Behavioral finance challenged paradigms of standard finance by questioning rationality assumptions posed by market efficiency that had been a focal point for researches in finance and economics. This study aimed to test Strong-Form Efficient Market Hypothesis by employing data from emerging Stock Markets of Pakistan before its amalgamation and applied a different methodology. Firms were tested upon data availability and accordingly, ten firms were selected out of sixteen further for usability criteria of data. A part of the current study also validates the usefulness of dividend announcements for valuing the stock of KSE listed firms and suggested utilizing it in stock price revision. The market was found weak and strong form inefficient whereas the hypothesis for semi-strong form sustained overall

In view of corporate lifecycle theory, financial distress is one of the fundamental phase in the life of a firm. Despite being unaffected by Global Financial Crises 2008, that time period proved critical for the corporate sector of Pakistan. This study aims to measures the firm-level financial distress in Pakistan by employing the bankruptcy models of Altman-(1968), Ohlson-(1980), Zmijewski-(1984) and JZ-(2016) for all nonfinancial firms for the years, 2002-2014. The major findings show that Z-score is the best bankruptcy forecast model, followed by Zmijewski model. This study has significance and policy implications as it will help to choose best bankruptcy studies for timely prediction of financial distress leading towards bankruptcy and helps firms to trigger corrective measures thus helping firms from entering into failure.