...Factors Influencing Corporate Capital Structure in Three Asian Countries: Evidence from Japan, Malaysia and Pakistan Muhammad Mahmud and Gobind M. Herani and A.W. Rajar and Wahid Farooqi KASBIT, KABIT, Sindh University, Indus Institute of Higher Education 20. April 2009 Online at http://mpra.ub.uni-muenchen.de/15003/ MPRA Paper No. 15003, posted 4. May 2009 07:34 UTC Indus Journal of Management & Social Sciences, 3(1):9-17 (Spring 2009) http://indus.edu.pk/journal.php Economic Factors Influencing Corporate Capital Structure in Three Asian Countries: Evidence from Japan, Malaysia and Pakistan Muhammad Mahmud*, Gobind M. Herani** A. W. Rajar*** and Wahid Farooqi**** ABSTRACT This study is an attempt to determine the factors that influence a firm’s choice of capital structure in three Asian countries: Japan, Malaysia and Pakistan. The specific objective is to investigate if country’s economic factors play a significant role in determining capital structure between markets. These countries are chosen in order to represent three different stages of economic development. Literature review reveals that considerable research has been made in the industrialized countries on the similar topic. Capital structure is one of the most complex areas of strategic financial decision making due to its interrelationship with macroeconomic variables. This study reveals that per capita GNP growth for Japan and Malaysia is significantly related to capital structure of firm and higher economic...
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...Determinants of firm Short term Financing behavior: Evidence from Listed firms in Pakistan Muhammad Shahbaz 0132-BH-BAF-10 Faizan Saeed 1091-BH-BAF-10 Session: 2010---2014 Department Of Economics GC University, Lahore Determinants of firm short term financing behavior:Evidence of Listed firms in Pakistan | Submitted to GC University, Lahore in Partial fulfillment to the requirement For the award of degree of BS (Hons) In Business Accounting and Finance By Muhammad Shahbaz Faizan Saeed Roll No | 0132 | BH | BAF | 10 | Roll No | 1091 | BH | BAF | 10 | Session: 2010-2014 Department Of Economics GC University, Lahore RESEARCH COMPLETION CERTIFICATE It is certified that the research contained in this dissertation titled “Determinants of firm short term Financing behavior: Evidence from Listed Firms in Pakistan”, has been carried out and completed by Mr. Muhammad Shahbaz (Roll No 0132-BH-BAF-10) and Mr. Faizan Saeed (Roll No 1091-BH-BAF-10) under my guidance and supervision. The quantum and the quality of the work, contained in this dissertation, are adequate for the award of Degree of BS (Hons.) in Business Accounting and Finance Date: ______________________ ___________________ Mr. Nisar Ahmed Supervisor Department of Economics ...
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...Journal of Business and Management December, 2009 Appraisal of Capital Market Efficiency on Economic Growth in Nigeria Sunday O. E. Ewah, Atim E. Esang & Jude U. Bassey Faculty of Management Sciences, Cross River University of Technology Ogoja Campus, Nigeria Tel: 80-5901-4300 Abstract E-mail: soniewah@yahoo.com The paper is an appraisal of the impact of capital market efficiency on economic growth in Nigeria, using time series data on market capitalization, money supply, interest rate, total market transaction and government development stock that ranges between 1961 to 2004. The model specification for the analysis of data is multiple regression and ordinary lest squares estimation techniques. The result of the study shows that the capital market in Nigeria has the potentials of growth inducing, but it has not contributed meaningfully to the economic growth of Nigeria. This is as a result of low market capitalization, low absorptive capitalization, illiquidity, misappropriation of funds among others. The empirical test indicates that, these variables satisfied the economic apriori and are statistically significant except total transactions and money. Thus it was concluded and recommended that, the capital market remain one of the mainstream in every economy that has the power to influence economic growth, hence the organize private sector is encourage to invest in it. This will enable the capital market improve its illiquidity status for economic growth and development...
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...Chapter 1 | | 1.0 | Introduction | | 1.1 | The background of dividend reinvestment plans in Malaysia | | 1.2 | Discussion on relevant issues | | 1.3 | Problem statement | | 1.4 | Objectives | | 1.5 | Significance of the study | | 1.6 | Scope of the study | | | | | | Chapter 2 | | 2.0 | Introduction/ An Overview | | 2.1 | Theoretical Framework of DRIP in Investors’ Point of View | | 2.2 | Theoretical Framework of DRIP in Investees’ Point of View | | 2.3 | Concluding Remarks | | | | | | Chapter 3 | | 3.0 | Introduction | | 3.1 | Data Description | | 3.2 | Theoretical Framework | | 3.3 | Empirical Model of the study | | 3.4 | Methods to be Used | | 3.5 | Concluding Remarks | | | | | | References | | | | | 1.0 Introduction: Dividend Reinvestment Plan (DRIP) is an equity investment option that allows shareholders’ dividends directly purchase shares of common stock of the paying corporation instead of receiving cash dividends without going via a stock broker. There are three different types of DRIP which are open-market DRIP, new-issue DRIP and combination of open-market and new-issue DRIPs. Open-market DRIP is where the firmuse reinvested dividends to buy its outstanding shares in the open market to satisfy the needs of participating shareholders. New-issue DRIP is where the firm raises capital by selling their authorized but unissued shares or treasury stock to participating shareholders. DRIP...
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...CapStrMktPower I M Pandey CAPITAL STRUCTURE AND MARKET POWER I. M. Pandey Indian Institute of Management Ahmedabad Vastrapur, Ahmedabad 380015 India E-mail: impandey@iimahd.ernet.in W. P. No. 2002-03-01 March 2002 i CapStrMktPower I M Pandey CAPITAL STRUCTURE AND MARKET POWER I M Pandey ABSTRACT This paper provides new insights on the way in which the capital structure and market power and capital structure and profitability are related. We predict and show that capital structure and market power, as measured by Tobin’s Q, have a cubic relationship. That is, at lower and higher ranges of Tobin’s Q, firms employ higher debt, and reduce their debt at intermediate range. This is due to the complex interaction of the market conditions, agency problems and bankruptcy costs. We also show saucer-shaped relation between capital structure and profitability because of the interplay of agency costs, costs of external financing and debt tax shield. To our knowledge, we are the first to uncover these results. Key words: capital structure; market structure; market power; Tobin’s Q; riskshifting; moral hazard; agency problems; pecking order; trade-off theory; asset substitution. ii CapStrMktPower I M Pandey CAPITAL STRUCTURE AND MARKET POWER INTRODUCTION In corporate finance, works of Modigliani and Miller (1958; 1963) about capital structure irrelevance and tax shield advantage paved way for the development of alternative theories and a series of...
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...CapStrMktPower I M Pandey CAPITAL STRUCTURE AND MARKET POWER I. M. Pandey Indian Institute of Management Ahmedabad Vastrapur, Ahmedabad 380015 India E-mail: impandey@iimahd.ernet.in W. P. No. 2002-03-01 March 2002 i CapStrMktPower I M Pandey CAPITAL STRUCTURE AND MARKET POWER I M Pandey ABSTRACT This paper provides new insights on the way in which the capital structure and market power and capital structure and profitability are related. We predict and show that capital structure and market power, as measured by Tobin’s Q, have a cubic relationship. That is, at lower and higher ranges of Tobin’s Q, firms employ higher debt, and reduce their debt at intermediate range. This is due to the complex interaction of the market conditions, agency problems and bankruptcy costs. We also show saucer-shaped relation between capital structure and profitability because of the interplay of agency costs, costs of external financing and debt tax shield. To our knowledge, we are the first to uncover these results. Key words: capital structure; market structure; market power; Tobin’s Q; riskshifting; moral hazard; agency problems; pecking order; trade-off theory; asset substitution. ii CapStrMktPower I M Pandey CAPITAL STRUCTURE AND MARKET POWER INTRODUCTION In corporate finance, works of Modigliani and Miller (1958; 1963) about capital structure irrelevance and tax shield advantage paved way for the development of alternative theories and a series of...
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...DETERMINANTS OF CORPORATE PERFORMANCE OF MALAYSIAN COMPANIES Kamal Naser Cardiff Business School Cardiff University E-mail:Naser@cardiff.ac.uk Mohd Zulkifli Mokhtar Cardiff Business School Cardiff University E-mail:MokhtarMZ@cardiff.ac.uk Accepted for Presentation at the Fourth Asia Pacific Interdisciplinary Research in Accounting Conference 4 to 6 July 2004 Singapore 1 DETERMINANTS OF CORPORATE PERFORMANCE OF MALAYSIAN COMPANIES ABSTRACT This study sets out to identify factors that influence corporate financial performance in a sample of Malaysian companies during the period 1998 –2001. Different measures of corporate performance were employed in the current study. ISO registration appeared to be the most significant determinant of corporate performance in the sampled companies. In addition, the results reveal that ROA, EVA, ROS and Inventory are the most significant variables affecting ISO. The findings also revealed that ISO companies out perform non-ISO registered companies. Keywords: Corporate Performance; ISO 9000; Return on Assets; Economic Value Added; Return on Sales; Inventory. 2 DETERMINANTS OF CORPORATE PERFORMANCE OF MALAYSIAN COMPANIES INTRODUCTION The subject of corporate performance has received significant attention from scholars in the various areas of business and strategic management. It has also been the primary concern of business practitioners (managers and entrepreneurs) in all types of organizations since corporate performance...
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..."Performance Evaluation of Chittagong Stock Exchange Limited and Comparison with the OIC Countries" (This internship report is submitted for the partial fulfillment of the degree of Masters of Business Administration with major in finance and Banking) Submitted By: Md. Forhadul Islam Metric No: R092036 Program: RMBA Date of Submission: 12 December, 2011 Department of Business Administration Faculty of Business studies International Islamic University Chittagong "Performance Evaluation of Chittagong Stock Exchange Limited and Comparison with the OIC Countries" (This internship report is submitted for the partial fulfillment of the degree of Masters of Business Administration with major in finance and Banking) Submitted To; Mr. Monir Ahmmed Assistant Professor, DBA International Islamic University,Chittagong [pic] Signature ot the Supervisor Department of Business Administration Faculty of Business studiesInternational Islamic University Chittagong Letter of Transmittal Date: December12, 2011 To The Dean Faculty of Business Studies International Islamic University Subject: Submission of the Internship Report. Dear Sir, I have great pleasure in submitting my Internship Report on "Performance Evaluation of Chittagong...
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...PROJECT TITLE | NDIRANGU SAMUEL NJOGO | A SURVEY INTO THE CAUSES OF FINANCIAL DISTRESS IN CO-OPERATIVE SOCIETIES IN NAIROBI | NDIANG’UI DOROTHY WAIRIMU | THE RELATIONSHIP BETWEEN DIVIDEND GROWTH AND RISK FOR COMPANIES LISTED AT THE NSE | MURIITHI ERIC | THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE PRACTICES AND FINANCIAL AND FINANCIAL PERFORMANCE OF INVESTMENT BANKS IN KENYA | NICHOLAS KIPYEGOMEN CHEPKOIWO | FACTORS AFFECTING THE DEVELOPMENT OF EMERGING CAPITAL MARKETS. THE CASE OF NAIROBI STOCK EXCHANGE | KIPKURUI KIMOSOP | THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF INSURANCE COMPANIES IN KENYA | OMENDA CHRISTOPHER ODHIAMBO | EFFECT OF STOCK SPLITS ON STOCK LIQUIDITY OF COMPANIES QUOTED AT THE NSE | GEORGE MARTIN NZIVE KASYOKA | THE USE OF STRATEGIC POSITIONING TO ACHIEVE SUSTAINABLE COMPETITIVE ADVANTAGE AT SAFARICOM LIMITED | MUTIE PETER KIOKO | RELATIONSHIP BETWEEN PRIOR PERIOD DIVIDENDS AND FINANCIAL PERFORMANCE OF FIRMS LISTED AT THE NSE | EVANS ODHIAMBO OYIEYO | BALANCE SCORE CARD AS A STRATEGIC MANUFACTURING INDUSTRY IN KENYA | SAMBA STEPHEN MIDEGA | INVESTIGATION OF CAPACITY MANAGEMENT STRATEGIES AND THEIR INFLUENCE ON SERVICE QUALITY: CASE OF NAIROBI SUPERMARKETS. | LUCY MUTHEU KIILU | CAUSES OF INDUSTRIAL DISPUTE IN GARMENT FACTORIES AT THE ATHI RIVER EXPORT PROCESSING ZONES, KENYA | JENIFFER N. MULI | THE RELATIONSHIP BETWEEN HOUSE PRICES AND MORTGAGE CREDIT IN KENYA | LOISE KINYUA WANJIRU | STRATEGIC RESPONSES...
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...Determinants Of Audit Fees: Empirical Evidence From Emerging Economy Kamal Naser* Hamed Abdullhameed** & Rana Nuseibeh*** Abstract This study investigates the structure of audit fees in an emerging economy, Jordan. Data were collected from a sample of companies listed on the Amman Stock Exchange that forms 90% of the total population and fairly presents all industrial sectors within the economy. Consistent with previous research, the results of the analysis revealed that corporate size, status of the audit firm, industry type, degree of corporate complexity and risk are the main determinants of audit fees in the Jordanian environment. Unlike previous studies, however, variables such as corporate profitability, corporate accounting year-end and time lag between year-end and the audit report date appeared to be insignificant determinants of audit fees in the sampled companies. Key Words: * Audit fees, Emerging Economy, Jordan. S S cientific Journal of Administrative Development Vol.5 I.A.D. 2007 Dean College of Business Administration, Al-Ain University of Science and Technology, UAE. ** Freelance Financial Analyst, Jordan. *** Link Officer, National Health Service (NHS), UK. 84 Determinants Of Audit Fees: Empirical Evidence From Emerging Economy Introduction Although a number of studies have provided empirical evidence on the relationship between audit fees and the attributes of audited companies, most have tended to focus on developed economies...
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...reports of Islamic banks of Gulf Cooperation Council (GCC) countries after controlling of bank size, financial performance and relevant public. Based on the framework of legitimacy theory, the findings show that CSR disclosure has a negative and insignificant relationship with board composition. On contrast, the study found insignificantly and positive association between CSR disclosure and other characteristics of board of directors (board size and the separation roles of CEO and chairman). With regards control variables, the study indicates that bank size and financial performance have a positive and significant influence on CSR disclosure, while relevant public has no effect. Therefore, the results indicate that corporate governance structure of board of directors within Islamic banks of GCC region does not play a major role on CSR disclosure, because of family control. These findings suggest the need for improving the existence of the best practice of corporate governance for Islamic financial institutions by imposing additional constraints on the board of directors’...
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...requested that facts, figures and empirical evidence may be furnished, in the context of the specific observations/suggestions made. 3. The views expressed in this discussion paper should not be construed as the views of the Government of India. The Department hopes to generate informed discussion on the subject, so as to enable the Government to take an appropriate policy decision at the appropriate time. EVOLUTION OF FDI POLICY IN INDIA 4. The evolution of FDI policy in India has broadly gone through four phases[1]. 5. The first phase, between 1948 and 1969, was characterised by a cautious welcome to foreign investment, as outlined in the Industrial Policy Statement of 1948, which observed that the ‘participation of foreign capital and enterprise will be of value to the rapid industrialisation of the country.’ It, however, noted that ‘the conditions under which it may...
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...DECLARATION This research proposal is my original work. It has not been presented to any other university or educational institution. Signature…………………… Date………………………… Robina Lumumba 065757 The research proposal has been submitted to the university with my approval as the university supervisor Signature…………………. Date……………………….. Mr. Alfred Gathogo DEDICATION I dedicate this research proposal to my dear mum, who was always there for me emotionally, spiritually and financially. She encouraged me to always do my best in everything I do including this project. I also dedicate the project to my colleagues and friends who gave me moral support and ideas while doing the project. They also dedicated their time to help me through the project. ACKNOWLEDGMENT First and foremost, I would like to thank the almighty God for giving me wisdom and understanding to successful accomplish the proposal. I thank Him for the great mind He has given to me no forgetting the good health and capability to attend the University. Also, I am thankful to my supervisor who took me through the proposal step by step and correcting me until I successfully finished it. He was patient with me throughout the whole experience. I am thankful for the knowledge he impacted in me and guiding me well. TABLE OF CONTENTS DECLARATION i DEDICATION ii ACKNOWLEDGMENT iii ABSTRACT vi INTRODUCTION 1 1.1 Background to the study 1 1.2 Michael Porters’ five forces model 2 ...
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...RETHINKING THE EAST ASIAN MIRACLE JOSEPH E. STIGLITZ AND SHAHID YUSUF Editors RETHINKING THE EAST ASIA MIRACLE JOSEPH E. STIGLITZ AND SHAHID YUSUF Editors A copublication of the World Bank and Oxford University Press i Oxford University Press Oxford • New York • Athens • Auckland • Bangkok • Bogotá • Buenos Aires • Calcutta • Cape Town • Chennai • Dar es Salaam • Delhi • Florence • Hong Kong • Istanbul • Karachi • Kuala Lumpur • Madrid • Melbourne • Mexico City • Mumbai • Nairobi • Paris • São Paulo • Singapore • Taipei • Tokyo • Toronto • Warsaw and associated companies in Berlin • Ibadan © 2001 The International Bank for Reconstruction and Development / The World Bank 1818 H Street, N.W., Washington, D.C. 20433, USA Published by Oxford University Press, Inc. 198 Madison Avenue, New York, N.Y. 10016 Oxford is a registered trademark of Oxford University Press. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Oxford University Press. Cover design and interior design by Naylor Design, Washington, D.C. Manufactured in the United States of America First printing June 2001 1 2 3 4 04 03 02 01 The findings, interpretations, and conclusions expressed in this study are entirely those of the authors and should not be attributed in any manner to the World Bank, to its affiliated organizations...
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...CONTEXT 1.0 Introduction Capital Market mainly refers to the Stock and Share market of the country. When banking system cannot totally meet up the need for funds to the market economy, capital market stands up to supplement it. Companies and the government can raise funds for long-term investments via the capital market. The capital market includes the stock market, the bond market, and the primary market. Securities trading on organized capital markets are monitored by the government; new issues are approved by authorities of financial supervision and monitored by participating banks. Thus, organized capital markets are able to guarantee sound investment opportunities. This paper reveals the various aspects of the Capital Market in Bangladesh. 1.1 Objectives Capital market, being an essential element of today’s economy, demands an intensive and special attention. The objective of this study is to look into every aspect of Bangladesh capital market and identify its various pros and cons along with some recommendations to overcome the existing problems. The specific objectives of this study are: To give an overall idea about the capital market-its structures, functions, importance, etc. To identify the current situations of our capital market of Bangladesh. To compare the relative conditions of Bangladesh capital market to other countries of the world. To sort out the problems associated with our capital market. To suggest some practicable solutions to these problems...
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