IDEAS home Printed from https://ideas.repec.org/a/src/jafeec/v7y2021i2p295-311.html
   My bibliography  Save this article

Financial Health and Exports Sales: Evidence from Pakistan’s Manufacturing Sector

Author

Listed:
  • Sheikh, Muhammad Ramzan
  • Hussain, Iftekhar
  • Tariq, Muhammad
  • Khalid, Shazia

Abstract

Purpose: Many developing countries are espousing export promotion strategies for accelerating growth. All the firms in a country are not exporting due to various factors and characteristics. One of the factors is finance or balance sheet that affects the investment decisions and export tendencies and intensities of the firms. This study aims to explain the link between financial health and exports sales.Design/Methodology/Approach: We have applied the fixed-effect model and Granger Causality test to find the results. &We have taken the data of 190 firms related to the manufacturing sector of Pakistan from 2005 to 2016.Findings: We have taken four financial ratios to measure the financial health of the manufacturing sector of Pakistan. Debt to equity ratio and financial leverage ratio has shown negative sign with the exports sales while coverage ratio and liquidity ratio have appeared with a positive sign with exports sales. Moreover, the effect of total assets, concentration ratio, capital-output ratio and exchange rate have also been probed.Implications/Originality/Value: The study suggests that the financial health of the firm is an important factor in determining export sales so the financial health of the firm should be good and sound so that export sales may be enhanced

Suggested Citation

  • Sheikh, Muhammad Ramzan & Hussain, Iftekhar & Tariq, Muhammad & Khalid, Shazia, 2021. "Financial Health and Exports Sales: Evidence from Pakistan’s Manufacturing Sector," Journal of Accounting and Finance in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 7(2), pages 295-311, June.
    • Handle: RePEc:src:jafeec:v:7:y:2021:i:2:p:295-311
    DOI: http://doi.org/10.26710/jafee.v7i2.1668
    as

    Download full text from publisher

    File URL: https://publishing.globalcsrc.org/ojs/index.php/jafee/article/view/1668/1120
    Download Restriction: no
    File URL: https://libkey.io/http://doi.org/10.26710/jafee.v7i2.1668?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:src:jafeec:v:7:y:2021:i:2:p:295-311. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Rabia Rasheed (email available below). General contact details of provider: https://edirc.repec.org/data/csrcmpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.