Professional Documents
Culture Documents
INTRODUCTION:
Impact on market-determined measures of risk The study aimed to test the relationship between
systemic risk and the college and some of the indicators of accounting in the banking industry , I
have been using seven variables accounting are: ( dividends , leverage , the coefficient of
variation of deposits , the coefficient of variation of return on the stock , the proportion of
facilities for deposits , loan loss provision , and the liquidity ratio ) .
Study (Abd Al- Rahman , 1987 ) "The impact of change in the funding structure policies on the
profitability of the company "The aim of this study was to measure the effect of the change in the
funding structure on the profitability of the facility, was conducted on 12 companies from the
industrial public sector Arab Republic of Egypt , and it was the most important findings of the
study: that the average leverage ratio for the sample of the study was (47% ) which was broken
down as follows : the proportion of debt financing long-term (19%) and the proportion of shortterm debt (28 % ) , and the study concluded that the companies in which the debt ratio is higher
than the proportion of property rights were more likely to achieve the losses , which means that
the relationship was counterproductive between leverage and the rate of return on investment.
Some recent studies including Sheel (1994), Sunder and Myers (1999) and Wald (1999) have
corroborated these findings.
Fama and French (1998) reported that debt does not concede taxes benefits. The degree of
leverage tends to generate agency problems among shareholders and creditors that predict
negative relationships between leverage and profitability. Other studies that reported negative
relationships between leverage and profitability.
1.3 Significance:
The role and impact of leverage on profitability on firm performance is very important for the
success and growth the firm. Qualitative and Quantitative research may be conducted in different
context and locality of Pakistan to see whether there exists an actual co-relation between
dividend payout and return on asset as well as the influence of price earnings ratio on dividend
payout to generalized the results in different context.
asset?
4. What is the impact of Dividend payout and Price earnings ratio?
Lack of time
Lack of resources
Less availability of data