Professional Documents
Culture Documents
RESEARCH
PROPOSAL
GROUP MEMBERS:
Muhammad Aqib Adeel
076
Muhammad Imran
065
CLASS:
M.B.A 3(a)
DATE:
04-05-2011
SUBMITTED TO:
SIR MALIK FAISAL AZEEM
M.A.ADEEL
INTRODUCTION:
We all are well aware about the corporate governance, now we are going to discuss the
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 our research study is what & how corporate financial
decision & ownership structure influence the over all performance of the organization
M.A.ADEEL
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
M.A.ADEEL
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.
Mohammad Al Mutair, Associate Professor Helen Hasan University of Wollongong (A
Panel Data Approach from Kuwait Stock Exchange) they both conduct research on the
effect of financing decision on performance. It means that through whatever means
company generate finance it will effect 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.
Rene 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 CEOs
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. Keith D. Brouthers /Maarten Gelderman/Patrick Arens (Stakeholder and
Strategic Contingency Perspectives) they study the effect of organization structure &
management style on performance of the organization. Babar Zaheer Butt, Ahmed Imran
Hunjra and Kashif-Ur-Rehman (World Applied Sciences Journal 9 (9): 997-1002, 2010
ISSN 1818-4952 Foundation University Rawalpindi Pakistan, Iqra University Islamabad
Campus Pakistan) as name implies all of these are Pakistanis doctors & researchers one
these is our universitys professor (Mr. Babar Zaheer Butt) they all see different financial
decision like capital structure decision, dividend policy, investment appraisal techniques
& working capital management on the financial performance.
M.A.ADEEL
Investing Decision
Financing Decision
Dividend Decision
Unlimited Liability
Company
Non-profit
organization
Profit Organization
Non-Financial
Performance
OWNERSHIP STRUCTURE
Limited Liability
Company
Financial
Performance
M.A.ADEEL
ORGANIZATIONAL PERFORMANCE
Working Capital
Management
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 sample dairy industry by taking
NESTLE &
FAN MILK
Annual disclosure
M.A.ADEEL
AGM report
Audit report
Ratio analysis
Vertical analysis
Others
REFERENCES:
M.A.ADEEL
M.A.ADEEL