This paper explores the issue of creative accounting and evidence of its use in Pakistan. The financial characteristics of Pakistani companies, officially or publically identified for using some form of creative accounting are investigated and explored. Through the use of financial ratios and a...

Firms with high sensitivity to economic uncertainty (uncertainty beta) can be desirable for the investors as a hedging tool, which increases the demand for these stocks. High sensitivity to economic uncertainty can alleviate the flow-driven trading (price) pressure created by mutual funds when...

Firms with high political sentiment can be desirable for the investors as a hedging tool against political risk, which increases the demand for their stocks. Our analyses show that political sentiment can alleviate the flow-driven trading pressure created by mutual funds when they sell their...

We examine the importance of variable output (Gross Domestic Product (GDP) growth rate) on the preferences of the policy makers. We do so by examining the effect of output regimes on the form of monetary policy implemented by the central banks. We use simple monetary policy rules to characterize...