15 Jun, 2008, 1022 hrs IST, PTI
MUMBAI: Unperturbed by the global financial turmoils, Asian and Australian companies see a higher growth in the coming months and plans to declare more dividends than their global counterparts, a survey said.
"Companies in this region expect their primary industry to grow and revenues to increase over the next 12 months...They are significantly more likely to return profits to shareholders through dividends or share buybacks than their global counterparts," Financial services major, American Express, said in its survey here.
Besides, Asian companies would invest more to increase their market reach while many of them have changed their investment priorities in view of the uncertain global markets, it said.
Inflationary pressures, high interest rates and fluctuating exchange rates continue to be 'urgent concerns' for the domestic companies apart from the rising cost of capital and unfamiliar political systems, the survey said.
"In India as elsewhere, rising energy costs are an urgent concern. While companies plans to be conservative in their spending,they are also looking at to enhance investments in growth areas," American Express Commercial Card's Head, Firdaus Mogul said.
Also, stringent regulatory regimes and government policies have posed big threats to the domestic companies who want to go global, it said.
Companies in Asia and Australia are also likely to increase the purchases of goods and services over the next one year, especially in technology and distribution arenas, the survey said.
Nearly 35 per cent of the respondents from the region believed that they should have invested more in products and services development during the last economic dowturn.
However, 40 per cent of the respondents were of the view that they should have invested more in the market expansion activities, as compared to 34 per cent globally.
"They (companies in Asia and Australia) are pursuing investments that will allow them to acquire more customers in new and better ways. This would be executed with a view to preserve the bottom line while promoting the top-line growth," Mogul said.
The survey was conducted among 370 senior finance executives in US, Canada, Mexico, Europe, Asia and Australia and comprised Chief Financial Officers and Directors of firms having an annual revenue of above USD 500 million.
American Express is a leading player in global payments and issues local-currency commercial cards in 40 countries and international dollar corporate cards in an additional hundred countries, the company said.
"Companies in this region expect their primary industry to grow and revenues to increase over the next 12 months...They are significantly more likely to return profits to shareholders through dividends or share buybacks than their global counterparts," Financial services major, American Express, said in its survey here.
Besides, Asian companies would invest more to increase their market reach while many of them have changed their investment priorities in view of the uncertain global markets, it said.
Inflationary pressures, high interest rates and fluctuating exchange rates continue to be 'urgent concerns' for the domestic companies apart from the rising cost of capital and unfamiliar political systems, the survey said.
"In India as elsewhere, rising energy costs are an urgent concern. While companies plans to be conservative in their spending,they are also looking at to enhance investments in growth areas," American Express Commercial Card's Head, Firdaus Mogul said.
Also, stringent regulatory regimes and government policies have posed big threats to the domestic companies who want to go global, it said.
Companies in Asia and Australia are also likely to increase the purchases of goods and services over the next one year, especially in technology and distribution arenas, the survey said.
Nearly 35 per cent of the respondents from the region believed that they should have invested more in products and services development during the last economic dowturn.
However, 40 per cent of the respondents were of the view that they should have invested more in the market expansion activities, as compared to 34 per cent globally.
"They (companies in Asia and Australia) are pursuing investments that will allow them to acquire more customers in new and better ways. This would be executed with a view to preserve the bottom line while promoting the top-line growth," Mogul said.
The survey was conducted among 370 senior finance executives in US, Canada, Mexico, Europe, Asia and Australia and comprised Chief Financial Officers and Directors of firms having an annual revenue of above USD 500 million.
American Express is a leading player in global payments and issues local-currency commercial cards in 40 countries and international dollar corporate cards in an additional hundred countries, the company said.
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