An Investigation of Pakistan’s Manufacturing Sector Corporate Investment Under Financial Liberalization
Keywords:
Financial Liberalization, Firm Level Investment, Profitability, Tangibility, Liquidity, Risk, and Growth.Abstract
Previous studies at macro level resultantly favor the financial
liberalization and growth of a country. On the other side the
studies conducted at the micro level show mixed results and
there is a dearth of literature for accepting/rejecting the
notion of financial liberalization at the micro level. The
present study examines the impact of Financial Sector Reforms
on the Investment of Manufacturing Sector listed at Pakistan
Stock Exchange. A unique index for measuring the Financial
Liberalization is developed obtaining the data from Financial
Sector Assessment Progress Review Report (1991-2004) and
Economic Survey of Pakistan (2005-2014). The data for
manufacturing firms is extracted from Balance Sheet Analysis
published by State Bank of Pakistan. The sample includes the
companies that remained listed at Pakistan Stock Exchange
from 1993 to 2014 in sample. Separate analyses were made
on different manufacturing sectors that includes Textiles,
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