Journal of Finance and Accounting Research <div class="row" style="text-align: justify;">The Journal of Finance and Accounting Research (JFAR) is a multidisciplinary international journal of the Department of Finance, School of Business and Economics (SBE), University of Management and Technology (UMT), Lahore, Pakistan. JFAR is committed to publishing high-quality studies in finance and related fields and is widely circulated, both nationally and internationally.&nbsp;Accounting, Finance &amp; Auditing are seen as essential components for the successful implementation of market-based development policies supporting economic liberalization in the rapidly emerging economies. JFAR publishes research articles and reviews within the whole field of&nbsp; Accounting, and it will continue to provide information on the latest trends and developments in this ever-expanding subject.</div> en-US <p style="text-align: justify;">UMT journals follow an open-access publishing policy and full text of all articles is available free, immediately upon acceptance. Articles are published and distributed under the terms of the Creative Commons Attribution 4.0 International License.&nbsp;Thus, work submitted to UMT Journals implies that it is original, unpublished work of the authors; neither published previously nor accepted/under consideration for publication elsewhere.&nbsp;On acceptance of a manuscript for publication, a corresponding author on the behalf of all co-authors of the manuscript will sign and submit a completed Author Agreement Form.</p> (Editorial Office JFAR) (Editorial Assistant) Sat, 29 Feb 2020 00:00:00 +0100 OJS 60 Impact of External Debt on Stock Market Performance and Economic Growth: Moderating Role of Capital Formation <p><em>The main objective of this study is to ascertain the effect of external debt on economic growth and stock market performance in SAARC countries that included Pakistan, Sri Lanka, Bangladesh and India for the period spanning from 1992 to 2017. This study examines the effect of capital formation as a moderator. Using panel least square recreation analysis, we find a negative and significant association between economic growth and external debts. The inclusion of interaction tea reveals a positive moderation effect of capital formation on the relationship of external debt and economic growth. Our study suggest that the external debt is less favourable for the SAARC countries and that greater emphasis should be increased on capital formulation. Moreover, policies that enhance the national treasury base, increase exports, and make environment conducive for foreign direct investment should be introduced in SAARC countries. The governments of SAARC countries should look for the alternates of external debt for financing the fiscal deficit.</em></p> Muhammad Irfan, Muhammad Waris Rao, Jawad Akbar, Ijaz Younis ##submission.copyrightStatement## Fri, 28 Feb 2020 00:00:00 +0100 Does corporate groups accrue higher leverage: Emerging Market Evidence <p><em>This article explores the capital structure composition of group-affiliated firms. We find that group member firms choose to accrue higher debt ratios compared to non-group counterparts. Further disentangling the higher debt ratios of group-affiliates, we find risk-sharing or co-insurance effect whereby business groups enable member firms to share risks through income-smoothing and intra-group reallocation of resources. Our results suggest that business groups act as internal capital markets, assist affiliated firms overcome financial constraints, and ease access to external capital. Lastly, our study shows that group affiliations positively contribute to firms’ better financial performance relative to the non-group firms.</em></p> Safi Ullah Khan, Mohammad Faisal Rizwan ##submission.copyrightStatement## Fri, 28 Feb 2020 13:59:48 +0100 FOREX and equity markets spillover effects among USA, Brazil, Italy, Germany and Canada in the aftermath of the Global Financial Crisis <p><em>In this paper, we investigate the spillover effects of forex and equity markets in USA, Brazil, Italy, Germany, and Canada using daily data. Using AR-dialog BEKR model we tested for the contagion &amp; co-movement effect in equity markets during the post financial crises period of 2010-2018. The estimated dynamic conditional correlations show the strongest contagion effects for the pairs of markets as follows: S&amp;P500-BOVESPA, S&amp;P500-FTSEMIB, S&amp;P500-DAX30 and S&amp;P500-S&amp;PTSX. For institutions, multinational corporations, and active investors, a portfolio consisting of financial assets from the above markets is extremely risky.</em></p> Konstantinos Tsiaras, Theodore Simos ##submission.copyrightStatement## Fri, 28 Feb 2020 00:00:00 +0100 Paradigm Shift and Diversity in Finance <p><em>This study provides an overview of the four paradigms from which the social theories are usually devised. More particularly, this study highlights the paradigm to which finance theories belong. The study discusses the four paradigms on the basis of their ontology, epistemology, axiology, and research methodology. Rather than creating new paradigm, it explains the role of paradigms, other than Positivist paradigm, in Finance. It concludes that positivist paradigm must adopt the tools of other paradigms to enhance its ability to contribute to the world knowledge.</em></p> Fatima Sultana ##submission.copyrightStatement## Fri, 28 Feb 2020 13:57:32 +0100 Short-Term and Long-Term Effect of Firms’ IPO on Competitors’ Performance <p>This study provides empirical evidence on the short term and the long term effects of initial public offering (IPOs) by firms, on their competitor firms’ performance in Indonesia. We perform short-run and long-run event studies and cross sectional regressions over the period 2010 to 2017 and find that both IPO firms and their competitors experience positive stock returns in the short-run and in the long-run. We find that IPO firms’ stock performance is relatively stable in the long-run that enables the competitor firms’ stock returns to catch up with IPO firms’ stock performance. We find negative effect of IPO firms’ stock performance on their competitors’ stock performance in the short-run, and a positive effect in the long-run. Our findings imply that IPO firms provide good information to the industry and no obvious competitive landscape changes are observed.</p> Nadia Marcha Chintya, Nadya Theodora, Vania Evelyn, Adrian Teja ##submission.copyrightStatement## Fri, 28 Feb 2020 14:06:39 +0100