Vol. 26 No. 1 (2023)

Articles

• Open Access Article Macroeconomics

  10 Pages Download PDF: Sustainable Working Capital and Financial Performance in Cement Industry of Pakistan: An OLS Approach*

  Sustainable Working Capital and Financial Performance in Cement Industry of Pakistan: An OLS Approach*

  Ali Raza, Turgut Tursoy, Sadam Ali Balal

  https://doi.org/10.36923/economa.v26i1.224

  This research aims to demonstrate for the first time how the Pakistani cement sector's financial health is impacted by sustainable working capital. The cement Industry uses sustainable working capital techniques and practices for magnificent financial outcomes. Considering the importance of these profitable techniques, we practice these in cement firms with a sample size of 25 cement firms listed in the Pakistan stock market (PSX) from 1997-2022. The data is collected from annual reports available on the financial statements. The current ratio and Quick ratio are measured for liquidity. Ordinary Least Square & correlation analysis indicates that the cash conversion cycle (?1= -0.564, p= 0.00), Current ratio (?2= -0.20, p= 0.040), Quick ratio (?3= -0.585, p= 0.000) and Inventory Turnover ratio (?4= -0.244, p= 0.004) have a negative effect on financial performance (Tobin's Q). This study helps policymakers that can handle liquidity Sustainable working capital for the cement industry.

  pp. 1-10 Abstract views:678 Downloads:383

• Open Access Article Economics

  9 Pages Download PDF: Macroeconomic Factors, Corporate Governance, Assets Structure, And Firm Value: Nairobi Securities Exchange Kenya

  Macroeconomic Factors, Corporate Governance, Assets Structure, And Firm Value: Nairobi Securities Exchange Kenya

  Barine Nkonge Habakkuk , Kariuki Samuel Nduati, Kariuki Peter Wang’ombe

  https://doi.org/10.36923/economa.v26i1.229

  The study investigated the moderating effect of macroeconomic factors on the relationship between corporate governance, asset structure, and the value of firms listed at the Nairobi Securities Exchange in Kenya and set within the broader context of global financial markets, where the value of listed firms has declined despite their significant presence, with over 41,000 firms valued at USD 80 trillion. The study used a causal-comparative research methodology, relying on secondary data collected from listed firms on the Nairobi Securities Exchange from 2010 to 2019. Panel data analysis and multiple linear regression were the main methods employed to analyze the data. The study results indicate that macroeconomic factors do not appear to moderate the relationship between corporate governance practices and firm value. However, it is noted that the interaction between asset structure and macroeconomic factors was significant. The paper found that macroeconomic factors do not moderate the relationship between corporate governance and the value of firms listed at the Nairobi Securities Exchange. However, they do have a moderating effect on the relationship between asset structure and firm value in this specific context

  pp. 11-19 Abstract views:561 Downloads:191

• Open Access Article Finance

  8 Pages Download PDF: Cash Management: A Key Driver of Performance for Conventional Banks in Pakistan

  Cash Management: A Key Driver of Performance for Conventional Banks in Pakistan

  Ali Raza, Hani Na’el Al- Abdallat , Ahsan-ul-Haq Shaikh

  https://doi.org/10.36923/economa.v26i1.225

  This research examines the critical influence of cash management on the financial efficacy of the conventional banking sector in Pakistan. This study represents the initial attempt to assess the influence of liquidity, debt ratio, and bank size on return on assets among five conventional banks in Pakistan. Information was obtained from audited annual reports from publicly traded banks that span from 2017 to 2021. The results indicate a significant positive correlation between liquidity and return on assets (ROA). Additionally, a significant negative association between debt ratio and ROA is examined. Furthermore, the study reveals that the size of banks exhibits a significant negative relationship with ROA. The study will provide valuable insights for financial managers, portfolio analysts, treasurers, and controllers on the practical implementation of contemporary cash management strategies.

  pp. 20-27 Abstract views:433 Downloads:223