http://hdl.handle.net/123456789/11984 Tue, 10 Nov 2026 13:26:55 GMT 2026-11-10T13:26:55Z http://hdl.handle.net/123456789/21928 The Role of Capital Structure, Operational Efficiency, and Corporate Governance in Enhancing the Financial Performance of Islamic Banks in Pakistan Ameer Hamza Khan, 01-321251-004 This research looks at how capital structure, operational efficiency, corporate governance, and Shariah governance affect Islamic banks in Pakistan. This research deals with an issue in Pakistan's dual-banking system. Currently, Islamic banking, in sharp contrast to profitability and efficiency, has grown substantially in terms of assets, deposits, and branches. This has made Islamic banking the preferred choice among customers. This research aims to look at the factors within the bank that can be improved and that are in the control of management and regulators. Therefore, the research is limited to bank-specific factors. This research uses a quantitative explanatory design with a sample of six full or converted Islamic banks (2020-2024), resulting in 30 bank-year cases. Financial performance is primarily defined in this research as return on assets and return on equity. Capital adequacy ratio is used to measure the capital structure. Cost-to-income ratio is used to measure operational efficiency. Board size and size of the Shariah Supervisory Board are used to capture governance, while size of the bank is captured using the logarithm of total assets. Descriptive statistics, trend analysis, correlation analysis, Hausman test, and random effect regression are used to establish the proposed relationships. Findings indicate that operational efficiency is the most reliable performance driver. Capital adequacy shows a positive relationship with return on assets and returns on equity, indicating the presence of capital buffers increases performance and does not merely serve the purpose of risk mitigation. Performance also shows a positive relationship with the size of the bank, indicating the benefits of increased operational scale. In the case of the governance variables, positive patterns are observed in the direct and correlational relationships, though the size of the boards, whether of the Board of Directors or the Shariah Board, is not significant in the final random-effects models. This is attributed to the limited variance of these variables across banks and time periods. For performance improvements, the thesis recommends the managed costs, optimally utilized capital, and the improved data driven monitoring systems and governance disclosures. Further, the thesis recommends the improved data driven governance disclosures and more uniform documentation, both at the level of banks and the Banking Regulatory Authority, to facilitate forthcoming studies with increased temporal scope and deeper investigation. Supervised by Dr. Asma Zeeshan Thu, 01 Jan 2026 00:00:00 GMT http://hdl.handle.net/123456789/21928 2026-01-01T00:00:00Z http://hdl.handle.net/123456789/21927 Validation and Re-Estimation of Altman’s Z″-Score Model for Financial Distress Prediction in Financial Institutions of Pakistan Meena Saadiq, 01-321251-051 Financial problems forecasting plays an important role in financial management and, especially, in economies that rely on their stability to grow financially. The base of any economy comprises the following types of financial entities: banks, insurance firms, and development finance organizations. In Pakistan, these entities play a significant role in economic development due to financial activities conducted by them through investment, lending, and financial interpretation. Nevertheless, severe economic consequences may occur because of financial instability in these companies. The Altman Z-Score model, which was designed back in 1968, is one of the most common models that predict the financial crisis. This particular method measures the probability of bankruptcy through the use of financial ratios. Z' and Z'-Score models were developed throughout time as improvements to increase their applicability in different environments such as non-manufacturing organizations and those in the developing markets. Financial organizations have a unique characteristic that sets them aside from other non-financial organizations, even though this model is commonly used. First of all, the financial sector depends on deposits and financial instruments and does not depend on assets. Additionally, these firms are subject to special regulatory systems while maintaining high degrees of leverage. Such characteristics make it uncertain whether the Altman Z-Score model is applicable to predict a financial crisis in such organizations, especially in countries like Pakistan. The Altman Z-Score model, which was designed back in 1968, is one of the most common models that predict the financial crisis. This particular method measures the probability of bankruptcy through the use of financial ratios. The financial institutions depend more on the deposits and the financial instruments than on the tangible assets, work within specialized regulatory structures, and have significant leverage. Such differences raise doubts about the applicability of the Altman’s Z-Score approach in forecasting financial troubles in such entities, particularly in developing countries such as Pakistan. The financial sector of Pakistan has faced various issues such as the rise of non-performing loans, liquidity constraints, and changes in policies. However, very little research exists regarding the effectiveness of the financial distress prediction model in the financial institutions of Pakistan. Such a vacuum has been created in practical and theoretical fields alike. Supervised by Mr. Shahab Thu, 01 Jan 2026 00:00:00 GMT http://hdl.handle.net/123456789/21927 2026-01-01T00:00:00Z http://hdl.handle.net/123456789/21929 Determinants of Green House Gas Emissions: role of Green Finance, Urbanization & Eco Innovation Arooba Hanif, 01-321251-046 Greenhouse gas emissions have emerged as one of the most critical environmental challenges facing both developed and developing economies. The BRICS countries—Brazil, Russia, India, China, and South Africa—have experienced rapid industrialization, urbanization, and economic growth, which have significantly increased environmental pressures. Although green finance and eco-innovation are widely recognized as important tools for promoting sustainable development, their effectiveness in reducing greenhouse gas emissions remains inconclusive in emerging economies. This study investigates the determinants of greenhouse gas emissions by examining the roles of green finance, urbanization, and eco-innovation in BRICS countries over the period 1998–2023. Balanced panel data comprising 130 observations were obtained from the World Development Indicators and other international databases. Carbon dioxide emissions (CO₂) were used as a proxy for greenhouse gas emissions. Green finance was measured by domestic credit to the private sector, urbanization by total urban population, and eco-innovation by high-technology exports. GDP per capita, energy use, renewable energy consumption, and trade openness were included as control variables. The study employed descriptive statistics, correlation analysis, multicollinearity diagnostics, Fixed Effects and Random Effects models, and the Hausman specification test. The findings reveal that urbanization and eco-innovation significantly increase emissions, while renewable energy consumption and trade openness significantly reduce them. Green finance shows a negative but statistically insignificant relationship with emissions. The Hausman test confirms that the Fixed Effects model is the most appropriate estimator. The study concludes that strengthening green finance, promoting renewable energy, and adopting sustainable urban policies are essential to achieving environmental sustainability in BRICS countries. Supervised by Dr. Shahab Aziz Thu, 01 Jan 2026 00:00:00 GMT http://hdl.handle.net/123456789/21929 2026-01-01T00:00:00Z http://hdl.handle.net/123456789/21900 How does Fintech Effect Profitability and Risk of Islamic and Conventional banks in Pakistan Javeria Malik, 01-321251-010 In this thesis, the profitability and risk profile of Conventional and Islamic banks with the empirical effect of financial technology are investigated. The study isolates the uneven performance results across various institutional paradigms using a complete balanced panel dataset of scheduled Conventional and Islamic banks operating throughout the ten-year period from 2015 to 2024. The Non-Performing Loans (NPL) ratios serve as a proxy for bank risk and financial soundness, whereas for profitability, return on asset and return on equity ratios are used to quantify the financial performance of the banks. For bank specific unobserved heterogeneity, the methodology used in this is Hausman specification test, from which we can find out which model to prefer either random effect or fixed effect. The evidenced based results show that although the adoption of digital channels generally lowers long-term cost-to-income ratios, structural differences cause its overall impact on profitability and stability to diverge considerably. Conventional banks show rapid digital integration due to aggressive product scalability and profit maximization, which results in immediate profitability increases but increased vulnerability to operational and technology hazards. In contrast, Islamic banks exhibit a delay in the initial adoption of FinTech between 2015 and 2024 because of the complexity of product structuring and strict Shariah-compliance verifications. While Fintech adoption shows no significant baseline effect on credit risk for either banking models the interaction effect reveal a more nuanced picture for Islamic banks. ATM and Mobile banking adoption are associated with higher non performing loans ratios suggesting that the risk implications of digital adoption for the Islamic banks depends on the specific channel and require close monitoring rather than assuming uniform resilence. In addition to providing crucial strategic benchmarks for commercial bank executives and the regulator of banks, the State Bank of Pakistan (SBP) is navigating the digital banking transformation, this research makes a distinct contribution to the dual-banking research in emerging nations. For bank managers, legislators, and regulators looking to advance technological innovation while preserving efficient risk management and the financial stability within the banking sector, the findings provide insightful information. Supervised by Mr. Khalid Hussain Thu, 01 Jan 2026 00:00:00 GMT http://hdl.handle.net/123456789/21900 2026-01-01T00:00:00Z