This study investigates the role of risk behaviour in mediating the association between personality traits and investment intention and moderating role of financial literacy between the association of risk behaviour and investment intention within a sample of 284 students with finance background. Regression analyses was executed in a series to test the impact of independent variables on dependent variables. Along this, separate models for the mediator and for the moderator were appraised to get more vibrant results. Results suggest that individuals who are active, sympathy toward others, determined, well-organized are more willing toward Investment. Further results revealed that risk behaviour [...]

The objective of this study is to capture a nexus between economic stability and female unemployment in Pakistan. Since economic stability enables macro-economic objectives such as sustainable growth, it creates conductive environment for employment. This study used foreign direct investment (FDI), consumer price index (CPI), fiscal deficit, debt to GDP, interest rate and exchange rate regarded as indicators of economic stability. Whereas, time series data for the period from 1973 to 2015 has employed through Augmented Dickey Fuller and Phillip-Perron and unit roots tests are applied to check the stationarity of the data. It has found that data is a [...]

This study investigates the effect of investor sentiment on the stock market capitalization on different economic sectors of Karachi Stock Exchange of Pakistan by using the data from the year 1972-2014. The findings of EGARCH model suggest that the Power and Fuel sector and the Chemical sector are more affected by investor sentiment as compared to the other sectors due to the presence of big giants' firms of Pakistani market in those sectors. Furthermore, it is concluded that noise traders are irrational traders and they follow news and trends. Therefore, it is recommended that a number of different educational and [...]

The primary objective of this paper is to find out the Shariah Non-Compliance Risks (SNCRs) of Murabahah along with proposing its risk management system. As the activity of Shariah non-compliance is negligence or failure to comply with the Shariah rules and regulations as well as for some extent the breach of the law of the land. Hence, Identification, Monitoring, Control and Mitigation of SNCRs need to be undertaken sensitively otherwise the spirit and objective of Islamic banks (IBIs) will be no more different than conventional banking system. Moreover, failure in control and mitigation of Shariah non-compliance risks may render the [...]

Arrival of new information and dissemination of that information in asset prices is the determining force of asset returns. This paper studies the nexus between political and institutional corruption events with daily stock market returns by using Mega Corruption cases that were reported between January 2011 to February 2019. Therefore, to study how stock market returns react to these selected events, a mean adjusted model has been applied and a before and after, two and five day event window has been constructed. The results show that political and institutional corruption events have negative and significant impact on stock market returns. [...]

This study aims to analyze the impact of oil price on stock market performance in top oil importing countries. We used balanced panel data over a sample period of 1995 to 2017 with annual frequency. The sample data was gathered from World Development Indicator (WDI), Global Financial Indicator (GFDI) and West Texas Intermediate (WTI). The sample data were analyzed using regression test under the assumptions of Hausman test. Findings obtained from the fixed effect model suggest that oil price has a negative and insignificant impact on stock market. Similarly, the exchange rate also showed negative and insignificant impact while inflation [...]

While an extensive amount of literature exists on the role of futures markets in influencing various dynamics of spot markets, the question whether they stabilize or destabilize the underlying spot market is unresolved. This study addresses this concern and investigates the impact of SSFs (particularly in terms of their destabilizing ability) on the underlying stocks. This study contributes to the literature of financial economics by modifying the famous Sentanan & Wadhwani (1992) model and adding trading volume as a control variable along with Generalized Error Distribution (GED) to capture leptokurtic nature of financial time series data for introduction episode of [...]

We investigate the impact of government borrowing from the scheduled banks on the credit to private sector in Pakistan, using monthly data from 1998:M6 to 2015:M12. We find that a one percentage point growth in the government borrowing leads to 8 basis points crowding out of the private sector credit in four months. Albeit small, there is negative impact of government borrowing on the private sector credit. The results remain unchanged even after implementation of the interest rate corridor since August 2009. [...]

The intention of this research article is to explore the accounting conservatism association with the cost of capital in Pakistani firms. For this examination, data collected from annual reports of 142 firms registered in Pakistan Stock Exchanges (PSX) for the period 2006 to 2011. This paper calculates the cost of capital by employing OJ-Model (2005) and accounting conservatism by using renowned Basu (1997) model. Current paper found a significant negative association of irregular measurement of earnings (bad news or c-score) and the cost of capital, which infers that conservative reporting in Pakistani firms reduces the cost of capital. Furthermore, this [...]

The present study aims to analyse the link between external debt, domestic debt and economic growth for Pakistan. To serve the purpose, the study uses the data for the time period from 1987 to 2018. Various econometric techniques i.e, fully modified ordinary least squares model, dynamic ordinary least squares model have been employed to estimate the proposed model. The empirical findings suggested that there exist a negative relationship between growth and debt whether it is external or domestic. The study confirmed the existence of debt overhang effect in the economy. It is suggested that Pakistan should reduce her reliance [...]