Audit and Accounting Review

Relationship of Cash Dividend Disbursement and Retained Earnings with Stock Price Volatility - A Case Study of Selected Non-Financial Firms of Pakistan

2022-11-23T08:54:44+00:00

The prime objective of the current study is to determine the relationship between corporate dividend policy and retained earnings and its impact on stock price volatility. The impact of corporate dividend policy and retained earnings on stock price volatility has been debated and discussed variously over the course of the last five decades. Past researches showed mixed evidences of this relationship and the results +remained inconclusive. Moreover, in this regard, only a few studies have been conducted in Pakistan. So, it remains undecided whether the relationship exists or not and further study is required to establish or refute its existence. For this purpose, modern statistical techniques and tools available for analyzing the data were used. Data from a total of 75 companies was initially collected and scrutinized according to different parameters mentioned in the study. Only 50 companies from year 2010 to 2018 were left to be analyzed as the data was not wholly available for the remaining companies as per research requirement. Two separate models were run and the results determined that there exists a positive relationship of corporate dividend policy and retained earnings with stock price volatility.

Role of Financial Development on Economic Complexity: An Empirical Evidence from 33 BRI Countries

2022-11-23T08:54:50+00:00

Economic complexity plays a prominent role in the economic development of countries. So, economies need to improve their level of product sophistication. Several, researchers have mostly neglected the concept of economic complexity and its detrimental factors. Few economists have determined economic complexity with the help of socioeconomic determinants, while others have determined economic complexity through financial development index and institutions. This study employed the Generalize Method of Movement (GMM) to estimate the empirical inferences to cater the effects of endogeneity. Fiscal policy stances such as the log of final government consumption, GDP per capita income, institutions, and the lagged economic complexity have shown a positive and enormous impact on economic complexity. The findings of the current study have elucidated that the financial development index itself is negatively insignificant for economic complexity. However, after introducing the term ‘interaction’ with ‘institutions’, it reflected a positive and significant impact on economic complexity. So, as a policy measure, the selected sample BRI countries must regulate their finance system which would improve their institutional structure.

Impact of Global Financial Crisis on Islamic Banks of Pakistan

2022-11-23T08:54:35+00:00

This study aims to compare the financial performance of conventional and Islamic banks, which remains a widely discussed topic after the latter’s development. Literature review suggests that Islamic banks outperformed conventional banks during the global financial crisis of 2008. The collected data supports the premise that the crisis of 2008 had no impact on Islamic banks. This empirical study tests this hypothesis and compares the ratios and stock prices between re, During and post crisis time period of full-fledged Islamic banks operating in Pakistan by conducting ratio analysis. It includes three study periods namely pre-crisis (2006), during crisis (2007-2009), and post-crisis (2010-2020). The findings states that the ratios and stock prices remain unchanged during the crisis. Through the application of Univariate Analysis of Variance (UAV), this study asserts that the asset turnover ratios of banks and stock return remained unaffected by the crisis. In contrast, Islamic banks profitability, efficiency, risk management, liquidity, asset quality, and Earning per share ratios were extensively affected by the said crisis.

Effect of Earnings Management on the Firm Value of the Listed Nigerian Oil and Gas Companies

2022-11-23T08:54:39+00:00

The current research seeks to gather empirical data regarding the effect of earnings management on the firm value of the listed Nigerian oil and gas companies. This research is based on the data collected for a period of 13 years, that is, 2008-2020. Using the annual reports and accounts of listed oil and gas firms, data were collected through secondary sources. As of December 2020, all thirteen (13) listed oil and gas companies on the Nigerian stock exchange made up the study population. A panel data approach was used with random and fixed effect regression. The results confirmed that earnings management has a significant negative effect on firm value. This suggests that investors do recognize earnings manipulation and, as a result, it discounts the firm's value. This usually leads to a low firm value. Therefore, this study recommends that earnings management practice should be constrained effectively due to its negative effect on a firm value.