Problem statement This study aims to investigate the relationship between ownership structure and capital structure in an emerging market by using data relating to companies listed on the Main Board of Bursa Malaysia. 3. Research question This paper tries to provide an answer to the question below: a) Does dividend negatively relate to the leverage in Malaysia? b) Does profitability negatively relate to the leverage in Malaysia? c) Does liquidity positively relate to the leverage in Malaysia?
(Strategic Management Journal is part FT 45 Journal list and as a 4 rating on ABS for both 2009 and 2010. The understanding of the construction of the capital structure before Barton & Gordon (1988), is represented in figure 2. The equity/debt ratio was thought to be influenced only by the contextual financial paradigm and firm specific variables. Figure 2: Understanding of factors that influence equity/debt ratio before Barton & Gordon (1988) The contribution of Barton & Gordon (1988) rests in suggesting variables and interaction based on a corporate strategy framework that appears to hold promise in pursuing a behaviorally based theoretical explanation of capital structure decisions. Using the
On the contrary, assessing various stakeholders and their cumulative impact on the firm performance in compliance with the corporate governance can play vital role in understanding future prospects of the allied firm. The contemporary analysis of the impact of shareholding pattern on the firm performance can play vital role for investors to understand organizational business process and associated performance. It can help investors to make ROI oriented business decision etc. In this study, we aimed at investigating various key constructs characterizing relationship between the shareholding pattern and the form performance. To perform a case study, NIFTY-50 companies are considered where the annual data of the selected population or sample companies are taken for five years (i.2., from 2011 to 2016).
The insurance sector in India is still under developed as compared to developed countries, and despite private players now allowed to enter this sector, we only have a small number of providers. FDI would increase the number of insurance companies and may also make possible better plans at lower prices. But careful consideration is required to ensure that the investment stays for long term and does not get withdrawn, leaving the companies and their domestic customers in a miserable position, and not all profits are moved outside the country but some reinvested or spent in our country. Regulations need to be revisited to ensure that Insurance Companies are subject to relevant and strict governance. Increasing the FDI ceiling will make the Indian Insurance sector more vibrant and dynamic in the intermediate and long term.
(2006) found that the macroeconomic fluctuations are not fully judged by the New Zealand’s stock index. Beltratti and Morana (2006) had investigated the relationship between stock market and macroeconomic volatility using S&P data and found the causality direction runs from stock market to macroeconomic variables which is most strong than vice versa. Puah and Jayaraman (2007) had found that all variables show the long term relationship and stock prices are cointegrated with variables in Malaysian stock market. Liu and Shrestha (2008) found that the long relation exists among stock prices and the macrofactors in China stock market. It also explains that stock market has significant impact in the long run.
Cherukuri (1984) compared the cost of capital and financial leverage of American and Indian companies. This study make an empirical examination of the effect of financial structure on the cost of capital of a firm by employing cross-sectional analysis in less developed and developed capital markets. The results obtained showed that in less developed capital markets, moderate amounts of debt will lower the firm’s cost of capital, while in developed capital markets after allowing for the tax advantage of debt financing, the cost of capital to the firm is independent of its financial
In (1984), Grinblatt, Masulis, and Titman; found in their research that dividends positively influence the firm’ value. In (2008), De La Torre conclude in his paper that dividends affect positively the firm’s value, and Also Hussin and Ying found in their test on 120 listed Malaysian firms in (2010) that dividends and earnings announcement influence positively the firm’s stock prices. Another recent paper in (2006) by De Angelo, claims that the dividend irrelevance theory (MM) is irrelevant and the paper underlined the fact (MM) theory assume that 100% of the free cash flows is distributed to shareholders. In his paper Carl B. McGowan “A simplified approach to demonstrating the irrelevance of dividend policy to the value of the firm” showed that investors are free to follow any dividend pattern that looks best for them regardless the firm’s dividend pattern. Thus, the value of the firm is not determined by the pattern of the dividend stream but by the present value of the future dividends, regardless of the pattern.
This exploration covers all recorded organizations in the Tehran Stock Exchange somewhere around 2000 and 2008. As per the consequences of the study there is a direct relationship in the middle of profit and productivity. On the other hand, the outcomes additionally uncover that there is a converse relationship of these variables with P/E, beta rate and obligation degree. Besides, the aftereffects of the study demonstrate that there is no important relationship between the profit strategy and an organization's size and rate of held
According to (Jennifer and Dennis 2015) as he cited from D‟Amboise and Gasse (1980) premeditated the use of financial statement analysis by small manufacturers in Quebec, Canada and originate that small manufacturers in shoe and plastic industries officially started the analyses centered on financial statements and the findings discovered that manufacturing firms managerial decisions were mainly based on the financial reports prepared. The study used regression analysis to observe the relationship between financial ratio usage and SMEs profitability. Nevertheless, they could not determine any important relationship between earnings to sales and the number of financial ratios used by the owner in operational decision making. When struggles were finished to contain the effects of other managerial practices and differences in business environments, no suggestion between use of individual ratios and total incomes or total to sales was
• Managerial implications The paper signify that the method is not significant for long term business as their sustainable base. • Conclusion If both ends of seller and consumer understands the market base will helps in long terms. It all been said over by the authors view-point. Article 3: o Review of Literature for article 3 • Purpose of the study Aims to investigate the companies brand name perception over the sportswear market of China • Methodology adopted The created an analysis report over the company belongs to and where the company produces their goods. • Findings Analysis revealed that there is a impact of brand value in China rather than from where it belongs.