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The study estimates whether the role of non-banking financial institutions in managing economic vulnerability contributes to whether non-banking financial institutions' role in managing economic vulnerability contributes to higher economic welfare at the public level in Pakistan. The empirical estimation is carried out on secondary data ranging from 1990 to 2020. Using autoregressive distributed lag estimation technique, short-run and long-run effects on non-banking financial institutions are examined. The study contributed to the following: the short- and long-run connection between economic development and non-banking financial institutions (NBFIs) was found, while an experimental outcome indicated a causal connection between NBFIs and financial development improvement. Moreover, the non-banking financial institutes reduce the economy's real sector due to excessive risk in the financial sector. Our results reveal a correlation between non-banking financial integration and economic growth changes related to an expansion in loan recipients. The nominal interest rate significantly explains the economic growth of Pakistan. NBFI part in the liquidity procedure of budgetary resources is said to be in charge of financial development in creating nations. General consequences of the examination on NBFIs demonstrated a positive effect on the financial development of Pakistan. From policy viewpoint, the study suggests multiple policy implications to the practitioner of non-banking financial institutions and the national economy to curtail the adverse effects of economic vulnerability on national economic welfare in the public., (© 2022. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)

The role of risk assessment and capital structure is vital for the sustainable growth of firms and increasing the shareholders' wealth. This research explores the correlation between firm risk and capital structure using datasets from the sugar and cement sectors of Pakistan as a developing economy. This study is unique as it involved two firms of different nature (sugar firms operate seasonally while cement firms operate yearly) to view the real picture on the impact of risk and structure assessment on firms' credibility and shareholders' wealth. For this purpose, 15-year data (2000-2014) containing the financial statements of the target sectors were collected and the ANOVA analysis was applied with credit risk, liquidity risk, systematic risk, and firm size were used as the regressor variables, firm growth and dividend payout ratio as the control variables, and leverage as the regression variable. The findings showed that credit risk and liquidity risk are significantly correlated with leverage. This suggests that decision-makers pertaining to firms' risk and efficiency must focus more on risk to pursue a stronger and sustainable increase in shareholder wealth., (© 2021. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)