Earnings Per Share EPS In The Sultanate Of Oman Research Proposal Help Write a report about “Earnings Per Share (Eps) In The Sultanate Of Oman” For your i

Earnings Per Share EPS In The Sultanate Of Oman Research Proposal Help Write a report about “Earnings Per Share (Eps) In The Sultanate Of Oman”

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*** Two attachments has been uploaded (Research proposal & chapter 1,2,3,5) CHAPTER ONE
1.INTRODUCTION
1.1Background of the study
1.2.Statment of the problem
1.3.The objective of the study
1.4.The significance of the study
1.5. Scope of the study
1.6 Definition of Terms
CHAPATURE TWO
2.LITERATURE REVIEW
2.1 Introduction
2.2 Review of Literature Summary
2.3 Research Gap and contribution of the Present Study
CHAPTER THREE
3.METHODOLOGY
3.1 Introduction
3.2 Reserch Question
3.3 Hypotheses
3.4 Research Methodology
3.5 population and sample
3.6 source of Data and Data collection
3.7 Tools used for Data Analysis
3.8Ethical considerations
3.9 summary of Methodology
CHAPTER FIVE
5.CONCLUSION AND RECOMMENDATION
5.1 Introduction
5.2 conclusion
5.3 Recommendations
5.4 Summary
References
EPS in Oman 1
EARNINGS PER SHARE (EPS) IN THE SULTANATE OF OMAN
EPS in Oman 2
Investment in the Sultanate of Oman
Investment in Oman has been critical to the economic development and growth of the
sultanate. The sultanate has embarked into practices of encouraging investment in its territory
over the last four decades and has consequently transferred the benefits to the development of
infrastructure and the economy in general. In so doing, the sultanate has been able to achieve
sustainable development (Magd and McCoy, 2014, p. 1639). The sultanate has developed
facilities and infrastructures vital for facilitating both national and foreign investment in Oman.
The geographical location, as well as the availability of international and regional sea lanes
together with the existence and functionality of the Omani ports, have been critical in enhancing
both local and international trade in the region. The stability of the economy and the robust
infrastructure and qualified human resources have been crucial in promoting investments in the
Sultanate of Oman. The sultanate has also put in place regulations vital for open economic
direction and to increase the rates of foreign investments in the Sultanate (AlMaimani and Johari,
2015, p. 680). The Sultanate of Oman is on the continuous search for increased investment and
has entered into various trading agreements to support trade and investment in its territories.
The incentive offered by the Sultanate of Oman for both foreign and local investors
include the competitive pricing of services, tax exemption for the first five years upon
establishment of business, individual exemption from taxes, freedom of capital and profit
transfer as well as the ability to exchange foreign currency with fixed exchange rates (Mellahi et
al., 2003, p 435). The investors also have full foreign property rights and availability and
excellent services for running of operations in the Sultanate. While several advantages exist for
carrying out business and investment activities in Oman, it is critical that investors determine the
returns for investments to adequately estimate the benefits from their investments.
EPS in Oman 3
Earnings per Share
Earnings per share (EPS) refers to the portion of a firm’s profits allocated for distribution
to each outstanding equity share. The measure is critical as it indicates the profitability of a
company and allows investors to carry put comparisons in coming up with the most profitable
companies among the one he/she wants to invest in. The ratio gives a relative earning power of
various firms and is critical for investors supporting their decision making with regards to
investments. The determination of the EPS of companies over some time is vital in determining
the trends of growth or decline in the earning power of a firm and informs investor decisions
regarding such companies (Hunjra et al., 2014, p. 112). It is worth noting that investors assess
the EPS of potential companies for investment and would be interested in companies with
growth in EPS as this is a sign of profitability.
It is worth noting the EPS measure is a critical metric for investors as it critically assesses
the profitability of firms. It is the only measure that isolates net income to determine what
shareholders gain from investing in a firm. Consistency in EPS is an indication that shareholders
are consistently receiving a share of a company’s profits. Additionally, the measure indicates that
the company is committed to creating values for its shareholders. EPS is also an indicator of
dividend payout for investors accruing from the profits of the company (Kama, 2009, p. 38).
Investors like the steady incomes associated with the dividend payouts from investments in
various firms and companies. They also associate EPS with positive and robust growth for the
company.
An association of EPS to investment is critical to the determination of investments
options and growth in the Sultanate of Oman. It is essential to note that investors associate the
EPS in Oman 4
profitability and stability of a company to an increase in EPS. The determination of the overall
EPS in the Sultanate of Oman is critical in establishing the shareholder and investor options in
choosing to invest in other countries in the Middle East.
Statement of the Problem
Investment is a critical element towards the economic growth and development of a
country and the economy as a whole. Earnings per share is one of the vital measures that
determine the profitability of shareholder investments in the company as a result of its ability to
identify the actual net profit attributable to the company’s shareholders as well as the possibility
of dividends payout as a result of firm profitability. The need for this research is to determine the
average earnings per share in the Sultanate of Oma as well as determine whether the EPS
element influences individual and corporate investments in the Sultanate.
Review of Literature
The existing literature shows a strong link between EPS and the prices of shares as well
as the value of firms. It has also been determined that individual investors make investment
decisions based on the current EPS of companies. EPS is considered the single most popular
measure used in the evaluation of financial performance for firms (Machuga, Pfeiffer, and
Verma, 2002, p. 54). It is the most critical element reported to outside stakeholders such as
investors among others. As such, EPS has been used by investors to judge the performance of
various firms in the market before making different investment decisions (Pushpa, and
Sumangala, 2012, p. 12). EPS has also been associated with strategic decisions reached by the
management of firms regarding wealth maximization for the benefit of stakeholders.
EPS and EPS growth has been considered as a critical measure for share valuation
methodology. The obsessions to EPS by investors is attributed to the fact that the crucial test
EPS in Oman 5
summarizes the earnings generated for shareholders as well as impacting the shareholders’ view
to both the management and the investors (Ghosh, Gu, and Jain, 2005, p. 41). The growth in EPS is
critical to younger companies with future expectations of growth, and it has been established that
investors assess this measure to estimate the possibility of extension for the firm essential for an
enhanced return on their investments.
The study on the relationship between earning and expected returns indicated that both
earnings and dividends are critical in forecasting the returns from investments.It is also vital to
note that studies have emphasized the importance of profits in investment decisions as a result of
the correlation between this element and the business conditions if firms in the market (Easton et
al., 2002, p. 660). While EPS has been associated with the important business condition as such
as profitability and firm, value, the current study seeks to establish the connection between the
EPS and the investment decisions made by investors in the Sultanate of Oman. While the
sultanate offers a conducive environment for growth and development of firms, investors have
based the choice of investment options on the stability and growth of EPS.
The objective of the Study
The current research seeks to achieve the following purposes:
•
Determine the relationship between the share prices of firms and their recorded earnings
per share
•
Establish whether earnings per share trends for firms affect their market performance and
their ability to obtain finances in the market through equity investments.
•
Evaluate the growth and stability of EPS for significant firms in the Sultanate of Oman as
listed in the Muscat securities market.
•
Determine if EPS is the only factor that boosts the levels of investments in the Sultanate
EPS in Oman 6
•
Evaluate other factors that significantly affect the performance of firms and investments
The significance of the Study
The importance of the current study is to adequately determine the impact of EPS on
investment decisions for potential shareholders in the Sultanate of Oman. It is critical to note that
other factors influence investment decisions. The research, therefore, seeks to establish the
relationship between EPS and investments vital for firms to enhance their performance and thus
increase their chances of increased expenditures. The research is also critical in supporting
investors to make the most optimal decisions concerning the placement of their money in
multiple and competing investment options.
Research Questions
It is critical that the research answers various questions in a bid to determine the
relationship between investment and the EPS of multiple companies in the Sultanate of Oman as
listed in the country’s securities exchange market. Such questions include:
I.
Is there any relationship between the increases in investment in a company to its Earnings
per share ratio?
II.
Do companies the availability of information regarding the EPS posted by firms affect
the operations of buying and selling of shares in the Muscat Securities Market?
III.
Are investors well aware of the EPS ratios of major firms in the Sultanate of Oman?
IV.
Do they apply this information in making investment decisions involving the acquisition
of shares in the companies listed in Muscat Securities exchange?
Hypothesis
EPS in Oman 7
The study seeks to test the following hypothesis:
Earnings per share bear significant impact on the levels of investments in firms in the Sultanate
of Oman
The relationship between the dependent and the independent variable is an affirmative showing
that the stability and growth of EPS positively affect investments in firms listed in Muscat
securities.
Methodology
The research will take into consideration companies listed in the Muscat Securities
exchange. The companies will be selected based on the availability of earnings per share
information to support the study into the research topic. The research takes into account the
secondary data available from the securities exchange as well as the annual reports of the firms
(Johnson and Onwuegbuzie, 2004, p. 19). The data obtained from this study will be analyzed
through the use of various analysis tools to determine the existence of the relationship as well as
the direction of the existing connection. The research will adopt a mixed structure design to
consider the existence of relationships as well as a quantitative design to evaluate the extent of
such bonds.
Population and Sampling Design
The number of companies listed in the Muscat Securities market is about 150 firms. The
research seeks to sample at least 20 firms to determine the relationship between EPS and
investments in the selected firms. The study will apply non- probability sampling techniques to
ensure the selection of firms with the availability of investor information as well as records of
investments over five years. The data obtained will be analyzed, and a decision reached on
EPS in Oman 8
whether the results obtained could be applied to the general population in the consulate as well as
other firms in the Middle East.
Sources of Data and Data collection
The data for this research will be obtained from secondary sources (Heaton, 2008, p36).
Information will be obtained from the Muscat securities exchange regarding the prices of shares
as well as the reviling EPS for the firm’s selected for this research. Additionally, information
regarding investment information will be obtained from the chosen company’s annual reports as
published from year to year. Other additional information will be obtained from the investment
office of the sultanate regarding the trends of investments in the sultanate and specifically on the
companies selected for this study. It is critical that reliability and consistency of data are obtained
to ensure the reliability of the research reports as well as the application of the research outcomes
to other general population for the research.
Tools for Data Analysis
Various methods of data analysis will be applied to this research. The use of the mixed
research design method calls for the need for multiple data analysis methods such as descriptive
statistics including both the inferential and descriptive analysis. The study will apply such tools
of review as the SPSS data analysis method as well as Excel for the recording and interpretation
of data to arrive at the most useful results linking the two variables under study.
EPS in Oman 9
References
AlMaimani, J. and Johari, F.B., 2015. Enhancing Active Participation of SMEs and Islamic
Banks towards Economic Diversification in Oman. Procedia Economics and
Finance, 31, pp.677-688.
Easton, P., Taylor, G., Shroff, P. and Sougiannis, T., 2002. Using forecasts of earnings to
simultaneously estimate growth and the rate of return on equity investment. Journal of
Accounting Research, 40(3), pp.657-676.
Ghosh, A., Gu, Z. and Jain, P.C., 2005. Sustained earnings and revenue growth, earnings quality,
and earnings response coefficients. Review of accounting studies, 10(1), pp.33-57.
Heaton, J., 2008. Secondary analysis of qualitative data: An overview. Historical Social
Research/Historische Sozialforschung, pp.33-45.
Hunjra, A.I., Ijaz, M., Chani, D., Irfan, M. and Mustafa, U., 2014. Impact of Dividend Policy,
Earning per Share, Return on Equity, Profit after Tax on Stock Prices International
Journal of Economics and Empirical Research, 2(3), pp.109-115.
Johnson, R.B. and Onwuegbuzie, A.J., 2004. Mixed methods research: A research paradigm
whose time has come. Educational researcher, 33(7), pp.14-26.
EPS in Oman 10
Kama, I., 2009. On the market reaction to revenue and earnings surprises. Journal of Business
Finance & Accounting, 36(1?2), pp.31-50.
Machuga, S.M., Pfeiffer, R.J. and Verma, K., 2002. Economic value added, future accounting
earnings, and financial analysts’ earnings per share forecasts. Review of Quantitative
Finance and Accounting, 18(1), pp.59-73.
Magd, H.A. and McCoy, M.P., 2014. Entrepreneurship in Oman: Paving the way for a
Sustainable Future. Procedia Economics and Finance, 15, pp.1632-1640.
Mellahi, K., Guermat, C., Frynas, J.G. and Al?Bortmani, H., 2003. Motives for foreign direct
investment in Oman. Thunderbird International Business Review, 45(4), pp.431-446.
Pushpa Bhatt, P. and Sumangala, J.K., 2012. Impact of Earnings per share on Market Value of an
equity share: An Empirical study in Indian Capital Market. Journal of Finance,
Accounting & Management, 3(2).

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