Analysing the Impact of Capital Structure on the Performance of UK Dissertation

Analysing the Impact of Capital Structure on the Performance of UK Financial Institutions - Dissertation Example The Miller-Modigliani Theory 15 2.4.3. Pecking Order Theory 16 2.4.4. The Agency Cost Theory 18 2.5. Potential Determinants of Capital Structure 19 2.6. Statement of the Problem 26 Chapter 3: Data and Methods 28 3.1. Research Methodology 28 3.2. Research Purpose and Research Approach 29 3.3. Qualitative Research 29 3.4. Quantitative Research 30 3.5. Primary Research 30 3.6. Secondary Research 31 Chapter 4: Analysis and Results 34 4.1. Overview 34 4.2. Selection of Dependent Variables and Independent Variables 35 4.3. Data Analysis Techniques 36 4.4. Fieldwork and Data Collection 37 4.5. Hypotheses Formulation and Variable Selection 38 4.6. Data Sources and Data Presentation 44 Chapter 5: Discussion and Interpretation of Findings 50 5.1. Data Analysis and Discussion 50 5.2. Regression Results 51 Table 5.2.1 - The Regression Analysis of RBS 53 Table 5.2.2 - The Regression Analysis of Standard Chartered Plc 54 Table 5.2.3 - The Regression Analysis of Lloyds Group Plc 55 Table 5.2.4 - Th e Regression Analysis of Barclays Plc 56 5.3. Robustness of Statistical Data 58 5.4. Interpretation of Findings 60 Chapter 6: Discussion and Conclusion 63 6.1. Summary 63 6.2. Theoretical Implications 65 6.3. Practical Implications 65 6.4. Limitations 67 6.5. Directions for Future Research 67 6.6. Reflections 68 References 71 Bibliography 77 Appendices 80 Table 1 – Regression Model of Royal Bank of Scotland 80 Table 2 – Regression Model of Standard Chartered Plc 84 Table 3 – Regression Model of Barclays Plc 89 Table 4 – Regression Model of HSBC 93 Table 5 – Regression Model of Lloyds 97 Chapter 1: Introduction The functions of financial management of a firm deal with the management of the sources from which funds are received and the effective utilization of such funds. Debt holders and equity holders are the suppliers of finance, and they supply finance for raising capital for assets of the company. So they have the right to participate in cash fl ows generated from the investment of the raised capital. The ratio of share of profits generated is determined by the debt equity ratio. As debt holders are the first to be paid, they become important to the firm if the firm wants to maximize the returns of the equity holders. As cost is also an important component of financing, so on a way to examine the net benefit from an investment, the cost incurred on such investment is also to be accounted. The objective of the study is to analyse the impact of capital structure on the performance of financial institution of United Kingdom. In order to achieve the objective, the study covers literature review and theoretical framework of the topic. Research design has been done with the intention of selecting appropriate methodology and data collection analysis. Moreover, the data will also help to get the findings of the research. After interpreting the research findings, the study finally ends with conclusion, practical implication of the r esearch and directions for future research. 1.1. Background of the Study The mix of financial liabilities of a firm is referred to as its leverage (i.e. a mix of financial instruments that tends to increase the potential of return of investment undertaking the risk associated with it). Although financial capital is uncertain, it is still considered to be the critical resource by all firms, and suppliers of finance make this investment so as to have control over the firm. In a firm debt holders and equity holders are the two types of investors who invest in equity and debt

Marketing communications tools Essay Example | Topics and Well Written Essays - 2500 words

Marketing communications tools - Essay Example Notably, it can be ascertained that in the past few years’ digital technology and the expansion of targeting capabilities has shifted from the traditional marketing tools to digital marketing tools. Due to the continuous revolution in the field of marketing communication tools particularly the internet, it has be found that both small organizations as well as big organizations are widely inclined towards using modern digital marketing tools over the conventional tools. Traditional marketing tools involving print media (such as magazines, newspapers and newsletters) electronic media (such as broadcasting through television and radios) and direct marketing among others can be ascertained to be barely used by the contemporary business organizations. Nonetheless, both the traditional and digital marketing tools have some advantages and disadvantages. Hence, it would be wise to use the combine form of traditional and digital marketing tools in order to achieve the best outcome. ... Significance of Traditional Forms of Marketing Communications in the Contemporary Organizations It can be affirmed that digital marketing tools particularly internet has attracted the contemporary marketers to a great extent. However, heavy reliability on modern marketing tools does not mean that traditional marketing is disappearing. In this regard, it has been ascertained from a survey report that approximately USD $ 295billion was spent on television advertisement in the US during 2007. A huge investment on traditional marketing tool in this cotemporary world signifies vast majority of traditional media. At the same time, newspaper and magazines can also be ascertained to be effective marketing communication tools despite of its reducing importance amid the contemporary marketers. It is important to note that despite of inclination towards the new media few renowned companies like Procter and Gamble spent USD $3.5 billion on advertising purpose in 2006 with the use of TV, print an d other old media (Winer, 2008). Every business has different marketing requirements. It is not possible to state which marketing tool is best for the particular business. In the contemporary business environment an organization should not rely on one type of marketing, rather integrating both the traditional and digital marketing tools would be more feasible for the organization to attain the desire marketing communication goals. It can be firmly stated that integrating the two approaches will support the organization to achieve its broad marketing communication objectives. It can be stated that integration of traditional and digital marketing tools facilitate the organizations to develop the most appropriate

Industrial Revolution Essay -- essays research papers

How Did The Industrial Revolution Affect A Person’s Quality of Life? One’s quality of life is defined as the degree of well-being felt by a person or a group of persons. It is concerned with a citizen’s consumption of goods and services, human rights and the environment. The industrial revolution have produced great wealth to many citizens that influences their state of well being. Others may argue that the changes and advancements in society have brought the burden of scarce resources, diseases and pollution among it’s people. Rather the opposite is true, the positive effects that the revolution have introduced such as the high availability of employment, food, and human rights and the opportunity for future growth overpowers these problems. Therefore it is accurate to say that the benefits of the industrial revolution have improved one’s quality of life. One characteristic that concerns the condition of a person’s life is the freedom for an occupation. This period of change have conducted the use of machinery for many types of production. Some believe that the substitution of machines for human labor have created high rates of unemployment for many nations. Before the revolution, jobs were very limited because work was accomplished through animal power and hand labor. Also many tasks required men with considerable skills which could only be accomplished through long hours of work and practice. In the past and in the present it could be clearly seen that the sprouting fa...

Elasticity of Demand of Petrol and Cng

[pic] BUSINESS ECONOMICS FINAL REPORT ON ELASTICITY OF DEMAND OF PETROL AND CNG SUBMITTED TO: SIR FAISAL SULTAN QADRI PREPARED BY: Syeda Tabinda Naz Anum Zehra Madiha Khan ACKNOWLEDGEMENT We owe our profound thanks and deepest gratitude to ALMIGHTY ALLAH, most merciful, who blessed us with determination, strength, ability and divine help to complete this report. This Report is on ELASTICITY OF DEMNAD OF PETROL. This report is a part of our course titled as Business economics conducted in Iqra University. Then we would like to acknowledge our course instructor Mr. Faisal Sultan Qadri to give us an opportunity to work on this project, and allow us to make use of our analytical abilities. It was his guidance and never ending patience that lead us to complete this report. Our special thanks to our beloved parents and friends without their support we would not be able to complete our assignment and their coordination has made us able to achieve the task in time. INTRODUCTION: High prices effect everyone everywhere, but not equally. Petroleum pricing is something that directly effects every one in society as it is also major source of power and fuel. DEMAND: Demand is defined as the willingness and ability of a consumer to purchase a given product in a given frame of time. DETERMINANTS IF DEMAND: Overall demand can change, moving upward or downward, because of changes in: P = price of other goods (substitutes and complements) I = income N =no. of buyers T =tastes and preferences Ex =expectations CHANGE IN INCOME: With the rise in income of people they can increase the usage of product which will result in increased demand. CHANGE IN PRICE: Change in price will also result in demand curve of that product. Here we will discus the effect of change in price of petrol on its demand of consumption. CAR AND PETROL OR CAR AND CNG (Petrol Vs CNG): The general trend is that when the price of the substitute decreases the demand of the product decrease and if the price of the substitute increases demand for the product increase. In my sense, the petrol and CNG are the substitutes to each other. Now if the prices of the Petrol increase the demand for petrol will change. Many people will tend to make their Car CNG cylindered. But if the Price of the CNG increase, but it will remain lower to the price of the Petrol, so it will not affect much more to the demand of the CNG. No one will change their CNG Kits. So it means that the petrol is more elastic than the CNG in terms of Demand. Petrol has more elasticity than CNG. In Pakistan the majority of private vehicles have converted to CNG because of cheaper price as compared to petrol. Only luxury cars and official vehicles now run on petrol. Almost all car manufacturers in Pakistan now produce company fitted CNG kit versions. Recent hikes in CNG prices have downplayed the ambitious ventures of some of the stakeholders in this sector. It is expected that price of the CNG and Kits will come down as competition among manufacturers grows. LandiRenzo Pakistan is also exporting CNG kits to various countries including China, Brazil and Italy. Almost 2 million vehicles on the country's roads have dual fuel options. ELASTICITY OF DEMNAD: Given are the prices and quantity of petrol showing elasticity of demand after an increase in price of petrol: When price of petrol was 31. 8/litre in 2000, using cng in cars was not common but as petrol prices began to raise many people be likely to make their Car CNG cylindered because cng prices were very cheap and stable as compare to petrol prices. Now the current price of petrol is 66/litre and the price of cng is 48/kg still very economical for users. According to International Association of Natural Gas Vehicles, as of December 2008, Pakistan has the world’s highest number of vehicles running on compressed Natural Gas (CNG). The number is 2 million. Pakistan also has the World’s highest number of CNG refueling stations. Because Petrol prices in Pakistan are among the highest in the region as well as natural gas is found abundant and locally in Pakistan so this also very major reason of its cheapness. In 2000 the total number of vehicles in Pakistan was 4. 9 million which has increased to 8 million in 2009. By March 2006 about one million vehicles were converted to CNG as compared to 700,000 vehicles during the same period last year, showing an increase of 43 per cent. With these developments Pakistan has become the leading country in Asia and the third largest user of CNG in the world after Argentina and Brazil. We can calculate the elasticity of petrol easily by considering its change in price within year. |Price |Quantity | 59 8000000 million 6 6000000 million Solution: Formula required for cross price elasticity: change in quantity/change in price x PY/QY 2million x62. 5 7 7million =285714. 28 x 0. 000009 =2. 57 Hence demand is elastic and petrol and cng are substitutes. GRAPH SHOWING ELASTICITY OF DEMAND OF PETROL: [pic] References: http://www. pakistaneconomist. com/issue2002/issue4/f. htm http://pakistaniat. com/2009/07/14/pakistan-cng/ http://www. thenews. com. pk/editoria l_detail. asp? id=162379 http://www. brecorder. com/index. php? id=262150=2=

The Declaration of Independence Study Guide

The Declaration of Independence is arguably one of the most influential documents in American History. Other countries and organizations have adopted its tone and manner in their own documents and declarations. For example, France wrote its Declaration of the Rights of Man and the Womens Rights movement wrote its Declaration of Sentiments. However, the Declaration of Independence was actually not technically necessary in proclaiming independence from Great Britain. History of the Declaration of Independence A resolution of independence passed the Philadelphia Convention on July 2. This was all that was needed to break away from Britain. The colonists had been fighting Great Britain for 14 months while proclaiming their allegiance to the crown. Now they were breaking away. Obviously, they wanted to make clear exactly why they decided to take this action. Hence, they presented the world with the Declaration of Independence drafted by thirty-three-year-old Thomas Jefferson. The text of the Declaration has been compared to a Lawyers Brief. It presents a long list of grievances against King George III including such items as taxation without representation, maintaining a standing army in peacetime, dissolving houses of representatives, and hiring large armies of foreign mercenaries. The analogy is that Jefferson is an attorney presenting his case before the world court. Not everything that Jefferson wrote was exactly correct. However, it is important to remember that he was writing a persuasive essay, not a historical text. The formal break from Great Britain was complete with the adoption of this document on July 4, 1776. Mercantilism Mercantilism was the idea that colonies existed for the benefit of the Mother Country. The American colonists could be compared to tenants who were expected to pay rent, i.e., provide materials for export to Britain. Britains goal was to have a greater number of exports than imports allowing them to store up wealth in the form of bullion. According to mercantilism, the wealth of the world was fixed. To increase wealth a country had two options: explore or make war. By colonizing America, Britain greatly increased its base of wealth. This idea of a fixed amount of wealth was the target of Adam Smiths Wealth of Nations(1776). Smiths work had a profound effect on the American founding fathers and the nations economic system. Events Leading to the Declaration of Independence The French and Indian War was a fight between Britain and France that lasted from 1754-1763. Because the British ended in debt, they began to demand more from the colonies. Further, parliament passed the Royal Proclamation of 1763 which prohibited settlement beyond the Appalachian Mountains. Beginning in 1764, Great Britain began passing acts to exert greater control over the American colonies which had been left more or less to themselves until the French and Indian War. In 1764, the Sugar Act increased duties on foreign sugar imported from the West Indies. A Currency Act was also passed that year banning the colonies from issuing paper bills or bills of credit because of the belief that the colonial currency had devalued the British money. Further, in order to continue to support the British soldiers left in America after the war, Great Britain passed the Quartering Act in 1765. This ordered colonists to house and feed British soldiers if there was not enough room for them in the barracks. An important piece of legislation that really upset the colonists was the Stamp Act passed in 1765. This required stamps to be purchased or included on many different items and documents such as playing cards, legal papers, newspapers, and more. This was the first direct tax that Britain had imposed on the colonists. The money from it was to be used for defense. In response to this, the Stamp Act Congress met in New York City. 27 delegates from nine colonies met and wrote a statement of rights and grievances against Great Britain. In order to fight back, the Sons of Liberty and Daughters of Liberty secret organizations were created. They imposed non-importation agreements. Sometimes, enforcing these agreements meant tarring and feathering those who still wished to purchase British goods. Events began to escalate with the passage of the Townshend Acts in 1767. These taxes were created to help colonial officials become independent of the colonists by providing them with a source of income. Smuggling of the affected goods meant that the British moved more troops to important ports such as Boston. The increase in troops led to many clashes including the famous Boston Massacre. The colonists continued to organize themselves. Samuel Adams organized the Committees of Correspondence, informal groups that helped spread information from colony to colony. In 1773, parliament passed the Tea Act, giving the British East India Company a monopoly to trade tea in America. This led to the Boston Tea Party where a group of colonists dressed as Indians dumped tea from three ships into Boston Harbor. In response, the Intolerable Acts were passed. These placed numerous restrictions on the colonists including the closing of Boston Harbor. Colonists Respond and War Begins In response to the Intolerable Acts, 12 of the 13 colonies met in Philadelphia from September-October, 1774. This was called the First Continental Congress. The Association was created calling for a boycott of British goods. The continuing escalation of hostility resulted in violence when in April 1775, British troops traveled to Lexington and Concord to take control of stored colonial gunpowder and to capture Samuel Adams and John Hancock. Eight Americans were killed at Lexington. At Concord, the British troops retreated losing 70 men in the process. May 1775 brought the meeting of the Second Continental Congress. All 13 colonies were represented. George Washington was named the head of the Continental Army with John Adams backing. The majority of delegates were not calling for complete independence at this point so much as changes in British policy. However, with the colonial victory at Bunker Hill on June 17, 1775, King George III proclaimed that the colonies were in a state of rebellion. He hired thousands of Hessian mercenaries to fight against the colonists. In January 1776, Thomas Paine published his famous pamphlet entitled Common Sense. Up until the appearance of this extremely influential pamphlet, many colonists had been fighting with the hope of reconciling. However, he argued that America should no longer be a colony to Great Britain but instead should be an independent country. Committee to Draft the Declaration of Independence On June 11, 1776, the Continental Congress appointed a committee of five men to draft the Declaration: John Adams, Benjamin Franklin, Thomas Jefferson, Robert Livingston, and Roger Sherman. Jefferson was given the task of writing the first draft. Once complete, he presented this to the committee. Together they revised the document and on June 28 submitted it to the Continental Congress. The Congress voted for independence on July 2. They then made some changes to the Declaration of Independence and finally approved it on July 4. Declaration of Independence Study Questions Why have some called the Declaration of Independence a lawyers brief?John Locke wrote about the natural rights of man including the right to life, liberty, and property. Why did Thomas Jefferson change property to the pursuit of happiness in the Declaration text?Even though many of the grievances listed in the Declaration of Independence resulted from acts of Parliament, why would the founders have addressed all of them to King George III?The original draft of the Declaration had admonitions against the British people. Why do you think that those were left out of the final version?

Should Abortion Be Legal - 1004 Words

Abortion is one of the most argumentative topics of all times. It has caused countless deaths and several violent confrontations between the two separate parties of opinion, pro-life pro-choice advocates. Despite what we may believe abortion is neither right, nor wrong. It is the matter of a personal opinion; each side will certainty says that the other one is wrong. Even though millions of abortions have been performed since 1973, the debate over whether abortion is strongly argued by many Americans, as well as people of many other countries and cultures. The question still remains, why should abortion remain legal? Abortion is defined as the deliberate of a pregnancy, usually before the embryo or fetus is capable of the independent†¦show more content†¦13†) Do we have the right to force the mother to keep a baby solely because she may or may not have consented to participate in a sexual activity? Do we have the right to take away someone’s because she has the potential to have a baby? Women have the right to make the choice of abortion or not. Pro-choice advocates argues that abortion should be legalized without the influence of government or religion. The government should not have the right to make a women’s choice to abort her pregnancy. Some women may make the choice of abortion due to their age, financial stability, culture, and relationship stability. Other women may choose to abort their pregnancy due to a traumatizing or unhealthy situation such as; rape or life-threatening medical condition. When precautions are taken, accidents can and do happen. Condoms break. Diaphragms malfunction. Even hormonal contraceptives are not 100 percent effective (In Search of Common Ground on Abortion, pg. 53). More than three milli on American women become pregnant unintentionally every year, and the rate of unintended pregnancy is especially high among young unmarried women (In Search of Common Ground on Abortion, pg. 53) Abortion

Relationship Between Economic Growth And Happiness

The famous English novelist Jane Austen once said, â€Å"A large income is the best recipe for happiness I ever heard of† (1894). Even nowadays, it is still generally believed that happiness is related to economic growth and prosperity, although this manner of thinking was attacked by the economist Robert Skidelsky in 2012, quoting a famous paper â€Å"Does Economic Growth Improve the Human Lot?† published earlier by another economist, Richard Easterlin (1974), to support his stance. Skidelsky stated that although there was a continuous rise in GDP per head from 1973 to 2009, there was no corresponding increase in reported levels of life satisfaction. Nowadays, people are starting to think more about the meaning of happiness and the relationship between economic growth and happiness. The relationship between economic growth and happiness may be considered as an inverted U-shape, with the highest point, or peak, of the shape representing a critical point in the relations hip between economic prosperity and happiness. Before reaching the critical point, rising income levels are very significant in increasing the level of an individual’s happiness. When the highest point is reached, it indicates that the basic living requirements, or needs, such as a supply of sufficient food, shelter and basic security have been satisfied. Once this point is exceeded, further economic growth alone no longer automatically increases levels of happiness, and indeed, may even cause an adverse effect in theShow MoreRelatedIndustrialization in the Modern World1357 Words   |  6 Pagesin Europe, America and parts of Asia, economic growth has been the major focus point of most governments. This quest arose because of the desire for higher economic status and political power. However, during this pursuit the subject of personal wellbeing and happiness came about. According to the PEW global survey (as cited in Stokes 2007), it has been noted that, an increase in pers onal well being has a direct relationship with an increase in economic growth. In other words, people in countriesRead MoreThe Correlation Between Income And Happiness1477 Words   |  6 Pagesincome on happiness. The results provided in these papers acknowledged that there is a connection between the two. Yet, other factors considered in their studies also say otherwise. Likewise, I wanted to see what these studies have concluded for myself and do my own analysis on the issue. Using data from the 2010-2014 World Values Survey (Wave 6), along with a cross tabulation analysis and Chi-Square Test, I tested the hypothesis that as an individual’s income increases, then their happiness alsoRead MoreThe Correlation Between Economic Growth And The Deterioration Of Our Environment Essay1731 Words   |  7 Pagespeople divided, but it is always better to be safe than sorry. Economists have found the correlation between economic growth and the deterioration of our environment: â €Å"In the quest for high rates of GDP, the human cost of producing goods and services is not set against the market value of those items.† (Mahadea and Rawat, 2008). In other words, there is a constant trade-off between sustaining economic growth and maintaining the natural ecosystem. As stated earlier, producers are unwilling to give up theirRead MoreEconomics Of Happiness Is Useful For Assess Overall Welfare Of An Individual1376 Words   |  6 Pagesmakes people happy (Thus) The economics of happiness is important to improve policy that impacts well-being (How) By using longitudinal data and original research to draw conclusions on happiness Chapter 1: The Economics of Happiness (Given) The economics of happiness is useful to assess overall welfare of an individual (Thus) Economics of happiness is complementary to income-based measurements of welfare (Because 1) Income-based measurements of happiness provide limited information (BecauseRead MoreBenefits Of Continuous Improvement Of Health Care System1399 Words   |  6 Pageswhich challenges policy makers in these countries how to take care for the increasing elderly population. Numerous scholars have empirically examined that individual subjective well-being may be considerably affected by one’s own physical, social and economic conditions (e.g., income, education, employment status, and health). However, empirical research on the effects of geographic and living environments on the subjective well-being has been relatively scarce. As a result, although a variety of programsRead MoreImpact of Cross-Cultural Differences on Different Perceptions of Happiness1358 Words   |  5 Pagesof happiness. A careful analysis of Weiners findings, which are rooted in research, shows that there are universal patterns and trends beyond individual and cultural differences. Happiness entails understanding the curious combination of internal and external factors; en vironmental triggers and the human psychological response to those triggers. Buddhist societies like those of Bhutan and Thailand show that happiness manifests when the individual no longer chases happiness, because happiness isRead MoreIncome Discrepancy as a Driving Factor for Divorce Essay1175 Words   |  5 Pagesto a dead end due to external struggles. In Happier, author Ben-Shahar discusses â€Å"the mistaken notion that finding love guarantees eternal bliss leads partners to neglect the journey – the day-to-day issues, activities, and events that shape the relationship† (Ben-Shahar, 121). There are many external factors that can be harmful to a marriage if the couple does not know how to progress, such as children, distance, and cultural values. This paper is going to explore how a difference in income can causeRead MoreThe Great Gatsby By F. Scott Fitzgerald867 Words   |  4 PagesIn the famous novel, The Great Gatsby, by Francis Scott Key Fitzgerald, the im age of the American Dream is portrayed as a desire of wealth and happiness. This proposed idea connects with our current controversial debate sponsored by Intelligence Squared U.S. by representing the aspiration of economic success. The â€Å"visceral topic† is questioned, â€Å"Does income inequality impair the American dream of upward mobility?† In the beginning, Mr. Robert Rosenkranz provides the audience with a comparison ofRead MoreMoney and Happiness1647 Words   |  7 Pages Running head: MONEY AND HAPPINESS Does An Increase In Wealth Make People, And Countries, Happier? Bishop s University Term paper March 11, 2014 PSY 246B: Social Psychology II Professor Standing Abstract In this paper, the relationship between happiness and money was examined. Does money buy happiness? Three studies were examined in depth to provide an answer to this question. This paper found that people believed that they would be happier if they were richer. It was also found thatRead MoreMaslow‚Äà ´s Hierarchy of needs1220 Words   |  5 PagesFinancial security Health and well being Safety net against accidents/illness and their adverse impacts With their physical needs relatively satisfied, the individual s safety needs take preference and prevail behavior. In the absence of economic safety – due to economic crisis and lack of work opportunities – these safety needs manifest themselves in such things as a preference for job security, grievance procedures for protecting the individual from one sided authority, savings accounts, insurance policies