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Detenninants of Corporate Saving in Pakistan.A Macro-econometric Analysis

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  • ZIA M QURESHI

    (International Monetary Fund.)

Abstract

Firms' behaviour with respect to retention and distribution of profits has received little attention in developing countries. Against the background of previous research on the subject, mainly in advanced industrial countries, the paper attempts a multivariate regression analysis of retention of profits in Pakistan, using time-series data relating to the country's non-fmancial corporate sector. The results support the applicability to developing countries of many of the hypotheses concerning this aspect of firms' behaviour which have found support in empirical research in the more advanced economies.

Suggested Citation

  • Zia M Qureshi, 1983. "Detenninants of Corporate Saving in Pakistan.A Macro-econometric Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 22(2), pages 73-96.
    • Handle: RePEc:pid:journl:v:22:y:1983:i:2:p:73-96
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    References listed on IDEAS

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    1. Sergei P. Dobrovolsky, 1951. "Corporate Income Retention, 1915-43," NBER Books, National Bureau of Economic Research, Inc, number dobr51-1, March.
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    3. M. S. Feldstein & J. S. Flemming, 1971. "Tax Policy, Corporate Saving and Investment Behaviour in Britain," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 38(4), pages 415-434.
    4. Taggart, Robert A, Jr, 1977. "A Model of Corporate Financing Decisions," Journal of Finance, American Finance Association, vol. 32(5), pages 1467-1484, December.
    5. P. E. Hart, 1965. "Business Saving and Errors in Variables," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 32(3), pages 225-232.
    6. M. S. Feldstein, 1970. "Corporate Taxation and Dividend Behaviour," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 37(1), pages 57-72.
    7. Paul G. Darling, 1957. "The Influence of Expectations and Liquidity on Dividend Policy," Journal of Political Economy, University of Chicago Press, vol. 65, pages 209-209.
    8. Sergei P. Dobrovolsky, 1951. "Appendices to "Corporate Income Retention, 1915–43"," NBER Chapters, in: Corporate Income Retention, 1915-43, pages 101-118, National Bureau of Economic Research, Inc.
    9. P. E. Hart, 1962. "The Business Propensity to Save," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 29(2), pages 147-150.
    10. Amjad, Rashid, 1973. "Growth, profitability and savings of quoted public limited companies 1964-70," MPRA Paper 39260, University Library of Munich, Germany.
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