Impact of sovereign credit rating and country risk on bond market of Pakistan
Paradigms, 2017
This research investigates the impact of sovereign credit rating (SCR) and composite country risk... more This research investigates the impact of sovereign credit rating (SCR) and composite country risk on yield of Pakistan government bonds from period 1995 to 2015. Moderating variables added including Inflation rate, Current Account balance, GDP rate and Spot oil prices. Co-relation and Regression method used for analysis. From analysis of the first research question it's clear that bond yield has negative correlation with sovereign credit rating, inflation rate and current account balances. Which implies that when the value of all three variables including declined consequently value of bond yield jumped up. While Bond yield has positive correlation country risk. Which implies that if country is less risky, bond yield would be reduced. It must be noted that results are in line with many of researchers. While individual coefficients are concerned inflation rate has significant impact on bond yield of Pakistan. Country risk has also significant impact on bond yield of Pakistan. These results are in line with "Country Risk Report of Moody's" issued on 15 August 2106. There should be investigation about composite country risk (Pakistan placed at higher country risk ranking). What steps should be taken to improve the Sovereign credit rating of Pakistan? This topic would be interest of wider audience with respect to long term investments in bonds of Government of Pakistan. Because of higher risk of fraud in real estate market including scandals of DHA and poor industrial production, it's better for investor to invest in government bonds with minimum level of risk as compare to corporate bonds.
Journal of Research in Administrative Sciences, 2018
In the decades or so there is many global financial crises that capture the attention of corporat... more In the decades or so there is many global financial crises that capture the attention of corporate governance in the whole world it is moral duty conform by law and showing ethics.so the country like Pakistan a developing country can used as a tool for financial performance. The study shows the impact of corporate Governance on firm performance of modarba companies of Pakistan .we can take top 5 companies of the industry from the period of 2011 to 2015.we can take board size, CEO duality, board committees, and board independence, as independent variable and ROA and ROE as dependent variable. After the research of that we find that overall corporate governance variable have significant impact on firm performance. There is no relationship between board size and all dependent variable. Board independence has positive and strong relationship on all variable However, there is negative correlated between CEO duality and all dependent variable but significantly related to ROA
The economy as well as insurance industry of USA and UK face decline during last decade. The rese... more The economy as well as insurance industry of USA and UK face decline during last decade. The researcher compares two insurance industries, analysis possible determinants of financial performance during global financial crisis, collected 24 insurance companies' Quarterly data from 2007-16 and applied panel data techniques. Explanatory variables based on internal (Size of firm, liquidity, leverage and asset turnover) and external factors (GDP (Gross Domestic Product), CPI (Cost per Impression), interest rate and WTI (West Texas Intermediate)). Dependent variable: ROA (Return on Assets) and ROE (Return on Equity) (profitability indicators). This study concludes; In USA size of firm, liquidity, leverage, asset turnover, GDP and WTI have positive while CPI and interest rate have negative significant impact. In UK size of firm, liquidity, GDP, CPI and WTI have positive but leverage, asset turnover and interest rate has negative significant impact; US insurance is efficient as compare to UK. These findings will be helpful for insurance industries, government, policymakers and investors in taking decision and improving the performance.
International Journal of Academic Research in Accounting, Finance and Management Sciences, 2017
The purpose of this study is to examine the impact of sovereign credit rating changes on financia... more The purpose of this study is to examine the impact of sovereign credit rating changes on financial markets using database of two countries (Greece, Ireland) in the European union over the period March, 2008-Dec, 2015. By analyzing the influence of sovereign credit rating on bond market yield We also examine the correlation between sovereign credit rating and bond market yield of each country during crisis period. Quarterly basis data of all variables is used in the research. By using regression analysis with Durbin Watson test and Pearson correlation for each country financial markets the findings indicated that sovereign credit rating has a significant impact on bond markets. Sovereign ratings are negatively correlated with Bond yield in both countries. The finding summarized that credit rating has a major influence on financial markets during crisis period.
Effect of Corporate Governance on Firm Performance on Modarba Companies of Pakistan: A Case Study of Top 5 Companies, 2018
In the decades or so there is many global financial crises that capture the attention of corporat... more In the decades or so there is many global financial crises that capture the attention of corporate governance in the whole world it is moral duty conform by law and showing ethics.so the country like Pakistan a developing country can used as a tool for financial performance. The study shows the impact of corporate Governance on firm performance of modarba companies of Pakistan .we can take top 5 companies of the industry from the period of 2011 to 2015.we can take board size, CEO duality, board committees, and board independence, as independent variable and ROA and ROE as dependent variable. After the research of that we find that overall corporate governance variable have significant impact on firm performance. There is no relationship between board size and all dependent variable. Board independence has positive and strong relationship on all variable However, there is negative correlated between CEO duality and all dependent variable but significantly related to ROA
Implementation of Islamic Financial Contracts: A Qualitative Study on Pakistan Stock Market, 2018
A strong capital market based on the principles of Islam is still in transitional phase. Now a da... more A strong capital market based on the principles of Islam is still in transitional phase. Now a day almost every Muslim country has well-organized stock market but these markets are not working according to principles given by Islam. In the context of secondary market operational and informational efficiency are considered important. From perspective of Islam financial market, especially stock market should be socially efficient which means that working of stock market should promote social justice and welfare of society. Short selling is the most feature contract in traditional stock market. In such contract seller sells security that is not owned by him at the time of contract. Purpose of this study was to explore possibility of implementation of Islamic financial contracts in Pakistan stock market in order to eliminate element of short selling. Nature of this study was of qualitative in nature. Interviews were conducted with brokers, investors, and Sharia'a experts. Findings of this study revealed that we do not have any specific contract to overcome short selling but basic principle of every contract in Islam is possession of stock. Most of trading in Pakistan stock market do not fulfill this requirement However with proper dialogue process among stakeholders trading of Pakistan stock market can be made free of short selling.
THE IMPACT OF PROFITABILITY ON THE MARKET SIZE OF ISLAMIC BANKING IN PAKISTAN (A CASE STUDY OF PANEL DATA 2007-2016), 2018
The study describes the profitability and market size of Islamic Banking. The research focuses on... more The study describes the profitability and market size of Islamic Banking. The research focuses on the market size increases by profitability of Islamic banking. This study describes the unique area of market size of Islamic banking by using the profitability. The profitability ratios are Return on Asset and Return on Equity by using Gearing Ratio, Payout Ratio, Asset Turnover and EPS as variables to gauge the profitability either concurrently or partly on Islamic banking of Pakistan. ROA and ROE are dependent variables. Gearing Ratio, Payout Ratio, Asset Turnover, and EPS are independent variables. This study is a secondary base and the numerical value of the data is 100 observations. The selected sample size is ten Islamic Banks. The sample data periods selected from 2007 to 2016. The Panel unit root test is conducted for prerequisite of panel data. The balance panel data technique is applied. The overall
Sovereign Credit Rating Changes and Its Impact on Financial Markets of Europe during Debt Crisis Period in Greece and Ireland, 2017
The purpose of this study is to examine the impact of sovereign credit rating changes on financia... more The purpose of this study is to examine the impact of sovereign credit rating changes on financial markets using database of two countries (Greece, Ireland) in the European union over the period March, 2008-Dec, 2015. By analyzing the influence of sovereign credit rating on bond market yield We also examine the correlation between sovereign credit rating and bond market yield of each country during crisis period. Quarterly basis data of all variables is used in the research. By using regression analysis with Durbin Watson test and Pearson correlation for each country financial markets the findings indicated that sovereign credit rating has a significant impact on bond markets. Sovereign ratings are negatively correlated with Bond yield in both countries. The finding summarized that credit rating has a major influence on financial markets during crisis period.
Impact of sovereign credit rating and country risk on bond market of Pakistan, 2017
This research investigates the impact of sovereign credit rating (SCR) and composite country risk... more This research investigates the impact of sovereign credit rating (SCR) and composite country risk on yield of Pakistan government bonds from period 1995 to 2015. Moderating variables added including Inflation rate, Current Account balance, GDP rate and Spot oil prices. Co-relation and Regression method used for analysis.
Determinants of Financial Performance of Insurance Companies of USA and UK During Global Financial Crisis (2007 -2016), 2019
The economy as well as insurance industry of USA and UK face decline during last decade. The rese... more The economy as well as insurance industry of USA and UK face decline during last decade. The researcher compares two insurance industries, analysis possible determinants of financial performance during global financial crisis, collected 24 insurance companies' Quarterly data from 2007-16 and applied panel data techniques. Explanatory variables based on internal (Size of firm, liquidity, leverage and asset turnover) and external factors (GDP, CPI, interest rate and WTI). Dependent variable: ROA and ROE (profitability indicators). This study concludes; In USA size of firm, liquidity, leverage, asset turnover, GDP and WTI have positive while CPI and interest rate have negative significant impact. In UK size of firm, liquidity, GDP, CPI and WTI have positive but leverage, asset turnover and interest rate has negative significant impact; US insurance is efficient as compare to UK. These findings will be helpful for insurance industries, government, policymakers and investors in taking decision and improving the performance.
Determinants of Financial Performance of Insurance Companies of USA and UK During Global Financial Crisis (2007 -2016), 2019
The economy as well as insurance industry of USA and UK face decline during last decade. The rese... more The economy as well as insurance industry of USA and UK face decline during last decade. The researcher compares two insurance industries, analysis possible determinants of financial performance during global financial crisis, collected 24 insurance companies' Quarterly data from 2007-16 and applied panel data techniques. Explanatory variables based on internal (Size of firm, liquidity, leverage and asset turnover) and external factors (GDP, CPI, interest rate and WTI). Dependent variable: ROA and ROE (profitability indicators). This study concludes; In USA size of firm, liquidity, leverage, asset turnover, GDP and WTI have positive while CPI and interest rate have negative significant impact. In UK size of firm, liquidity, GDP, CPI and WTI have positive but leverage, asset turnover and interest rate has negative significant impact; US insurance is efficient as compare to UK. These findings will be helpful for insurance industries, government, policymakers and investors in taking decision and improving the performance.
Determinants of Financial Performance of Insurance Companies of USA and UK During Global Financial Crisis (2007 -2016), 2019
The economy as well as insurance industry of USA and UK face decline during last decade. The rese... more The economy as well as insurance industry of USA and UK face decline during last decade. The researcher compares two insurance industries, analysis possible determinants of financial performance during global financial crisis, collected 24 insurance companies' Quarterly data from 2007-16 and applied panel data techniques. Explanatory variables based on internal (Size of firm, liquidity, leverage and asset turnover) and external factors (GDP, CPI, interest rate and WTI). Dependent variable: ROA and ROE (profitability indicators). This study concludes; In USA size of firm, liquidity, leverage, asset turnover, GDP and WTI have positive while CPI and interest rate have negative significant impact. In UK size of firm, liquidity, GDP, CPI and WTI have positive but leverage, asset turnover and interest rate has negative significant impact; US insurance is efficient as compare to UK. These findings will be helpful for insurance industries, government, policymakers and investors in taking decision and improving the performance.
Impact of sovereign credit rating and country risk on bond market of Pakistan
Paradigms, 2017
This research investigates the impact of sovereign credit rating (SCR) and composite country risk... more This research investigates the impact of sovereign credit rating (SCR) and composite country risk on yield of Pakistan government bonds from period 1995 to 2015. Moderating variables added including Inflation rate, Current Account balance, GDP rate and Spot oil prices. Co-relation and Regression method used for analysis. From analysis of the first research question it's clear that bond yield has negative correlation with sovereign credit rating, inflation rate and current account balances. Which implies that when the value of all three variables including declined consequently value of bond yield jumped up. While Bond yield has positive correlation country risk. Which implies that if country is less risky, bond yield would be reduced. It must be noted that results are in line with many of researchers. While individual coefficients are concerned inflation rate has significant impact on bond yield of Pakistan. Country risk has also significant impact on bond yield of Pakistan. These results are in line with "Country Risk Report of Moody's" issued on 15 August 2106. There should be investigation about composite country risk (Pakistan placed at higher country risk ranking). What steps should be taken to improve the Sovereign credit rating of Pakistan? This topic would be interest of wider audience with respect to long term investments in bonds of Government of Pakistan. Because of higher risk of fraud in real estate market including scandals of DHA and poor industrial production, it's better for investor to invest in government bonds with minimum level of risk as compare to corporate bonds.
Journal of Research in Administrative Sciences, 2018
In the decades or so there is many global financial crises that capture the attention of corporat... more In the decades or so there is many global financial crises that capture the attention of corporate governance in the whole world it is moral duty conform by law and showing ethics.so the country like Pakistan a developing country can used as a tool for financial performance. The study shows the impact of corporate Governance on firm performance of modarba companies of Pakistan .we can take top 5 companies of the industry from the period of 2011 to 2015.we can take board size, CEO duality, board committees, and board independence, as independent variable and ROA and ROE as dependent variable. After the research of that we find that overall corporate governance variable have significant impact on firm performance. There is no relationship between board size and all dependent variable. Board independence has positive and strong relationship on all variable However, there is negative correlated between CEO duality and all dependent variable but significantly related to ROA
The economy as well as insurance industry of USA and UK face decline during last decade. The rese... more The economy as well as insurance industry of USA and UK face decline during last decade. The researcher compares two insurance industries, analysis possible determinants of financial performance during global financial crisis, collected 24 insurance companies' Quarterly data from 2007-16 and applied panel data techniques. Explanatory variables based on internal (Size of firm, liquidity, leverage and asset turnover) and external factors (GDP (Gross Domestic Product), CPI (Cost per Impression), interest rate and WTI (West Texas Intermediate)). Dependent variable: ROA (Return on Assets) and ROE (Return on Equity) (profitability indicators). This study concludes; In USA size of firm, liquidity, leverage, asset turnover, GDP and WTI have positive while CPI and interest rate have negative significant impact. In UK size of firm, liquidity, GDP, CPI and WTI have positive but leverage, asset turnover and interest rate has negative significant impact; US insurance is efficient as compare to UK. These findings will be helpful for insurance industries, government, policymakers and investors in taking decision and improving the performance.
International Journal of Academic Research in Accounting, Finance and Management Sciences, 2017
The purpose of this study is to examine the impact of sovereign credit rating changes on financia... more The purpose of this study is to examine the impact of sovereign credit rating changes on financial markets using database of two countries (Greece, Ireland) in the European union over the period March, 2008-Dec, 2015. By analyzing the influence of sovereign credit rating on bond market yield We also examine the correlation between sovereign credit rating and bond market yield of each country during crisis period. Quarterly basis data of all variables is used in the research. By using regression analysis with Durbin Watson test and Pearson correlation for each country financial markets the findings indicated that sovereign credit rating has a significant impact on bond markets. Sovereign ratings are negatively correlated with Bond yield in both countries. The finding summarized that credit rating has a major influence on financial markets during crisis period.
Effect of Corporate Governance on Firm Performance on Modarba Companies of Pakistan: A Case Study of Top 5 Companies, 2018
In the decades or so there is many global financial crises that capture the attention of corporat... more In the decades or so there is many global financial crises that capture the attention of corporate governance in the whole world it is moral duty conform by law and showing ethics.so the country like Pakistan a developing country can used as a tool for financial performance. The study shows the impact of corporate Governance on firm performance of modarba companies of Pakistan .we can take top 5 companies of the industry from the period of 2011 to 2015.we can take board size, CEO duality, board committees, and board independence, as independent variable and ROA and ROE as dependent variable. After the research of that we find that overall corporate governance variable have significant impact on firm performance. There is no relationship between board size and all dependent variable. Board independence has positive and strong relationship on all variable However, there is negative correlated between CEO duality and all dependent variable but significantly related to ROA
Implementation of Islamic Financial Contracts: A Qualitative Study on Pakistan Stock Market, 2018
A strong capital market based on the principles of Islam is still in transitional phase. Now a da... more A strong capital market based on the principles of Islam is still in transitional phase. Now a day almost every Muslim country has well-organized stock market but these markets are not working according to principles given by Islam. In the context of secondary market operational and informational efficiency are considered important. From perspective of Islam financial market, especially stock market should be socially efficient which means that working of stock market should promote social justice and welfare of society. Short selling is the most feature contract in traditional stock market. In such contract seller sells security that is not owned by him at the time of contract. Purpose of this study was to explore possibility of implementation of Islamic financial contracts in Pakistan stock market in order to eliminate element of short selling. Nature of this study was of qualitative in nature. Interviews were conducted with brokers, investors, and Sharia'a experts. Findings of this study revealed that we do not have any specific contract to overcome short selling but basic principle of every contract in Islam is possession of stock. Most of trading in Pakistan stock market do not fulfill this requirement However with proper dialogue process among stakeholders trading of Pakistan stock market can be made free of short selling.
THE IMPACT OF PROFITABILITY ON THE MARKET SIZE OF ISLAMIC BANKING IN PAKISTAN (A CASE STUDY OF PANEL DATA 2007-2016), 2018
The study describes the profitability and market size of Islamic Banking. The research focuses on... more The study describes the profitability and market size of Islamic Banking. The research focuses on the market size increases by profitability of Islamic banking. This study describes the unique area of market size of Islamic banking by using the profitability. The profitability ratios are Return on Asset and Return on Equity by using Gearing Ratio, Payout Ratio, Asset Turnover and EPS as variables to gauge the profitability either concurrently or partly on Islamic banking of Pakistan. ROA and ROE are dependent variables. Gearing Ratio, Payout Ratio, Asset Turnover, and EPS are independent variables. This study is a secondary base and the numerical value of the data is 100 observations. The selected sample size is ten Islamic Banks. The sample data periods selected from 2007 to 2016. The Panel unit root test is conducted for prerequisite of panel data. The balance panel data technique is applied. The overall
Sovereign Credit Rating Changes and Its Impact on Financial Markets of Europe during Debt Crisis Period in Greece and Ireland, 2017
The purpose of this study is to examine the impact of sovereign credit rating changes on financia... more The purpose of this study is to examine the impact of sovereign credit rating changes on financial markets using database of two countries (Greece, Ireland) in the European union over the period March, 2008-Dec, 2015. By analyzing the influence of sovereign credit rating on bond market yield We also examine the correlation between sovereign credit rating and bond market yield of each country during crisis period. Quarterly basis data of all variables is used in the research. By using regression analysis with Durbin Watson test and Pearson correlation for each country financial markets the findings indicated that sovereign credit rating has a significant impact on bond markets. Sovereign ratings are negatively correlated with Bond yield in both countries. The finding summarized that credit rating has a major influence on financial markets during crisis period.
Impact of sovereign credit rating and country risk on bond market of Pakistan, 2017
This research investigates the impact of sovereign credit rating (SCR) and composite country risk... more This research investigates the impact of sovereign credit rating (SCR) and composite country risk on yield of Pakistan government bonds from period 1995 to 2015. Moderating variables added including Inflation rate, Current Account balance, GDP rate and Spot oil prices. Co-relation and Regression method used for analysis.
Determinants of Financial Performance of Insurance Companies of USA and UK During Global Financial Crisis (2007 -2016), 2019
The economy as well as insurance industry of USA and UK face decline during last decade. The rese... more The economy as well as insurance industry of USA and UK face decline during last decade. The researcher compares two insurance industries, analysis possible determinants of financial performance during global financial crisis, collected 24 insurance companies' Quarterly data from 2007-16 and applied panel data techniques. Explanatory variables based on internal (Size of firm, liquidity, leverage and asset turnover) and external factors (GDP, CPI, interest rate and WTI). Dependent variable: ROA and ROE (profitability indicators). This study concludes; In USA size of firm, liquidity, leverage, asset turnover, GDP and WTI have positive while CPI and interest rate have negative significant impact. In UK size of firm, liquidity, GDP, CPI and WTI have positive but leverage, asset turnover and interest rate has negative significant impact; US insurance is efficient as compare to UK. These findings will be helpful for insurance industries, government, policymakers and investors in taking decision and improving the performance.
Determinants of Financial Performance of Insurance Companies of USA and UK During Global Financial Crisis (2007 -2016), 2019
The economy as well as insurance industry of USA and UK face decline during last decade. The rese... more The economy as well as insurance industry of USA and UK face decline during last decade. The researcher compares two insurance industries, analysis possible determinants of financial performance during global financial crisis, collected 24 insurance companies' Quarterly data from 2007-16 and applied panel data techniques. Explanatory variables based on internal (Size of firm, liquidity, leverage and asset turnover) and external factors (GDP, CPI, interest rate and WTI). Dependent variable: ROA and ROE (profitability indicators). This study concludes; In USA size of firm, liquidity, leverage, asset turnover, GDP and WTI have positive while CPI and interest rate have negative significant impact. In UK size of firm, liquidity, GDP, CPI and WTI have positive but leverage, asset turnover and interest rate has negative significant impact; US insurance is efficient as compare to UK. These findings will be helpful for insurance industries, government, policymakers and investors in taking decision and improving the performance.
Determinants of Financial Performance of Insurance Companies of USA and UK During Global Financial Crisis (2007 -2016), 2019
The economy as well as insurance industry of USA and UK face decline during last decade. The rese... more The economy as well as insurance industry of USA and UK face decline during last decade. The researcher compares two insurance industries, analysis possible determinants of financial performance during global financial crisis, collected 24 insurance companies' Quarterly data from 2007-16 and applied panel data techniques. Explanatory variables based on internal (Size of firm, liquidity, leverage and asset turnover) and external factors (GDP, CPI, interest rate and WTI). Dependent variable: ROA and ROE (profitability indicators). This study concludes; In USA size of firm, liquidity, leverage, asset turnover, GDP and WTI have positive while CPI and interest rate have negative significant impact. In UK size of firm, liquidity, GDP, CPI and WTI have positive but leverage, asset turnover and interest rate has negative significant impact; US insurance is efficient as compare to UK. These findings will be helpful for insurance industries, government, policymakers and investors in taking decision and improving the performance.
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