In the corporate finance, liquidity management and profitability are widely debated areas. Liquidity management plays a dynamic role in determining the effectiveness of the banking sector with potential influence in smooth functioning. The objective of the study is to scrutinize the impact of liquidity management on the profitability of Pakistani banks, covering period of 2006-2016. The secondary financial data obtained from audited annual financial reports were analyzed using descriptive and inferential statistics. Return on assets (ROA) and Return on equity (ROE) have been used as measures of bank's profitability while as, Current Ratio (CR) advances to deposit ratio (ADR), Cash deposit ratio (CDR) and Deposit Assets Ratio (DAR) represented liquidity management. The result demonstrates that ADR, CDR and DAR
Choosing the appropriate mix of various short and long-term sources of funds, stands among ISSN 2162-3082 2017 the acute decisions to be taken by management of the firms to form elementary suitability for investment and other decisions. Literature is lacking in consensus pertinent to impact of capital structure on financial performance of the firms. This study intends to investigate the impact of capital structure on financial performance of fuel and energy sector of Pakistan taking into account secondary data from 2006-14. Empirical results of renowned econometric model multiple regression revealed that there is a significant negative impact of capital structure on ROA and ROE of firms in fuel & energy sector of Pakistan, while EPS is least driven by capital structure parameters, only the size has significant positive bearing on EPS. The research findings provide suggestions to policy makers and administrators to rely on equity financing rather debt ethos in order to mitigate the default risk exposure.
International Journal of Accounting and Financial Reporting
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