21 research outputs found
The Determinants of Mutual Funds Success in Pakistan
No full textTujuan utama dari penelitian ini adalah untuk mengetahui faktor penentu keberhasilan reksa dana di
Pakistan. Penelitian ini memanfaatkan teknik sampling yang mudah digunakan & data dikumpulkan
dari laporan manajer dana, laporan tahunan & dari CDCPL. Ukuran sampel penelitian ini dilonggarkan
ke enam Perusahaan Manajemen Aset (AMC) dari total 20 untuk periode 2013 hingga 2017. Kami
menerapkan uji akar unit untuk menemukan sifat data dan memeriksa variasi kinerja bersama variabel
oleh Hausmen Teknik. Selain itu, kami menggambarkan hubungan antara variabel dependen dan
independen dengan bantuan Model Koefisien Konstan. Disimpulkan bahwa pengembalian yang disesuaikan
dengan risiko, struktur manajemen & rasio beban memiliki dampak yang signifikan terhadap ukuran
dana dari AMC?S Pakistan terpilih. Namun, nilai aset bersih ditemukan berhubungan negatif dengan
ukuran dana. Penelitian ini akan membantu investor, AMC dan badan pengatur untuk memahami
dinamika reksadana di Pakistan
Is Bankruptcy Risk a Systematic Risk? Evidence from Pakistan Stock Exchange
No full textThis study empirically investigates the relationship between default risk and cross-section of stock returns in the Pakistan Stock Exchange (PSX). Stock price data from all listed and delisted companies use to calculate monthly returns from 2001-2016. Ohlson's O-score is employed to measure exposure of firm to systematic deviation within bankruptcy risk. Besides, asset-pricing models like the Capital Asset Pricing Model (CAPM) and Fama French (FF) models are employed. Portfolios are sorted in deciles by default probability. This result finds that stocks of firms significantly exposed to not diversified Default Risk yield higher returns. Besides that, the FF models explain cross-sectional stock returns since factors incorporate information on financial distress and default. After that, the book-to-market equity factor is not significant in elucidating returns of distressed firms because of market inefficiency. Results have practical implications for portfolio managers and investors of an emerging economy in developing diversified portfolios during periods of uncertainty and market volatility
Monetary Policy and Financial Asset Prices: Empirical Evidence from Pakistan
No full textMekanisme transmisi moneter diasumsikan sangat dipengaruhi oleh pengaruh keputusan kebijakan di
pasar keuangan. Namun, berbagai penelitian sebelumnya telah menghasilkan hasil yang berbeda. Tujuan
dari penelitian ini adalah untuk menguji dampak kebijakan moneter terhadap berbagai kelas aset (saham
dan obligasi) di Pakistan. Untuk mempelajari dampak ini, harga saham dan imbal hasil obligasi telah
diambil sebagai variabel dependen dan tingkat diskonto, jumlah uang beredar, inflasi dan nilai tukar
merupakan variabel bebas. Data semua variabel telah dikumpulkan dari teknik 2010 sampai 2016 dan
Vector Autoregressive (VAR) telah diterapkan. Hasil empiris menunjukkan bahwa ada penurunan harga
saham dan imbal hasil obligasi. Temuan penelitian ini akan membantu calon investor dalam membuat
strategi investasi jangka panjang (secara umum) dan jangka pendek (khususnya) sehubungan dengan
kebijakan monete
Determinants of capital structuring: an empirical study of growth and financing behavior of firms of textile sector in Pakistan
No full textPurpose- Purpose of this study is to investigate the determinants of optimal capital structuring that affect growth and financing behavior of textile sector firms in Pakistan keeping in view the important role capital structuring plays in any firm's financial management decisions and the positive contribution it makes to the creation of firms' value and profitability.
Methodology/sample- Size of the firm (capital), profitability, fixed assets structure and taxes were used as control variables to investigate the determinants of optimal capital structuring of textiles companies. A sample size of 90 textile companies across the country was selected and their data for the 2005 – 2010 periods was used. The determinants of optimal capital structure were examined using correlation and regression analyses. F-value was calculated to test the fitness of overall model.
Findings- Results of the study showed a negative relationship between dependent variable financial leverage and independent variables. The statistical analysis of spinning and composite unit also showed consistency of results with the overall textile sector but outcome of weaving unit showed a significantly positive relationship between dependent and independent variables.
Practical Implications- The findings enhance the knowledge base of determinants optimal capital structure and are likely to help companies take effective decision related to capital structure needs. Furthermore, the study is likely to help the decision makers better adjust themselves towards adopting and considering proficient ways of managing capital structure of a firm
Value Investment Strategies and Asset Pricing: A Case of Pakistan Stock Exchange (PSX)
No full textThe Capital Asset Pricing Model (CAPM) measures only a linear relationship between the Risk and the Return. However, market dynamics and anomalies calls for understanding the relationship in between risk and return from non-linear perspective. Thus, current study explores an opportunity to study asset value anomalies by Constructing Decile Portfolio for the period starting from 2001 to 2018 with 900 firms listed. GMM (Generalized method of moment and Wald test are applied to see the robustness of results. For further analysis, Risk Adjusted CAPM, Fama French 3 Factor (FF3) and 5 Factor (FF5) are applied. Empirical results indicate that value effect and debt to equity ratio are essential factors and genuinely explain what CAPM fails to explain. The findings from the study recommend that investing in High value and high leverage firm will generate abnormal returns to investors. Taking long position in high value firm and short position in low value firms and same with debt to equity anomaly. The results will help financial analyst develop investment strategies for well diversified and efficient portfolios. These results can also be helpful to financial firm and security analyst in the financial market where they can take appropriate capital budget decisions while investing
Analysis of GDP and Macroeconomic Variables on Economic Growth of Pakistan
No full textGDP represents the economic growth of a country. Higher GDP growth is translated as higher economic growth. In case of Pakistan, the GDP is continuously going down due to some macroeconomic factors. This is an alarming situation for the Pakistani government. The main ambition of this study is to interrogate the four selected independent variables which impact on the GDP of a country and verify if the relation holds in Pakistan. This study expects to ascertain the effects on GDP performance in short or long run of inflation, unemployment, foreign direct investment and import prices of goods and services. It utilizes the data of the last 30 years for the Pakistani Economy i.e. the period of 1983 to 2012. Several statistical techniques have been applied. Five SEM models were used to estimate causal relationships. The outcome of this research suggests that the government needs to pay attention (1) to the control of inflation through effective and efficient monetary policy, (2) to increase employment chances by the supporting and establishing new industries and (3) advancing infrastructure. Government of Pakistan should also support Pakistani export in order to decrease heavy import prices and always encourage foreign direct investments. These outcomes will be helpful in managing the economic growth rate of Pakistan.Keywords: Gross Domestic Product, Unemployment, Foreign Direct Investment, Import/ Export, Inflation
Relationship between Efficiency Level of Working Capital Management and Profitability of Firms in the Textile Sector of Pakistan
No full textThe main aim of this study is to investigate the relationship between working capital management (WCM) and firm’s profitability in the textile sector of Pakistan. WCM plays an important role in firm’s financial management decisions. An optimal WCM is expected to contribute positively to the creation of firm’s value and enhancement of its profitability. Working capital, fixed assets’ cost, Cost of production, cost of debt (interest expense), and size (capital) of the firm as control variables are also used to investigate their effect on profitability (net income). A sample size of 55 textile companies in Pakistan has been selected for a period of six years, from 2003 to 2008. The relationship between WCM efficiency and profitability is examined using correlation, regression analyses and ANOVA (Analysis of Variance) test. The results show a strong positive significant relationship between WCM and firm’s profitability in Pakistan’s textile sector. In case of control variables, it is found that there is a significant relationship between working capital, fixed assets’ cost, cost of production, and size (capital) and profitability. However, results show a significant negative relationship between debt used by the firm and its profitability. The findings enhance the knowledge base of WCM and will help companies to manage working capital efficiently. Moreover, it will help the policy makers and decision making authorities to better orient themselves towards considering and adopting efficient ways of managing working capital
Impact of foreign direct investment on economic growth: A case study of Pakistan
No full textPurpose- This research paper aims to analyze the impact of foreign direct investment (FDI) in Pakistan for the period 1981 to 2010. It evaluated the GDP growth performance and assessed the historical trends of the FDI and CPI in Pakistan.
Methodology/Sample- The link between gross domestic product (GDP,) foreign direct investment and Inflation is measured with the help of multiple regression models. GDP in this model is used as dependent variable whereas FDI and inflation (CPI) are measured as independent variables.
Findings- According to the results, the model is overall significant with the positive and significant association of GDP and FDI while a negative and significant relationship found between GDP and inflation.
Practical Implications- On the basis of the empirical results acquired, Policy proposals are advised to attract FDI in Pakistan. Foreign direct investment (FDI) is an essential factor for economic growth in the developing countries. FDI allows the transfer of technology, uplift competition in the domestic input market, contributes to human capital development and Profits created by FDI contribute to corporate tax revenues in the host country
