IMPACT OF POLITICAL STABILITY AND MANAGERIAL OWNERSHIP ON FIRM’S PROFITABILITY

  • Zeshan Anwar
  • Dr. Kausar Abbass
  • Sadia Shaikh
Keywords: Political Stability, Managerial Ownership, Pakistan, Profitability

Abstract

The vibrant business sector is a dynamic segment forPakistan’s economic development because it offersemployment to a larger population of skilled andunskilled labour; creates foreign reserves throughexports; and also satisfies local demand for theproducts. Moreover, the listed companies perform asignificant function in the growth of an economy,however, on pragmatic grounds, access to capital isevidenced as a matter of grave concern for the businesssector in Pakistan. Moreover, it has been observed thatin order to reduce the firms’ agency costs, managerialownership is utilized. Hence, in this essence, thisresearch investigates the relationship of politicalstability, managerial ownership, dividends, sales, andtotal assets with the firm’s profitability in Pakistanduring 2013-2017. The findings depict that thevariables of political stability, total assets, dividends,and sales, positively and significantly affect the firm’sprofitability, while, managerial ownership is insignificantly associated with profitability.

Author Biographies

Zeshan Anwar

Dr. Zeshan Anwar is an Assistant Professor in Department of Management Sciences, The University of Lahore, Pakpattan Campus, Pakpattan. His areas of research interests include the Corporate Social Responsibility, Corporate Governance, Firm Profitability, Cost of Capital, FDI, Financial Access and Behavioral Finance.Dr. Anwar’s full research profile can be viewed through his ORCID ID 0000-0001-6561-3666. He can be contacted via email at zeshananwar58@gmail.com

Dr. Kausar Abbass

Dr. Kausar Abbas is Assistant Professor in the Department of Management Sciences, The University of Lahore, Pakpattan Campus, Pakpattan, Pakistan. Her areas of research interests include Islamic Banking and Finance, International Finance, Corporate Social Responsibility and Financial Access. Her email ID is kausarsial@yahoo.com

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Published
2019-06-15
How to Cite
Anwar, Z., Abbass, D. K., & Shaikh, S. (2019). IMPACT OF POLITICAL STABILITY AND MANAGERIAL OWNERSHIP ON FIRM’S PROFITABILITY. Journal of Business Strategies, 13(1), 59-70. Retrieved from http://greenwichjournals.com/index.php/businessstudies/article/view/322