IDEAS home Printed from https://ideas.repec.org/a/aaw/grrjrn/v4y2019i2p329-343.html
   My bibliography  Save this article

Expounding the Structure of Slyer Ways of Tunneling in Pakistan

Author

Listed:
  • Abdul Aziz Khan Niazi

    (Assistant Professor, Institute of Business and Management, University of Engineering and Technology, Lahore, Punjab, Pakistan.)

  • Tehmina Fiaz Qazi

    (Assistant Professor,Institute of Business and Management,University of Engineering and Technology, Lahore, Punjab, Pakistan.)

  • Abdul Basit

    (Academics Head,Business Administration, Lahore Institute of Science and Technology, Lahore, Punjab, Pakistan.)

Abstract

This study is aimed to expound the structure of slyer ways of tunneling in Pakistan. It also analyzes relationships among these factors. Design of study encompasses on review of contemporary literature, survey for collection of data, analysis, and modeling. Review of literature is used to prepare a list of ways of tunneling, ISM is affianced for modeling contextual relationships, and MICMAC for classification of factors. The results of the literature show that there are sixteen slyer ways of tunneling. The result of ISM reveals that there is an underlying structure having three levels. The third level is occupied by “purchasing un-necessary items†and “exchanging the assets at relatively lesser value†hence are the most critical factors. Findings of MICMAC affirm the result of ISM and pinpoint that the aforementioned factors have high driving power and are key factors. Tunneling is a sensitive topic of corporate governance and conducting research on this topic is worthwhile for all stakeholders.

Suggested Citation

  • Abdul Aziz Khan Niazi & Tehmina Fiaz Qazi & Abdul Basit, 2019. "Expounding the Structure of Slyer Ways of Tunneling in Pakistan," Global Regional Review, Humanity Only, vol. 4(2), pages 329-343, June.
    • Handle: RePEc:aaw:grrjrn:v:4:y:2019:i:2:p:329-343
    DOI: 10.31703/grr.2019(IV-II).35
    as

    Download full text from publisher

    File URL: https://grrjournal.com/jadmin/Auther/31rvIolA2LALJouq9hkR/qZNTw6DJBc.pdf
    Download Restriction: no
    File URL: https://www.grrjournal.com/issue/Expounding-the-Structure-of-Slyer-Ways-of-Tunneling-in-Pakistan
    Download Restriction: no
    File URL: https://libkey.io/10.31703/grr.2019(IV-II).35?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Avinash, A. & Sasikumar, P. & Murugesan, A., 2018. "Understanding the interaction among the barriers of biodiesel production from waste cooking oil in India- an interpretive structural modeling approach," Renewable Energy, Elsevier, vol. 127(C), pages 678-684.
    2. Helen Wei Hu & Pei Sun, 2019. "What determines the severity of tunneling in China?," Asia Pacific Journal of Management, Springer, vol. 36(1), pages 161-184, March.
    3. Masood Fooladi & Maryam Farhadi, 2019. "Corporate governance and detrimental related party transactions," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 27(2), pages 196-227, May.
    4. Monika Dhochak & Anil Kumar Sharma, 2016. "Using interpretive structural modeling in venture capitalists’ decision-making process," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 43(1), pages 53-65, March.
    5. Ma, Liangbo & Ma, Shiguang & Tian, Gary, 2013. "Political connections, founder-managers, and their impact on tunneling in China's listed firms," Pacific-Basin Finance Journal, Elsevier, vol. 24(C), pages 312-339.
    6. Yi Cai & Chunping Xia, 2018. "Interpretive Structural Analysis of Interrelationships among the Elements of Characteristic Agriculture Development in Chinese Rural Poverty Alleviation," Sustainability, MDPI, vol. 10(3), pages 1-19, March.
    7. Shahid Hussain & Nabeel Safdar, 2018. "Tunneling: Evidence from Family Business Groups of Pakistan," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 10(2), pages 97-122, June.
    8. Yezhen Wan & Leon Wong, 2015. "Ownership, related party transactions and performance in China," Accounting Research Journal, Emerald Group Publishing Limited, vol. 28(2), pages 143-159, September.
    9. Du, Julan & He, Qing & Yuen, San Wing, 2013. "Tunneling and the decision to go private: Evidence from Hong Kong," Pacific-Basin Finance Journal, Elsevier, vol. 22(C), pages 50-68.
    10. Jiang, Guohua & Rao, Pingui & Yue, Heng, 2015. "Tunneling through Non-Operational Fund Occupancy: An investigation based on officially identified activities," Journal of Corporate Finance, Elsevier, vol. 32(C), pages 295-311.
    11. Simon Johnson, 2000. "Tunneling," American Economic Review, American Economic Association, vol. 90(2), pages 22-27, May.
    12. Jin-hui Luo & Di-fang Wan & Di Cai, 2012. "The private benefits of control in Chinese listed firms: Do cash flow rights always reduce controlling shareholders’ tunneling?," Asia Pacific Journal of Management, Springer, vol. 29(2), pages 499-518, June.
    13. Tanya Y.H. Tang, 2016. "Privatization, tunneling, and tax avoidance in Chinese SOEs," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 24(3), pages 274-294, September.
    14. Atanassov, Julian & Mandell, Aaron J., 2018. "Corporate governance and dividend policy: Evidence of tunneling from master limited partnerships," Journal of Corporate Finance, Elsevier, vol. 53(C), pages 106-132.
    15. Cheung, Yan-Leung & Rau, P. Raghavendra & Stouraitis, Aris, 2006. "Tunneling, propping, and expropriation: evidence from connected party transactions in Hong Kong," Journal of Financial Economics, Elsevier, vol. 82(2), pages 343-386, November.
    16. C. Vasanthakumar & S. Vinodh & K. Ramesh, 2016. "Application of interpretive structural modelling for analysis of factors influencing lean remanufacturing practices," International Journal of Production Research, Taylor & Francis Journals, vol. 54(24), pages 7439-7452, December.
    17. Wang, Kun & Xiao, Xing, 2011. "Controlling shareholders' tunneling and executive compensation: Evidence from China," Journal of Accounting and Public Policy, Elsevier, vol. 30(1), pages 89-100, January.
    18. Moataz El-Helaly, 2018. "Related-party transactions: a review of the regulation, governance and auditing literature," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 33(8/9), pages 779-806, October.
    19. Aharony, Joseph & Wang, Jiwei & Yuan, Hongqi, 2010. "Tunneling as an incentive for earnings management during the IPO process in China," Journal of Accounting and Public Policy, Elsevier, vol. 29(1), pages 1-26, January.
    20. Li, Guoping, 2010. "The pervasiveness and severity of tunneling by controlling shareholders in China," China Economic Review, Elsevier, vol. 21(2), pages 310-323, June.
    21. Tianshu Zhang & Jun Huang, 2013. "The value of group affiliation: evidence from the 2008 financial crisis," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 9(4), pages 332-350, September.
    22. Sushil, 2017. "Modified ISM/TISM Process with Simultaneous Transitivity Checks for Reducing Direct Pair Comparisons," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 18(4), pages 331-351, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fiaz Ahmad Sulehri & Mohammad Ahmed & Amjad Ali, 2022. "Proprietorship Structure and Firm Performance in the Context of Tunneling: An Empirical Analysis of Non-Financial Firms in Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(4), pages 115-124, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shan, Yuan George, 2015. "Value relevance, earnings management and corporate governance in China," Emerging Markets Review, Elsevier, vol. 23(C), pages 186-207.
    2. Abdul Aziz Khan Niazi & Tehmina Fiaz Qazi & Abdul Basit, 2019. "An Interpretive Structural Model of Barriers in Implementing Corporate Governance (CG) in Pakistan," Global Regional Review, Humanity Only, vol. 4(1), pages 359-375, March.
    3. Andrew M. Bauer & Junxiong Fang & Jeffrey Pittman & Yinqi Zhang & Yuping Zhao, 2020. "How Aggressive Tax Planning Facilitates the Diversion of Corporate Resources: Evidence from Path Analysis†," Contemporary Accounting Research, John Wiley & Sons, vol. 37(3), pages 1882-1913, September.
    4. Cheng, Minying & Lin, Bingxuan & Wei, Minghai, 2015. "Executive compensation in family firms: The effect of multiple family members," Journal of Corporate Finance, Elsevier, vol. 32(C), pages 238-257.
    5. Su, Zhong-qin & Fung, Hung-Gay & Huang, Deng-shi & Shen, Chung-Hua, 2014. "Cash dividends, expropriation, and political connections: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 29(C), pages 260-272.
    6. Mohd Mohid Rahmat & Kamran Ahmed & Gerald J. Lobo, 2020. "Related Party Transactions, Value Relevance and Informativeness of Earnings: Evidence from Four Economies in East Asia," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-42, March.
    7. Jun Chen & Wang Dong & Jamie Tong & Feida Zhang, 2018. "Corporate Philanthropy and Tunneling: Evidence from China," Journal of Business Ethics, Springer, vol. 150(1), pages 135-157, June.
    8. Choi, Daewoung & Gam, Yong Kyu & Shin, Hojong, 2020. "Corporate fraud under pyramidal ownership structure: Evidence from a regulatory reform," Emerging Markets Review, Elsevier, vol. 45(C).
    9. Wei Huang, 2016. "Tunneling through related-party loan guarantees: evidence from a quasi-experiment in China," Review of Quantitative Finance and Accounting, Springer, vol. 47(3), pages 857-884, October.
    10. Miaowei Peng & Xue Tan, 2023. "Does controlling persons’ foreign residency rights influence executive compensation?," Review of Managerial Science, Springer, vol. 17(7), pages 2375-2416, October.
    11. Habib, Ahsan & Muhammadi, Abdul Haris & Jiang, Haiyan, 2017. "Political Connections and Related Party Transactions: Evidence from Indonesia," The International Journal of Accounting, Elsevier, vol. 52(1), pages 45-63.
    12. Lin, Nan & Liu, Chengyi & Chen, Sicen & Pan, Jianping & Zhang, Pengdong, 2022. "The monitoring role of venture capital on controllers' tunneling: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 82(C).
    13. Muhammad Zeeshan Shaukat & Madiha Saleem & Muhammad Usman Ajmal Mirza & Abdul Basit & Abdul Aziz Khan Niazi, 2023. "Using Interpretive Structural Modelling (ISM) to Impose Hierarchy on Critical Issues of Contractual Bargaining: A Study of Construction Industry of Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(3), pages 69-84.
    14. Amon Chizema & Wei Jiang & Jing-Ming Kuo & Xiaoqi Song, 2020. "Mutual funds, tunneling and firm performance: evidence from China," Review of Quantitative Finance and Accounting, Springer, vol. 55(1), pages 355-387, July.
    15. Chen, Ching-Lung & Chen, Chung-Yu & Weng, Pei-Yu, 2020. "Do related party transactions always deteriorate earnings informativeness?," The North American Journal of Economics and Finance, Elsevier, vol. 54(C).
    16. Alhashel, Bader S. & Albader, Sulaiman H., 2020. "How do sovereign wealth funds pay their portfolio companies’ executives? Evidence from Kuwait," International Review of Economics & Finance, Elsevier, vol. 67(C), pages 303-322.
    17. Aaron J. Mandell, 2022. "The value of tunneling: Evidence from master limited partnership formations," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 49(1-2), pages 355-380, January.
    18. Abdullah Almutairi & Baban Eulaiwi & Robert Evans & Grantley Taylor, 2023. "Tax Haven Use and Related‐Party Transactions: Evidence from Australia," Australian Accounting Review, CPA Australia, vol. 33(4), pages 352-374, December.
    19. Jiang, Guohua & Rao, Pingui & Yue, Heng, 2015. "Tunneling through Non-Operational Fund Occupancy: An investigation based on officially identified activities," Journal of Corporate Finance, Elsevier, vol. 32(C), pages 295-311.
    20. Lou, Fang & Wang, Jiwei & Yuan, Hongqi, 2014. "Causes and consequences of corporate asset exchanges by listed companies in China," International Review of Economics & Finance, Elsevier, vol. 31(C), pages 205-217.

    More about this item

    Keywords

    Corporate governance; ISM; MICMAC; Pakistan; stakeholders; tunneling.;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aaw:grrjrn:v:4:y:2019:i:2:p:329-343. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: M Imran Khan (email available below). General contact details of provider: http://www.humanityonly.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.