17 research outputs found
UTJECAJ OBITELJSKOG VLASNIÅ TVA NA INVESTICIJSKE ODLUKE: KOMPARATIVNA ANALIZA OBITELJSKIH I NEOBITELJSKIH TVRTKI KOJE KOTIRAJU NA BURZI U KARACHIJU (PAKISTAN)
The current study attempts to investigate the impact of family ownership structure on investment decisions of firms listed at the Karachi Stock Exchange (KSE) of Pakistan. For distinguishing family owned business (FOB) from non-family (NFOB), two threshold points
of ownership structure (25% & 50%) were used. Panel data forms ranging from the period 2002-2013 were collected from different sources such as annual reports of firms, Financial statements, business recorder, stock exchanges, telephone calls, emails and balance sheet
analyses of joint stocks. Generalized Method of Moments (GMM) was applied to estimate the coefficients of variables of interest. Empirical results revealed that there was stronger positive impact of cashflow on investment in NFOBs in comparison with FOBs. Conversely,
family firms have lower investment-cashfl ow sensitivity even when blockholderās effect was taken in consideration. The estimated coefficients confirmed less investment-cash flow sensitivity in those firms comparatively where professional manager serves as a chief executive officer (CEO). It was also revealed that family firms alleviate financial constraints as well as free cash flow problems. It was concluded that broader investment horizons, corporate governance mechanism and flexibility to manage financial constraints make family firms capable of reducing investment-cash flow sensitivity.Cilj ovog rada je istražiti utjecaj obiteljske vlasniÄke strukture na investicijske odluke poduzeÄa koja kotiraju na burzi u Karachiju (Pakistan). Kako bi se razlikovala obiteljska od neobiteljske vlasniÄke strukture, u radu su koriÅ”tena dva praga u vlasniÄkoj strukturi (25% i 50%). Panel podaci iz razdoblja 2002.-2013. prikupljeni su iz razliÄitih
izvora poput godiÅ”njih izvjeÅ”Äa poduzeÄa, financijskih izvjeÅ”Äa, business recordera, s burzi, putem telefonskih razgovora, elektroniÄkom poÅ”tom te analiziranjem bilanci dioniÄkih druÅ”tava. UopÄena metoda momenata (Generalized Method of Moments - GMM) primijenjena je na procjenu koeficijenata varijabli od interesa. Empirijski rezultati otkrili su kako postoji jaÄi pozitivan utjecaj novÄanog tijeka na ulaganje u neobiteljskim tvrtkama od obiteljskih. Suprotno tome, obiteljske tvrtke imaju slabiju osjetljivost u odnosu izmeÄu ulaganja i novÄanog tijeka, Äak i kad se uzme u obzir utjecaj velikih ulagaÄa. Procijenjeni koeficijenti su potvrdili slabiju osjetljivost u odnosu izmeÄu ulaganja i novÄanog tijeka u tim poduzeÄima s obzirom na ona u kojima profesionalni menadžer djeluje kao glavni izvrÅ”ni direktor (CEO). TakoÄer se pokazalo da obiteljske tvrtke ublažavaju financijska ograniÄenja i probleme slobodnog novÄanog tijeka. ZakljuÄak je da Å”iri ulagaÄki vidici, mehanizmi korporativnog upravljanja i fleksibilnost u upravljanju financijskim ograniÄenjima mogu omoguÄiti obiteljskim tvrtkama da umanje osjetljivost u odnosu izmeÄu ulaganja i novÄanog tijeka
Ownership structures as determinants of financial decisions: evidence from Pakistani family owned listed firms
The current study aims to inspect the investment policy as well as financing policy with respect to ownership structure. Two threshold points of ownership structure (25% & 50%) were used to distinguishing family owned business (FOB) from the non-family (NFOB) ones. The data sample of 280 listed firms at Karachi Stock Exchange (KSE) was collected from different sources like annual reports, financial statements and balance sheet analyses ranging for the period 2002-2013. Among many advance econometric techniques, Generalized Method of Moments (GMM) was found appropriate to estimate the coefficients of variables. The empirical results showed that the FOBs had lower investment-internal fund sensitivity than NFOBs. However, the blockholderās effect on investment-internal fund sensitivity was found statistically insignificant. Furthermore, the weak application of Pecking Order Theory and higher payout ratio in FOBs as compared to NFOBs were revealed. Also, It was concluded that the lower agency and information asymmetry problems in FOBs comparatively
EFFECT OF CORPORATE GOVERNANCE INDEX ON DIVIDEND POLICY: AN INVESTIGATION OF TEXTILE INDUSTRY OF PAKISTAN
Effect of Corporate Governance Index on Dividend Policy: An Investigation of Textile Industry of Pakistan
This study empirically observes the impact of corporate governance index on dividend payout policy by using the data on thirty textile firms listed at Karachi Stock Exchange. The data cover the five-year period from 2009 to 2013. The data were gathered from financial statements of all the sample firms. Multiple regression models were used to check the impact of corporate governance on dividend policy. No effect of corporate governance index on firm dividend policy was found, and the largest shareholders also had no impact on dividend payout policy. A significant positive relationship was found between payout policy and stock value. Gross profit margin and operating profit margin had significant positive impact on the firmās dividend payout policy. There is a significant correlation between the firmās performance and payout policy
Environmental sustainability targets: the role of green investment, ICT development, and economic growth
Current research investigates the role of green investment, information,
and communication technology development growth in the
Chinese economyās carbon emissions from 1985-2015. This study has
applied the quantile autoregressive distributed lagged (QARDL)
approach and the Granger-causality in the quantiles to examine the
causal linkage between the variables of interest. The findings
through QARDL estimation confirm that there is an existence of significant
reversion to the long-run equilibrium association between
the explanatory variables and CO2. More specifically, the outcomes
under long-run estimation confirm that GIN and ICT development
plays a significant role in combating the issues like higher CO2 in
China. At the same time, more economic growth leads to the
destruction of the natural environment with higher carbon emissions.
However, the square of economic growth shows some fruitful
results towards fighting environmental pollution but not in all the
quantiles of the study. Besides, the Granger-causality outcomes confirm
the presence of a bi-directional association between green
investment, ICT development, economic growth, and its square
value. Based on the study findings, some policy implications are also
provided. Besides, various limitations are also linked with this study.
Firstly, the current study only examines the trends in CO2 emission
from the context of China, whereas other regional economies are
entirely neglected. Secondly, the factors like governmental influence
in controlling carbon emission, environmental regulations, and governance
mechanisms are entirely neglected in this research. Thirdly,
the robust checking of the empirical findings is also missing in this
study. Fourthly, economic uncertainty would also contribute to
environmental pollution like CO2. Therefore, it is suggested that
future studies should focus on these limitations to provide some
meaningful suggestions and literature contributions
Ownership structures as determinants of financial decisions: evidence from Pakistani family owned listed firms
The current study aims to inspect the investment policy as well as financing policy with respect to ownership structure. Two threshold points of ownership structure (25% & 50%) were used to distinguishing family owned business (FOB) from the non-family (NFOB) ones. The data sample of 280 listed firms at Karachi Stock Exchange (KSE) was collected from different sources like annual reports, financial statements and balance sheet analyses ranging for the period 2002-2013. Among many advance econometric techniques, Generalized Method of Moments (GMM) was found appropriate to estimate the coefficients of variables. The empirical results showed that the FOBs had lower investment-internal fund sensitivity than NFOBs. However, the blockholderās effect on investment-internal fund sensitivity was found statistically insignificant. Furthermore, the weak application of Pecking Order Theory and higher payout ratio in FOBs as compared to NFOBs were revealed. Also, It was concluded that the lower agency and information asymmetry problems in FOBs comparatively
The Corporate Governance Paradox: A Comparative Analysis of Multinational and Domestic Manufacturing Firms in Pakistan
There are two commonly held views on the quality of corporate governance and profitability of multinational corporations operating in the developing countries. The first view states that the quality of corporate governance practiced by multinational corporations is generally higher than that of domestic companies. The second view postulates that multinational corporations show better financial performance than domestic companies. An inference that can reasonably be drawn from these two views is that there is a positive relationship between the quality of corporate governance and financial performance of firms. The converse side of this coin is that domestic companies have lower profitability due to the poor quality of their corporate governance. But our research into the quality of corporate governance in multinational corporations and domestic companies operating in Pakistan and their respective financial performances divulges an interesting departure from these pervasive inferences. Looking at the issue with a slightly different angle, this paper examines the impact of firmsā location on its corporate governance quality and ultimately their profitability. Our results show a strong positive relationship between firmsā location and financial performance; but they indicate that the quality of corporate governance is better in domestic firms than multinational corporations. Another surprising revelation is a negative and insignificant relationship between corporate governance index and financial performance of domestic firms. We are inclined to deduce that multinational corporations owe their superior financial performance not to the quality of their corporate governance but to other factors not covered by the present research