Impact of Financial Crisis 2008 on Financial Institutions

Insurance sector is mainly affected by financial crisis due to failure of other sectors such as banks where insurance companies has put their guarantee on different securities and its investments in other sectors faced huge losses. AIG suffered from a liquidity crisis when its credit ratings were downgraded below "AA" levels in September 2008. AIG affected due collateral demand of $100 billion by counter parties on forward contract and currency swapping. The company’s liquidity position become too weak to get support from Government in form of bailout package to pay out its debt obligation and meet the collateral demands by counter party. In 2008 leverage position of company reach its high that was due increased debt (borrowing from Government) and losses from operations and investments depleted the equity amount. Same case with the Lincoln national corporation and Hart Ford financial services in 2008 the due losses from operations and other investments the equity amount decrease too much, so too get bailout package from US Government. These both companies have retuned back the bailout amount to treasury department but AIG has still$50 billion outstanding. In 2010-11 the performance of companies is good to some extent and debt to equity ratio of above all companies is decreased and unrealized losses are now recovered. Keywords: Financial Crisis, Debt-to-Equity, Federal Reserve Bank, Insurance Sector

Impact of Financial Crisis 2008 on Financial Institutions

Insurance sector is mainly affected by financial crisis due to failure of other sectors such as banks where insurance companies has put their guarantee on different securities and its investments in other sectors faced huge losses. AIG suffered from a liquidity crisis when its credit ratings were downgraded below "AA" levels in September 2008. AIG affected due collateral demand of $100 billion by counter parties on forward contract and currency swapping. The company’s liquidity position become too weak to get support from Government in form of bailout package to pay out its debt obligation and meet the collateral demands by counter party. In 2008 leverage position of company reach its high that was due increased debt (borrowing from Government) and losses from operations and investments depleted the equity amount. Same case with the Lincoln national corporation and Hart Ford financial services in 2008 the due losses from operations and other investments the equity amount decrease too much, so too get bailout package from US Government. These both companies have retuned back the bailout amount to treasury department but AIG has still$50 billion outstanding. In 2010-11 the performance of companies is good to some extent and debt to equity ratio of above all companies is decreased and unrealized losses are now recovered. Keywords: Financial Crisis, Debt-to-Equity, Federal Reserve Bank, Insurance Sector

Comparison of Workforce Diversity in Public and Private Business Organizations

Potential of human resource has always been considered as at the heart of a business organization. An effective human resource can not only ignite the organizational excellence but it also is a cornerstone for the consistency of optimal level of business performance. This research paper aims at one of the most discussed areas in the literature related to human resource management called “Workforce diversity”. Right from the start of modern business practices public and private business organizations came into existence and so the difference in human resource focus of both of these types of business organizations. Focus of this study is to explore the difference among employees of both types of above mentioned business organizations keeping in view the level of workforce diversity in their respective organizations. Study is unique because it addresses the research gap found after extensive literature review. The said research gap is that no such study has been done before in literature keeping in view Pakistani business environment. Target population comprising of banking sector, health and medical services sector was studied and brought under light by taking a sample of 150 employees. In order to analyze the acquired data statistical tools like independent t test and frequency test were also applied for better results and findings. Findings of the study states that there exists huge difference among employees working in public and private sector organizations due to conception and application of workforce diversity in both of these business organization types. It was also found that middle and operational levels of workforce are more diverse in comparison with top levels of workforce. Workforce diversity is properly planned in most of the private organizations while public sector organizations are still lagging behind. Due to significantly highlighted importance of organizational performance in public sector organizations; public sector is now improving application of workforce diversity in its practices. Keywords: Workforce Diversity, Public & Private Sector, Culture, Organizational Performance

Consumer Purchase Intension of Foreign Brands Available in Pakistan: A Moderating Effect of Television Advertisement

Purpose – This paper examines the purchase intensions of consumers who are using foreign electronics brands in their homes, Offices & Industries. Design/methodology/approach – This paper presents a quantitative approach based upon “survey” technique. For the detailed analysis of our gathered data we used SPSS. Findings– Consumer purchase intention is influenced by perceived fashion ability, trust on brand and advertisement. Research Limitations –Targeting all Pakistani population for obtaining information was impossible for us; so we used “Convenience Sampling”. We targeted population of Rawalpindi & Islamabad in order to conduct our research. Practical Implications– According to our point of view this research will help the foreign companies in order to find out the effects of TV Ads on the purchase intentions of the prospective customers of their brands. Originality/Value –The paper carefully identifies the relationship among country of origin, customer loyalty & customer life time value with moderating effect of television advertisement. Keywords –Purchase Intension, Foreign Brands, TV Advertisement, Country of Origin, Customer Loyalty, Customer Life Time Valu

Impact of Global Financial Crisis 2008 on Automobile Industry

Global financial crisis has formed bad impact on automobile industry in USA, like Suziki, Hyundai and Honda from 2008-2010. The companies’ sale decreased because of market situation and slum in world economy. Now economic conditions are getting better by having good financial policies and market exposure. This research study will explain the importance of debt to equity ratio in term of risk exposure being taken by the firm in market to finance the business and also analyze the importance and effectiveness of debt to equity for automobile sector. This study is based upon the three major players of industry to signify the risk exposure in term of debt and equity during a period of financial crisis and then how they manage it while looking at international financial regulations accordingly. Suzuki overcame this situation by keeping focus on R & D, marketing and manufacturing units. It has also changed its exposure of debt to equity, in the meantime of financial crisis it is having more financing through common stock. Hyundai overcame this situation by focusing on stakeholders like customers and employees. And due to this strategy the crisis has created the low effects on the Hyundai profitability and sales.  The Honda after the recession they began to again paying keen attention on its performance and increased its sales by introducing the innovation in its different models by launching the hybrid fuel efficient models. And it also keeps on focusing common stock rather than lending from risky source. It also explained the role of Federal Reserve Bank to control financial crisis all over the world. In the end this paper will compare the market exposure of debt and equity of three companies and suggest some recommendations to be more secure in future if same crisis revert again. Keywords: Financial Crisis, Automobile Sector, Debt-to-Equity Ratio, Federal Reserve Bank. Paper Type: Research Pape

Impact of Global Financial Crisis 2008 on Automobile Industry

Global financial crisis has formedbad impact on automobile industry in USA, like Suziki, Hyundai and Honda from 2008-2010. The companies’ sale decreased because of marketsituation and slum in world economy. Now economic conditions are getting better by having good financialpolicies andmarket exposure. This research study will explain the importance of debt to equity ratio in term of risk exposure being taken by the firm in market to finance the business and also analyze the importance and effectiveness of debt to equity for automobile sector. This study is based upon the three major players of industry to signify the risk exposure in term of debt and equity during a period of financial crisis and then how they manage it while looking at international financial regulations accordingly. Suzuki overcame this situation by keeping focusonR & D, marketing and manufacturing units. It has also changed its exposure of debt to equity, in the meantimeof financial crisisit is having more financing through common stock. Hyundai overcame this situation by focusing on stakeholders like customers and employees. And due to this strategy the crisis has created the low effects on the Hyundai profitability and sales.  The Honda after the recession they began to again paying keen attention on its performance and increased its sales by introducing the innovation in its different models by launching the hybrid fuel efficient models. And it also keeps on focusing common stock rather than lending from risky source. It also explained the role of Federal Reserve Bank to control financial crisis all over the world. In the end this paper will compare the market exposure of debt and equity of three companies and suggest some recommendations to be more secure in future if same crisis revert again. Keywords: Financial Crisis, Automobile Sector, Debt-to-Equity Ratio, Federal Reserve Bank

Consumer Purchase Intension of Foreign Brands Available in Pakistan: A Moderating Effect of Television Advertisement

Purpose – This paper examines the purchase intensions of consumers who are using foreign electronics brands in their homes, Offices & Industries. Design/methodology/approach – This paper presents a quantitative approach based upon “survey” technique. For the detailed analysis of our gathered data we used SPSS. Findings– Consumer purchase intention is influenced by perceived fashion ability, trust on brand and advertisement. Research Limitations –Targeting all Pakistani population for obtaining information was impossible for us; so we used “Convenience Sampling”. We targeted population of Rawalpindi & Islamabad in order to conduct our research. Practical Implications– According to our point of view this research will help the foreign companies in order to find out the effects of TV Ads on the purchase intentions of the prospective customers of their brands. Originality/Value –The paper carefully identifies the relationship among country of origin, customer loyalty & customer life time value with moderating effect of television advertisement. Keywords –Purchase Intension, Foreign Brands, TV Advertisement, Country of Origin, Customer Loyalty, Customer Life Time Valu

Effect of Human Resource Planning on Organizational Performance of Telecom Sector

Human resource planning is one of the growing areas of academic research. Organizations regard its human resource as their core competency because it would lead towards better organizational performance. This research focuses on effect of human resource planning on the organizational performance. Objective of this research is to determine key determinants of formal human resource planning that contributes towards performance in the telecom sector. The data collected from top managers, middle level managers and the first line HR managers of 50 offices including head offices and regional offices of 160 questionnaires including some interview and open ended questions based on the measures of performance and Human Resource Planning. The results from the factor analysis on HRP measures selection, training, and incentives and the organizational performance measures which are job satisfaction, efficiency, employee motivation and technology constitutes significant and a positive relationship with other. As modern HR practices are implemented in telecom sector and companies would spend more on Human Resources, it would lead towards High performance achievement. Keywords – Human Resource Planning, Telecom Sector, Organizational Performance, Selection, Training and Incentives Paper Type­– Research Pape

Motivation of Employees towards the Adaptation of Technology

Technological change has become the mode of operation in the 20th century business community. As the workplace product transforms from paper to information services, employers and employees scramble to keep abreast of the rising tide of information and the new service opportunities created by the innovations in technology available to business. Employees are naturally expected to adapt to the ever changing norms of technology. New technological changes face employees in the workplace every day. Some employees embrace the changes that technology brings. They seek new applications for the innovations, while others resist and become defensive. Is the defensive behavior of some, a symptom of a sociological system controlling the individual? Does cognitive ability govern individual attitudes toward technological innovations? Does race, age or gender play a role in one’s perception of incorporation of new technology in the workplace? Is an individual’s attitude predetermined by past experiences? This research is the summary of a review of the literature around the above questions and a try to explore the aspect or factors that really affect the attitude of a person to adopt new technology at work place. The objective is to identify the contributing influences of an individual’s attitude towards a technological innovation in the workplace. Keywords: Employees, Motivation, Information Technology, Training, Success

Agency cost, corporate governance and ownership structure: the case of Pakistan

The article attempts to investigate the role of ownership structure and corporate governance in mitigating agency cost in a sample of 50 firms selected on the basis of market capitalization from “Karachi Stock Exchange” during the period 2003 to 2006. We used the proxy asset utilisation ratio to measure agency cost. Multivariate fixed effect regression is used to analyze the data. The explanatory variables include director ownership, institutional ownership, external ownership, board size, CEO/Chair duality, remuneration structure and board independence. The results show that higher director and institutional ownership reduces the level of agency cost. Smaller sized boards also results in lowering agency cost. Board independence has positive association with asset utilisation ratio. The separation of the post of CEO and chairperson and higher remuneration lower agency cost