Study of Business Companies in Colombo Stock Exchange

Study of Business Companies in Colombo Stock Exchange Capital structure is most significant discipline of companys 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 reserves 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 firms 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 concentration 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. 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 market 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 firms 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 outp ut 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 on firms performance. Findings appe ar 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 firms, 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-inves tors 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 firms 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 firms 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 firms financial performance. H0: à ¢Ã¢â€š ¬Ã…“there is a negative relationship between the capital structure and firms 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 firms financial performance(-0.114). 9.0 Suggestions and Recommendations The following suggestions are recommended to increase the Companys 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 firms financial performance, because it indicates the area which decision should be taken. Motivating the investors to help to achieve the high level of firms 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 companys performance. So, government should consider the economic growth to control the inflation.

The Choices We Make

Poverty in the United States today has many faces. There’s the pleading face of a middle-aged man on a city street holding up a sign that says â€Å"Hungry, Need Help. † There’s the anxious face of a young child in a schoolroom somewhere, whose only real meal today will be a free school lunch. There’s the sad face of a single mother who doesn’t have enough money to buy clothes for her children. And there’s the frustrated face of a young man working at a minimum-wage job who can't afford to pay his rent. The sad thing is everyone knows someone like this. What are these people to do? What lengths should they go to be happy? Many times a person’s virtue is challenged. Especially when they are forced to choose between a basic human need or a particular ethical indiscretion. So the question is â€Å"What effects do poverty and the absence of opportunity have on individuals’ senses of virtue? † For one, a person who is poor may choose to steal to obtain a basic need such as food, shelter, or safety. Second, a person religion may be challenged when poor or in an extreme circumstance that may require a choice between following their way of believing or living. And finally, parent may do things and make sacrifices to make sure that their children are safe and cared for. Society looks upon people who commit crimes as bad seeds in a community. But, has anyone ever really looked at the person and wondered â€Å"what could make this individual so desperate that they would risk everything to steal $50 bucks out of a cash register, or a loaf of bread from a quick stop. † Don’t get me wrong. Not everyone that steals has a good reason, nor is it right. But if you looked deep into the life of the individual, do you see them? Really see them. Most of the time these people are poor, come from broken homes and sometimes do what they have to too survive. They live in poverty stricken â€Å"ghettos† or in poor communities that have no resources to help them. What are they to do? Ask yourself â€Å"Would you steal to feed yourself or your family? † It happens every day in every city. Most of these people have low paying jobs and struggle to make ends meet. They do what they can and ask for help just to be turned away. Where is the problem? Is it the person themselves? No! It’s the society around them. People do what they must to survive no matter what. It’s a basic instinct that kicks in and takes over. â€Å"Religion (even if â€Å"primitive) is generally assumed to be in some sense moral. † (Murdoch 740) People often take religion out of context and use it for their own good or the good of a specific cause. Some examples are Hitler and the Holocaust, or abortion. Hitler used god as a weapon wipe out the Jews. People that are for or against abortion and the laws surrounding it look to it as a moral and ethical dilemma. Let’s for a moment touch on this one; Let’s say that you are a pregnant teenager that had been brutally raped. You have a choice keep the baby, and the memory of the terrible act or abort the â€Å"fetus†. The trouble is your religion is in the way. What are you to do? Do you stick to your religion and the fear of what may happen in the next life or do you do what you feel would be a way out of a bad situation? This is where religion gets in the way of many dilemmas for people today. They have to make a choice. Keep it or don’t. For some the choice may come easy depending on how strongly you feel about your particular morality or virtue. Many people say â€Å"God never gives us more than we can handle. Is this true? Would you be able to handle this type of situation? Again that depends on the individual and their state of mind. In the end it all comes down to what they think and what the consequences of their action may be. They idea will be different for everyone, no matter what the circumstance. We cannot judge a person’s views if we do not understand them. The third and final question is How far would a parent go to keep their children safe and healthy? Many parents would say â€Å"I would give my life to keep my child safe†. This is not a fact that is being argued. What is being argued is if the parent would risk their ethical stand to protect a child. Parent’s today work so hard to make sure that their children have food and clothing and shelter. But what about the parent’s who do all of this and still are unable to provide for their families? What are the choices for them? They may steal, lie, cheat and sacrifice their own happiness to provide the same happiness to their families. Is this something that society should look upon in disgust? Or should society take a stand and help? For many years I have helped in an organization that does just this. We provide clothing food and gifts to underprivileged children every year at Christmas time to make sure that all are happy and joyous like all the other children whose parents can provide. Is this unfair to the happy child who has everything? One can argue that poor people deserve more, but in reality all parent rich or poor would do anything to ensure that their children are cared for no matter what the cost or consequence may be. â€Å"Duty may be easily performed without strain or reflection but may also prompt the well known experience of the frustration of desire together with a sense of necessity to act† (Murdoch 734) Each human has the free will and the right to choose the course of their own actions. When an individual takes responsibility for their conduct, they are ultimately acting as a rational being. Realizing that they have the ability to freely choose their actions and that no one else can force them to do something. With the freedom of choice also comes the responsibility for that decision. When an individual takes responsibility she has reached their highest state of reasoning: she has realized that not only is she free to make decisions, but also that their decisions have outcomes. By applying their free will, they are ultimately saying, â€Å"I choose to take this action, and I choose take responsibility for the consequence. † Morals depend on humans exercising their freedom of choice and acknowledging that their choices have significance. Reason allows us not to just behave instinctively or randomly, but to realize that our actions will have an outcome and to act accordingly to the end we wish to achieve. When an individual knows the result of their actions and willingly chooses to carry that behavior out, the individual freely accepts the consequences and thus takes responsibility for that end result. With all that being said, a person who is poor or pushed to a make a decision may or may not turn to religion and ethics. People are like robots and are programmed from childhood to believe or act in certain ways. They are sometimes torn by the morality of a decision and the virtues in which they believe. These choices are not easy and are not always the right ones but we are humans and we make mistakes. This is how we learn to survive and make things better for the next era. We can only take it one step at a time.

Importance of the Humanities Essay

There has been much debate about the importance and benefits of funding the humanities in school. Many people are of the view that the study of the humanities is a waste of time and that more money and effort should be expended on teaching the STEM disciplines (science, technology, engineering and mathematics). On the other hand there is the school of thought which express the importance of maintaining the humanities. Others like Christina Paxson in the article â€Å"The Economic Case for Saving the Humanities† have posited the view that there be a â€Å"cross pollination between the sciences and the humanities†. I am of the view that the humanities are essential and should remain an integral part of the education system. Like Paxson I agree that individuals should be exposed to both the humanities and the STEM disciplines. The humanities are basically the study of the different ways in which people from different parts of the world and during different periods of history have processed and documented the human experience. It is the humanities that we have used to make sense of the world in which we live and also to make records of our experiences. Humans have made sense of the world in which they live through philosophy, literature, religion, art, music, history and language. Having records of human experiences allows individuals to feel connected to those who were before us and also our contemporaries. I strongly believe that the study of humanities is important because not only does it allow us to understand the world in which we live but it also gives us insight into everything and brings clarity to our future. By doing the humanities individuals learn to think creatively and critically. They know how to ask questions and to reason. According to Paxson we need to create well rounded individuals who will be experts in any situation. She argues that the country does not need experts in one subject but a civil society in which everyone can provide meaningful insight into any topic of conversation. As Paxson points out we are living in a global world. As such it is important that we have knowledge of other cultures in order to negotiate our way in this complex village. The United States for example have to form relationships with other countries and it is important that the powers that be know who they are dealing with. Paxson cites the example of the importance of having experts in Arabic and the history of Islam after the September 11 attacks. Through their knowledge the US gained insight into what motivated these individuals and how to possibly respond to them. Knowledge of these people would not have been possible without the study of humanities. The humanities provide us with a number of intellectual and emotional skills that we need to have in order to operate in our society. These are not acquired naturally but rather through the study of a number of humanities. The humanities helped me a lot in my last job at a bank. It strengthened my communication skills both in written and spoken word. I was able to communicate with internal customers, coworkers, easily and without being socially awkward. I was also able to challenge and make recommendations to policies in a respectful manner. I dealt with external customers promptly and efficiently due to the fact that I was able to understand their transactions and queries. In the first part of the video â€Å"Why Look at Art† a lady says, â€Å"I think it’s important [that] people look at art, because we live in a visual world. † This is true; we definitely live in a visual world. Look at it this way, if it was not for art, computers and other electronic devices could only be used by programmers as they were just a series of codes and commands. The introduction of the GUI, Graphic User Interface, solved this problem. The GUI had images that everyone could relate and easy to use. If it was not for art these devices would not be as successful as they are today and would not form the backbone to our means of communication. Throughout this paper I have sought to highlight the importance of humanities as a course of study. Humanities encompasses a wide range of areas that can be applied to our daily existence and enhance our interpersonal interactions, it is therefore important that the humanities remain an integral part of one’s educational experience. This is basically to ensure that one becomes wellrounded, socially accepted individuals.

Determinants Of A College Basketball Team - 3849 Words

Determinants of a college basketball team’s revenue 08/15/2014 Nils Weddig, Siena College, USA Abstract This paper shows empirical evidence of how a men’s college basketball program’s revenue is affected by several determinants. Results are being taken out of sample data from the past eight basketball seasons. The most important determinants considering a college basketball team’s revenue include advertising, ticket pricing, performance during the previous season as well as the past three games, performance of a local rival’s program in the previous season, quality of opponents faced, time of the event, and the Gross State Product. This article evaluates the listed determinants on the basis of a regression analysis to provide†¦show more content†¦College basketball is one of the most popular college sports to attend and to watch. The evaluated college is compared to other Division 1 programs a smaller college. However, their basketball team is still very competitive and has appeared in eleven national tournaments, six of which have been at the NCAA tournament. Over the past decade the program has seen a lot of success but they have also battled many hardships. Even though the success of the team has changed throughout the years the one thing that has never changed is the support from the students, alumni, faculty, and the community. At every home game the arena is filled with students, alumni, faculty, as well as the local community that attend to watch great basketball and support their favorite team. In this research article we are going to analyze how the program’s revenue is affected by different determinants. Collecting data of past ticket sales, pricing of the tickets, as well as the attendance for each game will enable us to determine the amount of revenue generated from this program. Some determinants that we are going to consider are the advertisement expenses for each game, the opponent’s team quality, the performance of the crosstown rival’s basketball program, whether the games are being held during the week or on weekends as well as the time of the game, and finally a demographic factor, the Gross State