Impact of Capital Structure and Dividend Policy on Shareholders' Value

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Title: Impact of Capital Structure and Dividend Policy on Shareholders’ Value 1. Introduction Dividend policy has been an issue of interest in financial literature as many theories have been established to estimate weather this effects the overall value of the firm.Dividend policy connotes to the payout policy, which managers pursue in deciding the size and pattern of cash distribution to shareholders over time. Managements’ primary goal is shareholders’ wealth maximization, which translates into maximizing the value of the company as measured by the price of the company’s common stock. This goal can be achieved by giving the shareholders a “fair” payment on their investments. However, the impact of firm’s dividend policy on…show more content…
Then we use Microsoft Excel to formulate and calculate Dividend payout ratio, capital structure, Return on Asset, Listing years of particular companies, Log of Total asset, Capitalization and TQ. Then we have put finding data into excel worksheet and used those data to run regression and distributive analysis on a SPSS like software, STATA. After acquiring the analyzed data we dissected them for their interpretation and came to decision through Z test, which one should be accepted and which one will be rejected. We have given our findings, data, and workings both in this report and in softcopies of spreadsheet. 5.1 Sample: We were given twenty companies to analyze and decide that, which has the greater impact or impact on shareholder’s value in between Capital structure and Dividend policy. We have succeed to collect data of 2010-2011 of 18 individual companies. They are; Golden Son Ltd; Kay and Que; Eastern Cables ; Monno Jute Stafflers; Navana CNG Limited; National Polymer; National Tubes; Olympic Industries; Quasem Drycells; Rangpur Foundry; S. Alam Cold Rolled Steels Ltd.; Singer Bangladesh; AMCL (Pran); Apex Foods; Bangas; British American Tobacco Bangladesh LTD.; Beach Hatchery Ltd; Chittagong Vegetable ; 5.2 Data The

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