This study investigates the role of firm specific factors, macroeconomic factors, and firms' heterogeneity in determining the debt levels of non-financial listed firms of Pakistan. Study implies static panel data modeling using pooled OLS and fixed effect regression as estimation techniques, with two different proxies of debt. Profitability, tangibility, and size of the firm appear to affect debt level significantly across different proxies and different estimation techniques. Interest rate and inflation are significant determinants of debt in fixed effect estimation. Study also confirms the existence of firm specific influence on debt.
This study investigates the existence of target capital structure and estimates speed of adjustment towards target capital structure for the non financial listed firms of Pakistan. The study also examines the firm level and macroeconomic factors determining the target capital structure. This study implies the dynamic panel data modeling using partial adjustment model. The study uses the Generalized Method of Moments (GMM) as the estimation technique. Firms in Pakistan are found to chase target debt ratios and make complete adjustment towards target in less than two years. Two firm level significant determinants of the target capital structure are profitability and tangibility. Macroeconomic factors such as GDP growth rate, inflation and interest rates are also found as the significant determinants of target debt.
The psychometric properties of the Absorptive capacity construct have been assessed in this study in the context of Pakistan. A total of 201 bank managers were included in the survey. Data analysis using the Smart PLC 3.0 revealed that the scale has satisfactory level of internal consistency reliability, conversion validity and discriminant validity. The findings refer to the fact that the ACAP construct could be responsively used in measuring the absorptive capacity in the banking sector of Pakistan.Growing Science Ltd. All rights reserved. 5
Controlling inflation is one of the biggest challenges faced by the macroeconomic policymakers in Pakistan. This research article is aimed at highlighting the main sources of inflation in the economy of Pakistan using an autoregressive distributed lag model for the period from 1980 to 2012. Findings of this study reveal that the one percent rise in the long run money supply, exchange rate, total reserve, and the gross national expenditure change inflation by 0.16, 2.12, 0.36, and 1.78 percent points respectively. The Error Correction model with negative sign remains statistically significant with approximate 81% speed of adjustment to restore the equilibrium in the long run, which shows the quick convergence.
This study investigates the postulated relationship between organizational culture and business performance in the banking sector in Pakistan. The necessity of the assessment of this relationship is driven on the basis of the past literature. For the present inquiry, using the survey method a total number of 265 questionnaires were received from middle managers in the big five banks in Pakistan. The population was drawn using stratified random sampling technique. The Smart-PLS 3.0 was used for data analysis due to its increasing popularity in presenting authentic calculations. The reporting of the results is based on Smart-PLS standards that is followed by two-step approach: first the assessment of reliability and validity is conducted using measurement model and secondly assessment of hypothesed relationship is done using structural model. This study underlines that organizational culture has significant relationship with business performance in the banking industry in Pakistan. In the last section the insights on future research are provided.
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