The Impact of Financing Decision, Dividend Policy and Corporate Ownership on Firm Performance at Presence or Absence of Growth Opportunity: A Panel Data Approach, Evidence from Kuala Lumpur Stock Exchange

2008 ◽  
Author(s):  
Huson Joher Aliahmed
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Corporate Ownership ◽  
Kuala Lumpur ◽  
Financing Decision ◽  
Growth Opportunity ◽  
The Impact

scholarly journals The impact of financing decision, dividend policy, and corporate ownership on firm performance at presence or absence of growth opportunity: A panel data approach, evidence from Kuala Lumpur stock exchange

2008 ◽  
Vol 6 (1-4) ◽  
pp. 485-491
Author(s):  
Huson Joher Ali Ahmed ◽  
Keyword(s):  
Firm Performance ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Composite Index ◽  
Kuala Lumpur ◽  
Corporate Structure ◽  
Growth Opportunities ◽  
Growth Opportunity ◽  
Corporate Investors ◽  
The Impact

The aim of this paper is to analyze the impact of a company’s level of financing policy, dividend policy and corporate structure on firm performance measured by Tobin Q of Malaysian-listed at the presence or absence of growth opportunities. The study uses panel based regression approach to address whether or not policy variable such as dividend, leverage and corporate structure play differently in explaining the market based firm performance once firm faces growth opportunities or absence of growth opportunities. The analysis is based on a sample of 100 Composite Index components Companies on Kuala Lumpur stock exchange over a period of 4 years, from 1999 to 2002. Findings suggest that firm debt policy affect firm performance differently once firm face presence or absence of growth opportunities. The relationships are unique for each scenario. Once the firm faces no growth opportunities, increase in corporate debt has adverse effect on firm performance. In contrast, firms, which face growth opportunities, resorting external funding provide a multiplier effect on firm performance. While corporate dividend policy seems to be indifferent for the firms which face growth or no growth opportunities, but provide a greater explanation for the potential impact on firm performance implying that dividend policy remain most stable in Malaysian capital market which is valued by corporate investors. Corporate structure proxies by managerial ownership may not provide any meaningful explanation for firm performance over the analysis period. However, firms based both on domestic and multinational ownership provides strong explanation for firm performance once firms face no growth opportunity. Hence this study provides new lights on issue of corporate structure on firm’s performance

scholarly journals EFFECT OF DEBT POLICY, DIVIDEND POLICY AND OWNERSHIP OF COMPANY PERFORMANCE

2016 ◽  
Vol 9 (2) ◽  
pp. 165
Author(s):  
Frendi Frendi
Keyword(s):  
Firm Performance ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Measuring Method ◽  
Multiple Regression Model ◽  
Corporate Ownership ◽  
Independent Variable ◽  
The Impact ◽  
Debt Policy

The background of this research is prior empirical researches about firm performance analysis have no consistent result. This research is based on the research in Kuala Lumpur by Ahmed<br />(2008). The objectives of this research are to analyze the impact of debt policy, dividend policy, and corporate ownership which consist of management ownership and institutional ownership<br />on firm performance. The design of this research applies the impact of independent variable on dependent variable. The independent variable in this study are debt policy, dividend policy,<br />managerial ownership, and institutional ownership. The dependent variable is firm performance. This study based on a sample of 13 firms that listed in Indonesia Stock Exchange LQ-45 during 2005 – 2008. This research uses ratio scale. Data analysis applied measuring method on multiple regression model and uses SPSS for windows to examine the impact of independent variables on dependent variable. The result of result indicated that dividend policy has significant impact on firm performance, whereas debt policy and corporate ownership have no significant impact on firm performance

scholarly journals Exploring the Relationship between Financial Distress, Financial Flexibility, and Firm Performance: Empirical Evidence from Pakistan Stock Exchange

2018 ◽  
pp. 1-16
Author(s):  
Yasin Mahmood ◽  
Muhammad Faisal Rizwan ◽  
Abdul Rashid
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Financial Distress ◽  
Stock Exchange ◽  
Z Score ◽  
Firm Level ◽  
Financial Flexibility ◽  
Corporate Managers ◽  
And Performance ◽  
The Impact

Purpose– This main purpose of this paper is to empirically investigate the impact of corporate financial flexibility (FF) on financial distress and performance of firms listed on the Pakistan Stock Exchange (PSX). It enables to know how financial flexibility affects the firm financial strength, financial distress, and corporate performance. Design/methodology/approach –This study focuses on a firm level data of 192 non-financial firms covering the period 1992 - 2014. The fixed effect model logistic regression is applied by using unbalanced panel data to examine the impact of financial flexibility on financial distress, and performance of sample firms. Findings – The results reveal that financially flexible firms are less likely to face financial distress. As firms have more financial flexibility, the probability of financial distress decreases as well. It is also found that financially flexible firms are more likely to perform well than counterpart firms. By using the Altman z score as a measure of financial distress it is revealed that as the Altman z score increases, the chances of financial distress reduce as well. These findings also suggest the existence of pecking order in Pakistani firms; because firms rely on internal sources first, second go to external sources of financing. Practical implications – the findings of this study enable the corporate managers to avoid financial distress by obtaining and maintaining financial flexibility by keeping the leverage level lower than industry level. By attaining and maintaining financial flexibility, corporate managers can also raise the performance of the firm as well. It can also enable to make appropriate capital structure decision to finance managers of corporate firms. The creditors may provide the loan to sound firms who have no or least chances of financial distress. The lenders may also get benefit from it by requiring the interest rate as per risk of financial distress of the firm. Investors may avoid investing in firms having very little or no financial flexibility. JEL Classification– G33, L25 Keywords: Altman z score, financial flexibility, firm performance, return on asset, panel data, financial distress, modified z score.

scholarly journals Corporate Governance Mechanism and Firm Performance as Determinants of CEO Compensation: A Panel Data Analysis of Pakistani Listed Companies

2013 ◽  
Vol 8 (4) ◽  
pp. 307-314
Author(s):  
Zahid Irshad Younas ◽  
Bilal Mehmood ◽  
Asal Ilyas ◽  
Haseeb Asif Bajwa
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Panel Data ◽  
Fixed Effects ◽  
Ceo Compensation ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Governance Mechanism ◽  
Board Size ◽  
The Impact

The purpose of this study is to investigate the impact of corporate governance, firm performance on CEO compensation. More specific, firm performance, board size and audit expenditure are linked with CEO compensation. Using panel data for 151 Pakistani firms listed on Karachi Stock Exchange (KSE), fixed effects regression has been performed. The results indicate firm performance is negatively associated with CEO compensation, which hold managerial power theory. While, board size and audit expenditure showed a positive relationship with CEO compensation, which reflects the presence of human capital theory. The results of study are in line with the prior studies done on CEO compensation.

scholarly journals The Impact of Dividend Policy on Firm Performance under High or Low Leverage; Evidence from Pakistan

2015 ◽  
Vol 2 (4) ◽  
pp. 16-25 ◽  
Author(s):  
Adnan Ali ◽  
Farzand Ali Jan ◽  
Maryam Atta
Keyword(s):  
Firm Performance ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Control Variable ◽  
Balance Sheet ◽  
Secondary Data ◽  
Financial Sector ◽  
Lagrangian Multiplier ◽  
Dividend Payout ◽  
The Impact

This study aims to find out the impact of dividend policy on firm performance under high or low debt for all the non-financial sector companies listed on Karachi Stock Exchange. This study has utilized the secondary data published by State Bank of Pakistan in the shape of Balance Sheet Analysis of non-financial sector for the period of 2006 to 2001 with the sample size consisting of 122 companies. Panel data models have been applied to examine the impact of dividend policy on firm performance in the presence of high or low leverage. Mainly it has focused on using two performance measures i.e. Tobin’s Q and Return on Equity both as dependent variables while the control variable includes the firm size and growth with debt as the moderating variable. Breusch and Pagan Lagrangian multiplier test for random effects suggested that OLS is better than fixed effect. It is found that the dividend payout ratio has got significant positive relationship with Tobin’s Q and ROA when there is both less and high debt. In addition, there is no moderating effect of debt on the relationship between dividend payout ratio and firm performance of all the non-financial firms listed in KSE.

scholarly journals The effect of government ownership on Indonesia’s state-owned enterprises’ (SOE) firm performance

Accounting ◽  
2021 ◽  
Vol 7 (6) ◽  
pp. 1347-1352 ◽  
Author(s):  
Reynaldi Hermansjah ◽  
Sugiarto Sugiarto ◽  
Gracia Shinta S. Ugut ◽  
Edison Hulu
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Stock Exchange ◽  
Panel Data Models ◽  
Government Ownership ◽  
Return On Assets ◽  
Return On Equity ◽  
Significant Relationships ◽  
Equity Ratio ◽  
The Impact

This study aimed to analyze the impact of government ownership on Indonesia’s SOE’s financial performance, measured by Return on Assets (ROA) and Return on Equity (ROE) of 20 SOEs that are listed on the Indonesia Stock Exchange during the period 2013 – 2019, using the panel data models. According to the results, government ownership has a positively significant impact on the firm performance (ROA and ROE). Furthermore, the results show that along with government shares, debt to equity ratio, dividend payout ratio, and log of total assets also have significant relationships to the firm performance.

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