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275924904-Finance-Research-proposal-MBA-doc

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INTRODUCTION:
I am going to write corporate financial decisions & ownership structure. And later on
there impact on organizational performance.
Corporate financial decision includes all financial decisions that a corporation has to
make most of the time regarding

Investment

Loan advancement

Capital structure
The ownership structure is defined by the distribution of equity with regard to votes and
capital but also by the identity of the equity owners. These structures are of major
importance in corporate governance because they determine the incentives of managers
and thereby the economic efficiency of the corporations they manage.
PROBLEM STATEMENT:
The problem statement of the research study is “ what and how corporate financial
decision & ownership structure influence the over all performance of the organization”
OBJECTIVE OF THE STUDY:
The main objective of our research study is to check the impact (effect) of corporate
financial decision along with ownership structure on the organizational as well as
individual performance.
SIGNIFICANCE OF THE STUDY:
The main significance of this research work is that, many studies shows the impact of
corporate financial decision on performance, the impact of corporate ownership structure
on performance, the impact of corporate social responsibility on performance, but they
see their impact separately.
I want to see the collective impact of corporate financial decision & ownership structure
on the performance of organization.
RESEARCH QUESTIONS:
Ass we all know research questions are developed on the basis elements based on
dimensions of basic concept.
Some of the possible research questions are…
 How much return your assets earn per year…?
 What is the percentage of return as compared to equity…?
 What is the ratio of debt against the assets…?
 Is the firm having sufficient current assets to pay off its current liabilities…?
 Is there any improvement in assets as compared to last year…?
 What is the percentage of cost in relation to sales…?
 What is its market position of company compared to industry..?
 Is the cash flow position (liquidity) is satisfactory…?
 Is there any unlimited liability of directors as per article of association or law…?
DELIMITATIONS:
In this study we include those financial decisions that are related to financial statements
only, other than financial statements are not included in this study.
We are conducting research on dairy industry as sample.
& in sample we take two companies

NESTLE

FAN MILK
LITERATURE REVIEW:
According to my area of research I study some literature; in that literature I see that
different peoples see organizational performance through different point of view. It
means that through whatever means company generate finance it will affect how it
successfully operates. Lawrence D. Brown, J. Mack Robinson Distinguished Professor of
Accountancy Marcus L. Caylor Ph.D. Candidate (December 7, 2004 Georgia State
University Georgia State University) they take one step ahead to performance they see
impact of performance, valuation, share holder payout on the governance score of the
firm. Karen hopper Wruck (APRIL 1997, Course module overview note.) he also work
for organizational performance keeping in focus the two things ownership & governance
& control system. He means to say that how the different forms of ownership create
influence on performance, same is the case with governance practices effects
performance.
Renée B. Adams Heitor Almeida Daniel Ferreira (September 10, 2003 Stockholm School
of Economics New York University SITE and FGV) they work on top management
decision making in relation with organizational performance, means they take CEO’s
decision making power as independent & see relation with organizational performance.
Ronghui Zhang (An International Review and Outlook Logos Verlag Berlin, 2006) they
see relation as well as impact of ownership structure on governance practices. Ownership
structure means that which kind of owner it has whether limited or unlimited, partnership
or company etc.
So after a short literature review I came to know that various author see organizational
performance differently with different perspective.
I am going to establish not new but a change idea of viewing organizational performance
with a view of corporate financial decision & ownership structure collectively.
THEORATICAL FRAME WORK:
Financing Decision
Dividend Decision
Unlimited Liability
Company
Non-profit
organization
Profit Organization
OWNERSHIP STRUCTURE
Limited Liability
Company
Financial
Performance
Non-Financial
Performance
ORGANIZATIONAL PERFORMANCE
Working Capital
Management
CORPORATE FINANCING DECISION
Investing Decision
Here we take three variables, out of which two are independent and one is dependent
Independent  corporate financial decision & ownership structure
Dependent  organizational performance.
 MODEL JUSTIFICATION:
We are going to see the impact of corporate financial decision & ownership structure on
organizational performance. In financing decision we see whether investment decision
have positive or negative impact on financial & non-financial performance. Same is the
case with financing. Dividend & working capital management.
On the other hand we also see in ownership structure of the firm whether it is limited
liability company or unlimited liability company and its positive or negative impact on
the financial & non-financial performance of the firm. Same is the case with profitable &
non-profit organization
SAMPLE:
We are taking samples from telecommunication companies by taking

MTN

ORANGE
As sample to represent whole the industry.
DATA COLLECTION METHOD:

Financial statements of both the companies

Ratio analysis of both the companies

Annual disclosure

AGM report

Audit report

Interview of directors & senior managers

Market performance of both companies in previous 3 years (data from stock
exchange and other relevant source)
DATA ANALYSIS TOOL:

Ratio analysis

Percentage change analysis

Vertical analysis

Trend & industry analysis

Others…
REFERENCES:

Mohammad Al Mutairi,Associate Professor Helen Hasan University of
Wollongong, A Panel Data Approach from Kuwait Stock Exchange.

J. Mack Robinson Distinguished Professor of Accountancy
Marcus L. Caylor Ph.D. Candidate, December 7, 2004 Georgia State University
Georgia State University.

KAREN HOPPER WRUCK, APRIL 1997, Course module overview note.

Renée B. Adams, Heitor Almeida, Daniel Ferreira, September 10, 2003)
Stockholm School of Economics New York University SITE and FGV.

Ronghui Zhang, an International Review and OutlookMLogos Verlag Berlin,
2006.

Keith D. Brouthers/Maarten Gelderman/Patrick Arens, Stakeholder and Strategic
Contingency Perspectives.

1Babar Zaheer Butt, 2Ahmed Imran Hunjra and 2Kashif-Ur-Rehman, World
Applied Sciences Journal 9 (9): 997-1002, 2010 ISSN 1818-4952, 1Foundation
University, Rawalpindi, Pakistan, 2Iqra University Islamabad Campus,
Pakistan.
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