IMPACT OF FREE CASH FLOW ON THE FINANCIAL PERFORMANCE: EVIDENCE FROM COMMERCIAL BANKS OF PAKISTAN

Authors

  • Zill e Humma Komal Department of Management Science National University of Modern Languages (NUML), Islamabad Pakistan
  • Sadia Saeed Department of Management Science National University of Modern Languages (NUML), Islamabad Pakistan
  • Iram Iqbal Qazi Department of Management Science National University of Modern Languages (NUML), Islamabad Pakistan

DOI:

https://doi.org/10.52567/pjsr.v4i2.505

Abstract

Free cash flows and financial performance is an area of interest for research especially in financial sector that plays a mediatory role between lenders and borrowers. Financial health of any economy depends upon the sustainability of banking sector that is based upon their sound and efficient financial performance. The link between free cash flows and financial performance of financial sector is empirically investigated in the study. Regression results of the study support that free cash flows have significant positive and negative impact on financial performance of banking sector during time frame 2011-2020. The banks having strong financial position are able to achieve competitive edge in the financial market. So managers at top position and policy makers should design strategies for efficient utilization of free cash flows that not only increases the financial performance but also contribute to stock holders’ wealth maximization.

Keywords: Financial performance, Bank size, Return on equity, Return on asset, Agency problems.

Author Biographies

  • Zill e Humma Komal, Department of Management Science National University of Modern Languages (NUML), Islamabad Pakistan

    Student

     

  • Sadia Saeed, Department of Management Science National University of Modern Languages (NUML), Islamabad Pakistan

    Lecturer

     

  • Iram Iqbal Qazi, Department of Management Science National University of Modern Languages (NUML), Islamabad Pakistan

    Assistant Professor

Additional Files

Published

2022-06-30

Issue

Vol. 4 No. 2 (2022): Pakistan Journal of Social Research PJSR

Section

Research Article

License

Copyright (c) 2022 Zill e Humma Komal, Sadia Saeed, Iram Iqbal Qazi

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

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How to Cite

[1]
“ IMPACT OF FREE CASH FLOW ON THE FINANCIAL PERFORMANCE: EVIDENCE FROM COMMERCIAL BANKS OF PAKISTAN”, Pak. J, Soc. Sci., vol. 4, no. 2, pp. 545–551, Jun. 2022, doi: 10.52567/pjsr.v4i2.505.