Analysis of Financial Progress of Cement Industry in Pakistan Using Altman’s Z-score

Cement is vital component in construction activities. Cement industry plays vital role in the country’s infrastructure development, Pakistan cement industry is existed before split of sub-continent, in 1972, Pakistan cement industry was nationalized. The secondary data was collected and used the financial statements from 2010 to 2015 provided by the state bank of Pakistan, Altman’s z-score modeling was contemplated as one of the best model for forecasting corporate financial health of the cement business. In this research findings demonstrate one angle clear and loud that inventory, debtors and creditors management policy of industry play substantial part in profitability. With the passage of time and arrival of china Pakistan economic corridor (CPEC) this sector is now flourishing, from the year 2014 to 2015, 48% cement companies lies in safe zone, 28% in grey zone and also 25% in distress zone. Investment in this sector may provide high return for the investors. Keywords: Cement manufacturer, Financial performance, Ratios, Z-Score

Financial Sector, Democracy and Economic Growth: A Panel Data Analysis

Economic growth depends on many factors like the traditional factors of capital, labour and technological advancement and the somewhat novel factors of financial development and the nature of political regime. The relationship between the nature of political structure and economic growth is quite complicated. There may be direct and indirect impacts of the nature of political set up on economic growth. However, these channels remain un-explored to larger extent. The present study is conducted to analyse economic growth under democracy and dictatorship for a considerably larger set of countries from 1974 to 2013. The indirect impact of democracy on economic growth is analysed through an unexplored channel of financial sector performance, which is expected to be sensitive to regime type. The direct impact of democracy is found to be positively significant on economic growth. Likewise, direct impact of financial sector performance on economic growth is also found to be positive and significant. However, democracy had negative indirect impact on economic growth through financial sector but the magnitude of this indirect negative impact is minute enough to be ignored as compared to large individual direct effects of democracy and financial sector. JEL Classification: O40, O43, O16 Keywords: Economic Growth, Democracy, Dictatorship, Financial Sector Performanc

Allelopathy and Agricultural Sustainability: Implication in weed management and crop protection—an overview

Crop plants have defined roles in agricultural production and feeding the world. They are affected by several environmental and biological stresses, which range from soil salinity, drought, and climate change to exposure to diverse plant pathogens. These stresses pose risk to agricultural sustainability. To avoid the increasing biotic and abiotic pressure on crop plants, agrochemicals are extensively used in agriculture for attaining desirable yield and production of crops. However, the use of agrochemicals is also challenging the integrity of ecosystems. Thus, to maintain the integrity of ecosystem, sustainable measures for elevated crop production are required. Allelopathy, a process of chemical interactions between plants and other organisms, could be used in the management of several biotic and abiotic stresses if the basic mechanisms of the phenomena and plants with allelopathic potentials are known. Allelopathy has a promising future for its application in agriculture for natural weed management, improving soil health and suppressing plant diseases. The aim of this review is to discuss the importance of allelopathy in agriculture and its role in sustainability with a specific focus on weed management and crop protection

Impact of Financial Leverage on Dividend Policy of Pakistani Sugar Industries

The study aims to analyze the impact of financial leverage on dividend policy of the listed sugar companies on Karachi Stock Exchange. Dividend paid is the foundation of satisfaction toward investors moreover means to increase their confidence on management. The sugar industry in Pakistan is the second largest agriculture-based industry after textile. Dividend Yield, Debt Ratio and Earnings per share are the independent variables for the study, where Dividend per share is the dependent variable. This study uses data from 2011 to 2016, collected from annual reports of companies listed in Karachi Stock Exchange. Moreover, Multiple regression is used to determine the impact. The findings suggest that Only debt ratios has a negative impact whereas Dividend Yield and Change in earnings have a positive impact on Dividend per share

An Empirical Analysis of the Relationship between International Trade and Quality of Life

Ever increasing trade restrictions have severe consequences for the quality of human life. Since improving the quality of life (QoL) is the core of economic development, therefore, it is important to investigate the factors affecting it. International trade is an important factor which affects QoL. Therefore, the current study is an attempt to analyze the nexus of international trade and QoL in the member countries of the United Nation Development Program (UNDP). Since QoL is a subjective measure, therefore, human development index (HDI) was used to empirically measure it. Data of 184 UNDP member countries for a period of 28 years (1990-2017) was analyzed in the current study. Both cross-sectional and panel data analysis techniques were used. The results indicated that international trade positively affects QoL. Hence, it was concluded that instead of remaining a closed economy, countries should promote international trade to improve the QoL of their people

A Panel Data Analysis of Globalization, Peace and Stability: Implications for Governance and the Global Knowledge Economy

This study attempts to explore the relationship between globalization and the knowledge economy via governance. It intends to explain the channel of their relationship through peace and stability. Knowledge economy pillars (Education and Information and communication technology) are used as the dependent variable and globalization is used as an independent variable. To obtain the objectives of the study, the panel data set of 198 countries is used for the period of 1996-2016. The study has employed econometric techniques of panel data set such as the Fixed Effect Model (FEM), Random Effect Model (REM), and Hausman test. The results reveal that globalization has a significant and positive impact on the knowledge economy. Hence the study recommends that the country should execute such reforms that help enhance the globalization and increase the development of the knowledge economy. JEL Classification Codes: F6

Conventional or Shariah Compliant Investment: Performance Evaluation of Mutual Funds in Pakistan

The current study was initiated to compare the performance of conventional and Shariah-compliant mutual funds in Pakistan, keeping in view the contradictory opinions found in the literature in this regard. The data utilized to conduct the analysis covered the time span 2013-2021. Assessment of risk and return tradeoff  was made with three ratios, namely Jenson’s alpha, Treynor ratio, and Sharpe ratio by evaluating the monthly returns of conventional and Shariah-compliant mutual funds. The findings revealed that Shariah-compliant mutual funds outperformed conventional funds in terms of absolute risk measure, higher Sharpe ratio, and low coefficient of variation. While, in terms of funds’ exposure to systematic risk, mixed results were obtained for both types of funds. The results produced sufficient information about the risks and returns associated with the two kinds of mutual funds which would enable fund managers and investors to make informed decisions while selecting the best mutual fund, thus generating maximum returns and with minimum risks

FDI and Exports in Developing Countries: Theory and Evidence

Multinational enterprises (MNEs) not only generate global flows of foreign direct investment, but are also extremely for global trade flows. UNCTAD (2004) estimates that MNEs account for around two-thirds of world exports. Since MNEs are responsible for a large proportion of world trade, one may infer that there is a close relationship between flows of FDI and trade. An MNE network, consisting of a parent and a network of affiliates, generates simultaneous flows of goods and investments. In this context the pool of knowledge and associated models, which explain international trade, has grown substantially in the recent past, but there is less theoretical consensus about the relationship between trade flows and FDI. The fact that exporting and local production are alternative ways for an MNE to serve the demand in a foreign market suggests a substitutability relationship between FDI and trade. MNE production in the host country implies that local production is a substitute for exports from the home country. On the other hand, MNE affiliates’ production in a host country can generate a demand for intermediate goods from the parent, resulting in a complementary relationship between flows of FDI and trade (exports). Theoretical reasoning therefore supports both these possibilities, providing a strong incentive for empirical analysi