The present study fills the gap by investigating the post-adoption behavior of credit card users and it also explains the role of religiosity in the use of credit cards. A quantitative research approach was used. By using non-random sampling, a total of 385 data was gathered from the credit card holders worldwide. PLS-SEM techniques was used to estimate the model. Results show that secure transactions and rewards are two important determinants that increase the use of credit cards. Whereas, social influence is not a significant factor that influence credit card users. In addition, it is revealed that credit card is [...]

This study explores the impact of corporate social responsibility (CSR) and financial distress on the financial performance of companies in Pakistan's PSX 100 Index. With a focus on societal contributions and competitive advantage, the research addresses the limited CSR activities in Pakistan, emphasizing the necessity for comprehensive policies promoting social welfare and economic growth. Analyzing data from 48 companies of manufacturing and financial sectors, the study uncovers insights into Pakistani industries, emphasizing the effects of CSR on financial performance in the presence of financial distress. It underscores the importance of balancing financial risks with social responsibilities, contributing to the understanding [...]

The aim of this study was to investigate the relationship between the level of economic development, government effectiveness, and variations in financial intermediation spreads in 157 countries during the period from 2015 to 2021. The sample comprised countries from six different regions: Africa (43 countries), Asia (43 countries), Europe (42 countries), North America (15 countries), Oceania (3 countries), and South America (11 countries). These countries were categorized based on their levels of economic development, as defined by the International Monetary Fund (IMF). Banking spreads were determined as the difference between lending rates and deposit rates. Government effectiveness was assessed using [...]

The present research study examines the response of exchange rate changes on the trade balance of Pakistan, in its major trading partners e-i., United States, China, United Kingdom, Saudi Arabia, Japan, Germany, Malaysia, and Singapore. Data has been taken from the World Development Indicator and the International Trade Centre for the time 2003 to 2021. To estimate the data, we applied the Panel Autoregressive Distributed Lags model. The findings of the study show that in the short run, the Exchange rate, and Consumer Price Index don't seem to have a significant impact on the Trade Balance, while the GDP demonstrates [...]

The upsurge in the use of e-payment channels has shaped the activities in the banking sector in diverse ways, and as such has motivated a plethora of research interests. To join the ongoing debate, this study examined the response of credit to the private sector to the rise in the use of e-payment channels in Nigeria. The study used monthly series that covered the period from 2012M12 to 2022M12 under the VAR framework. Findings of the study revealed that credit to the private sector responded positively to shocks in both electronic bills payment and Point of Sale in all the [...]

This research investigates the impact of terrorism and the peace index on foreign direct investment (FDI) in South Asian countries, comprising eight economies. The study initially examines the individual effects of terrorism, GDP, inflation, population, and trade openness on FDI in the South Asian countries. Subsequently, it explores the influence of the peace index, GDP, inflation, population, and trade openness on FDI in the same economies. The data covers from 2011 to 2021. The panel-regression framework is employed as the primary technique for data analysis. Moreover, to examine the integration among the variables under consideration, Pedroni co-integration and FMOLS regression [...]

This study examines the effect of derivative usage on a firm's value in Pakistan. By the testing sample of 55 non-financial Pakistani firms from 2018 to 2022. This study aims to determine whether using derivatives increases and decreases company (firm) value. In multivariate tests, Tobin's Q was used as a proxy for firm value and found a positive relationship between firm value and hedging. On the other hand, there is little relation between the coefficients of hedging variables. Further, this study's test result shows. Thus, the impact of the study is consistent with MM theory. [...]

This study attempts to estimate the trade balance of Pakistan by developing a model that incorporates the three major approaches i.e., absorption, elasticities, and monetary for a time ranging from 1971 to 2021. Autoregressive Distributed lagged (ARDL) model is used to estimate the short-run and long-run response of GDP growth, broad money growth, and real effective exchange rate to trade balance. The results show that the real effective exchange rate is negatively related to the trade balance of Pakistan both in the long run and short run. This indicates that variation in the exchange rate does not improve the [...]

This study investigates the impact of IMF, State bank and FATF related announcements on the performance of PSX in Pakistan. As the investor are sensitive to the economics uncertainty and economic news. The barometers for stock market performance are KSE-100, KSE-30, and KMI-30 index returns for the period of approximately two business cycle ranges from 2013 to 2021 were taken. The analysis clearly shows that IMF announcements have an impact on the movement of KSE stocks. Because Pakistan is a highly leveraged country where the debt to GDP ratio is more than 80\% and above all, IMF is the main [...]

Nigeria's economy has been largely dependent on external borrowing, which has resulted in an increasing debt burden. Policymakers and economists have debated the influence of external debt on economic growth. Therefore, this study analyzed how external debt affects Nigeria's economic growth and explored the factors that determine external debt in the nation. The study utilizes an Ex Post Facto research design, and data from the Central Bank of Nigeria and the World Bank report from 1990 to 2020 was used. Vector error correction regression model, granger causality test, unit root and co-integration tests were employed for the analysis. Findings revealed [...]

The study investigated the effect of financial literacy on investment decisions among economics students in UEW. Overall, by adopting stratified sampling, 100 economics students were recruited for the study. To collect data closed-ended questionnaire was personally administered to the sampled students in the study area on the grounds of high anonymity and confidentiality. Data collected from respondents were analysed using SPSS. Findings from the binary logistic analysis shows that an increase in age of respondent (student) is likely to increase probability to invest. The probability of increment is 11.4% and it is significant at 5% significance level. Again, a [...]

The purpose of the study is investigated the efficiency of personal finance in terms of financial gain and advancement. Despite the fact that there is an abundance of research on personal finance literacy in the literature, there is a scarcity of research on the effect of personal finance on financial growth in the literature, particularly in Bangladesh. With the passage of time, the amount of national income and savings in the country has been steadily increasing throughout time. Despite the fact that its frequency has fluctuated, there have been no official studies conducted on the usefulness of personal finance in [...]

This paper investigates the elements that effects the individual's intention to use the Islamic banking services in Pakistan and, also assess the moderating effects of financial considerations (taken as perceived potential risk and perceived financial risk). The conceptual framework is developed using Theory of Planned Behaviour (TPB) model that links Islamic financial literacy (IFL), reputation, social and religious values with attitude and intention to use Islamic banking. The data has been collected from individuals who intend to use Islamic banking in the future. Findings reveal that IFL has a significant and positive impact on the attitude and further intention towards [...]

The contemporary business environment has superseded the retail and industrial economy due to the information-age economy's existence. The combination of knowledge and information provide practical benefits to the technology-driven and knowledge-intensive businesses. In this context, the firms heavily rely on efficient management practices such as financial management and knowledge capabilities like intellectual capital. The poor financial management practices and weak intellectual capital may result in business failure. Previous studies mainly focused on the relationship between intellectual capital and firm performance. However, intellectual capital as a predictor of financial management practices is a missing concept in the existing literature. Therefore, this [...]

The present paper aims to investigate the impact of financial leverage on the investment decisions of the automobile sector. Data was gathered from the top 10 publicly listed automotive companies of Pakistan during the time period of 2010 to 2020. By employing the robust random effect model technique, it is found out that financial leverage has a significant and positive impact on the investment decisions of the automotive firms. Besides, the other factors also influence the investment decisions of the firms. In the end, this paper suggests several substantive implications for automobile industry to improve their investment decisions. [...]

In this paper, we examine the conjecture that managerial earnings forecast error is associated with long-run price performance of IPOs. We find evidence that firms with high forecasting error performed worst in the three years after going public, while firms with conservative earnings forecast performed better in terms of stock price return. Our results show that the mean absolute forecast error of IPO profit forecasts in Bangladesh is 90\%, implying actual profits deviate 90\% from the forecasted profits in the IPO prospectuses. We find that in the long run, IPOs performed poorly when managers reported their earnings with overoptimisim in [...]

The aim of this paper is to study the nexus between banks' characteristics and economic growth in developing/underdeveloped countries that are members of the Organization of Islamic Cooperation (OIC). This paper applies a dynamic panel model for all conventional banks operating in OIC countries for the period 1989-2008. The main finding of the study is that banks' loans foster economic growth in the long run. In addition, banks' deposits, liquidity, foreign ownership, and size have a positive impact on economic growth and the results are significant at 1\% level. Similarly, stock market development and money supply play a vital role [...]

Remittance has been one of the most vital behind the economic development of Bangladesh. But due to the global pandemic, remittance flow all over the world was disrupted.In Bangladesh also, the dynamism of remittance was disturbed but later on with the advancement of time it began to regain its momentum during the global pandemic. The main purpose of this paper is to evaluate the changes in the dynamics of remittance in Bangladesh that have occurred during the pandemic period and to observe the differences with that of the pre-covid period. Moreover, the major sources and purposes of remittance inflow [...]

There are numerous aspects available that play a significant portrayal in responsible financial management behavior. The research paper focused on the financial management behavior of individuals young and adults of Pakistan and the impact of financial knowledge and psychological aspects (locus of control, herding behavior, and overconfidence) on financial management behavior directly and through financial attitude as mediator. We also explored how financial risk tolerance complements both these direct and indirect relationships. We proposed a theoretical framework modifying Bapat (2020) model by including other behavioral factors like herding behavior and overconfidence. We regulate the relation between independent and dependent variables, [...]

Family businesses are prominent and quite sound identity in every corner of the world. Dominant families have a solid motive for extracting personal advantages through minority shareholder resource exploitation and indulging in lessening the shareholders' wealth, especially in developing countries. An effective governance system guards against these activities while still influencing long-term results by eliminating these. This analysis broadens this focus by exploring the impact of independent directors, board scale, leverage, dividend delivery, and firm size on financial performance in Chinese listed family-owned businesses. Secondary data from released annual reports and governance practices reports was used to analyze 212 family-owned [...]

This study aimed to investigate the relationship between efficiency, measured by two different methods (Data Envelopment Analysis and Stochastic Frontier Analysis), and profitability of banks from Brazil. We analyzed a total of 47 banks that operated between the years of 2008 and 2015. The efficiency of institutions was measured using the Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) methodologies, based on economic and financial indicators. These indicators were calculated considering the approach of financial intermediation in order to measure the cost efficiency of banks. Subsequently, the scores found from the application of DEA and SFA were related to [...]

The purpose of this paper is to investigate the effects of personality traits on the perceived investment performance. Also, it assesses the mediating effects of social influence between personality traits and investment performance. The total sample of 277 are gathered from different individuals who have investment experience. PLS-SEM was used to test the hypothesis, findings suggest that personality traits have a positive and significant impact on perceived investment performance. It is also found that personality traits have positive and significant effect on social influence. Similarly, social influence has positive and significant effects on perceived investment performance. Besides the direct relationships, [...]

The biggest challenge for the Islamic banking industry in Pakistan is the scarcity of Shariah-compliant investment instruments and the absence of a lender of last resort (LOLR) facility for Islamic banks. Due to the problem of surplus liquidity, returns for Islamic banks in Pakistan are lower as compared to the conventional counterparts putting them at a competitive disadvantage with respect to their competitor conventional banks. Sukuk issuance is associated with a high cost of issuance and legal complexity, problems that could be solved by the application of blockchain technology. With the advent of cryptocurrency and developments around blockchain, technology experts, [...]

India being the top exporter of iron ores has the potential to be counted as one of the top exporters of steel if the steel companies follow optimal capital structure. On the contrary, there has been a history of financial issues such over/under-leverage in this sector for which the companies have not been able to perform as per their potential. Since neither India is a developed country nor its steel companies are financially self-sufficient, they are bound to depend on the external capital resulting the decision to be taken on the leverage ratio as even more crucial. Thus it is [...]

This paper attempted to analyze Pakistan export policy towards diversification. There are five measures of export diversification which is widely used by scholars for such analysis. The computational analysis reveals that export diversification always remains the major policy goal of Pakistan's trade policies since the decade of 1970s. However, the outcome of the policy could not be successful because export diversification indexes showed no significant changes. From the year 2000 government focuses on geographical export diversification and concentrated on preferential trade agreements, which could not show good result as well. This paper therefore suggests for commodity export diversification, preferably vertical [...]

This study investigates the role of risk behaviour in mediating the association between personality traits and investment intention and moderating role of financial literacy between the association of risk behaviour and investment intention within a sample of 284 students with finance background. Regression analyses was executed in a series to test the impact of independent variables on dependent variables. Along this, separate models for the mediator and for the moderator were appraised to get more vibrant results. Results suggest that individuals who are active, sympathy toward others, determined, well-organized are more willing toward Investment. Further results revealed that risk behaviour [...]

The objective of this study is to capture a nexus between economic stability and female unemployment in Pakistan. Since economic stability enables macro-economic objectives such as sustainable growth, it creates conductive environment for employment. This study used foreign direct investment (FDI), consumer price index (CPI), fiscal deficit, debt to GDP, interest rate and exchange rate regarded as indicators of economic stability. Whereas, time series data for the period from 1973 to 2015 has employed through Augmented Dickey Fuller and Phillip-Perron and unit roots tests are applied to check the stationarity of the data. It has found that data is a [...]

This study investigates the effect of investor sentiment on the stock market capitalization on different economic sectors of Karachi Stock Exchange of Pakistan by using the data from the year 1972-2014. The findings of EGARCH model suggest that the Power and Fuel sector and the Chemical sector are more affected by investor sentiment as compared to the other sectors due to the presence of big giants' firms of Pakistani market in those sectors. Furthermore, it is concluded that noise traders are irrational traders and they follow news and trends. Therefore, it is recommended that a number of different educational and [...]

The primary objective of this paper is to find out the Shariah Non-Compliance Risks (SNCRs) of Murabahah along with proposing its risk management system. As the activity of Shariah non-compliance is negligence or failure to comply with the Shariah rules and regulations as well as for some extent the breach of the law of the land. Hence, Identification, Monitoring, Control and Mitigation of SNCRs need to be undertaken sensitively otherwise the spirit and objective of Islamic banks (IBIs) will be no more different than conventional banking system. Moreover, failure in control and mitigation of Shariah non-compliance risks may render the [...]

Arrival of new information and dissemination of that information in asset prices is the determining force of asset returns. This paper studies the nexus between political and institutional corruption events with daily stock market returns by using Mega Corruption cases that were reported between January 2011 to February 2019. Therefore, to study how stock market returns react to these selected events, a mean adjusted model has been applied and a before and after, two and five day event window has been constructed. The results show that political and institutional corruption events have negative and significant impact on stock market returns. [...]

The European Sovereign Debt Crisis (ESDC) spanning from 2010 to 2012 results in the biggest recession since the Global financial crisis. European countries faced high government debt, rapidly rising yield spreads in government bond, and then the collapse of several European banks. The peripheral countries, Portugal, Ireland, Italy, Greece, and Spain are arguably the most unstable hosting a vast majority of financially troubled borrowers. This paper studies the implications of spillovers from affected local banking systems to other countries which have operations in these troubled economies. Using a comprehensive interbank and international syndicated loan data sample, we find evidence on [...]

This study investigates the presence of return and volatility spillover across EAGLEs stock markets, namely China, India, Indonesia, Russia, Brazil, Turkey and Mexico. A multivariate GARCH DCC and BEKK frameworks are employed by classifying the total sample (i.e. from January 2002 to February 2017) into three sub-periods according to the 2008 Global financial crisis. The result shows a significant and positive spillover effect among stock markets in the pre-crisis and post-crisis periods. The transmission of spillover from external markets intensely influenced by US stock market. Furthermore, strong inter-connection and channel of spread observed among EAGLEs stock market during the [...]

The derivatives market having a significant number of investors trading in futures contracts, is vulnerable to manipulation by some perpetrators. Protecting market participants from a prevalent manipulation called circular trading and providing a fair market has always been a challenging task for regulators. This kind of malpractice is represented by the trading behaviors of a group of investors who trade among themselves frequently to increase the price of the commodity and consequently make forged prosperity. This paper presents a network-based approach for detecting investors involved in circular trading in the futures market. This is done initially by constructing the daily [...]

Conditional conservatism is strict verification of losses than gains and in timely recognition of earnings by reflecting bad news more quickly than good news. This study inspects the relation of conditional conservatism and the cost of capital. This paper examines whether timely loss recognition in financial reporting lowers the cost of capital in China A-Share listed enterprises registered in Shenzhen and Shanghai stock exchanges. This research analyse the penal data over the period 2002 to 2013. We find that conservatism reduces the cost of capital by decreasing dividend payoff, and conservatism reduces the agency conflict by reducing dividend payoff. Paper [...]

This paper investigates the relationship among openness, government size and economic growth in Nigeria. The study employed the autoregressive distributed lag (ARDL) approach to cointegration to investigate the relationship among the variables. Empirical estimates revealed that in the long run, financial openness and trade openness had an insignificant negative effect on economic growth while physical capital and government size had significant positive and negative effect on economic growth, respectively. In the short run, financial openness, physical capital and government size had significant negative effects on economic growth while trade openness had significant positive effect on economic growth. The study concluded [...]

The paper aims to examine whether or not the balance of payments constrained growth model holds in Saudi Arabia. Also, the paper seeks to examine whether the balance of payments constrained growth model can predict Saudi Arabia's real GDP growth rate. In the long-run, the estimation results show that Saudi Arabia has an elastic income elasticity of demand for imports and an inelastic price elasticity of demand for imports. The McCombie test shows that the hypothetical income elasticity of demand for imports, which assumes balance of payments is in equilibrium, is not significantly different from the estimated income elasticity of [...]

The purpose of this paper is to examine empirically the impact of capital structure on financial performance of United Kingdom (UK) firms' during the period from 2006 to 2015. The investigation is performed using data of 739 UK very large and large listed companies on London Stock Exchange. The study uses four performance measures, including return on equity - ROE, return on assets - ROA, Tobin's Q and earnings per share EPS as dependent variables. The two capital structure ratios, namely long-term liabilities and short-term liabilities as well as growth rate of total assets are applied as independent variables. Size [...]

The present study intended to examine the impact of trade on energy consumption using data of four oil importing, heavily populated, and developing economies of Asia namely Pakistan, India, China and Bangladesh. The study covers the period of 1972 to 2011. The data was checked for the Cross-sectional Dependency using CD-test, then CIPS panel unit root test, Panel cointegration, and Pooled Mean Group estimates approaches were used. Empirical results confirmed the Long-run relationship between energy consumption and trade openness. This study confirms the influence of trade on energy consumption and that they are positively related. International trade increases the energy [...]

The current growth in per capita gross domestic product for countries within Southern Africa Development Community (SADC) has been below the target of 7% as provided by the sustainable development goals. This study uses panel co-integration techniques to establish the presence of non-linearity between long term growth and remittances, the substitutability or complementarity between foreign direct investment (FDI) and remittances as sources of long term growth. Annual data for 12 SADC member states for the period 1970 to 2014 was employed. Findings show that remittances promote long term growth and the connection between the two is nonlinear. Remittances positively affect [...]

The aim of this paper is to identify the influence degree among the main rating agencies and the other variables that affect rating changes for sub-sovereign entities in Germany, Austria, Belgium, France, Italy and Spain, using a total of 32 territorial entities between 1996 and 2012. Due to the shortage of European sub-sovereigns with more than 2 ratings, we estimated six binary probit regressions as a combination of 3 rating agencies two to two. We conclude that Fitch is the most influential agency on the other two rating agencies, but Standard and Poor's is the leader. There are other relevant [...]

It is with great pleasure that we introduce the first issue of Journal of Finance and Economic Research (JFER). Five papers have been selected for the first issue of the journal. The issue covers a diverse range of topics in the fields of finance and economics. The first article, titled ``Bank Profitability and its Determinants in Pakistan: A Panel Data Analysis after Financial Crisis'' by Muhammad Ali, discusses the internal and external determinants of the Pakistan banking sector, specifically after the recent financial crisis of 2008. The second article, titled ``Critical review of Yasheng Huang's - Rethingking the Bejing Consensus'' [...]

This study seeks to investigate the internal and external determinants of the Pakistan banking sector, specifically after the recent financial crisis of 2008. The sample data comprises of total 26 banks, which include 17 conventional, 5 Islamic and 4 public banks. The selected sample covers the period of five years from 2009 to 2013. A balanced panel data regression model has been used and considered return on assets (ROA) and return on equity (ROE) as an alternative of bank's profitability. The results of the study suggest that bank's profitability is significantly affected by its internal determinants while external determinants are [...]

The unprecedented economic growth enjoyed by the People's Republic of China over the last few decades has attracted the attention of academics and policy-makers all over the world. The developing countries are not an exception and, in fact, many in Asia, Africa and Latin America may see the China model as an example of new development formula more effective than free markets. However, MIT professor Yasheng Huang pointed out that these countries, as well as China itself, should reconsider their future decision. His paper examining the nature of China model with regards to the principles of the Beijing Consensus, though [...]

Mobile banking is an emerging concept with great potential but it is facing lower rate of diffusion. This study examines the perception and intention aspects of mobile banking adoption in Pakistan. Modified Technology Acceptance Model is used with the integration of four perceived risk dimensions (financial, privacy, time and security). A sample of valid 389 responses was drawn from the mobile subscribers of Karachi. The techniques of both exploratory and confirmatory factor analyses were employed to assess the reliability and validity of the measurement model. The structural equation modeling method was also applied to investigate the hypothetical framework with the [...]

In order to achieve the objective, time series data is collected over a period of 1972 to 2014. Auto-regressive and distributed lag model is utilized for long run and short run results. The demand side factors of inflation are population, roads and government expenditure while supply side factors are imports, government revenue, electricity generation and external debt. In the long run, inflation is caused by roads, government expenditure, imports, government revenue and external debt. There is decline in price level due to foreign direct investment, electricity generation and population in long run. [...]

This study investigates the influence of working capital management on firms' profitability under different business cycles in 65 non-financial firms listed on Karachi stock exchange of Pakistan by using the annual panel data for 10 years from the period of 2004 to 2013. We use Pedroni panel co-integration and Kao residual panel co-integration approaches to confirm the valid long run relationship between considered variables. The result of regression analysis indicates that the significant negative relationship exists between cash conversion cycle and its components with firms' profitability. Moreover, the business cycle affects the working capital management and firms' profitability relationship. It [...]

Cognitive radio (CR) is considered as an innovative approach for improving the utilization of a precious natural resource: the radio electromagnetic spectrum. The CR is an enhancement on the traditional software radio concept wherein the built on a software-defined radio is used which is aware of its environment and its capabilities, is able to independently modify its physical layer behavior, and is capable of following complex adaptation strategies with an objective of efficient utilization of the available radio spectrum. Following the general discussion of CR, this paper provides an overview of the future challenges and some possible solutions for the [...]

The purpose of the paper is to examine the efficiency of the banking sector in the MENA region from 2006-2016. It considered both endogenous and exogenous factors, noting governance, macroeconomic, and political risk. A stochastic frontier analysis was initially applied without considering the exogenous factors. The macro-determinants factors were examined in the second stage by examining their impact on cost and profit efficiency. The findings of the investigation indicate that cost efficiency is negatively impacted by government effectiveness as reflected by bureaucratic quality, while inflation and government effectiveness positively affect cost efficiency. On the other hand, political stability and the [...]

This study spotlights the price fluctuations between risk-factors and portfolio returns which motivates the study to scrutinize multifactor asset pricing models in India and Pakistan equity markets during January 2003 to December 2022. The study sample included monthly data from 250 non-financial enrolled enterprises in each market. The data was evaluated using the time-series Ordinary Least Square regression estimate approach. We find that market-factor performs significant contribution independently though augmenting the liquidity-factor which resultantly enhances an insignificant and tenuous impact in Pakistan equity market while investment-factor shows insignificant contribution independently though augmenting the liquidity-factor which resultantly enhances the impact positively [...]

Pakistan has observed up to 80\% increase in energy consumption during last 2 decades. There has been a dramatic surge in the industrial growth rate since 9/11, when foreign aid flooded the national economy. As a result of the highest power demand in the country's history, brought on by rapid industrialization and economic growth, 2007 marked the year when Pakistan experienced its largest power shortfall. This paper investigates the relationship of financial development (FD), economic growth (GDP), exports (EXP) and industrial growth (IND) with energy consumption (EC) in Pakistan. ARDL ECM and Bound testing have been used for this investigation [...]

Credit creation is a vital concern for any financial institution such as commercial banks that are chasing lending rigorously. Therefore, with the massive prevalence of unsecured lending in the last decade specifically, following the financial liberalization of the 2000s banks are also equally suffering the phenomena of hazardous recovery. For instance, the study intends to investigate the impact of non-performing loans on bank performance conventional and Islamic as well. The results of the study indicate that non-performing loans harm the overall performance of banks. The study also concludes that concerning credit recovery conventional banks are working well as compared to [...]

The present work investigates the relationship among financial inclusion, modernization, and energy performance in SCO member countries during the years 2011-2021. PCA is used to create composite indexes of financial inclusion, modernization, and energy performance. We used panel regression models that are both reliable and heteroscedasticity-consistent to look at the relationship among variables. The findings indicate that financial inclusion (FI) and modernization along with the increased FDI all appear to contribute to the energy performance in the SCO member countries. However, per capita GDP has a negative impact on energy performance. These results are unbiased and consistent with the robust [...]

This paper investigates the existence of pollution haven hypotheses (PHH) and the Environmental Kuznets Curve (EKC) for top five (China, Canada, Germany, Brazil, And France) carbon dioxide emitter countries during 1990-2018. The current study uses a panel autoregressive distributed lag (PARDL) technique to obtain empirical outcomes. The estimated results demonstrate the error-correction term's significant and adverse impact and the system's conversion to long-run equilibrium following a shock. The results of the short run and long term indicate that carbon dioxide emissions are positively associated with EC (energy consumption) and are statistically significant. For both the short run and long run [...]

Poor funding which incapacitated the Small and Medium Enterprises (SMEs) in Nigeria from assisting in creating employment opportunities motivated this work. This research investigated the effect of monetary policy instruments on SMEs financing by the Deposit Money Banks (DMBs) in Nigeria. It specifically evaluated how monetary policy instruments affect DMBs credit allocation to rural SMEs and also analysed the effect of total money supply on credit allocation to private sector. The study relied on secondary data from the Central Bank of Nigeria's Statistical bulletin and World Bank Financial Indicators with a duration of 30 years (1991- 2020). The data comprised [...]

Sustainability performance has become critical to every industry. The study examines the effect of Multiple debt finances on financial performance and GRI sustainability economic performance, measured through GRI 201-1, economic performance approach, for period from 2007-2020. The study applied mixed panel regression models to analyse the sample of 253 non-financial firms from diplomatic developing ties, namely Pakistan and India. The empirical findings shows that short-run debts have significant positive, but long-term and total debts have significant negative performance effects. However, firm size and asset tangibility have performance effects for non-financial firms of Pakistan and India. The study applied trade off [...]

The main aim of this research is to assess the performance of risk-appetite discriminated investors in the PSX listed fertilizers industry, using RSM and non-RSM, to maximize their portfolios' wealth. The research period (18 November 2015-June 30, 2021) is well characterized by the presence of two distinct volatility-related bull-regime and bear-regime, and it is divided into two groups: in-sample and out-sample. Throughout the out-sample time, different models are used to forecast the cumulative wealth of each investor. This cumulative wealth and the Sharpe ratios are calculated using the various models (RSM and Non-RSM). In stocks by using RSM the cumulated [...]

This study investigates whether Islamic finance has an association with United Nations' sustainable development goals (SDGs). Analyzing the extant literature, we find that Islamic finance and SDGs have a close relationship. The study also suggests the avenues where Islamic finance may contribute to the SDGs' achievement. These include financial sector stability, reducing vulnerability and risk, financial inclusion, infrastructure development and resolving environmental and social issues. Furthermore, the study develops a framework that links Maqasid-al-Shariah with SDGs. The study assists the policymakers to mobilize resources for achieving SDGs in developing economies, especially in those whose populations consist of a significant percentage [...]

This study examines how the financial services accessed and delivered through digitalization in Pakistan. Digital infrastructure refers to Internet, mobile phones, ATMs, tablets, chips, biometric devices and any other existing digital communication system. Currently, financial markets have become more reliant on digitalization as digital integrated financial markets are playing an important role in the development of financial sector, increase market competitions, performance of intermediaries and the efficiency in their daily operations. Based on secondary data and stakeholders' interviews, the study provides an overview of digital financial inclusion, explores the possible opportunities and key challenges to digital financial services in Pakistan. [...]

Despite the attainment of 87% electricity access, majority of the middle and low-income households in South Africa are faced with the huge challenge of transition from fuel wood to electricity for domestic activities especially cooking and heating. This article highlights the role of demographic variables in household decisions to use fuel wood instead of electricity in the Province of the Western Cape. We employed a quantitative cross-sectional survey design and a two-stage stratified random sampling technique to capture 1199 respondents using Enumeration Areas (EAs) demarcated to the province for the 2011 Census. Using chi-square and multivariate analysis, the outcome of [...]

This work investigates the impact of capital structure (CS) and corporate governance (CG) on dividend policy. The sample selected for this study includes all firms in the cement sector of the Pakistan stock exchange. The CS and CG are measured using the debt to equity ratio (DER) and managerial and institutional ownership mechanisms. The dividend policy (DP) is measure using the dividend payout ratio. The fixed effect model of regression is used for estimation and correlation matrix. The data normality, autocorrelation and multicollinearity are also used as a tool of analysis. The results show no outliers problem in the data [...]

In the current environment, firms' performance is reflected to be a significant aspect of their competitive edge. If the firm's performance cannot be improved, its competitive advantage might be decreased. It was noted in the literature that the performance of the Pakistani banking industry had decreased. Besides these concerns, there are numerous other factors that are related to declining performance. Among them, corporate social responsibility (CSR) is also included. Therefore, the objective of this study is to examine the moderating effect of the market environment on the relationship between corporate social responsibility and firm performance in the banking sector in [...]

In the context of the COVID-19’s outbreak and its implications for the financial sector, this study analyses the aspect of hedging and safe-haven under pandemic. Drawing on the daily data from 02 August 2019 to 17 April 2020, our key findings suggest that the contagious effects in financial assets’ returns significantly increased under COVID-19, indicating exacerbated market risk. The connectedness spiked in the middle of March, consistent with lockdown timings in major economies. The effect became severe with the WHO’s declaration of a pandemic, confirming negative news effects. The return connectedness suggests that COVID-19 has been a catalyst of contagious [...]

Experiences in many aspects are important in determining factor for the selection and promotion of employees, especially to managerial positions. However, empirical evidence on the contribution of CEO experiences to firm outcomes is limited. This paper attempts to address the literature gap by examining the impact of CEO experience on the firm financial performance of the listed firms in the financial sector. The study uses balanced panel data for six years from 2011 to 2016 in running regression analysis. Independent variables that include the CEO tenure and CEO multiple board memberships are considered in measuring the CEO experience. The result [...]

This study intends to observe to investigate the taxation impact on economic growth of Pakistan by using time series data from 1980 to 2015. This study explore the short \& long run effects of taxation on economic growth of Pakistan. Stationarity of the data checked through Augmented Dickey Fuller (ADF) test and then applied Autoregressive Distributed Lag (ARDL) model to check relations among the variables. Results of the study shows that taxes and exchange rate show negative but significant effect on economic growth in short run and long run. Life expectancy and trade liberalization have positive impact on economic growth [...]

The organizations consider earning as a key factor for their long term survival. If the organizations are not properly managed their organizations then their long term survival and competitive advantage could not be achieved. The current research studied the moderating impact of audit committee independence in the relationship between structure of board (size, independence, and duality of CEO) and real earnings management (REM) in the listed companies of Pakistan. Data was gathered from 150 firms' year wise observations of the industrial and service sectors of Pakistan stock exchange from the year 2010-2019. Using the fixed effect size approach, the findings [...]

Based on the theory of planned behavior, the study has examined the effects of risk tolerance, investment confidence, financial literacy, herding behavior on investment behavior with financial self-efficacy as an intervening variable among the investors of the stock market in Pakistan. The study has collected 350 sample responses from the investors of Pakistan Stock Exchange (PSX) using five-point Likert scale questionnaire. The study has employed PLS-SEM for data analysis using Smart PLS version 3.2.9. The results showed that investment confidence, and risk tolerance has positively significant relationship with financial self-efficacy while herding behavior has negatively significant relationship with [...]

Financial sustainability is a hot topic these days. Previous studies have explored the effects of socioeconomic characteristics on financial sustainability. However, this stream of research has paid little attention to psychological factors that may be related to financial sustainability of household. Therefore, the aim of the present study is to fill the research gap by examining the effects of financial attitudes, financial behavior and financial self-efficacy on financial sustainability. To meet the study objectives, data were collected from 284 employees working in Malaysian manufacturing sector. The collected data was then analyzed using the PLS-SEM approach. The results of this study [...]

This study aims to analyze the impact of oil price on stock market performance in top oil importing countries. We used balanced panel data over a sample period of 1995 to 2017 with annual frequency. The sample data was gathered from World Development Indicator (WDI), Global Financial Indicator (GFDI) and West Texas Intermediate (WTI). The sample data were analyzed using regression test under the assumptions of Hausman test. Findings obtained from the fixed effect model suggest that oil price has a negative and insignificant impact on stock market. Similarly, the exchange rate also showed negative and insignificant impact while inflation [...]

While an extensive amount of literature exists on the role of futures markets in influencing various dynamics of spot markets, the question whether they stabilize or destabilize the underlying spot market is unresolved. This study addresses this concern and investigates the impact of SSFs (particularly in terms of their destabilizing ability) on the underlying stocks. This study contributes to the literature of financial economics by modifying the famous Sentanan & Wadhwani (1992) model and adding trading volume as a control variable along with Generalized Error Distribution (GED) to capture leptokurtic nature of financial time series data for introduction episode of [...]

We investigate the impact of government borrowing from the scheduled banks on the credit to private sector in Pakistan, using monthly data from 1998:M6 to 2015:M12. We find that a one percentage point growth in the government borrowing leads to 8 basis points crowding out of the private sector credit in four months. Albeit small, there is negative impact of government borrowing on the private sector credit. The results remain unchanged even after implementation of the interest rate corridor since August 2009. [...]

The intention of this research article is to explore the accounting conservatism association with the cost of capital in Pakistani firms. For this examination, data collected from annual reports of 142 firms registered in Pakistan Stock Exchanges (PSX) for the period 2006 to 2011. This paper calculates the cost of capital by employing OJ-Model (2005) and accounting conservatism by using renowned Basu (1997) model. Current paper found a significant negative association of irregular measurement of earnings (bad news or c-score) and the cost of capital, which infers that conservative reporting in Pakistani firms reduces the cost of capital. Furthermore, this [...]

The present study aims to analyse the link between external debt, domestic debt and economic growth for Pakistan. To serve the purpose, the study uses the data for the time period from 1987 to 2018. Various econometric techniques i.e, fully modified ordinary least squares model, dynamic ordinary least squares model have been employed to estimate the proposed model. The empirical findings suggested that there exist a negative relationship between growth and debt whether it is external or domestic. The study confirmed the existence of debt overhang effect in the economy. It is suggested that Pakistan should reduce her reliance [...]

The purpose of this study is to investigate the impact of fiscal and monetary policies on stock market performance along with the identification of moderating role of political stability in Pakistan. Data of Pakistani stock exchange for last 35 years (1981 to 2016) has been analyzed by applying multiple analytical methods. Stationary analysis has been performed through Augmented Dickey Fuller (ADF) and Phillips-Perron (PP) unit root tests. Confirmation of long run relationship has been done through Johansen co-integration analysis. The study has employed ordinary least square method (OLS) of Hierarchical regression analysis to analyze the nature of relationship. Error correction [...]

This research aims to study the effects of geopolitical shocks on the equity market returns of BRIC economies. We used quantile on quantile regression (QQR) a non-parametric technique to capture the relationship between the said variables. The results confirmed a heterogeneous response of BRIC equity returns to their own country geopolitical risk. Brazilian and Russian funds were found to be more responsive to the geopolitical shocks, whereas, Indian and Chinese funds have shown resilience to the geopolitical uncertainties. The policy recommendations based on the findings are also discussed in the study. [...]

The present paper attempts to investigate the impact of some selected macroeconomic factors on the growth of Islamic Banking. An Islamic banking is one of the most rapidly growing segment of the economy nowadays particularly in Pakistan and other Islamic countries around the world. Therefore, the aim of our current study is to investigate whether macroeconomic variables influence the growth of Islamic banking in Pakistan or not. For that purpose, we used seven macroeconomic factors such as, gross domestic product, Muslim population, inflation rate, money supply, total savings, interest rates, and remittances. These variables are used because they directly or [...]

This study seeks to probe into the relationship between Corporate Governance (CG) and Earnings Management (EM). To fulfill the objective of the study, a panel data approach by considering the data of seventy four (74) non-financial firms listed at Karachi Stock Exchange (KSE) for the time period of nine years from 2005 to 2013 have been taken. Earnings management is calculated through discretionary accruals as a proxy by using Modified Jones Model. Panel data is analyzed for correlation analysis, assumptions of regression and Random-effects GLS regression by using STATA 13. In general results are in favor of the propositions that [...]

Currency devaluation plays an important role in reshaping trade balance. Counties like China and Malaysia have experienced export-led growth based on maintenance of their devalued currencies. This study provides the effect of recent currency devaluation of Pakistan on its trade with neighboring countries namely China, India, and Iran. The countries are of remarkable importance because the trade climate of the region is in transition in the essence of China-Pakistan Economic Corridor (CPEC). The paper adopts the elasticity approach to test the effect of devaluation by examining Marshall-Lerner condition. The study uses Panel data estimation models to determine import and export [...]

The primary value of a time series model lies in its ability to provide reliable approximations of the modelled variable, both in-sample (where data are used to estimate model parameters) and out-of-sample (where the model is updated with new information and produces forecasts). In this paper, an overview of the various models in the GARCH family is followed by their application in estimating the daily volatility of Citigroup Inc., a major player in the US. sub-prime mortgage crisis. Fitting these estimates to the ex-post realized volatility measure constructed from high-frequency returns provides superior goodness-of-t than tting them to the [...]

Positive illiquidity premium is documented to be linked with the illiquidity effect across global markets. This evidence is generally suggested through some asset pricing model, such as Acharya and Pedersen (2005) or others. Our study shows that the success of any such model in terms of magnitude of predicted risk premium is linked with a measure of illiquidity used in the study. The main implication of this evidence is that the variety of illiquidity related risk premiums can be reported for the same market, or for the number of markets. To elaborate this point, the test case of Australian stock [...]

The purpose of this study is to examine the impact of Islamic Banks and Takaful on economic growth of Pakistan. Using panel data from 2009 to 2014 of five Islamic Banks and five Takaful Companies, and taking Gross Domestic Product (GDP) as dependent variable, Total Deposits (TD) of Islamic Banks and Total contribution (TC) of Takaful companies as independent variables, analysis is done to find the impact of Islamic Banks and Takaful companies on the economic growth of the country. The study employs Fixed Effect Model for the econometric analysis. The study concluded that there is a significant role of [...]

The purpose of this study is to check the impact of financial literacy and behavioral biases on investor's portfolio diversification. Data were collected through questionnaire using sample size of 181 investors trading in Pakistan Stock Market. The results indicate that financial literacy has insignificant and positive influence on investor's portfolio diversification, behavioral biases such as familiarity and availability biases have insignificant and negative while overconfidence bias has significant negative impact on investor's portfolio diversification. Portfolio size also has significant positive impact on portfolio diversification. The findings suggest the implementation of financial literacy programs to facilitate the investors, trading in different [...]

This paper efforts to investigate the effect of semi-autonomous revenue authority (SARA) on the tax revenue and tax buoyancy of Pakistan. The current study uses the annual time series data spanning the period between 1972-2015 was used. After ensuring the stationary property of the data series and long-run relationship between variables, the regression analysis is employed to test the model. The results reveal that gross domestic product substantially increases the tax revenue collection. Moreover, the impact of SARA reforms is insignificant but positive in Pakistan. However, the cumulative effect of SARA reforms and real income becomes negative and insignificant on [...]

This study investigates the influence of liquidity position and financial leverage on the relationship of share price with firm size and dividend payouts in Pakistan by using the annual panel data of 356 non-financial firms listed on Karachi stock exchange from the period of 1999 to 2013. Pedroni panel cointegration approach confirms the valid long run relationship between considered variables. Results indicate that firm size and dividend payout have significant positive relationship with the firms' stock prices in long run. Results of causality test show the bidirectional causal relationship of firm size and dividend payout with stock prices in non-financial [...]

The main objective of this study is to examine the relationship between profitability and leverage of Vietnam listed corporations in the aftermath of the Global Financial Crisis (GFC). The study finds strong evidence that this relationship is negative. This conclusion is not affected by control variables as well as firm and year fixed effects. Particularly, it is found that the smaller the firms are, the more profound the relationship is. In line with many previous researches, this result is in favor of the Pecking order theory. In the Vietnamese context, small and profitable firms tend to have higher incentive to [...]

This research scrutinizes the empirical association of tourism development (TD) and real effective exchange rate (ER) in the high tourist arrival economy; France by wavelet transform context. This innovative technique allows the decomposition of time-sequence at diverse time frequencies. We applied continuous wavelet, wavelet coherence power spectrum and wavelet based Granger causality analysis to explore the connection between TD and ER, by using the monthly data from 1996 (1) -2015 (8). Outcomes show that there is a unidirectional causal impact from TD to ER in short run and also a bidirectional causal influence of TD on ER in medium and [...]

The purpose of this paper is to examine the long run as well as the short run relationship between exchange rate and interest rate in the context of Pakistan. Annual time series data have been used over the period of 1980 to 2015. Augmented Dickey-Fuller (ADF) unit root test, Johansen and Jeuuselius?s cointegration technique, auto regressive distributed lag (ARDL) bound testing model, error correction model (ECM), CUSUM and CUSUM of square tests for stability of model and, causality analysis in supporting variance decomposition and impulse response function are used to meet the research purpose. The study concluded the existence [...]

This study analyzes the impact of real discount rate, government investment and foreign direct investment on private investment in Pakistan by using annual time series data over the period of 1975-2015. The research used Augmented Dickey Fuller (ADF) unit root test, Johansen and Juuselieus's co-integration technique, Auto Regressive Distributed Lag (ARDL) bound testing model, Error Correction Model (ECM) and Causality Analysis to analyze the relationship. Results of ECM and cointegration analysis suggest that a significant negative short and long run relationship exists between private investment and real discounted rate of return. Whereas, causality analysis confirms the unidirectional causality exists between [...]