Corporate governance and cost of capital: evidence from Pakistani listed firms

This thesis investigates the effectiveness of Corporate Governance (CG) reforms in Pakistan. Using a sample of 160 Pakistani firms from 2003 to 2013 and governance data collected manually from the annual reports, this thesis investigates seven closely related and important corporate issues that are related to the compliance of governance rules. Specifically, it aims to : (i) investigate the degree of CG compliance with 2002 Pakistani Code of CG (PCCG); (ii) determine whether the introduction of 2002 PCCG has improved Pakistani CG practices; (iii) investigate the determinants of CG compliance and disclosure for Pakistani listed firms; (iv) test the nexus between CG compliance with the 2002 PCCG and firms’ cost of capital (COC); (v) investigate the impact of different individual CG mechanisms on listed firms COC; (vi) examine how different ownership structures impact on firms’ COC; and (vii) analyse relationship between CG structures and Cost of Equity (COE) as well as Cost of Debt (COD) for Pakistani listed firms. These empirical investigations report some important results. First, the reported findings suggest that Pakistani firms have responded positively to governance disclosure requirements over the eleven year period from 2003 to 2013. The results also show that the introduction of the PCCG in 2002 has improved CG standards by Pakistani listed firms. Second, the reported results related to the determinants of CG compliance demonstrate that significant and positive association between institutional, government and foreign ownership with CG compliance. However, findings relating to the determinants of CG compliance show a negative and significant association between board size and block ownership with CG compliance and disclosure. The study finds no significant relationship between director ownership, audit firm size and the presence of female board members with the constructed Pakistan Corporate Governance Index (PCGI). Third, the investigation on the relationship between CG and COC report a significantly negative nexus between PCGI and firms’ COC. The investigation on the association between ownership structures and COC report a negative and significant nexus between block ownership with firms’ COC. Further, a number of robustness analyses performed in this study suggest that the empirical results reported in this study are generally robust to the alternative CG variables, alternative COC variables and potential endogeneity problems.

Towards an understanding of Pakistani undergraduates’ current attitudes towards learning and speaking English

The English language has an important place in Pakistan and in its education system, not least because of the global status of English and its role in employment. Realising the need to enhance language learning outcomes, especially at the tertiary level, the Higher Education Commission (HEC) of Pakistan has put in place some important measures to improve the quality of English language teaching practice through its English Language Teaching Reforms (ELTR) project. However, there is a complex linguistic, educational and ethnic diversity in Pakistan and that diversity, alongside the historical and current role of English in the country, makes any language teaching reform particularly challenging. I argue, in this thesis, that reform to date has largely ignored the issues of learner readiness to learn and learner perceptions of the use of English. I argue that studying learner attitudes is important if we are to understand how learners perceive the practice of learning and the use of English in their lives. This study focuses on the attitudes of undergraduate learners of English as a foreign language at two universities in the provinces of Sindh and Balochistan in Pakistan. These provinces have experienced long struggles and movements related to linguistic and ethnic rights and both educate students from all of the districts of their respective provinces. Drawing on debates around linguistic imperialism, economic necessity, and linguistic and educational diversity, I focus on learners’ perceptions about learning and speaking English, asking what their attitudes are towards learning and speaking English with particular reference to socio-psychological factors at a given time and context, including perceived threats to their culture, religion, and mother tongue. I ask how they make choices about learning and speaking English in different domains of language use and question their motivation to learn and speak English. Additionally, I explore issues of anxiety with reference to their use of English. Following a predominantly qualitative mixed methods research approach, the study employs two research tools: an adapted Likert Scale questionnaire completed by 300 students and semi-structured interviews with 20 participants from the two universities. The data were analysed through descriptive statistics and qualitative content analysis, with each set of data synthesised for interpretation. The findings suggest that, compared with the past, the majority of participants hold positive attitudes towards learning and speaking English regardless of their ethnic or linguistic backgrounds. Most of these undergraduate students do not perceive the use of English as a threat to their culture, mother tongue or religious values but, instead, they have a pragmatic and, at the same time, aspirational attitude to the learning and use of English. I present these results and conclude this thesis with reference to ways in which this small-scale study contributes to a better understanding of learner attitudes and perceptions. Acknowledging the limitations of this study, I suggest ways in which the study, enhanced and extended by further research, might have implications for practice, theory and policy in English language teaching and learning in Pakistan.

Recent educational changes at higher educational level in Pakistan: English language teachers' perceptions and practices

Higher Education Institutes (HEIs) of any country could be a source of providing professionals to the country in many fields. By doing so, HEIs could play a pivotal role in the economic growth of the country. In Pakistan, it seems that, in the wake of this realization, steps have been taken to reform Higher Education. Drawing on the Triple I model of educational change covering Initiation, Implementation and Institutionalization (Fullan, 2007) this study focuses on the planning and implementation of reforms in the Education system of Pakistan at higher education level that have been introduced by the Higher Education Commission (HEC) since its inception in 2002. Kennedy’s model of hierarchical subsystems affecting innovation and Chin and Benne’s (1985) description of strategies for implementing change also provided guidelines for analyzing the changes in education in the country to highlight the role that the authorities expect the language teacher to play in the process of implementing these changes. A qualitative method is followed in this study to gather data from English language teachers at three universities of the Khyber Pakhtunkhwa province of Pakistan. A questionnaire was developed to look into the perceptions of English language teachers regarding the impact of these reforms. This was followed up by interviews. Responses from 28 teachers were received through questionnaire out of which 9 teachers were interviewed for detailed analysis of their perceptions. Thematic Content analysis was used to analyze and interpret the data. Some of the most significant changes that the respondents reported knowledge of included the introduction of Semester System, extending the Bachelors degree to four years from two years, promotion of research culture, and increased teachers’ autonomy in classroom practices. Implications of these reforms for English teachers’ professional development were also explored. The data indicate that the teachers generally have a positive attitude towards the changes. However, the data also show concerns that teachers have about the practical effectiveness of these changes in improving English language teaching and learning in Pakistani Universities. Some of the areas of concern are worries regarding resources, the assessment system, the number of qualified teachers, and instability in the educational policy. They are concerned about the training facilities and quality of the professional training available to them. Moreover, they report that training opportunities for their professional development are not available to all the teachers equally. Despite the HEC claims of providing regular training opportunities, the majority of the teachers did not receive any formal training in the last three years, while some teachers were able to access these opportunities multiple times. Through the recent reforms HEC has empowered the teachers in conducting the learning/teacher processes but this extra power has reduced their accountability and they can exercise these powers without any check on them. This empowerment is limited to the classroom and there appears to be no or minimal involvement in decision making at the top level of policy making. Such lack of involvement in the policy decisions seems to be generating a lack of sense of ownership among the teachers (Fullan 2003a:6). Although Quality Enhancement Cells have been developed in the universities to assure the desired quality of education, they might need a more active role to contribute in achieving the level of enhancement in education expected from them. Based on the perceptions of the respondents of this study and the review of the relevant literature, it is argued that it is unlikely for the reforms to be institutionalized if teachers are not given the right kind of awareness at the initiation stage and are not prepared at the implementation stage to cope with the challenge of a complex process. The teachers participating in this study, in general, have positive and enthusiastic attitudes towards most of the changes, in spite of some reservations. It could also be interesting to see if the power centers of the Pakistani Higher Education appreciate this enthusiasm and channel it for a strong Higher Education system in the country.