The operating performance has significantly declined along with the shareholder wealth after the transaction of merger has performed. Capital structure choices are challenging decision because using higher leverage can take a firm to risk of bankruptcy. PTCL is all set to redefine the established boundaries of the telecommunication market and is shifting the productivity frontier to new heights. So, the net profit margin ratio will also decrease. 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. Leverage Position 24 1. But a very important question rises here that how such fund will be generated.

The conjectured relationships among the variables are established on the basis of previous literature available. Companies in Pakistan 13 1. Financial risk is the risk to the stockholders that is caused by an increase in debt and preferred equities in a company’s capital structure. 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. PTCL no doubt is one of the strongest corporate enterprises not only in Pakistan but also in the continent known as Asia. Leverage increases the high risk of profitability H The results show the positive relationship of debt equity ratio with return on asset and sales growth, and negative relationship of debt equity ratio with earning per share, net profit margin and return on equity.

Steady growth saw addition of more than two million mobile subscribers every month throughout the last year.

case study on ptcl privatization

Later on we also tested to identify the relationship between leverage and on expected stock returns. The capital structure puzzle. Broadband Pakistan offers DSL services with unmatched reliability, affordability and connectivity.


Privatization of PTCL. An Unforgotten Failure of Governance

Subscriber base of fixed voice segment also witnessed growth during the year. This increase is attributable to the introduction of new services and packages and launching of campaigns to increase awareness of multimedia and broadband. Ghulam Shabir Shaikh who checked work on short term notice and appreciate thesis work by both of persons also a lot of detailed and valuable ;rivatization on this thesis work. PTCL no doubt is one of the strongest corporate enterprises not only in Pakistan but also in the continent known as Asia.

The identified technique was used to examine the impact of studied independent variable on the dependent variable i. They used spearman correlation and regression analysis method. The effect pycl size, growth and industry on the financial structure of manufacturing companies.

Also through articles ant essays of researchers, which they had been researched on companies of Pakistan. PTCL can quickly generate whatever this will cost.

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

In the business world, a company can use leverage to try to generate shareholder wealth, but if it fails to do so, the interest expense and credit risk of default destroys shareholder value. A general concept exists that financial leverage has significant impact pcl the financial performance of the companies.

case study on ptcl privatization

The number of cell phone subscribers touched nearly priivatization May Allah place in Hell to Musharraf, Shaukat Aziz and all their team members who are responsible to make us retired and unemployed at yet. 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 casrtotal debt to equities ratio, long term debt to equities ratio, and times interest earned.


The selection is made because the said organization was previously government owned and it has been privatized.

Error of the Estimate 1. There are nine major players competing in mobile financial services and branchless banking, from the telecom and banking sector. Companies in Pakistan 13 1. The debt to asset ratio of the company had declined considerably in FY05 but the trend reversed in FY06, declining again in FY After his guidance we are able to complete thesis through his step by step support for research work.

Growth of Telecom Sector in Pakistan after Deregulation Although tremendous growth has taken place in the Pakistan telecom sector but most of it can be attributed to the cellular growth.

Privatization of PTCL. An Unforgotten Failure of Governance

Informationswissenschaften, Informationsmanagement Use of Licensed and Unlicensed 2. More importantly we want them for their better living standards with increased values in this ever-shrinking globe of ours.

But, this was lower than the Variables 35 2. Ghulam Shabir Shaikh— supervisor who has given Many useful comments related to my topic. Conclusion 42 3.

Summary 33 2. Financial Analyst Journal, 24, Privafization Beta t Sig Constant 1 A comparative analysis of hotel and manufacturing firms. With several players entering the market, margins are declining, which will be offset by tremendous volume growth.

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