Annual shoe sales currently stand at slightly more than 30 million pairs with a turnover for the year of Tk 5 billion. There are some arguments both for and against the dividend payment decision of a firm. We can determine which Dividend Policy is being followed by Bata Shoe after analyzing some of its financial data for the last 5 years.
This could send a positive signal to investors thinking that Bata has enough financing power for future growth, which we can see by observing the increase in its share price for the last 5 years. During that time was significantly affected because of global economic recession.
Today the Bata is a sprawling geo-centric company encompassing operations in more than 70 countries around the world and is managed by 3 Meaningful Business Units MBU across five continents. These retail outlets are an integral part of our brand marketing.
It also tells that there is a direct link between Dividend Policy of the firm and its market value. They should follow any particular dividend policy so that investors can assume their expected return on the basis of their preference Short term or Long term.
Bata has 13 Wholesale depots covering Bangladesh. Another major change in the Bata business policy is the segmentation of retail outlets according to profiles of different market segments and the introduction of novel concepts such as Bata City Stores.
The graph beside shows that Bata declared gradually higher dividend from to YearNet Income Tk ,,,Table: Among the theories above first two suggest that the dividend decision is important in determining the firms value where the last one goes against this decision.
It serves over 1 million customers per day, employs more than 50, people, operates more than 5, retail outlets, manages retail presence in over 70 countries and runs 27 production facilities across 20 countries.
Bird-in-the Hand theory A theory developed by Myron J. These selective outlets, in conjunction with other types of outlets such as Bata Bazar and Bata Family Stores, are adding a new level of consumer satisfaction.
The dividend policy ratio indicates the percentage of if each amount earned that is distributed to the owners in the form of cash. In the following years firm used much of their earnings for reinvestment.
Bata is trying to formulate an accomplished dividend policy that offers the dividend after undertaking the investment for expanding the business and financial decision.
The introduction of factory automation, long distance retailing and modernized shoe making ensured the profitability of the company from the very beginning. In Bangladesh, Bata started its operation in Bata has a firm commitment to eco-friendly business and a state of the art Effluent Treatment Plant ETP has been set up to provide a pollution free environment for both workers and the locality.
Bata Bangladesh has already developed its vision up to showing significant business growth as well as increased market share. This policy provides the owners with generally positive information, thereby minimizing uncertainty. At last, we would thankful to our honorable course instructor and all the other group members who are associated with this report.
To prepare this report we have used the following method-Primary Data SourcesThese are those, which are collected for this specific report and which are afresh in nature, were not used before and need to be processed. The company is mainly engaged in manufacturing and marketing of leather, rubber, plastic, canvas footwear, hosiery and accessories items as well as finished leather.
Secondary Data Sources The secondary sources of data include as under: Coming from a family of shoemakers with a long heritage of eight generations and over three hundred years, Tomas Bata capitalized on knowledge, expertise and skills to propel his newly founded company forward.
We are going to find out about the dividend policy of Bata through this report. Therefore, consumers concentrated more on essential consumable items instead of footwear. According to Dividend Relevance the stock price of Bata should fall.
They can continue to retain the profits within the company, or they can pay out the profits to the owners of the firm in the form of dividends.
The following table is showing the net income for Bata Shoe Bangladesh Ltd. Once the company decides on whether to pay dividends, they may establish a somewhat permanent dividend policy, which may in turn impact on investors and perceptions of the company in the financial markets. Bata is playing a pivotal role in developing the leather industry of the country.
An appraisal of the Divident policy of Bata Shoe(Bangladesh) Ltd. December 17, Professor Dr. Tanbir Ahmed Chowdhury Course Instructor Masters of Business Administration. Bata Shoe Company Bangladesh is a subsidiary of Bata and operates as a footwear retailer and manufacturer in Bangladesh.
The company offers footwear such as shoes, slippers, dress shoes, and casual tie ups for men, women and children under the brand names B First, Bata, Bubblegummers, Dr Scholls, Hawaianas, Marie Claire, North 5/5(2).
Assignment on dividend policy on Bata Shoe, Bangladesh An Overview of Bata Shoe, Bangladesh An Overview of Bata Shoe, Bangladesh The Bata Shoe Organization was founded in by Czech businessman Tomas Bata in. Assignment on dividend policy on Bata Shoe, Bangladesh An Overview of Bata Shoe, Bangladesh The Bata Shoe Organization was founded in by Czech businessman Tomas Bata in the city of Zlin, what was then Czechoslovakia.
Dividend policy refers to the policy chalked out by companies regarding the amount it would pay to their shareholders as dividend.
These policies shape the attitude of the investors and the financial market in general towards the concerned company. Aug 19, · Dhaka, Bangladesh (BBN) – The board of directors of Bata Shoe Company and Keya Cosmetics have declared dividend, according to separate official disclosures on Tuesday.
BATA SHOE: The board of directors of Bata Shoe Ltd has recommended percent interim cash dividend. The multinational company declared the interim dividend considering the performance of the company .Dividend policy of bata shoe company bangladesh