, and information sharing and collective collaboration. The paper tried to explain the similarities and differences among the previously available models of learning organization and proposed a new theoretical model for LO.

Research paper thumbnail of The Effect of Corporate Social responsibility on Consumer Buying Behavior A case of Pakistan

The main purpose of this paper is to find out the relationship between corporate social responsib... more The main purpose of this paper is to find out the relationship between corporate social responsibility and
consumer buying behavior in Pakistan. A total of 250 responses were collected from respondents of twin cities of
Pakistan multiple regression was used to investigate the relationship among the variable of study. Results showed that
substantial, viable and identifiable consumer group exists that considers a company's level of social responsibility in its
purchase decisions. For academicians, this research makes a contribution to the understanding the underlying dynamics
of the role of corporate social responsibility in consumers' buying behavior. The result of this study indicates that all of
the CSR components have a significant relationship with consumers' buying behavior. This research may help managers
to make appropriate strategy for initiatives of CSR.

Research paper thumbnail of Impact of organizational justice on learning organization: An empirical investigation of banking sector of Pakistan

The primary purpose of this research is to examine the association between learning organization ... more The primary purpose of this research is to examine the association between learning organization and organizational justice in the banking sector of Pakistan. This research also investigates that which type of organizational justice is more effective in banking sector of Pakistan. The findings of this paper show that organizational justice has a significant impact on learning organization. Furthermore, it is also found that distributive justice is more effective than other dimensions of justice.

Research paper thumbnail of The Impact of Innovation Climate & Job Satisfaction on Corporate Entrepreneurship

This study verified corporate entrepreneurship, innovation climate and Job satisfaction (person-j... more This study verified corporate entrepreneurship, innovation climate and Job satisfaction (person-job fit, Salary Benefit) as the research framework. Through a literature review, we examined causal relationship among these variables. The climate for innovation is demonstrated by team unity, administrative encouragement, resources, independence, as well as openness to innovation. Recent studies have showed a lack of research in conventional mechanized firms on innovative climate. The relationship model was examined with regression analysis, and all hypotheses established support. This result implied that climate for the innovation enhanced corporate entrepreneurship.

Research paper thumbnail of "The Relationship between Dividend Policy and Shareholder's Wealth" (Evidence from Pakistan

The article examined the influence of dividend policy on shareholder's wealth of 75 companies lis... more The article examined the influence of dividend policy on shareholder's wealth of 75 companies listed in "Karachi Stock Exchange", for duration of six years from 2005 to 2010 using multiple regression and stepwise regression. We have used shareholder's wealth as a dependent variable which is measured as market price per share, whereas the explanatory variable dividend policy is measured as dividend per share. Furthermore we also used, Lagged Price earnings ratio, Retained Earnings and Lagged Market Value of equity as explanatory variables. Data has been collected from company's annual reports, Karachi Stock Market and State Bank of Pakistan. We have found that the difference in average market value (AMV) relative to book value of equity (BVE) is highly significant between dividend paying companies and non-paying companies. Retained earnings have insignificant influence on market value of equity. There is significant influence of dividend policy on wealth of shareholder's, as far as the dividend paying companies are concerned. Lagged Price earnings ratio did not appear to have any significant influence on dependent variable, whereas lagged market value of equity has a significant impact on market price per share.