Relationship between Financial Leverage and Financial Performance: The growth in traditional revenue streams like voice and text messaging is reaching to maturity, as the data poised to be the next wave of revenue progression. So, the net profit margin ratio will also decrease. In addition to all of this some other firms were also omitted due lack of data and information. This metric compares two balance sheet entries, total liabilities i.

The foreign operators cost and satellite charges increased to a level of Rs 6, million in FY09 from Rs 3, million in FY The results shows that in manufacturing sector Financial leverage FL has a negative relationship with profitability ROA , while Size of the firm FS and growth of the firm FG have no impact on financial leverage. In previous researches, capital structure has never been taken as a dependent variable but would be discussed in this new way here. The decline in the profits of the company due to the above-cited reason has led to a decrease in the gross margin percentage also. The dependent variable is financial leverage and independent variables are profitability, size and growth of the firms.

There was positive relation of debt to equity ratio with return on Asset and Sales growth and negative relationship of debt to equity ratio with Earning per share, Return stydy equity and Net profit margin.

case study on ptcl privatization

December 6, at 1: Currently there are six cellular players in the market. An Investigation from Cement Sector of Pakistan. The large debt will decrease the ROE, because in Pakistan economic conditions are poor. As a company increases debt and preferred equities, interest payments increase, reducing EPS.


Privatization of PTCL. An Unforgotten Failure of Governance

Her study was intended to measure the effect of financial leverage on financial performance of the fuel and energy companies. New management partially decentralized its structure for better operations and reduced work force by replacing it with more qualified overseas technical staff who provided necessary trainings to local staff for their skills enhancement. A company with much more debt tha n equity is generally called “highlyleveraged.

In the Hamada model, for example, both the value of debt and equity are stock measures and, theoretically, should be market values.

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case study on ptcl privatization

This ratio compares two balance sheet entries, Total stockholders equities and Total liabilities. Determinants of capital structure choice and empirics on leverage behavior: Study period consisted of years — Today businesses can have lines with modern day services to meet their needs. Others from telecommunication companies of Pakistan.

Figure -1 shows the subscribers growth of different Cellular Mobile Operators. The newly deregulated mobile market is now working on sustaining the mobile boom that hit Pakistan 2 years back and on the brink of adding Value Added along with customer satisfa ctions.

Sample is selected from Pakistani registered companies from ISE. The red dot represents technology and the world of communication.

They used spearman correlation and regression analysis method. Privatizatioon, a firm can run for different levels of debts, equity, or other financial arrangements. The objective of this study is to find either financial leverage is good or bad in the context of Pakistani firms? Dependent variables includes profitability and shareholders return, model as dependent variable.


PTCL’s Privatization: The Biggest Financial Scam in Pakistan’s History? – TelecomPK

Operating Costs 19 1. A sample of 10 Firms is selected from two 02 sectors Cement Sector and Service sector. Times interest earned is based on income statement terms: We find out that high level of leverage creating a high privatlzation of systematic risk, leading to high volatility in the stock prices.

case study on ptcl privatization

High fixed cost put adverse impact on firm bottom line which means it reduces net income of the firm. The new policy is expected to stimulate the industry and to yield even more dividends for the nation.

PTCL’s Privatization: The Biggest Financial Scam in Pakistan’s History?

The results of this study are consistent with the results of previous studies conducted by Titman and WesselsWaldSheelEunju and Soocheong Privwtization of study 29 Chapter 02 Literature review and Research methodology 30 2. Variables return The privatizatkon takes one independent variable is financial leverage and two dependent variables.

On the other hand, when a company raises fund through the issuance of bonds or borrowing from banks or other financial institution, it is called debt financing.