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Impact of Leverage and Liquidity on Performance of Firms

Thesis Info

Author

Hina Tahir

Department

Department of Management Sciences

Program

Mphil

Institute

National University of Modern Languages

Institute Type

Public

City

Islamabad

Province

Islamabad

Country

Pakistan

Thesis Completing Year

2015

Subject

Management Sciences

Language

English

Added

2021-02-17 19:49:13

Modified

2024-03-24 20:25:49

ARI ID

1676728795213

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The study is made to explore the impact of leverage and liquidity on the performance of firms. Liquidity and leverage are two of the most important pillars and on these pillars whole operations of the business stand. This research has attempted to establish a relationship between leverage and liquidity with the financial performance of firms operating in Pakistan. Some selected textile firms operating in Pakistan were selected as sample for the research. The data of 76 textile firms was collected. The variables included in this research relating to leverage are as follows total debt to total asset ratio, short term debt to total asset ratio and long term debt to total asset ratio. Liquidity was calculated by using current ratio only. Size was included as control variable. Seven performance variables are used in this research like ROE, ROA, and EPS etc. Descriptive, correlation and panel data analysis were made. Panel data test was applied to find regression between variables. The findings of this research were that low leverage ratios mean high performance as it is negatively associated with performance. Liquidity was significantly and positively related to the performance of textile firms. All the variables except stock price (SP) have positive and significant relationship with the leverage and liquidity of the textile firms. Stock price has no relation with the leverage of the firm while, positive and significant relation with the liquidity of the textile firms. Government should take considerable steps in promoting investment and growth of textile sectors_ Management should formulate careful strategies relating to the decisions involved in the capital structure and liquidity. The similar research can be repeated by adding new variables and by changing the nature of study into exploratory research.
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خالی پنجرہ

خالی پنجرہ
میں تے دیس ماہی دے جانا
جا کے اوہدا درشن پانا

سوہنے سائیں سنہڑے گھلے
رستے سپاں شینہاں ملے
کوئی نہ سنگی، اسیں ہکلے
کیتا وعدہ توڑ نبھانا

دلبر سوہنا جدوں بلاوے
میری کوئی پیش نہ جاوے
ماں میری پئی وید بلاوے
پنجرہ چھڈ، پنچھی اُڈ جانا

ماں میری مینوں سمجھاوے
چڑھیں نہ بچہ عشق کچاوے
تھل مارو ایہہ عشق رلاوے
وچ جنگلاں تے بیاباناں

جیہڑا سچا عشق کماوے
کسے گھاٹی نہ اوہ گھبراوے
کالی کمبل ہیٹھ چھپاوے
اوہنوں دلبر بری کرانا

سانوں یار دی یاد ستایا
ہجر ماہی نے مار مکایا
جے نہ دلبر مکھ وکھایا
قادریؔ سکدیاں ہی مر جانا

سید محمد محسن اور ان کا منظوم ترجمۂ قرآن: ایک تنقیدی مطالعہ

Sayyid Muḥammad Moḥsin was Lucknow based poet. The biographers, though, seem unaware of his life and poetic profile. He did interpretative translation of the Holy Qurʼān in Urdu in Mathnavī form with the title of ‘Manẓūm Urdu Tarjama’. This translation was published from Lucknow in 1986. The translation in poetic form asks for technicalities which this work lacked perhaps. This article surfaces errors which were identified in areas of poetic exposition, concept formation and stylistic coherence in the translation work.

Food Consumption in Pakistan: A Comparison of Quality Effect Across Regions and Provinces

The study estimated quantity, expenditure and quality elasticities for major food products in Pakistan and provided comparison of quality effect across regions, provinces and income quintiles using data from the HIES part of PSLM 2007-08 (first period) and 2010-11 (second period). The elasticities of interest were obtained via log-log inverse functional form of Engel equation. Coefficients of parameters (?? , ?? , ?? and ?? ) in most of the selected food items were found statistically significant reflecting that the log-log-inverse (LLI) formulation of the model fit the data well and validate nonlinear behavior of Engel relationship for food consumption in Pakistan. The quantity elasticities during both periods remained less than unity except milk packed in Sindh province with reasonable variations in magnitude across regions, provinces and income quintiles. Compared to the first period, with a few exceptions, quantity elasticities have increased during the second period and were larger at the upper income quintiles relative to the lower ones. In most of the products, quantity elasticities were higher for rural households than urban ones during both the periods. Likewise, expenditure elasticities have increased considerably in Pakistan during the second period compared to the first one for most of the food commodities. A pattern similar to quantity elasticities was also observed in expenditure elasticities across regions, provinces and income quintiles. For most of the products, the estimates of quality elasticities were positive in both the periods implying that households in Pakistan purchase higher quality food as their income rises. During both the periods, the quality elasticities for most of the food items decreased for rural households compared to urban ones. A considerable variability was observed in quality elasticities among provinces and income quintiles in terms of magnitude for various food items. Thus, with the exception of a few products, Pakistani households, in general, not only demand more quantity but also higher quality of food as their income rises. Hence, from the policy point of view, evidence of positive demand for quality food would facilitate devising food policy for the development of food markets in terms of market segmentation and quality improvements in Pakistan. Resultantly, this would be an important driver of food demand and future food projections, with possibility of creating different marketing opportunities, and increased welfare for Pakistani populace. Key Words: Food Consumption, quantity elasticity, expenditure elasticity, quality elasticity, urban/rural households, income quintiles, provinces, Pakistan