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

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. ...Show more

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
Determinants of financial conservatism in the United Kingdom and France essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the dissertation on your topic
"Determinants of financial conservatism in the United Kingdom and France"
with a personal 20% discount.
Grab the best paper

Related Essays

Commodity Trading in the United Kingdom
This research study examines how two of the largest commodity traders in the world, Vitol and Glencore International, conduct their commodity trading activities through the commodity exchanges in the United Kingdom and in its OTC market.
52 pages (13000 words) Dissertation
Impact of Corporate Governance in Curtailing Financial Risks in Organizations in the United Kingdom
The research analyses the impact and influence of corporate governance on the social, political and economic environment of the United Kingdom; investigates the reasons of financial risks and role of corporate governance in curtailing it; evaluates the contribution of corporate governance in offering transparency and systematic approach to deal with the social and business environment.
10 pages (2500 words) Dissertation
Exploring Inclusion in a United Kingdom School
The main questions that guided this study: How is inclusion implemented in a UK school? What are the views regarding the blending of mainstream children and children with special needs in their classes? Are there any differences in treatment and the given educational programmes for mainstream children and children with special needs within the inclusive classroom?
55 pages (13750 words) Dissertation
Sustainable Housing in United Kingdom
Through the research it has been the attempt to focus on the issue of sustainable housing. The paper gives some examples of Eco friendly constructions in United Kingdom. On the basis of this discussion the paper concludes with the view that the well-being of future generation should be taken into consideration by the construction industry.
42 pages (10500 words) Dissertation
United Kingdom fashion retailers' strategies of internet branding
British Fashion Council (2011) has said that the value of online sales of fashion industry has reached up to 4.3 billion pounds in the year 2011. This industry is characterized as having a diverse customer base (consumers have different needs and wants), and brands that are targeting different customer segments.
8 pages (2000 words) Dissertation
Determinants of financial conservatism: evidence from low leverage and cash rich UK and German firms
The theoretical framework will analyze the theoretical applications of the model. The data used to construct the theoretical analysis presented in this discourse will be presented in this section and the empirical framework will present an analysis of the empirical data available regarding the implications for the model.
24 pages (6000 words) Dissertation
Anorexia Nervosa in United Kingdom
According to the National Institute of Mental Health (2011) and Edwards (2011), eating disorders initially start with consumption of small or large quantity of food that spirals out of control. Later on, this practice will turn out to be a cycle of obsession; however, majority of patients recovers fully with proper help and management.
6 pages (1500 words) Dissertation
Investigation of financial conservatism in the United Kingdom and China
The Agency problem is discussed as it correlates with corporate financial policy. Specific theories of financially conservative policies are defined and compared to gain insight into possible relationships between economic financial crises and the strategies or firms that are considered financially conservative.
28 pages (7000 words) Dissertation
Financial Conservatism. Determinants of cash and leverage
Mikkelson and Partch provide that financially conservative firms are those that continually hold huge cash balances to finance their financial activities, meaning that they hardly rely on borrowed capital to finance their investment opportunities. A firm means the one that holds more than 25% of its assets in cash.
18 pages (4500 words) Dissertation
Financial Conservatism. Determinants of cash and leverage conservatism in USA firms
In face of the credit crunch, having adequate cash reserves for debt financing as well as a manageable level of debt is sensible. However, the general sense about cash holdings and leverage is that a lot of big firms are holding cash and liabilities to levels that are deemed suboptimal by standard capital structure theories.
20 pages (5000 words) Dissertation
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT