Study Of Business Companies In Colombo Stock Exchange - Free Essay Example

Sample details Pages: 10 Words: 2870 Downloads: 10 Date added: 2017/06/26 Category Business Essay Type Analytical essay Did you like this example? Capital structure is most significant discipline of companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s operations. The Study attempts to identify the impact of Capital Structure on Companies Performance. The analyze has been made Financial year from 2005 to 2009 (05 years) financial year of Business companies in Sri Lanka. The results shown the relationship between the capital structure and financial performance is negative association at -0.114.. F and t values are 0.366, -0.605 respectively. It is reflect the insignificant level of the Business Companies in Sri Lanka. Hence Business companies mostly depend on the debt capital. So that, they have to pay interest expenses much. 1. Introduction To understand how companies finance their operations, it is necessary to examine the determinants of their financing or capital structure decisions. Company financing decisions involve a wide range of policy issues. At the private, they have implications for capital market development, interest rate and security price determination, and regulation. At the private, such decisions affect capital structure, corporate governance and company development (Green, Murinde Suppakitjarak, 2002). Knowledge about capital structures has mostly been derived from data from developed economies that have many institutional similarities (Booth 2001). It is important to note that different countries have different institutional arrangements, mainly with respect to their tax and bankruptcy codes, the existing market for corporate control, and the roles banks and securities markets play. Capital structure refers to a mixture of a variety of long term sources of funds and equity shares including res erves and surpluses of an enterprise. The historical attempt to building theory of capital structure began with the presentation by Modigliani miller (MM)(1958). They revealed the situations under what conditions that the Capital structure (CS) is relevant or irrelevant to the financial performance of the listed companies. most of the decision making process related to the CS are deciding factors when determining the CS, a number of issues e.g. cost, various taxes and rate, interest rate have been proposed to explain the variation in Financial Leverage across firms (Van Horne,1993; Hampton,1998; Titman Wessels,1998).these issues suggested that the depending on attributes that caused the cost of various sources of capital the firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s select CS and benefits related to debt and equity financing The relationship between capital structure and financial performance is one that received considerable attention in the finance literature. How important is the concentratio n of control for the company performance or the type of investors exerting that control are questions that authors have tried to answer for long time prior studies show that capital structure has relating with corporate governance, which is the key issues of state owned enterprise. To study the effects of capital structure or financial performance, will help us to know the potential problems in performance and capital structure. Don’t waste time! Our writers will create an original "Study Of Business Companies In Colombo Stock Exchange" essay for you Create order 2. Literature Review Modigliani and Miller(M M)(1958) wrote a paper on the irrelevance of capital structure that inspired researchers to debate on this subject. This debate is still continuing. However, with the passage of time, new dimensions have been added to the question of relevance or irrelevance of capital structure. MM declared that in a world of frictionless capital markets, there would be no optimal financial structure (Schwartz Aronson, 1979). This theory later became known as the Theory of Irrelevance. In M Ms over-simplified world, no capital structure mix is better than another. M Ms Proposition-II attempted to answer the question of why there was an increased rate of return when the debt ratio was increased. It stated that the increased expected rate of return generated by debt financing is exactly offset by the risk incurred, regardless of the financing mix chosen. Brander and Lewis (1986) and Maksimovic (1988) provide the theoretical framework that links capital structure and ma rket structure. Contrary to the profit maximization objective postulated in industrial organization literature, these theories are similar to the corporate finance theory in that they assume that the firms objective is to maximize the wealth of shareholders. Furthermore, market structure is shown to affect capital structure by influencing the competitive behavior and strategies of firms. Firms in an oligopolistic market will follow the strategy of maximizing their output in favorable economic conditions to optimize profitability (Brander Lewis 1986). The theory also holds in unfavorable economic conditions; firms would take a cut in production and reduce their profitability. Shareholders, though, while enjoying increased wealth in good periods, tend to ignore a decline in profitability in bad times. This is due to the fact that unfavorable consequences are passed in to lenders because of shareholders limited liability status. Therefore, the oligopolistic firms, in contrast to fi rms in competitive markets, would employ higher levels of debt to produce more when opportunities to earn higher profits arise. The implied prediction of the output maximization hypothesis is that capital structure and market structure have a positive relationship. In corporate finance, the agency costs theory supports the use of high debt, and it is consistent with the prediction of the output maximization hypothesis. Jensen and Meckling (1976) argue that the shareholders-lenders conflict has the effect of shifting risk from shareholders and of appropriating wealth in their favor as they take on risky investment projects (asset substitution). Hence, shareholders, and managers as their agents, are prompted to take on more borrowing to finance risky projects. Lenders receive interest and principal if projects succeed, and shareholders appropriate the residual income; however, it is the lender who incurs the loss if the project fails. It is difficult and costly for debt holders to be able to assess and monitor Huson, and Nazrul Hisyam. (2008) examined that the relationship between ownership structure and company performance has been issue of interest among academics, investors and policy makers because of key issue in understanding the effectiveness of alternative governance system in which government ownership serve as a control mechanism. Therefore, this study examines the impact of alternative ownership/control structure of corporate governance on firm performance among government linked companied (GLCs) and Non-GLC in Malaysia. It is believed that government ownership serve as a monitoring device that lead to better company performance after controlling company specific characteristics. We used Tobins Q as market performance measure while ROA is to determine accounting performance measure. This study is based on a sample of 210 firms over a period from 1995 to 2005. We use panel based regression approach to determine the impact of ownership mechanism o n firms performance. Findings appear to suggest that there is a significant impact of government ownership on company performance after controlling for company specific characteristics such as company size, non-duality, leverage and growth. The finding is off significant for investors and policy marker which will serve as a guiding for better investment decision. Mohammed Omran (2001) evaluates the financial and operating performance of newly privatized Egyptian state-owned enterprises and determines whether such performance differs across firms according to their new ownership structure. The Egyptian privatization program provides unique post-privatization data on different ownership structures. Since most studies do not distinguish between the types of ownership, this paper provides new insight into the impact that post-privatization ownership structure has on firm performance. The study covers 69 firms, which were privatized between 1994 and 1998. For these newly privatized fi rms, these study documents significant increases in profitability, operating efficiency, capital expenditures, and dividends. Conversely, significant decreases in employment, leverage, and risk are found, although output shows an insignificant decrease following privatization. The results also show that Egyptian state-owned enterprises, which were sold to anchor-investors and employee shareholder associations, seem to outperform other types of privatization, such as minority and majority initial public offerings. B.Nimalathasan and Brabete (2010) pointed out that Dept equity ratio is positively and strongly associated to all profitability ratios in Listed Manufacturing Companies. 3. Conceptual Frame Work Based on the Litteratures, the following conceptual model is constructed. It shows that hypotgesized the relationship between capital structure and Performance of listed Business companies in Sri Lanka Debt Equity CS GP NP FP ROE ROI 4. Objectives The main objective is to find out the impact of Capital Structure on Financial Performance of the Business companies in Srilanka. To achieve the above objective the following sub objective are considered To identify the relationship between capital structure and performance To determinants of a capital structure 5.0 Hypotheses The following hypothesis is formulated for the study H1:- The capital structure has significant impact on financial performance. H2:-Capital structure is significantly correlated with financial performance 6.0 Methodology To produce the above mentioned research objective, the data for this study was gathered from the financial statements as published by Business Companies. In addition, another source of data was through reference to the review of different articles, papers, and relevant previous studies. For this purpose, collecting data of Business firms is used which are listed on Colombo Stock Exchange.. All firms are taken for the study representing the period of 2005-2009, and the average values of each item was considered for the purpose of ratio computation and analysis. 6.1 Mode of Analysis 1.Capital structure Role of debt and equity Debt ÃÆ'—100 equity Debt ÃÆ'—100 Total funds Total funds 2.Financial Performance Gross profit Gross profit ÃÆ'—100 Net Sales Net Sales Net profit Net profit Net profit ÃÆ'—100 Sales ROA PAIT ÃÆ'—100 Assets ROI/ROCE Investment PBIT ÃÆ'—100 Equity 7. Results and Discussions 7.1 Correlation Analysis Correlation is concern describing the strength of relationship between two variables. In this study the correlation co-efficient analysis is under taken to find out the relationship between capital structure and financial performance. It can be said that the what relationship exist among variables Capital structure correlated with R value R2 value Gross profit 0.360 0.1296 Net profit 0.110 0.0121 ROI -0.104 0.0108 ROA -0.196 0.0384 Performance -0.114 0.0129 7.1.1 Capital structure and Gross profit Table I Variables Capital structure Gross profit Capital structure 1 0.360 Gross profit 0.360 1 It shows the relationship between gross profit and capital structure variables. There is a weak positive relationship between two variables. The correlation is 0.360. significant level is 0.01. the co-efficient of determination is 0.1296. that is only 12.96% of variance in the capital structure is accounted by the gross profit. So, There is a weak positive relationship between capital structure and gross profit 7.1.2 Capital structure and Net profit Table II Variables Capital structure Net profit Capital structure 1 -0.110 Net profit -0.110 1 It illustrates the relationship between net profit and capital structure variables. There is a weak negative relationship between two variables. The correlation is -0.110. Significant level is 0.01. The co-efficient of determination is 0.0121. That is only 1.21% of variance in the capital structure is accounted by the net profit. 7.1.3 Capital structure and ROI Table III Variables Capital structure ROI Capital structure 1 -0.104 ROI -0.104 1 It indicates the relationship between ROI and capital structure variables. There is a weak negative relationship between two variables. The correlation is -0.104. Significant level is 0.01. The co-efficient of determination is0.0108. that is only 1.08% of variance in the capital structure is accounted by the ROI. 7.1.4 Capital structure and ROA Table IV Variables Capital structure ROA Capital structure 1 -0.196 ROA -0.196 1 It shows the relationship between ROA and capital structure variables. There is a weak negative relationship between two variables. The correlation is -0.196 significant level is 0.01. the co-efficient of determination is 0.0384. that is only 3.84% of variance in the capital structure is accounted by the ROA. 7.1.5 Capital structure and Financial performance Table V Variables Capital structure Financial performance Capital structure 1 -0.114 Financial performance -0.114 1 It illustrates the relationship between performance and capital structure variables. There is a weak negative relationship between two variables. The correlation is -0.114. Significant level is 0.01. The co-efficient of determination is 0.0129. that is only 1.29% of variance in the capital structure is accounted by the performance. 7.2 Regression Analysis Regression analysis is used to test the impact of financial performance on capital structure of the listed companies traded in Colombo stock exchange 7.2.1 Capital structure and Gross profit Table VI Model R R Square Adjusted R Square Std.Error of the Estimate 1 0.360a 0.129 0.098 0.32306 The above table shows the weak positive correlation between the capital structure and gross profit. Table VII Model Un standardized Coefficients Standardized Coefficients t sig B Std.Error Beta 1(constant) Capital structure 0.187 0.047 0.073 0.023 0.360 2.556 2.039 0.016 0.051 The above table indicates the coefficient of correlation between the capital structure and gross profit. multiple r2 is 0.1296. only 1.29% of variance of gross profit is accurate by the capital structure. But, remaining 98.21% of variance with gross profit is attributed to other factors. 7.2.2 Capital structure and Net profit Table VIII Model R R Square Adjusted R Square Std.Error of the Estimate 1 0.110a 0.012 -0.023 0.36514 The above table shows the weak negative correlation between the capital structure and net profit. Table IX Model Un standardized Coefficients Standardized Coefficients t sig B Std.Error Beta 1(constant) Capital structure 0.124 -0.015 0.083 0.026 -0.110 1.498 -0.584 0.145 0.564 The above table indicates the coefficient of correlation between the capital structure and net profit. Multiple r2 is 0.012. Only 1.2% of variance of net profit is accurate by the capital structure. But, remaining 98.8 % of variance with net profit is attributed to other factors 7.2.3Capital structure and ROI Table X Model R R Square Adjusted R Square Std.Error of the Estimate 1 0.104a 0.011 -0.025 115.19484 The above table shows the weak positive correlation between the capital structure and ROI. Table XI Model Un standardized Coefficients Standardized Coefficients t sig B Std.Error Beta 1(constant) Capital structure 31.283 -4.563 26.050 8.250 -0.104 1.201 -0.553 0.240 0.585 The above table indicates the coefficient of correlation between the capital structure and ROI. Multiple r2 is 0.011. Only 1.1% of variance of ROI is accurate by the capital structure. But, remaining 98.9% of variance with ROI is attributed to other factors 7.2.4 Capital structure and ROA Table XII Model R R Square Adjusted R Square Std.Error of the Estimate 1 0.196a 0.039 0.004 0.10866 The above table shows the weak positive correlation between the capital structure and ROA. Table XIII Model Un standardized Coefficients Standardized Coefficients t sig B Std.Error Beta 1(constant) Capital structure 0.099 -0.008 0.025 0.008 -0.196 4.020 -1.060 0.000 0.298 The above table indicates the coefficient of correlation between the capital structure and ROA. multiple r2 is 0.039. only 3.9% of variance of ROA is accurate by the capital structure. But, remaining 96.1% of variance with ROA is attributed to other factors 7.2.5 Capital structure and Financial performance Table XIV Model R R Square Adjusted R Square Std.Error of the Estimate 1 0.114a 0.013 -0.022 0.98395 The above table shows the weak positive correlation between the capital structure and performance. Table XV ANOVA b .354 1 .354 .366 .550 a 27.109 28 .968 27.463 29 Regression Residual Total Model 1 Sum of Squares df Mean Square F Sig. Predictors: (Constant), Capital_structure a. Dependent Variable: Performance b. Table XVI Model Un standardized Coefficients Standardized Coefficients t sig B Std.Error Beta 1(constant) Capital structure 0.704 -0.043 0.223 0.070 -0.114 3.162 -0.605 0.004 0.550 The above table indicates the coefficient of correlation between the capital structure and performance. multiple r2 is 0.013. only 1.3% of variance of performance is accurate by the capital structure. But, remaining 98.7% of variance with performance is attributed to other factors. 8. Concluding Remarks Correlation analysis explains, there is a weak positive relationship between gross profit and capital structure (0.360).at the same time, there is a negative relationship between net profit and capital structure (-0.110).it reflects the high financial cost among the firms. ROI and ROA also has negative relationship with capital structure at -0.104, -0.196 respectively. It is focused on the overall point of view of the relationship between the capital structure and financial performance. There is a negative association at -0.114. Co-efficient of determination is 0.013. F and t values are 0.366, -0.605 respectively. It is reflect the insignificant level of the Business Companies in Sri Lanka. Business companies mostly depend on the debt capital. Therefore, they have to pay interest expenses much. 8.1 Testing of Hypotheses Statistical Techniques Results Correlation -0.114 Co à ¢Ã¢â€š ¬Ã¢â‚¬Å"efficient of determination -0.0129 Based on the empirical results of this study, H1this hypothesis come false .Because in this study the empirical results shows that there is a insignificant negative relationship H2: à ¢Ã¢â€š ¬Ã…“There is a positive relationship between the capital structure and firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial performanceà ¢Ã¢â€š ¬?. At the first step of testing the hypothesis(H1), hypothesis (H1) was considered and tested for its validity. It has the following result between the capital structure and firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial performance measured by performance measures such as ROA , ROI ,Net profit margin and etc. Based on the above evidence gathered, the H2 was rejected. Because research result is negative relationship between the capital structure and firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial performance. H0: à ¢Ã¢â€š ¬Ã…“there is a negative relationship between the capital structure and firmà ¢Ã¢ ‚ ¬Ã¢â€ž ¢s financial performanceà ¢Ã¢â€š ¬?. After the rejection of H1, the Null hypothesis (H0) was tested for its validity. H0 was accepted based on the above evidence gathered. it has been provided that there is a negative relationship between the capital structure and firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial performance(-0.114). 9.0 Suggestions and Recommendations The following suggestions are recommended to increase the Companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial performance based on capital structure. Performance standards should be established and communicated to the investors. This will help investors to achieve the standard and take better investment decisions. Identifying weaknesses of investment may be best one to improve the firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial performance, because it indicates the area which decision should be taken. Motivating the investors to help to achieve the high level of firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial performance.. Political changes are very important factor in the share market. It is also determine the firm performance. Therefore, political should possible to increase the financial performance of the listed companies. Inflation and exchange rate also affect the listed companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s performance. So, government should consider the economic growth to control the inflation.

Comparing Death of a Salesman and The American Dream Essay

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Investment Portfolio Construction Financialâ€Myassignmenthelp.Com

Question: Discuss About The Investment Portfolio Construction Financial? Answer: Introduction: The assignment describes that how a portfolio can be developed to meet the specific requirement of a client like developing a secured source of income tax. The assignment also describes how the assets should be chosen and a combination of assets can be developed so that not only the underlying corpus of the portfolio remains intact but the portfolio can achieve positive growth by offsetting the loss with the help of profit making assets(Elton et al.,2009). Proposed portfolio investment: Here the portfolio manager is trying to build a portfolio that will contain some good stocks that are expected to provide good return (Duong et al., 2009). The portfolio will be build in the context of the Australian Stock Exchange (ASX).Therefore the majority of the investments will be made in to the stocks that are listed in ASX. 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On the other hand looking at the high risk tolerance of the investor, a large portion of the total corpus of investment [around 60%] has been invested in top performing Australian stock as well as international stocks listed in NYSE. The stock investment is quiet risky with respect to the investment in LIC and Cash Management Account. More over in order to protect the value of the portfolio the port folio manager has avoided the stocks of the commodity market both in Australia as well as global context as there is enough price volatility in the commodity market across the world (Musiela and Zariphopoulou, 2009). Portfolio Evaluation: Percentage enhancement in the index SP/ASX 200[11.8.2017] 5,693.10 SP/ASX 200[10.7.2017] 5,724.40 Percentage change 1% Evaluation of return in Benchmark index The value of the SP/ASX 200 on 10.7.2017 was around 5724.4.Again the value of the SP/ASX 200 on 11.8.2017 was around 5693.1.Thus it can be said that during this period the value of the portfolio has been enhanced by 1% Portfolio performance Evaluation Value of investment on 10.7.17 Value of investment on 11.8.17 % change in each investment 50% Investment in individual company equity share(mainly in Australia large -cap companies, the companies are 100top listed companies of the Australian stock exchange)($) 1000000 968036.2 -3% 10%Investment in international US stocks listed in NYSE($) 200000 201893.1 1% 20% Investment in Australian listed investment companies($) 400000 446510.6 12% 20% Investment in cash management trust as a liquid and secured investment($) 400000 400480 0.12% Total 2000000 2016920 1% Evaluation of portfolio return The above portfolio evaluation defines that among the different assets of the portfolio, invested in ASX stocks has resulted in 3% loss, investment in NYSE stocks has resulted in 1% growth, investment in Australian LICS has resulted in 12% growth and investment in Cash management account has resulted in 0.12% growth. As a whole the portfolio has resulted in 1% growth. While comparing the performance (return) of the portfolio in comparison to the return of SP/ASX 200 index, it can be seen that both of them has made a 1 % progress for the period from 10.7.17 to 11.8.17.Thus it can be said that the portfolio has performance is a standard performance in comparison to that of the bench mark index of SP/ASX 200 Conclusion: From the above discussion it can be said that carefully selected assets for a portfolio are well capable to give a stable return and to protect the portfolio to make loss. In case of the above portfolio it can be seen that the loss incurred by the investment is ASX stocks has been well offset by the investment in NYSE stocks, Australian listed investment companies as well as in cash management trust. Thus as a whole the portfolio has managed to generate 1% growth. Thus this portfolio is a good example of balanced portfolio where loss making assets are balanced with profit making assets (Dierkes et al.,2010). Reference: Au.finance.yahoo.com. (2017). Business, Investments, Stocks Quotes - Yahoo7 Finance. [online] Available at: https://au.finance.yahoo.com [Accessed 12 Aug. 2017]. Balatbat, M.C., Lin, C.Y. and Carmichael, D.G., 2010. Comparative performance of publicly listed construction companies: Australian evidence.Construction Management and Economics,28(9), pp.919-932. Dierkes, M., Erner, C. and Zeisberger, S., 2010. Investment horizon and the attractiveness of investment strategies: A behavioral approach.Journal of Banking Finance,34(5), pp.1032-1046. Duong, H.N., Kalev, P.S. and Krishnamurti, C., 2009. Order aggressiveness of institutional and individual investors.Pacific-Basin Finance Journal,17(5), pp.533-546. Elton, E.J., Gruber, M.J., Brown, S.J. and Goetzmann, W.N., 2009.Modern portfolio theory and investment analysis. John Wiley Sons. Liu, J., 2012. Board monitoring, management contracting and earnings management: an evidence from ASX listed companies.International Journal of Economics and Finance,4(12), p.121. Motley Fool Australia. (2017).Investor-Update. [online] Available at: https://www.fool.com.au [Accessed 12 Aug. 2017]. Musiela, M. and Zariphopoulou, T., 2009. Portfolio choice under dynamic investment performance criteria.Quantitative Finance,9(2), pp.161-170. Pension fund investment in infrastructure: lessons from Australia and Canada.Browser Download This Paper. Subramaniam, N., McManus, L. and Zhang, J., 2009. Corporate governance, firm characteristics and risk management committee formation in Australian companies.Managerial Auditing Journal,24(4), pp.316-339. Vanstone, B., Hahn, T. and Finnie, G., 2012. Momentum returns to S and P/ASX 100 constituents.JASSA, (3), p.15.

International Relation Focuses on the Patriarchal Nature

Question: Discuss about the International Relation for Focuses on the Patriarchal Nature. Answer: Introduction: The study focuses on the patriarchal nature of the Indian society. Film industry of India known as Bollywood, is one of the influential industry that has showed considerable domination throughout the world. Every year Bollywood comes out with more than 100 releases. As pointed out by Roy (2016), the Bollywood industry is dominated by the male actors. In fact, it has been found that a movie that has the famous actors like Sharukh Khan, Salman Khan and others in the same league, in the lead role, often has earned more than 2 Billion INR worldwide (Indianexpress.com. 2016). This trend has been found to increase in the recent time. This paper focuses on three Bollywood movies and its patriarchal nature dominating the Indian society. Three movies that have been selected as a case study for this paper are Fan having Sharukh Khan in the lead role, Rocky Handsome with John Abraham and Great Grand Masti that is a chain sequel of the movies Masti and Grand Masti. All these movies are 2016 release and have been able to attract the attention of a number of critics for the way male characters have been portrayed in the movie. India has always been considered as a male dominating nation and females are dominated in every aspects of life. In some states like Haryana, Punjab, the sex ratio is very poor due to killing of female child (Rasul and Raney 2015). This discrimination and gender inequality has been a major topic of discussion for many researchers. Discussion: In the movie Fan, the movie portrayed the popularity of a Bollywood actor, Sharukh Khan. The movie concentrated largely on the craziness and the impact than an actor can leave on a viewer. The movie has showed that the most profitable business industry of India is actually dominated by male actors (Indianexpress.com. 2016). The next movie Great Grand Masti portrayed another situation of Indian society. It has been proclaimed by many critics that in India, women are looked into as only a major sex substance. This movie particularly portrayed same situation. It has been showed that females are looked as a sex substance and nothing more than that, which shows the dominating nature of male in the society (The Times of India 2016). The third movie, Rocky Handsome showed that it is very important for a male to be good looking and handsome and it is the only quality that attracts girls towards a man. This message also shows a negative perspective on the nature of females. As commented by Juni (2014), the nature of Bollywood industry has changed a lot since the early times. In the era of 1970s and 19780s, the industry was more male dominating. In fact, it has been found that the female actors claim that they do not get equal pay at the industry and that they have to always operate under the direction of the male counterpart. However, in recent times, there are a number of female actors who have been very successful in their career and have been turning the nature of the Bollywood industry (The Times of India 2016). Some of them are Priyanka Chopra who has gained great fame and love in Western Countries as well. Other female leads including Deepika Padukone, Kangana Ranaut who is gaining much love globally have been successful in showing women power (Indianexpress.com 2016). Keeping these factors in mind, it can be said that the age old tradition of patriarchal domination can be replaced by the advent of these actors. Apart from this, considerable appro aches have also been made to create awareness of gender equality and providing equal opportunity to females in every sector. Ethical consideration: It is important to ascertain certain ethical considerations at the time of conducting any kind of research. In case of primary research, following the ethical guidelines holds the prime importance. At the time of interviewing people, none of the respondents shall be forced to answer any query. All responses shall be gathered with complete consideration from the respondents (Creswell 2013). The identity of the respondents should be kept confidential. In case, if any kind of image or video footage is used as a supportive measure for the research, it should be gained with prior permission and concern from the participants. There should not be any symbol or logo in the survey paper that shall depict any kind of advertisement or promotion of a product or a company (Creswell 2013). In case of underpinning experts opinion, it shall be represented in a neutral way and there should not be any biasness in the illustration. In case of conducting any research at any authorized places, it is important to take prior permission and appointment. Conclusion: The implication of the study has helped to understand about the socio-culture of India. It has helped to widen the concept of International Relationship. It has been understood that Indian society is male dominated and patriarchal. In a country where people worship actors and consider them as God, anything portrayed by them is bound to create great impact on the thinking of the people. Therefore, it also falls under the responsibilities of the actor and director of the Bollywood industry to come up with such projects that improves the image of females in the society and there arises the opportunity of gender equality. If the situation of the Country is compared with that of western countries, it has to be mentioned that India lags far behind in terms of providing equality or proper opportunity to females with respect to males. However, there is no doubt that the situation has changed substantially due to increasing awareness and implementation of a number of laws to reduce patriarcha l nature of the society. The study has opened the horizon for future studies related to Cultural differences. Studies related to gender equality and changes in cultural aspect of people can be carried on. The research has great options to be diverted to other topics related to the changing scenario of World culture. References: Creswell, J.W., 2013.Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications. Indianexpress.com. 2016. [online] Available at: https://indianexpress.com/article/entertainment/bollywood/film-industry-is-male-dominated-kajol-2815021/ [Accessed 4 Sep. 2016]. Indianexpress.com. 2016. [online] Available at: https://indianexpress.com/article/entertainment/movie-review/fan-movie-review-shah-rukh-khan-stars-2754519/ [Accessed 4 Sep. 2016]. Juni, M. S. 2014. Impact of Bollywood Movies on Cultural Transformation among Pakistani Youth in University of Sargodhas Students, Sargodha.International Journal of Research,1(9), 107-200. Nelson, M.R. and Deshpande, S., 2013. The prevalence of and consumer response to foreign and domestic brand placement in Bollywood movies.Journal of Advertising,42(1), pp.1-15. Rasul, A. and Raney, A.A., 2015. Learning through entertainment: The effects of Bollywood movies on the job-seeking behavior of South Asian female.International Communication Gazette, p.1748048515601577. Roy, S., 2016. Whats in a Name?: Examining Representation of Indian Ethnicities in Bollywood Movies in the New Millennium. InCommunicating Differences(pp. 87-103). Palgrave Macmillan UK. The Times of India. 2016. Great Grand Masti Movie Box office collection report 2016 - Times of India. [online] Available at: https://timesofindia.indiatimes.com/entertainment/hindi/movie-reviews/Great-Grand-Masti/movie-review/53190702.cms?tabtype=box [Accessed 4 Sep. 2016]. The Times of India. 2016. Is Bollywood male dominated? - Times of India. [online] Available at: https://timesofindia.indiatimes.com/entertainment/hindi/bollywood/news/Is-Bollywood-male-dominated/articleshow/5701968.cms [Accessed 4 Sep. 2016].