Do Liquidity and Financial Leverage Constrain the Impact of Firm Size and Dividend Payouts on Share Price in Emerging Economy

Research Article

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 [...]

Does Profitability affect Debt Ratio? Evidence from Vietnam Listed Firms

Research Article

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 [...]

Tourism Development and Real Effective Exchange Rate Revisited by Wavelet based Analysis: Evidence from France

Research Article

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 [...]

How does Interest rate effect Exchange rate of Pakistan. Evidence of ARDL Bound Testing Approach.

Research Article

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 [...]

Impact of Monetary Policy on Private Investment: Evidence from Pakistan

Research Article

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 [...]