Market uncertainty and distance to default of non-financial firms in Pakistan
by Qasim Saleem; Zeeshan Ahmed; Maria Noreen; Arslan Aslam
International Journal of Trade and Global Markets (IJTGM), Vol. 16, No. 1/2/3, 2022

Abstract: The purpose of this study is to provide new facts about the interaction between distance to default (DtD) and the uncertainty for non-financial firms in Pakistan. For this purpose, the study chose the non-financial firms that issued TFCs over the period 2006 to 2018. The data was collected from the financial statements of firms and daily stock prices from the stock market. Three measures of uncertainty, like stock return volatility, stock market volatility, and systematic risk, are used for empirical testing of the hypothesis. A panel data technique is used, which indicates that stock return volatility, stock market volatility, and systematic risk positively affect the DtD of firms listed on the Pakistan Stock Exchange (PSE). The chances of default increase in case of uncertainty in the market. These findings are beneficial for regulators in formulating the measures to ensure the stability of non-financial firms that play a significant role in economic growth.

Online publication date: Fri, 06-Jan-2023

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Trade and Global Markets (IJTGM):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email