Determinants of financial conservatism in the United Kingdom and France. - Dissertation Example

Only on StudentShare

Extract of sample
Determinants of financial conservatism in the United Kingdom and France.

In the first section, which serves as a background and motivation for this investigation; the empirical studies into financial conservatism and debate on its existing measures in a summarized form has been laid out. In this chapter, a detailed literature review is presented, which elaborates on the various schools of thought regarding conservatism. The next section describes about financial distress. The co-relation between financial distress and financial conservatism is discussed. The analysis has been carried out on financial models of Ericson (as an example from the literature), Alcatel-Lucent and England and Wales Cricket Board (their financial report) as case studies and the results have been discussed to establish that the financial conservatism has its standing and strengths in corporate governance to the modern corporate world. In addition, a comparison of the term Financial Distress with the Accounting Conservatism from the literature concludes that financially conservative firms do not depend on financial distress. To carry out this comparison, a sample of small firms that defaulted on their bank debt in UK and France is taken and analyzed. The last part is devoted to the conclusion of our analysis efforts. From this study, we conclude that financial conservatism is very independent of financial distress and provides more flexibility to the firms. We find that there are several reasons to use accounting conservatism in corporate governance and that current empirical evidence indicates that conservatism has increased in the last decades. ...
Download paper

Summary

This document investigates the characteristics of firms that adopt financial conservatism as a policy in their financial practices. The role of corporate governance procedures has been specifically targeted to describe the concept, characteristics and different approaches to financial conservatism. …
Author : greeneaston

Related Essays

Attitude and Behaviour of Consumers Towards Organic Food: Comparison Between the United Kingdom and Turkey
With the aim to compare the Turkish and UK consumer attitudes and their behaviour towards organic products, this study was conducted. The findings would help the marketers and producers of organic food in Turkey particularly. Four objectives were laid out in Chapter I. Through survey questionnaires as the instrument for data collection, primary data was collected from Turkey. Data for UK was relied upon two reliable secondary sources - Keynote: Organic Food (2010) and from surveys conducted by Mintel - Organic Food UK (2010). ...
40 pages (10040 words) Essay
Marketing mix of Coca-cola in the United Kingdom and the United States
This essay will examine the marketing mix employed by Coca-Cola in two countries, the United States, where the brand was first developed and the United Kingdom. This consists of four key components, known as the 4Ps: product, price, promotion and placement. Coca-Cola has become a household name worldwide since its humble beginnings 125 years ago. Much of this growth comes from Coca-Colas innovative marketing methods and the way that the company quickly responds to changes in demand and public opinion. This can be seen in the use of Santa Claus as an icon to increase winter sales and the recent...
12 pages (3012 words) Essay
E-marketing and ICT in private hospitals in the United Kingdom
This research is an exploratory study on the capabilities of ICT by focusing on private hospitals of the UK. Large numbers of consumers are using the internet to extract health-related information. However, it is not known to what extent they effectively use the e-marketing platform of the private hospitals. Thus, with the aim to generate an in-depth view about the role of ICT in the private hospitals of UK, four objectives and two hypotheses were stated in Chapter I. After extensive literature review the theoretical framework was formed. This was a mix of qualitative and quantitative study...
80 pages (20080 words) Dissertation
The effects of TV Advertising on older consumer behaviour over 50 years in the United Kingdom
The findings of the research suggest that the segmentation of the group under question leaves somewhat to be desired given that this group are given little relevance and on the whole underrepresented within the media. In addition, it was found that it is not so much the underrepresentation that is an issue with this group, rather it is the portrayal; it is felt that older consumers are portrayed in a disparaging and derogatory manner of being ill and feeble or alternatively unrealistically attractive. This lack of synergy between the advertisers and the third agers is somewhat dangerous given...
60 pages (15060 words) Essay
United Kingdom fashion retailers' strategies of internet branding
United Kingdom fashion retailers' strategies of internet branding Introduction The United Kingdom’s fashion industry is one of its most vibrant sectors of its economy. Characteristics of consumers of this industry make it a customer and brand driven market-place. In order for brands to compete successfully in this industry they need to be market driven, meaning that they need to design their unique selling proposition according to the needs and aspirations of the customer segments they want to target (Wol?nbarger, and Gilly, 2001) Diversity of customer preferences presents attractive...
8 pages (2008 words) Dissertation
Marks & Spencer Marketing in the United Kingdom
As a result of this, the customers are naturally becoming more and more demanding in nature with respect to their specific needs for new and innovative products and services. This is in return creating a major pressure in the local markets around the world, and is eventually resulting in the way getting paved for the development of markets that are present in the new and emerging economies. The emergence of new markets in the developing economies is playing a major role in increasing the level of competition in the marketplaces all over the world. In an attempt to attain a significant level of...
8 pages (2008 words) Research Paper
Investigation of financial conservatism in the United Kingdom and China
The financial data from selected conservative firms is analyzed empirically to prove the hypothesis that economic and financial crises and the structure of financial policies based upon conservative idioms are mutually inclusive. TABLE OF CONTENTS ABSTRACT 2 CHAPTER ONE: INTRODUCTION 4 1.1 Background of the Study 5 1.1.1 The United Kingdom….6 1.1.2 China….….….9 1.2 Conservative Financial Theory….12 1.2.1 Pecking Order Theory 13 1.2.1 Agency Theory vs.
28 pages (7028 words) Dissertation
Got a tricky question? Receive an answer from students like you! Try us!