All Theses and Dissertations

Degree

Master of Science in Economics

Faculty / School

Faculty of Business Administration (FBA)

Department

Department of Economics

Date of Award

Spring 2020

Advisor

Dr. Mohammad Nishat

Committee Member 1

Dr. Mohammad Nishat, Institute of Business Administration, Karachi

Project Type

Thesis

Access Type

Restricted Access

Pages

x, 49

Abstract

This research is aimed to assess firstly the performance difference of Shariah compliant (SC) and Non Shariah Compliant (NSC) companies listed firms in Pakistan Stock Exchange (PSX). Secondly, to check the response of both types of companies to same company related variables. For this analysis annual panel data of listed firms on PSX for 15 years have been analyzed. For Shariah Compliant Companies, listing of KMI all share index is used. After data cleansing process, data of 310 companies is available from which 136 companies are listed in all Share Islamic index as in November 2015 and the remaining 174 are assumed to be NSC firms for 15 years of time 2001 to 2015. The determinants of performance and company specific variables are TDTTA (Total Debt to Total Asset), STDTTA (Short Term Debt to Total Asset), DTE (Debt to Equity), MC (Market Capitalization), and SOF (Size of Firm) which are used to analyze performance difference of two group of companies as well as response of these variable by Shariah Compliant and Non Shariah Compliant Companies. Various panel data models for estimation (for instance, pooled regression, first difference estimator, and Fixed Effect (FE) and Random Effect (RE) estimation) are applied. Result shows that the Fixed Effect Model is the best estimation model out of the above models that fits the data. The results show that there is no significant difference between SC companies and NSC companies in performance as well as the both group of companies exhibits same response to same company related variables.

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