This study aims to examine the direct and indirect links between behavioral biases and investor’s investment decisions via the mediating role of risk perception through structural equation modeling. The study is conducted among individual investors who are engaged in investment for several years in Pakistan Stock Exchange. Purposive sampling technique was used for data collection and the sample size was consisted of 450 questionnaires. The findings contribute that risk perception mediates between blue-chip stocks and investment decisions. Furthermore, risk perception does not play the mediating role between herding bias, disposition effect, and investment decisions. However, the disposition effect has a strong direct relationship with risk perception. The study is beneficial to individual investors who can make investment decisions by self-estimation rather than to follow the others’ opinion. The proper training and education to the investors is also an appropriate path to overcome these biases. Risk is the major factor that discourages investment decisions but blue-chip stocks are a major risk eliminating factor while building investment decisions. Most of the prior studies focused on behavioral biases and investment decisions of individual investors but this study contributed to the mediating effect of risk perception. Human capital, anomalies, computer literacy, and artificial technology could also be used as a mediator and moderator for future orientation.

We investigate the impact of stock return volatility on different capital structure measures of nonfinancial firms in a dynamic panel model. Two‐step system generalized method of moment dynamic panel estimator is applied to nonfinancial sector's data from Pakistan Stock Exchange over the period 2001–2014. The results imply that stock return volatility has a significant negative impact on book leverage and long‐term market leverage ratios. However, stock return volatility causes the increase in total market leverage ratios. Moreover, book leverage and long‐term market leverage of firms decrease as a result of an increase in stock return volatility in different classification of firms. Conversely, stock return volatility has a significant positive impact on total market leverage ratios in those classifications of firms. Capital structure decisions are more sensitive to stock return volatility as default risk increases. Firms significantly go for the reduction in their debt financing due to high stock returns volatility and to avoid from possible consequences of default. The results are robust to alternative measures such as cash flow volatility and earnings volatility.

Many critical decisions about an employee’s innovative performance are significantly based on the training results, as they are accountable for a variety of behavioral-related consequences. Training is among the most important human resource management strategies. The aim of this study is to examine the relationship between employees’ perceptions of training and their innovative behavior in the Malaysian SME sector, as well as the mediating effect of affective and calculative commitment on this relationship. Structured questionnaires were used to collect the data. A total of 635 employees from 200 SMEs were selected through a stratified random sampling method, and structural equation modeling was applied to test the relationship. The findings of the study supported the hypothesized relationships, as training in Malaysia significantly engaged SME employees in innovative behavior. Furthermore, the study discovered that affective and calculative commitment have partial mediating effects on the association between training and innovative behavior. In the context of the SME sector, theoretical and managerial implications have been addressed. The originality of the study is that it examines the relationship between employees’ perceptions of training and their innovative behavior in SMEs. The relationship was measured using a multidimensional approach in the study. The research also adds to the body of knowledge by identifying the mediating effect of affective and calculative commitment.

The influence of corporate social responsibility (CSR) on employees' positive psychological capital in stressful situations remains unexplored in the literature for small and medium enterprises (SMEs). This study aims to examine how CSR could assist employees in developing psychological capital during the COVID-19 pandemic. In order to understand the aforesaid relationship, an attempt is made to study the mediation effect of affective commitment. Structural equation modelling (AMOS 21.0) was used for data analysis and hypothesis testing on a sample of 545 employees from 356 Malaysian SMEs. The results of this study showed that SMEs' CSR policies helped to improve the positive psychological capital of their employees during the COVID-19 pandemic. Also, affective commitment complementary mediates the relationship between CSR and psychological capital. During the COVID-19 pandemic, SMEs should come up with a consistent way to implement CSR policies and procedures to improve employees' psychological capital and increase their affective commitment toward the enterprise. There are two main contributions to the literature from this study, in addition to enriching previous empirical research on CSR. As a first contribution to the CSR literature, it examines how CSR impacts employees' psychological capital during a pandemic. COVID-19 is one of the recent pandemics that offers an opportunity to examine its effects on employee psychological state. Secondly, the results of the study add to the growing body of empirical research that supports affective commitment's significant relationship with CSR and enhances employees' psychological capital during a pandemic in a developing market.

The role of country governance quality between sustainable development performance and firm value in emerging economies is the fundamental objective of this study. The targeted firms are comprised on the firms that have initiated sustainable development practices for public welfare and the data was comprised of 2011–2022. The country level governance plays an indispensable role towards ESG initiatives and firm value in emerging economies. The efficient country governance develops the frameworks which are best suited for the firm in their environmental disclosures and it can increase their value. They can initiate the sustainable development practices for society wellbeing and can create the better image in the market. In this way, the sustainable performance and better firm value can be insured.

Corporate Social responsibility is the major challenge for senior management of firms and they devoted the significant resources for CSR initiatives. Despite of significant comprehension of CSR, an ongoing debate is still under consideration about its economic repercussions in terms of “do well by doing good”. Corporations are facing huge leverage cost with bad customer reputation in the product market. This study attempt to examine this phenomenon as the cost of high leverage in socially responsible firms and the product market interactions of those firms. The data is collected from 2009-2020 in linear dynamic setting for product market interaction, and two step system GMM estimation technique is applied for endogeneity concerns. The study identified that socially responsible firms are experiencing better growth in their sales in product market that maximize the financial benefits. However, the high leverage cost worsen their performance in product market because leverage is associated with some losses in market share due to unfavorable actions of competitors and customers. Socially responsible firms experience the low cost of high leverage which helps the firms to increase the performance in product market. Moreover, the corporate governance effectively devises the strategies to diminish the high leverage cost in the way towards better product market interactions. The results are conclusive across the financial crisis, firm’s classifications and different channels of firms. The study enables the holistic and broader understanding of CSR in the reduction of high leverage cost with an intention to increase the firm’s sustainability in product market. The study contributes with a view to ascertain the cost of high leverage in socially responsible firms for product market interactions of Pakistani firms in a linear dynamic panel.