At the primary stage of this study, I have
collected data from the annual report of the selected manufacturing companies
listed with DSE. I have also collected data from the monthly review report of
the DSE. But the main source of all the data is the annual report of the
companies. I have collected data for the 5 financial years. As a data sample, a
total of 100 companies’ data from different manufacturing sectors listed with
DSE are considered for this study. Then, I have used a statistical software STATA
to run my collected data to see the relation between the variables. Cross
sectional time series data technique has been used here to analyze my data and
then I used generalized least square regression. From the STATA analysis, I
have found some results that helped me to understand the relationship of the
independent variables and dependent variables.
For the regression analysis, I have taken
basic earning power of the manufacturing companies listed in DSE as dependent
variable and considered the other variables as independent variables.
Independent variables are age of the company, number of board members, number
of independent directors, number of board meeting held in a year, sponsors’
shareholding, shareholding by general
investors, shareholding by
institutions, shareholding by
model that I used is, Y = a + b1 X1 + b2 X2 + b3 X3
+ b4 X4 + b5 X5 + b6 X6
+ b7 X7 + b8 X8.
I have defined the dependent variable, Y as the basic earning power of the
company & defined the other variables as the following.
= Number of years from the establishment of a company.
= Total number of board members.
= Total number of independent directors in the board.
= For a specific year, total number of board meetings held.
= Sponsor’s shareholding percentage of a company.
= General investor’s shareholding percentage of a company.
= Institutional investor’s shareholding percentage of a company.
= Foreign investors’ shareholding percentage of a company.