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Abdullah Sahi

London South Bank University, Business Administration, Graduate Student

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Faculty member of TheUCP Business School. Ten years of Teaching and Research Experience. Graduated from London South Bank University, UK. Thirteen research articles published and Three conference papers in the domain of Corporate Governance,Fixed Income ,International finance and Corporate Finance and Derivatives, performance of insurance companies and global financial crisis.
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Andrew W Wilkins

Goldsmiths, University of London

Universiti Tunku Abdul Rahman

Newcastle University

Flavio Inocencio

Coventry University

Bruno Amaral Machado

Centro Universitario de Brasilia - UniCEUB

Dr. Suhail H . Serbaya

King AbdulAziz University (KAU) Jeddah, Saudi Arabia

Rafael Cabeza Gordillo

Universidad Simón Bolívar (Barranquilla)

Jomo Kenyatta University of Agriculture and Technology

Profesor Dr. Razli Bin Che Razak

Universiti Malaysia Kelantan (UMK)

Philippe Ravanas

Columbia College Chicago

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Papers by Abdullah Sahi

Factors Affecting the Crude Oil Prices Volatility: A Case Study of the USA, China, Japan, Germany and India

Annals of Financial Economics, Sep 29, 2023

A Sectoral Perspective for Unveiling Earnings Manipulation: Evidence from Pakistani Non-Financial Firms

by Audit and Accounting Review and Abdullah Sahi

The major issue with the financial statement is earnings management (EM). The problem has a long ... more The major issue with the financial statement is earnings management (EM). The problem has a long history of documentation in accounting theory and practice. Researchers have employed a variety of models to identify earnings manipulation (EMN) in different economies. However, the Pakistani setting has been the focus of very few studies on this issue. The current study is an attempt to determine whether EMN exists in any of Pakistan's listed non-financial sectors. The study employed data collected from seven primary industries listed on the Pakistan Stock Exchange (PSX) between 2012 and 2019. These industries included cement, chemical, food, oil and gas, manufacturing, sugar, and textile. The study utilized Beneish's (1999) M-Score Model (MSM) to identify the existence of EM. According to the findings, 46% of the Pakistani non-financial companies listed on PSX were engaged in EM. Moreover, the sample chosen also appeared suitable for use with Beneish's MSM. The conclusion indicated that MSM can be successfully used by businesses to determine EMN. The results can be used by bankers and investors to identify the instances of EMN in financial statements. Moreover, the results can also be used to improve the caliber of financial reporting. Academics and professionals interested in predicting future profits should also take note of the outcomes.

The impact of Corporate Governance on voluntary disclosure of R&D expenditure of USA Pharmaceutical firms

Zenodo (CERN European Organization for Nuclear Research), Aug 15, 2022

This research examines the impact of corporate governance on voluntary disclosure of R&D expendit... more This research examines the impact of corporate governance on voluntary disclosure of R&D expenditure of USA pharmaceutical firms. Most of the previous studies focus on the relationship between corporate governance and performance of the firms but this research explores the impact of corporate governance on voluntary disclosure of R&D expenditure of USA Pharmaceutical firms as well as the impact of firm size, leverage, firm profitability, liquidity and firm growth on research and development expenditure of Pharmaceutical firms' of USA. The sample of this study consists of forty-three USA pharmaceutical listed firms from 2017 to 2020. To examine research questions, the methodology is based on Generalize method of movement (GMM). Results showed that overall R&D disclosure has a significant impact on corporate governance variables including audit committee quality, managerial ownership, role duality, and board independence. Furthermore, research also found that firm profitability, firm size, and as well as liquidity ratio have positive and significant impacts on R&D development expenditure.

Analysis of the Relationship Between Corporate Governance Mechanisms and Performance of A Firm: A Study on Pakistan’s Chemical Industry

Journal of Research in Administrative Sciences, 2020

Corporate governance is one of the major topics under discussion from the last two decades. The k... more Corporate governance is one of the major topics under discussion from the last two decades. The knowledge is increasing with every passing day as new scandal keeps appearing in the financial world and so are the weaknesses in the CG mechanisms. This study aims to find a relationship between two major elements of CG mechanisms including (board size & composition and audit committee) and firm performance (ROE and profit margin). The sample size consists of 33 chemical companies listed on the Karachi stock exchange from 2005 to 2015. The results show a positive relationship between the variables tested in the study. The results also confirm that the theoretical notion of firms with good financial results and performance are those with better corporate governance practices.

The impact of Corporate Governance on voluntary disclosure of R&D expenditure of USA Pharmaceutical firms

Zenodo (CERN European Organization for Nuclear Research), Aug 15, 2022

Audit and Accounting Review (AAR

Examining the Relationship Between Managerial Ability and Credit Ratings: A Case Study of USA Oil and Gas Sectors , 2023

The current study aims to investigate the association between a firm's managerial ability and its... more The current study aims to investigate the association between a firm's managerial ability and its issued credit rating. For this purpose, Twelve companies in the USA oil and gas sectors have been selected based on their different work streams. A two-stage derived model of data envelopment analysis and the Tobit model is used for the measurement of firm's managerial ability in this paper. For data envelopment analysis, cost of goods sold, fixed assets, general and administration expenses and intangible assets are used as input variable and operating revenue is used as output variable. To retain residual as firm's managerial ability, Tobit model is estimated by using firm size, stock returns, leverage, operating cash flows and firm age as variables. The value of correlation test between credit ratings and firm's managerial ability is 0.163, which indicates that there is positive linear relationship. Moreover, it is identified that an associated managerial ability is increased by 100%, credit rating also increased by 16.3%. The relationship between managerial ability and credit rating is significant and positive for USA oil and gas sectors from the period of 2006-2020. While regression analysis for all oil and gas companies of the USA indicateds that 2.7% changes in credit rating occurred due to managerial ability. Therefore, this study suggests to enhance the managerial ability of firms, which leads to higher credit rating and consequently less cost of debt for their debt instruments.

Impact of Bank Capital and Monetary policy on Lending Behavior of USA Banking Sector Before and After Global Financial Crises

The Journal of Educational Paradigms, 2021

This study investigates the impact of bank capital, capital structure and monetary policy on the ... more This study investigates the impact of bank capital, capital structure and monetary policy on the lending behavior of USA banks before and after global financial crises. For this purpose, sample data is collected from the annual reports of top ten banks of USA from 2001 to 2017. A panel unit root is applied to check the stationarity of variables. In order to explain the impact of bank capital, capital structure and monetary policy on lending behavior of USA banks, fixed effect and random effect model have been used. The sample data has been divided into two sets. First data set is taken from 2001 to 2008 before financial crises. Second data set is taken from 2009 to 2017 after financial crises and all above tests have been applied on these data sets. Furthermore, in order to measure the lending behavior three types of lending have been selected lending to consumers, lending to real estate and lending to commercial & industrial sector of USA banks. In order to get the better picture o...

Determinants of Financial Performance of Insurance Companies of USA and UK During Global Financial Crisis (2007 -2016

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.

Performance of Islamic and Conventional Mutual Funds in Pakistan: Evidence from Open Ended Mutual Funds

Impact of Bank Capital and Monetary policy on Lending Behavior of USA Banking Sector Before and After Global Financial Crises

This study investigates the impact of bank capital, capital structure and monetary policy on the ... more This study investigates the impact of bank capital, capital structure and monetary policy on the lending behavior of USA banks before and after global financial crises. For this purpose, sample data is collected from the annual reports of top ten banks of USA from 2001 to 2017. A panel unit root is applied to check the stationarity of variables. In order to explain the impact of bank capital, capital structure and monetary policy on lending behavior of USA banks, fixed effect and random effect model have been used. The sample data has been divided into two sets. First data set is taken from 2001 to 2008 before financial crises. Second data set is taken from 2009 to 2017 after financial crises and all above tests have been applied on these data sets. Furthermore, in order to measure the lending behavior three types of lending have been selected lending to consumers, lending to real estate and lending to commercial & industrial sector of USA banks. In order to get the better picture of lending behavior of USA banks before and after financial crises: paired sample T-test has been applied on the data of lending before and after financial crises. Results of paired sample T-test showed there is significant difference in lending to consumers, lending to commercial & industrial sector and lending to real estate before and after financial crises of USA banks because of the implementation of Basel III. So, we accept the alternative hypothesis for our second research question. Findings suggested that impact of bank capital, capital structure and monetary policy has significant impact on the lending behavior before and after the global financial crises with the positive change of sixteen percent in R-squared value. So, we accept the alternative hypothesis for our first research question. The results of coefficients shows that before financial crises (2001 to 2008) discounted interest rates have more significant impact on the lending made to consumers but after the global financial crises (2009 to 2017) discounted interest rates, capital structure and tier 1 capital ratio have more significant impact on the loan made to consumers. The results of coefficients shows that before the financial crises (2001 to 2008) discounted interest rates have more significant impact on the loan made to commercial and industrial sector but after the global financial crises (2009 to 2017) discounted interest rates, capital structure and tier 1 capital ratio have more significant impact on the loan made to commercial and industrial sector. The results of coefficients shows that before financial crises (2001 to 2008) discounted interest rates have more significant impact on the loan made to real estate but after the global financial crises (2009 to 2017) discounted interest rates and capital structure have more significant impact on the loan made to real estate. Findings of our study are aligned with Swamy (2015), who investigated the impact of bank capital on lending spreads and found that increase in capital ratio of banks would also increase their lending spreads. Our results are also matched with the findings of (Kosak et al., 2015), those concluded that capital structure significantly affect the loan growth of banks. Our results are also aligned with Chami & Cosimano (2010), they found that change in monetary policy due to Basel Accord would lead to a change in bank capital and bank loans.

Impact of Internal and External Debts on Financial Markets

The empirical study explores the Impact of external debts, internal debts, foreign direct investm... more The empirical study explores the Impact of external debts, internal debts, foreign direct investments, Crude oil prices and debt servicing on Stock markets of Pakistan by using time series data from 1994 to 2018 on annual basis. Purpose of study is to investigate impact of debts on Pakistan stock market. External debts, internal debts, foreign direct investments, Crude oil and debt servicing are independent variables while Stock market capitalization is dependent variable. In this empirical study regression analysis model is applied. Model summary results shows that there is a significant impact of independent variables on dependent variable which give acceptance to alternative hypothesis. Value of R indicates that there is strong correlation of 97% between independent and dependent variables. Value of R square that shows that independent variable is strongly explaining variance in dependent variable by 95%. In model summery Durban Watson test shows value of 2.10 which indicates no auto correlation between variables. Correlation coefficients results show that there is a short term positive and significant impact of internal debts on stock market. Foreign direct investments also showed positive and significant impact on stock market capitalization while external debts servicing and crude oil have insignificant negative impact on stock market capitalization. This research will play a very beneficial role for developing countries and will attract wide audience including economists, equity analysts, investors and institutional investors to analyze their investment risk. This empirical research shows insignificant impact of external debts on stock market of Pakistan. Which implies that governments of developing countries can obtain internal debts on easier financial terms; which enhance liquidity and spending of developing countries. Consequently, more spending on infrastructure, power projects and availability of seaports and dry ports enhances the performance of business. Therefore, internal debt contributes toward the growth of financial market of Pakistan.

An Analysis of Stock and Bond Returns Causality: Case Study of Emerging and Developed Countries

The purpose of this research is to examine the causality of bond returns of five year and stock r... more The purpose of this research is to examine the causality of bond returns of five year and stock returns in the case of two developed and two emerging countries USA, Germany, China and Russia respectively. For empirical analysis data from the year 2008 to the year 2017 has been used. The stationarity of the data has been checked with the help of ADF unit root test. The Johansen method has been applied for checking the long term correlation between the variables. Vector error correction methods have been applied for checking the causality between the variables. The results of unit root tests show that all variables are stationary at first difference. Vector error correction results shows in developed countries USA and Germany long and short term causality exists between bond returns of five year and stock returns, in emerging nations only China shows long and short term casualty exists between bond return of five year and stock return whereas in case of Russia short term and long term causality do not exist. This study found that in developing nation causality exists so investor can invest in stock as well as bond, where in emerging countries specially Russia investment in bond prefer, China is very fast growing nation that's why investment in bonds or stock both is preferable in case of China.

Managing exchange rate risk

Procurement Management ppts by abdullah sahi

Sovereign Credit Rating Changes and Its Impact on Financial Markets of Europe during Debt Crisis Period in Greece and Ireland

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

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

Determinants of Financial Performance of Insurance Companies of USA and UK during Global Financial Crisis (2007-2016)

International Journal of Accounting Research, 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 (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.

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&#39;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 &quot;Country Risk Report of Moody&#39;s&quot; 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&#39;s better for investor to invest in government bonds with minimum level of risk as compare to corporate bonds.

Impact of Internal and External Debts on Financial Markets

Impact of Internal and external debts on Financial Markets, 2019

The empirical study explores the Impact of external debts, internal debts, foreign direct investm... more The empirical study explores the Impact of external debts, internal debts, foreign direct investments, Crude oil prices and debt servicing on Stock markets of Pakistan by using time series data from 1994 to 2018 on annual basis. Purpose of study is to investigate impact of debts on Pakistan stock market. External debts, internal debts, foreign direct investments, Crude oil and debt servicing are independent variables while Stock market capitalization is dependent variable. In this empirical study regression analysis model is applied. Model summary results shows that there is a significant impact of independent variables on dependent variable which give acceptance to alternative hypothesis. Value of R indicates that there is strong correlation of 97% between independent and dependent variables. Value of R square that shows that independent variable is strongly explaining variance in dependent variable by 95%. In model summery Durban Watson test shows value of 2.10 which indicates no auto correlation between variables. Correlation coefficients results show that there is a short term positive and significant impact of internal debts on stock market. Foreign direct investments also showed positive and significant impact on stock market capitalization while external debts servicing and crude oil have insignificant negative impact on stock market capitalization. This research will play a very beneficial role for developing countries and will attract wide audience including economists, equity analysts, investors and institutional investors to analyze their investment risk. This empirical research shows insignificant impact of external debts on stock market of Pakistan. Which implies that governments of developing countries can obtain internal debts on easier financial terms; which enhance liquidity and spending of developing countries. Consequently, more spending on infrastructure, power projects and availability of seaports and dry ports enhances the performance of business. Therefore, internal debt contributes toward the growth of financial market of Pakistan.

Credit Risk Management (Essentials of FRM, Karen)

Factors Affecting the Crude Oil Prices Volatility: A Case Study of the USA, China, Japan, Germany and India

Annals of Financial Economics, Sep 29, 2023

A Sectoral Perspective for Unveiling Earnings Manipulation: Evidence from Pakistani Non-Financial Firms

by Audit and Accounting Review and Abdullah Sahi

The major issue with the financial statement is earnings management (EM). The problem has a long ... more The major issue with the financial statement is earnings management (EM). The problem has a long history of documentation in accounting theory and practice. Researchers have employed a variety of models to identify earnings manipulation (EMN) in different economies. However, the Pakistani setting has been the focus of very few studies on this issue. The current study is an attempt to determine whether EMN exists in any of Pakistan's listed non-financial sectors. The study employed data collected from seven primary industries listed on the Pakistan Stock Exchange (PSX) between 2012 and 2019. These industries included cement, chemical, food, oil and gas, manufacturing, sugar, and textile. The study utilized Beneish's (1999) M-Score Model (MSM) to identify the existence of EM. According to the findings, 46% of the Pakistani non-financial companies listed on PSX were engaged in EM. Moreover, the sample chosen also appeared suitable for use with Beneish's MSM. The conclusion indicated that MSM can be successfully used by businesses to determine EMN. The results can be used by bankers and investors to identify the instances of EMN in financial statements. Moreover, the results can also be used to improve the caliber of financial reporting. Academics and professionals interested in predicting future profits should also take note of the outcomes.

The impact of Corporate Governance on voluntary disclosure of R&D expenditure of USA Pharmaceutical firms

Zenodo (CERN European Organization for Nuclear Research), Aug 15, 2022

This research examines the impact of corporate governance on voluntary disclosure of R&D expendit... more This research examines the impact of corporate governance on voluntary disclosure of R&D expenditure of USA pharmaceutical firms. Most of the previous studies focus on the relationship between corporate governance and performance of the firms but this research explores the impact of corporate governance on voluntary disclosure of R&D expenditure of USA Pharmaceutical firms as well as the impact of firm size, leverage, firm profitability, liquidity and firm growth on research and development expenditure of Pharmaceutical firms' of USA. The sample of this study consists of forty-three USA pharmaceutical listed firms from 2017 to 2020. To examine research questions, the methodology is based on Generalize method of movement (GMM). Results showed that overall R&D disclosure has a significant impact on corporate governance variables including audit committee quality, managerial ownership, role duality, and board independence. Furthermore, research also found that firm profitability, firm size, and as well as liquidity ratio have positive and significant impacts on R&D development expenditure.

Analysis of the Relationship Between Corporate Governance Mechanisms and Performance of A Firm: A Study on Pakistan’s Chemical Industry

Journal of Research in Administrative Sciences, 2020

Corporate governance is one of the major topics under discussion from the last two decades. The k... more Corporate governance is one of the major topics under discussion from the last two decades. The knowledge is increasing with every passing day as new scandal keeps appearing in the financial world and so are the weaknesses in the CG mechanisms. This study aims to find a relationship between two major elements of CG mechanisms including (board size & composition and audit committee) and firm performance (ROE and profit margin). The sample size consists of 33 chemical companies listed on the Karachi stock exchange from 2005 to 2015. The results show a positive relationship between the variables tested in the study. The results also confirm that the theoretical notion of firms with good financial results and performance are those with better corporate governance practices.

The impact of Corporate Governance on voluntary disclosure of R&D expenditure of USA Pharmaceutical firms

Zenodo (CERN European Organization for Nuclear Research), Aug 15, 2022

Audit and Accounting Review (AAR

Examining the Relationship Between Managerial Ability and Credit Ratings: A Case Study of USA Oil and Gas Sectors , 2023

The current study aims to investigate the association between a firm's managerial ability and its... more The current study aims to investigate the association between a firm's managerial ability and its issued credit rating. For this purpose, Twelve companies in the USA oil and gas sectors have been selected based on their different work streams. A two-stage derived model of data envelopment analysis and the Tobit model is used for the measurement of firm's managerial ability in this paper. For data envelopment analysis, cost of goods sold, fixed assets, general and administration expenses and intangible assets are used as input variable and operating revenue is used as output variable. To retain residual as firm's managerial ability, Tobit model is estimated by using firm size, stock returns, leverage, operating cash flows and firm age as variables. The value of correlation test between credit ratings and firm's managerial ability is 0.163, which indicates that there is positive linear relationship. Moreover, it is identified that an associated managerial ability is increased by 100%, credit rating also increased by 16.3%. The relationship between managerial ability and credit rating is significant and positive for USA oil and gas sectors from the period of 2006-2020. While regression analysis for all oil and gas companies of the USA indicateds that 2.7% changes in credit rating occurred due to managerial ability. Therefore, this study suggests to enhance the managerial ability of firms, which leads to higher credit rating and consequently less cost of debt for their debt instruments.

Impact of Bank Capital and Monetary policy on Lending Behavior of USA Banking Sector Before and After Global Financial Crises

The Journal of Educational Paradigms, 2021

This study investigates the impact of bank capital, capital structure and monetary policy on the ... more This study investigates the impact of bank capital, capital structure and monetary policy on the lending behavior of USA banks before and after global financial crises. For this purpose, sample data is collected from the annual reports of top ten banks of USA from 2001 to 2017. A panel unit root is applied to check the stationarity of variables. In order to explain the impact of bank capital, capital structure and monetary policy on lending behavior of USA banks, fixed effect and random effect model have been used. The sample data has been divided into two sets. First data set is taken from 2001 to 2008 before financial crises. Second data set is taken from 2009 to 2017 after financial crises and all above tests have been applied on these data sets. Furthermore, in order to measure the lending behavior three types of lending have been selected lending to consumers, lending to real estate and lending to commercial & industrial sector of USA banks. In order to get the better picture o...

Determinants of Financial Performance of Insurance Companies of USA and UK During Global Financial Crisis (2007 -2016

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.

Performance of Islamic and Conventional Mutual Funds in Pakistan: Evidence from Open Ended Mutual Funds

Impact of Bank Capital and Monetary policy on Lending Behavior of USA Banking Sector Before and After Global Financial Crises

This study investigates the impact of bank capital, capital structure and monetary policy on the ... more This study investigates the impact of bank capital, capital structure and monetary policy on the lending behavior of USA banks before and after global financial crises. For this purpose, sample data is collected from the annual reports of top ten banks of USA from 2001 to 2017. A panel unit root is applied to check the stationarity of variables. In order to explain the impact of bank capital, capital structure and monetary policy on lending behavior of USA banks, fixed effect and random effect model have been used. The sample data has been divided into two sets. First data set is taken from 2001 to 2008 before financial crises. Second data set is taken from 2009 to 2017 after financial crises and all above tests have been applied on these data sets. Furthermore, in order to measure the lending behavior three types of lending have been selected lending to consumers, lending to real estate and lending to commercial & industrial sector of USA banks. In order to get the better picture of lending behavior of USA banks before and after financial crises: paired sample T-test has been applied on the data of lending before and after financial crises. Results of paired sample T-test showed there is significant difference in lending to consumers, lending to commercial & industrial sector and lending to real estate before and after financial crises of USA banks because of the implementation of Basel III. So, we accept the alternative hypothesis for our second research question. Findings suggested that impact of bank capital, capital structure and monetary policy has significant impact on the lending behavior before and after the global financial crises with the positive change of sixteen percent in R-squared value. So, we accept the alternative hypothesis for our first research question. The results of coefficients shows that before financial crises (2001 to 2008) discounted interest rates have more significant impact on the lending made to consumers but after the global financial crises (2009 to 2017) discounted interest rates, capital structure and tier 1 capital ratio have more significant impact on the loan made to consumers. The results of coefficients shows that before the financial crises (2001 to 2008) discounted interest rates have more significant impact on the loan made to commercial and industrial sector but after the global financial crises (2009 to 2017) discounted interest rates, capital structure and tier 1 capital ratio have more significant impact on the loan made to commercial and industrial sector. The results of coefficients shows that before financial crises (2001 to 2008) discounted interest rates have more significant impact on the loan made to real estate but after the global financial crises (2009 to 2017) discounted interest rates and capital structure have more significant impact on the loan made to real estate. Findings of our study are aligned with Swamy (2015), who investigated the impact of bank capital on lending spreads and found that increase in capital ratio of banks would also increase their lending spreads. Our results are also matched with the findings of (Kosak et al., 2015), those concluded that capital structure significantly affect the loan growth of banks. Our results are also aligned with Chami & Cosimano (2010), they found that change in monetary policy due to Basel Accord would lead to a change in bank capital and bank loans.

Impact of Internal and External Debts on Financial Markets

The empirical study explores the Impact of external debts, internal debts, foreign direct investm... more The empirical study explores the Impact of external debts, internal debts, foreign direct investments, Crude oil prices and debt servicing on Stock markets of Pakistan by using time series data from 1994 to 2018 on annual basis. Purpose of study is to investigate impact of debts on Pakistan stock market. External debts, internal debts, foreign direct investments, Crude oil and debt servicing are independent variables while Stock market capitalization is dependent variable. In this empirical study regression analysis model is applied. Model summary results shows that there is a significant impact of independent variables on dependent variable which give acceptance to alternative hypothesis. Value of R indicates that there is strong correlation of 97% between independent and dependent variables. Value of R square that shows that independent variable is strongly explaining variance in dependent variable by 95%. In model summery Durban Watson test shows value of 2.10 which indicates no auto correlation between variables. Correlation coefficients results show that there is a short term positive and significant impact of internal debts on stock market. Foreign direct investments also showed positive and significant impact on stock market capitalization while external debts servicing and crude oil have insignificant negative impact on stock market capitalization. This research will play a very beneficial role for developing countries and will attract wide audience including economists, equity analysts, investors and institutional investors to analyze their investment risk. This empirical research shows insignificant impact of external debts on stock market of Pakistan. Which implies that governments of developing countries can obtain internal debts on easier financial terms; which enhance liquidity and spending of developing countries. Consequently, more spending on infrastructure, power projects and availability of seaports and dry ports enhances the performance of business. Therefore, internal debt contributes toward the growth of financial market of Pakistan.

An Analysis of Stock and Bond Returns Causality: Case Study of Emerging and Developed Countries

The purpose of this research is to examine the causality of bond returns of five year and stock r... more The purpose of this research is to examine the causality of bond returns of five year and stock returns in the case of two developed and two emerging countries USA, Germany, China and Russia respectively. For empirical analysis data from the year 2008 to the year 2017 has been used. The stationarity of the data has been checked with the help of ADF unit root test. The Johansen method has been applied for checking the long term correlation between the variables. Vector error correction methods have been applied for checking the causality between the variables. The results of unit root tests show that all variables are stationary at first difference. Vector error correction results shows in developed countries USA and Germany long and short term causality exists between bond returns of five year and stock returns, in emerging nations only China shows long and short term casualty exists between bond return of five year and stock return whereas in case of Russia short term and long term causality do not exist. This study found that in developing nation causality exists so investor can invest in stock as well as bond, where in emerging countries specially Russia investment in bond prefer, China is very fast growing nation that's why investment in bonds or stock both is preferable in case of China.

Managing exchange rate risk

Procurement Management ppts by abdullah sahi

Sovereign Credit Rating Changes and Its Impact on Financial Markets of Europe during Debt Crisis Period in Greece and Ireland

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

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

Determinants of Financial Performance of Insurance Companies of USA and UK during Global Financial Crisis (2007-2016)

International Journal of Accounting Research, 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 (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.

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&#39;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 &quot;Country Risk Report of Moody&#39;s&quot; 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&#39;s better for investor to invest in government bonds with minimum level of risk as compare to corporate bonds.

Impact of Internal and External Debts on Financial Markets

Impact of Internal and external debts on Financial Markets, 2019

The empirical study explores the Impact of external debts, internal debts, foreign direct investm... more The empirical study explores the Impact of external debts, internal debts, foreign direct investments, Crude oil prices and debt servicing on Stock markets of Pakistan by using time series data from 1994 to 2018 on annual basis. Purpose of study is to investigate impact of debts on Pakistan stock market. External debts, internal debts, foreign direct investments, Crude oil and debt servicing are independent variables while Stock market capitalization is dependent variable. In this empirical study regression analysis model is applied. Model summary results shows that there is a significant impact of independent variables on dependent variable which give acceptance to alternative hypothesis. Value of R indicates that there is strong correlation of 97% between independent and dependent variables. Value of R square that shows that independent variable is strongly explaining variance in dependent variable by 95%. In model summery Durban Watson test shows value of 2.10 which indicates no auto correlation between variables. Correlation coefficients results show that there is a short term positive and significant impact of internal debts on stock market. Foreign direct investments also showed positive and significant impact on stock market capitalization while external debts servicing and crude oil have insignificant negative impact on stock market capitalization. This research will play a very beneficial role for developing countries and will attract wide audience including economists, equity analysts, investors and institutional investors to analyze their investment risk. This empirical research shows insignificant impact of external debts on stock market of Pakistan. Which implies that governments of developing countries can obtain internal debts on easier financial terms; which enhance liquidity and spending of developing countries. Consequently, more spending on infrastructure, power projects and availability of seaports and dry ports enhances the performance of business. Therefore, internal debt contributes toward the growth of financial market of Pakistan.

Credit Risk Management (Essentials of FRM, Karen)