Arslan Iqbal - Academia.edu (original) (raw)
Papers by Arslan Iqbal
This paper examines the impact of different leverage measures on the share price of Cement Sector... more This paper examines the impact of different leverage measures on the share price of Cement Sector in Pakistan Stock Exchange. The panel-data approach of fixed effect & random effect is used during the period of 2005 to 2015. To achieve the purpose of research share price is considered as a dependent variable. The results indicate that debt ratio and degree of financial leverage is negatively determining the share price while size has significant positive impact on the share. Debt to equity ratio is insignificant in effecting share price. Introduction: Share price determination is a paradoxical task because it is very sensitive to various internal and external factors. Shareholders and managers are keen interested in factors effecting share price. Various studies are made on determinants of share price Iqbal et al. (2014) & Hashemijoo et al. (2012), impact of macroeconomic variables on the share price. Mohammad et al. (2009) and Sunde and Sanderson (2009), assorted studies are conducted on effect of capital structure on firm`s value. Varied researchers are made on the impact of capital structure on share price Buigut et al. (2013) & Barakat (2014). Partially share price depends on Capital structure of the company, so share price is a primary matter of interest for both internal managers of firm and external stockholders. Capital structure is the combination of equity and debts. If a company uses hundred percent equity so all the earnings after tax go to shareholders. If a company uses a combination of equity & debt both, so interest expense must be allocated to creditors from earning before tax then remaining is allocated to shareholders. Firms should set target capital structure where firm get stable share price and great future prospect. According to Brigham & Houston, if debt ratio is below the optimum level firm should increase debt on the contrary if debt ratio exceeds optimum so, a firm should rely on equity. There are different leverage measures such as debt ratio, debt to equity ratio and a degree of financial leverage which uses a debt as proxy for leverage. The present study is an attempt to identify the impact of different leverage measures on the share price. The present study comprised on three sections. Section I comprised on an objective of the study and review literature. Section II deals with data collection, econometric model, and research methodology. Section III consists of descriptive statistics, correlation analysis, and regression results. Section IV committed to the discussion of conclusion.
" The prime purpose of this research is to find out that from the components of Dupont identity o... more " The prime purpose of this research is to find out that from the components of Dupont identity of Return on Equity which component is most consistent or volatile among profit margin, total assets turnover and equity multiplier in Fuel and Energy Sector, Chemicals Sector, Cement Sector, Engineering Sector, Textiles Sector and Transport and Communication Sector of KSE 100 index. The purpose of the study was served by taking data from 2004 to 2012 of 51 companies (falling under six mentioned industries) of KSE 100 as Paradigm of Panel Data. The F-Statistics of One Way ANOVA (Analysis of Variance) show that it is Assets Turnover which significantly varies from industry to industry whereas Equity Multiplier and Profit Margin are not much volatile among indifferent industries. Moreover, Adjusted R Square in Panel OLS Analysis was confirming Industry Effect on Newly established firms that they can have the benefit of profitability if they are from Fuel and Energy Sector, Cement Sector and Transport and Communication Sector whereas others Sectors such as Chemicals Sector, Engineering Sectors and Textiles Sectors does not have that leverage. "
The aim of the study is to explore & examine the determinants of share price in Karachi StockExch... more The aim of the study is to explore & examine the determinants of share price in Karachi StockExchangès (KSE) oil & gas and cement sector. The study has employed a panel data approach on oil & gas and cement sector of Karachi Stock Exchange (KSE) over the period of 2008 to 2013. The fixed effect and random effect model has been used to determine the research objective. The study reveals that earning per share and book value per share are positive and significant determinants of share price in both sectors while dividend yield is negatively significant in cement sector. Overall, the conclusion indicating that model is significant and random effect model is appropriate in both sectors of Karachi Stock Exchange (KSE) Keywords: Share price, earning per share, book value per share, dividend yield JEL Classification Codes: G30, G32 Introduction: The determinants of share price are a debatable topic among financial researchers for more than five decades. Stock market is major capital markets which is the biggest source of finance to corporation and provide investment opportunities to the investor in form of share and bonds. Investment in shares contains two types of returns; first one is capital gain and second is dividends but the returns on share investment contain high risk because they are unconfirmed and fluctuations in share price are not explanatory. It depends on internal factors such as dividend per share, earning per share, book value, dividend yield as well as external factors that are interest rate, inflation rate, government policy etc. The initial work on determinants of share price done by Collins (1957) in context of U.S banks, he reveals that dividend, basic earning power and profits affect the stock prices. Empirical studies reveal that various factors in different markets determine the share price. The present study deals with an attempt to study the determinants of share price on the basis of selected accounting formulas. The present study consists of four sections. Section I deals with objective and review of empirical studies. Section II explains data collection and research methodology. Section III is related with descriptive statistics, correlation matrix and regression result which divided into two parts oil & gas and cement sector respectively. Section IV is devoted to the discussion of conclusion.
This paper examines the impact of dividends on share price of Karachi Stock Exchange 30-Index com... more This paper examines the impact of dividends on share price of Karachi Stock Exchange 30-Index companies. To achieve the purpose of research ordinary least square method is used. The secondary data for period 2002 to 2012 is considered in which share price is considered as controlled variable and another seven variables specifically return on equity, profitability ratio, dividend payout, dividend yield, price earning ratio, earning per share and price earning ratio as control variable. The study reveals that 97.16% variation in market price is explained by the model. Study reveals that all variables has significant positive impact on share price except dividend yield and price earning ration which has significant negatively influencing in the change of share price of firm. Overall conclusion indicating that model is significant and dividend irrelevance theory is not applicable in case of KSE 30-Index companies. Keywords: Dividend, share price, dividend yield, dividend payout, return on equity JEL Classification Codes: G1, G3 Introduction Dividend policy can be defined as the policy which determine how much company will pay to shareholders and how much will be retained for future development. It consists of two parts distribution of returns among shareholders and reinvestment of retention for new opportunities. Dividend policy is one of the debated topics among researchers in the field of financial management. It is crucial financing decision that what must be distributed as dividend and what must be reinvested for future prospects? There are many policies are developed regarding dividends. The best policy regarding dividends is the optimal dividend policy which maximizes the share prize and increase future development. But it's difficult to say hard and fast which should be optimal either high dividend or low dividend policy or stock dividends (bonus shares) because firms vary from size to size and financial circumstances. In financial management relation of dividend and share price initially highlighted in 1956 by Linter. Then continuous work has been done till now in form of many dividend theories and empirical studies conducted in different region of the world. The present study deal with the impact of dividend policy on share price. The present study is distributed into three sections. Section I deal with objective & review of empirical studies. Section II deal with data collection & methodology. Section II devoted to the discussion of descriptive statistics, correlation matrix, regression results & actual fitted residual graph. Section IV concerned with conclusion and direction for further research. I. Objective of the Study: The aim of study is to demonstrate the effect of dividend bubble on market value of share price for listed companies in KSE (Karachi Stock Exchange) 30-index. The study also consider other explanatory variables that are responsible for fluctuation in share price for KSE 30-index. 1.2 Review of Empirical Studies: Dividends are the essence of investment. It can be define as a portion of company's earning distributed to shareholders. According to subsection (i) of section 248, Company Ordinance 1984 Dividends must be declared in annual general meeting and the amount of dividend should be recommended by board of directors. According to section 249, dividends must be paid out from profits or retained earnings. Further more, according to section 251 of Company Ordinance 1984 that dividends must be paid out with 45 days of declaration. Initially aspect of dividend investigated by Linter (1956) introduced a concept focus on stylized yield of the particular features of a 'sticky of dividend'. He argues that companies are reluctant to reduce dividends because this may perceive investor to interpret bad performance and also case reduction in share price.
This paper examines the impact of different leverage measures on the share price of Cement Sector... more This paper examines the impact of different leverage measures on the share price of Cement Sector in Pakistan Stock Exchange. The panel-data approach of fixed effect & random effect is used during the period of 2005 to 2015. To achieve the purpose of research share price is considered as a dependent variable. The results indicate that debt ratio and degree of financial leverage is negatively determining the share price while size has significant positive impact on the share. Debt to equity ratio is insignificant in effecting share price. Introduction: Share price determination is a paradoxical task because it is very sensitive to various internal and external factors. Shareholders and managers are keen interested in factors effecting share price. Various studies are made on determinants of share price Iqbal et al. (2014) & Hashemijoo et al. (2012), impact of macroeconomic variables on the share price. Mohammad et al. (2009) and Sunde and Sanderson (2009), assorted studies are conducted on effect of capital structure on firm`s value. Varied researchers are made on the impact of capital structure on share price Buigut et al. (2013) & Barakat (2014). Partially share price depends on Capital structure of the company, so share price is a primary matter of interest for both internal managers of firm and external stockholders. Capital structure is the combination of equity and debts. If a company uses hundred percent equity so all the earnings after tax go to shareholders. If a company uses a combination of equity & debt both, so interest expense must be allocated to creditors from earning before tax then remaining is allocated to shareholders. Firms should set target capital structure where firm get stable share price and great future prospect. According to Brigham & Houston, if debt ratio is below the optimum level firm should increase debt on the contrary if debt ratio exceeds optimum so, a firm should rely on equity. There are different leverage measures such as debt ratio, debt to equity ratio and a degree of financial leverage which uses a debt as proxy for leverage. The present study is an attempt to identify the impact of different leverage measures on the share price. The present study comprised on three sections. Section I comprised on an objective of the study and review literature. Section II deals with data collection, econometric model, and research methodology. Section III consists of descriptive statistics, correlation analysis, and regression results. Section IV committed to the discussion of conclusion.
" The prime purpose of this research is to find out that from the components of Dupont identity o... more " The prime purpose of this research is to find out that from the components of Dupont identity of Return on Equity which component is most consistent or volatile among profit margin, total assets turnover and equity multiplier in Fuel and Energy Sector, Chemicals Sector, Cement Sector, Engineering Sector, Textiles Sector and Transport and Communication Sector of KSE 100 index. The purpose of the study was served by taking data from 2004 to 2012 of 51 companies (falling under six mentioned industries) of KSE 100 as Paradigm of Panel Data. The F-Statistics of One Way ANOVA (Analysis of Variance) show that it is Assets Turnover which significantly varies from industry to industry whereas Equity Multiplier and Profit Margin are not much volatile among indifferent industries. Moreover, Adjusted R Square in Panel OLS Analysis was confirming Industry Effect on Newly established firms that they can have the benefit of profitability if they are from Fuel and Energy Sector, Cement Sector and Transport and Communication Sector whereas others Sectors such as Chemicals Sector, Engineering Sectors and Textiles Sectors does not have that leverage. "
The aim of the study is to explore & examine the determinants of share price in Karachi StockExch... more The aim of the study is to explore & examine the determinants of share price in Karachi StockExchangès (KSE) oil & gas and cement sector. The study has employed a panel data approach on oil & gas and cement sector of Karachi Stock Exchange (KSE) over the period of 2008 to 2013. The fixed effect and random effect model has been used to determine the research objective. The study reveals that earning per share and book value per share are positive and significant determinants of share price in both sectors while dividend yield is negatively significant in cement sector. Overall, the conclusion indicating that model is significant and random effect model is appropriate in both sectors of Karachi Stock Exchange (KSE) Keywords: Share price, earning per share, book value per share, dividend yield JEL Classification Codes: G30, G32 Introduction: The determinants of share price are a debatable topic among financial researchers for more than five decades. Stock market is major capital markets which is the biggest source of finance to corporation and provide investment opportunities to the investor in form of share and bonds. Investment in shares contains two types of returns; first one is capital gain and second is dividends but the returns on share investment contain high risk because they are unconfirmed and fluctuations in share price are not explanatory. It depends on internal factors such as dividend per share, earning per share, book value, dividend yield as well as external factors that are interest rate, inflation rate, government policy etc. The initial work on determinants of share price done by Collins (1957) in context of U.S banks, he reveals that dividend, basic earning power and profits affect the stock prices. Empirical studies reveal that various factors in different markets determine the share price. The present study deals with an attempt to study the determinants of share price on the basis of selected accounting formulas. The present study consists of four sections. Section I deals with objective and review of empirical studies. Section II explains data collection and research methodology. Section III is related with descriptive statistics, correlation matrix and regression result which divided into two parts oil & gas and cement sector respectively. Section IV is devoted to the discussion of conclusion.
This paper examines the impact of dividends on share price of Karachi Stock Exchange 30-Index com... more This paper examines the impact of dividends on share price of Karachi Stock Exchange 30-Index companies. To achieve the purpose of research ordinary least square method is used. The secondary data for period 2002 to 2012 is considered in which share price is considered as controlled variable and another seven variables specifically return on equity, profitability ratio, dividend payout, dividend yield, price earning ratio, earning per share and price earning ratio as control variable. The study reveals that 97.16% variation in market price is explained by the model. Study reveals that all variables has significant positive impact on share price except dividend yield and price earning ration which has significant negatively influencing in the change of share price of firm. Overall conclusion indicating that model is significant and dividend irrelevance theory is not applicable in case of KSE 30-Index companies. Keywords: Dividend, share price, dividend yield, dividend payout, return on equity JEL Classification Codes: G1, G3 Introduction Dividend policy can be defined as the policy which determine how much company will pay to shareholders and how much will be retained for future development. It consists of two parts distribution of returns among shareholders and reinvestment of retention for new opportunities. Dividend policy is one of the debated topics among researchers in the field of financial management. It is crucial financing decision that what must be distributed as dividend and what must be reinvested for future prospects? There are many policies are developed regarding dividends. The best policy regarding dividends is the optimal dividend policy which maximizes the share prize and increase future development. But it's difficult to say hard and fast which should be optimal either high dividend or low dividend policy or stock dividends (bonus shares) because firms vary from size to size and financial circumstances. In financial management relation of dividend and share price initially highlighted in 1956 by Linter. Then continuous work has been done till now in form of many dividend theories and empirical studies conducted in different region of the world. The present study deal with the impact of dividend policy on share price. The present study is distributed into three sections. Section I deal with objective & review of empirical studies. Section II deal with data collection & methodology. Section II devoted to the discussion of descriptive statistics, correlation matrix, regression results & actual fitted residual graph. Section IV concerned with conclusion and direction for further research. I. Objective of the Study: The aim of study is to demonstrate the effect of dividend bubble on market value of share price for listed companies in KSE (Karachi Stock Exchange) 30-index. The study also consider other explanatory variables that are responsible for fluctuation in share price for KSE 30-index. 1.2 Review of Empirical Studies: Dividends are the essence of investment. It can be define as a portion of company's earning distributed to shareholders. According to subsection (i) of section 248, Company Ordinance 1984 Dividends must be declared in annual general meeting and the amount of dividend should be recommended by board of directors. According to section 249, dividends must be paid out from profits or retained earnings. Further more, according to section 251 of Company Ordinance 1984 that dividends must be paid out with 45 days of declaration. Initially aspect of dividend investigated by Linter (1956) introduced a concept focus on stylized yield of the particular features of a 'sticky of dividend'. He argues that companies are reluctant to reduce dividends because this may perceive investor to interpret bad performance and also case reduction in share price.