Premium Essay

Ddddd

In:

Submitted By sajjad123
Words 6183
Pages 25
Effect Of Dividends On Stock Prices

1

EFFECT OF DIVIDENDS ON STOCK PRICES

Effect of Dividends on Stock Prices– A Case of Chemical and Pharmaceutical Industry of Pakistan Kanwal Iqbal Khan University of Central Punjab, Lahore

Proceedings of 2nd International Conference on Business Management (ISBN: 978-969-9368-06-6)

Effect Of Dividends On Stock Prices

2

Abstract In Pakistan corporate sector is adversely facing competition due to economic downturn in the world and making efforts to survive in a competitive and uncertain economic environment. This study will help to improve dividend decisions of corporate sector through proper implementation of their dividend policies. This paper is an attempt to explain the effect of dividend announcements on stock prices of chemical and pharmaceutical industry of Pakistan. A sample of twenty five companies listed at KSE-100 Index is taken from the period of 2001to 2010. Results of this study is based on Fixed and Random Effect Model which is applied on Panel data to explain the relationship between dividends and stock prices after controlling the variables like Earnings per Share, Retention Ratio and Return on Equity. Results indicate that Cash Dividend, Retention Ratio and Return on Equity has significant positive relation with stock market prices and significantly explains the variations in the stock prices of chemical and pharmaceutical sector of Pakistan while Earnings per Share and Stock Dividends have negative insignificant relation with stock prices. This paper further shows that Dividend Irrelevance Theory is not applicable in case chemical and pharmaceutical industry of Pakistan.

Keywords: Cash or Stock Dividends, Stock Price, Fixed and Random Effect Model, Dividend Irrelevance Theory

Proceedings of 2nd International Conference on Business Management (ISBN: 978-969-9368-06-6)

Effect Of

Similar Documents

Premium Essay

Ddddd

...Practical 4 _______________________________________________________________________ To investigate the trajectory of a small ball as it rolls off a surface which is inclined to the horizontal Objective: * To investigate the trajectory of a motion in two dimensions. Apparatus and Materials: 1. Ramp 2. Wooden block 3. Pendulum bob 4. Plumb line 5. Steel ball 6. Wooden board 7. Carbon paper 8. Meter rule 9. Figure 4-1 Plasticine Setup: 1. Set up a ramp at the edge of a bench as shown in Figure 4-1. 2. Suspend a plumb-line from the edge of the bench as shown in Figure 4-2. 3. Mount a wooden board horizontally using two clamps so that the board is situated somewhere below the base of the ramp. 4. Place a sheet of blank paper on top of the board. 5. Place a piece of carbon paper on top of the blank paper. The ink-side of the carbon paper should be facing down. 6. When a ball is released at the top of the ramp, the ball will travel through a trajectory as shown in Figure 4-2. Figure 4-2 Theory: Let: g = 9.8 ms-2 u = speed of the ball as it leaves the ramp k = constant y = vertical distance (between the bottom of the ramp and the top of the board) x = horizontal distance (between the plumb-line and the mark on the paper) h = height of release of ball from the height of the bottom of the ramp. θ = angle the ramp makes with the horizontal (table surface) ...

Words: 495 - Pages: 2

Premium Essay

Ddddd

...fgd There are no reasons on why Burger Barn executives should not be optimistic of Creamy Creations as Burger Barn is a fast-food chain and is a bigger organization that has more model in terms of cash as part of the assets compared to Creamy Creations and they will have the ability to further blossom the business. At the moment when Burger Barn took over Creamy Creations, it is still profitable and the financial numbers have rose since they took over management. But the executives of Burger Barn need to prepare good plan if bad things may happen to the business, because Creamy Creations is still relatively new business and it was getting praised by the families and students from local community college. Burger Barn is a fast food chain, so they treasure time so they can’t make more money, but if they apply of system to Creamy Creations, it will cause trouble in the future, because the customer base of Creamy Creations are families and students from local, they will not want to be rushed when they come to buy their favorite ice cream at Creamy Creations. Besides that, Creamy Creations has already established the brand image and also customers have the faith in them. The potential future pitfalls that Burger Barn should be aware of will be that the top management message order might not reach the behind-the-counter workers as it is a big organization and it uses a hierarchy level communication flow. Sdfsdfsd fsf dsf sfsdf sdf sdf...

Words: 255 - Pages: 2

Premium Essay

Ddddd

...Muhammad Ali. Business Economics GM545 Sep 11 Sec C mtaimurali@gmail.com Gasoline is most valuable resource in today's world. It is the driving engine for all the develop and developing nations. All the major trade is done by using the power of fossil fuels. Fossils fuels are in great demand and their also supplied in large quantities using various means. The constant fluctuation of gas prices is due to many factors like politics, war and current economic situation. Whenever there is atmosphere of hostility in the middle east region the gas prices goes up. Even though the supply of crude oil remains the same, it is governments of world or OPEC way of making extra money. They know the fuel is a product that people will buy at any price, they might consume less of other things but they will consume gas. In economic terms you can say there are very less substitute for gasoline. They are other options like electric cars and ethanol but they are too expensive for everyone. A change in quantity demand for fuel does not bring a lot of change. People will consume approximately same amount of fuel but will reduce their spending on other products. Governments know that fact and use this for their own advantage. A very good example is third world countries which are under the blessing of IMF loans, it is very hard for them to collect taxes from people so they raise fuel prices. They make car cheaper to buy and raise fuel prices, which in turns bring revenue for these government...

Words: 1428 - Pages: 6

Free Essay

Ddddd

...ĐỀ ÁN M¤N HỌC VËn dông phu¬ng ph¸p thèng kª nghiªn cøu 1 vÊn ®Ò SV quan t©m ( vÝ dô: sù ưa thÝch mét lo¹i s¶n phÈm tiªu dïng…) Yªu cÇu • Lµm viÖc theo nhãm (tèi ®a 5 nguêi – kh«ng giíi h¹n sè tèi thiÓu) • §¨ng ký truíc §Ò tµi nghiªn cóu Thµnh viªn tham gia trong nhãm • KÕt qu¶: b¸o c¸o tæng hîp Cì mÉu ®iÒu tra: 150 ThiÕt kÕ ®uîc b¶ng c©u hái Tµi liÖu tham kh¶o • Lý thuyÕt thèng kª – LËp phu¬ng ¸n ®iÒu tra – Phu¬ng ph¸p thu thËp th«ng tin – Phu¬ng ph¸p xö lý kÕt qu¶ • Marketing – ThiÕt kÕ b¶ng c©u hái – Phu¬ng ph¸p tiÕn hµnh nghiªn cøu thÞ truêng C¸c phu¬ng ph¸p sö dông ®Ó tæng hîp – ph©n tÝch • Phu¬ng ph¸p ph©n nhãm • Phu¬ng ph¸p sö dông b¶ng vµ ®å thÞ thèng kª • Sö dông Mo; Me • Sử dụng kiến thức chương 1-5 Nªn sö dông c¸c phÇn mÒm th«ng dông ®Ó xö lý kÕt qu¶ (excel, SPSS, …) Thêi h¹n tiÕn hµnh • • • • §¨ng ký: tuÇn 3 Thêi gian thùc hiÖn: 10 tuÇn H¹n nép cuèi cïng: tuÇn 13 §iÓm ®¸nh gi¸ ®îc tÝnh cho tÊt c¶ c¸c thµnh viªn tham gia trong nhãm Phương án điều tra Xác định mục đích điều tra Xác định đối tượng điều tra Xác định nội dung điều tra Xác định hình thức, phương pháp tiến hành điều tra - Thiết kế phiếu điều tra và xây dựng các bảng biểu tổng hợp - Tuyển chọn điều tra viên, giám sát viên và hướng dẫn nghiệp vụ. - XD chương trình xử lý tổng hợp và phân tích số liệu. ThiÕt kÕ phiÕu ®iÒu tra • Ph¶i phï hîp víi môc tiªu nghiªn cøu. • C©u hái ®Æt ra ph¶i ®¬n gi¶n, dÔ tr¶ lêi, phï hîp víi ®èi tuîng ®uîc hái. • Tr×nh bµy ®Ñp, râ rµng....

Words: 949 - Pages: 4

Premium Essay

Ddddd

...Elderly Care Methods in the United States and China ANT101: Introduction to Cultural Anthropology Beverly Musso Professor: Dr. Marjorie Estivill June 26th, 2014 Elderly care, is something that has some role in every culture around the globe in one way or another, even if that way is neglecting the elderly and letting them fend for themselves, either way it is a part of humanity as a whole. Different cultures have different ways to approach this topic. I believe in the United States, and China, we are taught to respect and take care of our elders. While both countries believe in cherishing and taking care of their elders, their methods are different, because they have different ways of caring to them, have different statuses in each country, and have overall different beliefs around this topic. Each culture has their way of handling this topic, and I believe there is no correct answer to this, but exploring the different ways that cultures take on this task is important. To begin with, both the United States, and China agree that elders are important to society, and have wisdom that can only be gained through age. However, each of these countries have different ways of caring to their elders. For example china has the one child policy, which leaves a gap with much more older people then young to care for them. It is not uncommon for a Chinese household to have four grandparent’s two parents and one child. This phenomenon is known as “4-2-1”. Contrasting to the United...

Words: 273 - Pages: 2

Premium Essay

Ddddds

...UV2561 Rev. Sept. 7, 2011 FEDEX CORP. VERSUS UNITED PARCEL SERVICE OF AMERICA, INC.: WHO WILL DELIVER RETURNS FROM CHINA? On April 17, 2006, the International Air Cargo Association hosted its first-ever meeting in China. The location could not have been more appropriate. China was shaping up to be the world’s most significant market for air cargo, and Yan Yuanyuan, director general of China’s General Administration of Civil Aviation, had just announced that China would be opening up its air cargo market to an even greater degree. The major global cargo companies had been picking up their level of investment in China and were poised for growth: FedEx Corp. had just begun construction of a major regional hub in Guangzhou and already had over 200 Chinese cities in its international network, and United Parcel Service of America, Inc. (UPS), was just completing a new logistics hub in Shanghai and had recently begun domestic Chinese express package services. The question on the minds of many was which of these two cargo giants was going to make the most of this opportunity. Spurred in part by entry into the World Trade Organization in 2001, growth in trade with China had accelerated and the need for cargo shipment and logistics support had skyrocketed. On June 18, 2004, the United States and China reached a landmark air-transportation agreement that quintupled the number of commercial cargo flights between the two countries. The agreement also allowed for the establishment...

Words: 5421 - Pages: 22

Premium Essay

Ddddd

...Bait and Switch Arenda L. Monroe Strayer University Law, Ethics, and Corporate Governance Professor Craig S. Vrabec May27, 2011 Bait and switch is a deceptive sales technique in which a store advertises its product or service at a very low price to lure customers into the store and induce the customers to buy a more expensive product by telling that the advertised product is no longer available or is of poor quality. Bait and switch is a crime in most of the states and if damages are proved, it can be the basis for a personal lawsuit for false advertising (http://definitions.uslegal.com). 1. Betty drove three hours in one-hundred degree heat. Explain if this fact has any bearing on whether or not the dealer must perform in accordance with the published advertisement.  No. A dealership is not required to sell a person a car just because that person had a hard time getting to the dealership. Generally, an ad is not to offer but invitations for offers. Betty might argue that she relied to her the doctrine of detrimental reliance on the ad, the fact that Betty had some hardship to make her offer to purchase the truck does not obligate the dealership to accept her offer. Every business that deals with the general public must be aware of the various laws that have been passed to protect consumers. If you sell merchandise or provide services to consumers, you are subject to the rules and regulations set forth by the Federal Trade Commission. “The Bureau...

Words: 1028 - Pages: 5

Free Essay

Ddddd

...Physical Science Final Exam Name: _______Helen Carr______________________ Student Number: ____________________ Short Answer/Fill in the Blank: Type your answer in the blank, or in the space below the question. Do not use the internet, please use ONLY the textbook to create your solutions. Do not use outside sources.When you are ready to submit your exam for grading, attach the document to the Final Exam link in the left hand column. | Completion Complete each statement.  |   |  1.  | A car that increases its speed from 20 km/h to 100 km/h undergoes ____positive________________ acceleration.  |   |  2.  | It usually takes more force to start an object sliding than it does to keep an object sliding because static friction is usually ___________greater_________ than sliding friction.  |   |  3.  | In a closed system, the loss of momentum of one object ______is equal to______________ the gain in momentum of another object.  |   |  4.  | Using a hammer to drive a nail, it is the reaction force that brings the motion of the hammer to a stop but the _____action force__________ that drives the nail into the wood.  |   |  5.  | As an object’s temperature increases, the ______rate______________ at which it radiates energy increases.  |   |  6.  | When a person plucks a guitar string, the number of half wavelengths that fit into the length of the string determines the ___________pitch_________ of the sound produced.  |   |  7.  | The law of reflection states that...

Words: 831 - Pages: 4

Premium Essay

Ddddd

...Corporate strategy Our goal is to be the preeminent provider of semiconductor chips and platforms for the worldwide digital economy. As part of our overall strategy to compete in each relevant market segment, we use our core competencies in the design and manufacture of integrated circuits, as well as our financial resources, global presence, and brand recognition. We believe that we have the scale, capacity, and global reach to establish new technologies and respond to customers’ needs quickly. At Intel, we strive for transparency in how we do business and interact with our stakeholders. This section of the website is intended to provide content and links to key corporate information including a corporate profile, strategy, general corporate documents including board committee charters, and links to corporate governance & ethics, corporate responsibility, and executive biographies. We are the world's largest semiconductor chip maker, based on revenue. We develop advanced integrated digital technology, primarily integrated circuits, for industries such as computing and communications. Integrated circuits are semiconductor chips etched with interconnected electronic switches. We also develop computing platforms, which we define as integrated hardware and software computing technologies that are designed to provide an optimized solution. Our goal is to be the preeminent computing solutions company that powers the worldwide digital economy. We are transforming from...

Words: 559 - Pages: 3

Premium Essay

Ddddds

...Homework Set 2 MGT 240, Spring 2015 Inflation, Real and Nominal Cash Flows This problem set is due January 29th at the beginning of class. To solve this problem set, the material in classes 1-5 and RWJ Chapters 5 and 6 are particularly useful. Students may work in groups of up to 4 people and each group submits one write-up. 1. (5 points) Your bank offers four savings products. All products pay interest at the end of the compounding period. Product Annual pays an APR of 12.00% compounded annually, Product Semi pays an APR of 11.80% compounded semi-annually, Product Quarterly pays an APR of 11.60% compounded quarterly and Product Monthly pays an APR of 11.40% compounded monthly. If you have savings of $100,000 to deposit and will not make any additions to or withdrawals from this account for 4 years, which savings product would you prefer? Why? 2. (8 points) You are looking to save for retirement. You are currently 21 years old and plan to save for the next 25 years (you will start saving on your 22nd birthday and make your last deposit on your 46th birthday). On your 46th birthday, you will retire. Starting on your 47th birthday and continuing until your 76th birthday, you will make withdrawals of $60,000 per year from your account. How much do you need to deposit each year if the interest rate is 7.5% throughout the entire time? How much do you need to deposit each year if the interest rate is 5.5% throughout the entire time? 3. (8 points) You are looking to save for retirement...

Words: 966 - Pages: 4

Free Essay

Ddddd

...Orðflokkar: nafnorð, sagnorð, lýsingarorð Nafnorð fallbeygjast og taka með sér greini. Dæmi: hér er: hestur hesturinn um: hest hestinn frá: hesti hestinum til: hests hestsins Finnið nafnorðin í textanum (undirstrikið þau): Strætisvagninn kom alltof snemma og því misstu nemendurnir allir af honum. Kokkurinn missti hnífinn niður í gólfið. Ráðherrann las skýrsluna og sendi þingmönnunum öllum bréf um málið. ________________________________________________________ Sagnorð lýsa athöfn. Þau taka með sér nafnháttarmerkið að, t.d. að sofa, að lesa, að lenda, að stoppa o.s.frv. – Orðin sofa, lesa, lenda, stoppa eru því sagnorð. Dæmi um sagnorð í setningum: Jón sofnaði eftir að hann hætti að lesa í bókinni. Finnið sagnorðin í textanum (undirstrikið þau): * Ég ætlaði aldrei að geta klárað að lesa yfir ritgerðina. * Hún var lengri en ég hélt í fyrstu. * En svo kom andinn yfir mig og ég gat hugsað skýrt. Og ég lauk við lesturinn. ________________________________________________________ Lýsingarorð standa með nafnorðum og lýsa eiginleikum þess sem nafnorðið vísar til: árangursríkt nám, flottur gemsi Merkingarleg einkenni lýsingarorða: * Þau gefa til kynna einkenni alls þess sem nafnorð geta táknað: rauður bíll, sítt pils, lítið hús, góðir skór * Finnið lýsingarorðin í textanum (undirstrikið þau): „Þetta finnst mér afar falleg gjöf”, sagði Erna glöð í bragði. Þá roðnaði Jón svo mikið að hann varð rauður sem eldhnöttur í framan...

Words: 311 - Pages: 2

Free Essay

Ddddd

...Personal information: Name: Junhao Ran Gender: Male Birthday: Aug 07, 1991’ Birthplace: Jiangsu province in China. Email: ran@email.arizona.edu Phone: 520-450-1770 Education: Graduating from university of Arizona, on December, 2012. Major: Mathematics. Minor: Business Administration. Direction: Applied Mathematic with Statistics. Degree: Bachelor. Summary of Skills: Competitive analysis Data mining Predictive modeling Value analysis Trade show management Account management Business recovery and sustainability Conflict resolution Negotiation skills Strategic planning Statistics Accomplishments: In primary school, got “three good” student (good in study, attitude and health) citations every year. In middle school and high school, got several first price of Provincial Mathematical Olympiad contests. In college, I helped the professor in math department to do the research, and got praised from professor. And In a math class, I was very active and showed a lot of good idea to classmates and finally got a grateful letter from the instructor. These activities deepened the sense of community and the importance of organizational skills and ability to communicate with people more easily communicate with others. All my independent study got an S, and be highly praised by my prof. and classmates. Also, I did the internship at the Bank...

Words: 654 - Pages: 3

Free Essay

Ddddd

.../his/Stenhus/MA/ |REVOLUTIONER 1750-1850 | Den amerikanske revolution Materiale: Frederiksen 15-19 1. England havde store kolonibesiddelser i Amerika, hvordan var disse kolonier opbygget, herunder administration, økonomi og handel? - England havde 13 kolonier, som hver havde en repræsentativ forsamling, som sørgede for love for den enkelte koloni. Den udøvende magt lå hos en guvernør som var blevet udnævnt af den engelske konge. - Økonomisk set skulle al handel gå gennem moderlandet (England), det vil sige at handel mellem kolonier i Amerika var forbudt medmindre at vare kom til England hvorefter de kunne sælges videre. Kolonierne skulle også være råstofleverandør til moderlandet. Et merkantilistiske samfund. 2. Redegør for grundlæggende og udløsende faktorer for uafhængighedskrigen mellem England og kolonierne i Amerika - I april 1775 skulle en engelsk styrke konfiskere et våbenlager i Boston. De blev mødt af en flok bevæbnede kolonister. Dette endte i en kamp hvor mange englændere blev slået ihjel. - Kolonisterne havde forklædt sig som indianer, og var gået om bord på et engelsk skib, og kastet the’en overbord. - En engelsk soldat havde følt sig provokeret, og havde dræbt tre borger - Stor told. Et borgerskab som havde var blevet rige på at handle med hinanden ...

Words: 440 - Pages: 2

Premium Essay

Ddddd

...Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are you Hello, how are...

Words: 264 - Pages: 2

Premium Essay

Ddddd

...As we analyze the probability of Southwest, we took more considerations on the ROA instead of ROE. Since Delta has the negative balance for equity, it is not consistent to compare ROE among these four companies. The ROA ratio for Southwest is quite lower than the other three peer companies. Thus, we disaggregated the ROA ratio to two parts: Profit Margin and Asset Turnover. When we further comparing these two ratios, we found that the Asset Turnover rates of Southwest are in the middle range among all these four companies. However, the Profit Margin Ratios are low compared to its peers. The Comparative Income statement of Southwest shows that it has high sales revenue but it also has relative low net income among the peer groups. It is because Southwest has high expenditures on SG&A, depreciation, depletion and amortization, which are dragging down the net income of Southwest. Furthermore, we analyze the operating income profitability by comparing the RNOA( return on net operating asset), NOPM( net operating profit margin) and NOAT( net operating asset turnover) among these four companies. Southwest has an extremely low RNOA rate compared to its peers. As shown in the exhibit 3a, southwest has a much higher P/E ratio among the peer group. Also as shown in exhibit 3b, Southwest has the highest Net PPE compared to its peers. Southwest’s high PPE increase the Net operating Asset as well as decrease its RNOA ratio. We disaggregated the RNOA to NOPM and NOAT. As we previous mentioned...

Words: 420 - Pages: 2