67 research outputs found
Relative City Price Convergence in Pakistan: Empirical Evidence from Spatial GLS
The study estimates relative city price convergence using CPI data from July 2001 to June 2008 on 35 Pakistani cities. Two cities Lahore and Karachi are chosen to be the numeraire cities. The half life of relative city price shock has also been estimated. The study finds average half life of price shock to be less than 5 months but it varies from 1.3 to 68 months in the case of individual cities. The estimates of Spatial GLS are found to be lower than OLS which may imply that Spatial Correlations are important factor for the estimation of half life. Furthermore, the average half life of a price shock in Lahore is less than that of Karachi.Prices; convergence; Spatial GLS
Monetary policy restriction and dividend behavior of Pakistani firms: an empirical analysis
Studies upon impact of macro variables on firmâs dividend policy are very limited and specifically rare in Pakistan perspective. Main purpose of this research paper is to observe impact of restricted monetary policy on dividend behavior of Pakistani firms. During restricted monetary policy, cost of external funds increases and firms prefer to utilize internal funds leading to reduction in dividend payout. Behaviour of 100 listed firms, selected purposefully, has been observed for the period from 2001 to 2009 by using Lintnerâ modified model.. During the research period of nine years, monetary policy has been gone through both loose and tight phases. Proposed model is dynamic one as lagged dependent variable has been used as explanatory variable. Due to certain limitations with selection of monetary policy instrument, overall stance of State Bank of Pakistan (SBP) in its annual reports has been used as a dummy variable in the model. Results of all the three estimations reveal almost same results. First lagged dividend has been proved to be most deterministic factor of dividend policy followed by current earnings. Monetary policy and lagged dividends interactive variables provide mixed results. First interactive variable has negative coefficients in all three, fixed effect, random effects and GMM, models but with insignificant p values. Second monetary policy interactive variable has positive coefficients with significant values in random effects and GMM model. Firms seem to follow relatively stable dividend policies with lower adjustment factor. As model is dynamic, GMM estimation is preferred. Monetary policy has not been observed as significant determinant of dividend policy of Pakistani firms.Dividend payment, Monetary Policy
Financial liberalization and macroeconomic performance, empirical evidence from selected Asian countries
Financially repressed economy cannot grow with an increasing growth rate. Thatâs why most of the developing countries move toward liberalized financial system. The basic objective of this paper is to provide a comparative analysis of Pakistan, China, and India financial sector liberalization and its impact on macroeconomic performance. This study uses Johansen co integration to provide cross country evidence of long run relationship between macroeconomic variables and financial openness. Results show that there is long run relation among financial openness and macro economic performance in all three countries. Financial liberalization has positive and significant effect on Pakistan macroeconomic performance while negative and significant effect on china economy. The relationship in India is positive but not significantFinancial liberalization, financial depth. Economic growth
Economics of Property Crime Rate in Punjab
This study intends to ascertain the impact of socio-economic,
demographic and deterrent variables and the effect of technical criminal
know-how and past criminal experience on property crime rate. The
property crime equation comprises of the following independent
variables: population density, unemployment rate, literacy rate, police
strength and number of police proclaimed offenders in a society. The
property crime equation has been estimated by using a time-series data
set for Punjab from 1978 to 2012. We have applied Johansen cointegration
approach to test the long run relationship among the variables.
Empirical findings suggest that police strength has a deterrent effect
while past criminal experience enhances property crime rate in Punjab.
The study finds population density has a significant positive
relationship while education has a significant negative relationship
with property crime rate. Further we also find a negative relationship
between unemployment and property crime which is supported by the
concept of âconsensus of doubtâ in the discipline of crime and
economics. JEL Classification: D
Monetary Policy Restriction and Dividend Behaviour of Pakistani Firms: An Empirical Analysis
Dividend behaviour has extensively been reviewed by many
researchers from time to time across different countries. Empirical
evidences observed in most of the studies reveal equivocal results about
dividend theories [Bhattacharyya (2007)]. Since, in absence of any
unanimous findings, need for future research has not been restricted,
theoretically. In developing countries like Pakistan, where limited
research is available on corporate dividend policy, need for future
research is more looked for. Most of the available research papers,
address only firm specific determinants of dividend policy. Do
macroeconomic variables influence corporate financing decisions? The
need to address this question is the prime motive of this research
paper. Major objective of this paper is to observe dividend behaviour of
listed firms in Pakistan under monetary policy restrictions and this is
the first attempt of its kind in Pakistan to the best of my Knowledge.
This study is very relevant in present scenario since State Bank of
Pakistan (SBP) has been persistently pursuing restricted monetary policy
since 2005 to control inflation
Monetary Policy Announcements and Market Interest Rates in Pakistan: An Event Study Approach.
The objective of this paper is to analyse the impact of
monetary policy (MP) announcements on market interest rates at different
nine maturities (1/Week, 2/Week, 1/Month, 3/Months, 6/Months, 9/Months,
1/Year, 2/Years and 3/Years) in Pakistan. The Event window of 11 days
and an estimation window of 250 days have been used for analysis. The
study did not find significant evidence of ARCH effect in market
interest rates at (1/Year, 2/Years and 3/Years) maturities. However,
there is evidence of significant abnormal returns which shows a positive
impact of monetary policy announcements on market interest rates at
different nine maturities. Keywords: Monetary Policy, Market Interest
Rates, Normal Rates, Abnormal Rates, GARCH, ARIM
Momentum Effect: Empirical Evidence from Karachi Stock Exchange
Capital market efficiency and the prediction of future stock
prices are the most thought-provoking and ferociously debated areas in
finance. The followers of traditional financial theory strongly believe
that the markets are efficient in pricing the financial instruments.
This view became popular after Famaâs work on the Efficient Market
Hypothesis. But before 1990s, wide-ranging financial literature
documented that stock prices, to some extent, are predictable. Many
psychologists, economist and the journalists are of the view that
general tendency of individuals is to overreact to the information. De
Bondt and Thaler (1985) studies this view of experimental psychology
that whether such behaviour matters at the market level or not. They
found out that stock prices will overreact to information, and suggested
that contrarian strategies buy the past losers and sell the past
winners, earn abnormal returns. They extended the holding period from 3
to 5 years and provide the evidence of long term returns reversal.
Jegadeesh (1990) and Lehmann (1990) supported the evidence of return
reversal in short term, i.e. from one week to one month. They suggested
that the contrarian strategies having holding period of one week to one
month earned the significant abnormal return. Lo and Mac Kinalay (1990)
objected on the ground that a major portion of this abnormal return,
reported by Jegadeesh (1990) and Lehmann (1990), is due to the delayed
reaction of stock prices to common factors rather than to overreaction.
Some other researchers pointed out some other reasons of this abnormal
stock returns i.e. short-term pressure on stock prices and absence of
liquidity in the market rather than overreaction
Relative City Price Convergence in Pakistan: Empirical Evidence from Spatial GLS
The study estimates relative city price convergence using CPI data from July 2001 to June 2008 on 35 Pakistani cities. Two cities Lahore and Karachi are chosen to be the numeraire cities. The half life of relative city price shock has also been estimated. The study finds average half life of price shock to be less than 5 months but it varies from 1.3 to 68 months in the case of individual cities. The estimates of Spatial GLS are found to be lower than OLS which may imply that Spatial Correlations are important
factor for the estimation of half life. Furthermore, the average half life of a price shock in Lahore is less
than that of Karachi
Electrical conductivity retention and electrochemical activity of CSA doped graphene/gold nanoparticle@ polyaniline composites
AbstractThis paper reports the synthesis of CTAB mediated CSA doped PANI and GN/GNP@ PANI composite nanofibers. The as synthesized composite nanofibers were examined by TEM, SEM, XRD, Raman spectroscopy; UVâvisible diffused reflectance spectroscopy and TGA. The CTAB mediated CSA doped composite nanofibers showed 59% higher DC electrical conductivity at ambient temperature than that of PANI, which might be due to the enhancement in the mobility of the charge carriers and reduction in hopping distance in the composite system. The CTAB mediated CSA doped composite nanofibers compared to PANI was observed to be showing enhanced DC electrical conductivity retention after various cycles of heating, suggesting an enhancement in thermal stability of the composite structure, which could be attributed to the synergistic effect of GN, GNP and PANI. Additionally, the composite nanofibers showed greater electrochemical activity and better capacitive performance and reduced optical bandgap than that of PANI
Financial liberalization and macroeconomic performance, empirical evidence from selected Asian countries
Financially repressed economy cannot grow with an increasing growth rate. Thatâs why most of the developing countries move toward liberalized financial system. The basic objective of this paper is to provide a comparative analysis of Pakistan, China, and India financial sector liberalization and its impact on macroeconomic performance. This study uses Johansen co integration to provide cross country evidence of long run relationship between macroeconomic variables and financial openness. Results show that there is long run relation among financial openness and macro economic performance in all three countries. Financial liberalization has positive and significant effect on Pakistan macroeconomic performance while negative and significant effect on china economy. The relationship in India is positive but not significan
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