School of Commerce and Accountancy

Permanent URI for this collection

https://escholar.umt.edu.pk/handle/123456789/1206

Browse

Browsing School of Commerce and Accountancy by Subject "MS"

Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    Does Discretionary Accruals Affect the Financing Behaviour of Firms? Evidence from Pakistan (A case of selected non-financial listed firms)
    (University of Management & Technology, 2017) Rehan Siddique, Muhammad
    Purpose- In order to run organizations effectively and efficiently capital structure is consider as essential element. Researchers often try to explain the determinants of capital structure. After the mega corporate scandals like Enron, WorldCom, financial reporting disclosures has become one of the most discussed topics. The prime objective of this research is to explore the relationship between discretionary accruals and financing behaviour of a firm. Design/Methodology/Approach- Secondary research is done in this study in order to find out the relationship between discretionary accruals and financing behavior of a firm. This study covers a period from 2010 to 2015, further the proxy will used to measure financing behavior is gearing ratio and discretionary accruals will be calculated by modified Jones model. In order to find out this relationship fixed effect regression model is applied. Findings Result explains that discretionary accruals have a significant and positive relationship with gearing ratio. This reflects that those firms that manage their earnings have a higher leverage. Whereas on other hand Return on Assets (ROA) and size of a firm have a negative and significant relationship with gearing ratio. Furthermore tangibility has a positive and significant relationship with gearing ratio and Return on equity (ROE) has negative relationship but this relationship is insignificant. Originality / Value-This paper is useful organizations, companies as well as for Institute of Charted Accountants of Pakistan. This paper is equally useful for academic institutions as well as for future researchers.
  • Thumbnail Image
    Item
    Financial Distress and Corporate Governance (Evidence from Pakistan)
    (University of Management & Technology, 2018) Ahmed, Waqas
    The present study is conducted to determine the relationship between corporate governance and financial distress. The objective of this study is to analyze whether corporate governance variables can predict financial distress, and to explore relationship between corporate governance mechanisms and financial distress for Pakistani listed companies. This study is descriptive in nature and random sampling is used to determine the relationship between corporate governance mechanism and financial distress. Population consisted of all firms registered on PSE and data is collected from 2011 to 2016. Sample consisted of 93 financially distressed firms and EPS is used as proxy for financially distressed firms. Those firms whose EPS is decreasing during given years are considered as financially distressed firms. Data is analyzed by using statistical methods, as data in present study is panel in nature, so fixed & random model is also applied to extract the relationship between dependent and independent variable. Results of this study show that board size of financially distressed firms was large with less independent directors. Firms hold less number of boards of directors meetings. It is also found in this study that financially distressed firms debt ratio was 46% and some firms are also following CEO duality.