Investors look for profitability, The higher the company’s earnings and earnings per share the more attractive the stock will be to investors. If a corporations issues dividends, it looks profitable to the potential investor. If firm is profitable, they will be valued higher. A higher valued company will have higher valued shares. If the corporation issues share bonuses or warrants instead of cash payment, the value of the stock will decrease.
The driving forces behind market efficiency are: • Self-interest - as investors seek undervalued securities to buy and overvalued securities to sell. The more participants there are in a market and the more rapid the release of information, the more efficient a market is said to be. • Competition among investors - Many individuals spend their entire lives try-ing to find mispriced stocks. They gather information on companies powerful-ly incentivised by the profit motive. Therefore because of competition among investors, the market will become increasingly efficient.
Do Do large firms pay higher wages than small firms? Shiying Chen Abstract： Wage is one of the most important considerations as well as the firm size for job seekers to choose their desirable jobs. The companies providing good wages will gain more competitiveness in the labor market and attract more qualified employees with high productivity. However, due to the difference in capital and resources, the payments for the same occupations in large firms and small firms may vary and cause unbalanced labor supplies. To study the relationship between wages and firm-size, this paper combines statistics analysis with labor economic theories to explain why large firms pay higher wages than small firms and discusses the reasons that lead to the wage difference from the labor economics aspect and puts forward several suggestions to narrow the gap.
Government policy. In this context, the writer mainly illustrated how these external factors will affect business in terms of revenue/sales, profitability, and various business strategies within the organisation. 1. Supply and demand In economics, the Demand is defined as the quantity of good that people are ready to buy at various prices within some given time periods . In other words, it comprises both people willing to buy and the ability of buying.
Then, they can be exchanged or sold (actually it dépends on wich style of trade the economy is based) . The more a state’s economy puts varied products on the international market the most it will get back profit wich can be injected in different sectors in order to make them growing. The second main benefit is the growth of emerging countries,like China, India,ect… These countries are providing lots of products westren countries need sot hey can count on these exchanges in order to make benefit. The main profit is based on a cheap and fast manufacturing heavily demanded by western companies, due
Demographics are used by governments, corporations and non-government organizations to learn more about a population's characteristics for many purposes, including policy development and economic market research. Segmenting a population into demographics allows companies to assess the size of a potential market and also to see whether its products and services are reaching that company's most important consumers. Age All these factors related to demographic factors discuss about the characteristics of a particular group of people which will influence the economy of them. Aging population has become one of the key factor as well as a challenge in most countries. Underlying global population ageing is a process known as the “demographic transition” in which mortality and then fertility decline from higher to lower levels.
In The World Economy, Angus Maddison shows that on average, the amount of international trade is twice bigger than the production. So international trade is an important part of the economic activity and therefore, it has consequences on work thus on income. There are two ways to look at income inequality. In fact, we can look at the income inequality due to trade between countries, or within countries, that is to say focusing on the unequal repartition of income among workers. We can wonder whether trade has a positive or negative effect on income inequality and how that can be explained.
Consumer surplus initially was shown by the triangle AP1C. This rises to area BP2D. There is a higher level of consumer surplus because more is being bought at a higher price than before. Producer surplus relates to the welfare that businesses can achieve by supplying products to the market. Producer surplus Producer surplus is a measure of producer welfare.
INTRODUCTION Market Structure is the complete array of industry characteristics that directly affect the price/output decisions made by firms. One of the most important elements of market structure is the number and size distribution of sellers and buyers. Generally speaking, the greater the number of market participants, the more vigorous the competition. Similarly, the more even the balance of power between sellers and buyers, the more likely it is that the competitive process will yield maximum benefits. However, a link between the number of market participants and the vigour of competition does not always hold true.
Instead they cooperate with each other while competing. At this point the information flow between companies is interrupted. B. Bullwhip Effect: “The bullwhip effect is short-hand term for a dynamical phenomenon in supply chains. It refers to the tendency of the variability of order rates to increase as they pass through the echelons of a supply chain toward producers and raw material suppliers (Disney, & Lambrect, 2008). Bullwhip effect triggers several problems in supply chains such as inessential high cost increases, excess inventory levels and overload errors in production/distribution activities.