TY  - JOUR
TI  - Does financial reporting quality affect the investment efficiency of listed textile sector firms in Pakistan? A myth or reality
AU  - MUHAMMAD ZEESHAN
AU  - JIABIN HAN
AU  - ALAM REHMAN
AU  - IRFAN ULLAH
AU  - FAKHR E ALAM AFRIDI
AU  - SHAMS UR REHMAN
T2  - Industria Textila
AB  - The study investigates the relationship between financial reporting quality and investment efficiency in Textile sector
firms listed on the Pakistan Stock Exchange, due to the reason of being the highest-ranked sector with a maximum
number of listed firms in Pakistan. We use financial reporting quality as an independent variable, investment efficiency
as a dependent variable, and the firm’s annual cash, assets tangibility, and return on assets as control variables. We
analyse 100 randomly selected firms for the period 2005 to 2019. The study applies various estimators, namely Pooled
OLS, Fixed Effects, and Random Effects to identify which model better predicts results. The results demonstrate that
firm’s financial reporting quality and ROA have a positive significant effect on the investment efficiency of these selected
firms in all three models, but Random Effects Model estimates better coefficients than the counterparts. While the firm’s
annual cash predicts a positive insignificant effect on the investment efficiency in the case of all competing models.
Asset’s tangibility shows a negative significant effect on the investment efficiency of these firms. The study will help the
academicians in their researches, decision-makers, and top management of this particular manufacturing sector in
getting insight into framing and formulating their financial strategies.
DO  - 10.35530/IT.073.02.202055
VL  - 73
IS  - 02
SP  - 177
EP  - 183
LA  - English
UR  - http://revistaindustriatextila.ro/images/2022/2/010%20ZEESHAN%20Revista%20IndustriaTextila%20No2_2022.pdf
ER  -