ANNE N X E URE R S 328

Transcription

1 ANNEXURES 328

2 ANNEXURE A: SURVEY QUESTIONNAIRE MANAGEMENT CONSIDERATIONS AND FACTORS AFFECTING DIVIDEND DECISIONS- A STUDY OF SELECTED COMPANIES IN INDIA QUESTIONNAIRE ON MANAGEMENT CONSIDERATIONS TOWARDS DIVIDEND DECISIONS Dear Sir/Madam, My name is Shaveta Gupta, and I am pursuing Ph.D at Apeejay Institute of Management, Jalandhar, Punjab. Currently I am doing a research on Management Considerations and Factors Affecting Dividend Decisions- A Study of Selected Companies in India. As part of my research, this survey intends to investigate managers views about some related issues to corporate payout policy. According to the pilot-test of the survey, it will take you ten to fifteen minutes to complete this questionnaire. Corporate payout policy is a topic that has attracted the interest of all the academicians and researchers both in research and in practice. While framing the dividend policy, numbers of factors are considered that are expected to play an important role in the decision-making of a company and also have an impact on its shareholders. This survey aims to investigate managers view about corporate dividend decision and their impact. I hope that the results from this survey can provide us some insights into corporate payout policy and provide some ideas of how to explain the unsolved puzzle of dividend. I really appreciate you spending a few minutes completing this survey. Any comment on this questionnaire is also welcomed. I will inform you about the results of this interesting survey. Thank You. Yours Sincerely Shaveta Gupta 329

3 Earnings Management and Dividend Policy 1. Is your organization consciously engaged in Earnings Management? i) Yes ii) No 2. Who is most influential in your organization in implementing earnings distribution once the Board of Directors takes the decision? S.No. Influential Person Very Often(4) Often(3) Sometimes(2) Never(1) i CEO ii MD iii CFO 3. What are the ways in which your company manages earnings? S.No. Ways to Manage Earnings Always (3) Sometimes(2) Never(1) i Only Dividend Distribution ii Only Share Buy Back iii Both 4. How often your organisation re-examines its earnings distribution policy? i) 1-3 years ii) More Than 3 years 5. Does your organization have a target payout ratio? i) Yes ii) No 6. Of the funds to be distributed as dividends, what is the most likely alternative use of funds? Rank them on the scale of preference, where 1= most preferred and 5=least preferred. S.No. i ii iii iv v Alternative Use of Funds Fund Investment Opportunities To make payment of debt Retained Earnings Share buyback Corporate Restructuring Rank 7. What is the target of your company while taking a dividend decision? Rank them on the scale of preference, where 1= most preferred and 4=least preferred. 330

4 S.No. Target Dividend Decision Rank i Growth in Dividend ii Stable Dividend iii Dividend as percentage of Earnings iv No target 8. Rate the following factors that determine and influence the management considerations while framing the dividend policy in your organization on the scale of influence, 5= very influential and 1=least influential. Circle the number corresponding to the level of influence. S.No. Factors Highly Influential Neutral Least Uninfluential Influential Influential i Current Profitability ii Expected Profitability iii Price-earnings ratio iv Degree of financial leverage v Expected rate of return on firm s assets vi Pattern of past dividend vii Variations in Sensex viii Competitor s dividend policy ix Organisation s Policy x Desire to maintain a given pay out ratio xi Desire to confirm to industry s pay out ratio xii Expectations of current shareholders xiii Investment opportunities xiv Desire to send favorable signal to investors Are there other factors that influence dividend policy of your firm, other than those mentioned above? Yes No If Yes, please specify those factors 9. Circle the number corresponding to your level of agreement or disagreement with the statement about dividend policy and its various aspects. Statements Expectations of shareholders influences dividend policy Dividends affect control of shareholders over a firm A firm should conform to investor s expectations Inside shareholders have different preferences as compared to outside Strongly Agree Agree Neutral Disagree Strongly Disagree 331

5 shareholders Investors base their decisions on the basis of dividend payment Due to tax reasons, private shareholders have a preference for receiving dividends over selling shares. Shareholders perceive income in the form of dividends more attractive than income in the form of capital gains. Share prices are influenced more by macro-economic forces as compared with dividend Paying good rate of dividend helps in getting the desired credit rating An optimal dividend policy should balance between current and future growth rate A firm should follow stable and continuous dividend policy A firm should match the industry s pay out ratio Dividend decision should be based on earnings of the firm Institutional investors influences dividend policy Due to tax reasons, institutional shareholders have a preference for receiving dividends over selling shares. A company may forego dividend in order to save for future plans Stock prices increases with the increase in dividends Cost of raising external debt is less than cost of cutting dividend Dividends are to be paid to attract institutional investors Dividends are to be paid to attract retail investors to purchase stock Dividends affect value of firm Increase in dividend reflects lack of investment opportunities of firm Inflation act as constraint on dividend declaration Full disclosure should be made to the investors at the time of change in dividend policy Stock prices falls with decrease in dividends Company is willing to rescind increase in dividend in case of growth opportunities Dividends are more likely paid from permanent operating cash flow Paying cash dividends result in costly cash drain 332

6 Demographic Profile 1. Name of the Organisation 2. Type of Industry i) Manufacturing ii) Services 3. Age of Company i) Less than 10 years ii) years iii) years iv) years v) More than 40 years 4. Stage of Business i) Introduction Stage ii) Growth Stage iii) Maturity Stage 5. CEO s Background i) Business Executive ii) Academician iii) Public servant iv) From Financial Institution If any other profession, please specify 6. Does your company have a code of Corporate Governance? i) Yes ii) No THANK YOU 333

7 ANNEXURE B: LIST OF COMPANIES COVERED FOR PRIMARY DATA COLLECTION COMPANY NAME 1 Vardhman Textiles 2 Glaxo Smithkline 3 Cosmo Ferrites 4 Sukhjit Starch 5 JCT Textiles 6 Reliance 7 BHEL 8 ITL 9 Herman Milkfoods Ltd 10 Punjab Communications Ltd 11 Agro Dutch Inds Ltd 12 Uniroyal Inds Ltd 13 Abhishek Industries 14 Supreme Tex 15 Nahar Spinning Mills 16 Nahar Poly Films 17 Bhandari Hosiery Exports 18 Kuvam International Fashions ltd. 19 Oswal 20 Vardhman Polytex 21 Global Knitfab 22 Lakshmi Foods and Energy 23 Malwa Cotton Spinning Mills 24 Punjab Woolcombers Ltd. 25 Infosys 26 Swaraj Engines 27 Tech Mahindra 28 Tata Consultancy Services 29 Jagatjit Industries Ltd. 30 Naraingarh Sugar Mills Ltd. 31 Nijjer Agro Foods Ltd. 334

8 ANNEXURE C: LIST OF COMPANIES COVERED FOR SECONDARY DATA COLLECTION ENGINEERING SECTOR FMCG SECTOR IT SECTOR TEXTILE SECTOR 1 A B B Ltd. A D F Foods Ltd. Aftek Ltd. Acknit Industries Ltd. 2 A B C Bearings Ltd. Anik Industries Ltd. Blue Star Infotech Ltd. Alok Industries Ltd. 3 Ador Welding Ltd. Avanti Feeds Ltd. C M C Ltd. Alps Industries Ltd. 4 Amara Raja Batteries Ltd. Bajaj Hindusthan Ltd. Compucom Software Ltd. Amarjothi Spinning Mills Ltd. 5 Aplab Ltd. Bannari Amman Sugars Ltd. Cranes Software Intl. Ltd. Ambika Cotton Mills Ltd. 6 Atlas Copco (India) Ltd. Britannia Industries Ltd. Datamatics Global Services Ltd. Arvind Ltd. 7 Avaya Globalconnect Ltd. C C L Products (India) Ltd. Geodesic Ltd. B S L Ltd. 8 Bharat Bijlee Ltd. Chaman Lal Setia Exports Ltd. Geometric Ltd. Banswara Syntex Ltd. 9 Bharat Heavy Electricals Ltd. Dhunseri Tea & Inds. Ltd. H C L Technologies Ltd. Bombay Dyeing & Mfg. Co. Ltd. 10 Bilpower Ltd. E I D-Parry (India) Ltd. Helios & Matheson Information Technology Ltd. Century Enka Ltd. 11 Cummins India Ltd. G M Breweries Ltd. Hexaware Technologies Ltd. Cheviot Co. Ltd. 12 D-Link (India) Ltd. G M R Industries Ltd. Hinduja Ventures Ltd. Damodar Threads Ltd. 13 Eimco Elecon (India) Ltd. Glaxosmithkline Consumer Healthcare Ltd. Infosys Technologies Ltd. Deepak Spinners Ltd. 14 Elecon Engineering Co. Ltd. Godfrey Phillips India Ltd. Infotech Enterprises Ltd. Dhanlaxmi Fabrics Ltd. 15 Emco Ltd.B47 Gujarat Ambuja Exports Ltd. Jetking Infotrain Ltd. Donear Industries Ltd. 16 Exide Industries Ltd. Heritage Foods (India) Ltd. K L G Systel Ltd. Eastern Silk Inds. Ltd. 17 F A G Bearings India Ltd. I T C Ltd. K P I T Cummins Infosystems Ltd. Fairdeal Filaments Ltd. 18 Finolex Cables Ltd. Indage Vintners Ltd. Mastek Ltd. Garden Silk Mills Ltd. 19 Forbes & Co. Ltd. Jay Shree Tea & Inds. Ltd. Micro Technologies (India) Ltd. Garware-Wall Ropes Ltd. 20 G G Dandekar Machine Works Ltd. K R B L Ltd. Mindteck (India) Ltd. Nahar Poly Films Ltd. 21 G M M Pfaudler Ltd. K S E Ltd. Mphasis Ltd. Nahar Spinning Mills Ltd. 22 Gemini Communication Ltd. Kaira Can Co. Ltd. N I I T Ltd. Raymond Ltd. 23 Gujarat Apollo Inds. Ltd. Kriti Industries (India) Ltd. Netlink Solutions (India) Ltd. S R F Ltd. 24 H C L Infosystems Ltd. Marico Ltd. Nucleus Software Exports Ltd. Super Spinning Mills Ltd. 25 High Energy Batteries (India) Ltd. Nestle India Ltd. Panoramic Universal Ltd. Suryalakshmi Cotton Mills Ltd. 26 Honda Siel Power Products Ltd. Rasoi Ltd. Patni Computer Systems Ltd. Suryalata Spinning Mills Ltd. 27 Honeywell Automation India Ltd. Rei Agro Ltd. Polaris Software Lab Ltd. Valson Industries Ltd. 28 I T L Industries Ltd. Riddhi Siddhi Gluco Biols Ltd. Rolta India Ltd. Vardhman Polytex Ltd. 29 Igarashi Motors India Ltd. Ruchi Soya Inds. Ltd. Satyam Computer Services Ltd. Winsome Yarns Ltd. 30 Incap Ltd. S K M Egg Products Export (India) Ltd. Softpro Systems Ltd. Zenith Fibres Ltd. 335

9 31 Ingersoll-Rand (India) Ltd. Sukhjit Starch & Chemicals Ltd. Sonata Software Ltd. Nijjer Agro Foods Ltd. 32 Integra Hindustan Control Ltd. Tata Coffee Ltd. Subex Ltd. 33 International Combustion (India) Ltd. Tata Tea Ltd. Tata Consultancy Services Ltd. 34 K S B Pumps Ltd. Tilaknagar Industries Ltd. Tata Elxsi Ltd. 35 Khaitan Electricals Ltd. United Spirits Ltd. Teledata Informatics Ltd. 36 Kulkarni Power Tools Ltd. Universal Starch-Chem Allied Ltd. Tricom India Ltd. 37 Lakshmi Electrical Control Systems Ltd. V S T Industries Ltd. Wipro Ltd. 38 Manugraph India Ltd. Venky'S (India) Ltd. Zen Technologies Ltd. 39 Mazda Ltd. Vimal Oil & Foods Ltd. Zenith Infotech Ltd. 40 Moser Baer India Ltd. Zensar Technologies Ltd. 41 Mro-Tek Ltd. 42 N R B Bearings Ltd. 43 Numeric Power Systems Ltd. 44 Opto Circuits (India) Ltd. 45 Panasonic Energy India Co. Ltd. 46 Poly Medicure Ltd. 47 Rajoo Engineers Ltd. 48 Ram Ratna Wires Ltd. 49 S K F India Ltd. 50 Salzer Electronics Ltd. 51 Shanthi Gears Ltd. 52 Shilp Gravures Ltd. 53 Siemens Healthcare Diagnostics Ltd. 54 Stovec Industries Ltd. 55 Sulzer India Ltd. 56 Surana Telecom & Power Ltd. 57 Swaraj Engines Ltd. 58 T R F Ltd. 59 Value Industries Ltd. 60 Veejay Lakshmi Engg. Works Ltd. 61 Walchandnagar Industries Ltd. 62 Wendt (India) Ltd. 63 Zicom Electronic Security Systems Ltd. 336