FINANCIAL PERFORMANCE AND DIVIDEND PAY-OUT OF ENERGY COMPANIES IN CHITTAGONG STOCK EXCHANGE OF BANGLADESH
Abstract: The objective of this study was therefore to ratify whether dividend payout is significant in making investment decisions. The study further sought to establish the implication dividend payment has on financial performance of listed companies in the energy and petroleum sector in Chittagong Stock Exchange. Dividend Payout has been a pertinent issue for both organizations and investors. Most investors prefer to invest or retain their investments in companies which declare dividends regardless of their cashflows. Companies therefore strive to declare dividends to send positive shockwaves to investors to promote investor confidence. Secondary data from all the five listed companies in the energy and petroleum sector was used for the period 2009-2018. A descriptive design was deemed appropriate for the study. Dividend payout ratio was used as the independent variable of the study where Return on Assets was the dependent variables of this study. Multiple regression analysis was used to determine relationships between the predictor and the dependent variable.
[ FULL TEXT PDF 1-5 ] DOI: 10.30566/ijo-bs/2019-11-5
SIGNIFICANT ISSUES OF FINANCIAL LITERACY AND APPLICATION IN THE STOCK MARKET: A DESCRIPTIVE STUDY ON BANGLADESH CAPITAL MARKET
Abstract: Lagging behind of financial knowledge, investors are not able to furnish and utilize their invested fund in the stock market. The complexity and advancement of current financial markets as well as instruments, investors should have financial knowledge in everyday life, such as comparing different financial instruments, deciding how much to save, when and where to invest, when and where to get the financing and other financial matters. Furthermore, the needs for Financial Literacy have become increasingly significant with the globalization and the easier access to financial markets as well as the rapid growth in diversified financial products. The study aims to provide financial literacy knowledge and how to apply the knowledge into the capital market. The literature identifies that the primary literacy level is not so satisfactory. An individual with less financial knowledge has more negative opinion about finances and makes more incorrect financial decisions. As a result, they are detached from embracing innovative financial products, making sound financial planning decisions and participation in the stock market. It also objects to define the financial literacy character and suggest to involving into the stock market.
[ FULL TEXT PDF 1-7 ] DOI: 10.30566/ijo-bs/2019-11-4
THE EVALUATION OF SAUDI INSURANCE INDUSTRY AND POTENTIAL FOR TAKAFUL INSURANCE
Khalaf Mohammed Albalawi
Abstract: One of the study’s aims is to define the legal conflict between the law of Supervision of Cooperative Insurance Companies and Saudi Arabia’s regulations of implementation and to outline the principal obstacles in this conflict. Subsequently, the results of implementation regulations on the aforementioned companies’ performance and the perception of their potential Sharī’ah compliance will undergo critical examination. Detailed interviews with Saudi takaful operators are used for data collection with the goal of detecting and investigating the problems in the Saudi insurance takaful models and practices. Once this is done, suitable improvements that are needed to ensure Sharī’ah compliance and consistency can be suggested. The second piece of Saudi takaful insurance research, in the form of a questionnaire, will attempt to appraise takaful models in use, in line with International Association of Insurance Supervisors (IAIS) criteria. As the number of takaful operating companies in the targeted market is relatively large, the study aimed at covering the most popular takaful companies in Saudi Arabia. In order to gather a valuable information concerning Saudi insurance market, we contacted the supervising authorities and requested them to provide three participants who will participate in this study. In total, three companies were selected for the interview and also were covered to fill the questionnaire.
[ FULL TEXT PDF 1-16 ] DOI: 10.30566/ijo-bs/2019-11-3
DETERMINANT OF CAPITAL STRUCTURE ON PROFITABILITY AND SHARE PRICES OF BANKS LISTED IN IDX
Abstract: The aim of the study is to find out the determinant of capital structure on profitability and share prices of banks listed on IDX. The study used Path analysis. Results indicated an insignificant effect of capital structure (5.4%), and yet significant effect of profitability (49.3%), both on stock prices, which included a direct effect (50.7%) and indirect effect (1.4%). Through profitability as a moderator variable, the effect of DER and DAR on share prices was -15% and -3.1%, respectively. This study has documented how path analysis extended the scope of what affected the share prices. Future studies are expected to broaden this scope still further and reveal effect patterns for other variable(s) not previously observed. The selection of other variables that can affect the stock price which results in 94.6% is not observed in this study.
[ FULL TEXT PDF 1-14 ] DOI: 10.30566/ijo-bs/2019-11-2
IT-BASED INNOVATION AND NEW PRODUCT DEVELOPMENT PERFORMANCE IN YEMEN: THE MODERATING ROLE OF INTELLECTUAL PROPERTY
Abdulwahab Jandab; Dr. Noor Azman Ali*, Akram Abdulsamad, Abdulrahman M. Al-Sharif
Abstract: This study seeks to investigate the relationship between IT-based innovation (ITI) and new product development performance (NPDP) in the context of Diffusion of Innovation (DOI) theory, as well as aims to examine the moderation effect of intellectual property (IP) on this relationship. Quantitative data were acquired for firms that are presently members of the federation of Yemen chambers of commerce and industry. Survey outcomes of 700 Yemeni foods processing SMEs provide considerable results for this study. SmartPLS-3 was used with the purpose of analyzing returned responses, validate the study model, and test the hypotheses. Results indicate that there is a positive direct relationship between ITI and NPDP, as well as, the results show an insignificant moderating effect of IP in the relationship between ITI and NPDP. This study contributes to the body of knowledge on the role of IT-based innovation in the performance of new product development. It further examined the moderating effects of IP on the relationship between IT-based innovation and new product development performance. The study was conducted in Yemen, a non-western and developing context. The practical implications of the findings to top management and practitioners are presented. The benefits of this study can be enjoyed by SMEs in the Yemeni food processing sector and the nation at large.
[ FULL TEXT PDF 1-8 ] DOI: 10.30566/ijo-bs/2019-11-1