Journal of Accounting and Finance in Emerging Economies, 2021
The purpose of this study is to examine the comparative relationship of value-added and conventio... more The purpose of this study is to examine the comparative relationship of value-added and conventional financial performance indicators with stock returns of listed companies of Pakistan Stock Exchange. Stock Return (SR) is used as an outcome variable, whereas, for measuring explanatory variables, Traditional Financial Performance indicators includes return on assets (ROA), return on equity (ROE), Return on Capital Employed (ROCE) and Earnings Per Share (EPS) whereas modern performance indicators is measured through economic value added (EVA), economic value added movement (EVAM), economic value added spread (EVAS). The sample consists of 107 companies and having 856 observations of non-financial sector listed on Pakistan Stock Exchange (PSX) for the time period 2011 to 2018. Findings reveal that stock returns are more influenced by the value that is created by listed companies for their shareholders than the accounting profits. The study aims at providing useful information for the...
This study aims to measure the financial distress and forewarn bankruptcy in Textile Sector of Pa... more This study aims to measure the financial distress and forewarn bankruptcy in Textile Sector of Pakistan using popular statistical measures i.e., Z-Score, O-Score, Probit and D-Score. First, applicable financial ratios (profitability, liquidity, leverage, market ratios) and scores (Z-Score, O-Score, Probit and D-Score) of all 77 textile companies were calculated then estimated scores were compared with cut-off point of respective model. Based on findings, models are categorized in two groups: (a) Group-I (Z-Score and O-Score), (b) Group-II (Probit and D-Score). Results indicate that some of the textile firms are about to face financial distress in near future, which could ultimately lead those firms to bankruptcy. The findings of Group-I indicate that about 43% - 44% companies in the textile sector are in the phase of financial distress; whereas the results of Group-II reveal that about 8% - 16% companies are in financial distress phase. Thus, we could draw two conclusions: (1) the ...
The intention of this study was to investigate the causal relationship, both long-run and short-r... more The intention of this study was to investigate the causal relationship, both long-run and short-run, between KSE (Karachi StockExchange) and some macroeconomic variables in Pakistan. The monthly data of all macroeconomic variables and stock prices wastaken from January 2001 to December 2010. In this paper, the variables which have not been previously studied by the researchers inPakistan were also included. The set of macroeconomic variables used in this study as an independent variables were Exchange Rate(ER), Foreign Exchange Reserves (FER), Industrial Production Index (IPI), Interest Rate (IR), Imports (M), Money Supply (MS),Wholesale Price Index (WPI) and Exports (X). The stock price index of KSE, which is the largest stock exchange of Pakistan, was takenas a dependent variable. The statistical techniques, which were employed in this study, include the Augmented Dickey-Fuller (ADF) andKwiatkowski-Phillips-Schmidt-Shin (KPSS) unit root test, Johansen Co-integration test, Vector E...
Journal of Economics, Finance and Administrative Science
Purpose Financial literacy is a crucial element of financial decision-making, exerting significan... more Purpose Financial literacy is a crucial element of financial decision-making, exerting significant influence on the behaviour of individual investors, while making budgetary, house financing, stock investing and retirement planning decisions. So, the purpose of this research is to determine the relationship between financial literacy and behavioural biases of individual investors in Pakistan. Design/methodology/approach In this research paper, a sample of 300 observations was obtained through questionnaires from individual investors residing in Lahore and invested in Pakistan Stock Exchange. The data obtained, was passed through Cronbach’s Alpha and Exploratory Factor Analysis (EFA). The hypothesis developed for the research was tested by Pearson’s Chi-square and Ordinal Regression Analysis. Findings The hypothesis testing of the research concluded that there is a negative association between financial literacy and behavioural biases of individual investors. So, it means; with an in...
Journal of Accounting and Finance in Emerging Economies, 2021
The purpose of this study is to examine the comparative relationship of value-added and conventio... more The purpose of this study is to examine the comparative relationship of value-added and conventional financial performance indicators with stock returns of listed companies of Pakistan Stock Exchange. Stock Return (SR) is used as an outcome variable, whereas, for measuring explanatory variables, Traditional Financial Performance indicators includes return on assets (ROA), return on equity (ROE), Return on Capital Employed (ROCE) and Earnings Per Share (EPS) whereas modern performance indicators is measured through economic value added (EVA), economic value added movement (EVAM), economic value added spread (EVAS). The sample consists of 107 companies and having 856 observations of non-financial sector listed on Pakistan Stock Exchange (PSX) for the time period 2011 to 2018. Findings reveal that stock returns are more influenced by the value that is created by listed companies for their shareholders than the accounting profits. The study aims at providing useful information for the...
This study aims to measure the financial distress and forewarn bankruptcy in Textile Sector of Pa... more This study aims to measure the financial distress and forewarn bankruptcy in Textile Sector of Pakistan using popular statistical measures i.e., Z-Score, O-Score, Probit and D-Score. First, applicable financial ratios (profitability, liquidity, leverage, market ratios) and scores (Z-Score, O-Score, Probit and D-Score) of all 77 textile companies were calculated then estimated scores were compared with cut-off point of respective model. Based on findings, models are categorized in two groups: (a) Group-I (Z-Score and O-Score), (b) Group-II (Probit and D-Score). Results indicate that some of the textile firms are about to face financial distress in near future, which could ultimately lead those firms to bankruptcy. The findings of Group-I indicate that about 43% - 44% companies in the textile sector are in the phase of financial distress; whereas the results of Group-II reveal that about 8% - 16% companies are in financial distress phase. Thus, we could draw two conclusions: (1) the ...
The intention of this study was to investigate the causal relationship, both long-run and short-r... more The intention of this study was to investigate the causal relationship, both long-run and short-run, between KSE (Karachi StockExchange) and some macroeconomic variables in Pakistan. The monthly data of all macroeconomic variables and stock prices wastaken from January 2001 to December 2010. In this paper, the variables which have not been previously studied by the researchers inPakistan were also included. The set of macroeconomic variables used in this study as an independent variables were Exchange Rate(ER), Foreign Exchange Reserves (FER), Industrial Production Index (IPI), Interest Rate (IR), Imports (M), Money Supply (MS),Wholesale Price Index (WPI) and Exports (X). The stock price index of KSE, which is the largest stock exchange of Pakistan, was takenas a dependent variable. The statistical techniques, which were employed in this study, include the Augmented Dickey-Fuller (ADF) andKwiatkowski-Phillips-Schmidt-Shin (KPSS) unit root test, Johansen Co-integration test, Vector E...
Journal of Economics, Finance and Administrative Science
Purpose Financial literacy is a crucial element of financial decision-making, exerting significan... more Purpose Financial literacy is a crucial element of financial decision-making, exerting significant influence on the behaviour of individual investors, while making budgetary, house financing, stock investing and retirement planning decisions. So, the purpose of this research is to determine the relationship between financial literacy and behavioural biases of individual investors in Pakistan. Design/methodology/approach In this research paper, a sample of 300 observations was obtained through questionnaires from individual investors residing in Lahore and invested in Pakistan Stock Exchange. The data obtained, was passed through Cronbach’s Alpha and Exploratory Factor Analysis (EFA). The hypothesis developed for the research was tested by Pearson’s Chi-square and Ordinal Regression Analysis. Findings The hypothesis testing of the research concluded that there is a negative association between financial literacy and behavioural biases of individual investors. So, it means; with an in...
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