Impact of Behavioral Finance & Traditional Finance on Financial Decision Making Process

This paper examines the individual investment preferences and discusses the different factors of behavioral finance which are related to investment influence in developing countries like, Pakistan. Introduction simply discuss difference between traditional and behavioral finance literature consists on different factors of behavioral finance and traditional finance. Third portion consists on impact of both traditional and behavioral finance on investment the fourth sections discusses the comparison of different research results and at the last part contained the conclusion. Keywords: Behavioral Finance, Traditional Finance, Investment Decision. Efficient Market Hypothesis

Performance Management System “Habib Bank Limited” A Case Study of Bahawalpur

The purpose of this study is to identify the drawbacks of the system in the organization and to know the majors problems which are affecting the system. Research is based on exploratory study on the Habib bank of Pakistan quantitative data is collected and analyzed qualitatively. Employees were unaware from the working of the system and its clarity is questioned on the basis of the politics within the organization so it’s better to conduct seminars and to be fair in decisions. There should be fair system and proper feedback given to the employees. Keywords: Performance Management, HBL, Performance appraisal, Performance management system

Testing Purchasing Power Parity: A Comparison of Pakistan and India

We defined the purchasing power parity (PPP) in the scenario of Pakistan and India as a long term unit elasticity of exchange rate and compared it with relative national prices. The characteristic of finite sample are analyzed through time series regression analysis. It allows the cross sectional dependency, country heterogeneity and non-stationary disorder. Because the deviation of PPP is decrease with very slow rate, we execute the test on the data of 43 years. The past studies have showed that data was collected on the basis decades, like some of the researcher data contained on 08, 35 and 55 years. Additionally using the time series regression, this study observed the structural changes over a long term period. In this study, result identifies that the real exchange rate of India and Pakistan are not constant. The practical evidence shows that long run PPP holds for the sample countries. Keywords: Purchasing Power Parity; Exchange rate; Time Series Regression Test; Relative National Price

Testing Purchasing Power Parity

We defined the purchasing power parity (PPP) in the scenario of Pakistan and India as a long term unit elasticity of exchange rate and compared it with relative national prices. The characteristic of finite sample are analyzed through time series regression analysis. It allows the cross sectional dependency, country heterogeneity and non-stationary disorder. Because the deviation of PPP is decrease with very slow rate, we execute the test on the data of 43 years. The past studies have showed that data was collected on the basis decades, like some of the researcher data contained on 08, 35 and 55 years. Additionally using the time series regression, this study observed the structural changes over a long term period. In this study, result identifies that the real exchange rate of India and Pakistan are not constant. The practical evidence shows that long run PPP holds for the sample countries. Keywords: Purchasing Power Parity; Exchange rate; Time Series Regression Test; Relative National Price

Which Factors Influence the Customers Switching Behavior? (Evidence from the Customers of Banking Sector of Pakistan)

This study investigates which factors influence customer’s switching behavior specifically in banks. Flourishing organizations very well aware about one fact that the road to their success moves with their customers. Those companies who do not value their customers they create chance for their rivals to capture customers. Same instance happen in banking sector.  We developed a questionnaire and used that for data collection survey from 200 customers having their bank accounts in different banks of Pakistan.  Results of the current study expose that number of bank branches, quality of services, profit or interest rates offered by banks to their customers directly impact on the attitude and it drive intention to behave in a particular way of customers. If the profit or interest rate will not be higher than any other bank then this factor will create intention to switch. Same behavior will be establish by customers in the case of low service quality and single bank branch or distant branch from center of city. Study also indicate that banks should concentrate on improving their service quality according to the market demand and for the betterment of customers’ perception, satisfaction and loyalty. Keywords: Switching behavior, service quality, convenience, religious belief, advertisement, profit & interest rat

Huippusuoriutujan menestystekijät - Huippu-urheilijoiden käsityksiä huippusuoriutumisen taustatekijöistä

The characteristics of stock prices reflect the all available information in market. This study explored the weak form efficiency of Islamabad Stock Exchange (ISE). In this research paper, we have also revealed the behavior of stocks prices traded in Islamabad Stock Exchange, and how it behaves in different unusual events. Stock markets are the major contributor to economy. To test the weak form efficiency of Islamabad Stock exchange, we have tested Efficient Market Hypothesis. EMH is a method to measure the stock prices trends in the market. Efficient market hypothesis also helps for making the right investment decisions. From last two decades EMH has obtained much importance in the field of finance. So it has attracted many researchers to explore the anomalous behavior of efficient stock market. Efficient market hypothesis has three main categories: 1. Weak form 2. Semi-strong form 3. Strong form. We will focus only weak form of market efficiency in ISE. Focus of the study is to analyze the weak form of ISE-10 in the stock market. For this purpose we have used different statistical techniques for analyzing the data that is collected from the official website of ISE. Data will be in the form of weekly ISE-10 share index. Time period of data is From January, 2013 to December, 2013. To render this study to the conclusion, we have use the famous tests of statistics such as run test and ADF test to check the weak form of ISE. We have also focused on the random walk behavior of stock market of Islamabad. Because the price movement in random form, that investor could not predict the stock prices due to weak form. In weak form, no investor can get abnormal return in stock market. There is very large debate on stock activities that would be explode further. Keywords: EMH, Islamabad Stock Exchange, Market efficiency, Test of weak form efficiency