Search

The research is done with a purpose of increasing knowledge about the importance of working capital management. The research investigates impact of working capital management on the profitability of the firms along with the impact of the same on the fixed capital investment of the firm. The research also finds out the interrelationship of fixed capital investment and the profitability because the ultimate goal of the firms is to achieve maximum profitability at the lowest level of risk. The research has thoroughly examined impact of variables involved through ratio analysis and tools like regression and correlation. The data was gathered from Karachi Stock Exchange. The data gathering was archival and panel data was used as a method to extract the needed information. The 20 companies are selected from KSE-30 index because they were considered the best performing stocks in the market. The remaining 10 companies fall in the Banking sector which has a totally different perspective of debt and equity situation, thus, commercial banks are eliminated from the KSE-30 companies in this research. The results of the study shows that the working capital management does not affect the profitability of the firms in isolation, but there is a slight impact of managing the current assets and current liabilities. These should be accompanied by other variables as well to ensure profitability. The fixed capital investment has an extremely low, in fact negligible impact on profitability. The effect of working capital management varies among industries.

The question of why individual investors want dividends is investigated by submitting a structured questionnaire. The respondents indicate that they want dividends partly because the cost of cashing in dividends is lower than the cost of selling shares. Their answers provide strong confirmation for signaling and free cash flow theories. The behavioral finance theory related to stock dividend and cash dividend are also showing positive result. Finally our result indicates that individual investor use dividend as a large part of their consumption and they will not likely sell their stock just because the company fails to pay dividend on some occasion. The dissertation contains six chapters and each chapter is a continuation to the next chapter. Chapter 1 - Introduction gives a brief overview as to what the research is about. Chapter 2 - literature Review gives an extensive amount of background information collected through secondary data. Chapter 3 - Methodology explains what type of study this is and what method was used to collect data and how was it analyzed; what was the population and sample size. Chapter 4 - Analysis and Interpretation explains with the help of tables the data collected in this research and interprets the results as well. Chapter 5 – Frequency tables are provided for viewing the responses of the respondents. Finally Chapter 6 - Conclusions and Recommendations explain the results in more detail and sums up the entire dissertation.

The importance of internal risk rating system for an effective credit risk management system can not be overemphasized. The system demands contunuous support and involement of top management of the commercial banks, and the regulators. The attempt to develop robust internal risk rating systems is ongoing among commercial banks. This study was made to measure the quality of internal credit risk rating systems of commercial banks in Pakistan in terms of the various aspects of an internal rating system. To achieve this objective interviews of head of risk management of 10 commercial banks operating in Pakistan were conducted. The unstructured questions used in the interviews were transcribed and the technique of content analysis was used. The findings revealed that internal risk rating systems of commercial banks in Pakistan are generally strong but need improvement in a few aspects. The following areas of internal risk rating systems of commercial banks in Pakistan were found weak: 1. Environment specific to internal risk rating methodologies employed by the banks. 2. Environment specific to the documentation in the internal risk rating system. Other areas such as credit grades, use of qualitative and quantitative factors, methodology, internal risk rating policy, external credit rating, rating definitions, rating criteria, boards involvement were found in lines with the internal risk rating guidelines issued by the SBP. Key Words: Credit Risk, Credit Risk Management, Internal Risk Rating

Providing transparency in terms of financial accounting information is one of the objectives of corporate governance. Good accounting practices would result in accounting information that would be very useful to the stakeholders, hence good governance. Employment of effective accounting standards, such as IFRSs can be considered as a better accounting practice that are claimed to produce better disclosure and comparability of accounting information. This study was made to determine whether the companies listed in Pakistan complied with the requirements of IFRS, and whether the financial statements of those companies were harmonized. Thorough document analysis of the selected 51 companies was performed for the selected IFRSs. To determine the degree of harmonization of accounting practices among the companies in Pakistan C index was used. To test for the level of harmonization Chi square test was used. We concluded that, across the board, companies in Pakistan pursue and comply with the requirements of International financial reporting standards (IFRS). This is not the same for the degree of harmonization. Although for most of the IFRS selected degree of harmonization was positively tested there were a few exceptions. The implication is that the users of financial statements should first make adjustments for these items and then compare any aspect of financial condition or performances of the companies in Pakista - See more at: http://www.journalijar.com/article/4503/corporate-governance-and-accounting-practices-in-pakistan/#sthash.9ovp4lAu.dpuf

Consistent with models of risk return, we indicate that risk-taking behavior in the context of investment is affected by the risk of self-attitudes, and perceptions of risk and return expectations. Analysis of the determinants of financial risk with the behavior is also important for practitioners. This applies in particular because of the implementation of the markets of financial instruments directive. One implication of our study is that objective measures of risk, such as historical volatility and return, are not able to determine the risk-taking behavior almost as well as subjective measures, the risk perceptions and self-return, especially the historical returns seems to be a poor indicator of risk-taking behavior. Moreover, we find substantial differences between the self-perceptions of risk is inferred from the interval estimates and inferred from those of the Likert scales. Our results also indicate that, in line with theoretical models, behavioral biases such as overconfidence and excessive optimism significantly affect risk behavior. Those investment advisers can try to incorporate some of these results in the consultative processes to correct the erroneous beliefs of investors. This can be achieved through the strengthening of the patch from the financial literacy of clients as well as showing them that their investment is required is probably more serious than originally envisaged by them. We also find evidence of the expanding scope of content in the privacy of our data. Determinants of risk-taking behavior differ not only between the two areas of content and very clear, but even in the field of investments.

This research report focuses primarily on the profitability of “Technical Trading Rules” in the stock markets of Pakistan using Banking Sector listed in Karachi Stock Exchange as a case study including MCB, UBL, NBP, ABL, BOP, BAFL, Bank-Al-Habib, Bank AL-Faysal, Soneri Bank and Mezzan Bank. The ultimate objective of the study is to demonstrate that financial volatility can be recognized to the heterogeneity of traders with respect to trading strategies they used. Due to the restriction of time, this study considers only six technical trading and one-year data of the sample stocks. The tools include moving average, Bollinger band, Moving Average Convergence Divergence, Relative Strength Index, Money Flow Index and Support and Resistance Level. The Profitability of each trading rule has compared to the passive buy and hold strategy. Based on the profitability of these rules, Ranks has also assigned to each strategy that generate good profit. With the help of this research and the past strategies that had done on technical analysis, an ample evidences have proved that the technical analysis can be profitable in the stock markets. This research also includes and point out the stocks on which the analyzed tools are not appropriate or using them cause losses. This research has formulated all the calculation for average return and average profits, means researcher does not want the readers to expect strategies for high returns and profits behind this research. This study also presents some evidences of the role played by Big Investors in financial price determination.

Today, even the smallest of transactions, from fast food to digital content, are attracting Debit Check cardholders, and more and more merchants are opening their doors to this burgeoning payment method. The topic for this dissertation is to review the Debit Card marketplace, culminating in addressing the question “What is the scope of new Debit check cards?” The literature review indicates that there are developing opportunities within the marketplace that could offer the Debit Check Card product a prosperous future. This research was conducted to find out the future of Debit check cards in presence of other payment cards. The report examines the growth of Debit check cards within the larger Pakistan payments market and the factors contributing to this growth, including growing debit check card payment acceptance, consumer preference for debit, and the decline of paper check payments. The research methodology chosen to identify the views of the Debit Card Marketplace experts was the use of the interview, internet was also used for acquiring information, and in order to arrive at conclusion chi-square technique has been used. Following a critical analysis of the literature review and the market expert’s opinions, it is evident that the Debit Check Card product has an excellent opportunity to be fully assured of a sound future. However, to make full use of these opportunities, those involved in managing the product, including the card providers and card issuers, must ensure this full range of opportunities are transparently understood and successfully marketed.

This study analyzes and explores the Scope of Hedge Fund in Pakistan. Due to time constraint the research is limited to certain core point. Main focus is to find out the reason why Hedge fund is not started in Pakistan till yet, what are the major problems hedge fund has to encounter. What style and strategies will be successful in Pakistan and what are the main challenges that the hedge fund has to face in Pakistan. Due to shortage of primary data availability in references of Pakistan, the study is design in an exploratory form to get the maximum insight over the topic with in limited time period. Data is gathered through questionnaire and interviews both are structured. The respondents of the study are the top head of Investment banks as the investment bank play a big role in bringing Hedge funds in Pakistan economy and financial market. One interview is conducted with Dr. Ishrat Husain to find out the view of regulatory bodies over the issue. Through this research it is found that there are very few investment strategies/option available for hedge fund which can limit the huge investment style menu to very few options. And if we start hedge fund on this stage it would not as successful idea as it globally. So, it’s better to wait for same until the financial market increases or expands derivative instruments, till the government changes its policies regarding short selling and leverage and till we achieve more depth in bond and equity market. There is the need to increase volatility in the market. All these change might take the time period from three to four years. And if we starts hedge fund after making all these improvement hedge fund can do more than better this for the economy.