Browsing by Author "Dr. Muhammad Ali Jibran Qamar"

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Impact of Merger and Acquisition announcement on stock returns: Evidence from Pakistan.
(Library Ifnormation Services, CUI Lahore, 2016) Sidra Butt; CIIT/FA13-MBO-026/LHR; Dr. Muhammad Ali Jibran Qamar; LHR TP 4379
This study examines a sample of 18 Merger and Acquisition announcements in Pakistan during the period of 2006-2015 and investigates the impact of M&A announcements on stock returns and trading volume of participative firms. Event study methodology is used to calculate the abnormal returns and the volatility of trading volume of 36 listed and publicly traded financial and non-financial firms around 11days 21days and 31days event window. Analysis indicates significant positive abnormal returns of bidding firms for all three event windows, while target firms earn significant positive abnormal return of 6.7% for 31 day event window. At the same time, for 11day and 21 day window insignificant positive abnormal return is observed for target firms. Further, this study also finds an insignificant increase in trading volume of target firms within 5 days after the announcement date. While trading volume of bidding firms shows drop line after the announcement date for all three event windows. Comment
Performance Persistence and Predictive Ability of Islamic and Conventional Mutual Funds: A Case of Pakistan
(Library Information Services, COMSATS University Islamabad, Lahore Campus, 2022) Bila Nafees; SP13-PMS-002; Dr. Muhammad Ali Jibran Qamar; LHR TP 7734
This study aims to investigate the performance persistence and predictive ability of different fundamental factors for Islamic and conventional open-ended mutual funds (MF) operating in Pakistan. The evaluation of performance persistence entails an investigation of the lucrative efficiency and strategic behaviour of Islamic and conventional open-ended MFs in Pakistan. The lucrative efficiency refers to the risk adjusted performance of Islamic and conventional open-ended MFs. Meanwhile, strategic behaviour refers to the selectivity skills and market-timing abilities of Islamic and conventional open-ended MF managers who can invest in the capital market. Our analysis of predictive ability entails an investigation of the role of different factors, such as risk premium, value premium, size premium, and momentum premium, in explaining the expected returns of Islamic and conventional open-ended MFs that can invest in the capital market. This study has utilised survivorship biased free sample to avoid spurious results. The sample set covers the span from 2010-2016 to analyse the lucrative efficiency and strategic behaviour of Islamic and conventional MFs. Meanwhile, the sample set extends from 2011-2016 to investigate the predictive ability of different factors for Islamic and conventional open-ended MFs in Pakistan. The overall results indicate that most Islamic and conventional MFs have underperformed in terms of risk adjusted performance. Meanwhile, the risk-adjusted performance of conventional MFs is better than that of Islamic MFs. The overall results also suggest that most managers of Islamic and conventional MFs possess poor stock-selection skills and exhibit bad market timings abilities. Comparatively, Islamic MF managers possess better stock selection skills and exhibit better market timing abilities than their conventional counterparts. Moreover, the overall results of CAPM, Fama and French three-factor model and Carhart four-factor and Fama and French five factor model are quite consistent. The overall results suggest that risk premium and value premium play a vital role in predicting the returns of Islamic and conventional s. The size factor is only significant for conventional MFs. The momentum, profitability and investment premium are insignificant for Islamic and conventional MFs in Pakistan.
Prediction and Indirect Costs of Bankruptcy: A Multi-Stage Approach to Financial Distress
(Library Information Services, COMSATS University Islamabad, Lahore Campus, 2020) Umar Farooq; FA12-PMS-009; Dr. Muhammad Ali Jibran Qamar; LHR TP 5948
This dissertation investigates corporate failure from three perspectives using a sample of non-financial firms listed at Pakistan Stock Exchange. First, the dynamic behaviour of different stages of financial distress were explored. Second, a prediction model of multistage financial distress was developed. Third, impact size and determinants of indirect cost of financial distress were studied. To investigate these three perspectives, the data of 321 on going and 91 delisted non-financial firms is extracted from annual publications of State Bank of Pakistan during 2002-2015. This research starts with the proposed dynamic framework of multistage financial distress showing multiple adverse heterogeneous events leading a healthy firm closer to bankruptcy progressively. It is found that initially healthy firms face profitability problems or mild liquidity issues. While continuity of both the problems leads to severe liquidity that results in bankruptcy. This research also developed a machine learning model to forecast such profitability problem, mild liquidity and severe liquidity. In doing so, criticisms on prior prediction models particularly regarding sampling, feature selection and model selection are explored using Systematic Literature Review. This research contributes by applying recommended solutions of such criticisms to obtain more accurate multistage financial distress prediction model. Results showed that the proposed model predicted multistage financial distress with 84.06% accuracy. This accuracy increased to 89.57% when relevant cut-off values were applied. Furthermore, the indirect cost of financial distress was studied using the sample of on going firms that were healthy in the previous year and documented positive gross profit. To measure indirect cost, appropriate measure of distress, receivable and inventory management are used based on the recommendations of Systematic Literature Review. Results showed that healthy firms do not lose their market share when faced with profitability problems or mild liquidity issues. Conversely, leverage showed a nonlinear relation with indirect cost. It was also found that healthy firms that remain healthy should increase their receivables and inventory to capture more market share. However, results revealed that firms facing profitability problems should follow industry averages for receivables management and hold more inventory x to recover from profitability problems. Conversely, healthy firms that face mild liquidity issues can decrease their receivables and inventory to enhance their liquidity position without affecting market share. This dissertation provides useful practical implications for managers to respond during financial distress. The results will help stakeholders to recognize intensity of financial problems earlier in order to respond accordingly. Moreover, this dissertation provides useful insight that how managers can minimize the adverse effects of indirect cost of financial distress in terms of loss of opportunistic market share.
The Impact of Contractual Hiring on The Performance of Project Based Organizations.
(Library Information Services, COMSATS University Islamabad, Lahore Campus, 2020) Muhammad Hassan Nasir; SP17-RPM-008; Dr. Muhammad Ali Jibran Qamar; LHR TP 6541
The concept of contractual hiring is gradually increasing with the latest innovations as now days the trend of Project-based organization is dominant and people are hired on contractual basis. The project-based structured organizations are known as „Projectification‟ and these are considered as the gateway to the innovation. Human resource management and traditional trends of hiring the permanent employees is different for contractual hiring. Similarly, the temporary employees have different concerns at their workplace in contrast to the permanent employees. Due to which, the organizational commitment is affected. The employees hired on the contractual terms face different set of challenges related to work-life balance, job security and morale. These factors influence the productivity levels of the project targets. In lieu of considered condition, it is observed that employees hired on the temporary basis are less committed to the project deliverable which leads to unscheduled turnovers of the employees. These turnovers have an impact on the organizational performance. In order to sustain the growing market challenges, the organizations need to lower the turnover rate of the employees and need to work on the low morale and other associated factors. For statistical analysis, data is gathered from the Pakistan‟s largest IT industry as Pakistan is one of the leading exporters of software industry. The IT industry in developing country hires employees on the contractual basis. In order to collect data, a questionnaire is formatted and data from IT industry employees of the Pakistan is target population. A quantitative data collection technique is used to collect data and AMOS is used for the data analysis