In this study, we attempt to show empirical evidence of momentum profits in Karachi Stock Exchange (KSE) using monthly stocks returns data of 609 stocks over the period June 2004 to March 2014. Using Jegadeesh and Titman (1993) methodology, we find that investors can earn positive returns by...

In this study, the relationship between corporate cash holdings and corporate governance variables is tested in Pakistan. The sample consists of 309 non-financial firms listed on the Karachi Stock Exchange (KSE) over the time span of 2002 to 2010. The study uses several proxies for corporate...

This study analyzes the impact of corporate governance and ownership structure on earnings management for a sample of 372 firms listed on the Karachi Stock Exchange over the period 2003–10. We estimate discretionary accruals using four well-known models: Jones (1991); Dechow, Sloan, and...

During the stock market turmoil and later on in the year 2008, the Securities and Exchange Commission of Pakistan (SECP) suspended trading in futures products at the Karachi Stock Exchange (KSE) due to their proven destabilizing role in Global Financial Crises (GFC). On July 27th, 2009, the...

In this paper, we examine the possibility of an impact of the resumption of trading in Single Stock Futures (SSFs) on the dynamics (positive feedback trading and price volatility) of the underlying stocks in Pakistan's market. Specifically, we test the hypothesis that trading in SSFs promotes or...

This paper posits that the relevance and indeed the assumptions of the dividends cost minimization model are restricted to those countries where shareholders rights are well protected. Alternatively, we propose an “investor power” hypothesis, which is closely akin to the La Porta et al....

This paper empirically tests the existence and direction of causality between stock market index (KSE) and exchange rates in the post-floating exchange rate regime and vibrant stock market performance of Pakistan. The data period ranges from January 1998 to December 2009. Results of...

While the issue of the effect of stock index futures trading on the volatility of the underlying asset has been extensively examined in finance literature, the Single Stock Futures (SSFs) being relatively newer derivative products have not received much attention in the finance literature. Given...

This paper empirically examines the hypothesis that diffusion of information is not uniform across all sectors of a market. Large industries or industries where trading volume is substantially larger attract attention of a large number of investors who in turn make these industries...

This paper examines the impact of group - and family - ownership on financial performance of a sample of firms listed on the Karachi Stock Exchange from the year 2003 to 2008. Since previous studies have found ownership structure to be endogenously determined, we account for this problem by...