Running Head: Summaries

Research Summaries
[Student’s Name]
[Institute’s Name]

[Date]
Table of Contents
The Rise of Domestic Capital Markets for Corporate Financing....................................................2
Summary......................................................................................................................................2
IMPACT OF DIVIDEND POLICY ON SHARE PRICE VOLATILITY FOR COMPANIES
LISTED ON PAKISTAN STOCK EXCHANGE...........................................................................3
Summary......................................................................................................................................3
Determinants of corporate dividend policy in Indonesia.................................................................4
Summary......................................................................................................................................4
Financial Markets in Pakistan..........................................................................................................6
Summary......................................................................................................................................6
 The Rise of Domestic Capital Markets for Corporate Financing

Summary

With respect to the past era, it has been denoted that the companies have some emerging

economies that have been significantly rising the amount of finance in obtaining the capital

markets. Thus, as per the argument of literature, there has been a major increase in the amount of

financing that has been obtained in the capital markets. Thus, it has been argued in the literature

that international market have a significant contributor to the procedure and the primary role of

domestic market is said to be not known.

By careful consideration of the scenario of East Asia, it can be observed in this journal that

domestic markets have proved to be the primary factor to look into the trends in financing of the

capital market since the year 2000s. The development of local markets resulted in increase in

smaller firms that made their way to the equity and financing of corporate bonds. Some

corporations also acquired diversified sources of funding by these local markets and also

acquired financing of local currency. The progression of local markets that was due to the Asian

financial crunch and the policies’ restructuring. A sizeable chunk of this restructuring was

focused to enhance local financial markets for both small and medium sized initiatives. Even

though these financial markets have advanced considerably, but still assist quite less

establishments, even if they are from new segments. Moreover, this article is relays to the

research that will help us comprehend if the international and local capital markets are alternates

or counterparts. In this paper it is debated that capital resistances can result in subdivision of the

market, avoiding some companies and stakeholders to take part in foreign capital markets. For

example, irregularities in the information, treatment of taxation, static financial transaction

charges, and some protocols prevent some corporations to consuming some particular markets
that either or both cause those particular stakeholders and capital mediators. It has been also

denoted that the domestic capital market growth in the East Asia have been occurred with the

implication of the policy makers that have implemented the series of reforms of the capital

market. Through the evaluation that whether the policy reform will be helping to jump and start

the process is not that much easy and all the East Asian economy have been implementing the

reform of the diverse kind that is over the extended time. It could also be the case that there will

be no single reform that will be relevant and specific than others. In addition, the idea of

commitment also turned to motivate some more companies and also the investors in using the

market. There has been a question that whether the investors could initiate development. It could

be the case that the increase in the saving and domestic investing have been reformed and there

will be more availability in the markets. There is some other possibility that the reforms will aim

to liberalize the market and also lowers the restriction to the foreign investor. In the analysis,

there has been an effect of the capital market that is in the need of East Asia.

IMPACT OF DIVIDEND POLICY ON SHARE PRICE VOLATILITY FOR

COMPANIES LISTED ON PAKISTAN STOCK EXCHANGE

Summary

The primary study have been carried out regarding the effect of dividend policy on the share

price volatility for the companies that have been listed in the Pakistan stock exchange. There are

following study that have been carried to evaluate the effect of the dividend policy and price

volatility of the corporation that is in the PSX. This is the reason that the researcher have

gathered 10 companies’ data for the 10 years and ranges from 2008 to 2017. In addition, the

primary variables of the study will be the share price volatility that is the dependent one and the

dividend payout ratio and dividend yield is an independent one. The strategies have been also
used by analyzing the correlation evaluation and regression. As per the results, it has been

denoted that the effect of dividend policy is significant on the share price volatility and others

thus both the variables have been considered as significant with DPR and affects price volatility

in a negative way. The study have been also supporting different studies that has been conducted

in Pakistan. Moreover, it has been also denoted that dividend policy is among the financial

strategy that has been used by the companies in evaluating the amount and time for the dividend

payment. It has been among the aspect of the corporate finance that have a major effect on the

value of firm that is shareholder wealth. The policy of dividend comprise of two kinds that are

residual dividend policy and also managed the policy. There has been also a description of the

residual dividend policy that have been paid on profits and also makes some captivating

investments. There are several researches which have denoted that by understanding the effect

and association among the dividend policy and share price volatility. The results have been

depicting that there is a positive effect of dividend policy on share price volatility. While, it has

been denoted that there are several reasons and aspects that the dividend policy effect the share

prices as it has a significant effect in the capital structure of the company and signals the

investment in the growth. This shows that this study has room for improvement in the future.

Alongside this, it can also be made industry-specific to present a clearer picture for the

policymakers of the companies to lessen the volatility to earn return more. The policymakers

then can adequately be decisive regarding the dividend policy that whether it should be

conservative or progressive.
 Determinants of corporate dividend policy in Indonesia

Summary

The study evaluates regarding the determinants of corporate dividend policy thus it aims to

evaluate the effect of the dividend policy. The sample have been used in the study in the

manufacturing companies that have been listed in Indonesian stock exchange in the period of

2011 to 2015. In this study, the independent variables are cash flow, earning, free cash flow and

investment opportunities and the idea of dividend policy is considered as dependent variable. It

has been denoted that after evaluating the data by the software of eviews there has been an

illustration of multiple regression analysis that also reveals the cash flow, firm size, lagged

dividend and have shown positive effect on the dividend policy. In addition, debt and investment

opportunity have no effect on the dividend policy. It has been denoted that there are large

stakeholders that plays a significant role in the evaluation management that has been compared

to the small shareholder and have great vote power to enhance the decision of firm. There are

some other factors that have effect on the dividend policy and risk. A negative association found

between firm risk and dividend policy. Lagged dividend are the significant factors in determining

dividend policy as current dividends affected by the firm’s past dividends. This is due to belief

that the shareholders favor a reasonably stable rate of dividends Based on the above argument, a

study was conducted to analyze determinants of dividend policy in manufacturing companies.

This research is done to examine the influence of earning, cash flow, free cash flow, debt, growth

opportunities, investment opportunities, firm size, largest shareholder, firm risk, and lagged

dividend on dividend policy (dividend per share) in companies listed in Indonesia Stock

Exchange for the period of 2011-2015

 Financial Markets in Pakistan

Summary

It has been denoted that financial market in Pakistan have been comprising of the money market

that aims to provide short term funding and capital market that make up long term availability of

funds in the industries. The idea of financial market could be comprised into primary market that

is a new bond being issues and the secondary market that issues securities previously such as

bonds, shares, mutual funds and commercial papers. In addition, the idea of banking and non-

banking sectors have been regulated by the state bank and central bank. Thus there has been the

rest of market that includes insurance, mutual funds, stock exchange and modarba that is

regulated by the exchange commission of Pakistan. In the primary way, there has been a

corporations that have been helping the companies to rise up the equity capital and underwrite

the issues. There are also companies that have been desiring acquisitions. Thus, they aim to

provide the service of foreign exchange, instruments and shares. The idea of financial market

have been experiencing rising condition in the year 1991 and this is because of liberalization.

There has been a manifold that have increased the number of companies being listed. In addition

 It is important for public sector to decrease the dependency level

 The projects of infrastructure needs to be financed

 The mortgage financing must be motivated

 Foreign institutional investors should be encouraged to take up (i) private equity funds,

(ii) private pension funds, (iii) provident and gratuity funds and (iv) Real Estate

Investment Trusts.