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The purpose of this paper is to evaluate the degree to which Islamic banks in Pakistan use risk management practices (RMPs) and techniques in dealing with different types of risk.
Abstract
Purpose
The purpose of this paper is to evaluate the degree to which Islamic banks in Pakistan use risk management practices (RMPs) and techniques in dealing with different types of risk.
Design/methodology/approach
A standardized questionnaire is used which covers six aspects: understanding risk and risk management (URM), risk assessment and analysis (RAA), risk identification (RI), risk monitoring (RM), credit risk analysis (CRA) and RMPs.
Findings
This study found that the Islamic banks are somewhat reasonably efficient in managing risk where URM, RM and CRM are the most influencing variables in RMPs.
Research limitations/implications
The paper's findings are limited to the RMPs of Islamic banks in Pakistan.
Originality/value
This paper explores the RMPs of the Islamic banks in Pakistan. The results can be used as a valuable feedback for improvement of RMPs in the Islamic banks in Pakistan and will be of value to those people who are interested in the Islamic banking system.
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Keywords
Ihtisham Abdul Malik and Shehla Amjad
This paper aims to investigate the impact of FDI on the stock market development in Pakistan, both aggregate as well as sector wise, the reason being that no such work has been…
Abstract
Purpose
This paper aims to investigate the impact of FDI on the stock market development in Pakistan, both aggregate as well as sector wise, the reason being that no such work has been carried out in this context.
Design/methodology/approach
The study is based on secondary data for the period 1985‐2011. Johansen co‐integration approach is used for determining relationship among variables for aggregate stock market development in long run. Granger causality test is also applied to check the causal relation between the variables. Correlation analysis and regression analysis has been used for examining the relationship of sector wise development, FDI and economic growth in Pakistan.
Findings
The results support the positive role of FDI in boosting the aggregate stock market development in long run. Bi‐directional causality between FDI and economic growth has been found along with the uni‐directional causality between aggregate stock market development and economic growth. For sector wise development the relationship of FDI is positive in the sectors where FDI concentration is high in recent years whereas and negative in other sectors.
Originality/value
Co‐integration coefficients showed a positive and statistically strong relationship between FDI and aggregate market capitalization thus reflecting the complementary role of FDI in the stock market development of Pakistan.
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Keywords
The purpose of this paper is two folds: first, to analyze the long-run relationship between terrorism and key macroeconomic indicators (GDP growth, GDP per capita, inflation and…
Abstract
Purpose
The purpose of this paper is two folds: first, to analyze the long-run relationship between terrorism and key macroeconomic indicators (GDP growth, GDP per capita, inflation and unemployment) and second, to determine the direction of causality between these variables in Pakistan.
Design/methodology/approach
The relationship between terrorism and various macroeconomic indicators is analyzed by applying Johansen cointegration analysis. Furthermore, the causality between terrorism and macroeconomic indicators is tested by applying Toda Yamamoto Granger causality test.
Findings
The results show that there exists a long-run relationship between terrorism and key macroeconomic indicators. Furthermore, the results suggest that there exists a bi-directional causality between terrorism and inflation. The causality between GDP per capita, unemployment, GDP growth and terrorism is unidirectional.
Originality/value
There is a lack of research work conducted to analyze the long-run relationship and direction of causation between terrorism and various macroeconomic indicators specifically for Pakistan. The current paper fills the gap in the literature by using sophisticated econometric techniques and recent data set to provide the evidence of the relationship between terrorism and various macroeconomic indicators.
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