Department of Management Science

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Author: search.filters.author.Dr. Samya TahirSubject: search.filters.subject.Department of Management Sciences

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    THE IMPACT OF ACQUISITION ON SHAREHOLDER WEALTH CASE STUDY OF ROYAL BANK OF SCOTLAND PAKISTAN AND FAYSAL BANK LIMITED
    (Library Information Services, COMSATS University Islamabad, Lahore Campus, 2025) Rabiya Asim; CIIT/SP24-RBA-010-LHR; Dr. Samya Tahir; LHR TP 10091
    This project discussed the long term financial impact of the acquisition of Pakistan operations of the Royal Bank of Scotland into the Faysal Bank Limited in 2010. The project will seek to establish whether or not the acquisition has enhanced the shareholder wealth by using four typically utilized measures of financial performance, which are, Earnings per Share (EPS), Market Value per Share (MVPS), Return on Equity (ROE) and Price-to-Earnings (P/E) Ratio. It entails ex-post facto research design, which is quantitative and, it is founded on nine years of pre-acquisition content (2002-2010) and nine years of post-acquisition (2011-2019), all of which were collected with the usage of audited financial statements. Descriptive statistics show that all the four indicators declined after the acquisition. However, the Shapiro-Wilk based normality test indicated that the data were normally distributed and paired sample t-test could be used. The results indicate that EPS (p = 0.153) and P/E Ratio (p = 0.095) did not change significantly to mean that the acquisition had not produced a significant change on the earnings performance and investor sentiments. MVPS (p = 0.034) and ROE (p = 0.046) on the other hand dropped significantly and signaled the effect of the acquisition proving to be against the market value and profitability of the bank. The outcomes indicate that the acquisition failed to generate the long term value to the shareholders, and might have translated to financial burden due to the challenges to integrate the acquired company and its restructuring costs. The conclusion of the study is that the acquisition of RBS Pakistan did not help in raise the shareholder wealth of Faysal Bank, and in general, negatively influenced the crucial financial indicators. There have been recommendations to intensify the process of integrating upon acquisition, increase the cost, interaction with the investors, audit synergy, and reassessment on the future growth plans. The restraints provide the use of secondary data and financial- indicators, which excludes the opportunities of the future work that should be oriented to the qualitative variables, comparative bank researches, and event-studies.
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    Impact of Board Interlocking into Voluntary Disclosure: Moderating Roles of Board Independence, Institutional Ownership, and Family Ownership
    (Library Information Services, COMSATS University Islamabad, Lahore Campus, 2024) Remsha Shahzady; CIIT/SP21-RBA-102/LHR; Dr. Samya Tahir; LHR TP 9593
    The research examines the relationship between Board Interlocking (B_Int) and Voluntary Disclosure (VD) practices within firms listed on Stock Exchange Pakistan (PSX). The study further investigates the moderating roles of Board Independence (B_Ind), institutional Ownership (Inst_Own), and Family Ownership (Fam_Own) on the relationship between B_Int and VD. B_Int where members of one company sit on other boards. This research examines how B_Int negatively affects how much information companies voluntarily disclose to the public. This happen when companies become more secretive and board members prioritize protecting their networks over transparency. It also examines how factors like B_Ind, Inst_Own, and Fam_Own influence this negative relationship. This negative impact of B_Int on VD is lessened when boards have more B_Ind. B_Ind does not have strong personal ties with company and not involve in company’s management. They encourage unbiased decision-making for all shareholders. They encourage openness and accountability. Higher level of Inst_Own help to reduce the negative effect of B_Int on VD. Inst_Own represents the percentage of company’s share owned by large organizations. They invest on the behalf of their clients and influence company’s decisions due to the size of their holdings. Their presence pushes companies to disclose more information. Fam_Own boost the negative impact of B_Int on VD. In Fam_Own families hold significant shares and influence company’s decision and management. Family controlled companies are more inclined to keep information private and reduce overall transparency. This study uses agency theory and legitimacy theory to explain how B_Int affects VD. Agency theory explains B_Int help to align interests between shareholders and management. Legitimacy theory helps to understand that companies seek to gain and maintain approval from society and stakeholders. By showing transparency and sharing information companies build trust. Companies ensure that their actions are seen as acceptable and legitimate. This research will use Regression Analysis method to measure the impact of B_Int on VD and the moderating variables B_Ind, Inst_Own, and Fam_Own. Regression model quantitatively assess the relationship between these variables. This model will help to understand how these variables positively or negatively influence VD practices. And data will be collected from annual reports available on PSX.
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    Stock Market Bubbles and their Determinants: An Empirical Investigation on the Developing Economies
    (Library Information Services, COMSATS University Islamabad, Lahore Campus, 2023) Rehan Jamil; FA19-RMS-017; Dr. Samya Tahir
    A country’s stock market is a fundamental pillar of the country’s economy that reflects investors’ sentiment and propels economic growth. Changes in the monetary policy, i.e., interest rate and money supply, contribute to the formation of stock market bubbles. In the developing stage of the bubble, economic activity increases significantly. On the contrary, economic activities slow down in the event of a bubble burst. Historically, financial experts have observed that extensive credit growth or asset market bubbles usually lead to financial crises. Credit growth usually stems from the reduction of interest rates and weaker regulatory control, while stock market bubbles are influenced by GDP growth. So, the need for early detection of the stock market bubble increased in developing economies. This study first detected the stock market bubbles in the leading index of 49 developing economies from 1991 to 2022 and observed bubbles in 41 (i.e., 83.67%) leading stock exchange indexes of the developing countries. Secondly, this study proved that interest rates have a heterogeneous impact of interest rates on the stock market bubble. Thirdly, confirmed that the money supply (M2) positively impacts the stock market bubble. This study contributed in numerous ways, i.e., by identifying the bubbles in the leading stock exchanges and identifying the determinants of the stock market bubble in the developing economies, i.e., the interest rate, money supply (M2), and gross domestic product proxied by industrial growth. Secondly, identified the determinants of the stock market bubbles in developing economies from 2001 to 2022, particularly Pakistan
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    Exploring the Nexus of Senior Management Support, Internal Audit Activities Effectiveness and Information Technology Capabilities: Safeguarding Against Fraud in Pakistan's Banking Sector
    (Library Information Services, COMSATS University Islamabad, Lahore Campus, 2025) Arooj Naseem; FA22-RMS-004; Dr. Samya Tahir; LHR TP 9824
    The study aims to examine the effect of senior management support (SMS) on internal audit activities effectiveness (IAAE) and fraud mitigation (FM) with information technology capabilities (ITC) as a moderator in Pakistan's banking sector. In the context of Pakistan's banking industry, this study intends to investigate the impact of senior management support on the effectiveness of internal audit activities and fraud mitigation, with information technology capabilities serving as a moderating factor. It provides empirical understanding of the ways in which different parts of an organization interact to influence anti-fraud measures. The study contributes to the current discourse on corporate governance, especially in a developing country with a complicated financial system and a high rate of fraud. The results have significant implications for enhancing financial discipline, regulatory procedures, and governance frameworks. The study fills a significant research gap and provides useful information for financial institutions and regulators by combining information technology capabilities, internal audit activities effectiveness, and senior management support into an integrated framework. The study uses Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess a conceptual framework based on Agency Theory and the Resource-Based View (RBV). The findings show that fraud mitigation benefits from senior management assistance both directly and indirectly (via IAAE). Effective internal auditing serves as a powerful moderator, highlighting the significance of leadership commitment, resources and audit function autonomy. Although IT can help fraud control systems, it does not by itself increase audit effectiveness, as seen by statistically insignificant moderating effect of IT capabilities on the IAAE–FM connection. These results demonstrate the value of institutional auditing capabilities and strategic management engagement in combating fraud, with technology playing a supporting rather than a central role. The study offers a theoretical framework tailored to the developing countries, which influences both academic research and practical risk management practices in developing economies