Sadia Murtaza
National College Of Business Administration & Economics, Lahore, Pakistan

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The Relationship between Ownership Structure and Capital Structure: Evidence from Chemical Sector of Pakistan Sadia Murtaza; Irsa Azam
SEISENSE Journal of Management Vol. 2 No. 4 (2019): SEISENSE Journal of Management
Publisher : SEISENSE (PRIVATE) LIMITED

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (826.719 KB) | DOI: 10.33215/sjom.v2i4.162

Abstract

Objective – The main objective of this study is to measure the relationship between ownership structure and capital structure by using the chemical sector of Pakistan. Design – This study is used the panel data and retrieved from the annual reports of the chemical sector of Pakistan for the time period of 2012 to 2017. Findings – The finding the statistical analysis shows that ownership structure has a significant positive relationship on capital structure. Which mitigate the agency conflicts among managers and shareholders, because the majority of the shareholders would like to have a higher level of debt over equity financing. Policy Implications – The findings of this study also can be helpful to the policymakers, investors and financial institution in designing ownership structures and financing decisions for firms. Originality – This is the first study that examined the relationship between ownership structure and capital structure in the context of the chemical sector of Pakistan.
The Role of Ownership Concentration and Dividend Policy on Firm Performance: Evidence from an Emerging Market of Pakistan Sadia Murtaza; Ahmad Noor-Ud-Din; Amel Aguir; Saadia Batool
SEISENSE Journal of Management Vol. 3 No. 2 (2020): SEISENSE Journal of Management
Publisher : SEISENSE (PRIVATE) LIMITED

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (697.867 KB) | DOI: 10.33215/sjom.v3i2.255

Abstract

Purpose- The main aim of this study is to determine the role of ownership concentration and dividend policy on the firm performance of chemical sector firms of Pakistan. Design/Methodology- This research used the secondary data collected from the annual reports of the companies listed at the Karachi Stock Exchange (KSE). However, inclusion criteria are the 26 listed firms from 2012 to 2017, giving a total of 156 observations. This study used the Generalized Least Squares Model. Findings- The findings reveal that ownership concentration has a significant positive association with firm financial performance. This stated that larger shareholders could attribute to the alignment of managerial incentives with shareholder interests. They also monitor the team very effectively and efficiently. The dividend policy has a significant positive relationship with ROA. Leverage and tangibility have a significant negative relationship with firm performance. Practical Implications- These results potentially can be relevant for policymakers and academic research as well as also helpful for managers and policymakers.