The procedure set for mediation analysis in the Baron and Ken-ny's (1986) classical research arti... more The procedure set for mediation analysis in the Baron and Ken-ny's (1986) classical research article did not go without criti-thanks to those critics, that Kenny (2012) had to bring a number of modifications and improvements through his today's contemporary mediation analytic procedure. This paper presents a comparison of what Baron and Kenny (1986) had originally proposed, and what Kenny (2012) has now suggested after incorporating critics' concerns. For this purpose, the two approaches of mediation analysis have been practically applied on an organizational justice-trust in supervisor-employees' job satisfaction case, wherein variable 'trust in supervisor' was used to mediate between various facets of organization justice and employees' job satisfaction. Whereas the classic approach required the estimation of the four paths (c, a, b & c'), through four steps and running three regression equations and testing for their statistical significance; the contemporary mediation analysis has shortened the paths from four to three (a, b & c'), requiring taking only two steps (Steps 2 and 3), and running two regression equations, declaring the first equation as unnecessary. The classic approach required that path b needs to become statistically significant and path c' insignificant in step 3 & 4 for a complete mediation; contemporary approach asks for adding c' with ab for determining total effect c, and then decomposing c in to direct effect (c'/c) and indirect or mediation effect (ab/c). Whereas classic approach aimed at solving for full or partial mediation in abstract form, the contemporary approach has the edge over the classic, in quantifying the mediation effect (ab). In case of our solved example, classic approach could only help to indicate that 'trust-in-supervisor variable is partially mediating', while in case of contemporary approach, mediation effect of this variable for INJ facet of organizational justice was not only quantified (17.36%) and tested for its non-zero effect, but zero-effect of other two facets, DJ and IJ, were also differentiated .
The main objective of this study is to investigate the relationship of macroeconomic factors and ... more The main objective of this study is to investigate the relationship of macroeconomic factors and foreign portfolio investment volatility whether stable macroeconomic environment of country causes less volatility in foreign portfolio investment because international portfolio investment is of short term nature and reverse back on any uncertain situation in the country. The monthly data is collected from 2000‐2012 for four Asian countries i.e. China, India, Pakistan and Srilanka because monthly data is the ideal for measuring portfolio investment volatility. For measuring volatility in foreign portfolio investment, GARCH (1,1) is used because shocks are responded quickly by this model. The results reveal that there exist significant relationship between macroeconomic factors and foreign portfolio investment volatility. Thus less volatility in international portfolio flows is associated to high interest rate, host country currency depreciation, flow of direct investment to host country...
This study investigates the relationship between political instability and domestic private inves... more This study investigates the relationship between political instability and domestic private investment in Pakistan for the period 1972- 2009. The ARDL co-integration approach and Error Correction Model are employed to examine the existence of long- run relationship between political instability and domestic private investment as well as short- run dynamics of domestic private investment respectively. Results show that political instability has significant negative relation with domestic private investment both in long-run and short-run. Public sector investment and FDI crowd in domestic private investment. Based on the findings of the study it is suggested that there should be a stable political environment so that the structure of the financial system and all sectors of the economy can flourish in a good way and domestic as well as foreign investors avoid to hesitate while investing in the economy. The role of the financial institutions and financial intermediaries in enhancing the...
The procedure set for mediation analysis in the Baron and Ken-ny's (1986) classical research arti... more The procedure set for mediation analysis in the Baron and Ken-ny's (1986) classical research article did not go without criti-thanks to those critics, that Kenny (2012) had to bring a number of modifications and improvements through his today's contemporary mediation analytic procedure. This paper presents a comparison of what Baron and Kenny (1986) had originally proposed, and what Kenny (2012) has now suggested after incorporating critics' concerns. For this purpose, the two approaches of mediation analysis have been practically applied on an organizational justice-trust in supervisor-employees' job satisfaction case, wherein variable 'trust in supervisor' was used to mediate between various facets of organization justice and employees' job satisfaction. Whereas the classic approach required the estimation of the four paths (c, a, b & c'), through four steps and running three regression equations and testing for their statistical significance; the contemporary mediation analysis has shortened the paths from four to three (a, b & c'), requiring taking only two steps (Steps 2 and 3), and running two regression equations, declaring the first equation as unnecessary. The classic approach required that path b needs to become statistically significant and path c' insignificant in step 3 & 4 for a complete mediation; contemporary approach asks for adding c' with ab for determining total effect c, and then decomposing c in to direct effect (c'/c) and indirect or mediation effect (ab/c). Whereas classic approach aimed at solving for full or partial mediation in abstract form, the contemporary approach has the edge over the classic, in quantifying the mediation effect (ab). In case of our solved example, classic approach could only help to indicate that 'trust-in-supervisor variable is partially mediating', while in case of contemporary approach, mediation effect of this variable for INJ facet of organizational justice was not only quantified (17.36%) and tested for its non-zero effect, but zero-effect of other two facets, DJ and IJ, were also differentiated .
The main objective of this study is to investigate the relationship of macroeconomic factors and ... more The main objective of this study is to investigate the relationship of macroeconomic factors and foreign portfolio investment volatility whether stable macroeconomic environment of country causes less volatility in foreign portfolio investment because international portfolio investment is of short term nature and reverse back on any uncertain situation in the country. The monthly data is collected from 2000‐2012 for four Asian countries i.e. China, India, Pakistan and Srilanka because monthly data is the ideal for measuring portfolio investment volatility. For measuring volatility in foreign portfolio investment, GARCH (1,1) is used because shocks are responded quickly by this model. The results reveal that there exist significant relationship between macroeconomic factors and foreign portfolio investment volatility. Thus less volatility in international portfolio flows is associated to high interest rate, host country currency depreciation, flow of direct investment to host country...
This study investigates the relationship between political instability and domestic private inves... more This study investigates the relationship between political instability and domestic private investment in Pakistan for the period 1972- 2009. The ARDL co-integration approach and Error Correction Model are employed to examine the existence of long- run relationship between political instability and domestic private investment as well as short- run dynamics of domestic private investment respectively. Results show that political instability has significant negative relation with domestic private investment both in long-run and short-run. Public sector investment and FDI crowd in domestic private investment. Based on the findings of the study it is suggested that there should be a stable political environment so that the structure of the financial system and all sectors of the economy can flourish in a good way and domestic as well as foreign investors avoid to hesitate while investing in the economy. The role of the financial institutions and financial intermediaries in enhancing the...
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