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Articles 1 - 30 of 33
Full-Text Articles in Finance
Equity Liquidity, Firm Investment And Financial Performance: An Assessment Of The Role Of Financial Development, Maria Karim, Abdul Rashid
Equity Liquidity, Firm Investment And Financial Performance: An Assessment Of The Role Of Financial Development, Maria Karim, Abdul Rashid
Business Review
This paper examines the impact of equity liquidity (EQLQ) on firm performance (FPER) and firm investment (FINV) decisions. It also examines whether financial sector development (FSD) decreases the importance of EQLQ for firms' financial performance and investment policy. An unbalanced panel dataset for 360 non-financial Pakistani firms covering the period 2001-2018 is used. The results suggest that increased EQLQ has significant positive impact on firms' investment decisions and financial performance. However, we find that enhanced FSD significantly reduces the investment-favoring and performance enhancing role of EQLQ. The findings on the effects of EQLQ on both FINV and FPER are consistent …
Speculation And Returns' Volatility: Evidence From Pakistan Mercantile Exchange, Falik Shear
Speculation And Returns' Volatility: Evidence From Pakistan Mercantile Exchange, Falik Shear
Business Review
The debate about the role of speculators in commodity markets has been intensified after the financialization. The current study augments the empirical evidence related to speculators and their impact on volatility of commodity markets. In doing so, the study uses daily data between 12th November 2009 to 30th April 2020 for oil and gold future contracts from Pakistan Mercantile Exchange. The findings suggest that speculative activity positively and significantly affects the returns' volatility. These findings support the destabilizing hypothesis, which argues that speculators create distortions in commodity markets. The findings have important implication for market participants (e.g., absence of welfare …
Extreme Tails Behavior In Asian Currency Markets, Sumaira Zia, Arshad Hassan, Ayesha Zia
Extreme Tails Behavior In Asian Currency Markets, Sumaira Zia, Arshad Hassan, Ayesha Zia
Business Review
This study examines extreme tail behavior in Asian currency markets for the period of 2005-2018. Value-at-Risk (VaR) is estimated through Extreme Value Theory (EVT) approach to forecast losses incurred in a day in Asian currencies. Initially EVT approach is used to estimate extreme losses on the left tail of the distribution. Then, the VaR estimation of this approach is back tested through traditional and advance back testing methods to ascertain the accuracy of the models used. Results indicate that the estimation of GPD static model is relevant for extreme risk forecasting in EVT approach at both 95% and 99% confidence …
Quality Minus Junk Factor: A Study On Asset Pricing Dynamics In The Equity Market Of Pakistan, Shahrbano ., Sumayya Chughtai, Tahira Awan
Quality Minus Junk Factor: A Study On Asset Pricing Dynamics In The Equity Market Of Pakistan, Shahrbano ., Sumayya Chughtai, Tahira Awan
Business Review
This study examines the role of quality minus junk factor in explaining cross-sectional differences in stock returns for the equity market of Pakistan. A new factor quality minus junk has been added to the existing Fama & French three factor model (1993) as a fourth factor to check whether it is priced as a risk factor. The study also compares the explanatory power of the newly proposed model with the existing single-factor Capital Asset Pricing Model (CAPM) and Fama & French three factor model (1993). A high quality data set of 70 non-financial firms listed on the PSX is employed …
Volatility Spillover Between Stock Market And Currency Market Of Pakistan In The Presence Of Structural Breaks, Muhammad Jamil, Hifsa Mobeen
Volatility Spillover Between Stock Market And Currency Market Of Pakistan In The Presence Of Structural Breaks, Muhammad Jamil, Hifsa Mobeen
Business Review
This study examines the volatility transmission between the currency market and the stock market of Pakistan in the presence of structural breaks. For this purpose, daily data from the stock market and currency market is analyzed. An empirical investigation is conducted using the bivariate EGARCH model and the test for multiple structural breaks developed by Bai and Perron (2003). This study analyses these markets with the inclusion of sudden changes. Results of the EGARCH model suggest that volatility spillover is positive and bidirectional between these markets of Pakistan.
Fiscal Policy Transmission Mechanism In Pakistan: A General Equilibrium Analysis, Muhammad Raashid, Abdul Saboor, Shahzad Ahmad
Fiscal Policy Transmission Mechanism In Pakistan: A General Equilibrium Analysis, Muhammad Raashid, Abdul Saboor, Shahzad Ahmad
Business Review
This paper explores the impact of fiscal spending on key macroeconomic indicators for Pakistan economy using an estimated open economy new Keynesian dynamic stochastic general equilibrium (DSGE) model. Results show that a positive shock to government consumption leads to fall in private consumption, private investment and exports owing to negative wealth effect, rise in interest rate and domestic currency appreciation, respectively. Imports and inflation also rise. Estimated values of present value fiscal multipliers are 0.54, 0.29 and 0.18 after 1 year, 5 years and 10 years, respectively. These results show that although positive in the short run, yet the magnitude …
Project Management Maturity In Pakistan: An Empirical Investigation, Syed Ahsan Mustaqeem, Rameez Khalid, Syed Irfan Nabi
Project Management Maturity In Pakistan: An Empirical Investigation, Syed Ahsan Mustaqeem, Rameez Khalid, Syed Irfan Nabi
Business Review
This research assesses the current level of PMM in Pakistan, evaluates the gaps in the prevalent project management practices and formulates a framework to improve PMM level in Pakistan. 123 Pakistani organizations were assessed for their levels of PMM and project performance using standard project management maturity models. The average PMM level in Pakistan was found to be 2.32 (on the scale of 1 to 5) and only 24% of the projects carried out were found to be successful. This means that the prevalent project management practices are not yet fully institutionalized. Furthermore, project management training, use of project management …
Corporate Governance And Capital Structure As Driving Force For Financial Performance: Evidence From Non-Financial Listed Companies In Pakistan, Zahid Bashir, Ghulam Ali Bhatti, Asad Javed
Corporate Governance And Capital Structure As Driving Force For Financial Performance: Evidence From Non-Financial Listed Companies In Pakistan, Zahid Bashir, Ghulam Ali Bhatti, Asad Javed
Business Review
This research examines the intervention of capital structure with different characteristics of corporate governance and different measures of financial performance. Data was collected from 113 PSX listed firms ranging from 2013-2018. The study uses multiple regression approach for testing the required set of hypotheses. The results reveal that insider shareholding, and board size significantly but negatively affect financial performance whereas, audit committee’s size positively, and significantly affects financial performance. Furthermore, about 20% of CEOs hold dual positions in listed firms, which also has a positive impact on financial performance. The results also reveal that capital structure positively influences financial performance. …
An Analysis Of The Asymmetric Effect Of Fiscal Policy On Economic Growth In Pakistan: Insights From Non-Linear Ardl, Ibrar Hussain, Muhammad Rafiq, Zahoor Khan
An Analysis Of The Asymmetric Effect Of Fiscal Policy On Economic Growth In Pakistan: Insights From Non-Linear Ardl, Ibrar Hussain, Muhammad Rafiq, Zahoor Khan
Business Review
This paper evaluates the current state of monetary and non-monetary rewards systems in place in the UK banking sector in an attempt to identify reasons for the preference of monetary rewards over non-monetary rewards. Data was collected from two banks, LLOYDS TSB and Royal Bank of Scotland. The selection of these two banks emanates from their recent bonus crises and the fact that they are both part nationalised, hence the need for a prudent reward system. Questionnaires were used to obtain data and the Evidence Based Reward Management (EBRM) methodology was used to highlight the effectiveness as well as the …
General Emotional Labor Scale: Development And Establishing Psychometric Properties, Falak Zehra Mohsin, Nadia Ayub
General Emotional Labor Scale: Development And Establishing Psychometric Properties, Falak Zehra Mohsin, Nadia Ayub
Business Review
This study outlines the process followed in the development of the General Emotional Labor Scale-English (GELS-E). The scale construction process was divided into different phases. The first phase entailed the item generation and the second phase was the pilot study. Phase three and four dealt with developing the norms and establishing the psychometric properties (reliability and validity) of the final 30 items. It can be concluded that the GELS-E was developed as a measure that can be used by researchers to assess emotional labor in professionals. Such a measure of emotional labor can prove to be beneficial for researchers and …
Optimization Of Non-Monetary Reward Provisions: Evidence From The Uk Banking Sector, Ese Okpebholo, Abdullah Zafar Sheikh
Optimization Of Non-Monetary Reward Provisions: Evidence From The Uk Banking Sector, Ese Okpebholo, Abdullah Zafar Sheikh
Business Review
This paper evaluates the current state of monetary and non-monetary rewards systems in place in the UK banking sector in an attempt to identify reasons for the preference of monetary rewards over non-monetary rewards. Data was collected from two banks, LLOYDS TSB and Royal Bank of Scotland. The selection of these two banks emanates from their recent bonus crises and the fact that they are both part nationalised, hence the need for a prudent reward system. Questionnaires were used to obtain data and the Evidence Based Reward Management (EBRM) methodology was used to highlight the effectiveness as well as the …
Deciphering Brand Loyalty Through Brand Association And Emotional Confidence, Amber Gul Rashid, Wajid Hussain Rizvi, Huma Amir
Deciphering Brand Loyalty Through Brand Association And Emotional Confidence, Amber Gul Rashid, Wajid Hussain Rizvi, Huma Amir
Business Review
This paper investigates the influence of emotional confidence and brand association on brand loyalty and whether there is a statistically significant difference in the brand loyalty of consumers having low or high emotional confidence. Data was collected outside fast food restaurants across Karachi using systematic sampling. Every fourth person exiting the restaurant was approached to fill a questionnaire. The data was analyzed using structural equation modelling. The results suggest that both brand association and emotional confidence have a statistically significant influence on brand loyalty. The variance explained in brand loyalty was higher when emotional confidence was included in the model. …
Estimating Proportion Of Noise Traders And Asset Prices, Mirza Faizan Ahmed
Estimating Proportion Of Noise Traders And Asset Prices, Mirza Faizan Ahmed
Business Review
This paper provides empirical evidence of the presence, proportion and trading behavior of noise traders in the U.S. equity market (S&P500 index). A simple methodology is used to estimate the heterogeneous agent asset pricing model involving noise traders’ risk, through GMM. Departing from previous estimations of heterogeneous agent models, it estimates fundamental price using the consumption-based asset pricing model and noise traders’ misperception as deviation from this price. It concludes that noise traders exist in the S&P500, they exaggerate price expectations as compared to fundamental traders, and traders (or investors) are rational, on average.
Examining The Impact Of Personalization On Online Advertising Engagement: Moderating Role Of Privacy Concerns Of Online Users, Uzma Noor, Tahira Awan, Muhammad Zahid
Examining The Impact Of Personalization On Online Advertising Engagement: Moderating Role Of Privacy Concerns Of Online Users, Uzma Noor, Tahira Awan, Muhammad Zahid
Business Review
This study examines online advertising engagement as a potential consequence of perceived personalization in online behavioral advertising (OBA) context. Internet users’ privacy concerns were analyzed as a moderator on perceived personalization and online advertising engagement relationship. Scenario based activity design was used and 409 usable questionnaires were incorporated in the statistical analysis. The collected data was analyzed using (SPSS) 21 and AMOS 23. Hayes method was used to perform moderation analysis. The moderation analysis showed a significant result but in the opposite direction as hypothesized i.e., high level of privacy concerns made the relationship between perceived personalization and online advertising …
Board Structure And Dividend Smoothing: A Case Of Pakistani Listed Firms, Zahid Ali, Assad Ullah, Arshad Ali
Board Structure And Dividend Smoothing: A Case Of Pakistani Listed Firms, Zahid Ali, Assad Ullah, Arshad Ali
Business Review
The purpose of this study is to empirically examine the effects of ownership and board structure on dividend smoothing for listed non-financial firms for the period 2005-2015 on the Pakistan Stock Exchange (PSX) in the light of agency and information asymmetry theory. Two measures, speed of adjustment and relative volatility are used to estimate dividend smoothing. Tobit regression is used for analyzing the effects of board structure on dividend smoothing measured via speed of adjustment while OLS is used for relative volatility. Additionally, the study applies the technique of principal component analysis (PCA) for board index. The results reveal that …
Testing Asset Pricing Models On The Pakistan Stock Exchange, Kiran Lohano, Muhammad Kashif
Testing Asset Pricing Models On The Pakistan Stock Exchange, Kiran Lohano, Muhammad Kashif
Business Review
This study investigates the performance of CAPM, three-factor and five-factor asset pricing models on the Pakistan Stock Exchange using monthly data of 896 companies from November 2000 to December 2016. The results from the time-series approach show that the three-factor model performs relatively better than the CAPM and the five-factor model, whereas the cross-sectional approach establishes the superiority of the five-factor model. It can thus be concluded that it is important to incorporate factors, such as size, value, profitability and investment when predicting returns on securities in the Pakistan Stock Exchange.
Inflation Targeting And Exchange Rate Pass Through In Pakistan: Markov Switching Approach, Safia Minhaj, Muhammad Nishat
Inflation Targeting And Exchange Rate Pass Through In Pakistan: Markov Switching Approach, Safia Minhaj, Muhammad Nishat
Business Review
This study uses Markov switching model to empirically track the existence of exchange rate pass through and inflation trends in Pakistan from 1982 to 2016. The results reveal a direct relationship between pass through and inflation. Furthermore, interest rate and trade variables have a significant impact on inflation. According to the smoothed probabilities, switches between regimes were sudden and sporadic till 1990, after which long spells were observed during high and low inflation regimes.
Earnings Response Coefficient As A Determinant Of Dividend Policy: Testing Free Cash Flow Theory On Non-Financial Dividend Paying Firms In The Pakistan Stock Exchange, Hamid Ullah, Anjum Ihsan
Earnings Response Coefficient As A Determinant Of Dividend Policy: Testing Free Cash Flow Theory On Non-Financial Dividend Paying Firms In The Pakistan Stock Exchange, Hamid Ullah, Anjum Ihsan
Business Review
This study tests Jensen’s free cash flow theory which states that managers overinvest retained earnings in negative NPV projects. A data set of 238 firms listed on the Pakistan Stock Exchange for the period 1999 to 2016 is used. The results of the panel regression model show a significant positive association of the earnings response coefficient and dividend payout ratio, which supports the free cash flow theory in listed Pakistani firms. Moreover, the imposition of the capital gains tax and the financial crisis has further strengthened the positive relationship between ERC and dividend payout ratio.
Role Of Organizational Culture In Psychological Needs Satisfaction And Work Engagement, Quddsia Sadaf, Mudassar Aziz, Gulnaz Anjum
Role Of Organizational Culture In Psychological Needs Satisfaction And Work Engagement, Quddsia Sadaf, Mudassar Aziz, Gulnaz Anjum
Business Review
This paper explores the role of organizational culture in the satisfaction of basic psychological needs and yielding work engagement among public and private sector managers. Results reveal that organizational culture confers employees with a sense of relatedness which promotes work engagement. Additionally, the study suggests that female managers have a higher need for relatedness, the satisfaction of all basic psychological needs is significantly higher among private sector employees and work satisfaction increases with increasing job level. This study can be used for the development of organizational culture to improve relatedness among employees with respect to gender and the type of …
An Evaluation Of The Forecast Performance Of Dsge And Var Models: The Case Of A Developing Country, Shahzad Ahmad, Adnan Haider
An Evaluation Of The Forecast Performance Of Dsge And Var Models: The Case Of A Developing Country, Shahzad Ahmad, Adnan Haider
Business Review
This paper estimates a DSGE model and three versions of VAR models (VARX, BVARX and BVAR) to analyze forecasting performance of these models in context of Pakistan. VAR models and a medium-scale DSGE model are estimated using quarterly data (1980Q4-2017Q2). Expanding window recursive out-of-sample forecasts for GDP growth, call money rate, CPI inflation and percent change in exchange rate are generated and compared over the period 2009Q1-2017Q2. Forecasting performance is analyzed by the comparison of bias and root mean squared errors (RMSE). Analysis of forecasting performance over 1-8 quarters forecast horizon reveals that BVAR model provides relatively better forecast in …
Providing Protection For Better Outcomes: The Need For Boundary Walls At Schools In Pakistan, Abbas Ali Gillani
Providing Protection For Better Outcomes: The Need For Boundary Walls At Schools In Pakistan, Abbas Ali Gillani
Business Review
This paper explores the importance of a boundary wall at school as a measure of protection and safety, by testing the correlation between a school having a boundary wall and its total enrolment. By using panel data estimation with year and district fixed effects we find that across all levels of schooling, having a boundary wall was correlated with higher total enrolment. Enrolment at primary, middle and high school was 4.0 per cent, 2.3 per cent and 3.0 per cent higher. Gender-wise breakup of the results shows similar correlation for both boys and girls at primary level. However, at middle …
The Reversal Strategy: A Test Case For An Emerging Market, Hilal Anwar Butt, Mohsin Sadaqat
The Reversal Strategy: A Test Case For An Emerging Market, Hilal Anwar Butt, Mohsin Sadaqat
Business Review
The reversal strategy in the Pakistan Stock Market has shown significant profits for the time period January 1993 - September 2017. The available asset pricing models are unable to link these returns with the risk premium. This paper explores an alternative channel of predicting risk premium. It suggests that reversal profits can be considered as compensation for providing liquidity to the market during times of high volatility. Results reveal that reversal is stronger for illiquid and volatile stocks. Furthermore, firms that show reversal, are cash constrained, have lower return on asset (ROA) and equity (ROE), lesser operating profitability (OP), investment …
Emotional Intensity: An Additional Dimension To Understand Emotional Confidence And Purchase Intentions, Wajid Hussain Rizvi
Emotional Intensity: An Additional Dimension To Understand Emotional Confidence And Purchase Intentions, Wajid Hussain Rizvi
Business Review
This paper explores the role of emotional intensity as a determinant of emotional confidence and purchase intentions. It analyzes the difference between low and high emotional confidence and emotional intensity groups in terms of their purchase intentions in the car buying context. Only valence and combined valence-intensity structural models were used to assess respective influences on emotional confidence. The results reveal that the combined impact of valence and intensity has a greater positive and significant influence on emotional confidence. Furthermore, groups with higher emotional confidence and higher emotional intensity show higher purchase intentions. This study contributes to a better understanding …
Can Investors Benefit From Momentum Trading? Evidence From An Emerging Market, Sana Tauseef, Mohammad Nishat
Can Investors Benefit From Momentum Trading? Evidence From An Emerging Market, Sana Tauseef, Mohammad Nishat
Business Review
It is claimed that momentum trading strategies generate positive returns. This paper investigates the profitability of momentum investment strategies and their determinants for stocks listed on the Pakistan Stock Exchange using data from the period 2001 to 2015. The results reveal that momentum returns for Pakistani stocks are as high as the returns reported for developed markets. Moreover, the returns earned over the sub-period 2001 to 2007 are mostly positive, whereas those earned over the sub-period 2009 to 2015 are mostly negative. Momentum returns in Pakistan, however, are not caused by temporary over or under reaction of investors in the …
A Retrospective Insight Into Pakistan's Exchange Rate Regimes And Their Impact On The Economy, Lalarukh Ejaz, Madeeha Akhtar
A Retrospective Insight Into Pakistan's Exchange Rate Regimes And Their Impact On The Economy, Lalarukh Ejaz, Madeeha Akhtar
Business Review
Nuclear tests carried out by Pakistan in May 1998 had a distinctive impact on the evolution of the exchange rate. This case describes what happened to the exchange rate before and after the nuclear tests and focuses on the overall impact of Pakistan’s transition from a hostile relationship with the US in the post-Cold War era to becoming an ally of the US in the war on terror. This case can be used to study the concepts of real and nominal exchange rates, the linkage between exchange rate policy and external balance, how exchange rate can be used as a …
The Nexus Of Financial Deepening, Economic Growth, And Poverty: The Case Of Pakistan, Abdur Rehman Aleemi, Muhammad Azam
The Nexus Of Financial Deepening, Economic Growth, And Poverty: The Case Of Pakistan, Abdur Rehman Aleemi, Muhammad Azam
Business Review
This study investigates the nexus of financial development, economic growth, and poverty for Pakistan over a prolonged period of time, 1960- 2012. Autoregressive Distributed Lag (ARDL)-Bounds testing approach to co integration and Unrestricted Error Correction Model (UECM)along with VECM Granger causality have been applied to examine the long-run dynamic relationship among financial development, economic development and poverty. For that purpose, we have developed two models and adopted a new and relatively strong proxy for financial development. The results suggest that financial development negatively affects both long-run and short-run economic growth. However, financial development is found to be positively affecting per …
Does Esg Investment Enhance Investment Returns, Ca. Hemlata Chelawat, I.V. Trivedi
Does Esg Investment Enhance Investment Returns, Ca. Hemlata Chelawat, I.V. Trivedi
Business Review
Over the past decade, Environmental, Social and Governance Investment or ESG Investment has become a mainstream investment approach in the investment community around the world, especially in the US and Europe. There is increasing evidence from academic and practitioner research around the world that better ESG performance by companies leads to reduction in risks, improvement in financial performance, higher stock market valuations and hence, enhanced returns for investors investing in stocks of such companies. Hence, incorporating ESG factors can lead to better informed and improved investment decisions. This has led to development of ESG indices and fonds, to enable investors …
Impact Of Board Characteristics And Audit Committee On Financial Performance: A Study Of Manufacturing Sector Of Pakistan, Arfan Ali, Saad Bin Nasir
Impact Of Board Characteristics And Audit Committee On Financial Performance: A Study Of Manufacturing Sector Of Pakistan, Arfan Ali, Saad Bin Nasir
Business Review
The research will examine the role of corporate governance (CG) practices on firm’s financial performance. Population of this research will be manufacture sector of Pakistan. For the purposes of measurement of impact of corporate governance practices such as board size, board independence, CEO/chairman duality and audit committee will take as independent variables and for the measurement of firm’s performance return on assets and return on equity will take as dependent variables. Panel data regression model will used to estimate the impact of CG on firm performance.
Book Review Of: Why Nations Fail, Ashutosh Mani Dixit
Book Review Of: Why Nations Fail, Ashutosh Mani Dixit
Business Review
The purpose of this article is to assess the contribution of Why Nations Fail about its forefront claim that institution is exclusive determinant of nation’s economic outcome. This paper will examine its findings and put forward arguments and claims of prominent studies about economic development. The paper has been organized in two more section. Immediate section presents chapter wise summary of the book highlighting strengths and key outcomes. While the third section, which is the purpose of the article, offers a critique, than sums up in final section providing some concluding comments.
Asset Price Bubbles With Specific Focus On Stock Prices In Pakistan, Nawaz Ahmad, Rizwan Raheem Ahmed, Yaseen Ahmed Meenai
Asset Price Bubbles With Specific Focus On Stock Prices In Pakistan, Nawaz Ahmad, Rizwan Raheem Ahmed, Yaseen Ahmed Meenai
Business Review
This research paper is an attempt to investigate Asset Price Bubbles (APB) with reference to Pakistan stock market. The analysis of time series graph shows a linear trend between Consumer Price Index (CPI) and Money Supply Index (M2I) whereas a nonlinear trend with stock prices. Moreover, the graph also shows an unequal spread with the stock prices, which indicate Heteroskedasticity. Then, descriptive statistics test shows high Standard Deviations for stock prices compared with CPI and M2I, which indicate a higher volatility in stock prices. Finally, the hypothesis test for equality of variance concluded the presence of Asset Price Bubbles by …