Impact of Capital Asset Pricing Model (CAPM) on Pakistan (The Case of KSE 100 Index)

In this paper two estimated return on stock models i.e. standard Capital Asset Pricing Model (CAPM) and 3 F Models are compared in order to get information that which determine better estimates the return on stock in Pakistani capital market. For this purpose time series monthly data from secondary sources for a period of 2003 to 2007 has been taken.  CAPM were tested for the five sizes and book to market portfolios from Karachi Stock Exchange. Pakistan T-bill rate is taken as risk free rate. However basic problem with (CAMP) was predictive power Predictive power and Robustness of results. For this purpose capital asset pricing model was applied. Dependent variable portfolio represented by. The excessive return shows the return above that of the risk free rate  that is required by the investor for taking additional risk. While independent variables were market risk premium. Research Findings are as follows: CAPM better estimated the return in Pakistani capital market as compared to Fama and French Three Factor model In case of CAPM, it was able to show the existence of risk premium as the only factor affecting the stock return. CAPM better estimates the return on equity in the context of Pakistani capital market so it is preferable to use, however, caution should be exercised in generalizing the applying the result on other stock markets because F&F model has estimated well in most stock markets of the world. Keywords: CAMP, Market portfolio, KSE, Risk Premiumi ii, Fama & French 3 factor mode

Histopathological Outcome of Testicular Lesions at PIMS

Objective: This study was undertaken to determine the incidence, Age wise distribution and Histopathological outcome of the testicular lesion at Pakistan Institute of Medical Sciences Islamabad.Methodology: A retrospective study of 69 patients in which orchiectomies was done for testicular lesion from January 2013 to March 2016 at Department of Urology Pakistan Institute of Medical Sciences, Islamabad. The epidemiological data were retrieved from case files and histopathological reports. Data was analyzed in respect of side involvement, age and histological type of tumors.Results: A total of 69 patients included in the study, of which 49(71.01%) were Non-neoplastic and 20(28.98%) were neoplastic lesions. Among Non- neoplastic lesions 24(48.98%) were undescended testis, 24(48.98%) were torsion and 1(2.04%) were an abscess. A maximum number of cases were diagnosed in the second decade of life (30.62%), left side involvement (59.18%) was common then right side involvement (40.82%).Among neoplastic lesions 40% were Yolk sac tumors,30% were Mixed germ cell tumors,20% were seminoma, 5% were teratoma and 5 % were B-cell lymphoma. Most of the cases were diagnosed in the third decade of life (45%), Right side involvement (70%) was more common than left side involvement (30%).Conclusion: Testicular tumors is still common in our population, but in our study, there is no evidence of malignancy in the undescended testis

Teachers’ accounts of their perceptions and practices of providing written feedback to Nursing students on their assignments

Written feedback can facilitates students’ learning in several ways. However, the teachers’ practice of written feedback may be affected by various factors. This study aimed to explore the nurse teachers’ accounts of their perceptions and practices of providing written feedback. A descriptive exploratory design was employed in the study. A purposive sample of 12 teachers from nursing institutions in Karachi, Pakistan, participated in the study. Using a semi-structured guide, in-depth interviews were conducted with the participants, between January-September, 2013. The interviews were tape recorded and transcribed verbatim and were manually content analyzed. The analysis of findings led to three sections: teachers’ conceptions about written feedback, teachers’ practices of providing written feedback, and factors that affect the teachers’ practices of providing written feedback to their students. The findings indicated that although the teachers realize the importance of written feedback and its impact on students’ learning, several factors, including teachers’ competence and commitment, students’ receptivity, and contextual barriers, affected their practices. To actualize the potential power of teachers’ written feedback in students’ learning, both teachers and institutional administrators need to realize the importance of written feedback. Moreover concerted efforts including teachers’ development and policies are required to overcome the factors that negatively influence the practices of written feedback

Internal Corporate Governance Mechanisms and Agency Cost: Evidence from Large KSE Listed Firms

The purpose of the study is to analyze various corporate governance mechanisms that reduce agency cost. For the period 2003-2010 we have selected 120 firms on the basis of market capitalization listed on the “Karachi Stock Exchange”. We used two proxies’ asset utilisation and asset liquidity ratios to measure agency cost. A higher asset utilization ratio means lower agency cost whereas a higher asset liquidity ratio means higher agency costs. Board and committee activities, board size, CEO/Chair duality, CEO tenure, %Block ownership, %largest investor and debt financing are used as independent variables. The result shows that variables board and audit committee activities and asset utilisation ratio has strong positive correlation. However block ownership, board size, duality and asset utilization ratio appears to have negative correlation. When we use asset liquidity ratio as the dependent variable agency cost is reduced with frequent board meetings. The variables board size and CEO tenure has positive correlation with asset liquidity ratio. Block ownership and asset liquidity ratio has negative association. Furthermore variables duality, debt financing and largest investor has insignificant relation with asset liquidity ratio. Keywords: Asset Utilization Ratio, Asset Liquidity Ratio, Corporate Governance

Factors Affecting the Demand Side of Exports: Pakistan Evidence

The aim of this article is to investigate different factors affecting the demand of Pakistani exports. Factors affecting the demand of exports include real effective exchange rate, nominal exchange rate, world production capability and world export price variable. The period of the study is from 1990 to 2010. Data is gathered from various sources including State Bank of Pakistan, Karachi Stock Exchange, Handbook of statistics on Pakistan Economy, Economic Survey of Pakistan and International Financial Statistics (IFS). Two Stage Least Square (2-SLS) Method was applied in the study.  Results show that, export demand decreases with increase in Real Effective Exchange Rate. Insignificant relationship was found between the demand of Pakistani exports and export price variable and nominal exchange rate. The study also found positive and significant association between the demand of Pakistani export and World Income. Keywords: Export Growth, Foreign Direct Investment, Two Stage Least Square JEL Classifications: F13, F14, O1

The Determinants of Corporate Dividend Policy: An Investigation of Pakistani Banking Industry

The paper investigates the impact of different firm specific factors on the dividend policy of companies by selecting a sample of 18 banks listed in KSE for the period 2006-2011. The dependent variable is dividend policy where as explanatory variables include, firm size and risk, profitability, firm’s growth and leverage. It was found that out of 18 banks 11 banks pay dividends whereas seven banks do not. The results have shown that the independent variables growth, profitability and firm size have positive coefficient of correlation when the dependent variable is dividend yield and Dividend Payout Ratio. However there is strong linear association between profitability and firm size with dividend policy but the variable growth rate has weak positive correlation with dividend policy. In contrast, the variables leverage and firm risk has inverse linear relationship with dividend policy. Banks that pay dividends were found, when we use method of correlation coefficient more profitable, stable and less risky as compare to banks that do not pay dividends. Keywords: Dividend Policy, Listed Banks, Pakista

How Firm Characteristics Affect Capital Structure in Banking and Insurance Sectors (The Case of Pakistan)

The paper provides further evidence of the capital structure theories pertaining to a developing country and tests the determinants of capital structure for the firms in the banking and insurance sectors of Pakistan, to find that financial pattern of firms in the two sectors follow which capital structure theory. We have found that both the Pecking order theory and Trade-off theory are pertinent theories to the companies’ capital structure in the two sectors, whereas there was little evidence to support the Agency cost theory. The sample consists of 22 banks and 24 insurance companies listed in the, "Karachi Stock Exchange", during 2002-2009. The research was conducted using secondary data sourced from the company’s annual reports and Karachi Stock Exchange. The variable debt ratio (leverage) was the dependent variable. While the explanatory variables were size, growth, liquidity, profitability, non-debt tax shield and tangibility of assets. We have used panal least square regression to determine the affect of firm level characteristics on capital structure. The variables profitability and liquidity were found to have negative impact on debt ratio, while size and growth were positively correlated. Whereas, tangibility has direct positive correlation with leverage in insurance sector but negative in banking sector. Keywords: capital structure, firm characteristics, KSE, pecking order theory, agency cost theory, trade-off theory

Corporate Governance and Financing Dicisions of Listed Firms in Pakistan

The purpose of the study is to explore the link between corporate governance mechanisms and firms financing decisions. We have selected 24 banks which were listed on the “Karachi Stock Exchange”, during the period of 2008-2012. The Ownership Concentration, composition and size of the board, and role duality were considered as independent corporate governance variables while firm specific control variables were size, liquidity, profitability and tangibility of assets. Debt ratio is taken as a dependent variable representing firm’s financing decision (capital structure). The results indicate that Ownership Concentration, Size of the board, and leverage are positively correlated. However no significant relationship was found between Board composition, CEO duality and capital structure. We use panal least square regression to determine the affect of corporate governance and firm level characteristics on capital structure. Keywords: Banking Sector, Capital Structure, Corporate Governanc

Agency cost, corporate governance and ownership structure: the case of Pakistan

The article attempts to investigate the role of ownership structure and corporate governance in mitigating agency cost in a sample of 50 firms selected on the basis of market capitalization from “Karachi Stock Exchange” during the period 2003 to 2006. We used the proxy asset utilisation ratio to measure agency cost. Multivariate fixed effect regression is used to analyze the data. The explanatory variables include director ownership, institutional ownership, external ownership, board size, CEO/Chair duality, remuneration structure and board independence. The results show that higher director and institutional ownership reduces the level of agency cost. Smaller sized boards also results in lowering agency cost. Board independence has positive association with asset utilisation ratio. The separation of the post of CEO and chairperson and higher remuneration lower agency cost

Effect of lipid-based nutrient supplement - medium quantity on reduction of stunting in children 6-23 Months of age in Sindh, Pakistan: A cluster randomized controlled trial (OR25-06-19)

Objectives: We evaluated the effectiveness of a locally produced lipid-based nutrient supplement - medium-quantity (LNS-MQ) known as Wawamum to prevent stunting in children 6–23 months of age in Thatta and Sujawal districts of Sindh province, Pakistan. Methods: A cluster randomized controlled trial was conducted and a total of 870 children between 6–18 months old were enrolled. Children in the intervention group received 50 grams/day of Wawamum for 6 months, while children in the control group received standard government health services, not including Wawamum. The primary outcome was stunting risk reduction among children 6–23 months of age. Results: Children who received Wawamum were found to have a significantly reduced risk of stunting (RR = 0.91, 95% CI; 0.88– 0.94, P \u3c 0.001) and wasting (RR = 0.78, 95% CI; 0.67–0.92, p0.004) as compared to children who received the standard government health services. A non-significant impact was observed on underweight (RR = 0.94, 95% CI; 0.85–1.04, p-0.241) in the intervention group compared to the control group. Statistically significant reduction in anaemia in the intervention group was also found as compared to the control group (RR = 0.97, 95% CI; 0.94–0.99, p-0.008). The reduction in risk of severe anaemia was even more evident (RR = 0.45, 95% CI; 0.28–0.99, p-0.002) in the intervention group than in the control group. The mean compliance of Wawamum was 60.3% among children. Conclusions: The study confirmed the plausibility of achieving nutrition gains in the short-term with a locally produced LNS-MQ, known as Wawamum, through the primary health care system. The risk of stunting and wasting was reduced by 9% and 22%, respectively. The statistically significant reduction in risk of stunting, wasting and anaemia among children 6–23 months of age showed that an immediate improvement in these nutrition indicators is indeed possible. This approach can be scaled up in similar settings to achieve positive outcomes for nutrition and health. Funding Sources: World Health Organization