Business Research Project Assignment

Added on - 23 Mar 2020

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Running Head: BUSINESS RESEARCH PROJECTBusiness Research ProjectName of the StudentName of the UniversityAuthor Note
1BUSINESS RESEARCH PROJECTExecutive SummaryThe main aim of this research is to give details on a professional project aimed at findingbusiness performance of top 50 Australian companies. The research question is to what extent isthe profit of the firm associated with remuneration of the directors’ data that has been collectedfrom the annual reports of the top 50 Australian companies. This has been analyzed byevaluating the correlation between the independent directors and profitability. The result is veryclear that on all the three years, remuneration earned by the directors of the company do notdepend on the performance of the company.
2BUSINESS RESEARCH PROJECTTable of Contents1.0 Introduction................................................................................................................................41.1 Problem Statement.................................................................................................................41.2 Research Aims and Research Questions................................................................................42.0 Literature Review......................................................................................................................52.1 Introduction............................................................................................................................51.3.2 Agency Theory...............................................................................................................51.3.3 Resource Dependency Theory........................................................................................61.3.4 Corporate Law................................................................................................................71.3.5 Board diversity of expertise:...........................................................................................71.3.6 Board heterogeneity and fit for purpose:........................................................................81.3.7 Gap in literature:.............................................................................................................81.3.8 Summary:........................................................................................................................93.0 Research Methodology............................................................................................................103.1 Data Collection....................................................................................................................103.2 Data Analysis.......................................................................................................................103.2.1 Descriptive Analysis.....................................................................................................113.2.2 Remuneration and Business Performance....................................................................11Data Analysis.................................................................................................................................11
3BUSINESS RESEARCH PROJECTData Study.................................................................................................................................11Correlation Analysis..................................................................................................................14Conclusion.....................................................................................................................................17References......................................................................................................................................18
4BUSINESS RESEARCH PROJECT1.0 IntroductionThe most ideal career path for a student of Master of Professional Accounting studentwould be to become a professional accountant. This research is about the study of the businessperformances of top 50 Australian companies. The project background, research aims andobjectives and the literature review will constitute the first part. In the second part, the researchmethodology, findings, discussions and conclusions will be explained.1.1 Problem StatementFro the last few decades, general public get more interests in the way of companiesperforming business and affecting the environment. This is mainly because different people havedifferent types of interests. Some are interested in shopping. So they will be concerned about theretail stores and companies and would like to know about their profits or losses. Some people areinto investments. They will be interested in knowing the status of a financial company and judgefrom there the appropriate company to choose. Similarly, people with different interests areconcerned about different types of industries. Thus, this research has been conducted.1.2 Research Aims and Research QuestionsThe main aim of this research is to study the business performance of top 50 AustralianCompanies over three financial years 2014, 2015 and 2016. Thus, the following researchquestions can be framed to analyze the aim of this research:To what extent is the profit of the firm associated to the remuneration of the directors?
5BUSINESS RESEARCH PROJECT2.0 Literature Review2.1 IntroductionThis section of the study aims to focus on different theories that contains the informationon the relationship between the remuneration earned by the directors and the profits of thecompanies. The basic theories that have been included in this section are the theory of theagencies and the dependency theory of the resources. Moreover, discussion of the corporate lawhas also been done to establish the relationship between the variablesdirectors’ remuneration andprofits of the companies and also by discussing the board diversity of expertise. Further, the gapin the literature will be identified along with the limitations of this study.1.3.2 Agency TheoryThe major work that this board performs is exercising the control and the provision whichis related to the observation of management. This role which the board performs has beenevaluated via the theory of the agency. When ownership and control of the assets are separated,the problem related to the agents arises. Moreover, the shareholders cannot influence any controlover the management practically. It is not possible for the shareholders to do so. A major role hasbeen played by the board to oversee the management and protect the shareholders’ rights alongwith equitable treatments(Terjesen, Couto & Francisco, 2016). This conflict can give rise tosome moral risks and invalid information. As a result of this conflict, the directors are able tocollect a lot more information. With the help of this information collected, they try to gain thetrust of the principal and this might result in the fact that that this act will go for opposing theprincipal (Low, Roberts & Whiting, 2015).
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