Financial Crisis of 2008 And Performance Of Firms (A Case Of Listed Firms On Karachi Stock Exchange)

Abstract

In this research work it is examined the effect of financial crisis of 2008 on firm performance. Total 98 companies are examined from sugar, cement, motor vehicles, trailers and Auto parts, fuel and energy and coke and refine petroleum products. Data is secondary in nature and is used from balance sheet analysis of listed firms non-financial in nature. Time period is from 2007-2011, the operating, accounting and market performance are used for market performance. For operating performance used sales change and return on assets, accounting performance are calculated by EBIT margin and for market performance are used TBIN’s Q and KSE-100 Index indicator and from result conclude that in era of financial crisis 2008 some firm performance are decline and at same time some firm performance are improved unexpectedly. Firms with decline performances are high risk exposure while improved performance firms have less risk exposure. At the end it is find that the financial crisis impact is not clearly determine to change firm performance negatively.