Bank Firm Relationship and Firm Performance under a State-Owned Bank System: Evidence from Pakistan

Abstract

In this study the researchers investigate the Bank firm relationship and firm performance under a state-owned bank system of Pakistan for the period of six years (2006 to 2011). The nature of the data is secondary and selected nineteen firm forms the two different sectors which are listed Karachi stock exchange. Bank firm relationship and firm performance are measured by the depended variables TOBINQ, DTTA and INV as proxy. TOBINQ is positive relation with the natural logarithm and the other three variables is negative relation with TOBINQ. DTTA is negative relation with the natural logarithm, SG and TOBINQ. The DTTA is positive relation with INV. INV is negative relation with the natural logarithm. The INV is positive relation with DTTA and SG.  The relation of TOBINQ with INV is positive insignificant and the coefficient are also positive. The relation of DTTA with INV is positive significant and the coefficient are also positive. The relation of INV with SG is positively high significant and the coefficient are also positive.