Assistant Accountant at Mefic Capital company - Assignment Example

? Co-operative Education Topic Approval Form Learning Goal 3.3: Developing your skills as a critical enquirer and problem solver This should be submitted by email and signed off by your Academic Supervisor by Friday 20 December at 9am (your local time) Student Name: Saleem Alanazi Student ID#: 0827451 Academic Supervisor Dr. Olga Dodd BBus Major(s): Finance Coop Placement Organisation: MEFIC Capital Coop Role: Assistant Accountant Background: In your Final Report you will be required to critically analyse, evaluate, and make recommendations on a chosen topic or issue from your discipline perspective,that could be applied to your role, your CPO or industry sector. This topic should further develop your knowledge acquired in LG2 and your skills as a critical enquirer and problem solver. In your Learning Framework you listed your initial ideas on your area of interest from your discipline perspective. This is an opportunity for you to refine your topic and receive formative feedback from your Academic Supervisor. Your topic can then be developed further in your Progress Reports and completed in your Final Report. Your CPO, role or its industry should provide context or background for your research. You should avoid disclosing any confidential information. You must only draw on secondary research i.e. relevant academic literature for your research and to support your discussion. 1. You must not disclose any confidential information, complete any primary research and will maintain the confidentiality of any persons/organisations referred to in your research. 2. The work must not have previously been submitted by yourself or another person. 3. All researched information has been acknowledged by citing and referencing in APA 6thed. Proposal for Topic: Provide a title for your topic or issue and describe it, providing some detail. Discuss how this relates to your major (discipline), your role, your organisation and/or industry. Identify and outline the supporting information you have gathered from research undertaken including academic literature from your major. Cite and reference appropriately and add a reference list at the end. You will need to write at least 300-500 words to give a sufficient outline for formative feedback. Capital Structure and Corporate Governance Mechanisms in Saudi Arabia I: INTRODUCTION 1.1 Background In this study the capital structure and the mechanism of corporate governance in Saudi Arabia would be discussed. The motive behind choosing Saudi Arabia is that I did my internship from MEFIC Capital Saudi Arabia, so it would be an added advantage for me in investigating the financial environment of the country. Moreover, my major is in Finance, which is why I have chosen to focus and explore the capital structure and governance mechanism. Discussion on corporate governance and capital structure has always been a challenge for the academic researchers in finance and accounting. 1.2 Research Objective The objective of this research study has been developed keeping in mind the issues to be considered for the study, learning outcomes and stream of study. 1. To identify diverse capital structure in Saudi Arabia and their implications 2. To identify the relationship between diverse capital structure and corporate governance in the firms in Saudi Arabia. 1.3 Research Question What is the relationship between the capital structure of firms in Saudi Arabia with the external and internal corporate governance? II: LITERATURE REVIEW In this research paper, the discussion would be related to the capital structure decisions of the firms in Saudi Arabia and its association to the external and internal corporate governance system, which is generally considered to be one of the primary drivers in decisions related to capital structures. Various researches prior to this suggest that the capital structure is based on corporate governance decisions. Theories suggest that the size of the firm and profitability is negatively related to the debt equity ratio of the firm. These findings are in line with the agency theory, transaction cost theory or pecking order theory. It was found that the there is a negative relationship between debt equity ratio and market to book ration in case of assets, which also reveals that it is conflicting with the agency theory. On the other hand, in European countries tangibility has a positive relationship with the choice of capital structure and it is consistent with the agency theory. III: RESEARCH METHODOLOGY 3.1 Research Method This study aims at discussing and analysing the capital structure with regards to corporate governance in Saudi Arabia. A quantitative analysis would be done to identify the relationship between capital structure and corporate governance, so as to identify an accurate association between these two major aspects in financial environment of Saudi Arabia. For this purpose a multiple regression analysis would be done for this study. A sample of 5-8 firms in Saudi Arabia in the securities market would be considered to conduct the study. 3.2 Data Collection In this research study primary data would be required to conduct the multiple regression analysis, which would be collected through a structured questionnaire survey that would be consisting of closed ended question. The questionnaire would be distributed among the managers in the financial department of the chosen sample firms in Saudi Arabia. 3.4 Ethical Consideration This research study would be utilising human subjects for the questionnaire survey, so attention would be paid to circumvent discrimination based on race, religion or status and personal question would be avoided. Read More