Investigation Into Data And Variable Construction Finance Essay - Free Essay Example

Sample details Pages: 4 Words: 1057 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? The corporate dividend policy is the one of the very important issue of advance corporate finance. John Linter (1956) developed the dividend model which becomes very famous and known as Linter Partial Adjustment Model. According to the Linter each firms i has target dividend payout ratio (ri). Don’t waste time! Our writers will create an original "Investigation Into Data And Variable Construction Finance Essay" essay for you Create order By using the target payout ratio linter calculated the target dividend at time (Dit*) as percentage of net earnings of the firms i at the time t (Eit), i.e Dit*= ri. Eit. In this study we used dividend payout ratio as dependent variable. It is calculated by percentage of net earnings of the firms paid at the end of period. The set of determinants of dividend payout ratio consist of following variables. CFO (cash flow), Sales, EBIT (earning) and Debt to Equity Ratio (leverage). Dependent Variable= Independent Variables Dividend payout ratio= CFO (cash flow) + Sales, + EBIT (earning) + Debt to Equity Ratio (leverage). Independent Variable: Four explanatory variables are used in this study, to find out their impact on the dependent variable as dividend payout. Operating Cash Flow: The liquidity or cash flows position is also an important determinant of dividend payouts. A poor liquidity position means less generous dividends due to shortage of cash. Alli et.al (1993) reveal that dividend payments depend more on cash flows, which reflect the companys ability to pay dividends, than on current earnings, which are less heavily influenced by accounting practices. They claim current earnings do no really reflect the firms ability to pay dividends. The market liquidity is defined as annual value of stock traded divided by the stock market capitalization. Market liquidity is one of very important factor that can affect the decision or behavior of the dividend policy. According to the Belanes et. al (2007) there is a negative relationship between the market liquidity and dividend yield in Tunisian Stock exchange (TSE). OCF= EBIT +Depreciation-Taxes H1: There is positive impact of CFO on dividend payout ratio. Debt to Equity Ratio (leverage): The leverage has been used as proxy of Debt to equity ratio and control variable in this study. Because leverage is very important variable for the determinants of dividend behavior if the level of the leverage is high its mean the firm is more risky in the cash flows. The effect of negative leverage on dividends payments is already documented. According to the Higgins (1972) and McCabe (1979) suggested that long term debt had negative impact on the amount of dividend paid. Rozeff (1982) found that the firms with higher leverage paid lower dividends in order to evade the cost of raising external capital of the firm. When reorganization results in a debt-equity swap, the firm becomes an all-equity firm. Since there are no tax benefits or the possibility of bankruptcy in the future, the total value of the firm is exactly the asset value. Debt to Equity ratio =Total debt / Total equity H2: There is negative impact of Debt to Equity on dividend payout ratio. Sales/Revenue: According to the signaling theory the high growth firms are smoother to pay their dividends to shareholders. Growth is the signals to the Shareholders the firms having high growth opportunities. The sales growth has been used as proxy of Growth in the empirical analysis of the study. The sales growth has been use as percent age change in sales annually as proxy of the growth. Sale is calculated by multiplying the price at which goods or services are sold by the number of units or amount sold. In this study sales calculated by total sales that is included local sales and export. H3: There is positive impact of Annual Revenue on dividend payout ratio. EBIT (Earnings before interest and taxes): Profits have long been regarded as the primary indicator of the firms capacity to pay dividends. Linter (1956) conducted a classic study on how U.S. managers make dividend decisions. He developed a compact mathematical model based on survey of 28 well established industrial U.S. firms which is considered to be a finance classic. According to him the dividend payment pattern of a firm is influenced by the current year earnings and previous year dividends. Baker, Farrelly and Edelman (1986) surveyed 318 New York stock exchange firms and concluded that the major determinants of dividend payments are anticipated level of future earnings and pattern of past dividends. Pruitt and Gitman (1991) asked financial managers of the 1000 largest U.S. and reported that, current and past year profits are important factors influencing dividend payments. Firms profitability is argued to be an important factor in determining dividend policy. It can be argued that profitable firms are more able to dis tribute dividends, and hence a positive relationship is expected between firms profitability and its dividend payments. This result is also supported by the signaling theory of dividend policy. In other words, profitable firms pay dividends to convey their good financial performance (Bhattacharya, 1979; Chang and Rhee, 1990; Ho, 2003; Aivazian et al., 2003).This earning is calculated by operating profit at the end of year. A measure of a companys ability to produced income from its operations in a given year. It is calculated as the companys revenue less its expenses (such as overhead) but not subtracting its tax liability or interest paid on debt. H4: There is positive impact of EBIT on dividend payout ratio Data and Sample Size: Sample size is consisting of twelve sugar companies listed in KSE (Karachi Stock Exchange) and period from 2001 to 2008. There are two types of sources available for data collection concerning research purpose i.e. primary and secondary data. The data in this research is secondary data which we sourced from published annual reports of the sugar companies from internet and also from Karachi Stock Exchange in Pakistan and State Bank of Pakistan. Research and Testing Instrument: The instruments used for collecting data for this research consisted of financial report (secondary data) of firms and SPSS as testing tool. During the analysis of data in SPSS, researcher has used technique of Multiple Linear Regression (MLR) model, because the instrument has scale types of date. Therefore, MLR model is the best tool to evaluate this kind of data. The statistical tool that is used to analyze the association between a dependent variable and four independent variables. Multiple Linear Regression estimates the coefficients of the linear equation, involving one or more independent variables that best predict the value of the dependent variable.

The Components Of Starbucks Organizational Culture

Recommend the key components of Starbucks Organizational Culture that add to its accomplishment in a worldwide economy. Demonstrate administration s part with making and managing the authoritative society. Hierarchical society has a huge effect on the general execution of an organization. Authoritative society is the arrangement of imparted, underestimated verifiable presumptions that a gathering holds and that decides how it sees, contemplates, and responds to its different surroundings (Barney, 1986). In this paper, I will inspect the components of Starbucks hierarchical society that added to its accomplishment in a worldwide economy, survey the adequacy of its administration choices in giving imaginative offerings to its clients, focus one key administration competency, and theorize on whether the organization would accomplish long haul supportability as a worldwide pioneer in the espresso business without the association s CEO, Howard Shultz. On account of the accomplishment of Starbucks, its hierarchical society has been driven and engaged by the originator and CEO, Howard Schultz. Howard needed to grow the organization and when he went to Italy before the redesign of the first Starbucks he needed to reflect the ideas of the cafà ©s in Italy. The key viewpoint to acknowledge here is that hierarchical society influences execution. Howard Schultz turned into the CEO of Starbucks in 1987. As a business person, he was powerful in persuading financial specialistsShow MoreRelatedEssay about Mgt 5001528 Words   |  7 PagesStarbucks’ Strategy Assignment 1 By: Allen Jones Luna 28 October 2013 MGT 500: Modern Management Professor: Dr. Tony Muscia Suggest the key elements of Starbucks’ Organizational Culture that contribute to its success in a global economy. Indicate management’s role with creating and sustaining the organizational culture. Organizational culture has a significant impact on the overall performance of a company. 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Corporate Governance Samples for Students †MyAssignmenthelp.com

Question: Discuss about the Corporate Governance New Tech Ltd. Answer: Jack should know that the corporate governance produces the following for New Tech Ltd.A good governing body gives clarity to the company's objectives and ensures transparency in management. When new boards of directors are elected, the formation of corporate governance bodies is of greater importance. They will be responsible for the results of the companies throughout the year. To form an effective board of directors, Jack must know that it must have highly competent directors (Carver and Carver, 2009). It means that companies require directors with celebrity status in the business world to add value to management. Rather, the fundamental criterion on which to base the selection of directors is their actual ability to make strategic contributions to business management (Feld and Ramsinghani, 2014). Executives who have enriching experiences such as having developed successful businesses or saved bankruptcy from a company represent a good approximation to this selection criterion. The Board of Directors allows in a Family Business, to separate the daily activities of the authentic management of the company, thus facilitating the discussion and analysis of the key issues in an independent and different table, and breaking with inertia, family commitments, etc. These effects can be noticeably better in the case that they participate in the Council, professional managers-consultants independent and outside the company (Hilb, n.d.). Below we explain to you what is the structure of the Board of Directors of a company considering that in general terms the Boards of Directors have a President, several Directors and a Secretary. The starting point is to visualize where the company will be in the next five or ten years. This context allows us to determine the critical experiences and the training that a director must have to guide the administration towards success. Therefore, the board members should have experience in the relevant technology. For example, if the strategic plan is to expand the business internationally, with mergers and acquisitions, the board should include experienced directors (Hirschey, John and Makhija, 2004).The board of directors must be constituted taking into account the diversity of the challenges that the company must assume and the directors must be selected in a way consistent with this purpose. It should not be forgotten that in practice, a board is a team. It is not unusual to observe in a team, clashes of personalities, conflicts, members who do not pay attention and members who make decisions on issues they do not know or do not understand. A board of 5 members is a good number to begin with, this is because with a lean board, it is easier to make decisions (Hirschey, John and Makhija, 2004). The chairman o the board is an integral part of the company. The president role is to establish the agenda of meetings, define roles, facilitate processes and discussions, help resolve conflicts and, above all, set the standards of behavior of directors through the policies set (Jalilvand and Malliaris, 2013).There are also certain dynamics that prevent work. For example, it is possible that issues of importance will be discussed in smaller groups outside the formal meetings without informing the other directors of the facts or the decisions taken. So it is important to hold formal meetings. Likewise, there may be issues that are not on the table, because they generate discomfort in some directors or in administration, as could be the consequences of bad decisions of the past. In other cases it happens that there is no process that ensures the adequate participation of all the directors, allowing behaviors of passivity or dominance (Lechem, 2003). Similarly, there are teeth less joints, which prefer not to question management to avoid conflicts. At these meetings discussion is not encouraged and dissent is not welcome. All of these experiences show that the principles guiding the development of high-performance teams also apply to boards. Thus as the chairman to the board, Jack must allow all views to be heard including the dissenting views from members of the board. The Board of Directors has been closely related to large corporations, but it is not the exclusive property of the same. The creation of a council may even be of greater value in small and medium-sized enterprises like New Tech ltd (most of which make up our business reality) as these are simpler and more flexible organizational structures that would facilitate the Advice. he Board of Directors has been closely related to large corporations, but it is not the exclusive property of the same (Karas, 2005). The creation of a council may even be of greater value in small and medium-sized enterprises (most of which make up our business reality) as these are simpler and more flexible organizational structures that would facilitate the Advice. Although each of the companies has its specific characteristics (size, type of business, location, etc.), in general terms the main functions and responsibilities of the chairman in relation to the board are as follows: Instructions: 1.Approval of the general strategies. Impulse of the Strategic Plan of the company. 2.The Chairman of a company must control the execution and achievement of the objectives of the strategic plan. 3Establishment and control of budgetary management of the company. 4 Overseeing the Creation of the right mechanisms to obtain truthful and quality management information regarding the company. 5 Giving direction on Decision making in the case of major investments or disposal of assets. The Chairman assisted by the Board of Directors may supervise operations of any type (sales, mergers, joint ventures, etc.). Control and supervision of senior management of the company. Approval of strategic alliances. Establishment of remuneration policy for senior managers. 10Establishment of the communication and information policy for the shareholder. It is clear that in order to form an effective board of directors, attention must be paid both to the selection criteria of its directors and to the team dynamics that must take place between them.The selection criteria for directors must be aligned with the needs and challenges of the long-term strategic business plan, while at the board level an atmosphere characterized by trust, teamwork and Ability to manage conflicts well (Steger and Amann, 2008). Investment house will impact the company in the following ways: When investment house buys some shares, they will be entitled to a few slots in the board, thus, they will influence major decisions of the board and the direction that New Tech takes.Corporate Governance Concept The agency problem in financial institutions: Members of the Board and Senior Management, May tend to impose their own agenda The problem of agency in the financial sector transcends the interests of the shareholder. The management of New Tech Ltd has effects on depositors or other clients, on the economy and on the fiscal condition of the State There is a large information gap between the participants. Some shareholders are not experts, nor are clients, and oversight may have a lag or ignore aspects of an entity's real performance. Concept of Corporate Governance Several definitions have been adopted, with different approaches: "It is the system (set of rules and internal organs) through which the management of a legal person is directed and controlled, either individually or within A conglomerate. Corporate governance provides a framework that defines rights and responsibilities, within which the governing bodies of an entity, including the highest management body, board or board of directors, legal representatives and other Fiscal auditor and the corresponding control bodies. Risk management Risk management is a strategic pillar of the Organization, whose main objective is to preserve the financial and equity strength of the Group, promoting the creation of value and business development in accordance with the levels of appetite and risk tolerance determined by the Bodies of government (Risk Management and Corporate Governance, 2014). At the same time, it facilitates the tools that allow the valuation, control and follow up of the requested and authorized risk, the management of delinquency and the recovery of the unpaid risks. The board should ensure that there is a good process for establishing the company's strategy, approving it, and monitoring that it is effective in management decisions. It is important for board members to be aware of the organization's objectives so that they can monitor that the management of the company is taking steps to achieve its objectives. Corporate values The governing body must monitor that there is a real understanding of The values of the organization. The lack of credibility is a product of the lack of conviction in the values of the organization. The board must give the signals of what is right and what is wrong, ethics, transparency and order. The members of the boards must be persons who stand out for their honor and be respected for their character in the face of not tolerating bad practices (Risk Management and Corporate Governance, 2014). Ensure control Ensure that the entity has an appropriate internal control system, that the organization is well conducted and o riented, That there is efficiency, productivity and fulfillment of objectives through order. The management body must also ensure that this is met. Be aware of the risk management and that there are adequate monitoring instruments to ensure the operation of the company. A common cause of corporate governance inefficiencies is the failure of internal mechanisms, such as shareholders 'meetings, depositors' assemblies, and boards of directors. In some cases, shareholders' meetings, because in the absence of a generalized culture of investment in risky assets (shares), are an ineffective instrument so that shareholders can control opportunistic behavior of managers (Steger and Amann, 2008). Well by the requirement of a minimum number of shares owned or represented to attend the Boards, with the subsequent delegation of voting of the minority shareholders in the banks where they deposited their shares; Or by syndicating the vote of significant packages of shares, with objectives almost never coincident with those of minority shareholders; Or even because the statutes of companies and banks violated the relationship between the capital possessed and the voting rights to exercise. Shareholders Announcement to shareholders is very crucial. It is necessary to notify the shareholders of the companys intent to reorganize the board of directors and the CEO intention to be a Chairman of the board to promote transparency as stipulated by the Company Act.Corporate governance is the essence of the free enterprise system, because it guarantees investors the fulfillment of the goal of value creation and the sustainability of companies by the management teams (Merna and Al-Thani, 2008). But also because the transparency and accountability of these executives must illustrate the decisions of all the interest groups of the companies and allow to evaluate the social responsibility of any business project in the face of taxation, economic growth and employment. And hence the need to also resort to corporate governance mechanisms external to entities, such as the correct and efficient functioning of capital markets, labor markets and products and services, and public regulation and supervi sion. The need for a governing body stems from the complexity of business, the ownership structure, and the financing of organizations.A modern board is responsible for the long-term vision and strategy of the company, to identify the environment where it moves and to move and to analyze possible businesses; To evaluate the management, to plan the succession of senior executives and to generate value (Merna and Al-Thani, 2008). The good meetings require time, competent people and with permanent capacity to learn and innovate to generate competitive advantages, product of the quality of the decisions. Corporate Governance and Financial System Several definitions have been adopted, with different approaches: "It is the process of policy definition, administration and control carried out by different organs belonging to the company (shareholders, directors, management) for the purpose of conducting it Get an end. This process should mitigate the various agency problems that exist between those involved and provide sufficient information to the different stakeholders. Way as the board of directors and senior management head the activities and businesses of the company. Especially in sectors such as technological, where supervisory authorities should exercise a more active role on the entities, verifying their positions of risk. To safeguard the interests of shareholders. One, the improvement of corporate governance with precise rules that demand greater levels of responsibility and transparency in the internal mechanisms of government and mitigate opportunistic behavior of managers. Another, greater regulatory capacity and better supervision of compliance with the recommendations of the Codes of Good Governance. References Carver, J. and Carver, M. (2009).The Policy Governance Model and the Role of the Board Member. Hoboken: John Wiley Sons. Feld, B. and Ramsinghani, M. (2014).Startup boards. Hoboken, N.J.: John Wiley Sons. Hilb, M. (n.d.).New corporate governance. Hirschey, M., John, K. and Makhija, A. (2004).Corporate governance. Oxford [etc.]: Elsevier JAI. Jalilvand, A. and Malliaris, T. (2013).Risk Management and Corporate Governance. Hoboken: Taylor and Francis. Karas, G. (2005).On earth. New York: G.P. Putnam's Sons. Lechem, B. (2003).Chairman of the Board. New York, NY: John Wiley Sons. Mallin, C. (n.d.).Corporate governance. Merna, T. and Al-Thani, F. (2008).Corporate risk management. Chichester, England: Wiley. Risk Management and Corporate Governance. (2014). Paris: OECD Publishing. Steger, U. and Amann, W. (2008).Corporate governance. Chichester, England: John Wiley Sons. Corporate Governance Samples for Students – MyAssignmenthelp.com Question: Discuss about the Corporate Governance Recommendations. Answer: Introduction Organization is operated and owned by two different persons. With the increasing complexity of business and strict legal compliance, each and organization has to appoint non-executive director as per the corporation act 2001. It is evaluated that non-executive directors is considered as independent director who has no pecuniary relation with company. He is deemed to be trustee for the shareholders and has to act in the best interest of shareholders. It is observed that as per the corporation act 2001 it is required by listed company to maintain 1/3 non-executive independent director who will analyze the business functioning of organization (Christensen et al. 2015). Requirement for appointment of Non- executive directors Non-executive director has no pecuniary relation with company and has not been employed in the same company or affiliated company since last three years. There are other several terms and conditions which are given under the Listing agreements and corporation act which should be followed by company to appoint non-executive director. The person who gets appointed in the company should not have any relationship with company either in terms of employees, or any other strategic alliance. Conclusion It could be inferred that appointment of non-executive director has made mandatory in listed companies with a view to increase the transparency of business functioning. Non- Executive director is appointed in company to curb the unethical business practice and legal compliance in determined approach. However, in board meeting resolution get passed only when the entire non-executive director give their consent (Pugliese, Nicholson Bezemer, 2015). References Christensen, J., Kent, P., Routledge, J. and Stewart, J., 2015. Do corporate governance recommendations improve the performance and accountability of small listed companies?.Accounting Finance,55(1), pp.133-164. Pugliese, A., Nicholson, G.,and Bezemer, P. J. 2015. An observational analysis of the impact of board dynamics and directors' participation on perceived board effectiveness.British Journal of Management,26(1), 1-25.

Martin Luther King Jr. Essays (195 words) - Martin Luther King, Sr.

Martin Luther King Jr. Martin Luther King, Jr., (January 15, 1929-April 4, 1968) was born Michael Luther King, Jr., but later had his name changed to Martin. His grandfather began the family's long tenure as pastors of the Ebenezer Baptist Church in Atlanta, serving from 1914 to 1931; his father has served from then until the present, and from 1960 until his death Martin Luther acted as co-pastor. Martin Luther attended segregated public schools in Georgia, graduating from high school at the age of fifteen; he received the B. A. degree in 1948 from Morehouse College, a distinguished Negro* institution of Atlanta from which both his father and grandfather had graduated. After three years of theological study at Crozer Theological Seminary in Pennsylvania where he was elected president of a predominantly white senior class, he was awarded the B.D. in 1951. With a fellowship won at Crozer, he enrolled in graduate studies at Boston University, completing his residence for the doctorate in 1953 and receiving th e degree in 1955. In Boston he met and married Coretta Scott, a young woman of uncommon intellectual and artistic attainments. Two sons and two daughters were born into the family