Strategic Utilization and Factors Influencing Financial Derivatives in Pakistan's Financial Landscape

Abstract

The purpose of this study was to investigate the derivatives usage available in Pakistan. The investigation encompassed an in-depth analysis of the diverse services offered by Pakistani financial institutions, with a focused assessment aimed at understanding the impact of these services on derivative usage. The data was gathered using a customized questionnaire. Several banks' statistical tools were used to examine the data after different users of derivatives filled out questionnaires. The study employed cross-sectional data, drawn from diverse demographic categories within a single locality, facilitating the potential replication of the model in other countries through longitudinal financial institution data. The study has several practical consequences for financial service providers that aim to grow the derivative market in Pakistan by providing high-quality services for derivatives. This research contributes to the existing literature by delineating the determinants and patterns of derivative usage in the Pakistani context, thereby establishing a cognitive motivation relationship. It uses a cognitive motivation relationship. This study is useful in the financial institutions/banking industry for a better understanding of this concept.