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A Financial Performance Comparison Of Group And Non-Group Firms In Textile Sector Of Pakistan

Author

Listed:
  • Ishtiaq AHMAD

    (Faculty of Economics and Business, University of Debrecen; Faculty of Management Sciences, NUML, Islamabad Pakistan)

  • Syed Zaheer ABBAS KAZMI

    (Faculty of Economics and Business, University of Debrecen; Faculty of Management Sciences, NUML, Islamabad Pakistan)

Abstract

Pakistan is a developing economy and business groups are key players of the Pakistan’s economy. Previous research evidence shows that in the emerging economies group affiliation creates value for the firms. This study is intended to empirically investigate to know that whether group affiliated (GA) firms perform financially better than non-group affiliated firms or not? GA firms in emerging economies can have better financial performance by sharing tangible and intangible resources at group level. The financial ratio is used to compare performance of affiliated and non-group affiliated firms by using the data of 70 textile firms listed at Karachi Stock Exchange(now Pakistan Stock Exchange) covering a period from 2008 to 2012. Based on mean values of return on assets (ROA), results of the study show that GA firms have higher financial performance than non-group affiliated firms in each year and over all five years.

Suggested Citation

  • Ishtiaq AHMAD & Syed Zaheer ABBAS KAZMI, 2016. "A Financial Performance Comparison Of Group And Non-Group Firms In Textile Sector Of Pakistan," Network Intelligence Studies, Romanian Foundation for Business Intelligence, Editorial Department, issue 8, pages 143-150, December.
    • Handle: RePEc:cmj:networ:y:2016:i:8:p:143-150
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    References listed on IDEAS

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    More about this item

    Keywords

    Business Groups; Financial Performance; Profitability; Group Affiliated; Pakistan;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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