This study aims to uncover the determinants for the formulation of accounting practices and their impact on firm performance in Pakistan through the lens of institutional theory. Based on a pragmatic approach, this study has collected data from 455 participants and 21 semi-structured interviews have been conducted. Firstly, it is noted that accounting practices can be traced back to the Mughal regime, and subsequently underwent a major development in the British colonial system. Secondly, our results indicate that institutional factors, namely, accounting regulatory framework, political factors, economic factors, cultural factors, and country-specific factors have also played a major role in the development of accounting practices after the creation of Pakistan as a separate state. Finally, this study suggests that the development of accounting practices have a novel contribution towards the performance of firms. This research thus provides a pathway for policymakers in this county to closing the gaps between accounting practices and the policies of the International Accounting Standard Board (IASB). Furthermore, firms can enhance their performance by implementing international accounting standards. This paper helps Pakistan’s regulatory institutions such as the SECP (Securities and Exchange Commission of Pakistan) and SBP (State Bank of Pakistan) in the process of developing new policies. Such decisions are related, but not limited to: attracting foreign investments, economic expansion, and international trade. Furthermore, it provides a pathway for firms to improve their performance. Ultimately, this research fills the gap as concerns international accounting standards by assessing, both empirically and theoretically, the role of various determinants for the formulation of accounting practices and their impact on the performance of firms.

Purpose: This study investigates how transformational leadership influences psychological empowerment among police officers, emphasizing the mediating role of organizational culture. Focusing on the Punjab Police, Pakistan, it seeks to illuminate how leadership dynamics and cultural mechanisms shape empowerment within hierarchical policing institutions. Design/methodology/approach: Data were collected from 412 officers, with 386 valid responses analyzed using structural equation modeling (SEM). Confirmatory factor analysis supported the adequacy of the measurement model, and bootstrapping procedures tested the mediation effects. Findings: The SEM results indicate that transformational leadership has a significant positive effect on psychological empowerment (β = 0.493, p < 0.001). Organizational culture also exerts a significant influence on psychological empowerment (β = 0.561, p < 0.001) and partially mediates the relationship between transformational leadership and empowerment (indirect effect = 0.231, 95% CI [0.171, 0.302]). Practical implications: The results highlight the importance of integrating transformational leadership training with organizational culture development initiatives. Leadership programs focusing on trust, collaboration, and innovation can enhance officers' intrinsic motivation and job satisfaction, ultimately improving institutional performance and public trust in policing. Originality/value: By empirically testing the mediating role of organizational culture in a South Asian policing context, this study contributes to leadership and empowerment theory. It demonstrates that even within rigid and hierarchical systems, transformational leadership supported by a constructive culture can significantly foster psychological empowerment among police personnel.