IMPACT OF QUALITY OF FINANCIAL REPORTING ON EQUITY RETURNS: A CASE OF PAKISTAN AND CHINA
Thesis Title: Impact of Quality of Financial Reporting on Equity Returns: A Case of Pakistan and China
This study examines the relationship between market premium, size premium, quality of financial reporting premium and stock returns in Pakistani, and Chinese equity market for the period of June 2011 to June 2017 by using Fama and French (1992, 1993) methodology. This is the first study in these Asian emerging markets i.e Pakistan, and China that explores the relationship among stated variables in combined form by employing a sample of 36 companies from each stock exchange i.e Pakistan Stock Exchange, and Shenzhen Stock Exchange on the basis of market capitalization. Moreover, quality of financial reporting variable is measured through Barth, Cram and Nelson (2001) method. An analysis of the results reveals that there is some difference in Pakistani and Chinese market with reference to asset pricing. Market premium has significant positive impact on equity returns in all Pakistan in most of the portfolios but in China its insignificant. Inconsistency is observed in case of size premium in case of China. But, for Pakitan, size premium has shown different results. However, quality of financial reporting premium is found significant and positive in Pakistan stock exchange and insignificant in most of the portfolios of China stock exchange. So, this quality of financial reporting based asset pricing model can facilitate investors in making stylized portfolios and also helpful in making resource allocation decisions. Therefore, it can be hypothesized that quality of financial reporting premium has also positive and significant impact on equity returns in Pakistan and China.
Keywords: Financial reporting quality, asset pricing, BCN (2001)
IMPACT OF QUALITY OF FINANCIAL REPORTING ON EQUITY RETURNS: A CASE OF PAKISTAN AND CHINA
Thesis Title: Impact of Quality of Financial Reporting on Equity Returns: A Case of Pakistan and China
This study examines the relationship between market premium, size premium, quality of financial reporting premium and stock returns in Pakistani, and Chinese equity market for the period of June 2011 to June 2017 by using Fama and French (1992, 1993) methodology. This is the first study in these Asian emerging markets i.e Pakistan, and China that explores the relationship among stated variables in combined form by employing a sample of 36 companies from each stock exchange i.e Pakistan Stock Exchange, and Shenzhen Stock Exchange on the basis of market capitalization. Moreover, quality of financial reporting variable is measured through Barth, Cram and Nelson (2001) method. An analysis of the results reveals that there is some difference in Pakistani and Chinese market with reference to asset pricing. Market premium has significant positive impact on equity returns in all Pakistan in most of the portfolios but in China its insignificant. Inconsistency is observed in case of size premium in case of China. But, for Pakitan, size premium has shown different results. However, quality of financial reporting premium is found significant and positive in Pakistan stock exchange and insignificant in most of the portfolios of China stock exchange. So, this quality of financial reporting based asset pricing model can facilitate investors in making stylized portfolios and also helpful in making resource allocation decisions. Therefore, it can be hypothesized that quality of financial reporting premium has also positive and significant impact on equity returns in Pakistan and China.
Keywords: Financial reporting quality, asset pricing, BCN (2001)
IMPACT OF INTERNAL BRANDING ON BRAND COMMITMENT AND BRAND LOYALTY: MEDIATING ROLE OF BRAND IDENTIFICATION.
Thesis Title: Impact of Internal Branding on Brand Loyalty and Brand Commitment: Mediating role of Brand Identification.
This research investigated the impact of internal branding on brand commitment and brand loyalty and mediating effect of brand identification in the relationship between internal branding and brand commitment and also mediates the relationship between internal branding and brand loyalty. Today, branding is considered as one of the vital element of marketing strategy in the organization. This study was conducted on restaurants within the city of Faisalabad, Pakistan. For this study eight brands were selected which basis on their popularity amongst the employees. 250 questionnaires were distributed to the employees in the various restaurants. As the outcome, the respondents returned back 238 questionnaire out of 250. 204 questionnaires were used in the analysis of data. Convenient sampling technique was used for data collection. Respondents were employees of restaurants. SPSS software was used for data analysis. Different statistical methods such as Frequency, Cronbach Alpha, Correlation, Regression analysis and Mediation analysis were used for data analysis. Findings revealed that internal branding have a significant impact on brand identification, brand commitment and brand loyalty. Results also suggest that there is a significant mediating effect of brand identification in the relationship of internal branding and brand commitment and also in the relationship of internal branding and brand loyalty. Moreover, this research also having some limitations as list of antecedents for brand identification and its application in industries other than apparel sector. For managerial point of view, brand managers should adopt measures for employees’ engagement with brand. Two way communications can be base of this engagement. Furthermore brand managers should work on their brand relationship and brand images.
Key Words: - Internal Branding, Brand Identification, Brand Commitment, Brand Loyalty
RISK-ADJUSTED PERFORMANCE, MARKET TIMING AND SELECTIVITY OF MUTUAL FUNDS: A COMPARATIVE ANALYSIS OF ISLAMIC AND CONVENTIONAL MUTUAL FUNDS OF PAKISTAN
ABSTRACT
Title: Risk-Adjusted Performance, Market Timing and Selectivity of Mutual Funds: A Comparative Analysis of Islamic and Conventional Mutual Funds of Pakistan
This study examines and explores, the risk adjusted performance, timing and selection abilities of conventional and Islamic funds. The study analyzed and evaluated the data of total 90 mutual funds in which 45 pertaining to the conventional funds and 40 funds represent Islamic funds. The study covers the period 2011-2016. The results of risk adjusted performance has been obtained through Sharp ratio, Treynor ratio and Jensen Alpha while the selectivity and timing abilities have been determined through TM model. The results demonstrate that majority of conventional funds in term of sharp ratio perform better than Islamic style portfolios. The results also predicted that overall the different categories of conventional funds while comparing to the Islamic style portfolios are better performing in term of Treynor ratio and Jenesen alpha. The results showed that conventional mutual funds have better selectivity skills than Islamic funds, while analyzing the different styles of these both major funds categories. The results also reported higher risk for the conventional funds than their counterparts. Majority of the conventional funds style categories have higher beta values than Islamic counterparts. The results also demonstrated that conventional funds are better in term of timing abilities as compared to the Islamic counterparts. Furthermore, the result posits that Conventional fund have the selection and timing ability than Islamic funds. One possible explanation for the underperformance of Islamic funds than Conventional funds is that Islamic funds have some constraints and impotent to invest in non-Islamic businesses. Therefore, it can be argued that conventional funds have more freedom in the selection of securities for investment and thus have the opportunity for better performance. The study is overall beneficial for the fund’s managers, investors and other stakeholders. This research will extend benefits to the investment companies and asset management companies in Pakistan to gain trust and confidence of investors for investment in their portfolios.
Keywords: Risk-Adjusted Performance, Market Timing and Selectivity of Mutual Funds: A Comparative Analysis of Islamic and Conventional Mutual Funds of Pakistan
ABSTRACT
Title: Analyzing Relationship between Financial Leverage and Firms Performance: A Comparative Study of Pakistani Cement and Indian Cement Firms
The main objective of the current research study is to investigate the impact of financial leverage on profitability of cement firms of Pakistan and India. In this regards the relevant literature has been viewed and the research objectives are determined research questions has been raised and hypothesis has been developed. The methodology of research consists of quantitative nature using deductive approach. The population includes the cement firms of Pakistan and India listed companies. The sample includes 15 cement companies from each country which were selected randomly. The data was secondary and panel which was analysed using fixed effect, random effect model but Hausman test and Breusch pagan test recommend the pooled regression model to be the appropriate model for current study thus only pooled regression results are reported. The results show that leverage has negative impact on Pakistani cement firms and positive impact on Indian firms. It is recommended based on results that Pakistani companies should reduce the amount of financial leverage while Indian firms should increase the financial leverage in order to boost their profitability.
Keywords: Financial leverage, Profitability, Pakistan cements firms, Indian cement firms.
ABSTRACT
Title: Analyzing Relationship between Financial Leverage and Firms Performance: A Comparative Study of Pakistani Cement and Indian Cement Firms
The main objective of the current research study is to investigate the impact of financial leverage on profitability of cement firms of Pakistan and India. In this regards the relevant literature has been viewed and the research objectives are determined research questions has been raised and hypothesis has been developed. The methodology of research consists of quantitative nature using deductive approach. The population includes the cement firms of Pakistan and India listed companies. The sample includes 15 cement companies from each country which were selected randomly. The data was secondary and panel which was analysed using fixed effect, random effect model but Hausman test and Breusch pagan test recommend the pooled regression model to be the appropriate model for current study thus only pooled regression results are reported. The results show that leverage has negative impact on Pakistani cement firms and positive impact on Indian firms. It is recommended based on results that Pakistani companies should reduce the amount of financial leverage while Indian firms should increase the financial leverage in order to boost their profitability.
Keywords: Financial leverage, Profitability, Pakistan cements firms, Indian cement firms.
Comparison of Success of Merger and Acquisition (M&A) in Manufacturing Sector and Services Sector in Pakistan with respect to Classification of M&As
The study has been conducted on comparison of effect of merger and acquisition (M&A) in manufacturing sector and services sector of Pakistan with respect to classification of M&As. The study is based on Tobin Q-theory of investment which says that a firm's investment rate should rise with its Q. The study is also based on the efficiency theory of merger which states that mergers only occur when it is expected to generate enough realizable synergies to make the deal beneficial to both the parties. The study is event based and merger of a company is considered as a point of event. The objective of this study is to evaluate the effect of merger & acquisition on post-merger financial performance of the company and compare its impact on classification of Merger & Acquisition and sector of the company. Literature review provides theoretical base for the previous relationship between success and type of merger. The study examines the post-merger financial performance of all mergers, took place in Pakistan during the period 1995-2018, listed on Pakistan Stock Exchange (PSX).A convenience sampling technique is used however it has been ensured that all types of merger from both the sectors are included proportionately. The study analyzed total 14 mergers (8 from manufacturing sector & 6 from service sector) listed on Pakistan Stock Exchange (PSX). Sample of the study consist 5 horizontal mergers, 3 vertical mergers, 2 conglomerate mergers and 4 congeneric mergers. The ratio analysis is used to compute the performance of merger alliance. Paired Sample t-test, is used to compare post merger performance the company with the pre-merger performance of the same company. Independent Sample t-test is used to compare the post-merger performance of manufacturing sector and services sector in Pakistan. The findings of the study showed that the horizontal mergers had insignificant positive effect on post-merger performance of merged companies in Pakistan with respect to classification of merger. The vertical mergers indicate mix effect of merger on post merger financial position of merged/acquirer. The conglomerate and congernic merger indicate insignificant negative effect of merger on financial performance of the company in Pakistan. The merger in manufacturing sector indicated slightly positive effect and better performance as compared to services sector in Pakistan. The difference of post merger performance between manufacturing sector and services sector is partially significant. The acquirer predicts the improved profitability in the industry sector, while the target predicts improved synergy only in the services sector. The findings indicate that different factors affect merger differently. The merger & acquisition has a versatile effect and the success depends upon the overall management of the company during and after the merger.
Comparison of Success of Merger and Acquisition (M&A) in Manufacturing Sector and Services Sector in Pakistan with respect to Classification of M&As
The study has been conducted on comparison of effect of merger and acquisition (M&A) in manufacturing sector and services sector of Pakistan with respect to classification of M&As. The study is based on Tobin Q-theory of investment which says that a firm's investment rate should rise with its Q. The study is also based on the efficiency theory of merger which states that mergers only occur when it is expected to generate enough realizable synergies to make the deal beneficial to both the parties. The study is event based and merger of a company is considered as a point of event. The objective of this study is to evaluate the effect of merger & acquisition on post-merger financial performance of the company and compare its impact on classification of Merger & Acquisition and sector of the company. Literature review provides theoretical base for the previous relationship between success and type of merger. The study examines the post-merger financial performance of all mergers, took place in Pakistan during the period 1995-2018, listed on Pakistan Stock Exchange (PSX).A convenience sampling technique is used however it has been ensured that all types of merger from both the sectors are included proportionately. The study analyzed total 14 mergers (8 from manufacturing sector & 6 from service sector) listed on Pakistan Stock Exchange (PSX). Sample of the study consist 5 horizontal mergers, 3 vertical mergers, 2 conglomerate mergers and 4 congeneric mergers. The ratio analysis is used to compute the performance of merger alliance. Paired Sample t-test, is used to compare post merger performance the company with the pre-merger performance of the same company. Independent Sample t-test is used to compare the post-merger performance of manufacturing sector and services sector in Pakistan. The findings of the study showed that the horizontal mergers had insignificant positive effect on post-merger performance of merged companies in Pakistan with respect to classification of merger. The vertical mergers indicate mix effect of merger on post merger financial position of merged/acquirer. The conglomerate and congernic merger indicate insignificant negative effect of merger on financial performance of the company in Pakistan. The merger in manufacturing sector indicated slightly positive effect and better performance as compared to services sector in Pakistan. The difference of post merger performance between manufacturing sector and services sector is partially significant. The acquirer predicts the improved profitability in the industry sector, while the target predicts improved synergy only in the services sector. The findings indicate that different factors affect merger differently. The merger & acquisition has a versatile effect and the success depends upon the overall management of the company during and after the merger.
Comparison of Success of Merger and Acquisition (M&A) in Manufacturing Sector and Services Sector in Pakistan with respect to Classification of M&As
The study has been conducted on comparison of effect of merger and acquisition (M&A) in manufacturing sector and services sector of Pakistan with respect to classification of M&As. The study is based on Tobin Q-theory of investment which says that a firm's investment rate should rise with its Q. The study is also based on the efficiency theory of merger which states that mergers only occur when it is expected to generate enough realizable synergies to make the deal beneficial to both the parties. The study is event based and merger of a company is considered as a point of event. The objective of this study is to evaluate the effect of merger & acquisition on post-merger financial performance of the company and compare its impact on classification of Merger & Acquisition and sector of the company. Literature review provides theoretical base for the previous relationship between success and type of merger. The study examines the post-merger financial performance of all mergers, took place in Pakistan during the period 1995-2018, listed on Pakistan Stock Exchange (PSX).A convenience sampling technique is used however it has been ensured that all types of merger from both the sectors are included proportionately. The study analyzed total 14 mergers (8 from manufacturing sector & 6 from service sector) listed on Pakistan Stock Exchange (PSX). Sample of the study consist 5 horizontal mergers, 3 vertical mergers, 2 conglomerate mergers and 4 congeneric mergers. The ratio analysis is used to compute the performance of merger alliance. Paired Sample t-test, is used to compare post merger performance the company with the pre-merger performance of the same company. Independent Sample t-test is used to compare the post-merger performance of manufacturing sector and services sector in Pakistan. The findings of the study showed that the horizontal mergers had insignificant positive effect on post-merger performance of merged companies in Pakistan with respect to classification of merger. The vertical mergers indicate mix effect of merger on post merger financial position of merged/acquirer. The conglomerate and congernic merger indicate insignificant negative effect of merger on financial performance of the company in Pakistan. The merger in manufacturing sector indicated slightly positive effect and better performance as compared to services sector in Pakistan. The difference of post merger performance between manufacturing sector and services sector is partially significant. The acquirer predicts the improved profitability in the industry sector, while the target predicts improved synergy only in the services sector. The findings indicate that different factors affect merger differently. The merger & acquisition has a versatile effect and the success depends upon the overall management of the company during and after the merger.
Comparison of Success of Merger and Acquisition (M&A) in Manufacturing Sector and Services Sector in Pakistan with respect to Classification of M&As
The study has been conducted on comparison of effect of merger and acquisition (M&A) in manufacturing sector and services sector of Pakistan with respect to classification of M&As. The study is based on Tobin Q-theory of investment which says that a firm's investment rate should rise with its Q. The study is also based on the efficiency theory of merger which states that mergers only occur when it is expected to generate enough realizable synergies to make the deal beneficial to both the parties. The study is event based and merger of a company is considered as a point of event. The objective of this study is to evaluate the effect of merger & acquisition on post-merger financial performance of the company and compare its impact on classification of Merger & Acquisition and sector of the company. Literature review provides theoretical base for the previous relationship between success and type of merger. The study examines the post-merger financial performance of all mergers, took place in Pakistan during the period 1995-2018, listed on Pakistan Stock Exchange (PSX).A convenience sampling technique is used however it has been ensured that all types of merger from both the sectors are included proportionately. The study analyzed total 14 mergers (8 from manufacturing sector & 6 from service sector) listed on Pakistan Stock Exchange (PSX). Sample of the study consist 5 horizontal mergers, 3 vertical mergers, 2 conglomerate mergers and 4 congeneric mergers. The ratio analysis is used to compute the performance of merger alliance. Paired Sample t-test, is used to compare post merger performance the company with the pre-merger performance of the same company. Independent Sample t-test is used to compare the post-merger performance of manufacturing sector and services sector in Pakistan. The findings of the study showed that the horizontal mergers had insignificant positive effect on post-merger performance of merged companies in Pakistan with respect to classification of merger. The vertical mergers indicate mix effect of merger on post merger financial position of merged/acquirer. The conglomerate and congernic merger indicate insignificant negative effect of merger on financial performance of the company in Pakistan. The merger in manufacturing sector indicated slightly positive effect and better performance as compared to services sector in Pakistan. The difference of post merger performance between manufacturing sector and services sector is partially significant. The acquirer predicts the improved profitability in the industry sector, while the target predicts improved synergy only in the services sector. The findings indicate that different factors affect merger differently. The merger & acquisition has a versatile effect and the success depends upon the overall management of the company during and after the merger.
Comparison of Success of Merger and Acquisition (M&A) in Manufacturing Sector and Services Sector in Pakistan with respect to Classification of M&As
The study has been conducted on comparison of effect of merger and acquisition (M&A) in manufacturing sector and services sector of Pakistan with respect to classification of M&As. The study is based on Tobin Q-theory of investment which says that a firm's investment rate should rise with its Q. The study is also based on the efficiency theory of merger which states that mergers only occur when it is expected to generate enough realizable synergies to make the deal beneficial to both the parties. The study is event based and merger of a company is considered as a point of event. The objective of this study is to evaluate the effect of merger & acquisition on post-merger financial performance of the company and compare its impact on classification of Merger & Acquisition and sector of the company. Literature review provides theoretical base for the previous relationship between success and type of merger. The study examines the post-merger financial performance of all mergers, took place in Pakistan during the period 1995-2018, listed on Pakistan Stock Exchange (PSX).A convenience sampling technique is used however it has been ensured that all types of merger from both the sectors are included proportionately. The study analyzed total 14 mergers (8 from manufacturing sector & 6 from service sector) listed on Pakistan Stock Exchange (PSX). Sample of the study consist 5 horizontal mergers, 3 vertical mergers, 2 conglomerate mergers and 4 congeneric mergers. The ratio analysis is used to compute the performance of merger alliance. Paired Sample t-test, is used to compare post merger performance the company with the pre-merger performance of the same company. Independent Sample t-test is used to compare the post-merger performance of manufacturing sector and services sector in Pakistan. The findings of the study showed that the horizontal mergers had insignificant positive effect on post-merger performance of merged companies in Pakistan with respect to classification of merger. The vertical mergers indicate mix effect of merger on post merger financial position of merged/acquirer. The conglomerate and congernic merger indicate insignificant negative effect of merger on financial performance of the company in Pakistan. The merger in manufacturing sector indicated slightly positive effect and better performance as compared to services sector in Pakistan. The difference of post merger performance between manufacturing sector and services sector is partially significant. The acquirer predicts the improved profitability in the industry sector, while the target predicts improved synergy only in the services sector. The findings indicate that different factors affect merger differently. The merger & acquisition has a versatile effect and the success depends upon the overall management of the company during and after the merger.
IMPACT OF EMPLOYEE ROLE OVERLOAD ON CUSTOMER SATISFACTION;THE MEDIATING ROLE OF INTERACTION QUALITY.THE MODERATING ROLE OF EMPLOYEE WORK RELATED SELF EFFICACY
In recent years, there is a significant increase in investment witnessed banking service sector in Pakistani economy. The banking services sector accounts for a quarter of the total global trade. One third of the total workforce is employed in banking service sector across the globe. According to the economic statistics, service sector contributing 58% in national GDP, this shows its importance for economic development of Pakistan. While considering this importance of service sector literature shows the negative consequences up surging day by day, this study has intents to checker the precursors of workload which marks negative consequences. Data was together from total of the 204 respondents from the banking sector employees frequently through a convenience-based non-probability sampling technique. In order to discovery the efficiency of this association the investigator used correlation and Regression analysis technique by using SPSS. A result shows significant association among the study variables. Further this study discloses the managerial implication as well the future research directions of research for practitioners and the academicians.
Determinants of Capital Investment Criteria with Moderating Effect of Firm’s Age: Evidence from Companies listed on Pakistan Stock Exchange
The matter of capital investment decision making has always been a key issue for the corporate and project managers. The criteria with which capital projects are evaluated, have always been the focal point for the corporate managers who are involved in the capital investment decision making to decide about the feasibility of capital projects. This study aims to review and investigate the managerial perceptions regarding their preferences for the application of capital investment selection criteria. This study is also aimed to study the relationship between conspicuous determinants involved in capital investment decision making process and capital investment selection criteria. This study also intends to conduct moderation analysis to check the extent of relationship between predictors (determinants) and capital investment selection criteria. This study is targeted to collect data from 1000 corporate managers of 250 sample companies listed on Pakistan Stock Exchange (PSX) through the questionnaires. The first model, RMM depicts the acceptance of seven alternative hypotheses out of ten with respect to the Multi-variant analysis, suggesting the favorable impact of seven determinates on Risk Management Methods (RMM). In essence, moderation results of this model are significant because firm age as a moderator, strongly moderates the relationship between all determinants and RMM. In the same way, second model CAM, indicates the significant effect of seven determinates on CAM (Conventional Appraisal Methods). The moderation results in CAM model due to firm age are favorable. In the third model SAM (Strategic Appraisal Methods), six alternative hypotheses are accepted. In case of moderation, again firm age has good moderation. By and large, it has been concluded, that all the results and findings of this capital investment decision making study are in agreement with the results and findings of previous studies in terms of impact of selected determinates on the capital investment decision making criteria and the effect of respective moderators on the relationship between them. The delimitations can be captured to broaden the scope and horizon of this study. To conclude, this study proceeds from general theoretical justification of past researchers to the specific direction by doing the practical and applied research and analyzing the collected data in order to meet objectives of the study after testing the stated hypotheses of all the three models.