Internal Code: MAS7147
Finance Assignment Help:
Task:
1. Overview(1) This part of course work accounts for 30% of total marks in C31RF(2) This course work is expected to be individual work(3) Submission format: each student submits one hard copy of report. Student registration numbers and word counts should be on the cover page (No student name please).(4) Date of data available: 22 nd February 2018 (Thursday)(5) Deadline for submission: 8 pm on 15 th March 2018 (Thursday)(6) Lab Support: @ Lab 2 at 16:30 on 25 th February 2018 (Sunday)
2. BackgroundResearch and Developing spending (R&D) is vital for a firm’s long-term value creation. However, it may take the cash away from short period and lower the short term accounting profit. Therefore, senior managers may reluctant to spend on R&D. Literature (e.g. Baker and Mueller, 2002, “CEO Characteristics and Firm R&D Spending; Baysinger et al, 1991, "Effects of Board and Ownership Structure on Corporate R&D Strategy") suggests that CEO’s ownership and board structure may have some important impacts on a firm’s R&D spending. High level of CEO ownership may align the interests between CEO and shareholders, making CEO more likely to create long-term value. Good board structure (e.g. high proportion of independent directors in the board) may monitor CEOs more effectively, making CEO less likely to do short-sighted behaviours.
In this course work, you are expected to empirically examine the relation between a firm’s R&D spending with CEO ownership and board structure. Can UK CEO ownership and board structure explain a firm’s R&D spending?
Literature also suggests that some firm characteristics, like firm size, capital structure, profitability, growth prospect and firm risks have impacts on a firm’s R&D spend. Therefore, we also should control those factors when we do this research.
3. DataYour data file is prepared in advance. You can download the data file (Excel) from VISION. It is from part of Kabir, Li and Veld-Merkoulova (2013), “Executive Compensation and the Cost of Debt”, Journal of Banking & Finance. Since the research purpose for Kabir, Li and Veld-Merkoulova (2013) is not to investigate R&D spending, the sample is not randomly selected from general population. It only contains FTSE ALL firms (All publicly listed firms in the main board of London Stock Exchange) which had straight bonds in pound sterling outstanding from 2003-2011.
4. Reports Requirement
(1) Establish your hypothesis.You need to give prediction in hypothesis based on literature (You should find more related literature to support your hypothesis). For example, H1: There is a positive (or negative) relation between XXX and XXX
(2) Briefly describe the research method you are intend to employ Including what is the model (formula); what is dependent variable; what are independent variables and control variables.
(3) Demonstrate empirical results Employ proper model(s) you learn from this course. Results should be demonstrated in well-organized table(s). Do not copy the original format of tables from E-views or Stata!!! Look at papers how they present tables!!
(4) Briefly discuss your results and give the conclusion(s)
(5) Briefly discuss the limits and potential problems of this research
(6) Word limit: No more than 1200 words in total, excluding tables and references.
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- Assignment status: Resolved by our Writing Team
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