Introduction to the First Issue of Journal of Finance & Economic Research

Editorial

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” [...]

Bank Profitability and its Determinants in Pakistan: A Panel Data Analysis after Financial Crisis

Research Article

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 [...]

Critical review of Yasheng Huang's "Rethingking the Bejing Consensus"

Research Article

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 [...]

Resistance to Adopt Mobile Banking in a Developing Country: Evidence from Modified TAM

Research Article

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 [...]

Determinants of Inflation in Pakistan: Demand and Supply Side Analysis

Research Article

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. [...]

The Impact of Working Capital Management on Firms Profitability in Different Business Cycles: Evidence from Pakistan

Research Article

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 [...]