A developed banking sector provides the impetus for the economy to grow. However, in order to maintain financial stability and sustain negative shocks, it is important to understand the factors that influence the profitability of banks. The aim of the study was to analyse the effect of internal and external factors on the profitability of banks in Pakistan for the period 2007-2015. Fixed effects model was used to analyse the effect of internal and external factors on the profitability of banks in Pakistan. The findings of the study revealed that among internal factors only bank size and asset composition significantly influences the profitability of banks whereas in the external determinants only real interest rates and GDP growth rates has a significant effect on the profitability of banks.

The purpose of this study is to investigate the effect of firm structure (whether diversified or focused firms) on corporate cash holding. Samples of 80 non-financial companies were selected including diversified and focused firms which were listed on Karachi stock exchange for a period 7 years from 2006 to 2013. These diversified and focused firms were selected on the basis of equal proportionate method. Random effect model and descriptive statistics were used for the analysis of these variables. The results of these models showed that there is negative and significant effect of firm structure on corporate cash holding. We also find negative and significant relationship of leverage and Networking capital with the corporate cash holdings and the relation between growth opportunities and corporate cash holding was examined to be positive and significant. We also find a negative and insignificant relationship between firm size and corporate cash holding. The descriptive statistics showed that there was significant difference between the cash holding of diversified and focused firms. The diversified firms keep a smaller amount of cash as compare to the single segment companies (focused firms), which is in support of the trade-off theory. This paper contributes to current literatures with regard to organization structure (whether diversified or focused firms) on cash holding in a developing economy like Pakistan.

The purpose of this Mutual funds have become an attractive investment option particularly for small investors to diversify their portfolio. The aim of this study is to explore the determinants of close ended mutual funds return in Pakistan. For this purpose secondary data is used from 2007-2013. Multiple regression analysis is carried out to measure the determinants (fund size, liquidity, expense ratio, and fund turnover) of fund return. The findings of the study revealed that expense ratio and fund turnover significantly influences the return of the fund. Moreover, fund size is positively related to fund return whereas expense ratio, fund turnover and liquidity are inversely related to fund return.

Instruments of monetary and fiscal policy are beyond the control of the management but they do influence the short-term as well as long-term decision making of the firm. Empirical studies with respect to their effect on financing decisions of the firm are somewhat under researched particularly in the context of developing countries. The aim of the study was to analyse the effect of these instruments on the financing decisions of the non-financial firms listed on PSX for the period 2008-2015. Fixed effect model was used to analyse the effect of instruments of monetary policy and fiscal policy on the financing decisions of firms. Based on sample of 338 firms, the findings of the study revealed that instruments of monetary policy and fiscal policy do influence the financing decisions of the firm. M2, tax revenue and government debt has a significant effect on the debt ratio of listed firms whereas real interest rate is insignificantly related. Moreover, the relationship between real interest rate, M2 and tax revenue and debt ratio is negative whereas in case of government debt it is positive.