Relationship between managerial ownership, dividend, and leverage financing.
For
the development of a country's economy and the standard of living, growth is
needed and has a significant role in changing it. Many of the studies stated that,
and provide different evidence related to the growth and development of the economy, through which the economic goal can be easily, achieved the high level
of growth and development provides chances to different parents in countries
where they educate his and her child. which lead the economy through
developing a new generation as an entrepreneur and thus a new way is started from
the past growth action into a new growth action and also establishing a good
governance system with the new technologies, in reaction Economic growth
and development is promoted. But under diverse circumstances, comparable rates
of development can have actual diverse things on poverty (Kibet & Jagongo,
2016)
According to Jensen, M (1976), conducted
study on Corporate governance from which they argue that corporate governance
is working as a controlling instruments, which means through these owners can control
the management team and board of directors that either they are working for
owner’s wealth or they are working for something else. The first aim of the
selected governance (Management & Directors) is to maximize the wealth of
owners’. As per Vishney, S. (1997) stated that for the
protection of the owners return and other stakeholder’s parties of the
corporation corporate governance play significant role to protect it. The
most important announcement for investors and organization is the dividend
announcement, it is considered the most vital portion of the events and almost
all of the previous research give focus to it.
The reflection of the previous works on the stock market is stated that
the market is Semi-strong form of efficient market hypothesis (EMH). It stated
that this form of market information about the stock price is included the
overall publicly available information immediately and accurately (Gupta,
2010).
According to the firm of
Asian development they state that the corporate governance is the power through
which the resources is managed of different countries, it is a tactical way for
of management. (Wescott, 2000) state that the corporate governance creates and
establish rules and regulation, codes creating structures and procedures, also
controlling techniques for the management of firms. The main goal of Corporate
Governance is to protect the stakeholders benefit. As per the state of
(Nielsen, 2000) that the Problem of Agency theory and for the reduction of cost
of organization will be reduce through the corporate governance, because it is
like an instrument for reduction of these problems. Manager incurred different
other type of cost for their own benefit because manager is trying to increase
and work for their own benefits instead of working for shareholders and owner
benefits. (Kidd and Richter, 2003). According to the study result of Eisenbeis
et al. (1999) examined the US firms’ profitability by using the method of
different techniques. They conclude from this work that both of the techniques
give very useful Profitability information, and also it indicates for the
management who have the control of taking decision that place and use more
weight in the method of SFA estimation. Chu and Lim (1998) use the DEA method
for the Singapore firming study. The Sufian and Majid (2006) also implement the
DEA technique for the listed firms of the Malaysian for the period of 2002-2003.
Pasiouras et al. (2007) conduct study on 10 Greece firms, they examined the ASE
listed firms. The result show that there is positive association between the
changes and the Profitability, and also find out that there also effect on the
return of stock. But on the other aspect that changing in Profitability have no
effect on the return of stock price
Variables
|
MGO |
|
|
LEV |
|
|
DIVR |
|
|
LIQ |
|
|
GRO |
|
|
ROA |
|
|
TANG |
|
|
SIZE |
|
|
|
|
Conclusion
Corporate
governance creates and establish rules and regulation, codes creating
structures and procedures, also controlling techniques for the management of
firms. The main goal of Corporate Governance is to protect the stakeholder’s
benefit. the Problem of Agency theory and for the reduction of cost of
organization reduce through the corporate governance, because it is like an
instrument for reduction of these problems. Manager incurred different other
type of cost for their own benefit because manager is trying to increase and
work for their own benefits instead of working for shareholders and owner
benefits. Corporate governance is the system of balancing and checking of
different resources. The objective of corporate governance is to monitor and
controlling the activities of management in organization. The combination of
different directors known as the size of board. The size of boards is different
from country to country, firm to firm due to its different culture, different
type of rules and regulation and also the type of ownership structure. As per
the study of Macit (2011), they used the ROA and ROE factors to determine the
profitability of firm, and also focused to evaluate specific factors. The
conducted on the turkey firms. Due to different geographical location, some of
the work analyze different issues and problem related to the Profitability of
firming system like the estimations from diverse methods.
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