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

Muhammad Khan (), Mohammad Nouman and Muhammad Imran

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Leverage; Liquidity; Size; Risk; Tangibility; EVA (Economic Value Added) (search for similar items in EconPapers)
JEL-codes: G1 G10 G2 (search for similar items in EconPapers)
Date: 2015-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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https://mpra.ub.uni-muenchen.de/81659/1/MPRA_paper_81659.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/82386/1/MPRA_paper_82386.pdf revised version (application/pdf)

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