Emerging Market of Saudi Arabia Research Proposal

rising Market of Saudi-Arabian Arabia - Research Proposal ExampleThe initiates taken by both the government and the nonpublic sector players have promoted the investment opportunity in Saudi Arabia by creating effective partnerships with the Saudi air community in effort to bring newer industries or modern technology to the country. Added emphasis is being given on attracting the infrastructure promotion and power generation but the investments made in these sectors are yet to peril the financial attractiveness in it. The existing capital investment from foreign institutions specifies three conditions (U.S. department of vocation , n.d. ),The Saudi Arabia is a rapidly growing region among Arab countries and hence the empirical evidence gained from the choice distributively fasts make on their capital structure (Leverage ratio) could be characterd to gauge their financial performance in the emerging scenario. This aspect as been considered on the reason that detailed and more exhaustive studies are require to make valid conclusions on the best capital structure for any company (Rajan & Zingales, 1995, Harris and Raviv, 1991). Further, a few researchers have alos raised an opinion of the influence of organizational characteristics on the corporate leverage level, thus fashioning this research more valid (Fan et al., 2004 Hall et al., 2004 De Jong et al., 2007). Thus, in order to substantiate the better performance of business organizations in the emerging market the criteria it is proposed to adopt the debt / equity ratio as the most appropriate parameter. Further, Saudi Arabia has a highly conservative financial market where the interest from debts is considered as illegal. Thus this creates a federal agency of very low leverage. Thus as companies have decided to undergo the process of financial formulation the present approach would be turned from the debt to be linked more to equity approach. Thus this analyse could open newer vistas of academic research in the area of financial planning for the companies and proposing better investment options. 2CONTRIBUTION TO KNOWLEDGE & STATEMENT OF SIGNIFICANCE The topic of capital structure is very important considering the authority of investment that the Saudi Arabian companies claim to have. The leverage signifies the amount of the debt securities the is issued by an establishment in fount of the capital requirement. Hence, the extend of leverage that the firm carries in its capital structure is very important to understand the exact picture of financial performance. Thus the uncertainty of future profitability would loom large as the company would have to make regular interest payments besides the principal repayment. While the increased use of debt would result in a higher value of debt to assets ratio which explains the proportionate amount of fund the firm have borrowed with respect the assets owned by it. Thus the leverage or debt/equity ratio highlights the net for a firm with positive earning while exposing the loses for a firm with negative records in earning. Thus in the research would help to