StudentShare solutions
Triangle menu

Investigation of financial conservatism in the United Kingdom and China - Dissertation Example

Extract of sample
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. Stewardship 13 1.3 Financial Distress Theory 15 CHAPTER TWO LITERATURE REVIEW 17 2.1 Economic Theory 17 2.2 Empirical 20 CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 21 3.1 Theoretical Framework 21 3.2 Hypothesis 22 3.3Method 23 3.4Data Sample 23 3.5Results 26 3.6 Interpretation of Results 28 CHAPTER FOUR CONCLUSION AND RECOMMENDATIONS 29 REFERENCES……………………………………………………………………………....30 APPENDICES…………….………...………………………………………………………33 CHAPTER ONE INTRODUCTION In considering the business world, it is worth noting that its environment of microeconomic activities lies within an unvarying state of transformation. This means therefore that the particular indicators which served as tremendous financial assessment tools in a previous study can bear different meanings thereafter, hence many factors die and are born so as to maintain limits of time variations (Ahmed, A. S., B. K. Billings, R. M. Morton, and M., 2009). According to Easterby-Smith, an agency faces challenges in ; organizing and coordinating staffs, addressing diverse and unforeseen problems in ways that assure the continuity of any course of action, manoeuvring successfully between cultural, financial, and technical impediments, and lastly recovering an organization from fragments (Mark Easterby-Smith,2012).Financial distress is the reality that agencies cannot accomplish these achievements but rather struggle to meet financial obligations in a timely manner. Prospective macroeconomic productivity cannot take into account the unexpected determinants such as supply and demand or environment, all of which give a represent the highs and lows of life itself. The variables provide a distinct outline that can be used in comparing the actual from the prospective (Balkrishna, H., Coulton, J.J. and Taylor, S.L., 2007). For this reason, financially conservative agencies tend to hold more cash reserves and minimize leverage. Today, interpretations of Finance and Accounting that are used to make important decisions are based upon different philosophies of macroeconomic applications. For the purposes of this study, applications of the theories of Financial Conservatism and Financial Distress used in Business Finance are analyzed for firms in the United Kingdom (UK) and in China. The empirical analysis consists of the financials of 100 companies from the fiscal years 2007 and 2009 (Ball, R., Bushman, R.M., and Vasvari, F.P., 2008a). 1.1 Background of the Study A universal principle of Business is to minimize possible risk and loss. Agencies adopt different structures based on personal beliefs and ...Show more

Summary

Investigation of Financial Conservatism in the United Kingdom and China Student and exam number; Queen Mary School of Economics and Finance June 2013 7514 Words Professor Leone Leonida ABSTRACT This paper will investigate whether agency financial policies based upon conservatism are significantly influenced by instances of economic financial distress…
Author : nonadouglas
Investigation of financial conservatism in the United Kingdom and China essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the dissertation on your topic
"Investigation of financial conservatism in the United Kingdom and China"
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
Determinants of financial conservatism in the United Kingdom and France
This study indicates that financial conservatism is critical to set an effective corporate governance system in any firm. The cases study of ECB, Alcatel-Lucent, and Ericsson presented here support this evidence, although the test sample is narrow. We have provided evidence that financial conservatism is independent of financial distress.
46 pages (11500 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
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation