DEVELOPMENT FINANCING AND ECONOMIC GOVERNANCE: ANALYSIS OF THE LIQUIDITY CRISIS AND CIRCULARITY DEBTS IN PAKISTAN
Download| Volume 12 Issue 2 2016 | |
|---|---|
| Author(s): |
Dr. Muhammad Irfan Khan
Dr. Muhammad Ayub Khan Mehar
Dr. Athar Iqbal
|
| Abstract | This paper is based on the models derived by the researchers to explain the patterns of corporate governance, firms’ financial policies, and liquidity position. A deductive approach has been adopted to reconcile and examine the different models of corporate governance and firms’ financial policies. The study showed that corporate savings are a good predictor of the macro-level investment in a country. The magnitude of national investment will increase by improvement in corporate savings. The corporate savings indicate the expansion in business activities which may be an indicator of the trust and confidence of the private sector. On the other hand, it explains the financial health of the corporate sector, which may provide a significant portion of tax revenue to the government for developing projects in the public sector. The study has concluded that corporate governance is a significant variable in determining liquidity and circularity debts. In this way, corporate governance becomes a crucial determinant of national investment. The bad corporate governance may deteriorate the investment activities at the national level, which may damage the economy for the longer term. This study also indicates that capital structure and the patterns of ownership play important role in the determination of the corporate governance of an institution. |
| Keywords | no keywords |
| Year | 2016 |
| Volume | 12 |
| Issue | 2 |
| Type | Full Length Paper |
| Recognized by | Higher Education Commission of Pakistan, HEC | Category | "Y" | Journal Name | IBT Journal of Business Studies | Publisher Name | ILMA University | Jel Classification | - | DOI | http://dx.doi.org/10.46745/ilma.jbs.2016.12.02.01 | ISSN no (E, Electronic) | 2409-6520 | ISSN no (P, Print) | 2416-8393 | Country | Pakistan | City | Karachi | Institution Type | University | Journal Type | Open Access | Manuscript Processing | Blind Peer Reviewed | Format | Paper Link | http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/12.2/1.pdf | Page | 1-24 |