2019

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https://escholar.umt.edu.pk/handle/123456789/3991

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    Credit Ratings are influenced by Corporate Governance Multiple Factors
    (UMT.Lahore, 2019-02) SHAHID MUSHTAQ
    Study aims to examine Influence of Corporate Governance multiple factors on the Credit Ratings of banking sectors across two emerging economies that is Pakistani and Sri Lanka. Authenticity of results are proven by applying multiple models that include ordinary least square regression, generalized least square regression and random effect regression. Models are applied on panel data that is extracted from financial statements of banks for six years horizon that is from FY2011 to FY 2016. Study perceives that board size and board independence having negatively significant and board meetings having positively significant influence on credit ratings for Sri Lankan banking sector. Whereas, audit committees having positively significant influenced on credit ratings for Pakistani banking sector. Further, study also perceives earnings per year having positively significant influence on credit ratings for economies, return on assets having positively and return on equity having negatively significant influence on Sri Lankan banking sector. Capital adequacy ratio and nonperforming loans having no influence on credit ratings of both economics banking sectors.
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    Determinants of Dividend Payout Ratio and its Impact on Subsequent Earning Growth
    (UMT.Lahore, 2019-07-26) Abdurehman Khan
    An organization decision regarding the amount of a dividend to be paid and the level of the profit to be retained is often referred to ‘Dividend policy’. This study is conducted to examine the main determinants of dividend payout ratio. Moreover, this study also examines the association between dividend payout ratios and company’s subsequent earnings growth. The study try to see the relationship and implication the dividend payout with related variable such as firm size, cash balance, firm stability, free cash flows, financial structure, profitability and dividend yield to firm’s future earnings. The sample involve of 51 listed non financial companies in Pakistan Stock Exchange over the period 2012 to 2018. Multiple regression models is used and found that a significant positive association between cash balance, firm stability, free cash flows, profitability and dividend payout ratio. The empirical findings also suggested a significant positive relationship between the firm’s earnings growth and dividend payout ratio. This study presents original research for dividend payout in Pakistan and implication to the company growth in the future. The result support existing literature on dividend payout and growth.
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    Disaggregated GDP and Carbon Emissions – Testing Nonlinearity for Selected HDR Listed Countries
    (UMT, Lahore, 2019) Mubasher Iqbal
    The environmental deteriorating problem is worldwide; in this regard economic activities are to blame. This situation of environmental degradation can be more communicated with the help of Environmental Kuznets Curve (EKC). This idea of EKC presents, at the initial phase of economic activities caused to create environmental problem but after a specific level it become mature and turn into environment friendly. This study aims to explore the existence of EKC, with respect to three categories; industrial, agricultural and services. Not only this control variables like urbanization, population density, forests square area and globalization also regressed to formulate the suitable policies to protect the environment. For this purpose the sample is selected on the basis of Human Development Index (HDI). The basic statistical techniques like descriptive statistics, correlation and unit root test are used to express the features of data. For the sake of regression analysis Feasible Generalized Least square (FGLS) method is used as estimation technique. So, the estimated results are confirming the existence of all three types of EKCs in selected HDR countries moreover the control variables are also caused to affect the environment and caused to increase carbon dioxide emissions.
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    Global Trade Network Analysis to Strategies Pakistan Trade Policy
    (UMT.Lahore, 2019-12-21) Zia Ur Rehman
    In global trade market competitiveness is a superlative game. Eloquent comparison, peer countries concert identification, making meaningful insights, identification of competitive challenges, performance gaps and challenges identification is important for policy makers to stay and drive in the main trade stream. Understanding the competitiveness is a vibrant and relative process. What drives competitiveness and how key players evolve over time in a metric and performs in the global trade market is important to identify the resilience of any country’s trading network. For Pakistan, paper scrutinizes in detail that the Pakistan’s trade concert in the light of evolving global challenges and recognizes the key structural issues. Primary objective of this study is to explore the robustness of Pakistan trade network by using the network analysis methodologies and to familiarize the readers with the methods incorporate for calculation, Visualization and exploration of the network and trade statistics. A verity of visualization are presented to descript the topological properties of trade networks, fabricating and conversing frequently used network statistics and imparting some precise topics. Network analysis approaches are used as a compelling toll to delineate Bilateral Trade relation among the countries where interdependences matters and trading is considered with robust heterogeneity and high dimensionality. For the purpose, UN Comtrade Database is explored along with network analysis methodologies for visualizing the world trade networks to define and elaborate the topologies of the networks and discussing both binary and weighted versions. Defining the clusters to identify the countries shares common statistics and to see how the countries are positioned in relation to others along with understanding the relative size of competitiveness gaps is the primary implication of this study. In this research work, world trade network is explored with a combination of network analysis techniques and also familiarizing the reader to some of the methods used to evaluate, visualize and represent the world trade network data. Different conception of trade network are presented to describe the topological properties along with commonly used statistics. We have observed that network analysis techniques are suitable to describe the trade relations among the countries described by high diversification and the position of each trading country in the network rendering to its comparative centrality.
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    Identifying Moderating Role of Income Smoothing and Credit Quality Towards Corporate Governance and its Determinants
    (UMT.Lahore, 2019) Damian Honey
    Using panel data of eighteen commercial banks of Pakistan including convention and Islamic for the period 2007 to 2017. The study aims to identify the moderating effect among corporate governance and its determinants. Based on existing literature the corporate governance is found to have impact on risk management, regulatory capital and profitability. Whereas incorporating moderating variables such as income smoothing and credit quality is the novel concept behind this study. The results successfully reveal significant moderation on corporate governance and its determinants. Among number of findings it is noticed that board meetings and blockholder ownership has positive whereas institutional ownership has negative relation towards risk management, regulatory capital and profitability including the specific moderator variable. The study contributes in several ways, since this study is first to incorporate moderating effect between corporate governance and determinants hence itself is a contribution towards body of knowledge and researchers. Secondly practitioners are suggested to consider these key corporate governance factors to improve the in-house governance mechanism in terms of competitor commercial banks. Whereas regulators may disseminate the importance of identified corporate governance characteristics with further improvements. The idea of future research emerged from this study is to discover the impact of managerial ownership on income smoothing practices by managers.
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    Impact of Macroeconomic and Bank Specific Factors on Liquidity of Commercial Banks in Pakistan
    (UMT.Lahore, 2019-10-19) Muhammad Waqas Awan
    Financial system stability has been gaining crucial consideration on both, national and international level in terms of structural, institutional and macroeconomic aspects. The money as a medium of exchange and bank as an intermediary cannot be comprehend by visualizing a world without them. It can be observed that old modalities of banking system have been replaced by many innovations in the new millennium. In order to evaluate the soundness and steadiness of a banking sector, it is considered imperative to associate banking system with its liquidity position. Therefore, this study is conducted to determine the influence of bank specific and macro environmental variables on the liquidity of commercial banks in Pakistan. The data is taken from 20 commercial banks over the period 2009 to 2018. Different panel data regression models are used. The study found that leverage (LEV) and capital adequacy ratio (CAR) have negative but significant impact on the liquidity of the banks. Moreover, exchange rate (FER) found to have positive and significant effect on the liquidity of the commercial banks. Furthermore, there is insignificant relation of asset size (SIZE), government deficit financing (GDF) and inflation rate (INF) with the bank‟s liquidity.
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    Portfolio Optimization between Conventional Stocks and Shariah Compliant Stocks
    (UMT.Lahore, 2019) Adeeba Rashid
    This study includes the comparison of performance among conventional stock and Islamic stock indices of Pakistan and also portfolio diversification among these stock indices. The Benchmark Index (KSE-100) and Shariah Index (KMI-30) have been taken for comparison. The monthly returns calculated for the time frame of July 2009 to December 2017. In order to compare the performance among these indices the measures used are Sharpe measure, Treynor measure and Jensen’s alpha. Similarly, Markowitz adjustment for Risk-Adjusted Return framework employed in order to achieve the optimal weights of the stocks in investment portfolios. The findings shows that the Benchmark index has greater performance than Islamic stock index. The conventional stock index has better opportunities for investment as the risk exposure is minimum by having maximum expected returns. Hence, the conventional stock index of Pakistan has a high potential for investment opportunities as compared to Islamic stock index and investors can have greater returns by investing in these stocks.
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    Transparency, Liquidity, and Market Value
    (UMT.Lahore, 2019-02) Saud
    The history of finance has witnessed a number of crises over the period of time since its emergence. Among the most significant are the 1930’s Great Depression, Oil Crises, Black Monday, Asian Financial Crisis, and the 2008 Global Meltdown. All of these events have one thing in common; impact on the liquidity of the stocks. In the aftermath of the 2008 global meltdown findings suggested that transparency was the key factor causing a liquidity freeze in the market. Finding no such study in Pakistan which had investigated the relationship of transparency and liquidity this research vows to fulfill the gap. It therefore attempts to investigate the effect of transparency on the liquidity of the stock, extreme market events, and commonality of the liquidity. Further, it also investigates whether the variability of liquidity, extreme market events, and commonality of liquidity have any effect on the market value of the stock. A sample of 40 firms from PSX-100 Index comprising of 320 observations were taken for the years starting from 2010 to 2017. Analyzing the data using Ordinary Least Square (OLS), Generalized Least Squares (GLS), and Panel regression model it was found that earning smoothing is negatively associated with the variability of the liquidity and positively with LBH. Moreover, Liquidity volatility and LBH were also negatively associated with the TOBIN-Q. Earnings management in the Pakistan’s financial market is positively perceived by both analysts and investors. The implications of this these findings will urge the regulators in developing a framework focusing on the earnings management.