Stock Market Response to Terrorist Attacks: An Event Study Approach

TAHIR, Safdar Husain,TAHIR, Furqan,SYED, Nausheen,AHMAD, Gulzar,ULLAH, Muhammad Rizwan Korea Distribution Science Association 2020 The Journal of Asian Finance, Economics and Busine Vol.7 No.9

The purpose of this research study is to examine the stock market's response to terrorist attacks. The study uses data of terrorist attacks in different parts of the country (Pakistan) from June 1, 2014 to May 31, 2017. The event window procedure applies to a 16-day window in which 5 days before and 10 days after the attack. In addition, several event windows have been built to test the response of the Pakistan Stock Exchange. KSE-100 index is taken as proxy of response. The total terrorist attacks are classified into four categories: attacks on law enforcement agencies, attacks on civilians, attacks on special places and attacks on politicians, government employees and bureaucrats. The standard market model is used to estimate the abnormal return of the Pakistan Stock Exchange, which takes 252 business days each year. Furthermore, BMP test is used to check statistical significance of cumulative abnormal rate of return (CAAR). The results of this study reveal that total number of terrorist attacks and attacks on law enforcement agencies show long-term effects on Pakistan stock exchange. However, attacks on civilians, attacks on special places and attacks on politicians, government employees and bureaucrats have little effect on the Pakistan Stock Exchange.

Mediating Role of Liquidity Policy on the Corporate Governance-Performance Link: Evidence from Pakistan

TAHIR, Safdar Husain,SADIQUE, Muhammad Abu Bakar,SYED, Nausheen,REHMAN, Faiza,ULLAH, Muhammad Rizwan Korea Distribution Science Association 2020 The Journal of Asian Finance, Economics and Busine Vol.7 No.8

Based on the theoretical underpinnings of the agency theory and liquidity theory, the purpose of this study is to show how managers who want to enhance the performance of Pakistan's non-financial sector can use liquidity policy in relation to corporate governance. Nowadays, Pakistan is facing a severe liquidity crisis; this study contributes by examining the mediating role of liquidity on the link of corporate governance-performance. We use data from 63 firms from 2010 to 2018, excluding 17 outliers. To analyze the data, we use the Seemingly Unrelated Regression (SURE) model and nlcom-Stata test. Our findings support the mediating role of liquidity on the link between corporate governance and performance. In addition, the results show that corporate governance improves performance. Furthermore, the study supports a significant positive association of liquidity and performance. For robustness, we use two performance variables - return on assets (ROA) and Tobin's q (TQ) - where ROA represents full mediation and TQ indicates partial mediation. This study helps to use liquidity policy to strengthen the inside and outside dimensions of corporate governance mechanisms that improve the performance of firms. Overall, these findings suggest better disclosure, transparency, and solutions to auditing issues that add value to the firms.

Firm's Risk and Capital Structure: An Empirical Analysis of Seasonal and Non-Seasonal Businesses

TAHIR, Safdar Husain,MOAZZAM, Mirza Muhammad,SULTANA, Nayyer,AHMAD, Gulzar,SHABIR, Ghulam,NOSHEEN, Filza Korea Distribution Science Association 2020 The Journal of Asian Finance, Economics and Busine Vol.7 No.12

The study attempts to analyze the impact of firm's risk on capital structure in the context of seasonal and non-seasonal businesses. We use two independent variables namely credit risk and systematic risk and one dependent variable to explore this connection. Sugar sector is taken as seasonal while the textile sector as non-seasonal businesses. The panel data of twenty-five firms from each sector are taken ranging for the period of 2012 to 2019 which has been retrieved from their annual reports for empirical analysis of the study. The results reveal the negative impact of credit risk on capital structure in both types of businesses. Increasing (decreasing) one point of credit risk causes a decrease (increase) leverage ratio by 0.27 points for seasonal while increasing (decreasing) one point of credit risk causes to decrease (increase) leverage by 0.15 points for non-seasonal businesses. Furthermore, the study shows positive impact of systematic risk on leverage ratio in non-seasonal business and no impact in seasonal business. Any increase (decrease) in the systematic risk causes an incline (decline) leverage ratio by 2.68 units for non-seasonal businesses. The study provides a guideline to managers for risk management in businesses. The research focusses on theoretical as well as managerial and policy implications on risk management in businesses.

Entrenchment Effect and Audit Quality in Family Business of Pakistan

TAHIR, Safdar Husain,AKRAM, Sadaf,PERVEEN, Shahida,AHMAD, Gulzar,ULLAH, Muhammad Rizwan Korea Distribution Science Association 2020 The Journal of Asian Finance, Economics and Busine Vol.7 No.8

The purpose of this study is to test both the alignment theory and entertainment theory on family firms listed on the Pakistan Stock Exchange. To achieve these goals, we collected secondary data from 164 non-financial family firms in various sectors during 2014-18. These family firms are classified into two categories: family control firms and family owned firms. We take the audit fee and the audit quality as dependent variables while family control firms, family-owned firms, and family CEOs as independent variables. In addition, the study uses leverage, profit and export as control variables. To test the effect of the explanatory variables on the output variables, we use two econometric models, Ordinary Least Square and the Probit regression model. In addition, Huber Sandwich test is used to check the non-normality and heteroscedasticity of panel data. Contrary to the alignment effect, the study supports the entrenchment effect and advocates that family-controlled firms as well as family-owned firms are not conscientious regarding the selection of external auditors during their contracts with audit firms. They are less likely to pay high audit fees for good quality audit in Pakistan. Furthermore, the study shows a statistically significant and positive relationship between audit quality and audit fees.

Use of Heavy Oil Fly Ash as a Color Ingredient in Cement Mortar

Abdullah Mofarrah,Tahir Husain 한국콘크리트학회 2013 International Journal of Concrete Structures and M Vol.7 No.2

Heavy oil fly ash (HOFA) is a byproduct generated by the burning of heavy fuel oil. Chemical analysis showed that HOFA is mainly composed of unburned carbon with a significant amount of heavy metals. Due to toxicity, management of this waste poses a challenge to the industry personal. The present study investigates the possible use of HOFA as a black pigment or admixture in cement mortar aiming to produce ornamental brick. In order to investigate the change of cement mortar strength when HOFA is added, the standard compressive strength test with 50 mm cubes was performed. The results showed that the addition of 2?5 % of HOFA in cement mortar does not affect its strength. The leaching behavior of trace elements within HOFA and HOFA mixed mortar were investigated through laboratory batch leaching experiments. The results confirmed that HOFA can be utilized as a black pigment in ornamental brick, which is environmentally safe and provides good balance between color and brick properties.

Analysis of Relationship between O3, NO, and NO2 in Riyadh, Saudi Arabia

Mohammed Mujtaba Shareef,Tahir Husain,Bader Alharbi 한국대기환경학회 2018 Asian Journal of Atmospheric Environment (AJAE) Vol.12 No.1

For the first time in the city of Riyadh, the formation of O3 and its relationship with NO and NO2 (NOx) was investigated. Throughout the summer O3, NO, and NO2 were collected from three locations: residential, industrial, and rural areas. During the sampling period O3 concentrations exceeded 1-hour local standards a few times yet remained consistent with the standards most of the time. The O3 concentrations were observed highest in the rural location and lowest in the industrial area. The diurnal variation of NO followed a double peak: one in the morning and the other in the evening, representing the traffic pattern. Early morning NO peaks were observed in the rural location, which were attributed to the movement of NO from other locations. The O3 concentrations depicted typical pattern, increasing after sunrise and reaching its maximum during midday. The highest O3 concentrations were observed in the rural location followed by the residential and industrial. NO2 photolysis rates were 3-4 times higher compared to other similar investigations, potentially due to intense solar radiation. A strong negative correlation was observed between NOx and O3 values in the industrial location indicating photochemical activities around the industrial area were higher, likely due to additional NOx emissions from industries. Regression analysis of NOx and OX (O3 +NO2) indicated that in residential and industrial locations at nighttime there were large NOx independent regional contributions which is attributed to VOCs. The Weekend Effect was observed in the city potentially due to the production of the OH radical and subsequent reactions with VOCs implying that the area is VOC-sensitive.