Journal of Contemporary Issues in Business Research

ISSN 2305-8277
Table of Contents: Vol. 1, Issue No. 1, October 2012 Volume 1, Issue 1, October 2012

Articles

Dynamics of Exports and Economic Growth at Regional Level: A Study on Pakistan’s Exports to SAARC

Author(s): Shafaqat Mehmood 1 and David Carter 2

Abstract:It is well recognized in literature that countries having a better export performance also enjoying the better economic growth and vice versa. Above said statement raises a striking question; is the economic growth (GDP) and exports having strong linkages? The aim of present study is to test the above said question at regional level exports, especially in context of Pakistan’s exports to South Asian Association for Regional Cooperation (SAARC) to gauge the effectiveness of regional trade agreement. Study contributes literature in terms of regional level exports to test “economic growth and exports” relationship. Results revealed that Johansen cointegration test failed to affirm long run relationship between GDP and Pakistan’s exports to SAARC, hence, short-term relationship exist. Granger causality revealed unidirectional nature of causality from GDP to Pakistan’s exports to SAARC. The regulatory authorizes of developing nations should focus on the measures to improve their economic growth to gain the benefits from Regional Trade Agreements (RTAs).

Keywords:Regional level exports; Economic growth; SAARC; Regional trade agreements; Johansen cointegration; Granger causality.

[Compelete Article-pdf]   [pp: 11-19]   Article first published online: October 2012

Author Affiliations:
  • PIPFA1
  • The University of Chicago Booth School of Business, United States2
Determinants of Dividend Payout Ratio: Evidence from Karachi Stock Exchange (KSE)

Author(s): Abdul Rehman 1 and Haruto Takumi 2

Abstract:This study examines the determinants of dividend payout ratio in the largest stock exchange of Pakistan i.e. Karachi Stock Exchange (KSE). The effect of Debt to equity ratio, Operating cash flow per share, profitability, market to book value ratio, current ratio and corporate tax on dividend payout ratio was analyzed for the year 2009 for 50 companies that announced dividend in 2009. Relation of debt to equity ratio, profitability, current ratio and corporate tax was found to be positive with dividend payout ratio while Operating cash flow per share and market to book value ratio has a negative relationship with dividend payout ratio. Profitability, debt to equity and market to book value ratios were found to be the significant determinants of dividend payout ratio in Pakistan.

Keywords:Dividend payout ratio; Equity ratio; Operating cash flow; profitability, Market to book value ratio, Current ratio; Corporate tax; KSE; Determinants.

[Compelete Article-pdf]   [pp: 20-27]   Article first published online: October 2012

Author Affiliations:
  • UCP1
  • The University of Tokyo, Japan2
Impact of Financial Leverage on Dividend Policy: Case of Karachi Stock Exchange 30 Index‏

Author(s): Muhammad Usman Javed

Abstract:In such a complex corporate environment it is the challenge to the finance manager of the firm in the long run prospective with the objective of maximizing the owner wealth. With the view to achieve the objectives of the organization, finance manager have to put the due attention on the capital structure of the organization. The optimum capital structures of company have to lead to more profitability. This paper investigates the impact of financial leverage on the dividend policy of the Pakistani firms. The research conducted on the Karachi stock exchange companies listed in KSE-30 index during 2005-2010. The primary objective of Karachi Stock Exchange 30 indexes is to have a bench mark by which stock prices can be compared over the time period of time. Karachi stock exchange 30 index is calculated using free float market capitalization methodology. There are fifteen companies which are continuously included in the Karachi stock exchange 30 index during the period of five years (2005-2010).

Keywords:Financial leverage; Dividend policy; Market capitalization; KSE.

[Compelete Article-pdf]   [pp: 28-32]   Article first published online: October 2012

Author Affiliations:
  • University of Central Punjab
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