University Finance: Capital Market Research of Macquarie Bank

This report presents a capital market research analysis of Macquarie Bank, focusing on events and financial decisions that influence its share price. The report examines changes in director's interests in securities, updates on issued capital and convertible securities, and the impact of general meetings concerning capital returns and dividends. It also explores the implications of key announcements such as the appointment of a new Managing Director and Chief Executive Officer, final share buyback notices, dividend distributions, and board appointments. Furthermore, the report analyzes the effects of the annual report release and ceasing to be a substantial holder on the bank's market position and investor sentiment. The research utilizes various financial data points and market activities to assess Macquarie Bank's performance and outlook.

Running head: CAPITAL MARKET RESEARCH OF MACQUIRIE BANK
CAPITAL MARKET RESEARCH OF MACQUIRIE BANK
Name of Student
Name of University
Author’s Note

1CAPITAL MARKET RESEARCH OF MACQUIRIE BANK
EXECUTIVE SUMMARY
In this report it can be stated that the capital market research needed to be used for the
development of the share price. In this report it is seen that the capital market research on
Macquarie Bank has been analysed on the basis of the recent activities of the bank.

2CAPITAL MARKET RESEARCH OF MACQUIRIE BANK
TABLE OF CONTENTS
INTRODUCTION...............................................................................................................3
Change of Director’s Interest in Securities..........................................................................4
Issued Ordinary Capital and Convertible Securities Update...............................................4
General Meeting and Conformation of Capital Return and Dividend.................................5
Confirmation of Appointment of Managing Director and Chief Executive Officer...........5
Final Share Buy Back Notice..............................................................................................6
Dividend Distribution..........................................................................................................6
Jillian Broadbent Joins Macquarie Group and Macquarie Bank Boards.............................7
Annual Report Release........................................................................................................7
Ceasing to be the Substantial Holder...................................................................................8
REFRENCE.........................................................................................................................9

3CAPITAL MARKET RESEARCH OF MACQUIRIE BANK
INTRODUCTION
The proper utilizing the accounting information is one of the major importance of
the accounting profession because it will help to addressing the issues which are crucial for the
development of the investors which are needed for the accounting information which are used for
the purpose needed for the decision making which are used for the investment. On the basis of
this respect Capital Market Research needed for the exploration of the investors for the
development of the investors. The capital market research ahs been conducted on Macquuire
Bank which is listed with the Australian Exchange Board.

4CAPITAL MARKET RESEARCH OF MACQUIRIE BANK
Change of Director’s Interest in Securities
As per the director’s interests which are changed due to the change in case of the securities has
direct impact on the securities as it will have number of impact on the securities of the company.
It will also state that the interest which is being used for the development of the indirect interests
on the securities will lead to change in the share price of the bank. In this case it occurs on the
date of the 18 December 2018. On this above mentioned date it was stated that director’s interest
on the securities have changed. The MQG shares which are done when the 102 MQG shares are
being acquired by the director from the trust (Hodge and Greve 2018). This has some of the
considerable effect on the share price of the bank. The MQG shares are being allocated to the
Macquarie Group Limited Dividend to the Reinvestment Plan. This has considerable amount of
effect on the share price as the bank are entering into the new projects or trying to enhance the
existing projects. The shareholders of the bank will get interested as it will decide the financial
structure of the bank.
Issued Ordinary Capital and Convertible Securities Update
In this case the some of the capital securities are being issued on 30 November 2018
where it can be stated that there are number of the ordinary shares of MGL which remained at
340,382,738. In the month of November 2018, Macquarie Group Employee Retained Equity
Plan has been implemented for the bank. There are 6271 unlisted Deferred Shares Units which
were granted. These shares are issued and have effect on the share price of the bank. It can also
be stated that this number of shares are being uploaded for the development of the share piece.
As per the share price which is concerned on the basis of the share price will have some effect on
the bank as well.

5CAPITAL MARKET RESEARCH OF MACQUIRIE BANK
General Meeting and Conformation of Capital Return and Dividend
In the November 2018, the general meeting has been used for the capital return which is
stated up to $2040 million. This was passed by majority requisite which are needed for the
general meeting. This was determined at the poll in the meeting. It is also staed about the
dividend payment made by bank to the shareholder which amounts to $264 million. This news is
directly related with the change in the share price which leads to the increase of the share price in
the market as this kind of news which shows the great effect on the shareholders and also it
attracts new investors for the bank. This demand of the share will increase the share price. There
are many effects which are also can be seen in the share market as the share market will increase
the hold of the share price. These will also affects the share price of the bank in future.
Confirmation of Appointment of Managing Director and Chief Executive Officer
This has dated on the 1 December 2018 which is stated that the news of the appointment
of the new Managing Director and also the Chief Executive Officer. This has stated that the
shareholder meeting is to be needed and discussed in the general meeting for the choosing of the
managing director and also the chief executive officer. This will determine the share price in the
market in the later stage as the share price will see the change. This will also see the organization
restructuring as the new plan will be brought by the new managing director and also by the new
chief executive officer which will help the bank to gain more profit. This will affect the
company’s profit as the share price of the bank will increase rise high. This also change sthe
place of the bank’s position in the Australian Stock Exchange. This will also help the bank ton
attract the new shareholders which will help the bank to increase the share price of the bank.

6CAPITAL MARKET RESEARCH OF MACQUIRIE BANK
Final Share Buy Back Notice
As per the noticed which caws mentioned by the bank that then bank did not have went for
purchasing the buyback of shares as per the Corporation Act of Australia (Hodge and Greve
2018). It can be stated that the bank has went for not buying for the buyback of shares which
have serious effects on the share price of the bank. It can be stated that the share price will have
some serious effects as well as the market place of the share of the bank also varies from time to
time. This share price has drtastically changed due to the change as this information are very
important which are being viewed in the financial statement of the bank and it can also be seen
that the share price of the will vary a lot. The share price will also change due to the market of
the shares. The bank did not want to buy the share because the bank did not want to lose the
liquidity the capital which will help the share price changes a lot. These also mean the company
is in no position to liquidity the capital. As per the market condition it can be stated that the
company has some tight capital with them which will definitely decrease the capital. The market
share price will- go low because this will have ill effects on the share price as the shareholder
will feel unsafe.
Dividend Distribution
As per this report it can be stated that the bank has provided the dividend to its
shareholders who states a good image in the market. It is also states the dividend distribution of
the company which will create a great image in the market. This image of the bank in the market
will increase the demand of the shares of the bank and hence so the price of the shares is also
being increased (Iannotta 2014). This share price will change and hence it will also shows the
different kinds of share price.

7CAPITAL MARKET RESEARCH OF MACQUIRIE BANK
Jillian Broadbent Joins Macquarie Group and Macquarie Bank Boards
In this review it is seen that the involvement of the Jillian Broadbent has made extensive
investment in the bank for the development of the bank and it also help the bank to move in the
going concern. This has done on the date of 2 December 2018. It is expected that since Jillian
Broadbent have increased the investment made the bank to acquire more projects and use the
amount for the development (Kim, O’Connor and Han 2015). This has an extensive effect on the
share price of the bank as the capital of the bank are being strengthen which will provide the
bank an opportunity for entering in a new projects which will help the bank to move on further
for the development of the company’s structure. This has made the bank to grow higher and
hence this will also increase the amount of share price and the level of the share will also
increase as the demand of the share increases a lot. This made the bank to prosper more in future.
Annual Report Release
This annual report is being released on this date. It is seen that the annual report will
represent the financial statement of the bank in the annual report. This annual report of the bank
will be increased the demand for the share price of decrease the demand the share price of the
bank. The demand of the share price of the bank will totally depend on the financial statement of
the bank which are represented by the bank in its annual report of the bank. This will also states
about the financial position of the bank and also explains the going concern of the bank
(Cummings and Durrani 2016). The manager’s director’s report and also the report of the auditor
explain many thing about the bank and its position of the bank in the market.

8CAPITAL MARKET RESEARCH OF MACQUIRIE BANK
Ceasing to be the Substantial Holder
The decision to stop becoming the substantial holder leads to the great effect on the share
price of the bank. This will also help the bank to leave the share in the market means the supply
of the share will increase a lot and hence the price of the share will decrease as the there will
ample amount of share in the market and hence the buyer of the share price also decreases. If the
demand of the share increases in future then the share price of the bank will increase. .

9CAPITAL MARKET RESEARCH OF MACQUIRIE BANK
REFRENCE
Cummings, J.R. and Durrani, K.J., 2016. Effect of the Basel Accord capital requirements on the
loan-loss provisioning practices of Australian banks. Journal of Banking & Finance, 67, pp.23-
36.
Cummings, J.R. and Durrani, K.J., 2018. Regulatory capital and internal capital targets: An
examination of the Australian banking industry.
Dumay, J. and Cai, L., 2015. Using content analysis as a research methodology for investigating
intellectual capital disclosure: a critique. Journal of Intellectual Capital, 16(1), pp.121-155.
Frino, A., Mollica, V. and Webb, R.I., 2014. The impact of co‐location of securities exchanges'
and traders' computer servers on market liquidity. Journal of Futures Markets, 34(1), pp.20-33.
Gerace, D., Chew, C., Whittaker, C. and Mazzola, P., 2014. Stock market manipulation on the
Hong Kong stock exchange. Australasian Accounting, Business and Finance Journal, 8(4),
pp.105-140.
Hodge, G. and Greve, C., 2018. Contemporary public–private partnership: Towards a global
research agenda. Financial accountability & management, 34(1), pp.3-16.
Iannotta, G., 2014. Investment banking. Springer.
Kim, H.M., O’Connor, K.B. and Han, S.S., 2015. The spatial characteristics of global property
investment in Seoul: A case study of the office market. Progress in Planning, 97, pp.1-42.
Moradi‐Motlagh, A. and Saleh, A.S., 2014. Re‐examining the technical efficiency of Australian
banks: a Bootstrap DEA Approach. Australian Economic Papers, 53(1-2), pp.112-128.

10CAPITAL MARKET RESEARCH OF MACQUIRIE BANK
Potocki, T. and Swist, T., 2015. Empirical test of the strong form efficiency of the Warsaw stock
exchange: the analysis of WIG 20 index shares. South-Eastern Europe Journal of
Economics, 10(2).