Financial Wealth, Environment, & Framing; A Decision Making Approach

The fundamental reason for this study was to explore the impact of the variable "financial wealth" which debilitates the framing effect and “environment” which has a frail acquaintanceship with framing effect.  A self-created questionnaire was utilized with the end goal of information gathering.  Population for this examination was the gurus and mutual fund managers from the ISE & LSE.  The gathered information was dissected with the assistance of clear dissection, correlation analysis, and the straightforward regression strategy likewise.  The conclusion of this study exhibits that the encircling influence in the identity of singular may influence the choice making capability of the speculator. Keywords: Framing Effect; Financial Wealth; Investment Environmen

Stock Returns Reaction to Dividend and Earnings Announcement: Which Event Provide More Predictive Information to Investor’s

The objective of this study is to reduce the uncertainty involved in firm’s future earnings performance by scrutinizing the impact of dividend and earnings announcement on stock returns by assembling data from the official website of Karachi Stock Exchange (KSE) over the period 2010-2014. The study employed event study methodology to examine the effect of dividend and earnings announcement on the stock returns around the 41-days event window of both pre and post announcement. The research results revealed that after the dividend announcement, stock prices move upward which is statistically significant and support the dividend signalling theory but in case of earnings announcement the persistent downward drift of stock prices in the post announcement period is observed which is statistically insignificant and offer some support for behavioral finance theory. Overall, the result confirmed that dividend announcement provide more predicative information than the earnings announcement around the firm’s future earnings performance. The study have implications for investors, policy makers and shareholders for their proper strategic decision making to uncovered the uncertainty about the firm’s future earnings performance. Keywords: Dividend Announcement; Earnings Announcement; Stock Returns; Signalling Effects; Event Study. JEL Classification: G35; G17; G32

Explaining the Cross Section of Stock Returns: A Comparative Study of the Pakistan and India

The study is conducted to provide significant evidence to assess the impacts of P/E ratio (price to earnings ratio), P/B ratio (price to book ratio) and D/E ratio (debt to equity ratio) on stock returns by amassing data of companies list on KSE in Pakistan and BSE in India over the period of 2010 to 2014. The annual compound returns are calculated on the bases of average of the past 12 monthly returns for each company. To effectively assess the relationship between variables used panel data approach and revealed that that price to book ratio and debt to equity ratio have positive and price to earnings ratio have negative impact on stock returns in Pakistan. In India, Price to earnings ratio and price to book ratio have positive while debt to equity ratio have negative impact on stock returns. The Markowitz Portfolio theory, Capital Assets Pricing model (CAPM) and Fama and French theories support to the findings of the study. The study have implications for investors, policy makers and shareholders to makes financing decision and suggested that independent variables have higher explanatory power which are statistically significant in explaining the cross-section of stock returns in both country. Keywords: Stock returns, Market efficiency, Panel data

Effect of Change in the Deposit Rates of Conventional Banks on Investment Rates of Islamic Banks in Pakistan

The paper aims to inspect the change in deposit rates of conventional banks and its effect on investment rates of Islamic banks in Pakistan. This study would attempt to resolve the puzzle among Islamic banking is interest free or interest based by amassing data from the Islamic or non-Islamic banks in Pakistan over the period 2010 to 2014. The performance of Islamic banks is considered as a realistic evolution from the study of history. Islamic banking is actually the system of banking that is purely based on Islamic jurisprudence. They have become an undeniable reality and it is evident from the increasing number of Islamic based banks. The discriminatory feature of Islamic banking is the prohibition of Riba (interest) and profit and loss sharing according to shariah principle. From the analysis, it is found that the concept of Islamic banking is not much different from that of conventional banking. The investment rates of Islamic banks fluctuates with that of deposit rates of conventional banking but not vice versa. Keywords: Deposit Rate, Investment Rate, Islamic Banking, Conventional Banking Jell Classification: G21, E2

Impact of Earnings Announcement on Stock Returns and Information Effect on Investor’s Sentiments: Evidence from Pakistani Stock Market

The purpose of this study to empirically investigating the impact of earnings announcement on stock returns and investor’s deportment via signalling effect for the period 2010-2014 by the Pakistani firm’s listed on Karachi Stock Exchange (KSE). The study employed event study methodology to examine the effect of earnings announcement on the stock returns around the 41-days event window of both pre and post announcement. The research results reveal that after the earnings announcement, stock returns persistent downward drift which is statistically insignificant and offer some support for behavioral finance theory which confirmed that earnings announcement not provide any predicative information around the firm’s future earnings performance. The study have implications for investors, policy makers and shareholders for their proper strategic decision making to uncovered the uncertainty about the firm’s future earnings performance. Keywords: Earnings Announcement; Stock Returns; Signalling Effects; Event Study. JEL Classification: G14; G17; G32

Impact of Financing on Sales Growth

Purpose: The purpose of the study is to examine the impact of credit supply and long term financing on sales growth in manufacturing sector.Design/methodology/approach: It is causal study; in which secondary data from audited annual reports of manufacturing firms are included. Findings: It is proved that long term financing has significant negative effect on sale growth. While, trade credit and lagged sales growth are found to increase sales.Practical implications: It has practical implication from manager’s perspectives. It is beneficial for managers to increase their firm’s growth efficiently by managing the supply of trade credit. It will also enhance their skill to manage long term loans so that firm’s sales can’t effected badly. Originality Value: It is the unique study as it provide evidence that how sales growth of the manufacturing sector can be effected by granting trade credit and taking long term financing followed by trade-off theory

Green creativity among luxury hotels of Saudi Arabia : role of green organizational culture, self-efficacy, environmental orientation and green work engagement

Due to pilgrimage, development, and tourism culture, luxury hotels are large in numbers in Saudi Arabia and the innovation of green practices is required to be adopted. The study's purpose is to determine the green creativity (GC) among luxury hotels in Saudi Arabia concerning the role of green organizational culture, self-efficacy, environmental orientation, and green work engagement (GWE). 316 responses from luxury hotel employees are considered the final sample size of this research and structural equation modeling is used for data analysis. The research demonstrated that the mediating role of GWE is significant between industry macro culture (IMC), cultural fragmentation, green self-efficacy, internal environmental orientation (IEO), external environmental orientation (EEO), and GC. This study has developed a unique model new in the literature. The dimensions of GC developed in this research model weren’t reported in the models of previous research works. Furthermore, the GC -related theoretical implications of this research are reliable to improve the body of knowledge in a significant way. Furthermore, the findings of this research are practicable to improve GC among luxury hotels in Saudi Arabia.Muhammad Awais Bhatti (Department of Management, College of Business Administration, King Faisal University)Includes bibliographical references