The Data Collection From State Bank Of Pakistan Financial Analysis

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This study is based on the data collection from state bank of Pakistan financial analysis of non-financial companies listed on Karachi stock exchange (2006-2011).The publication provides the data of 411 companies in around 10 sectors from year 2006 to 2011. In this research we are not including the financial firms because their structure is totally different from non-financial firms and financial firms are services firms.

In this study we are using the panel data regression analysis and it considers both cross section and time series features. It helps to create the clear picture of the relationship between different variables because panel data considers multiple variables for different time periods. Panel data have many advantages over time series and cross sectional data sets. Provides large numbers of observations; It increases the level of freedom and decreases level of co linearity among the independent variables.

Why Panel Data?

The main purpose of panel data econometric model is to utilise, which comprises the data in cross section with time series data to deal with the variables which are being analysed in this study. In this study we worked on the cross sectional units over the 6 years’ time span and we made the observations on each variable during this time. According to Terra (2002), the panel data analysis have advantage in relating to the economic problems when dynamic effects and cross section variatrions are related. In
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