Financial Structure and Performance: A Case Study of SMI Investco

This research proposal outlines a study on the effect of financial structure on the financial performance of Singapore Myanmar Investco (SMI). It aims to identify the association between short-term debt, long-term debt, retained earnings, and financial performance. The proposal includes a literature review of capital structure theories like Modigliani and Miller (MM) theory, Pecking order theory, Static tradeoff theory, agency theory, and Trade-off theory. A case study approach is selected, employing qualitative data collection methods, focusing on secondary data sources such as textbooks, articles, and online resources to gather relevant information.

Running head: RESEARCH PROPOSAL
“A study on the effect of financial structure on the financial performance of firms: A case study of
Singapore Myanmar Investco”

RESEARCH PROPOSAL 2
Table of Contents
1. Background............................................................................................................ 3
2. Project topic........................................................................................................... 3
3. Purpose of the research.............................................................................................. 4
4. Literature review..................................................................................................... 4
5. Research method..................................................................................................... 5
References................................................................................................................ 6

RESEARCH PROPOSAL 3
1. Background
Singapore Myanmar Investco Limited (SMI) deals as an investment and management firm.
This firm emphasizes travel and fashion retail, auto and construction facilities, food and
beverage facility, as well as, logistic field. SMI also organizes a cold chain network along
with, franchisee for restaurant products. Along with this, SMI deals with customers at a
global level (Singapore Myanmar Investco, 2020).
2. Project topic
Financing decisions have relied on a given financial structure as well as, suboptimal
financing decisions could direct for the failure of a firm. A significant issue for business
managers, scholars, as well as, investors between other stakeholders are whether there is an
existence of optimal financial structure. It could increase the wealth of stakeholders because
the core object of companies can except the providers of public utility. Hence, the quality of
financing decisions is measured for addressing the impact of such decisions on the
performance of the company together with, specifically, its effect on financial performance
(Sarkar and Choudhary, 2018).
To develop the impact and clear knowledge regarding relationship among financial structure
and financial performance, different research has been performed by different investigators
all over the globe specifically on financial structure. For instance, in analysing impact of
financial structure on profitability of Singaporean service as well as, manufacturing
companies (Kim, Lin, and Chen, 2016).
A study shows that there is an association between the financial structure of a firm and
financial performance have yielded mixed outcomes. In the context of Singapore Myanmar
Investco Limited (SMI), available investigations have not tried for splitting equity so that, it
can raise the contribution of retained earnings along with, share capital to financial
performance distinctly (Ha, et. al., 2019).

RESEARCH PROPOSAL 4
Worse off is the lack of recognized researches understand known for the investigator which
compares financial structure as well as financial performance relation of organization in East
Africa. It is for these causes that this research was performed. The key purpose of this
research is to identify the association among financial structure as well as financial
performance of firm concerning the Singapore Myanmar Investco (Mohammad Bujang, and
Abd Hakim, 2019).
3. Purpose of the research
 To examine the relation between short term debt and financial performance of the
organizations listed Singapore Myanmar Investco.
 To address the relation between long term debt and financial performance of the
company listed Singapore Myanmar Investco.
 To evaluate the relationship between retained earnings as well as financial
performance of organization listed Singapore Myanmar Investco.
4. Literature review
In the current period, the company must comprehend finance importance and improving the
business process. Besides, the capital structure has been determined by different studies. In
this, it is illustrated that these explanations are explicit as well as have the same meaning.
The organization’s capital structure consists of its debt level relative to equity on the balance
sheet. It is amounts as well as kinds of capital that an organization has evaluated of capital
which an organization has to find to, and what financial tools have been practiced for
conducting growth initiatives named as study as well as development and acquiring
possessions (Ha, et. al., 2019).
Capital structure theories

RESEARCH PROPOSAL 5
Certain theories are considered by the organization named as Modigliani and miller (mm)
theory, Pecking order theory, Static tradeoff theory, agency theory, and Trade-off theory
(Mohammad Bujang, and Abd Hakim, 2019).
5. Research method
Research approach
The research approach provides a path to investigator to choose a feasible method and getting
reliable data with respect to investigation issue. In this investigation, researcher has applied a
case study approach that permits them to researcher for getting conceptual data with respect
to investigation issue (Fletcher, 2017).
Data collection method
The data gathering tool can permit the investigator to getting reliable data regarding research
concern. The secondary information will be gathered by focusing on different sources such as
textbooks, articles, online as well as the offline source that assist to get data about
investigation issue. This technique can allow meeting the research purpose (Glesne, 2016).
Research design
In this research, investigator will imply qualitative data over the quantitative method. It is
because this tool will allow the researcher to obtain theoretical data concerning investigation
issue. Moreover, qualitative information can be gathered by considered existing sources
named as books, magazines, and online and offline sources can be considered (Mohajan,
2018).

RESEARCH PROPOSAL 6
References
Fletcher, A.J., 2017. Applying critical realism in qualitative research: methodology meets
method. International journal of social research methodology, 20(2), pp.181-194.
Glesne, C., 2016. Becoming qualitative researchers: An introduction. Pearson. One Lake
Street, Upper Saddle River, New Jersey 07458.
Ha, T.V., Dang, N.H., Tran, M.D., Van Vu, T.T. and Trung, Q., 2019. Determinants
influencing financial performance of listed firms: Quantile regression approach. Asian
Economic and Financial Review, 9(1), pp.78-90.
Kim, D.H., Lin, S.C. and Chen, T.C., 2016. Financial structure, firm size, and industry
growth. International Review of Economics & Finance, 41, pp.23-39.
Mohajan, H.K., 2018. Qualitative research methodology in social sciences and related
subjects. Journal of Economic Development, Environment, and People, 7(1), pp.23-48.
Mohammad, H.S., Bujang, I. and Abd Hakim, T., 2019. Capital Structure and Financial
Performance of Malaysian Construction Firms. Asian Economic and Financial Review, 9(12),
p.1306.
Sarkar, R. and Choudhary, R.P., 2018. Impact of Capital Structure on Financial Performance:
A Study of Select Automobile Companies in India. MUDRA: Journal of Finance and
Accounting, 5(2), pp.70-84.
Singapore Myanmar Investco. 2020. About us. [Online]. Available at: http://www.sin-
mi.com/ (Accessed: 14 March 2020).