How to investigate old studies

Review of literature means reviewing research studies or other relevant propositions in the related area of the study so that all the past studies, their conclusions and deficiencies may be known and further research can be conducted. Since completely new and original problems are rare it is necessary to show how the problem under investigation relates to previous research works done under similar topic, however a previous study not be exactly replicated. It is believed that the review of literature is literature which is helpful to show the needs of the research work and to justify the work. It tries to clear the conceptual thought and bank related terms. So this chapter has been organized through the study of different books; articles published in journals and master’s level thesis as below:

•        Conceptual Framework
•         Review of Empirical Studies    
•         Research Gap

Conceptual Framework

Every investor invests their money to buy share of firms with the hope of sharing profit earned by firm since they want to receive maximum returns on their investment. It depends upon management policy that how much total profit to distribute as dividend and how much to retain in the business. But this is fact that all the profit made by firms actually belong to stockholders. Whether profit are distributed in the firm of dividend or reinvested in the business, benefits go to shareholders directly or indirectly.