Department of Management Science
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Item 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 10091This 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.Item 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 9593The 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.Item mpact of Government Debt and Macroeconomic Indicators on Economic Growth in Pakistan(Library Information Services, COMSATS University Islamabad, Lahore Campus, 2024) Muhammad Imran Shafi; SP23-RBA-001; Dr. Samya Tahir; LHR TP 9438This study is conducted to investigate the relationship of government debt alongside other macroeconomic variables with Pakistan's economic growth from 1983 to 2022. Regardless of the progress Pakistan has made between 2001 to 2018, economy is still facing challenges of soaring inflation, current account imbalances, inefficient government spending, and requiring IMF support. We have analyzed how economic growth is affected by debt level, government expenditure, inflation, and current account deficits (or surplus). For this objective, we have used secondary time series data from the World Bank and IMF sources for 40 years, and analyzed using the Ordinary Least Squares (OLS) method, we discovered positive and significant relation among government debt and economic growth, for each 1% increase in debt level, there is 2.43% growth in GDP. However, there is a significant negative relationship of the current account balance and economic growth. While, there is no significant relationship found among government expenditure and inflation. The effective use of debt is important for economic development. However, debt needs to be in controllable levels. The current account deficits need to be addressed by reduction in imports and enhancing exports. Study has limitations due to adoption of on annual data and ignores short term relations. For future researches, other macroeconomic variables may be studied. Study has insights for policymakersItem Impact of Voluntary Disclosure Practices on Company’s Performance in Pakistan’s Petroleum Sector(Library Information Services, COMSATS University Islamabad, Lahore Campus, 2024) Maheen Nasir; CIIT/SP23-RBA-010/LHR; Dr. Samya Tahir; LHR TP 9452The study explores the influence of voluntary disclosures on the performance of Pakistan's petroleum sector, which faces fluctuating regulations, market volatility, and risks associated with corruption. Voluntary disclosures can enhance transparency, helping investors and stakeholders understand how companies manage these risks, thus potentially improving corporate integrity and mitigating fraudulent activities. The research aims to create a Voluntary Disclosure Index (VDI) tailored to the petroleum sector in Pakistan, analyse the extent of voluntary disclosure practices, and assess their impact on financial performance. Additionally, it highlights the importance of voluntary disclosure in building corporate reputation and brand equity through enhanced transparency, accountability, and stakeholder engagement. The literature indicates that voluntary disclosures significantly impact market valuation, investor confidence, and overall firm performance. Studies from various countries, including China, Saudi Arabia, UAE, Iraq, and Bangladesh, have shown that higher levels of voluntary disclosure correlate with better financial outcomes and stronger corporate governance. These findings suggest that strong ownership structures and legal frameworks are crucial for encouraging voluntary disclosure practices. The study uses a mixed-methods approach, combining qualitative and quantitative analyses of secondary data from annual reports of Pakistani petroleum companies for the fiscal years 2022-2023. A Voluntary Disclosure Index (VDI) was developed to evaluate the disclosure level of companies based on corporate governance, environmental policies, corporate social responsibility, risk management, and future prospects. Companies were then categorized into Excellent, Good, or Negligent Disclosure based on their VDI scores.Item 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 TahirA 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 PakistanItem Problems and Possible Solutions for Oil Marketing Companies in Pakistan(Library Information Services, COMSATS University Islamabad, Lahore Campus, 2023) Izhar Ali; FA22-RBA-016; Dr. Samya Tahir; LHR TP 8757The project report is primarily concerned with identifying and resolving problems that Oil Marketing Companies (OMCs) in Pakistan confront. The institutional and regulatory features of OMCs in the country are also covered in the project. OMCs are vital to Pakistan's energy sector, supplying companies and consumers with necessary petroleum products. However, a few obstacles prevent these businesses from operating efficiently and expanding. These Problems include shifting oil prices around the world, interruptions in the supply chain, limited infrastructure, and strict regulatory policies. The fluctuation of oil prices around the world is one of the biggest problems OMCs confront. Which have the potential to cause both financial instability and planning difficulty. Furthermore, supply chain interruptions, which are frequently brought on by natural disasters or geopolitical unrest, affect how consistently products are available to customers. OMCs must create resilient and flexible supply chain strategies in response to these disturbances. Limited infrastructure presents another difficulty for OMCs operating in Pakistan. Product delivery delays and inefficiencies can result from inadequate distribution and storage networks. This has an impact on the nation's overall energy supply in addition to the bottom lines of the affected companies. The operations of OMCs are made more complex by Pakistan's regulatory framework. Careful planning and coordination are necessary to comply with stringent regulations pertaining to pricing, quality standards, and safety precautions. Conflicts or overlaps in the requirements for compliance can result from the involvement of multiple regulatory bodies. Several strategies can be used to address these problems. To begin with, OMCs ought to diversify their product lines in order to lessen their reliance on a single energy source. This may entail looking into alternative fuel technologies and making investments in renewable energy sources. OMCs should also spend money on supply chain management systems that are driven by technology. In the event of supply chain disruptions, efficiency and responsiveness can be improved through automation and data-driven decision-making. Development of the infrastructure is also essential. Improved distribution and storage networks can result from cooperative efforts between OMCs and the government, guaranteeing a consistent supply of goods even in times of vi emergency. Processes for compliance can be streamlined by improving regulatory cooperation and communication between OMCs and pertinent authorities. Regular discussions, open reporting, and proactive interaction with regulatory agencies can all help achieve this.Item Internal Control on Financial Reporting in JU Associates Private Limited(2025) AYEZA KHALID CIIT/SP24-RBA-033/LHR; Dr. Samya Tahir; LHR TP 9821This study provides a comprehensive evaluation of the internal control environment at JU Associates Private Ltd, a private company operating in Pakistan's liquefied petroleum gas (LPG) industry. Using the COSO Internal Control – Integrated Framework as a model, the study investigates the effectiveness of internal controls over financial reporting. Data was gathered through structured interviews with employees from key departments, including information technology, finance, logistics, audit, and human resources. To find governance gaps, control flaws, and operational inefficiencies, a thematic analysis was used. The findings indicate several structural weaknesses in the company's internal control system. Some of the most important problems are not enough separation of roles, sloppy recordkeeping, still relying on manual Excel-based procedures even though SAP has been partially implemented, unreliable and unverified estimations of customs charges, and bad procedures for following up on audits. These problems make it more likely that people will commit financial fraud, break the law, and slow down the auditing process. The research indicates that these challenges arise from both procedural inaccuracies and more profound organizational cultural deficiencies. Governance and accountability are hurt by a lack of staff awareness, resistance to change, and a lack of leadership commitment to internal controls. The study suggests six strategic interventions to address these issues: formalizing standard operating procedures (SOPs) for customs documentation, creating a centralized digital records system, finalizing ERP (SAP) integration, improving role segregation, introducing proactive audit tracking mechanisms, and fostering a culture of internal control awareness throughout all departments. This analysis highlights key areas for enhancement and offers a structured action plan to enhance operational efficiency, compliance, and audit preparedness. JU Associates may greatly improve its financial integrity and governance structure by making sure that itItem 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 9824The 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