Talat Afza

The Government Sadiq College Women University

The present study contributes to existing literature by empirically testing the moderated mediating role of firm's risk on the relationship between derivative usage and firm value by gathering sample data of Pakistani and Malaysian non-financial firms. By using Bootstrap technique of Hayes (2015), study finds that the use of derivative has both dir...

Purpose The purpose of this paper is to explore the moderating role of competitive intensity between the existing relationship of capital structure and firm performance. Design/methodology/approach Using the balanced panel data of listed non-financial firms of Pakistan, the present study adopts both the panel and OLS estimation techniques to draw...

The relationship between corporate governance and managerial choices for value creation is a topic of continuing interest for researchers. One of most significant managerial decisions that affect value is Discretionary Earnings Management (DEM) which is the judgmental adjustments in firm's reported accounting earnings by managers to upsurge firm va...

The researchers in corporate finance have long recognized the widespread separation of ownership and control in firms that has created the potential agency problem which may be costly for the firms. The mangers have substantial freedom to pursue their personal benefits at the expense of shareholders' wealth due to limited incentive of shareholder t...

This article explores the relationship between financial development and imports focusing on economic growth and import prices as potential contributors to this relationship. We have applied combined cointegration and causality tests using multivariate model for long-run and augmented Dickey–Fuller (ADF) as well as Phillips–Perron (PP) unit root to...

Purpose of the study is to examine the efficiency of the commercial banks in Pakistan over the period of 2005 to 2010. This study has used two-step process for this analysis. Firstly, the study applied Stochastic Frontier Approach (SFA) to examine the overall efficiency trend of commercial banks. The study has followed the value added approach for...

This study empirically examines the effect of derivative usage on firm’s risk and value by employing sample data of Pakistani and Malaysian listed companies for the period of 2004- -2010. Supporting the risk management use of derivative instruments, the study finds that the usage of derivative instruments significantly minimizes firm’s risk, with r...

This article investigates the validation of Harberger–Laursen–Metzler hypothesis using Pakistani data over the period of 1978Q1–2012Q4. We have used Gregory–Hansen cointegration approach accommodating structural break in the series. The results confirm the presence of cointegration between the variables. The impact of terms of trade is positive on...

Purpose – The purpose of this paper is to examine the debt structure of group affiliated firms in Pakistan for the period of 2009-2011. The study seeks to know the level of debt specialization in group affiliated firms. If they do; then how are they different from stand-alone firms? Design/methodology/approach – The study primarily uses Herfindahl-...

The present study investigates the impact of institutional ownership and growth opportunities on dividend policy based on the sample of 120 Listed Companies of Karachi Stock Exchange (KSE), Pakistan, during 2002 to 2007. The estimated results, using OLS and Tobit regression models, suggest that dividend payouts are positively affected by growth opp...

Globalization and financial breakdown of many corporate conglomerates in the developed world engrossed the attention of researchers and policy makers towards the need and importance of an effective corporate governance system for resolving the agency conflict between the stakeholders and managers, and hence a firms’ success. Among corporate governa...

This article explores the macroeconomic determinants of stock market development in an emerging market (Pakistan) over the period of 1974–2010. We have applied Zivot–Andrews unit root test for integrating properties of the variables and the autoregressive distributed lag bounds testing for cointegration. The direction of causality between the varia...

Politics in organizations is an important aspect of organizational life which has been an interesting research area since last four decades. However, it is still deprived of practical approach due to its inconclusive studies and fragmented arguments. In politicized organizations, morale and motivation of employees depend mostly on their type of exc...

Cash dividend is among the most important sources of cash flow for the shareholders through which they gauge firm’s performance. Corporate managers also use dividends to signal company’s financial strength to attract potential investors. Empirical findings on determinants of dividend policy provide mixed and inconclusive results which has made the...

Earnings management (EM) is an activity by which managers manipulate the reported earnings. In this article, the impact of debt and diversification has been investigated on opportunistic earnings management in diversified firms of Pakistan. Data is collected from 72 non-financial manufacturing firms for the period 2006 to 2011. Three categories of...

The inflows of foreign direct investment are extremely crucial for economic growth of developing countries. The purpose of this study is to determine the relationship of governance indicators including voice and accountability, political stability and absence of violence / terror, government effectiveness, regulatory quality, control of corruption...

The present study intends to explore the influence of audit committee characteristics on a firm's financial performance. The corporate governance mechanisms are highly recognized in era of global financial crisis and current economic recession. Audit committee is one of the core mechanisms that ensure good corporate governance in the firms. Yet, ve...

This paper is aimed at investigating non-linear relationship between foreign direct investment and environmental degradation using panel data of 110 developed and developing economies. The results indicated that environmental Kuznets curve exists and foreign direct investment increases environmental degradation.

Perceptions of Organizational politics are very important aspect of Organizational life with respect to its members as these influence various processes which ultimately affect performance of employees. Previous studies have investigated impact of political perceptions either on extra role performance of employees (exhibited through organizational...

This study explore the relationship between performance of intellectual capital and profitability measures in non-financial companies listed on KSE for a period of 3 years (2009-2011). And it also conduct a comparative analysis of this relationship between textile industry and chemical industry of Pakistan. Textile industry belongs to old economy a...

Present study investigated the impact of free cash flow on corporate dividend policy in four emerging economies of South Asia i.e. Bangladesh, India, Pakistan and Sri Lanka. The data of 250 listed companies collected form published annual reports from 2006-10. Based on the estimated results it was evident that liquidity plays major role in distribu...

Present study investigated the impact of free cash flow on corporate dividend policy in four emerging economies of South Asia i.e. Bangladesh, India, Pakistan and Sri Lanka. The data of 250 listed companies collected form published annual reports from 2006-10. Based on the estimated results it was evident that liquidity plays major role in distribu...

In this paper an attempt has been made to empirically analyze the impact of macroeconomic variable such as CPI, M2, KIBOR and KSE 100 (Karachi Stock Exchange) index on NAV (Net Assets Value) of equity based mutual funds. Co-integration and causality analyses have been applied to determine long and short run relationships. According to the findings,...

JEL classification: F3 F43 P28 Q5 C23 F01 Keywords: Foreign direct investment Economic growth Environment Under a multivariate framework, this paper aims to investigate the nonlinear correlation between foreign direct investment and environmental degradation for high-, middle-, and low-income countries with economic growth and energy consumption as...

The inflows of foreign direct investment are extremely crucial for economic growth of developing countries. The purpose of this study is to determine the relationship of governance indicators including voice and accountability, political stability and absence of violence / terror, government effectiveness, regulatory quality, control of corruption...

The inflows of Foreign Direct Investment (FDI) has been verified as a crucial investment source in developing nations because it assists to decrease unemployment, bridging gap in savings and investment, transferring updated technology and eventually enhancing host countries' level of economic growth. The objective of this study is to empirically in...

The study has applied non-parametric Data Envelopment Analysis (DEA) to estimate the cost efficiency of 100 mutual funds operating in Pakistan over the period of 2005 to 2010. The value added approach is followed for the selection of input and output variables. The current study has used investments and returns as output variables whereas; manageme...

The study has estimated the profit efficiency, technical efficiency and cost efficiency of modaraba and leasing companies in Pakistan over the period of 2005 to 2010 with the help of parametric Stochastic Frontier Approach (SFA). The input and output variables were selected by following the value added approach. The results revealed that leasing co...

Besides being an honest, knowledgeable, humble, and respected man, Dr. Naveed A. Malik is the Founder-Rector of the Virtual University of Pakistan. In his position as the Rector, Dr. Malik is the Chief Executive and Academic Officer of the University and his responsibility is to ensure that the provisions of the Virtual University Ordinance, the St...

This study revisits the relationship between defence spending and economic growth using Keynesian model in Pakistan by applying ARDL bounds testing approach to cointegration for long run and error correction method for short span of time. Empirical evidence suggests a stable cointegration relationship between defence spending and economic growth. A...

Recent global financial crunch 2007 increases the presence of equity risk exposure all over the world, especially in Asian countries, which increases the incentive of using equity derivative for managing risk. Existing literature provides enough evidence regarding the firm specific determinants of financial derivatives in both advanced and Asian co...

As Under-pricing negatively influences firm value due to lower than expected IPO proceeds, corporations therefore, try to minimize the negative effect of underpricing on firm value before going public. Existing literature examined the function of corporate governance as a signalling device in reducing the level of underpricing in both developed and...

Foreign Direct Investment (FDI) was proven to be a significant source of investment for developing countries which helps to bridge saving-investment gap, creation of employment opportunities, transfer of technology, and ultimately increasing economic growth of the host countries. This study empirically investigated the determinants of FDI for Paki...

The study analyzes the impact of mergers in mutual fund industry of Pakistan in terms of cost and profit efficiency by using parametric technique of Stochastic Frontier Analysis for all the merger transactions completed during 2001-2006.The input and output variables are defined and determined by assuming intermediation approach. Translog cost func...

During last fifty years, financial researchers seem unable to reach a consensus on determinants of dividend policy (Al-Malkawi, 2007). The scope of majority of recent studies was limited to a single country, whereas, a little attention was given to cross country comparison of factors affecting dividend policy especially in emerging economies. The p...

The present study investigates the relationship between energy (renewable and nonrenewable) consumption and economic growth using Cobb–Douglas production function in case of Pakistan over the period of 1972–2011. We have used the ARDL bounds testing and Gregory and Hansen (1990) structural break cointegration approaches for long run while stationar...

Price-to-Earnings (P/E) ratio, a relative valuation technique has always remained at the centre of attention of market analysts and investors ever since the origin of discounted dividend growth model of Gordon and Shapiro (1956). The present study attempts to identify the factors explaining variations in P/E ratio for chemical sector of Pakistan by...

Pakistan is an emerging economy and a modernizing workplace. This research surveyed 318 citizens, managers, and employees in Lahore and Islamabad to measure their Personal Business Ethics Scores (PBES) based on age and gender, as well as to see if face-to-face and online data collection processes make a difference in their level of ethical maturity...

Pakistan is an emerging economy and a modernizing workplace. This research surveyed 318 citizens, managers, and employees in Lahore and Islamabad to measure their Personal Business Ethics Scores (PBES) based on age and gender, as well as to see if face-to-face and online data collection processes make a difference in their level of ethical maturity...

The study has investigated the determinants of performance in the general insurers of Pakistan over the period 2004 to 2009. Performance of the general insurers is measured as Return on Assets (ROA) and Return on Equity (ROE) whereas; size, investments, leverage, claims, past year performance and age are chosen as explanatory variables. The results...

The present study investigates the relationship between corporate governance profile of acquiring firms and operating performance changes associated with merger and acquisitions in Pakistan. The financial sector mergers and acquisitions have been selected as sample transactions for the period of 1996 to 2008 and two years pre- and post-merger analy...

This study examined the determinants of efficiency in the insurance companies of Pakistan over the period 2003 to 2007. Data envelopment analysis (DEA) was applied to estimate the efficiency scores of the insurance companies and then the study used regression analysis to analyze the relationship of line of business, size, profitability, investment,...

By applying the Stochastic Frontier Analysis (SFA), the study explored the cost and profit efficiency impact of mergers in banking sector of Pakistan during 1998-2006. The intermediation approach is used for definition and determination of input and output variables. It is assumed that cost function followed translog functional form and alternative...

Purpose The purpose of this paper is to identify the factors affecting firms' decision to use foreign exchange (FX) derivative instruments by using the data of 86 non‐financial firms listed on Karachi Stock Exchange for the period 2004‐2007. Design/methodology/approach Required data were collected from annual reports of listed firms of Karachi Sto...

The present study investigates the impact of institutional ownership and growth opportunities on dividend policy based on the sample of 120 Listed Companies of Karachi Stock Exchange (KSE), Pakistan, during 2002 to 2007. The estimated results, using OLS and Tobit regression models, suggest that dividend payouts are positively affected by growth opp...

The adaptation of free market policies in the world economy has increased the employment of risk management practices in corporation's financial decisions in order to reduce the variability in firm's future cash flows, due to the highly volatile exchange rates and interest rates. It is generally argued that, extensive usage of derivative instrument...

Derivatives are mostly used by corporations to hedge their foreign exchange or interest rate risk, especially in Asian countries due to their highly volatile political and economic situation. Current study aimed to determine the factors affecting firms hedging policies of both foreign currency and interest rate derivative instruments of 105 non-fin...

Current study provides the empirical evidence on firm level determinants of capital structure of insurance sector of Pakistan over seven years from 2001 to 2007. Debt ratio is used as dependent variable while profitability, size, tangibility, risk, liquidity are employed as explanatory variables. The results indicate that size, profitability, tangi...

The present study investigates the impact of institutional ownership and growth opportunities on dividend policy based on the sample of 120 Listed Companies of Karachi Stock Exchange (KSE), Pakistan, during 2002 to 2007. The estimated results, using OLS and Tobit regression models, suggest that dividend payouts are positively affected by growth opp...

Dividend policy is among the most important unresolved issues in modern corporate finance. Several researches have tried to solve the dividend puzzle yet, the results are inconclusive as to what determines the optimal dividend policy. Present study has analyzed the impact of firm’s age on its dividend policy. Using the financial data of 120 compani...

The corporate finance literature has traditionally focused on the study of long-term financial decisions. Researchers have particularly examined investments, capital structure, dividends or company valuation decisions, among other topics. However, short-term assets and liabilities are important components of total assets and needs to be carefully a...

Workplace stress can impact personal stress and these are of concern for all adults in every economy. This practical paper compares the perceptions of 231 working adults in Pakistan with 288 Americans. While a moderate level of stress was found among these respondents and in the U.S., higher stress levels were discovered among Pakistanis. While old...

Dividend policy is among the most important unresolved issues in modern corporate finance. Several researches have tried to solve the dividend puzzle yet, the results are inconclusive as to what determines the optimal dividend policy. Present study has analyzed the impact of firm’s age on its dividend policy. Using the financial data of 120 compani...

The management styles of people are influenced by their cultural contexts and urgency of completing tasks. For example, it is expected that people will get things done in a speedy manner when their jobs are on the line, but they will still try to minimize the negative impact to their relationships. To explore the leadership tendencies of working ad...

The present study examines the industry specific attributes of firms in Automobile, Engineering, and Cable and Electrical Goods Sectors affecting the determinants of capital structure and validates the results with Booth et. al. (2001) and Rajan and Zingales (1995) .The study uses pooled data regression model on the sample of 22 Automobile, 7 Cable...

The study applied non-parametric Data Envelopment Analysis (DEA) to estimate the efficiency of insurance companies in Pakistan over the period 2003 to 2007. Value added approach is followed to determine the output variables and selected gross premiums and investment incomes as outputs whereas, labor, business services, equity capital and debt capit...

Working capital management plays a significant role in better performance of manufacturing firms. This paper analyzes the impact of working capital management on firm’s performance in Pakistan for the period 1998 to 2007. For this purpose, balanced panel data of 204 manufacturing firms is used which are listed on Karachi Stock Exchange. The results...

Dividend Policy is among the widely addressed topics in modern financial literature. The inconclusiveness of the theories on importance of dividend in determining firm’s value has made it one of the most debatable topics for the researchers (see for example, Ramcharan, 2001; Frankfurter et. al 2002; Al-Malkawi, 2007). The present study investigates...

The study intends to determine the enterprising behavior of enterprise-less rural women entrepreneurs dwelling in remote areas of Pakistan for the purpose of assessing the enterprising behavior possessed by these women entrepreneurs, their capacity as women to handle the marketing of their businesses and finally the factors that influence their dec...

The study applied non-parametric Data Envelopment Analysis (DEA) to estimate the technical efficiency of non-life insurance companies in Pakistan over the period of 2003 to 2007. The technical efficiency was further decomposed into pure technical efficiency and scale efficiency to ascertain the sources of technical efficiency in the non-life insure...

Pakistan is the 15th largest producer of sugar in the world, 5th largest in terms of area under sugar cultivation and 60th in yield. The sugar industry is the 2nd largest agro based industry which comprises of 81 sugar mills. With this scenario, Pakistan has to import sugar which exposes it to the effects of shortage and rising prices in the world....

Purpose – The purpose of this exploratory paper is to explore and categorize the impediments which surround the remote women entrepreneurs and limit their growth opportunities to be successful entrepreneurs in Pakistan. Design/methodology/approach – The paper is based on the primary data collected through interviews and focus group discussions with...

The present study investigates the traditional relationship between working capital management policies and a firm’s profitability. Using the panel data set for the period 1998-2005, the impact of aggressive working capital investment and financing policies has been evaluated using return on assets as well as Tobin’s q. Managers can create value if...

Extensive research has evaluated mutual fund performance in different financial markets which led to mixed results (Soderlind et al., 2000; Korkeamaki and Smythe, 2004), however, limited work has been done to evaluate Pakistani mutual funds. The purpose of this study is to provide guidelines to the managers of open-ended Pakistani mutual funds and...

Literature on corporate finance has traditionally focused on the study of long-term financial decisions. Researchers have examined, in particular, the investment decisions, capital structure, dividends or company valuation decisions, among other topics. However, short-term assets and liabilities are important components of total assets and need to...

The issue of economic prosperity is often linked to the massive inflows of Foreign Direct Investment (FDI) into an economy and the impact of the FDI on economic growth has been argued considerably in the development and economic growth literature for many years. Although, living between the Greenfield giants for FDI (China & India),Pakistan has rec...

Due to the separation of ownership and control in modern corporation, the form of relationship between firm performance and insider ownership has been the subject of empirical investigation for last many decades. It is argued, that as managers' equity ownership increases, their interests coincide more closely with those of outside shareholders, and...