A sample of 10 Firms is selected from two 02 sectors Cement Sector and Service sector. Comparing the above theories and statements with the given roots of PTCL failure, it is evident that several mistakes were occurred and government failed to take proper measures for the effective privatization of PTCL. The first of these debt to equity ratios, total debt to stockholders’ equities, is the strongest of these measures, that is, it provides the most conservative view of creditor protection. Leverage increases the high risk of profitability H Summary This paper aims to investigate Affect of leverage on stock returns and systematic risk in the corporate sector of Pakistan. Analysis of the ca

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. The total debt to assets ratio metric addresses this question. The negative relation between debt equity ratio and net profit margin ratio indicates that as debt increase, net profits of the company tend to decrease, because most of the revenues are used to pay off the debts. Impact of Financial Leverage on Firms’ Profitability: The corporation provides telephonic and Internet services nationwide and is the backbone for the country’s telecommunication infrastructure despite the arrival of a dozen other telecommunication corporations, including Telenor Corps and China Mobile Ltd. After his guidance we are able to complete thesis through his step by step support for research work. The conjectured relationships among the variables are established on the basis of previous literature available.

Privatization of PTCL. An Unforgotten Failure of Governance

It was hypothesized that there is a significant negative relationship exist between financial leverage and firm profitability. Figure -1 shows the subscribers growth of different Cellular Mobile Operators. PTCLA is going to be your first choice privvatization the future as well, just as it has been over the past six decades. It can combine bonds and lease financing, bank loans or many other options with equity in an overall attempt to boost the market value of the firm. And it also has a negative impact which means that increase in leverage decrease the growth of the firm.


Privatization of PTCL. An Unforgotten Failure of Governance

Highly leverage firms have lower profitability and lower leverage firms have higher profitability. High leverage increases the stock return. Long term debt to equities ratio The second debt to equities ratio, long term debt to stockholders equities or more simply long term debt to equities is more properly a measure of leverage, because the debt figure contains only debt to lenders, or long term debt, as opposed to total debt, which includes debt to vendors, employees, and tax authorities as well as debt to lenders.

case study on ptcl privatization

Study period consisted of years — Page 6 Table of Contents Abstract 09 Chapter 01 09 Analysis of research problem 1. By Farlex Financial Dictionary.

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

P a g e 10 This article illustrates four of the most commonly used financial leverage metrics, including the total debt to asset ratio or debt ratiototal debt to equities ratio, long term debt to equities ratio, and times interest earned. Business economics – Trade and Distribution Negotiation Management. Financial leverage metrics compare the funds supplied to a company by creditors to the funds supplied by the company’s owners.

More than companies are listed on KSE. High leverage increases the stock return. The large debt will decrease the ROE, because in Pakistan economic conditions are poor. More importantly we want them for their better living standards with increased values in this ever-shrinking globe of ours.

Determinants of capital structure choice and empirics on leverage behavior: Government of Pakistan was in rush to stable the country economy by hooks and crooks therefore, was misguided by financial agencies and blackmailed by foreign investors in form of their forced conditional supports. Services provided will be personal and tailored to individual needs. Now a days Ptcl is running thaka dari basis in emloing persons and other fields.


By Farlex Financial Dictionary. Given that PTCL already owns Ufone — which has the third highest market share — it would pass Mobilink as the largest cellular company. Journal of Economics, Finance and Administrative Science, 27, Journal of Financial Economics, 40, The real value of PTCL assets at the time of sale can only be determined by experts — I would like to see those determinations before jumping to conclusions.

Denationalisation of public institutions has become a worldwide movement in developed as well as developing nations by selling all kinds of public enterprises including key utilities providers such as electricity, water, gas, telephone services etc. Observations Debt Equity Ufone considered as a strong competitor in the auction process and was the first to launch 3G in Pakistan, due to its advanced planning and network readiness.

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

case study on ptcl privatization

Above hypothesis which tested on these tables and financial data analyzed. The times interest earned metric addresses this question. A variety of variables that are potentially responsible for determining leverage decisions in companies.

Rajni Saini conducted a study on Impact of Financial Leverage on Shareholders Return and business sector underwriting from the Indian Telecom part organizations.

There is positive relationship between leverage and profitability H