Open AccessAnalyzing the Factors of Firm Liquidity in Chemical Products and Pharmaceuticals Sector of Pakistan
Author(s) -
Rana Yassir Hussain,
Hira Irshad,
Shahnaz Akhtar,
Hina Ismail
Publication year - 2018
Publication title -
review of applied management and social sciences
Language(s) - English
Resource type - Journals
eISSN - 2708-3640
pISSN - 2708-2024
DOI - 10.47067/ramss.v1i1.3
Subject(s) - market liquidity , panel data , profitability index , monetary economics , business , sample (material) , maturity (psychological) , liquidity risk , ordinary least squares , fixed effects model , capital structure , current ratio , debt ratio , asset (computer security) , economics , econometrics , debt , finance , psychology , developmental psychology , chemistry , computer security , chromatography , computer science
Current study aims at identifying the firm level and country level determinants of liquidity in listed firms of chemical products and pharmaceutical sector at PSX. The data sample consists of 36 firms over a period of five years ranging from 2013 to 2017. A panel OLS regression with robust standard errors is used to estimate the relationships. Results proved a positive and significant impact of debt maturity, profitability and risk on liquidity. Capital structure and asset tangibility turned out as significant negative influencer of current ratio. All the three macroeconomic variables had a significant role in defining liquidity position. However, GDP influenced liquidity positively but KIBOR and CPI had negative influence.