presentation slides on the impact of dividend policy on firm performance
TRANSCRIPT
To My Presentation
Topic: “Impact of Dividend policy on
firm Performance”DIVIDEND POLICY
FIRM PERFORMANCE
Submitted By-Neloy Kumar RoyID NO:2012010000297Batch: 30th
Major: FinanceSoutheast University, Bangladesh
Submitted To-Syed Abdulla Al Mamun,Ph.D., ACMA
Associate Professor & Director
School of Business StudiesSoutheast University
The Topics will be cover:Overview of the organization.Objectives of the study.Activities of General Banking.Activities of Loans and Advanced Department.Activities of Foreign Exchange Department.Dividend Policy.Impact of NCC Dividend on performance.Recommendations.
Overview of the organization:
NCC Bank started its journey as an investment company back in 1985.
Converted into a fully fledged private commercial Bank in 1993 with the paid up capital of Tk. 39.00 core.
At end of 2015 it is operating its activity through 104 branches with 22 authorized dealer branches all over the Bangladesh.
NCCBL started its DSE & CSE journey as a listed bank from 2000.
Objectives of the study:
Primary Objectives:• To merge with the practical
working knowledge with Text book knowledge.
• To know the working condition and how employees make them fit with the corporate culture.
Secondary Objectives:• To know how the dividend
policy make impact on firm performance.
• Knowing about the practice of Banking in the Modern age.
• To have an idea of the existing systems of all department that practice by the NCCBL.
Functions of NCC Bank-
• Key functions of NCCBL are done through the department wise.
Loans and Advanced Department
General Banking Department
Foreign Exchange Department
Activities through GB Department:
General Banking
Current A/C:
Savings Bank Deposit A/C:
Fixed deposit Account:
Special Savings
Scheme:
Activities through Loans and Advanced Department:
Personal Loans:
House Building Financing
Car Loan:
Education Loan:
Activities through Foreign Exchange Department:
Import section
,Export section
,
Foreign remittance section
Import Section:
L/C Letter of Credit:
Transmitting
the L/C
Amendment of L/C:
Payment of
L/C
Export section:
L/C
Advising of L / C:
Back to Back
Foreign L/C:
Back to Back Local
L / C:
Back to Back L / C:
Foreign Remittance Section
Green Banking by NCC Bank:
Green Branch
Sustainable
societyGreen Financ
e
Green Marke
ting
Awareness
Dividend Policy
• Dividends may be in form of cash dividends in which the company pays some cash amount per share to share holder, or it may be in terms of stock dividends, in which the company issues new stocks to existing shareholders in proportion of their existing shares.
Theoretical Framework
Theoretical Framework Agency theory: Signaling Theory: Bird in hand theory: Dividend Irrelevance
Theory:
Prior Study on Dividend policy Dividend Policy Ratios has
an impact on Financial Performance.
Dividend Policy Ratios and Financial Performance are significantly correlated.
All factors determine the Dividend Policy Ratios is significant
Conceptual frame work:
DEPENDEND VARIABLEINDIPENDEND VARIABLE
Impact of NCC Dividend on performance:
Variables ROA EPS TQ
D/P Ratio 0.418766797 0.11325134 0.269361342
Correlation:
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140
0.005
0.01
0.015
0.02
0.025
0.03
Series1
ROA
ROE
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140
0.05
0.1
0.15
0.2
0.25
0.3
0.35
Series1
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140
10
20
30
40
50
60
70
80
Series1
TQ/Tobin's Q
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140.84
0.86
0.88
0.9
0.92
0.94
0.96
Series1
EPS
Recommendations:
Providing cash Dividend can boost the overall performance.
Customer satisfactionProduct and services of the bank should be new,
competitive and innovative.Ensuring of fastest services for customersATM Booth should need to be all over the county
with 24/7 facility. Interest rate should be flexible to attract more clients.