Firm, Industry and Macroeconomics Dynamics of Stock Returns: A Case of Pakistan Non-Financial Sector

The available research literature on stock performance has primarily stressed the importance of asset price theories, macroeconomic and microeconomic, institutional differences. However, there is still an open question: Are any other factors those influence performance? This aims to answer this question by providing new insights into industry along with country-level firm-specific in conjunction non-financial sector firms listed at Pakistan Stock Exchange. study provides prevailing considering emerging economy, Pakistan. We find that are heterogeneous, suggesting applying a fixed effect approach for reliable estimation. To investigate issue, data from 80 companies spanning 17 years (2004–2020) were analyzed fixed-effect model. Our results revealed firm tangibility, munificence, gross domestic product, inflation money supply have negative, while size, growth, dynamism, Herfindahl–Hirschman index, exchange rate oil prices positive relationship financial performance. robust under alternative estimation approaches offer useful policy implications.