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Employee Ownership and Financial Performance of State-Owned Entities: A Mediating Role of Employee Loyalty

Author

Listed:
  • Tariq Javed*

    (Universiti Pendidikan Sultan Idris, Malaysia)

  • Mohd Faizal Basri

    (Universiti Pendidikan Sultan Idris, Malaysia)

Abstract

The paper examines the mediation impact of employee loyalty in the relationship of employee ownership and financial performance of state-owned entities of Pakistan. Employee ownership is measured as percentage holding in state-owned entities, and financial performance is assessed trough profitability ratios; net profit margin and return on assets. Employee loyalty is determined through questionnaire circulated among the employees covered under the scheme. Meanwhile, secondary data is collected from already published sources. The study reveals that employee loyalty partially mediates the impact of employee ownership on the financial performance, which will support the policy makers to design corporate policies.

Suggested Citation

  • Tariq Javed* & Mohd Faizal Basri, 2019. "Employee Ownership and Financial Performance of State-Owned Entities: A Mediating Role of Employee Loyalty," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 5(3), pages 640-645, 03-2019.
    • Handle: RePEc:arp:tjssrr:2019:p:640-645
    as

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    References listed on IDEAS

    as
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