Corporate Finance Project

Objective –
The aim of the following project is to identify the determinants of the capital structure decisions and its relationship to dividend policy within listed companies in the GCC/MENA region in comparison to the rest of the world.

We selected following markets
1) GCC – Oman – muscat securities market (No. of companied 92)
2) Rest of the world – Brazil – B3

Aim-
The aim of the project is to identify the determinants of the capital structure decisions and its relationship to dividend policy within listed companies.

Scope –
Each group needs to pick one financial market from a GCC/MENA country and one financial market from rest of the world.
Excluded: Financial firms (Banks, investment firms, insurance companies, …)
No two groups are to select the same financial markets.

DATA COLLECTION AND ANALYSIS: (We have already downloaded Data from thomson reuters)

A. Market Introduction: Facts and Figures about history, number of listed firms, listing requirements, Market Cap, Index performance over the last 10 years (use Stock Chart option when charting) , … You may not copy a chart from the net. You need to produce it.
B. Capital Structure
i. Review the literature addressing capital structure, cost of capital, and leverage both in GCC/ MENA countries and rest of the world (minimum of 5 articles).
ii. For the past 10 years, collect end-of-period data for ALL listed companies, except Financial ones, within the two markets you have selected:
o TA, TL, TE, ROA, ROE, Liquidity ratio, D/E ratios, FA, Price per share, MBV, Sales, DPS, EPS, P/E ratio…
o You may collect additional data per your literature review in section i. above
iii. Run a regression with D/E (or D/V) as the dependent variable. Your independent variables will be based on your literature review. Run the regression for each market separately then for the both markets together
iv. Comment on your findings

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***FINAL REPORT***

Your submitted report may not exceed 5,000 words (excluding tables and graphs), double spaced, Calibri font size 11, with page numbering and includes the following sections:
1. Executive summary
2. Outline with page numbering
3. Introduction of the markets selected
4. Literature Review about capital structure
5. Data Collection & Analysis:
A. Summary of data collected (Descriptive statistics, tables and Charts) (collected data need not be included in the report but submitted in the Excel book through Turnitin)
B. Regression Analysis for each market and for both markets
C. Findings and Conclusion
6. Bibliography (References need to be in alphabetical order, check Appendix below for proper referencing)
7. Appendices,