Article 1

In emerging economies debt is the major source of external financing. In early years not have effect on firms but later on its effect appeared.Debt can be used as expropriation mechanism. Debt governance highlight the role of ownership.

Debt plays disciplinary role in those firms which are over invested.The institutional changes also has effect on disciplinary role on debt.

Article 2

The choice of debt and equity when assets evaluation is based on outside value. In this paper asset value uncertainty has been discussed, the equity holders sell the assets and restructures their capital structure decisions.Assets which are of high uncertainty decreases the leverage but it does not affect the firms value at all and selling those assets cannot be feasible for the firm. Firms should have to invest in those assets who cannot be effect with high /low earnings.

Article 3

Financial development and corporate financing: evidence from emerging market economies. (Godfred A Bokpin, oct 2008)

Financial market development depend upon the time duration of the securities issued by the firm, they included long term financing resources as well as short term financing resources also.

Firm level can identify the optimal capital structure. The decision of optimal debt /equity ratio go parallel with the macroeconomic variables so therefore managers must have to more concern about the development of the financial markets. Different policies should be made to identify the need of the firm that whether they go for long term financing or short term financing. Firms should monitor maturity timing of securities at time of issuance for the development of macro level and must consider external factors also rather than considering only internal factors.

Article 4

. Firms issue more debt in hot debt market as compare to cold debt market firms with adverse selection cost issue more debt in hot debt market firms not balance their leverage without balancing their capital structure decisions.

Article 5

Debt has impact on earnings quality but high debt has negative impact on earnings quality of a firm.

The ratio between these two broad areas is positive at lower side and negative is at higher side of debt employment and infection point is round about 41%.If firms go for high debt they must have to pay high borrowing cost and thus reduces the earning quality.

Article 6

Changes in the debt to equity ratios is relevant with the long density function with no convergence moments. If standard form of debt to equity ratios has been employed for the purpose of financial variable so the result will not be consistent .

Article 7

Financial market development depend upon the time period of the securities issued by the firm which includes long term financing as well as short term financing.

Firm level can identify optimal asset mix. T he decision of optimal debt and equity ratio go parallel with the micro financing variable so managers are more concerned about the development of financial markets. Different policies should make by the managers to identify the need of the firm that whether it go for short term or long term financing. Maturity of securities at time of issue must consider and also take into account the external factors along with internal for the development of markets at macro level .

Article 8

If the new born firm go for initial public offerings in the stock market so the growth rate os its sales or the share price of its shares can effect on the company’s performance on the stock market.The return on equity and its market success cannot be measured easily several tests showed same results in this regard and there is no specific difference between them.New firms with high growth have chances to grow more than that of established firms. Although stock market good performance required qualitative,well skilled and well informed management as well as staff also, innovative firms can perform better so these all resources boost up the small and new firm performance on stock market.

Article 9

Maturity timings for the firms who are new is low which unable to pay the debt in the past and also for the new firm because the default risk for new firms is usually high because they have no experience so lender s not to trust on them for longer period. Maturity timings are longer for those firms whose owners have personal assets also to present in case of liquidation .Although short term loans are not suitable for those projects which not pay off early. Personal wealth play vital role for long term maturity loans borrowings.

As the firms go bigger and sustain in the economy then maturity is no problem for them.

Article 10

Intellectual capital plays vital role to determine the firm value and have impact to the cost of funds they borrowed. It includes all the resources that determine the value and the competitiveness of any firm. It also includes all financial statements. It includes physical, financial, human and intangible assets. Firms who disclose their financial reports on web is the better way to increase value and motivate investors to invest their money in those firm because they are must informed with the company position from the statements available on web.

Article 11

Firms go for equity financing seems to enhance the firm value and the quality because they can minimize budget constraints through equity capital. Low –tech companies have tangible assets and can easily be turn into cash and also have relatively sustainable cash flows so they can go for more debt as compare to High-tech companies have few tangible assets and their profit margin is also not consistent so they must go for little debt. IPO for low-tech companies are less under priced than for high-tech firms which are more under priced so that management high-tech firms must consider these all reason while going for IPO’s because these all reasons are usually ignored and all high-tech and low-tech treated similarly while taking capital structure decisions.

Article 12

Government of Pakistan tried to make its banking sector n economy free from interest since 1980 to 2002 but no specific changes had been seen during these decades. In 2002 although practically work was started on Islamic banking ideology but these all efforts were not sufficient and the reasons behind them were banks, Government itself, industrialists and many depositors. They were reluctant about