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Item Intellectual capital(UMT,Lahore, 2017) Muhammad Zain ul AbidinItem Bridging nexus between the Financial Returns of the Film Industry and its determinants A case of Pakistan Film Industry(UMT,Lahore, 2017-12) Waqar Hassan RandhawaThe purpose of this study is to discern the determinants of the returns of movies in its distinctive genre in context of cinematic factor and financial impact factors. We further tested the adequacy of the current return being a success story in comparison to past. A total of 900 movies sample has been chosen and stratified into equivalent number relating to the old era (1980-2006) and new era (2007-2016). The data demographically relates to the major cities of Pakistan; Lahore, Karachi, Islamabad, Rawalpindi, Peshawar & Quetta. The data is further stratified into Returns (Based upon Box office collection and Investment) and with respect to their perceived determinants, cast, direction, story & Music. We have also tested perceived Financial Determinants (Cast remuneration, variable production cost and promotional expenses). For determining the quantum of returns independent sample T statistics was applied. In order to test the significance of perceived determinants of returns of the movies OLS regression was applied. Our study indicates a surge in returns. Furthermore it reveals that cast and direction are the most significant predictors for the returns, whereas music and story has only shown partial predictability. We have established empirically that for Pakistan film industry the financial returns heavily bank on the financial determinants in which more prominently the cast remuneration and the direct variable cost have major to contribute.Item Does Hot Money Drive Pakistan’s Capital and Real Estate Market? A case from Pakistan(UMT,Lahore, 2017-12) Isma RasheedThe primary purpose of this study is to examine the impact of hot money on major economic markets of Pakistan such as stock market, and real estate market. Hot money or speculative cash inflow is generally associated with higher volatility. It can create financial bubbles. Particularly in emerging economies, hot money or speculative cash inflows are considered as major influential factor on these major markets. In order to ascertain the evidence of underlying facts we have used hot money as dependent variable and two major economic indicators KSE_100 and Housing price as independent variable. Sharp Ratio and policy rate are taken as control variable. Monthly data is collected from January 2011 to December 2016. To determine the impact of hot money on these economic markets robust time series techniques such as Augmented Dickey-Fuller test, JJ co integration, Granger causality, Impulse response function and Variance decomposition tests are applied. Test results indicate that hot money has marginal influence to explain volatility in real estate and capital market of Pakistan. Our economic conditions affect the behavior pattern of investors. Study results also depict a very little contribution of short term speculative funds for these two markets. The volatility and rise in these two markets may be the cause of GDP growth, bank lending’s, rural-urban migration and urbanization. There might be a functional role of terrorism, peace conditions in Pakistan, political instability; higher level of remittances, family owned business set up of Pakistan can be the reason of marginal influence of hot money in Pakistan.Item The Stock Volatility and Contagion Effect – Study from Pakistan(UMT,Lahore, 2017-12) Muhammad MuaazAbstract The notion of efficient market hypothesis has dominated the financial markets for a long period of time which explicitly states the prices of the securities reflect all levels of information available. This fact was pursued by many of the rational investors but in response to the global market crash, the concept of behavioral finance emerged and the patterns changed. In a decision making process, a relational financial decision maker must take into account not only returns but also the variance and volatility of returns. The primary feature of this study examine the sentiments approach and random walk theory effects on the Pakistan stock market, in addition to this, forecast the volatility of Pakistan stock exchange index by using past index values, whether such noise traders are present in the Pakistan stock exchange. Furthermore investigates the effect of the market index contagion factor, risk, return and volatility effect on Pakistan stock exchange using the GARCH estimation models. These results propose that market index and volatility have an impact and an important role in determining the dynamics on the stock returns. In this study, quantitative methods have been adopt to investigate the research hypothesis. Time series data of stock indices from 2000 to 2015 is used to conduct this research. Augmented Dickey Fuller test (ADF), Autoregressive Integrated Moving Average (ARIMA) and Generalized Autoregressive Conditional Heteroskedasticity (GARCH) are the quantitative techniques used to measure the factors affecting the Pakistan stock market volatility, moreover for contagion affect testing the correlation coefficient test and GARCH with exogenous model are engaged on US, UK and selected Asian countries. The analysis clearly shows that volatility trend is predictable on the basis of historical trend as variance equation of GARCH has significant positive impact. The analysis also revealed that leading stock exchange indices have strong impact on Pakistan stock market. The study support the argument for the international and national investors to hypothecate their strategies to minimize the risk. In addition of this strategy formulators may also change the results of these acquirements to inform the macro and micro stage policy making. Moreover this study is used to fill the gap between the volatility prediction and contagion factors which have significant impact on the capital market.Item Measuring Returns and Volatility Spillovers in US, UK and Selected Asian Equity Markets(UMT,Lahore, 2016-08-29) ZUNERA KHALIDTo know aboutvolatility in stock markets is very important to determine the capital cost and have rational decisions of as volatility means risk associated with investments. Significantdeviations in volatility of financial markets may have negative effects on the investment return and profits. This study examines the pattern of volatility, the behavior of return and volatility spillovers across US, UK and some other selected Asian Equity markets; India, Hong Kong, China, Indonesia, Malaysia, Korea, Sri Lanka and Pakistan for the period of January 2000 to December 2015. ARCH and Modified ARCH models were used to test the existence of calendar anomalies in terms of effect of day of the week on both variances (volatility/risk) and mean (returns) equations. Diebold and Yilmaz (2012) Spillover Index methodology based on forecast error variance decomposition based on VAR model was used to investigate spillover effects. Empirical results found that: 1) significant evidence about the existence of day of the week effects in both volatility and return equations, 2) statistically different volatility pattern across days of the week, 3) integration exists and vary across financial markets with highest correlation and integration between India and US, 4) evidence of bidirectional return spillovers between UK and Korea, and among Indonesia and US stock markets, 5) bidirectional volatility spillover among US and UK, Korea and India, UK and India, and India and Malaysia, and 6) moderate cross market volatility transmissions and shocks between the financial markets due to their interconnectedness .Item Relationship among Electricity Consumption, GDP, CPI and FDI Investment(UMT,Lahore, 2017) Ahmed FarhanThe Purpose and aim of this study is to investigate the relationship between electric power consumption, Economic Growth (GDP), Consumer Price Index (CPI) and Foreign Direct Investment (FDI) in ‘Pakistan and BRIC countries’, by applying ‘Cointegration technique’ for the period 1990-2015. Johnsen Cointegration for long- run and Vector Error Correction Model for a short-run relationship have been applied to find out the relationship of the variables mentioned above. ‘Granger Causality test’ is also applied to find any cause among variables of this study. The results observed and obtained from tests of cointegration settle that different countries depict different relationships in long-run and short-run. Although all of Pakistan, Brazil, Russia, India & China show ‘long-run relationship’ in the study. Yet, the reasons for the short-run relationship differ. For instance, in case of China; it is shown that she must practice, such policies, which increase ‘Foreign Direct Investment’ to prompt ‘Electricity consumption’. Furthermore, the findings of the study indicate that policymakers should adopt and implement policies keeping in view the country-specific ground facts and causing the behaviour of variables in this causal relationship study.Item Risk Managing Techniques in Banking Industry(UMT,Lahore, 2017-10-18) Kaleem Ullah AlviPurpose: The basic objective of this research study is to examine the risk management techniques usage in the banking industry of Pakistan to deal with various types of risks. The research study also makes a comparison among the usage of risk management practices in Islamic and Conventional banks of Pakistan. Methodology: This study has used primary sources of data. The primary data was collected through questionnaire from the senior managers, risk managers and CRO of Islamic and conventional banks. The sample size was consisting of 51 respondents from banks. The data was analyzed by using descriptive statistics, cross tabulations, t-tests, ANOVA analysis and Least Significant Difference (LSD) test. Findings: The conventional banks found to be statistically different comparative to Islamic banks in usage practices regarding stress testing results and operational risk management tools. However, the study concluded that no statistically significant difference found between the Islamic and conventional banks regarding the level of adequacy of risk management tools and systems, usage extents of market risk VaR, credit risk exposure usage, credit risk mitigation methods and credit risk portfolio analysis in Pakistan banking sector. Practical Implication/Originality: Considering the importance of risk management practices in Islamic and conventional banks; Bankers, investors, regulators, and policymakers are likely to benefit from the results of the study as a guide, when developing and reforming the existing risk management practices.Item Financial Risks in Banking Sector of Pakistan(UMT,Lahore, 2017-10-18) Hafiz Muaaz AhmadBanking industry plays a vital role in economic performance of every country. Banks used to generate its profit by taking loans from one party with the lower interest rates and lend it to the other party with the higher interest rates, the difference between these interest rates are basically the profit of banks but this process of generating income is not as smooth as it looks like. Banks has to face lots of threats which are known as financial risks. This study covers all the financial risk which includes market risk, credit risk, liquidity risk, rate of return risk, interest rate risk and equity risk for Islamic banks and conventional banking sector prevailing in Pakistan. This comparative study investigates the different determinants of all type of risks and the level of financial risks prevailing in banking industry. Furthermore, it examines which banking sector (Islamic or Conventional) is more sensitive to the underlined risks. The aim of this study is to examine that up to what extent Pakistani banks are affected by financial risks and to compare the all financial risks that what type of risks are more harmful for Islamic banks and what type of risks are more hazardous for the conventional banks. Secondary data is being used in this study and it is collected from annual reports, SBP web site and from different articles from 2002 to 2016. Total 10 banks are being undertaken in this study as a sample in which 5 banks are Islamic and 5 are conventional. Regression model is used in this research and Descriptive Analysis, Fixed and Random Effect, Hausman Test are the techniques which has been used with the help of E-views and MS Excel. The results depict that Islamic banks are more sensitive to liquidity risk and credit risk as compare to the conventional banks. In case of market risk, both sectors are facing approximately the same level of risk. Conventional banks are more sensitive to equity risk, interest rate risk and rate of return risk.Item Productivity of Medical Instruments Export(UMT,Lahore, 2017-01-30) Fazal-ur-RehmanThe primary purpose of this study is to inspect the relationship between export refinance scheme, hydel electricity production, interest rate, Dollar exchange rate, steel and gold price with the export of medical instruments. In order to ascertain the evidence of the relationship between various independent variables with the export of medical instruments, monthly data is used over the period from 2004 - 2015. The Johansen cointegration test, Vector error correction model is used under time series framework, the empirical results indicate relationship exist between export refinance scheme, hydel power, Dollar exchange rate, steel price and the export of medical instruments, while no relationship observed between gold and medical instruments export. This research study conclude that the Government of Pakistan should take initiatives to enhance the export refinance scheme, hydel electricity production in order to mitigate financial, market and operational risk in the medical instruments manufacturing and export sector of Punjab.Item Understanding Sensitivity of Investment to Internal Funds and Their Subsequent Effect Impact on Firm Performance in Pakistan(UMT,Lahore, 2017) Uzma IhteshamThis study intends to find the suitable model for financial constraint which suits Pakistani environment best. Through empirical evidence it is proved that SA Index works best in developing economy. On the basis of SA Index, 98 firms are financially constrained and 125 are unconstrained. the study includes KSE listed non financial firms. The time frame for the study is 10 years (2005-2014). The second aim of the study is to find the sensitivity of investment to internal funds and asset sales and the impact of financial constraints on it. Focusing on capital expenditure and income from asset sales, the study finds a negative relation between growth opportunities and asset sales. Income from asset sales is significant determinant of capital expenditure (investment) and firms invest more when funds are generated from internal sources. Lastly the study investigates that financially constrained firms perform poorly when income is generated from asset selling unlike unconstrained firms. Unconstrained firms have a positive and significant relation with performance and asset sales.Item The Value Added Efficiency and Corporate Governance within SAARC(UMT,Lahore, 2017) Shahzeb Ahmed WattooThe corporate scandals of 21st century have established the need for having corporate governance mechanism in place in order to be able to protect various stakeholders’ interests. Consequently, many countries have responded to these pressures by working closely with international institutions such as World Bank, IMF and Organization for Economic Co-operation and Development by adopting codes of corporate governance. To mitigate the conflicts arising from separation of control and ownership, board of directors is known to be one of the internal corporate governance controls in place while external actors of corporate governance are various types of shareholders themselves. The main objectives of the study are to explore various ownership structures and the board practices, their changing dynamics and to examine the impact these variables on the corporate performance measured as value added efficiency of corporate resources from four of the SAARC countries namely Bangladesh, India, Pakistan and Sri Lanka. This research uses data of listed companies in chemical and pharma sector for a period beginning 2010 and ending 2015. The study, based on the prior literature, uses selective ownership structures as external actors of corporate governance and selective attributes of Board of Directors to measure the internal corporate governance practices and uses Pulic’s Value Added Intellectual Coefficient (VAICTM) model to measure value added efficiency of corporate assets. The exploratory process reveals a thin improvement in corporate governance landscape over the six-year observatory period where Pakistan and India improved significantly while the corporate governance worsened in Sri Lanka. Variation of internal corporate governance practices has been also observed as certain companies within the region were found not adopting the codes of corporate governance while some entities stepped beyond the minimum requirements of the codes. Moreover, the regression results indicate that various ownership structures significantly impact corporate performance in most of the region. On the other hand, corporate performance is not significantly affected by the selective board practices as certain coefficients were found insignificant in various regions. This process was further repeated for firms of different asset sizes revealing little evidence of the impact of various corporate governance indicators on corporate performance. These findings are important to practitioners as well as policy makers as it allows them to have an insight into the corporate governance practices within firms allowing them to make investments with care, finding deficiencies within the system and making recommendations such that an optimal corporate governance system is enacted.Item Impact of CSR on financial performance(UMT,Lahore, 2017) Haq NawazThis study intends to explore the relation between the practices of Corporate Social Responsibility (CSR) and the financial performance of banks using the measure of ROA. This research helps to improve the knowledge and managerial practices. The current study uses Pakistan’s banking industry as the empirical setting. The methodology of the study is based on the creation of a 32-item scale CSR disclosure index to measure CSR and then regression results are applied on the models. The results concluded that all Banks in Pakistan view CSR practices as strategic activity and are included in the annual reports of banks. Moreover, there exist significant relationship between customer related CSR and financial performance (ROA) and insignificant association between employees related CSR, stakeholders related CSR and CSR in totality and financial performance (ROA). Future research can investigate the effect of CSR on other factors like knowledge and talent management, human capital development etc. Furthermore, other developing countries can be taken in the study for the investigation of CSR.