Determinants of financial performance of financial sectors (An assessment through economic value added)

Khan, Muhammad Kamran and Nouman, Mohammad and Imran, Muhammad (2015): Determinants of financial performance of financial sectors (An assessment through economic value added). Published in: : pp. 1-32.

Abstract

This study investigated determinants of financial performance of listed financial sectors in Karachi Stock Exchange for the period 2008 to 2012. The objective of this study was to investigate the factors which affect financial performance of financial sectors of Pakistan. Descriptive statistics, Correlation matrix, Chow test, Hausman Test for Fixed Effect Model and Random Effect Model and Breusch-Pagan Lagrange multiplier for Random Effect were used in this study. Estimated results revealed that determinants of financial sectors such as leverage, liquidity, size, risk, and tangibility have significant effect on financial performance of financial sectors. It is recommended that financial sectors should consider EVA as an important factor for financial performance. It is suggested that increased number of independent variables will further enhanced the scope of the future studies.

• Item Type: MPRA Paper
• Language: English
• Keywords: Leverage, Liquidity, Size, Risk, Tangibility, EVA (Economic Value Added)
• Subjects: G - Financial Economics > G1 - General Financial Markets; G - Financial Economics > G1 - General Financial Markets > G10 - General; G - Financial Economics > G2 - Financial Institutions and Services

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