They find that external factors of the banks have significant impact on the profitability. Javaid et al (2011) examine the determinants of top 10 banks’ profitability in Pakistan from year 2004 to 2008 concentrating only on internal factors through the use of POLS method to analyse the impact of assets, equity, loans, and deposits on return on assets. They find that these variables have a major influence on the profitability. Due to diseconomies of scale, the results show that higher total assets may not lead to higher profits. Also, higher loans contribute towards profitability but their impact is not significant.
So the uncertainty of dividends increases with futurity. When dividends is considered with respect to uncertainty the discount rate cannot be held constant, it increase with uncertainty. These investors prefers to avoid uncertainty and would be willing to pay a higher price for share that pays the higher current dividends and all thing held constant. So the appropriate discount rate would increase with the retention ratio. [2, 4,
The result shows that institutional investors prefer dividend-paying firms to non-dividend paying firms. However, according to dividend-paying firms, institutional investors are more likely to hold low dividend-paying stocks. It should be noted, however, that stock repurchase had just been allowed before sample period. Subsequently, Lee et al. (2006) examine the relationship between dividend clientele and ownership structure in Taiwan stock market where the capital gain tax is zero and share repurchase is not allowed during the sample period.
Does the capital structure affects their market value? Does the capital structure and market value related to each other? This research investigates the relationship between capital structure and market value of firms in Malaysia The importance of the capital structure towards the market value of firm has been debated by some theories over times such as the Modigliani and Miller’s capital structure theory(1950) that hypothesised that in a perfect market which has no taxes, it does not matter how the firm finance its operation. They state that the market value is determined by the ability to generate profit from its operation and its risk of its
The higher the ratio, the more ringgit of a company convert the revenue into the profit. For the net profit margin of the company, it is slightly increase from 99.99% in 2014 to 100.04% in 2015. This may be due to increasing in the price of the product selling by Nestle (Malaysia) Berhad. The debt-to-equity ratio refers to the percentage of money invested by shareholders to a company. The higher the ratio, the more risky of the company for the shareholders to invested.
This may be different with respect to each of factors affecting an increase in the stock price of industries. According to Figure 1, the effect of unexpected changes of the price on the stock returns in the Tehran Stock Exchange was not significant, which this can be attribute to changes of the return affected by accounting factors. It seems that accounting indicators of food companies in the Tehran Stock Exchange has been drawn in such a way that stock returns are normally influenced by the supply and demand system. This can be considered as knowledge about the formation of industry returns. Furthermore, the amount of profit and loss of the company that as an alternative to the level of production, had not the effect on the stock returns, which are influenced by price volatility.
Senbeta present two findings in one hand remittance have positive relationship and effects with economic growth and in another hand they find no significant impact on total factor productivity. So, this paper clears that the relationship of positive with capital accumulation and conflicting effect in TFP. Zuniga (2011) Investigates and finds that remittance have positive, albeit small impact on economic growth without considering the role of intuitions. They investigate the macroeconomic level of developing countries using panel VAR. they finds geographical region also one factor.
The higher the inflation rate, the lower the economic stability. The low inflation rates have been effective in attracting FDI to developing country (Demirhan & Masca, 2008). The low economic stability increases the risk of the investors in face of losses. During high inflation period, the general prices of goods and services rise. This erodes the purchasing power of public as they need more money to buy a product in comparison to the time period before inflation.
Rising wages are a key cause of cost push inflation because wages are the most significant cost for many firms. (Higher wages may also contribute to rising demand) 2.2.2. Import prices If there is a devaluation then import prices will become more expensive leading to an increase in inflation. A devaluation or depreciation means the rand is worth less, therefore we have to pay more to buy the same imported goods. 2.2.3.
In this view the study looks at a particular part of the economy by focusing particularly on the financial sector. Even though, the study does not cover all the parts of the financial sector, but focuses only on the capital market and its activities on Nigerian economic growth. This is due to the importance of the capital market to the economic development of Nigeria because it provides long term funds needed for investment for the growth of an economy. The choice of the period of study, 1983-2013 is predicted on the reasoning that, the market has experienced remarkable developmental changes as well as improvement in the policy framework of the market. The study is limited by the records of downturn in some years as a result of the global financial