The Factors Affecting the Money Left on the Table by Pakistani IPO Issuers

This study is about the level of under-pricing of 30 IPOs of eleven different sectors listed on Karachi Stock Exchange from the period 2006 to 2013. We also examined the factors that influence the money left on the table by IPO issuers in Pakistan. Like other countries, the under pricing was also found among the Pakistani IPOs. The sectors consist of Close Ended Mutual Fund, Commercial Banks, Modarabas, Investment Banks/Investment Companies, Textile Spinning, Miscellaneous, Chemicals, Engineering, Cement, Telecommunication and Power. The entire sample shows that market adjusted abnormal return of 68.22% is there in the sector of commercial bank, 14.88% in sector of Modarabas, 38.31% in investment banks and investment companies sector, 97.51% in Miscellaneous sector, 66.99% in Chemicals sectors, 143.66% in Engineering sector, 25.36% in Cement sector and 251.24% in power sector while investors have faced loss -21.45% in Close-End Mutual Funds sector, -32.89% in textile spinning sector and -19.84% in telecommunication sector. We have used the regression analysis to observe the level of under-pricing regarding eleven different sectors. Among the variables we use in our study ex-ante uncertainty and over-subscription variables showed significant effect while the other variables which include proportion of shares offered to general public, log of offer size and market volatility did not show great effect on the under-pricing

Effects of Exchange Rate Instability on Imports and Exports of Pakistan

The instability in exchange rate (appreciation and depreciation in home currency) is an important factor indetermination of trade balance of a country. Fluctuating  exchange  rates  impacts  the  decision  making  of  investors  and  traders,  it shatters  their  confidence  which ultimately  leads  to the slowness of trade process. In this research paper the effect of exchange rate instability is measured on imports and exports of Pakistan. For this purpose Regression analysis is used and  it  is calculated that if instability is created due to depreciation in  home  currency  ( Pak rupee )then it  has  positive  impact on Pakistan’s  exports, while it has absolutely  no effect on imports of Pakistan. Since Pak rupee has very limited appreciation during last 20 years so appreciation effect of home currency can not be calculated on Imports and exports of Pakistan.     In theoretical prospective the devaluation of home currency should decrease the volume of imports, because it will cost more for Pakistan to import goods from other countries. But our empirical findings show that, this is not the case between exchange rate and imports of Pakistan.  The imports of Pakistan grew even in large figure as the home currency depreciated against other currencies. So this shows that depreciation of home currency do not effect the imports in of Pakistan. Our findings through regression analysis show that by decrease in value of home currency imports of Pakistan increase. So depreciation in home currency has no effect on imports volume.&nbsp

Effect of Organizational Justice and Job Satisfaction on Organizational Effectiveness with the moderating role of Strategic Commitment

In this era of highly competitive business environment every organization strives to be successful, and for that an organization pays great emphasis on organizational justice and job satisfaction of its employees in order to be effective and successful. This study investigates the impacts of organizational justice and Job Satisfaction on organizational effectiveness with moderating variable of strategic commitment. The organizational justice is subdivided into three types: Distributive Justice, Procedural justice, Interactional justice while job satisfaction is also divided into three dimensions as well: Working Condition, Job security and Autonomy. This study is an effort to contribute in the body of knowledge and helpful for organizations to improve their effectiveness. The data for this study is collected from Telecommunication sector of Pakistan via questionnaire

Factors Effecting Corporate Cash Holding of Non-Financial Firms in Pakistan

The previous researches explore the question of why firms hold cash. But there are few researches done in developing countries like Pakistan. The need for cash is characterized by its policies of firms regarding capital structure, working capital requirements, cash flow management, dividend payments, and asset management. In this paper, the impact of these factors is normally analyzed under the framework of Tradeoff theory, Pecking Order Theory and Free Cash Flow Theory. This paper focuses on determining the level of corporate cash holdings of non-financial Pakistani firms, and cash holding requirement among different industries. The data is set for period of 2008-2012 by using the data of 40companies and 6 industries. The findings of the study support the theories. Which show that firm size, net working capital, leverage, Capital Expenditure and Dividend significantly affect the cash holdings of non-financial firms in Pakistan

Interrelationship of biases: effect investment decisions ultimately

The purpose of this study is to examine if investors of Islamabad Stock Exchange are indicating tendencies of irrational behavior when exposed to certain psychological dilemmas related to the financial world and what are interrelationships among these dilemmas, This study deals with three dilemmas i.e. self-attribution bias, overconfidence bias and overoptimism bias. The main purpose of the study is to empirically prove the relationship among the biases and their effect on the rational decision making of an investor. For this study quantitative method is used and a survey is conducted. For measuring the behavioral impact on decision making, Structural Equation Modeling is used on the collected empirical data to obtain the results. The findings of this study can be useful for individual investors, financial brokers, financial manager and other financial decision makers to improve their cognitive thinking process and make more rational decisions

Effects of Exchange Rate Instability on Imports and Exports of Pakistan

The instability in exchange rate (appreciation and depreciation in home currency) is an important factor indetermination of trade balance of a country. Fluctuating exchange rates impacts the decision making of investors and traders, it shatters their confidence which ultimately leads to the slowness of trade process. In this research paper the effect of exchange rate instability is measured on imports and exports of Pakistan. For this purpose Regression analysis is used and it is calculated that if instability is created due to depreciation in home currency (Pak rupee) then it has positive impact on Pakistan‘s exports, while it has absolutely no effect on imports of Pakistan. Since Pak rupee has very limited appreciation during last 20 years so appreciation effect of home currency can not be calculated on Imports and exports of Pakistan. In theoretical prospective the devaluation of home currency should decrease the volume of imports, because it will cost more for Pakistan to import goods from other countries. But our empirical findings show that, this is not the case between exchange rate and imports of Pakistan. The imports of Pakistan grew even in large figure as the home currency depreciated against other currencies. So this shows that depreciation of home currency do not effect the imports in of Pakistan. Our findings through regression analysis show that by decrease in value of home currency imports of Pakistan increase. So depreciation in home currency has no effect on imports volume

The Factors Affecting the Money Left on the Table by Pakistani IPO Issuers

This study is about the level of under-pricing of 30 IPOs of eleven different sectors listed on Karachi Stock Exchange from the period 2006 to 2013. We also examined the factors that influence the money left on the table by IPO issuers in Pakistan. Like other countries, the under pricing was also found among the Pakistani IPOs. The sectors consist of Close Ended Mutual Fund, Commercial Banks, Modarabas, Investment Banks/Investment Companies, Textile Spinning, Miscellaneous, Chemicals, Engineering, Cement, Telecommunication and Power. The entire sample shows that market adjusted abnormal return of 68.22% is there in the sector of commercial bank, 14.88% in sector of Modarabas, 38.31% in investment banks and investment companies sector, 97.51% in Miscellaneous sector, 66.99% in Chemicals sectors, 143.66% in Engineering sector, 25.36% in Cement sector and 251.24% in power sector while investors have faced loss -21.45% in Close-End Mutual Funds sector, -32.89% in textile spinning sector and -19.84% in telecommunication sector. We have used the regression analysis to observe the level of under-pricing regarding eleven different sectors. Among the variables we use in our study ex-ante uncertainty and over-subscription variables showed significant effect while the other variables which include proportion of shares offered to general public, log of offer size and market volatility did not show great effect on the under-pricing

Factors Affecting Corporate Cash Holding of Non-Financial Firms in Pakistan

The previous researches explore the question of why firms hold cash. But there are few researches done in developing countries like Pakistan. The need for cash is characterized by its policies of firms regarding capital structure, working capital requirements, cash flow management, dividend payments, and asset management. In this paper, the impact of these factors is normally analyzed under the framework of Tradeoff theory, Pecking Order Theory and Free Cash Flow Theory. This paper focuses on determining the level of corporate cash holdings of non-financial Pakistani firms, and cash holding requirement among different industries. The data is set for period of 2008- 2012 by using the data of 40companies and 6 industries. The findings of the study support the theories. Which show that firm size, net working capital, leverage, Capital Expenditure and Dividend significantly affect the cash holdings of non-financial firms in Pakistan