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 "Financial Performance"

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    Diversification and corporate performance: an evaluation of Pakistani firms
    (2008) Choudhary Slahudin; Talat Afza; Mian Sajid Nazir
    Diversification continues to be an important strategy for corporate growth and better financial performance. The relationship between the diversification strategy and profitability as well as diversification and market power has been explored by a number of studies for the developed economies. The present study is an attempt to investigate the relationship between diversification and a firm’s financial performance in the case of Pakistan. A sample of 65 firms have been categorized as diversified and non-diversified. For these firms, the financial performance in terms of risk and return has been analyzed with the return measured by Return on Assets (ROA), Return on Equity (ROE), Market Rate of Return (MKRT) and Tobin’s q, and the coefficient of variation used as the measure of risk. The results show that the non-diversified firms performed better than the diversified firms. However, the high return of non-diversified firms is accompanied by low risk and the low return of diversified firms is more risky. But there is a contrast in results based on book values and market values. The paper concludes that managers have to be careful while selecting the degree of diversification since the diversified firm may capture more market share but it can reduce its profitability
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    Impact of Intellectual Capital on Firms Financial Performance In Pakistan
    (2017-04-05) Mumtaz, Sidra
    Abstract: The motive of the study is to assure the significance of intellectual capital on firm’s financial performance in Pakistan’s non-financial sector from 2008-2014. It is a clear fact that intellectual capital plays substantial role in profitability and productivity of a business organization. Previous studies found a number of variables to measure the components of intellectual capital and firm’s profitability. However, this study includes modified value added intellectual capital (M-VAIC™) which is a restructured form of value added intellectual coefficient (VAIC™) introduced by (Pulic, 2000). In this research the progress of an organization is ascertained by different profitability ratios. Leverage, growth and firm size are taken as control variables.The companies should focus on their human, structural and relational capital because there is no company which can exist without the involvement of intellectual capital. It is a clear fact that tangible assets are important for growth and profitability of business and enhance also the productive resources of company. The results show that intellectual capital has significant role in the performance of non-financial companies in Pakistan. This study shows that intellectual capital positively affects operating income return on investment and return on assets.