Firms' Aggressiveness and Respective Performance: An Empirical Study under Pakistani Scenery

Authors

  • Obaid Ur Rehman Lecturer at CFCBE, CECOS University, Peshawar Pakistan

DOI:

https://doi.org/10.37335/ijek.v5i1.49

Keywords:

Capital Structure, Firm’s Performance, ROI, ROA.

Abstract

The study investigates capital structure of all non-financial listed firms on Pakistan Stock Exchange (PSX) for the period of 2008 to 2014. To test the relation between firm aggressive behavior and its performance, the study uses exponential generalized least square regression by employing control variables. Levin, Hadri and ADF test are used to know the stationarity of data. Furthermore different diagnostic tests like VIF, Weisberg test for heteroskedasticity and Breusch and Pagan Lagrangian multiplier test for random effects are used to check the data normality. Results of the study reveals that financial managers’ aggressiveness regarding financial policy is negatively, while aggressiveness regarding investment policy is positively effecting the firm’s performance. The study also found that with the passage of time, firms in Pakistan have been devastating their performance. That’s why study found negative relation between firms’ age and dependent variables.

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Published

2017-06-30

How to Cite

Rehman, O. U. (2017). Firms’ Aggressiveness and Respective Performance: An Empirical Study under Pakistani Scenery. International Journal of Entrepreneurial Knowledge, 5(1). https://doi.org/10.37335/ijek.v5i1.49

Issue

Vol. 5 No. 1 (2017): International Journal of Entrepreneurial Knowledge

Section

Case studies

License

International Journal of Entrepreneurial Knowledge (ISSN 2336-2960) is published by the Center for International Scientific Research of VŠO and VŠPP in cooperation with the following partners:

  • University College of Business in Prague, Czech Republic
  • University of Entrepreneurship and Law, Prague, Czech Republic
  • School of Business and Administration of the Polytechnic Institute of Setúbal, Portugal
  • Faculty of Operation and Economics of Transport and Communications, University of Zilina, Slovakia
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