Endogeneity Quagmire Empirical Evidence from Telecommunication Industry of Pakistan
Abstract
Purpose: The research aims to analyze the particular quagmire of endogeneity by u panel data with the renowned challenge of limited periods.
Design/Methodology/Approach: This study employed panel data generalized method of moments (GMM) approach.
Findings: Results show a presence of a significant and a negative relationship between operational risk and management performance and returns, thereby emphasizing the importance of operational risk management for enhanced performance in light of the theory of performance frontiers introduced by Schmenner and Swink in 1998.
Implications/Originality/Value: The results suggest that the focus on operational risk management should be revitalized if the firms seeks an improved performance and a sustainable competitive advantage.
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