Departement of Finance

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https://escholar.umt.edu.pk/handle/123456789/509

To be the most innovative and dynamic department recognized for its high quality and creative methodology to disseminate financial knowledge and skills in individuals who will take leadership roles to tackle ever changing financial and economic markets around the globe.

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Browsing Departement of Finance by Subject "Finance"

Now showing 1 - 5 of 5
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    Managing the gap between Actual and Target Capital Structure: An Evidence from Pakistan.
    (Journal of Management and Research., 2015) Rafay, Abdul; Javed Gilani, Usman; Ijaz, Farrukh
    Investment framework is one of the most significant components that impact the company’s value. Reliable funding choices for a company generally lead to a capital structure that increases the firm’s value (Abor, 2006). Early studies provide contradictory reviews about a company’s capital structure decisions. This paper investigates the partial adjustment model for a company’s target capital structure. The study also explores how companies operating in different sectors of Pakistani market adjust towards the target capital structure levels. The study also recognizes that an unanticipated share price change also have an effect on the target capital structure. The results indicate that companies do have target leverage and that their adjustment speed varies from sector to sector of the Pakistani market. A typical sector closes more than 50% of the gap between its actual and its target debt ratios within one year
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    The pricing of descretionary accruals - evidence from Pakistan.
    (Journal of Management and Research., 2015) Khalid, Zunera; Yasser, Farah; Ajmal, Muhammad Mobeen
    Even now with the cutting edge businesses and specialized management, a large number of the firms are owned by families in Pakistan. Agency disagreements and issues exist between the management and the owners as well as the minority shareholders and the block holders. To handle these feuds, accountants use discretionary accruals. These accruals help to manage earnings and smooth sharp trends to protect the interest of management and the owners. This study determines whether the investors manage the earnings through discretionary accruals or do they price these accruals when considering the stock price. This study finds significant evidence that the market prices discretionary accruals. We find that the firms with higher number of institutional ownership, high quality audit production and higher number of independent board have significantly higher impact of discretionary accruals on their stock returns as compared to other firms.
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    Problems and Issues in Transformation from Conventional Banking to Islamic Banking: Literature Review for the Need of a Comprehensive Framework for a Smooth Change.
    (City University Research Journal., 2015) Rafay, Abdul; Sadiq, Ramla
    During last few decades, conventional financial systems are being transformed to Islamic financial systems in many countries around the globe. One of the major components of Islamic financial system is Islamic Banking. As most of the economies were not ready for this change, Islamic banks and financial institutions were and are confronted by many difficulties primarily due to non-existence of a comprehensive framework. We studied these transformation problems and issues in Far Eastern countries being the first entrants in this transformation phase. Among a large number of problems some are lack of general awareness among various stakeholders, existence of different schools of thought within Islam and insufficient/ineffective legal rules and regulations. Concerted efforts are not made to develop a new framework in line with the sensibilities towards the role of religion in commercial and financial activities of society and to introduce laws compliant with core Shariah principles, prudential standard requirements for supervision, disclosure requirements for financial statements, corporate governance and transparency requirements, new product development requirement, consumer code of conduct to name a few. New entrants in Islamic Banking may take benefit of this learning curve.
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    The Role of Islamic Finance in Sustainable Development.
    (Journal of Islamic Thought and Civilization., 2015) Sadiq, Ramla; Mushtaq, Afia
    The current global inclination is to utilize non-renewable resources responsibly and create a world that future generations can thrive in. In order to achieve this aspiration countries all over the world agreed upon a set of sustainable development goals (SDGs). Sustainable development is a concept that incorporates meeting “the needs of the present without compromising the ability of future generations to meet their own needs”. This depends largely upon economic growth. Islamic finance has been highlighted in recent research regarding impact on financial sector due to its considerable growth. The purpose of this paper is to discuss the major perspectives in which Islamic Financial Institutions (IFIs) play a fundamental role in the achievement of sustainable development goals. The literature suggests five main aspects which are reviewed from the perspective of existing research.
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    Volatility Modeling for Spot and Futures of Crude Oil–Evidence from Pakistan.
    (Abasyn University Journal of Social Sciences., 2015) Rafay, Abdul; Javed Gilani, Usman; Naeem, Muhammad Abu Bakar; Ijaz, Maham
    In this article, we study the volatility of Spots and Futures of Crude Oil using daily data from the period 2010-2013. We examine both the Crude Oil Spots and Crude Oil Futures traded on the Pakistan Mercantile Exchange. Our main findings suggest that (1) shocks tend to persist over a long period of time for both Crude Oil Spots and Crude Oil Futures; and (2) shocks have asymmetric effect on the volatility. Hence our findings indicate that behavior of Crude Oil Spots prices and Crude Oil Future prices tends to vary over time.