The Consequences of Easy Credit Policy, High Gearing, and Firms’ Profitability in Pakistan’s Textile Sector: A Panel Data Analysis
This study uses panel data on 75 textile firms for the period 2000–09 to examine the consequences of an easy credit policy followed by high gearing, increased financing costs, and other determinants of corporate profitability. Five out of nine explanatory variables—including gearing, financing costs, inflation, tax provisions, and the industry’s capacity utilization ratio—have a negative impact, while the remaining four variables—working capital management, asset turnover, exports, competitiveness, and devaluation—have a positive impact on firms’ profitability.
Volume (Year): 17 (2012)
Issue (Month): 1 (Jan-June)
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References listed on IDEAS
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- Marco Grazzi, 2009. "Trade and Profitability: Is there an export premium? Evidence from Italian manufacturing firms," LEM Papers Series 2009/16, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
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- Imran Omer Chhapra & Nousheen Abbas Naqvi, 2010. "Relationship between Efficiency Level of Working Capital Management and Profitability of Firms in the Textile Sector of Pakistan," Indus Journal of Management & Social Science (IJMSS), Department of Business Administration, vol. 4(1), pages 30-42, December.Full references (including those not matched with items on IDEAS)
- Chhapra, Imran Umer & Naqvi, Nousheen Abbas, 2010. "Relationship between Efficiency Level of Working Capital Management and Profitability of Firms in the Textile Sector of Pakistan," MPRA Paper 51057, University Library of Munich, Germany.
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