IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/40675.html
   My bibliography  Save this paper

Application of finance techniques: an empirical analysis of pakistani corporate sector

Author

Listed:
  • Hunjra, Ahmed Imran
  • Niazi, Ghulam Shabbir Khan
  • Akbar, Syed Waqar
  • Rehman, Kashif-Ur-

Abstract

The study reviews the core areas of the finance functions and their level of applications in Pakistani corporate sector. A total of 70 questionnaires were distributed in different companies, 53 were received and 49 were processed, the respondents were finance executives and financial analysts of the companies. The study concludes that respondents are well aware of finance functions; out of these functions applications of capital structure decisions are being properly practiced while dividend policy is a major concern in most of the organizations. Investment appraisal techniques are not followed systematically due to constraints on capital investment and availability of resources.Working capital policy and financial performance assessment ratios are practiced in Pakistani corporate sector at large.

Suggested Citation

  • Hunjra, Ahmed Imran & Niazi, Ghulam Shabbir Khan & Akbar, Syed Waqar & Rehman, Kashif-Ur-, 2011. "Application of finance techniques: an empirical analysis of pakistani corporate sector," MPRA Paper 40675, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:40675
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/40675/1/MPRA_paper_40675.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Williamson, Oliver E, 1988. " Corporate Finance and Corporate Governance," Journal of Finance, American Finance Association, vol. 43(3), pages 567-591, July.
    2. Neal Arthur & Marco Cheng & Robert Czernkowski, 2010. "Cash flow disaggregation and the prediction of future earnings," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 50(1), pages 1-30, March.
    3. McConnell, John J. & Servaes, Henri, 1990. "Additional evidence on equity ownership and corporate value," Journal of Financial Economics, Elsevier, vol. 27(2), pages 595-612, October.
    4. Abdul K. M. Azhar & Robert J. R. Elliott, 2006. "On the Measurement of Product Quality in Intra-Industry Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(3), pages 476-495, October.
    5. Jensen, Michael C. & Ruback, Richard S., 1983. "The market for corporate control : The scientific evidence," Journal of Financial Economics, Elsevier, vol. 11(1-4), pages 5-50, April.
    6. Myers, Stewart C. & Majluf, Nicholas S., 1984. "Corporate financing and investment decisions when firms have information that investors do not have," Journal of Financial Economics, Elsevier, vol. 13(2), pages 187-221, June.
    7. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
    8. Pindyck, Robert S, 1988. "Irreversible Investment, Capacity Choice, and the Value of the Firm," American Economic Review, American Economic Association, vol. 78(5), pages 969-985, December.
    9. Fukuda, Atsuo, 2000. "Dividend changes and earnings performance in Japan," Pacific-Basin Finance Journal, Elsevier, vol. 8(1), pages 53-66, March.
    10. Michaely, Roni & Thaler, Richard H & Womack, Kent L, 1995. "Price Reactions to Dividend Initiations and Omissions: Overreaction or Drift?," Journal of Finance, American Finance Association, vol. 50(2), pages 573-608, June.
    11. Kato, Hideaki Kiyoshi & Loewenstein, Uri & Tsay, Wenyuh, 2002. "Dividend policy, cash flow, and investment in Japan," Pacific-Basin Finance Journal, Elsevier, vol. 10(4), pages 443-473, September.
    12. Lahcen Achy, 2009. "Corporate Capital Structure Choices In Mena: Empirical Evidence From Non-Listed Firms In Morocco," Middle East Development Journal (MEDJ), World Scientific Publishing Co. Pte. Ltd., vol. 1(02), pages 255-273.
    13. Stewart C. Myers & Nicholas S. Majluf, 1984. "Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have," NBER Working Papers 1396, National Bureau of Economic Research, Inc.
    14. Lahcen Achy, 2009. "Corporate Capital Structure Choices in Mena: Empirical Evidence from Non-Listed Firms in Morocco," Middle East Development Journal, Taylor & Francis Journals, vol. 1(2), pages 255-273, January.
    15. Felipe L. Aguerrevere, 2003. "Equilibrium Investment Strategies and Output Price Behavior: A Real-Options Approach," Review of Financial Studies, Society for Financial Studies, vol. 16(4), pages 1239-1272.
    16. Butt, Babar Zaheer & Hunjra, Ahmed Imran & Rehman, Kashif-Ur-, 2010. "Financial management practices and their impact on organizational performance," MPRA Paper 32685, University Library of Munich, Germany.
    17. Peterson, David R. & Peterson, Pamela P., 1991. "The medium of exchange in mergers and acquisitions," Journal of Banking & Finance, Elsevier, vol. 15(2), pages 383-405, April.
    18. Asquith, Paul & Mullins, David W, Jr, 1983. "The Impact of Initiating Dividend Payments on Shareholders' Wealth," The Journal of Business, University of Chicago Press, vol. 56(1), pages 77-96, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:pra:mprapa:40679 is not listed on IDEAS
    2. Hunjra, Ahmed Imran & Bilal, Muhammad & Shafi, Haroon & Ullah, Ikram & Rehman, Kashif-Ur-, 2010. "Patterns of capital structure and dividend policy in Pakistani corporate sector and their impact on organization performance," MPRA Paper 40658, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hunjra, Ahmed Imran & Bilal, Muhammad & Shafi, Haroon & Ullah, Ikram & Rehman, Kashif-Ur-, 2010. "Patterns of capital structure and dividend policy in Pakistani corporate sector and their impact on organization performance," MPRA Paper 40658, University Library of Munich, Germany.
    2. Darakhshan Younis & Attiya Yasmin Javid, 2014. "Market Imperfections and Dividend Policy Decisions of Manufacturing Sector of Pakistan," PIDE-Working Papers 2014:99, Pakistan Institute of Development Economics.
    3. Abdullah AlGhazali & Khamis Hamed Al-Yahyaee & Richard Fairchild & Yilmaz Guney, 2024. "What do dividend changes reveal? Theory and evidence from a unique environment," Review of Quantitative Finance and Accounting, Springer, vol. 62(2), pages 499-552, February.
    4. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    5. Hunjra, Ahmed Imran & Batool, Iram & Niazi, Ghulam Shabbir Khan & Rehman, Ijaz ur, 2011. "Investment appraisal techniques and constraints on capital investment," MPRA Paper 40677, University Library of Munich, Germany.
    6. Nowak, Eric, 1998. "Finance, investment, and firm value in Germany and the US: A comparative analysis," SFB 373 Discussion Papers 1998,49, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    7. Brav, Alon & Graham, John R. & Harvey, Campbell R. & Michaely, Roni, 2005. "Payout policy in the 21st century," Journal of Financial Economics, Elsevier, vol. 77(3), pages 483-527, September.
    8. Namryoung Lee & Jaehong Lee, 2019. "External Financing, R&D Intensity, and Firm Value in Biotechnology Companies," Sustainability, MDPI, vol. 11(15), pages 1-18, July.
    9. Majumdar, Raju, 2012. "The Determinants of Indebtedness in Unlisted Manufacturing Firms in India: A Panel Data Analysis," MPRA Paper 43427, University Library of Munich, Germany.
    10. Samuel, Cherian, 1996. "Stock market and investment : the governance role of the market," Policy Research Working Paper Series 1578, The World Bank.
    11. Kamil K. Nazliben & Luc Renneboog & Emil Uduwalage, 2024. "Corporate governance from colonial Ceylon to post-civil war Sri Lanka," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(1), pages 265-335, March.
    12. Harada, Kimie & Nguyen, Pascal, 2005. "Dividend change context and signaling efficiency in Japan," Pacific-Basin Finance Journal, Elsevier, vol. 13(5), pages 504-522, November.
    13. Marcel Gérard & Frédéric Verscueren, 2002. "Finance, uncertainty and investment: assessing the gains and losses of a generalized non linear structural approach using Belgian panel data," Working Paper Research 26, National Bank of Belgium.
    14. Ozkan, Aydin & Ozkan, Neslihan, 2004. "Corporate cash holdings: An empirical investigation of UK companies," Journal of Banking & Finance, Elsevier, vol. 28(9), pages 2103-2134, September.
    15. Hussein Abedi Shamsabadi & Byung-Seong Min & Richard Chung, 2016. "Corporate governance and dividend strategy: lessons from Australia," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 12(5), pages 583-610, October.
    16. Philippe Adair & Imène Berguiga, 2021. "A survey on funding MSMEs and female entrepreneurs in MENA countries and the microfinance issue," Erudite Working Paper 2021-12, Erudite.
    17. S. Balcaen & J. Buyze & H. Ooghe, 2009. "Financial distress and firm exit: determinants of involuntary exits, voluntary liquidations and restructuring exits," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/598, Ghent University, Faculty of Economics and Business Administration.
    18. Matts Rosenberg, 2004. "Firm risk, investment, and employment growth," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 28(2), pages 164-184, June.
    19. Blau, Benjamin M. & Fuller, Kathleen P., 2008. "Flexibility and dividends," Journal of Corporate Finance, Elsevier, vol. 14(2), pages 133-152, April.
    20. Mamoru, Nagano, 2009. "Real Estate Securitization and the Debt Maturity Structure: Evidence from J-REIT," MPRA Paper 24581, University Library of Munich, Germany, revised Sep 2010.

    More about this item

    Keywords

    Finance Functions; Corporate Sector; Finance Executives and Analysts;
    All these keywords.

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

    Statistics

    Access and download statistics

    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:pra:mprapa:40675. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.