...topic. 1 Determinants Of Capital Structure in cement industry of Pakistan 2 Impact of interest rate on stock market 3 A study based on the effects of interest rate (KIBOR) on share price 4 Market Interest rate and commercial bank profitability in Pakistan 5 Determinants of Corporate dividend payout policy 6 Effects of Free Cash flow on profitability of firms 7 Determinant of dividend payout ratio: A study of Pakistani fertilizer sector 8 Fundamentals and stock returns in Pakistan 9 Effects of mergers and acquisition in banking sector of Pakistan 10 Impact of Privatization of banks on profitability 11 Can risk aversion indicators anticipate financial crises? 12 Cash flow and capital spending relationship: evidence from automobile sector 13 Impact of Privatization on profitability and efficiency of banks in Pakistan 14 To study the relationship between price earning ratio and return on investment 15 A test of price earning ratio to predict future growths 16 Factors affect on the dividend payout ratio (sugar industry) 17 Impact of macro-economic variables on stock sector of Pakistan 18 Relationship between Cash flow and investment spending in textile industry 19 Impact of taxation on firm’s dividend payout/ratio 20 Share price volatility explicatedmeasured by fundamentals 21 Stock price and economic variables ( Interest rate, inflation and GDP) 22 Determinants of P/E Ratio 23 Impact of capital structure on profitability 24 Impact of interest rate changes on...
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...diKalim Hyder & Qazi Masood Ahmed 107 Why Private Investment In Pakistan Has Collapsed And How It Can Be Restored Kalim Hyder and Qazi Masood Ahmed* Abstract The purpose of this paper is to analyse the decline in private investment and formulate a comprehensive strategy to overcome this problem, which is the main cause of deceleration in the growth momentum of Pakistan’s economy. Due to lack of investor confidence, private investment has reached its lowest point in the recent economic history of the private sector led growth phase (1978 to 2002) in Pakistan. This paper argues that economic as well as non-economic factors are responsible for this declining investment. Economic policies are formulated in such a manner that the short-term objectives of lowering the fiscal and trade deficits were to some extent achieved but overall economic performance and investment were ignored. In order to control external trade deficits, a policy of devaluation increased the cost of production through an increase in prices of imported raw material especially of plant and machinery. Higher real interest rates due to excessive public borrowing that were due to the failure in reducing fiscal deficits has resulted in financial crowding out and has corroded the savings that might be used to finance private investment. The unexplained part of private investment that is not determined by economic factors can be attributed to non-economic factors, which include internal and external shocks. These...
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...OF TRADE DEFICIT ON THE ECONOMY OF PAKISTAN Mohsin Abbas Superior University, Lahore, Pakistan Hassan Raza (Corresponding author) University of Lahore, Lahore, Pakistan Abstract This study has conducted to find the effects of trade deficit on the economy of Pakistan in which trade deficit is the independent and gross domestic product, foreign direct investment exchange rate are the dependent variables. Depending on the availability of data we have selected the longest possible sample period to avoid the small sample bias. A sample period of 24 years has been selected for this study for the period of 1988-2011 with annual frequency. We use histogram, scatter plot matrix and the correlations ordinary least square method of regression has been used for the analysis.Histogramof exchange rate show rupees value against U.S dollar are continuously decrease. FDI is also not good, Gross domestic product (GDP) of the Pakistan is also very low trade,In histogram also represent the trade volume (TV) in which imports of Pakistan is very high while export is low. Scatter plot show the positive relationship dependent and independent variables except trade volume. So its result shows if the government working on these variables then trade deficit should automatically decrease like 2003 and 2004 in which our export are more as compare to import .correlation coefficient of trade deficit with gross domestic product, foreign direct investment, exchange rate has shown the moderate correlation...
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...Malaysia and Pakistan Muhammad Mahmud and Gobind M. Herani and A.W. Rajar and Wahid Farooqi KASBIT, KABIT, Sindh University, Indus Institute of Higher Education 20. April 2009 Online at http://mpra.ub.uni-muenchen.de/15003/ MPRA Paper No. 15003, posted 4. May 2009 07:34 UTC Indus Journal of Management & Social Sciences, 3(1):9-17 (Spring 2009) http://indus.edu.pk/journal.php Economic Factors Influencing Corporate Capital Structure in Three Asian Countries: Evidence from Japan, Malaysia and Pakistan Muhammad Mahmud*, Gobind M. Herani** A. W. Rajar*** and Wahid Farooqi**** ABSTRACT This study is an attempt to determine the factors that influence a firm’s choice of capital structure in three Asian countries: Japan, Malaysia and Pakistan. The specific objective is to investigate if country’s economic factors play a significant role in determining capital structure between markets. These countries are chosen in order to represent three different stages of economic development. Literature review reveals that considerable research has been made in the industrialized countries on the similar topic. Capital structure is one of the most complex areas of strategic financial decision making due to its interrelationship with macroeconomic variables. This study reveals that per capita GNP growth for Japan and Malaysia is significantly related to capital structure of firm and higher economic growth tends to cause to use more long term debt. These results for Pakistan are different...
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...DOES MONETARY POLICY INFLUENCE ECONOMIC GROWTH IN PAKISTAN? Haji Saif Ullah (Author) Email: hajisaif@live.com Muhammad Ashraf (coordinator) Department of Management Sciences University Of Gujrat, Gujrat ABSTRACT This study examines the impact of monetary policy on economic growth in Pakistan. The study uses time-series data covering the range of 1991 to 2011.The effects of stochastic shocks of each of the endogenous variables are explored using Error Correction Model (ECM). The study shows that Long run relationship exists among the variables. Also, the core finding of this study shows that inflation rate, exchange rate and external reserve are significant monetary policy instruments that drive growth in Pakistan. It is therefore recommended that the establishment of primary and secondary government bond markets that can also increase the efficiency of monetary policy and reduce the government’s need to rely on the central bank for direct financing. Keywords: Policy instruments, Economic Growth, GDP, Money supply, monetary policy INTRODUCTION The aim of this study is to examine the impact of monetary policy on economic growth. Economic growth is an important macroeconomic objective for any country. Monetary policy has direct relation with economic growth. Folawewo and Osinubi (2006) stated monetary policy as the arrangements which are planned to control supply of money in a country. In many countries the basic aims of the monetary policy are to stabilize prices...
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...Determinants of firm Short term Financing behavior: Evidence from Listed firms in Pakistan Muhammad Shahbaz 0132-BH-BAF-10 Faizan Saeed 1091-BH-BAF-10 Session: 2010---2014 Department Of Economics GC University, Lahore Determinants of firm short term financing behavior:Evidence of Listed firms in Pakistan | Submitted to GC University, Lahore in Partial fulfillment to the requirement For the award of degree of BS (Hons) In Business Accounting and Finance By Muhammad Shahbaz Faizan Saeed Roll No | 0132 | BH | BAF | 10 | Roll No | 1091 | BH | BAF | 10 | Session: 2010-2014 Department Of Economics GC University, Lahore RESEARCH COMPLETION CERTIFICATE It is certified that the research contained in this dissertation titled “Determinants of firm short term Financing behavior: Evidence from Listed Firms in Pakistan”, has been carried out and completed by Mr. Muhammad Shahbaz (Roll No 0132-BH-BAF-10) and Mr. Faizan Saeed (Roll No 1091-BH-BAF-10) under my guidance and supervision. The quantum and the quality of the work, contained in this dissertation, are adequate for the award of Degree of BS (Hons.) in Business Accounting and Finance Date: ______________________ ___________________ Mr. Nisar Ahmed Supervisor Department of Economics ...
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...Research Article: IMPACT OF INTEREST RATE ON INVESTMENT Farhan Nawaz UNIVERSITY OF GUJRAT, PAKISTAN Waqas Akram UNIVERSITY OF GUJRAT, PAKISTAN Abstract: The main aim of this study is to investigate “the impact of interest rate on investment” in an economy. For this purpose three main variables are selected which are Interest rate, Income level and Investment. Two variables are independent (Interest rate and Income level) and One variable is dependent (Investment). The hypothesis of this study is that the Investment has a negative association with interest rate and Investment has positive relationship with income. Interest rate has negative effect on investment and investment has a positive relation with the income level. We use questionnaire for finding our results and questionnaire are filled by different students of business studies. We find that there is a Negative relation between the interest rate and investment. If our finding matches with economic theory and others researchers finding than policy makers can make better policies for the economy. Impact of interest rate on Investment Introduction: An interest rate is the rate at which interest is paid by borrowers for the use of money that they borrow from a lender. Interest rate is the cost of borrowing money. When interest rate increases the overall investment is reduces. Most of the businesses invest partially or wholly is credited. When increases in the interest rate companies have to put more...
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...Research Article: IMPACT OF INTEREST RATE ON INVESTMENT Farhan Nawaz UNIVERSITY OF GUJRAT, PAKISTAN E-mail: 10050920-086@uog.edu.pk Waqas Akram UNIVERSITY OF GUJRAT, PAKISTAN E-mail: 10050920-084@uog.edu.pk Abstract: The main aim of this study is to investigate “the impact of interest rate on investment” in an economy. For this purpose three main variables are selected which are Interest rate, Income level and Investment. Two variables are independent (Interest rate and Income level) and One variable is dependent (Investment). The hypothesis of this study is that the Investment has a negative association with interest rate and Investment has positive relationship with income. Interest rate has negative effect on investment and investment has a positive relation with the income level. We use questionnaire for finding our results and questionnaire are filled by different students of business studies. We find that there is a Negative relation between the interest rate and investment. If our finding matches with economic theory and others researchers finding than policy makers can make better policies for the economy. Impact of interest rate on Investment Introduction: An interest rate is the rate at which interest is paid by borrowers for the use of money that they borrow from a lender. Interest rate is the cost of borrowing money. When interest rate increases the overall investment is reduces. Most of the businesses invest partially or wholly is credited...
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...BRAND IMAGE OF ISLAMIC BANKS SUBMITTED BY TARIQ JALEES LT.COL(RETD) RAZA KAMAL ASSISTANT PROFESSOR DIRECTOR ACADEMICS COLLEGE OF MANAGEMENT SCIENCE PAF-KARACHI INSTITUTE OF ECONOMIC AND TECHNOLOGY KORANGI CREEK , KARACHI-75190 WWW.PAFKIET.EDU.PK UAN 111-723-733 TELEPHONE 5091114-7 FAX 92215091118 RESIDENCE ADDRESS OF TARIQ JALEES 87-Q, BLOCK-2, PECHS, KARACHI, RESIDENCE TELEPHONE 9221-4556308 MOBILE 0300-82007019 EMAL TARIQUEJ2004@YAHOO.COM TARIQJ@PAFKIET.EDU.PK 1 BRAND IMAGE OF ISLAMIC BANKS 1.0.0 Introduction What is Islamic banking? What is brand Image? Both the topics independently have been researched, discussed and deliberated so many times that the readers generally don’t fancy reading them. However, there is not a single research to best of our knowledge wherein researchers may have combined both the diversified topics. Lack of research on “brand image of Islamic bank” was one of the major motivator for undertaking this research. Thus the objective of this paper was to measure the brand image of Islamic banks, and develop the profile of the customers of Islamic banks. 1.1.0 Literature Survey In order to develop the conceptual background, the literature review has been structured as follows: 1.1.2 A brief over view on Islamic banking and literature on consumer behavior, characteristics and perception towards Shariah banks A brief overview of branding imaging concept An Overview Islamic Banking There are about 270 Islamic banks around the world (including subsidiaries...
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...Between Exchange Rate and Inflation in Pakistanby Shagufta KashifAbstractThere has been a long-standing interest in studying the factors that are responsible for uneven vacillation in the stable growth of the world economies. Lots and lots of theoretical literature and empirical evidences have addresses this issue in the past. Hike in prices of goods and services and foreign exchange are two important aspects which are deemed responsible for such potholed fluctuations in the economic growthThe volatility of the nature of prices is a major source of concern in all countries since 1970s. The issue is of a more serious nature in the developing countries where inflation in foreign countries known as “imported inflation” is seen to be driving “local/domestic inflation”; making domestic policies to control inflation ineffective. Similarly, in Pakistan, the domestic price level rose from the mid-1970s. The exchange rate started depreciating continuously from the early 1980s. Continuous devaluation of currency and inflation in the 1980s seems to suggest a correlation between the two variables.The studies by Rana and Dowling (1983) suggest that foreign inflation is the most influencing factor in explaining the change in local price level in nine less-developed countries of Asia during the period 1973-79. This study suggests that these countries cannot exercise much control over domestic inflation, however, the policies of their major trading partners (through exchange rate) had a significant...
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...ISSN 2225-0972(Online) Vol.4, No.11, 2014 www.iiste.org Relationship between Capital Structure and Ownership Structure: A Comparative Study of Textile and Non Textile Manufacturing Firms Muhammad Arslan* M.Phil (Management Sciences) Bahria University Islamabad, Pakistan, PO box 44000, E-8, Islamabad, Pakistan Email: MuhammadArslan73@gmail.com Rashid Zaman M.Phil (Management Sciences), Bahria University Islamabad, Pakistan Email: Rashidzamantanoli@gmail.com Abstract The current study explores the impact of ownership structure on capital structure in textile sector and rest of the manufacturing sectors (non-textile) in Pakistan using regression analysis with fixed effect model. As textile sector is the largest manufacturing sector in Pakistan and having diversified financial characteristics, however, there exists a gap whether textile sector’s ownership and capital structure relationship matches with other manufacturing sectors or not. Current study tries to fill this gap. The results indicate that in textile sector, no significant relationship exists between ownership concentration and capital structure whereas a significant negative relationship is found between these two variables in case of non-textile firms in Pakistan. However, institutional ownership variable was found to be non-significant in both textile and non-textile sectors. Other control variables were found to have the results as hypothesized. Period of study used in this study is 2006-2009 and sample comprises of KSE...
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...Service quality; Service features; and Customer complaint handling as the major determinants of customer satisfaction in Banking sector: A Case study of National Bank of Pakistan Ishfaq Ahmed1, Shafiq Gul2, Umer Hayat3, Mohammad Qasim44 Introduction Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. The study is intended to identify customer satisfaction and retention is critical for retail banks, and investigates the major determinants of customer satisfaction and future intentions in the retail bank sector. Identifies the determinants which include service quality dimensions (e.g. getting it right the first time), service features (e.g. competitive interest rates), service problems, service recovery and products used. Finds, in particular, that service problems and the bank’s service recovery ability have a major impact on customer satisfaction and intentions to switch. This study investigates the relationship between perceived performance, satisfaction and behavioural intention, and the extent to which each is associated with actual performance, customers' attributions for problems...
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...Problem Statement Rising rate of inflation in Pakistan in last decade, factors that impact this rise in inflation. The factors are monetary i.e. money supply, exchange rate and real GDP and other factors are banking and non-banking borrowings. Research attempts to give solutions for problem that how, why, and when these factors affect the rate of inflation. Research is aimed to identify reasons due to which inflation is rising in Pakistan and give solution for this problem. Review of Literature Inflation & Importance The general movement of a country's overall price level is of primary concern to all and more so if the movement is upward. The problem of inflation has virtually become a major concern for all economies - over the last few decades, Inflation has been accelerating at an alarming rate in most of developing countries. (Mohammed Sabihuddin Butt and Haroon Jamal: A MONETARIST APPROACH TO INFLATION FOR PAKISTAN: Pakistan Economic and Social Review Vol.X XVI No.2 (Winter1988) pp 69-87) Inflation adversely affects the overall growth, the financial sector development and the vulnerable poor segment of the population. There is clear consensus that even moderate levels of inflation damage real growth. Inflation decreases the real income and also induces uncertainty. Considering such adverse impacts of inflation on the economy, there is a consensus among the worlds' leading central banks that the price stability is the prime objective of monetary policy and...
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...members who contributed and who are contributing to this project, was vital for the success of the project. We are grateful for their constant support and help. ABSTRACT: This research is conducted just to explore that what are the issues and challenges as also what opportunities are there for the Islamic banks in Pakistan. As Pakistan is a Muslim country and the main population is of Muslims, there is a great importance of Islamic banking in this country and people are getting aware of this financial system. But the main challenge here that is faced by the Islamic banking is that Pakistan govt. is supporting conventional banking more. For this research interviews were taken from the employees and the customers of Islamic banks. These interviews are about the basics of the Islamic banking, about the awareness of Muslim society, the opportunities for the development and growth and the challenges that are faced by the Islamic banks in Pakistan. This research shows that as the Muslims in Pakistan want halal banking and are switching towards Islamic banks as they want to live their lives according to Islam, so there are opportunities for the Islamic financial system in Pakistan. In order to make this financial system successful the banking authorities should...
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...FISCAL INCENTIVES, THE COST OF CAPITAL AND FOREIGN DIRECT INVESTMENT IN PAKISTAN: A NEO-CLASSICAL APPROACH Submitted by ZAHIR SHAH Assistant professor, Government College of Commerce Mansehra, N.W.F.P A research paper submitted to Pakistan Institute of Development Economics (PIDE) to be presented in the Annual Conference 2003. FISCAL INCENTIVES, THE COST OF CAPITAL AND FOREIGN DIRECT INVESTMENT IN PAKISTAN: A NEO-CLASSICAL APPROACH1 By ZAHIR SHAH• Abstract This paper analyses the attractiveness of Foreign Direct Investment (FDI) in Pakistan with special emphasis on the cost of capital element in effecting the rate of return and the internal cash flow for investment of the investing firms. Using the Jorgenson’s Neo-classical Investment Model the cost of capital is computed after considering the taxation policy and the treatment of invested capital. The paper elaborated fiscal provisions and their implications on the investment environment specifically available to foreign investors in Pakistan. The computed results show consistent and influencing impact of the cost of capital on FDI inflows. The objective of the study is to explore the a realistic and in depth investigation of the tax concessions and the response of investors. The paper argues that fiscal incentives are more appropriate in attracting FDI as these have no direct drain over public resources and are increase the after tax return by availing the tax holidays and depreciation allowances. 1. Introduction ...
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