Application of Finance Techniques: An Empirical Analysis of Pakistani Corporate Sector

Abstract

The study reviews the core areas of the finance functions and their level of applications in Pakistani corporate sector. A total of seventy questionnaires were distributed in different companies but fifty three were received and forty nine were processed and the potential respondents were the finance executives and financial analysts of the companies. The study concludes that respondents are well aware of finance functions; out of these functions applications of capital structure decisions are being properly practiced while dividend policy is a major concern in most of the organizations. Investment appraisal techniques are not followed systematically due to constraints on capital investment and availability of resources. Working capital policy and financial performance assessment ratios are practiced in Pakistani corporate sector at large.

Keywords: Finance Functions, Corporate Sector, Finance Executives and Analysts