Bank Dependence, Crisis and Financial Performance of Firms in Pakistan

Abstract

The availability and choice of suitable financing source ever remained a challenging issue for financial managers of
corporate enterprises. The decision also considerably influenced the performance of firms in past, especially during
credit contraction and financial panic periods. The phenomenon is empirically examined in this study through
relative performance analysis of non-financial firms in context of global financial crisis. The sample is selected from different
sectors and firms are segregated on the basis of their bank financing level. The data of firm level financial variables were
extracted from annual reports and analyzed by using panel data technique.