Project Report on Financial Research Methods
Added on 2020-05-01
47 Pages8727 Words185 Views
Running Head: Financial Research Methods 1Project Report: Financial Research Methods
Financial Research Methods 2Executive summaryThis research paper has been prepared to analyze the financial research methods toidentify and determine the financial position and the performance of a company through thehelp of various financial tools. This research paper has been prepared over the Vodafone plcto analyze and investigate the performance of the company. In this research paper, literaturereview has been done over the financial research methods and further, the study has beendone over a company to justify the literature study and analyze that how the tools andmethods of financial research help a company to make better decisions about theperformance, strategy planning, process and various other terms. In this research paper, firstlythe study has been done over various articles, books and the newspaper to do literature studyand further, the methodology have been performed over the Vodafone plc to identify andfound that how would the financial research tools could be conducted to analyze theperformance and the position of a company. this research paper would offer the knowledgeabout the financial research methods and their use to the readers.
Financial Research Methods 3Contents1.0.....................................................................................................................................51.1.................................................................................................................................51.2.................................................................................................................................61.3.................................................................................................................................61.4.................................................................................................................................61.5.................................................................................................................................62.0LITERATURE REVIEW........................................................................................72.1 Introduction.............................................................................................................72.2 Overview of Vodafone...........................................................................................82.3 Firm performance...................................................................................................82.4 Non financial performance.....................................................................................92.5 Financial performance..........................................................................................102.5.1 Profitability performance...................................................................................102.5.2 Liquidity performance.......................................................................................112.5.3 Efficiency performance.....................................................................................122.6 Ratio analysis........................................................................................................123.0METHODOLOGY................................................................................................133.1...............................................................................................................................133.2...............................................................................................................................143.3Variables Definition and Measurement.................................................................153.4...............................................................................................................................163.5...............................................................................................................................173.6...............................................................................................................................173.7...............................................................................................................................17
Financial Research Methods 44.0RESULTS AND DISCUSSION OF RESULTS...................................................185.0CONCLUSION......................................................................................................21REFERENCE.................................................................................................................23APPENDIX.....................................................................................................................26
Financial Research Methods 51.0INTRODUCTION1.1Background:Financial research methods are used by the companies and the investors to analyze and investigate over the performance of a company in terms of the finance. Financial methods must be performed over the company while taking any decision about the performance and the future changes in the company. Various tools are available to conduct a study and evaluation program over the financial data of the company. So that a good strategicplan could be prepared and the planning could be implemented over the company to achieve the goals of the company (Fulin, 2011).Further, it has been found that it is requisite for the analyst, investors and the top levelmanagement and financial management of a company to analyze and investigate the financialstatement of the company to make a better decision about the performance and position of thecompany (Deegan, 2013). These techniques help the company to make a better decision so that the goals could be achieved timely. Further, it has been investigated that it becomes mandatory for the finance managers to identify the problems and conduct a research over the performance to reach over a conclusion and ratifies the error in the company in financial terms.For this research paper, Vodafone plc has been taken into the consideration. Vodafoneplc is a telecommunication company which is mainly based in the British market. Headquarter of the company is in London. This company has been awarded by 5th revenue generating company. This is the 8th largest company in the London stock exchange. Various competitors of the company are INMARSAT, AVANTI COMMUNICATIONS GROUP PLC, MONITISE PLC, GAMMA COMMUNICATIONS PLC and PEOPLES OPERATOR PLC. Further, for this research paper, literature review has been done over the financial research methods and further, the study has been done over a company to justify the literaturestudy and analyze that how the tools and methods of financial research help a company to make better decisions about the performance, strategy planning, process and various other terms. In this research paper, firstly the study has been done over various articles, books and the newspaper to do literature study and further, the methodology have been performed over
Financial Research Methods 6the Vodafone plc to identify and found that how would the financial research tools could be conducted to analyze the performance and the position of a company (Lacalle, 2017).1.2Research aim and objectives:This research paper has been prepared to analyze the various financial methods whichcould be used by the analysts and the companies to evaluate the performance and the positionof the company. The main aim and the objective of this research paper are to identify the financial performance and the financial position of Vodafone plc in the market. The main objective of this research paper is to depict the investors and analyst about the position of Vodafone plc so that a better decision could be made by the investors regarding the investment in the organization or divest the amount from the organization. 1.3Rationale:For this research paper, literature study has been done so that, the importance of financial research could be analyzed. And further, it could also be found that what the methods to analyze the financial research are. More, it has been found that how is the positionof the Vodafone plc in the industry. The financial statement of last 10 years of the company has been analyzed and various method such as horizontal analysis, vertical analysis and ratio analysis have been done to investigate the financial performance, stability performance and profitability position. This study and literature review has been conducted to make a better research paper about the performance and the position of the company. 1.4Scope and Limitations:Further, scope and limitations of the research paper has been evaluated. The main scope of this research paper is the assistance which could be used by the investors and analysts to make a better decision about investment in the organization or divest the amount from the organization. This would help the investors to identify the changes in the organization from last 10 years. Further, the limitation of this research paper is various assumptions and various external aspects which have not been considered while preparing this research paper. More, the time was limited while conducting this research paper. This hasimpacted over the main conclusion and recommendation of this research paper. 1.5Project Outline:
Financial Research Methods 7In this research paper, firstly, introduction of the research paper and the organization has been done. Further, literature review study has been done over the financial research methods and further, the study has been done over a company to justify the literature study and analyze that how the tools and methods of financial research help a company to make better decisions about the performance, strategy planning, process and various other terms Further, the methodology have been performed over the Vodafone plc to identify and found that how would the financial research tools could be conducted to analyze the performance and the position of a company2.0LITERATURE REVIEW2.1 Introduction:Elmuti & Kathawala, (2001) has depicted into his study that financial research methodsare the best way to analyze the changes and the performance of the company. Further, it hasbeen added by Du and Girma, (2009) that the techniques and methods of financial researchare quite wider and it depends over the financial analyst or the organization to choose the bestmethod to perform the study. De Haan and Amtenbrink, (2011) express that if the beststrategy would be chose than it becomes easy for the organization to analyze the changes andthe performance of the company on the basis of those changes.Further, Deegan (2013) express that financial research methods age quite wider andthus it becomes difficult for an organization to choose the best method according to theirnature and operations. If the best strategic plan and method would be chose by the companythan it would be perfect for the betterment and the analysis of the company (Davies andCrawford, 2011). More, it has been found through these studies that an organization mustlook over the competitor financial research methods and must opt for the financial researchmethod accordingly (Brigham and Michael, 2013).Though, Ahmed, Neel and Wang, (2013) has depicted that analyzing the financial performance of a company is not easy, various assumptions are required to be taken before considering and taking a decision about the position and performance of the company. More, financial research method only takes the concern of the financial data which affect the conclusion of the research paper. Further, Bertomeu, Darrough and Xue, (2017) depicted that an analyst and researcher must take the concern of the non financial data as well before
Financial Research Methods 8making a decision about financial performance, position, profitability and stability of a company.If an organization fails into analyzing the best financial method then it becomes verytypical for the organization to reach the goals and make a better decision about theperformance and the operations of the company (Brealey, Myers and Marcus, 2007). More, ithas been added by the Brigham and Ehrhardt, (2013) that all the financial research methodsare their own way, all the methods express about the different point of the organization suchas the study of ratio analysis would allow the manager to make a decision about the currentperformance of the company in context of various financial figures. Kaplan and Atkinson,(2015) depict that various studies are available for the financial research such as ratioanalysis, vertical analysis, horizontal analysis, dividend growth model, capital asset pricingmethod, efficient market hypothesis etc. 2.2 Overview of Vodafone:Vodafone group plc is an international organization which has been started in Britishmarket. Currently, the head office of the company is in London. Mainly, the services of thiscomapny are provided into the Asian countries, Europe, Africa and Oceania. According to acurrent study, in mobile industry, this company has fallen into the fifth rank in terms of therevenue and the performance of the company. This company has a connection in around 26countries and around 50 partners are hold by this company to manage and administer thefunctions and the operations in a well manner. Further, it has been found that the revenue ofthe company is enhancing rapidly which depict about the great performance of the company.This company has listed itself in the London stock exchange and it recognized as FTSE 100Company. This company has a market capitalization of around £ 52.5 billion (Home, 2017). Further, through the study over the financial statement and the performance of the company, it has been found that the financial research methods are used by the Vodafone plc and the investors to analyze and investigate over the performance of the organization in termsof the finance. Ratio analysis study and horizontal analysis have been perform over the company for making a better decision about the performance and the future changes in the company. Various tools have also been analyzed to conduct a study and evaluation program over the financial data of the Vodafone plc to make a better decision about the performance of the company. 2.3 Firm performance:
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