Home > Financial Signaling and Information Asymmetries in Debt Vs. Equity The Theory and Empirics Among Emerging and Transitional Market: Perspective from Pakistan
Financial Signaling and Information Asymmetries in Debt Vs. Equity The Theory and Empirics Among Emerging and Transitional Market: Perspective from Pakistan
This study examines the relative effect of capital structure theories and the determinants to establish best understanding of the most appropriate theory to explain debt vs. equity hypothesis and the behavior of firms. The theories provide theoretical basis to compare with empirical findings of quantitative analysis. This study covers the period from the period 2001 to 2010 of listed companies of Karachi Stock Exchange, Pakistan. It is obvious that determinants of capital structure affect the choice of debt vs. equity in emerging and transitional economies. A number of econometric models from OLS to EBA are being used to identify the empirical evidences for this perspective. The results reveal that seven variables: investment growth opportunity (IGO), agency cost (AC), liquidity (CR), financial flexibility (FF), free cash flows (FCF), tax effect (DP) and interest rate (IR) have robust - signaling relationship and highly sensitive to debt vs. equity. This study explains the financial signaling and asymmetry of information risk due to debt vs. equity decisions. For the whole sample period, the study found evidence of financial signaling and information asymmetries of risk due to Debt vs. Equity decisions. There is a significant effect of the systematic risk (β), should also report about the persistence of negative effect during the sample period. There is a significant effect of the interest rate (IR). The empirical results report about the persistence of interest rate (IR) negative effect during the sample period. It is observed and resulted that increase in debt vs. equity negatively associated with the value of the firm. This proved inverse relationship among debt vs. equity and firm value variables. This showed inconsistency of prior findings as Modigliani and Miller (1958) theory that the market value is irrelevant to financial policy. The results presented that corporate corporate governance (CG) has significant effect on firm performance (FP) under transaction cost economics theory and good management theory. It is obvious from the results that corporate governance (CG) has significant effect on the firm value. In addition, it is also shown that corporate governance (CG) does have mediating and moderating effect in between the corporate financial structure (CFS) and firm value. The negative relationship shows an agency problem. Therefore, the investors do not have the equal information of the particular firm as the manager holds. Furthermore, the financial signaling and asymmetries of information hypothesis reflected that choice of debt or equity must have influence the behavior of the investor due to information asymmetries, it is seen negative and increase threaten of bankruptcy and financial distress. It is found that product and asset specificity diversification have a significant relationship with capital structure for best alignment of cost with trade off signaling and asymmetric risk. However, Extreme Bound Analysis (EBA) an econometric technique is used to analyze the variables and investigates the significant empirical findings. The empirical findings of the study have implications for risk management appropriately to reflect the effect on financial decisions in emerging and transitional economies.
مفتی عبداللطیف افسوس ہے کہ علمائے قدیم کی ایک اہم اور آخری یادگار مفتی عبداللطیف صاحب نے گزشتہ مہینہ انتقال فرمایا، مرحوم استاذ العلماء مولانا لطف اﷲ صاحب علی گڑھ کے شاگرد مولانا فضل رحمن گنج مراد آبادیؒ کے مرید اور دارالعلوم ندوۃ العلماء کے دور اول کے اساتذہ میں تھے، حضرت سید صاحب مرحوم نے ابتدائی کتابیں ان ہی سے پڑھی تھیں۔ پھر ندوہ سے اپنے خواجہ تاش مولانا محمد علی مونگیریؒ کے پاس مونگیر چلے گئے اور کچھ دنوں یہاں قیام کے بعد حجاز تشریف لے گئے اور کئی سال تک مدرسۂ صولتیہ مکہ معظمہ میں درس و تدریس کی خدمت انجام دی، اسی زمانہ میں مصر و شام و عراق وغیرہ کی سیاحت کی، پھر حجاز سے واپس آکر مونگیر میں تصنیف و تالیف کا سلسلہ شروع کیا، جامعہ عثمانیہ کے قیام کے بعد جب ان کے ہم درس مولانا حبیب الرحمن خاں شروانی اس کے وائس چانسلر مقرر ہوئے تو انھوں نے مفتی صاحب کو اس کے شعبۂ دینیات میں لکچرر مقرر کیا اور آخر میں وہ اس کی صدارت کے عہدہ سے وظیفہ یاب ہوئے۔ جامعہ عثمانیہ سے سبکدوشی کے بعد شروانی صاحب نے مسلم یونیورسٹی کے شعبۂ دینیات میں ان کا تقرر کرایا۔ مگر چند ہی سال کے بعد ضعف پیری کی وجہ سے اس خدمت سے سبکدوش ہوگئے، اور علی گڑھ میں مستقل قیام فرمایا، مگر درس و تدریس کا سلسلہ آخر عمر تک جاری رہا۔ مفتی صاحب مرحوم ہندوستان کے مشہور اساتذہ میں تھے، دینی علوم پر ان کی نظر بڑی گہری اور وسیع تھی۔ ان کے تلامذہ کی تعداد سیکڑوں سے متجاوز ہے۔ جن میں مولانا سید سلیمان ندوی مرحوم جیسے شاگرد بھی تھے۔ تالیف و تصنیف کا بھی مشغلہ رہتا تھا۔ چنانچہ ان کی کئی کتابیں تاریخ القرآن، سیرت امام ابوحنیفہ اور فقہ کے چند رسائل...
Dr. Juynboll (1935-2010) was an Orientalist. He was born in Leiden, South Holland and obtained his doctoral degree in 1969. He worked at the University of California. He was a specialist of Hadith. In 1983, Cambridge University Press published his work “Muslim Tradition: Studies in Chronology, Provenance and Authorship of Early Hadith”. This work contains a critical assessment of the persons who were involved in the formation of Islamic orthodoxy. Imam Ibnul Mulaqqi is a Muslim Scholar who examined Ahadith of the Holy Prophet (PBUH) and did exhaustive work in pointing out the reasons of hidden weakness in it. So through this article we will be able to judge the views and opinions of Dr. Juynboll about the Provenance and Authorship of Early Hadith and methodology of a Muslim Scholar for scrutinizing and examining the collection of Ahadith through his historical book “Albdrul-Muneer”.
The study is an attempt to investigate effect of home environment and school environment on personality development and academic achievement of secondary school students. The objectives of the study were, to investigate the effect of Home environment on Personality development and academic achievement of students, to explore the effect of school environment on Personality development and academic achievement of students, to find out the combined the effect of home environment and school environment on personality development and academic achievement of students; and to compare the relationship of home environment and school environment with personality development and academic achievement for different categories of students. A self reporting survey research design was adopted to conduct this research. Four research instruments comprising of home environment, school environment, relationship of staff members at school and personality inventory were used to collect data from students. Information about the academic achievement of the students was obtained by collecting their 9th grade result from Gazette book of Board of intermediate and Secondary Education (BISE) Abbottabad, 2013. Mean, Standard Deviation, Percentile, Multiple Regression Model, and Carl Pearson Correlation Coefficient was used to analyze the collected data. Major findings of study revealed that there were variations in terms of effect of home environment and school environment on Five Big Factors of personality and academic achievement of secondary school students. It was also found that home environment and school environment collectively affect the Five Big Factors of personality as well as academic achievement of secondary school students. On the basis of findings it was recommended that there is a need to train parents and teachers about their role in shaping personality and better academic achievement of secondary school students. It was also recommended that parental awareness about the provision of conducive home environment may be promoted through different measures. Conducive school environment in terms of teachers’ awareness about their role in balanced development of personality and academic achievement of students may be provided through different measures like provision of in service training, arrangement of seminars and workshops, and guidance and counseling centers at schools.