IMPACT OF LEVERAGE OR DEBT MANAGEMENT ON STOCK RETURNS: EMPIRICAL EVIDENCE FROM FUEL &ENERGY & TEXTILE SECTOR OF PAKISTAN
Journal Title: Academic Research International - Year 2017, Vol 8, Issue 1
Abstract
The ultimate objective of every business organization is to manage risk and maximize the returns. This paper aim to investigate the impact of debt/leverage management on stock returns of listed companies on Pakistan Stock Exchange. For the current research the data has been collected from Fuel & energy sector and Textile sector of Pakistan for the period 2006-2011. The financial ratio analysis technique was used to measure debt management while annual stock returns were collected from the PSE website. 5 financial ratio which were used in current study to calculate debt management predominantly included Net debt to EBITDA, Net debt to Equity, Interest coverage Ratio, Asset to Equity and Cash flows from operations to Net Debt. SPSS 20 version was used to examine the data and Pearson correlation & Ordinary Least Square regression analysis were performed to estimate the results. Findings demonstrated that more the organizations focus on leverage management, more would be the stock returns of the companies. The research also includes the recommendations for the future researchers.
Authors and Affiliations
Zaib Maroof
Keywords
Related Articles
- EP ID EP222890
- DOI -
- Views 99
- Downloads 0
Selectivity of Fishing Gears and Their Effects on Fisheries Diversity of Rabnabad Channel of Patuakhali District in Bangladesh
The Rabnabad is a marine channel, harbor of plentiful aquatic resources, situated at southern district of Patuakhali in Bangladesh. An investigation has been carried out on three different selected spots (S1, S2 and S3)...
THE INNOVATIVE SERVICE MODEL: A STUDY ON TOUR GUIDE SERVICE DESIGN IN TAIWAN BY ICT APPLICATION
Tour guiding issues were identified through a series of in-depth and focus interviews and integrating many secondary data. Based on some new findings, a set of recommendations was formulated. A key recommendation includ...
THE IMPACT OF THE EDUCATOR STUDY GROUP MODEL ON THE PROFESSIONAL DEVELOPMENT OF TEACHERS OF MAINSTREAM ELEMENTARY CLASSROOMS*
The purpose of this study is to investigate the effects of the educator study group model on the professional development of teachers of mainstream elementary classrooms. The study was designed as a case study composed...
AGRICULTURAL LANDUSE IN SUB-URBAN LAFIA OF NASARAWA STATE, NIGERIA
The main aim of this paper is to highlight the current landuse for Agriculture in the area and the specific objectives were to identify different category of landuses. The geo-referenced Google earth image of the area...
Software Copyright and the Electronic Security System: Specific Issues Implementing Software Checker for Legal Writing
Under TRIPs Agreement, computer program or software is protected through copyright regime. Indonesia as a member of TRIPs also protects software through the Act No. 19 of 2002 concerning Copyright. Regarding the rapid de...