Relationship between financial risks and firm value: A moderating role of capital adequacy

The study of firm value and financial risks became more important after the global crisis 2007–2008, as required risk was mismanaged, resulting in a deterioration value. It is to relationship between This aims examine moderating effect capital adequacy on listed banks Pakistan. based half-yearly secondary data 560 sample observations from 2009 2021. Multiple regression panel estimation techniques were employed for analysis. used dependent variable, proxied by Tobin’s Q, along with five independent variables one variable. results this indicate that higher ratio (CAR) increases has Nonperforming loans, net interest margin, cost income are found have significant negative concludes stock prices Pakistan declining persistently, which causes stock’s worth shift being inflated undervalued.