Journal of Research in Economics and Finance Management <p>The Journal of Research in Economics and Finance Management is an interdisciplinary open access double-blind peer-reviewed Bi-Annual research journal published by the <a href="">Contemporary Science Research Publisher</a> that publishes significant contributory research in Economics, Finance, and Accounting. Journal of Research in Economics and Finance Management publishes two issues per year. Journal Economics and Finance publishes original research articles related to Economics, Finance, and Accounting. By providing easy access to insights into Economics, Finance, and Accounting, JREFM aims to extend and supplement the knowledge of the scholarly world.</p> Contemporary Science Research Publisher en-US Journal of Research in Economics and Finance Management 2959-099X <p>This work published in the journal is licensed under a <a href="" rel="license">Creative Commons Attribution 4.0 International License</a> <a href="" rel="license"><img src="" alt="Creative Commons License" width="62" height="22" /></a>.</p> ECONOMIC PROGRESS, SAVINGS PATTERNS, AND POVERTY IN SAARC NATIONS: EXPLORING THROUGH PANEL ARDL ANALYSIS <p>This research investigates the interplay of financial sector development, saving mobilization, and poverty reduction efforts in the SAARC region. Utilizing strongly balanced panel data spanning from 1969 to 2020 from World Development Indicators, the study employs the Pooled Mean Group (PMG) estimation method to account for cross-sectional variations and distinguish between long-run equilibrium and short-run dynamics. The findings reveal a negative substitution effect of increased capital on broad money in the long run. Moreover, a decrease in interest rates is associated with significant growth in broad money, facilitating borrowers with affordable funds and enhancing their ability to fulfill financial obligations, both in the long and short run. The study also underscores the positive impact of the total population on the demand for money to sustain businesses in the long run. Furthermore, addressing creditworthiness concerns, the research suggests that insurance firms can play a pivotal role in mitigating credit risks for less creditworthy entrepreneurs by providing coverage for loans extended to private sectors. These insights contribute valuable perspectives on the intricate relationships between financial development, savings, and poverty alleviation in the SAARC region.</p> Shumaila Meer Copyright (c) 2023 2023-11-24 2023-11-24 2 2 1 20 CORPORATE GOVERNANCEMODEL:APRACTICALINFERENCEAPPROACH <p>Most reputable businesses rely on corporate ownership and good governance practices. Following corporate governance guidelines helps companies that support them gain a larger market share and encourages strategic company growth. Good governance relies upon the practical implication of standards and methods to control corporate fraud and corruption. Treating corporate businesses with an innovative approach is necessary to overcome bribery and its intensive control. This study highlights the family's business issues and the fraudulent practices followed for many years. The empirical analysis provides extensive support for implementing good governance practices in corporate culture and the strong implementation of audit engagement. Furthermore, this study confers with the exploratory research in relationship with the governance practices and audit control, which expanded towards the governance model. The empirical description provided by this study shows how audit engagement and independent professionalism can lead to actual productivity. In addition, secretarial audits and aerial views of the corporate sector's performance by authorities and regulatory bodies are critical in the fight against corruption</p> Shariq Mubashir M. Mubashir Qadir Khan Copyright (c) 2023 2023-12-07 2023-12-07 2 2 21 32 ECONOMIC ANALYSIS OF OVERTIME CHANGES IN INSTITUTIONAL AND NON-INSTITUTIONAL CREDIT OF AGRICULTURAL FARM IN BALOCHISTAN, PAKISTAN <p>Increasing agricultural productivity and income for rural households in Pakistan's Balochistan province has depended mainly on the farming industry. The need for agricultural finance has grown because of several issues in this industry, such as escalating costs of critical farm inputs, water scarcity, and subpar irrigation systems. This research sought to investigate both available and unavailable credit trends, the size of loans made to households, the quantity of land used for agriculture, and the percentage of farm households in debt for the 1960, 1972, 1980, and 1990 census years. The study aimed to investigate the different kinds, sources, and significance of agricultural loans in Balochistan. The study's findings showed that loan availability and the growth of agricultural output nationwide and in the province of Balochistan are positively correlated. The study's findings also indicated that the province of Balochistan first reported institutional and non-institutional credit availability in 1980. For small and medium farms, the percentage of institutional credit is lower than that of non-institutional credit; however, for large farms, the institutional credit is significantly higher than that of non-institutional credit in both census years.</p> Nosheen Abdul Raheem Abro Nazir Ahmed Ghulam Mustafa Gaho Copyright (c) 2023 2023-12-20 2023-12-20 2 2 33 44 INVESTIGATING THE RELATIONSHIP BETWEEN STOCK RETURNS AND MARKET CAPITALIZATION <p>This paper investigates the profitability of investing in small and medium-sized companies in Pakistan's stock market. Recent studies have found a significant impact of firms' size on stock market price. This study investigates the effect of firm size on companies listed on the Pakistan Stock Exchange, as the price of small-cap stocks should represent the firm's profitability. Stock performance in January and July plays a key role in the relationship between firm size and stock price appreciation. The study uses Thomson Reuters DataStream data, first released in January 2007, and gives investors access to previously inaccessible market data. This data includes monthly updates on the closing prices of business stocks, the value of the KSE-100 indexes, and the size of the Market. Under the Panel data techniques, a fixed-effects model is used to investigate the relationship. The findings of this paper suggest a link between company size and stock performance. The study finds the negative impact of the size of a firm on Stock Market Performance in the Pakistani stock market. This suggests that investors place a higher value on small-cap enterprises. The study found comparable results in many previous studies. The main contribution of this paper is to provide an understanding of how firm size affects stock in Pakistan's stock market. Unlike previous studies, rather than analyzing each company individually, the study uses aggregate monthly data on excess stock returns from more than 300 to grasp the size premium precisely.</p> Muhammad Farhan Gobind M. Herani Lata R. Lohana Copyright (c) 2023 2023-12-31 2023-12-31 2 2 45 59 NAVIGATING STABILITY: EXPLORING KEY FACTORS INFLUENCING ISLAMIC BANKS AND CONVENTIONAL BANKS IN PAKISTAN <p>This paper examines the factors that influence Pakistani banks' stability, with a focus on Islamic Banks (IBs), through regression analysis. Drawing on a dataset spanning from 2007 to 2021, the study explores key factors influencing the financial health of banks, particularly through the lens of the Z-score, a popular indicator of stability. The analysis reveals several significant findings. Firstly, the created regression models have a high degree of explanatory power; their R-squared values of 0.721 and 0.556, respectively, show that the included variables account for more than 70% and 55% of the Z-score’s variance. Secondly, individual variable analysis highlights important relationships. Notably, increasing cost-income ratio, GDP growth rate, and loan assets ratio are associated with lower Z-scores, suggesting potential risks to financial health. Conversely, higher inflation and HHI deposit concentration are linked to higher Z- scores, indicating potential benefits for IBs under such conditions. The implications of these findings are substantial. Maintaining operational efficiency, managing complexity effectively (especially for larger banks), and understanding the positive impact of inflation on Z-scores are identified as critical factors for achieving better financial stability. Regulatory policies should consider these factors to promote and maintain a stable Islamic banking sector in Pakistan. However, the study acknowledges certain limitations. It suggests further exploration of interactive effects and alternative measures of bank stability for a more comprehensive understanding. Future research could delve deeper into the mechanisms explaining the observed relationships, providing valuable insights for strategic decision-making and regulatory frameworks. This paper offers evidence-based insights into the factors influencing bank stability in Pakistan, particularly for IBs. Understanding these factors can inform strategic decision-making for individual banks and regulatory policies, ensuring a healthy and robust Islamic banking sector in the country. </p> Khawja Masood Razakh Imam Uddin Abida Perveen Copyright (c) 2023 2023-12-31 2023-12-31 2 2 61 70