PESTEL analysis - strategic management - Manu Melwin Joymanumelwin
PESTEL analysis is one important tool that executives can rely on to organize factors within the general environment and to identify how these factors influence industries and the firms within them.
noorulhadi Lecturer at Govt College of Management Sciences, noorulhadi99@yahoo.com
i have prepared these slides and still using in mylectures, Reference: Portfolio management by S kevin and onlin
The Concept
A stable strategy arises out of a basic perception by the management that the firm should concentrate on using its present resources for developing its competitive strength in particular market areas.
In simple words, stability strategy refers to the company’s policy of continuing the same business and with the same objectives
A firm pursues stability strategy when
1. It continues to serve the public in the same product or service, market, and function sectors as defined in its business definition.
2. Its main strategic decisions focus on incremental improvement of functional performance.
2. Corporate Restructuring is the process of redesigning one or more aspects of a company.
3. The process of reorganizing a company may be implemented due to a number of different factors, such as positioning the company to be more competitive, surviving a currently adverse economic climate, or acting on the self confidence of the corporation to move in an entirely new direction.
PESTEL analysis - strategic management - Manu Melwin Joymanumelwin
PESTEL analysis is one important tool that executives can rely on to organize factors within the general environment and to identify how these factors influence industries and the firms within them.
noorulhadi Lecturer at Govt College of Management Sciences, noorulhadi99@yahoo.com
i have prepared these slides and still using in mylectures, Reference: Portfolio management by S kevin and onlin
The Concept
A stable strategy arises out of a basic perception by the management that the firm should concentrate on using its present resources for developing its competitive strength in particular market areas.
In simple words, stability strategy refers to the company’s policy of continuing the same business and with the same objectives
A firm pursues stability strategy when
1. It continues to serve the public in the same product or service, market, and function sectors as defined in its business definition.
2. Its main strategic decisions focus on incremental improvement of functional performance.
2. Corporate Restructuring is the process of redesigning one or more aspects of a company.
3. The process of reorganizing a company may be implemented due to a number of different factors, such as positioning the company to be more competitive, surviving a currently adverse economic climate, or acting on the self confidence of the corporation to move in an entirely new direction.
Fundamentals of strategy - strategic human resource managementmanumelwin
Fundamentally, strategy is about defining intentions (strategic intent) and achieving strategic fit by allocating or matching resources to opportunities (resource-based strategy).
How to create value for your organization? Why TSR is the best metric for value creation? Why is it difficult to create sustainable value? How to build sustainable value creation strategy & create value for a longer period of time? Why CSR & brand value change not consider as a part of TSR? Why multiple compressions are so difficult to beat? Why investors & analyst discounts valuation multiple? How to transit majority investors without eroding TSR? How to create value in low growth economy? How to play your strategy with sustainable TSR matrix as per investors eye? Why investors communication is so important for value creation? Which strategy you should use for value creation? How to use value creation scenarios? Why cash strategy is so important in low growth economy?
If all these question bothers you before developing your company’s corporate strategy/value creation strategy then you must see your New Year’s
complimentary gift presentation
“A handy e-book on how to create sustainable shareholders value”
Role of board of directors -Corporate GovernanceRehan Ehsan
This Presentation states the role of board of directors in respect of corporate governance of Pakistan. Reviewing this clear the concept of their legal role in Pakistan.
Fundamentals of strategy - strategic human resource managementmanumelwin
Fundamentally, strategy is about defining intentions (strategic intent) and achieving strategic fit by allocating or matching resources to opportunities (resource-based strategy).
How to create value for your organization? Why TSR is the best metric for value creation? Why is it difficult to create sustainable value? How to build sustainable value creation strategy & create value for a longer period of time? Why CSR & brand value change not consider as a part of TSR? Why multiple compressions are so difficult to beat? Why investors & analyst discounts valuation multiple? How to transit majority investors without eroding TSR? How to create value in low growth economy? How to play your strategy with sustainable TSR matrix as per investors eye? Why investors communication is so important for value creation? Which strategy you should use for value creation? How to use value creation scenarios? Why cash strategy is so important in low growth economy?
If all these question bothers you before developing your company’s corporate strategy/value creation strategy then you must see your New Year’s
complimentary gift presentation
“A handy e-book on how to create sustainable shareholders value”
Role of board of directors -Corporate GovernanceRehan Ehsan
This Presentation states the role of board of directors in respect of corporate governance of Pakistan. Reviewing this clear the concept of their legal role in Pakistan.
The Impact of Liquidity on Profitability on Selected Banks of Bangladesh Samia Ibrahim
This research seeks to establish a relationship between liquidity and profitability which may assess in liquidity management in the banks in Bangladesh.There has been a wide range of study on the concepts of liquidity and profitability. My research differs from the previous works as such research was not done in the context of Bangladeshi banking sector using recent data.
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This study examines the underlying components that determine the dividend policy statement of corporations in Nigeria. The study purposively select ninety-four (94) corporations out of the universe of companies listed in the Nigerian Stock Exchange. Financial ratios were extracted and computed from published annual audited financial reports spanning 2007 to 2017. This was informed by the ex-post facto research design adopted to observe key indicators of these corporations in retrospect. The panel regression analysis was used to explain the numerical phenomenon collated. The Durbin-Wu-Hausman specification test found the fixed effect model to be more suitable. The empirical results indicate that financial leverage has a significant negative impact on dividend payout; liquidity has an insignificant positive impact on dividend payout policy; profitability has an insignificant positive impact on dividend payout decision; and company size has a significant positive impact on dividend payout dicision. The study concluses that liquidity, profitability and company size are the determinants of the dividend policy of corporations in Nigeria. More specifically, company size was found to be a major determinant to the dividend policy statement of corporations in Nigeria. The study suggests that, corporations should sustain their liquid positions, asset base and profit levels at all times to meet the universe of desires of their shareholders.
This article is about analysis of if corporate change their divide.docxchristalgrieg
This article is about analysis of if corporate change their dividend policy during the global financial crisis during 2007 to 2008 and using the lifecycle model of dividend by DeAngelo et al. (2006). It is true that dividend payouts will be affected due to a company profits, this article looks a further step into if the magnitude of the drop is justifiable by the company financial status or is there a dividend policy due to cash management changes and company viability factors.
The assumption is that 2006 was the base year taken till 2009. A timeline of 4 years sample was used. The author gathered, compared various models and data.
Corporate dividend policy did shift during the global financial crisis, the 3 different type of shift are mainly dividend cut, no dividend payout and dividend initiation is significantly lower during the sample period. There are several factors that affects the probabilities of a company dividend change, mainly cash ratio, firm size, profit growth rate , capital ratio. A big company with a high cash ratio has a lower possibility of dividend policy change compared to a small company with low cash ratio. The author has felt that DDS life cycle should include significant macroeconomic events as it has a significant impact.
This article is about investor’s sentiment and market reaction to dividend news in a European perspective. Three markets were studied in this case, which is UK, France and Portugal. There is a theory that suggest that is based on the market with asymmetric information, insiders whom had the upper-hand uses the dividend policy as a form of signal to convey their firm’s performance to less informed investors from outside the firm. Which means that with dividend increase it signals a good performance, and decrease meaning that the firm is not profiting.
The analysis concluded that market reaction to news about dividend change depends on investors’ sentiments during investment decision process.
The findings show the results as follows. In the UK market, when sentiment is increased, the market reaction is more sensitive to dividend increase and less sensitive to dividend decrease when the sentiment is increased for French market.
As for the French market, the market reactions are more sensitive to dividend decrease announcement for smaller companies.
The smaller firms are more sentimental about market’s reaction to news about dividend change in the UK market.
And firms with big growth or in distress are more sentimental about market’s reaction to news about dividend decreases in the UK and French market.
Determinants of dividend policies for ADR firms
Extensive research was conducted regarding three theories (lifecycle theory, signaling theory, catering theory) for explaining dividend policies. Among them, many researchers have supported lifecycle theory as the better recognized theory in explaining observed corporate cash dividend policies. The lifecycle theory states that established firms ...
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Dividend policy is said to be one of the crucial decision
in corporate finance management from past decades as
decision of dividend is linked with the financial
management objective of wealth maximization and profit
maximization it is always crucial decision. Which should
be given preference wealth maximization or optimum
capital structure? Wealth maximization is said to be
financial management practice which focus on increasing
the net worth of a company or firm so that return for
shareholders can be maximize. No universal consent has
yet come out after several decades of study. There are
theories and studies which have contributed to decide
amount of dividend. Some theories says that there is
relation between dividend decision and value of
firm(relevance theory) and some says there is no such
association(irrelevance theory).There are conflicting
viewpoint as far as the impact of dividend decision on the
value of the firm is considered. The objectives of this
research are firstly, to define the concept and scope of
dividend policy and secondly, to study the irrelevance
theory/ (Modigliani-Miller Model) of dividend policy and
relation between dividend policy approach and market
share prices. Secondary data has been taken for
research. The CNX Dividend Opportunities Index is
considered as Universe. The study is sourced by critical
and creative analysis (literature review) of research
papers and Case Study Method. There are not significant
fluctuations in share prices after declaration of dividend.
Sometimes these fluctuations are associated but not
positive always and there are other factors which
influence share prices. It will facilitate the organizations
to identify with the behavioral aspect of shareholders
which they can use to add value which move towards the
way to wealth maximization as well as profit
maximization.
Effect of Dividend Policy on Value Creation for Shareholders of Companies Lis...iosrjce
Several theories have been documented on the relevance and irrelevance of dividend policy. Many
authors continue to come up with different findings from their studies on the relevance of dividend policy. A
company’s management is dealing with competing interests of various shareholders, the kind of dividend policy
they adopt may have either positive or negative effects on the share prices of the company. The effect of a firm’s
dividend policy on the current price of its shares is a matter of considerable importance, not only to
management, who must set the policy, but also to investors planning portfolios and to economists seeking to
understand and appraise the functioning of the capital market. It is on this basis that the study sought to
establish the effect of dividend policy on value creation for shareholders of companies listed in the Nairobi
Securities Exchange. The objectives of the study were to establish the effect of dividend announcement on value
creation for shareholders of companies listed in Nairobi Securities Exchange, to establish the effect of dividend
payout on value creation for shareholders of companies listed in Nairobi Securities Exchange, to determine how
tax incentives influence value creation for shareholders of companies listed in Nairobi Securities Exchange and
to identify how free cash flows influence value creation for shareholders of companies listed in theNairobi
Securities Exchange. A questionnaire was used to collect primary data from the Finance Managers of the public
companies. The data wasanalysed using Regression Analysis, and descriptive statistics through the use of SPSS.
The findings indicated that all the variables contributed positively to value creation of shareholders of
companies listed in the NSE
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Impact of Firm Specific Factors on Capital Structure Decision: An Empirical S...Waqas Tariq
Abstract This study attempts to explore the impact of firm specific factors on capital structure decision for a sample of 39-firm listed on Dhaka Stock Exchange (DSE) during 2003-2007. To achieve the objectives, this study tests a null hypothesis that none of the firm’s specific factors namely profitability, tangibility, non-debt tax shield, growth opportunities, liquidity, earnings volatility, size, dividend payment, managerial ownership, and industry classification has significant impact on leverage using estimate of fixed effect model under Ordinary Least Square (OLS) regression. Checking multicollinearity and estimating regression analysis through Pearson correlation and autoregressive mode respectively this study found that profitability, tangibility, liquidity, and managerial ownership have significant and negative impact on leverage. Positive and significant impact of growth opportunity and non-debt tax shield on leverage has been found in this study. On the other hand size, earnings volatility, and dividend payment were not found to be significant explanatory variables of leverage. Results also reveal that total debt to total assets ratios are significantly different across Bangladeshi industries. Keywords: Capital structure, Leverage, Firm’s specific factors, Dhaka Stock Exchange Bangladesh.
Similar to Impact of Dividend policy on Shareholders Wealth (20)
The case study is about the thermal coal mine, named Carmichael coal mine. The mine is located northwards to Galilee Basin, Central Queensland in Australia. A wholly-owned subsidiary company Adani Australia proposed investments for the mine. The mining was decided to be open-cut and along with the incorporation of underground methods. Previously Adani Mining proposed a massive investment but due to rejections from various institutions downsized the project. This report while introducing the case, will highlight the major approvals, the criticisms and the impacts it can have. The report while covering the subsidies by the government will discuss the applicable legislation. Furthermore, the report will also highlight the implication, the mining industry can have on the environment, on native titles, and also over locals and communities. Finally, the report will discuss mining and agriculture dependency and the effect the former has on agriculture.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
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USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
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Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
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USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Falcon Invoice Discounting: Optimizing Returns with Minimal Risk
Impact of Dividend policy on Shareholders Wealth
1. Impact of Dividend Policy on Shareholders’
Wealth: A Study of Selected Manufacturing
Industries of Pakistan
Presented By:
Aasim Mushtaq
Zafar Iqbal1, Muhammad Arfaq Waseem2, and Muhammad Asad3
1Assistant Professor Mirpur University of Science and Technology AJK, Pakistan
2Research Associate University of Azad Jammu & Kashmir Campus Kotli AJK, Pakistan
3Lecturer Mirpur University of Science and Technology AJK, Pakistan
2. This study examines the impact of dividend policy on shareholders’ wealth in context
of Pakistan.
Thirty five companies randomly from three sectors; Textile, Sugar and Chemical are
observed in the study.
The annual data for these companies from 2006 to 2011 is used in the study.
Simple OLS technique for analysis is used to derive the results of the study.
The findings showed that dividend policy of the firm has significant positive impact
on shareholders wealth. Similarly firm growth rate also has significant positive impact
on shareholders’ wealth.
Firm size has significant positive impact on shareholders wealth; indicating that large
domain of operations of a business make it more capable to exploit maximum
opportunities and in position to earn greater amount of return due to greater
growth prospects so it ultimately place greater value to shares of large size
companies.
The results of study help the corporate management to better decide the level of
dividend to be distributed so that shareholders wealth could be maximized.
3. • Dividend policy has the significant importance in the financial decisions of
the corporation.
• Dividend policy is cause to increase the wealth of shareholders, finance
manager make different financial decisions.
• Dividend decision has great impact on firm financial decision and stock
price.
• The stock price increases when there is smooth payment of dividend exist.
• Investors do not prefer to purchase the shares of such type of companies
which cannot make payment regularly and of which the dividend decisions
have variability because of the risk of loss associated with these variations.
• Dividend policy plays a vital role at company in financial markets and it
directly affects the stock price of the company.
• If a company pays handsome return to its shareholders it will attract to the
new investors to invest their money in the company and vice versa.
• So we can say dividend policy have a strong impact on its share price.
Dividend policy is guidelines for financial managers, how to pay dividend to
the shareholders either through cash dividend or through fixed percentage
dividend.
4. Dividend distribution is considered one of the strategic corporate
decisions. The sudden increase or decrease in the dividend
payout can affect stock price both positively and negatively
(Fama et al. 1996). Further, Petit (1972) holds the similar view about
the company’s dividend policy and stock price reaction. In the
same vein, Asquith and Mullins (1983) find that, like dividend
increases, dividend initiations have a significant positive impact on
shareholder wealth. Much subsequent research has focused on
explaining the dividend increase induced positive stock market
reaction. The predominant explanation, by far, has been the
information signaling hypothesis significant impact on their wealth.
5. Relevance theory explains that dividend policy has significant effect
on shareholders wealth as well as firms’ values. If the dividend is paid
on regular basis, there must be an optimum payout ratio, that ratio
increase the market value of per share.
The life cycle theory is also quoted as one of the clarifications for dividend
payments. The main theme of the theory is that the firms face different stages
in their lives; they change their dividend policy according to the need of every
stage. This theory explained that firms pay fewer dividends in growth stage as
compared to their maturity stage; firms pay more dividends when there are no
growth opportunities in future.
6. Residual theory of dividend given by Miller & Modigliani (1961) explained that if
external financing for reinvestment is either not available or the external financing too
costly in any profitability opportunity. If firm has better investment opportunity
available for investment, so firm make investment and reduce dividend or pay no
dividend at all. There is no investment opportunity for firm, so firm pays more
dividends to shareholders.
The impact of dividend policy on shareholders wealth remains controversial issue. The
harder we look at the dividend picture, the more it seems like a puzzle, with pieces that just
don't fit together. Previous research in context of Pakistan has been incapable to provide
clear direction about dividend policy, a shift in importance is proposed. Despite the healthy
body research exists, there is a lack of clarity that either dividend policy has significant
impact on shareholders wealth or not.
7. The present study focuses on dividend policies and shareholder wealth. To achieve the
objectives of the study, the researcher has adopted the following question:
Does dividend policy have an impact on shareholders wealth?
• The objectives of the study are as follow:
To describe the concept of the dividend and its policy.
To identify the effect of dividend policy on the shareholders wealth.
8. Dividend payment policy is one of the most discussed topics and an essentialtheory of corporate
finance which still has its significance. Many researchers presented numerous theories and
pragmatic evidences, however the problem is quietunsettled and open for further debate. It is
among the top ten unsettled issues in economic literature and one that does not have
satisfactory clarification for the observed dividend behavior of the firms (Allen and Michaely,
2003; Black, 1976; Brealey and Myers, 2005). In advanced economies the stakeholders and
management of the firms decides very deviously whether to pay dividends to shareholders or to
retain in the business (Glen et al., 1995). The first model about dividend adjustment was
presented by Lintner in 1956. He suggests in his model that the changes in dividend are because
of the dividend payout ratio of current and last year. He found that the shareholders wish to
continue and return on their investment so managers tend to make partial adjustment in
payment ratio instead of changes in payment. However, the impact of dividend policy on a
corporation's market value is a subject of long standing controversy. Black (1974) exemplifies the
lack of consensus by stating "The harder we look at the dividend picture, the more it seems like a
puzzle, with pieces that just don't fit together.“ Because the academic community has been
unable to provide clear guidance about dividend policy, a shift in emphasis is proposed. In the
spirit of Lintner's seminal work, we asked a sample of corporate financial managers what factors
they considered most important in determining their firm's dividend policy. The academicians
also engaged in finding out the facts and issues relating to dividend policy and they made
different theories on this topic. There are various models presented by these researchers (Joos
and Plesko 2004). They used the survey method for finding the issues and factors that have
impact on such policy. On the basis of this survey they had found different views on such policy.
9. The study focuses the manufacturing sector. 35 companies randomly from three sectors
namely Textile, Sugar and Chemical are observed in the study. These companies are
selected on the basis of regular dividend payment pattern. Data from 2006 to 2011 for
these companies is collected from balance sheet analysis of State Bank of Pakistan. Market
capitalization data is collected from Business Recorder. Multiple Regressions is used to
analyze the data and to get answer to the queries of the study. Following quantitative
model is used for multiple regression analysis.
SHRW = β1 + β2DPS + β3GRW + β4Size + Ut
Where market capitalization is used as proxy for shareholders wealth (SHRW), DPS
is Dividend per Share, Size is measured in term of total assets and sale growth is
used as proxy for measuring the growth (GRW). Ut is there error term.
10. The results of the study are arranged as follows: first tables show the
descriptive statistics the second one exhibit the correlation matrix.
Then the results of multivariate regression are presented.
11.
12. This study provided orientation towards impact of dividend policy on
shareholder wealth in scenario of Pakistan. The results of the study reveal that
dividend policy of the firm has significant positive impact on shareholders
wealth in context of Pakistan. So our hypothesis is accepted. Dividend
payment effect is relevant to influence the shareholders wealth; current
payment of dividend reduces the uncertainty of investors and they place
high value on share price of the company. Similarly firm growth rate has
significant positive impact on shareholders’ wealth. This result also in line with
the general argument and theories propositions that level of firms’ growth
and shareholders’ wealth always move in same direction. Firm size has
significant positive impact on shareholders wealth; this too is in discipline with
theoretical argument as well as empirical realities. As large domain of
operations of a business is in position to exploit maximum opportunities and in
position to earn greater amount of return due to greater growth prospects so
it ultimately place greater value to shares of large size companies.