Business Groups' Financial Performance: Evidence from Pakistan
W. Ghani, O. Haroon, and J. Ashraf. Global Journal of Business Research, 5 (2):
27-39(2011)Keywords: Firm; Firms; Leverage; Stocks; Geographic Descriptors:
Pakistan; Geographic Region: Asia; Publication Type: Journal Article;
Update Code: 201102; Copyright: Copyright of Global Journal of Business
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Abstract
We examine comparative financial performance of business groups in
Pakistan employing samples of firms listed on the Karachi Stock Exchange,
Our descriptive results show that group firms are larger in size
and have higher operating profits. Group firms also exhibit lower
sales growth variability over a five year period than non-business
group firms. Our statistical analysis reveals that business group
firms have significantly higher liquidity and significantly lower
financial leverage than the non-business group firms. More importantly,
business group firms are more profitable (higher ROA) than non-group
firms. Our results based on superior financial performance of business
groups indicate that business groups in Pakistan are efficient economic
arrangements that substitute for missing or inefficient outside institutions
and markets, hence supporting the market failure argument.
Keywords: Firm; Firms; Leverage; Stocks; Geographic Descriptors:
Pakistan; Geographic Region: Asia; Publication Type: Journal Article;
Update Code: 201102; Copyright: Copyright of Global Journal of Business
Research (GJBR) is the property of Institute for Business & Finance
Research and its content may not be copied or emailed to multiple
sites or posted to a listserv without the copyright holder's express
written permission. However, users may print, download, or email
articles for individual use.
%0 Journal Article
%1 Ghani2011
%A Ghani, WaQar I.
%A Haroon, Omair
%A Ashraf, Junaid
%D 2011
%J Global Journal of Business Research
%K finanzas instituciones pakistan
%N 2
%P 27-39
%T Business Groups' Financial Performance: Evidence from Pakistan
%V 5
%X We examine comparative financial performance of business groups in
Pakistan employing samples of firms listed on the Karachi Stock Exchange,
Our descriptive results show that group firms are larger in size
and have higher operating profits. Group firms also exhibit lower
sales growth variability over a five year period than non-business
group firms. Our statistical analysis reveals that business group
firms have significantly higher liquidity and significantly lower
financial leverage than the non-business group firms. More importantly,
business group firms are more profitable (higher ROA) than non-group
firms. Our results based on superior financial performance of business
groups indicate that business groups in Pakistan are efficient economic
arrangements that substitute for missing or inefficient outside institutions
and markets, hence supporting the market failure argument.
@article{Ghani2011,
abstract = {We examine comparative financial performance of business groups in
Pakistan employing samples of firms listed on the Karachi Stock Exchange,
Our descriptive results show that group firms are larger in size
and have higher operating profits. Group firms also exhibit lower
sales growth variability over a five year period than non-business
group firms. Our statistical analysis reveals that business group
firms have significantly higher liquidity and significantly lower
financial leverage than the non-business group firms. More importantly,
business group firms are more profitable (higher ROA) than non-group
firms. Our results based on superior financial performance of business
groups indicate that business groups in Pakistan are efficient economic
arrangements that substitute for missing or inefficient outside institutions
and markets, hence supporting the market failure argument.},
added-at = {2011-11-13T04:52:20.000+0100},
author = {Ghani, WaQar I. and Haroon, Omair and Ashraf, Junaid},
biburl = {https://www.bibsonomy.org/bibtex/2404562d7a9cbe20e417fa0ab48df0eeb/edwardyanquen},
interhash = {bf13188a3b78406f284eb62789641f56},
intrahash = {404562d7a9cbe20e417fa0ab48df0eeb},
journal = {Global Journal of Business Research},
keywords = {finanzas instituciones pakistan},
note = {Keywords: Firm; Firms; Leverage; Stocks; Geographic Descriptors:
Pakistan; Geographic Region: Asia; Publication Type: Journal Article;
Update Code: 201102; Copyright: Copyright of Global Journal of Business
Research (GJBR) is the property of Institute for Business \& Finance
Research and its content may not be copied or emailed to multiple
sites or posted to a listserv without the copyright holder's express
written permission. However, users may print, download, or email
articles for individual use.},
number = 2,
pages = {27-39},
timestamp = {2011-11-13T04:52:21.000+0100},
title = {Business Groups' Financial Performance: Evidence from Pakistan},
volume = 5,
year = 2011
}