Static Trade-off theory or Pecking order theory which one suits best to the financial sector. Evidence from Pakistan.

This research is a contribution towards understanding the financial behavior of leasing sector of Pakistan for the period of 2001-2010. It is an attempt to investigate the key factors that influence the capital structure of leasing sector of Pakistan. Financial Leverage is taken as the dependent variable. Whereas, Size of Firm, Capital intensity; Liquidity, Profitability and Tangibility of assets are taken as independent variables. Empirically it has been found that size of assets has a negative and significant impact on leverage. It has also been found that Liquidity, Tangibility, profitability and capital intensity do not significantly influence Leverage. Hence, it is concluded that leasing sector of Pakistan is following Pecking Order Theory in terms of the Size of Firm, Tangibility, liquidity, profitability and capital intensity.   Key words: Leasing, financial sector, Karachi Stock Exchange, Tangibility, Pecking Order Theory, Static Order Theor

LUCRATIVENESS OF ISLAMIC VS CONVENTIONAL MUTUAL FUNDS IN PAKISTAN

The purpose of this study is to conduct a comparative riskadjusted performance, selectivity skills and market timing abilitiesanalysis of Islamic and Conventional mutual funds in Pakistan. Thestudy utilizes various risk-adjusted performance measures to evaluaterisk and return characteristics. The study also used techniqueproposed by (Treynor and Mazuy 1966) and (Henriksson and Merton1981) to appraise selectivity skills and timing abilities on the dataset ranging 2009-2013 of Islamic and Conventional mutual funds. Inthis study, four categories Aggressive Fixed Income, Asset Allocation,Equity and Balanced open end mutual funds are analysed. On thebasis of evidences found, only few mutual fund managers from Islamicand Conventional mutual funds hold better stock picking skills. Themutual fund managers of both Islamic and conventional mutual fundsare found to be a poor market timer in Pakistan. Islamic mutualfunds have earned better returns than conventional mutual funds.Therefore, risk adjusted performance of Islamic mutual funds is betterthan conventional mutual funds

The Claim of Mutual Managers Of Having Efficient Portfolio Than Capital Market, Is It True?

This study is about evaluating the level of risk in the returns of mutual funds in Pakistan. This study inherits pioneer characteristics because risk analysis has been done through traditional risk measures such as standard deviation, beta and alpha along with ARCH and GARCH models. The capital market portfolio, closed end mutual funds index and open end mutual funds index has been analyzed. The results show that capital market portfolio is more risky than open end mutual fund index. The results determined from statistical measures and ARCH and GARCH also show that closed end funds are more risky than open end and capital market. Mangers need to be more proactive to select superior stocks to avoid volatility in returns. Key words: Mutual Funds, Risk, Volatility, ARCH, GARC

Impact of financial development and credit information sharing on the use of trade credit: Empirical evidence from Pakistan

Pakistan is an emerging economy and characterized by a less developed financial system where trade credit is extensively used by listed manufacturing firms (LMFs). This study is focused to investigate the effect of financial development (FD) and credit information sharing (CIS) on the trade credit used by LMFs. For this purpose, dynamic panel model is estimated by applying system GMM (two-step) estimator on the financial data of 327 manufacturing firms listed in PSX Pakistan for the period 2005–2015. Results of the study reveal that FD and CIS have significant effect on the use of trade credit by LMFs in Pakistan. It is found that increase in financial depth increases the supply of funds to the private sector, and resultantly suppliers provide more trade credit to LMFs. While in response to increase in the lending rate, suppliers reduce the transfer of costly funds to LMFs through trade credit. Furthermore, negative relationship between CIS and the use of trade credit is in accordance with the substitution hypothesis. Results of the study have practical implications for the managers of firms and policy makers alike

Marshall-Lerner condition for South Asia: A panel study analysis

Fluctuations in exchange rate have threatened the stability of global financial system and have invited unwarranted currency war. South Asia has been experiencing a whopping trade deficit from the last many years. This study is an attempt to analyze the impact of exchange rate depreciation on trade balance by estimating Marshall-Lerner condition for South Asian countries. This study used the panel data of seven South Asian countries consisting of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri-Lanka for the period of 1993 to 2010. The study used random effects model (REM) to estimate the import and export demand elasticity. The study used Hausman Specification test to make a choice between fixed effects model and random effects model. The study has also used Breusch-Pagan test to make a choice between random effect model and simple panel ordinary least square model. The study finds that sum of import and export demand elasticity is less than one for South Asian countries, M-L condition does not fulfill, and that is why no improvement in trade balance has been seen in response to exchange rate depreciation. Moreover, the results suggest that some relevant policies like, export promotion measures and industrialization of import substitution must be taken into consideration to improve the trade balance. The study also suggested some future research directions at the end

How to establish corporate brand?

Technology is becoming easy to imitate day by day thus the companies involved in technology need to invest on the soft points like branding. This will give a competitive advantage over the competitors which is not possible to imitate. Thus the overall purpose of this thesis is to investigate that how a company evolved b2b selling can establish corporate brand. So three research questions were addressed: What are the major components of corporate brand building process? How to establish corporate brand image with the customer? How effective corporate communication can enhance the corporate brand? To reach the solution, Norden machinery as a case company was also studied. A theoretical framework was synthesized, based upon the different models and theories regarding the corporate brand building. The framework guided the authors through the entire research process. Our empirical findings shows a quest in Norden to develop a corporate brand and during the analysis we found that the  in some areas case company is following the components of brand building process that were described in the theoretical framework but there are some areas where the Norden has to improve as well. Thus based upon the analysis it is concluded that a company can establish a corporate brand by following the brand building components vision, culture, brand objectives, brand personality, brand essence, creating brand image and corporate communication

Examining the Factors Affecting Exports Performance: Empirical Evidence from Finland

The present research is an effort to diagnose the exigent determinants of exports in Finland by using time series data from 1993-2020. The study employs a vector-error correction model (VECM) by using Johansen technique for co-integration. The empirical findings of the co-integration indicate the existence of a significant relationship between exports and its various determinants in the long run. The results of VECM revealed that exchange rate and remittances are significant and positive determinants of Finland’s exports in the long run. In the meanwhile, the impact of the exchange rate and remittances is significant but negative on the exports of Finland in the short run. On the other hand, industrial growth and corruption are incorporated in the model as exogenous factors in the short-run dynamics. The impact of industrial growth is positive and significant on the export's performance while corruption is negatively affecting the exports of the Finnish economy. The study suggests a conducive and stable exchange rate policy and control of corruption to encourage exports

Nitric Oxide- and Sulfur-Mediated Reversal of Cadmium-Inhibited Photosynthetic Performance Involves Hydrogen Sulfide and Regulation of Nitrogen, Sulfur, and Antioxidant Metabolism in Mustard

This study aimed to test the role of hydrogen sulfide (H2S) in the responses regarding the nitric oxide- (NO) and sulfur (S)-mediated improvement in photosynthesis and growth under cadmium (Cd) stress in mustard (Brassica juncea L. cv. Giriraj), and integrate the mechanisms of S, nitrogen (N), and antioxidant metabolism. The plants grown with Cd (200 mg Cd kg−1 soil) exhibited reduced assimilation of S and N and diminished photosynthetic performance, which was associated with higher Cd accumulation-induced excess reactive oxygen species (ROS) production. The application of 100 μM of sodium nitroprusside (SNP, a NO donor) together with a more prominent concentration of S resulted in increased photosynthetic S- and N-use efficiency, production of non-protein thiols and phytochelatins, efficiency of enzymatic (superoxide dismutase, ascorbate peroxidase, and glutathione reductase), non-enzymatic antioxidants (ascorbate and glutathione) limiting Cd accumulation and, thus, reduced oxidative stress (superoxide radical, hydrogen peroxide, and thiobarbituric acid reactive species content). The benefit of NO together with S was manifested through a modulation in H2S production. The use of 100 μM of hypotaurine (HT; H2S scavenger) or 100 μM of cPTIO (2-4-carboxyphenyl-4,4,5,5-tetramethylimidazoline-1-oxyl-3-oxide) in plants treated with NO plus S reversed the action of NO plus S, with a higher reduction in photosynthesis and growth with the use of HT, suggesting that H2S plays a significant role in the NO- and S-mediated alleviation of Cd stress. The interplay of NO and ES with H2S may be used in augmenting the photosynthesis and growth of Cd-grown mustard plants

Corporate governance, financial constraints, and dividend policy: Evidence from Pakistan

AbstractInformation asymmetry between insiders and outsiders creates various issues for a firm, such as the agency problem where managers pursue their own interests even at the cost of the well-being of the firm’s shareholders, and probable external financial constraints where external investors discount risk by causing a surge in the cost of financing. Normally, a firm manages the issues of the agency problem and external financing constraints by omitting or initiating dividend payments. Therefore, this study investigated the impact of corporate governance on dividend policies in the presence of financial constraints using a sample of 139 non-financial firms listed on PSE, where a weak regulatory framework generates agency problems and the underdevelopment of the financial sector causes financing constraints for businesses. The results reveal that, in Pakistan, dividends are an Outcome of governance practices. As the quality of firm-level governance improves, shareholders are provided with the legal strength to ultimately force firm managers to pay dividends. Along with the agency problem, the availability of external financing is an important factor related to dividend payment decisions in Pakistan. When a company is confronted with agency problems and financial constraints simultaneously, managers try to avoid costly external financing rather than reducing the agency’s problem. The results of the study can be further refined by enhancing the study period and sample size. Furthermore, the work can be extended by classifying sample subjects to the nature of industry and group ownership

Nitric Oxide- and Sulfur-Mediated Reversal of Cadmium-Inhibited Photosynthetic Performance Involves Hydrogen Sulfide and Regulation of Nitrogen, Sulfur, and Antioxidant Metabolism in Mustard

This study aimed to test the role of hydrogen sulfide (H2S) in the responses regarding the nitric oxide- (NO) and sulfur (S)-mediated improvement in photosynthesis and growth under cadmium (Cd) stress in mustard (Brassica juncea L. cv. Giriraj), and integrate the mechanisms of S, nitrogen (N), and antioxidant metabolism. The plants grown with Cd (200 mg Cd kg−1 soil) exhibited reduced assimilation of S and N and diminished photosynthetic performance, which was associated with higher Cd accumulation-induced excess reactive oxygen species (ROS) production. The application of 100 μM of sodium nitroprusside (SNP, a NO donor) together with a more prominent concentration of S resulted in increased photosynthetic S- and N-use efficiency, production of non-protein thiols and phytochelatins, efficiency of enzymatic (superoxide dismutase, ascorbate peroxidase, and glutathione reductase), non-enzymatic antioxidants (ascorbate and glutathione) limiting Cd accumulation and, thus, reduced oxidative stress (superoxide radical, hydrogen peroxide, and thiobarbituric acid reactive species content). The benefit of NO together with S was manifested through a modulation in H2S production. The use of 100 μM of hypotaurine (HT; H2S scavenger) or 100 μM of cPTIO (2-4-carboxyphenyl-4,4,5,5-tetramethylimidazoline-1-oxyl-3-oxide) in plants treated with NO plus S reversed the action of NO plus S, with a higher reduction in photosynthesis and growth with the use of HT, suggesting that H2S plays a significant role in the NO- and S-mediated alleviation of Cd stress. The interplay of NO and ES with H2S may be used in augmenting the photosynthesis and growth of Cd-grown mustard plants