Yasin Mahmood - Academia.edu (original) (raw)

Papers by Yasin Mahmood

Research paper thumbnail of Review of: "Determinants of Internal Financing: Small and Medium Enterprises in Pakistan

Submission of review report of Manuscript "Determinants of Internal Financing: Small and Medium E... more Submission of review report of Manuscript "Determinants of Internal Financing: Small and Medium Enterprises in Pakistan". I express my gratitude for extending the invitation to review the manuscript titled "Determinants of Internal Financing: Small and Medium Enterprises in Pakistan". Having meticulously assessed the manuscript, I find its content intriguing and promising. The study presents valuable insights that can prove beneficial to a wide array of stakeholders, encompassing SME managers, financial institutions, regulatory bodies, and current and potential shareholders. However, at its current stage, the manuscript does not meet the criteria for publication. With the incorporation of the provided recommendations, it holds the potential for publication. The detailed review report is provided below." Recommendation Major Revision Sincerely, Yasin Mahmood PhD (Finance)

Research paper thumbnail of The Determinants of Corporate Financial Flexibility: Empirical Evidence from Listed Firms in PakistanThe Determinants of Corporate Financial Flexibility: Empirical Evidence from Listed Firms in Pakistan

Financial flexibility is an emerging area of study both, in developing as well as developed econo... more Financial flexibility is an emerging area of study both, in developing as well as developed economies. In previous studies, researchers examined the financial flexibility from various aspects and used its various measures, but there are some important aspects, which have not been examined yet. For example, there is no consensus regarding a well-defined measure of financial flexibility, what are the various internal and external determinants of financial flexibility? How financial flexibility can be affected by variation in corporate governance setting etc. The objectives of this study are to examine the various measures of financial flexibility to identify an appropriate measure, and to identify various factors that determine firms' financial flexibility. These factors are categorized as firm specific financial, corporate governance characteristics and country specific dynamics. The moderating effects of ownership concentration, managerial ownership, group affiliation, life cycle stage and CEO duality were also studied. Several measures of financial flexibility, such low leverage, spare debt capacity, cash holdings, Altman z score, modified z score and cash flow volatility were used to identify and analyze firm and country specific factors. The examination of this study was carried out by using unbalanced panel data of 193 nonfinancial listed firms in Pakistan Stock Exchange. The panel logistic regression applied for analysis over the period of 1991 to 2014.The data was collected from the annual financial statements of firms, World Bank database and State Bank of Pakistan. This study also differentiated and categorized the different sources and measures of financial flexibility and found that financial flexibility in the form of low leverage, modified Altman z score, Altman z score, are the first, second and third best measures of financial flexibility. Spare debt capacity, cash flow volatility and cash holding are the remaining good measures of financial flexibility respectively. The findings of the study indicate that firm specific financial, corporate governance related non-financial factors and country specific factors affect the corporate financial flexibility. Firms strive to attain and maintain the financial flexibility. Among firm specific factors, size of firm, tangibility, dividend, and age of the firm are the most significant determinants of financial flexibility. Among country specific factors, interest rate, inflation, equity market development and banking sector development are significant determinants of financial flexibility. However, equity market development is more economically and statistically more significant than banking sector development. The moderating effect of ownership concentration, managerial ownership, group affiliation, life cycle stage of firm and CEO duality were also studied. It was found that these variables have direct impact on FF and they moderate the relationship between firm specific factors and financial flexibility. Among these moderator life cycle stages, managerial ownership, and group affiliation are the most significant moderating variables. Overall, this study provides the evidence that FF measured by low leverage, spare debt capacity, cash holdings, Altman z score, modified z score and cash flow volatility may be affected by firm specific and country specific factors. Among all proxies of financial flexibility, low leverage and spare debt capacity were the most important and significant measures and sources of financial flexibility. These results are robust across alternative measures of financial flexibility.

Research paper thumbnail of Exploring the Relationship between Financial Distress, Financial Flexibility, and Firm Performance: Empirical Evidence from Pakistan Stock Exchange

Purpose– This main purpose of this paper is to empirically investigate the impact of corporate fi... more Purpose– This main purpose of this paper is to empirically investigate the impact of corporate financial flexibility (FF) on financial distress and performance of firms listed on the Pakistan Stock Exchange (PSX). It enables to know how financial flexibility affects the firm financial strength, financial distress, and corporate performance. Design/methodology/approach –This study focuses on a firm level data of 192 non-financial firms covering the period 1992 - 2014. The fixed effect model logistic regression is applied by using unbalanced panel data to examine the impact of financial flexibility on financial distress, and performance of sample firms. Findings – The results reveal that financially flexible firms are less likely to face financial distress. As firms have more financial flexibility, the probability of financial distress decreases as well. It is also found that financially flexible firms are more likely to perform well than counterpart firms. By using the Altman z score...

Research paper thumbnail of Do corporate financial flexibility, financial sector development and regulatory environment affect corporate investment decisions?

Journal of Economic and Administrative Sciences

PurposeThis study aims to examine how corporate financial flexibility, financial sector developme... more PurposeThis study aims to examine how corporate financial flexibility, financial sector development and the regulatory environment influence corporate investment decisions in an emerging economy after controlling for several macroeconomic factors.Design/methodology/approachThe authors estimated random-effects models to empirically examine the impacts of corporate financial flexibility, banking sector development, equity market development, regulatory quality and corruption on corporate investment decisions. The empirical analysis is based on an unbalanced annual panel data set of a sample of 198 non-financial firms listed on the Pakistan Stock Exchange for the period 1992–2018.FindingsThe results show that financially flexible firms tend to invest more. The increased banking sector development, stock market development and better regulatory quality play a pivotal role for enabling firms to increase their investment ability. However, the results reveal that corruption acts as a barri...

Research paper thumbnail of Do banking sector concentration, banking sector development and equity market development influence firms’ financial flexibility? Evidence from Pakistan

South Asian Journal of Business Studies

Purpose The purpose of this paper is to investigate the role of banking sector concentration, ban... more Purpose The purpose of this paper is to investigate the role of banking sector concentration, banking sector development and equity market development in corporate financial flexibility (FF). Design/methodology/approach The study used annual data for the period from 1991 to 2014 to examine the relationship between banking sector concentration, banking sector development, equity market development and corporate FF; hypotheses were tested using an unbalanced panel logistic regression model. Findings The paper provides empirical insights into the relationships between macroeconomic factors and corporate FF. The results suggest a substantial change in FF across firms; banking sector concentration discourages firms from borrowing, leading to the reduction of corporate borrowing, consequently an increase in FF can be observed. Banking sector development facilitates debt financing, hence reducing FF. Equity market development also has a positive impact on FF, as it is a substitute for debt...

Research paper thumbnail of The role of macroeconomic and institutional factors in creating corporate financial flexibility

Management Decision

Purpose The purpose of this paper is to investigate the role of macroeconomic factors and the ins... more Purpose The purpose of this paper is to investigate the role of macroeconomic factors and the institutional environment on corporate financial flexibility (FF). Most studies focus on well-developed financial markets and very little is known about corporate FF in less developed financial markets and emerging markets (Buvanendra et al., 2016). The present study contributes to filling this gap in the literature and provides a more practical and functional framework to assess the FF of firms located in emerging economies. Design/methodology/approach The study used annual data for the period from 1991 to 2018. To examine the relationship between macroeconomic indicators, institutional environment and corporate FF, hypotheses were tested using an unbalanced panel logistic regression model. Findings The paper provides empirical insights into the relationships between macroeconomic factors, institutional environment and corporate FF. The results suggest a substantial change in FF across fir...

Research paper thumbnail of Review of: "Determinants of Internal Financing: Small and Medium Enterprises in Pakistan

Submission of review report of Manuscript "Determinants of Internal Financing: Small and Medium E... more Submission of review report of Manuscript "Determinants of Internal Financing: Small and Medium Enterprises in Pakistan". I express my gratitude for extending the invitation to review the manuscript titled "Determinants of Internal Financing: Small and Medium Enterprises in Pakistan". Having meticulously assessed the manuscript, I find its content intriguing and promising. The study presents valuable insights that can prove beneficial to a wide array of stakeholders, encompassing SME managers, financial institutions, regulatory bodies, and current and potential shareholders. However, at its current stage, the manuscript does not meet the criteria for publication. With the incorporation of the provided recommendations, it holds the potential for publication. The detailed review report is provided below." Recommendation Major Revision Sincerely, Yasin Mahmood PhD (Finance)

Research paper thumbnail of The Determinants of Corporate Financial Flexibility: Empirical Evidence from Listed Firms in PakistanThe Determinants of Corporate Financial Flexibility: Empirical Evidence from Listed Firms in Pakistan

Financial flexibility is an emerging area of study both, in developing as well as developed econo... more Financial flexibility is an emerging area of study both, in developing as well as developed economies. In previous studies, researchers examined the financial flexibility from various aspects and used its various measures, but there are some important aspects, which have not been examined yet. For example, there is no consensus regarding a well-defined measure of financial flexibility, what are the various internal and external determinants of financial flexibility? How financial flexibility can be affected by variation in corporate governance setting etc. The objectives of this study are to examine the various measures of financial flexibility to identify an appropriate measure, and to identify various factors that determine firms' financial flexibility. These factors are categorized as firm specific financial, corporate governance characteristics and country specific dynamics. The moderating effects of ownership concentration, managerial ownership, group affiliation, life cycle stage and CEO duality were also studied. Several measures of financial flexibility, such low leverage, spare debt capacity, cash holdings, Altman z score, modified z score and cash flow volatility were used to identify and analyze firm and country specific factors. The examination of this study was carried out by using unbalanced panel data of 193 nonfinancial listed firms in Pakistan Stock Exchange. The panel logistic regression applied for analysis over the period of 1991 to 2014.The data was collected from the annual financial statements of firms, World Bank database and State Bank of Pakistan. This study also differentiated and categorized the different sources and measures of financial flexibility and found that financial flexibility in the form of low leverage, modified Altman z score, Altman z score, are the first, second and third best measures of financial flexibility. Spare debt capacity, cash flow volatility and cash holding are the remaining good measures of financial flexibility respectively. The findings of the study indicate that firm specific financial, corporate governance related non-financial factors and country specific factors affect the corporate financial flexibility. Firms strive to attain and maintain the financial flexibility. Among firm specific factors, size of firm, tangibility, dividend, and age of the firm are the most significant determinants of financial flexibility. Among country specific factors, interest rate, inflation, equity market development and banking sector development are significant determinants of financial flexibility. However, equity market development is more economically and statistically more significant than banking sector development. The moderating effect of ownership concentration, managerial ownership, group affiliation, life cycle stage of firm and CEO duality were also studied. It was found that these variables have direct impact on FF and they moderate the relationship between firm specific factors and financial flexibility. Among these moderator life cycle stages, managerial ownership, and group affiliation are the most significant moderating variables. Overall, this study provides the evidence that FF measured by low leverage, spare debt capacity, cash holdings, Altman z score, modified z score and cash flow volatility may be affected by firm specific and country specific factors. Among all proxies of financial flexibility, low leverage and spare debt capacity were the most important and significant measures and sources of financial flexibility. These results are robust across alternative measures of financial flexibility.

Research paper thumbnail of Exploring the Relationship between Financial Distress, Financial Flexibility, and Firm Performance: Empirical Evidence from Pakistan Stock Exchange

Purpose– This main purpose of this paper is to empirically investigate the impact of corporate fi... more Purpose– This main purpose of this paper is to empirically investigate the impact of corporate financial flexibility (FF) on financial distress and performance of firms listed on the Pakistan Stock Exchange (PSX). It enables to know how financial flexibility affects the firm financial strength, financial distress, and corporate performance. Design/methodology/approach –This study focuses on a firm level data of 192 non-financial firms covering the period 1992 - 2014. The fixed effect model logistic regression is applied by using unbalanced panel data to examine the impact of financial flexibility on financial distress, and performance of sample firms. Findings – The results reveal that financially flexible firms are less likely to face financial distress. As firms have more financial flexibility, the probability of financial distress decreases as well. It is also found that financially flexible firms are more likely to perform well than counterpart firms. By using the Altman z score...

Research paper thumbnail of Do corporate financial flexibility, financial sector development and regulatory environment affect corporate investment decisions?

Journal of Economic and Administrative Sciences

PurposeThis study aims to examine how corporate financial flexibility, financial sector developme... more PurposeThis study aims to examine how corporate financial flexibility, financial sector development and the regulatory environment influence corporate investment decisions in an emerging economy after controlling for several macroeconomic factors.Design/methodology/approachThe authors estimated random-effects models to empirically examine the impacts of corporate financial flexibility, banking sector development, equity market development, regulatory quality and corruption on corporate investment decisions. The empirical analysis is based on an unbalanced annual panel data set of a sample of 198 non-financial firms listed on the Pakistan Stock Exchange for the period 1992–2018.FindingsThe results show that financially flexible firms tend to invest more. The increased banking sector development, stock market development and better regulatory quality play a pivotal role for enabling firms to increase their investment ability. However, the results reveal that corruption acts as a barri...

Research paper thumbnail of Do banking sector concentration, banking sector development and equity market development influence firms’ financial flexibility? Evidence from Pakistan

South Asian Journal of Business Studies

Purpose The purpose of this paper is to investigate the role of banking sector concentration, ban... more Purpose The purpose of this paper is to investigate the role of banking sector concentration, banking sector development and equity market development in corporate financial flexibility (FF). Design/methodology/approach The study used annual data for the period from 1991 to 2014 to examine the relationship between banking sector concentration, banking sector development, equity market development and corporate FF; hypotheses were tested using an unbalanced panel logistic regression model. Findings The paper provides empirical insights into the relationships between macroeconomic factors and corporate FF. The results suggest a substantial change in FF across firms; banking sector concentration discourages firms from borrowing, leading to the reduction of corporate borrowing, consequently an increase in FF can be observed. Banking sector development facilitates debt financing, hence reducing FF. Equity market development also has a positive impact on FF, as it is a substitute for debt...

Research paper thumbnail of The role of macroeconomic and institutional factors in creating corporate financial flexibility

Management Decision

Purpose The purpose of this paper is to investigate the role of macroeconomic factors and the ins... more Purpose The purpose of this paper is to investigate the role of macroeconomic factors and the institutional environment on corporate financial flexibility (FF). Most studies focus on well-developed financial markets and very little is known about corporate FF in less developed financial markets and emerging markets (Buvanendra et al., 2016). The present study contributes to filling this gap in the literature and provides a more practical and functional framework to assess the FF of firms located in emerging economies. Design/methodology/approach The study used annual data for the period from 1991 to 2018. To examine the relationship between macroeconomic indicators, institutional environment and corporate FF, hypotheses were tested using an unbalanced panel logistic regression model. Findings The paper provides empirical insights into the relationships between macroeconomic factors, institutional environment and corporate FF. The results suggest a substantial change in FF across fir...