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

Author

Listed:
  • Khan, Muhammad Kamran
  • Nouman, Mohammad
  • Imran, Muhammad

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.

Suggested Citation

  • Khan, Muhammad Kamran & Nouman, Mohammad & Imran, Muhammad, 2015. "Determinants of financial performance of financial sectors (An assessment through economic value added)," MPRA Paper 81281, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:81281
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    References listed on IDEAS

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    Cited by:

    1. Maha Haroon & Danish Ahmed Siddiqui, 2019. "Determinants of Allocative, Cost and Scope Efficiencies: A Comparative Analysis of Banks and Insurance Companies in Pakistan," Business Management and Strategy, Macrothink Institute, vol. 10(2), pages 285-312, December.
    2. Adegbite, Grace Oluwafolahanmi, 2024. "The Effect of Foreign Exchange Exposure on the Financial Performance of MNCs in Rwanda," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(6), pages 208-229, June.
    3. Hussain A. Bekhet & Jad Alkareem Alhyari & Nora Yusma Mohamed Yusoff, 2020. "Highlighting Determinants of Financial Performance of the Jordanian Financial Sector: Panel Data Approach," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(6), pages 237-252, December.

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    More about this item

    Keywords

    Leverage; Liquidity; Size; Risk; Tangibility; EVA (Economic Value Added);
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G2 - Financial Economics - - Financial Institutions and Services

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