1st ICARE Student's Conference - 2015
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/10239
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Item The relationship between dividend payout and company performances: a study of listed automobile companies in Sri Lanka(Department of Accountancy, University of Kelaniya, 2015) Manoji, P.The issue of dividend payout is very important one in current business environment. Dividend policy is the regulation and guidelines that a company uses to decide to make dividend payment to shareholders (Ajanthan 2013). The dividend policy decisions of firms are the primary element of corporate policy. Dividend represents a distribution of earnings to the shareholder of a company and it is usually declared at Annual General Meeting (AGM) and paid to shareholders. Payment of dividend is usually met by the company from its earnings and cash flow. What proportion of the earnings should be invested and what proportion should be distributed to shareholders as dividends remains the decision of the management. Dividend, which is basically the benefit of shareholders in return for their risk and investment, is determined by different factors or decisions in an organization. These factors or decisions are finance decision, investment decision, financing decision and liquidity management decision (Azeez & Latifat 2015). The objective of this research is to determine the relationship between Dividend Payout and Company Performances among listed Automobile Companies in Sri Lanka. The study sought to examine the relationship between dividend payout and firm’s performance of selected listed automobile companies during 2010 to 2014. Secondary data will be collected from the annual reports of the automobile companies. These data will be analyzed to test hypothesis by using SPSS software through descriptive and inferential statistics such as Correlation analysis and Regression analysis. The findings expect that a significant relationship between dividend payout and firm’s performance exists. The study therefore, will be concluded that dividend payout is an important factor affecting companies’ performances.Item Effect of capital structure on company performance in Sri Lanka(Department of Accountancy, University of Kelaniya, 2015) Abeyrathne, A.H.M.U.S.The objective of all financing decisions is wealth maximization and the immediate way of measuring the quality of any financing decision is to examine the effect of such a decision on the company’s performance. Capital structure is a financial tool that helps to determine ‘how do firms choose their capital structure?’ a firms capital structure is then the composition or structure of its liabilities. Therefore managers need to take decision very carefully regarding to the capital structure of company. Capital structure is defined as the relation between the debt and equity that is used to finance firm’s assets (Moyer 2001, McMenamin 1999). The choice of a capital structure of a firm can equally be viewed from the management and the ownership structure of the company (Du and Dai, 2002). Pindado and Torre (2004) posit that the capital structure of a firm is determined by the incentives and goals of those who are in control of the firm. Capital structure decision is the mix of debt and equity that a company uses to finance its business (Damodaran, 2001). The objective of this research is that investigates how the capital structure affects the company’s performance. The research is focusing on Impact of capital structure listed companies in Colombo Stock Exchange Market according to the variable and the study base on secondary data. The data are collected from published annual reports on individual companies, Colombo Stock Exchange books, Colombo Stock Exchange journals and magazines. The sample for this study is taken from 10 firms. The sample period is 10 years ranging between 2005 and 2015 and it is ensured that each of the firms has data for at least five years during this period under study. The method of data analysis use in this research work is the descriptive, correlation and regression technique. The data is on the key variables: ROI, ROA, debt-equity ratio, long term debt to capital employed ratio, total debt ratio and age. An exercise is carried out in this respect using debt-equity ratio, long term debt to capital employed ratio, total debt and age as Independent variable while using ROI and ROA as Dependent variables. Expecting findings are capital structure is significantly impact on company performance and capital structure measures are negatively related to firm performance.