Comprehensive Report: Contemporary Factors Affecting ASX Share Prices

This report provides a financial analysis of Macquarie Group Limited, an ASX corporation, examining its share price performance over the past two years. It investigates contemporary factors impacting share prices, including the ex-dividend effect, investor sentiment, and interest rates. The analysis draws from financial reports, media releases, and market data to assess the factors behind the share price decline in 2019 and fluctuations over the period. The report also explores the influence of management decisions and market dynamics on the company's stock valuation, offering insights into the complexities of the Australian stock market and recommendations for enhancing shareholder value.

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CONTEMPORARY ISSUES IN ACCOUNTING
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Table of Contents
Executive summary.............................................................................................................................3
Contemporary Issues in Accounting..................................................................................................4
Introduction.........................................................................................................................................4
The share price fall versus ex dividend............................................................................................5
The sentiments of the buyers and investors...................................................................................5
Interest Rates....................................................................................................................................6
Management.....................................................................................................................................7
Conclusion and recommendation.......................................................................................................7
References.............................................................................................................................................8
Appendices............................................................................................................................................9
List of tables......................................................................................................................................9
Table 1.1............................................................................................................................................9

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Executive summary
The share price of ASX corporates has been a critical issue as they are volatile and
almost unpredictable. The Macquarie Group limited is a service provider in banking and
financial services, alongside this is the top-rated activity in economy which is the stock
market. the group offers research and analysis of stock and offers over 2000 shares to its
clients not an exception has in that and has had different dimensions of outcomes when it
comes to its worth and the share price.
The group has had a vibrant course of action and activity schedule over the last two
years which have seen the group have increased share prices. The share price of the group in
the ASX has declined in the 2019 because of a number of factors ranging from economic to
political factors. The past two years equally have a number of factors responsible for their
steady rise in the market price

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Contemporary Issues in Accounting
Introduction
The purpose of this paper is to provide a pragmatic financial analysis to an ASX
corporation, determine the share price over the past two years and highlight the contemporary
factors ranging from ideology to dynamic and technological approaches by the stakeholders
of different corporations, that are responsible for the current situation in and the position of
the share prices. General and peculiar accounting has had different outcomes in the present
time and presents the future, recent financial crisis globally has equally had the outcomes but
they have affected the present time by either increasing the income or dropping it. In stock
corporations, different factors are responsible of the position of the current share prices. In
ASX corporations, over the past two years, there are a wide range of factors that have
affected the position of the current share price.
The ASX corporation for assessment in this essay will be the Macquarie Group
limited which is an Australian multinational independent investment bank, and also a
financial service offer institution. For many investors, they have been a lot of expectant
about the benefits of their shares but the risks in any investment are ultimately a usual
encounter and therefore they are some of the contemporary issues that will be highlighted in
this paper. This corporation conducts research on over 2,000 stocks and markets on behalf of
the clients on many products with equities, foreign exchange and commodities, derivatives,
and fixed income among the products.

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The Macquarie Group Limited, according to their media release for the FY2019, their
result is expected to be lower for the FY2020, due to a number of reasons. As an ASX
corporation, the stock price for this company has been steadily increasing but it displays
some weakness.
There are several factors that have increased the share price of Macquarie group
limited to increase for the past two years. The Macquarie group limited share price has
continued to fall. By May 2019, the share price of the group had experienced a sharp decline
of which investors wished to have sold their shares in early April. They were completely
down by 11 %, the financial year FY 2019, report depicted the group shares have a fall and
the main reason why the shares are down this time were the dividends of the group.
Reasons for the position of the share price
The share price fall versus ex dividend
As always it is a culture of the stock market that the ex-dividend date, shareholders
who make purchases are automatic beneficiaries of the next dividend payment (Scott and
O'Brien 2003). All through this period there are times when the shareholders are requested to
pay a premium and the share price increases as almost every shareholder willingly pays a
premium to receive their dividends. There comes a time of which the shares trade ex-
dividend, the share price falls as most shareholders are never willing to pay a premium. The
share price for the company tends to fall. Macquarie pays a dividend of $3.60 and they
experience the ex-dividend share decline as their shareholders are never willing to pay any
premium. The financial year FY20 is expected to be slower as the decline is still viable.
According to the current accounting and accounting dynamics, investors are interest
in immediate returns and therefore they only pay a premium almost immediately before the
ex-dividend date. As it is seen the table 1.1, there are indicators that the dividend price for the
year 2017 and 2018 was steadily increasing an following the in-depth analysis, the share

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price before the period of dividend is too high and declines after the date. The demand of the
people who wants to buy stock increases the share price if its high.
The sentiments of the buyers and investors
The stock price of a company changes if the people are sure that the company, or the
corporation is worth a try or an investment. Ali, Liu and Su (2016) urgue that Many people
are aware that benefits come hand in hand with risks and therefore they may opt to buy shares
from a company is very promising and its worth is higher and reasonable. Currently,
investors opt in to purchasing of shares in companies that are very promising and insolvent.
Because it is easy for companies to have their share price increase than increase their profit,
they rather stabilize their assets and finances to pave way for the worthy stock activities that
are undertaken by them.
Macquarie group Limited has affirmed the investors sentiment by doing media
releases for the analysis of their financials, Schaltegger and Burritt (2017) argue that
investors are convinced if the information regularly released from the stock company. The
stock price for the year2019 has been declining but due to the releases and the affirmation of
the investor by the group, prospects of increasing prices of the share prices for the group are
ultimate. People are confident in investing the shares of this company because the order of
operations of the company have affirmed the buyers that the company is worth and insolvent
therefore the price is expected to be high again maybe later in the FY 2020. The recent media
release of the financial year 2019 had rich information about the position of the stock market
in the short coming period and therefore the company is expected to have an increased share
price over the coming years.
Interest Rates
Lower interest rates imply that the demand for funds will be higher and the higher
interest rates discourage money seekers to come Lim and cogging (2005) deduce that the
interest is a centre of attraction to the buyers and therefore there must be a well laid schedule

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of determining their value. High interests mean that the funds are not demanded so much and
equally the shares are. Shares prices decrease because of the increase in interests that leads to
decline in the demand of shares. Macquarie group limited had a good reputable share price
for they FY17, 18. The beginners in investors are attracted by low interest rates (Schaltegger
and Burritt 2017), they seek what is cheaper for them.
Management
It is extreme to argue that the management paradigms in a given institution will
determine its future and success, (Mann 2004). The acquire group limited has had their share
price decline due to the expected change of management of which it will not only relieve
them the burden of management but it will see them lose some spot on the board of directors.
Macquarie Group limited holds 57.2% of the Oceania healthcare and it expects to
chop 15.6% of this in the veteran New Zealand based health provider. The company has tried
to seek a buyer by presenting it to the boards of ASX without success in 2017.
Conclusion and recommendation
The Macquarie company has had ups and down in its investment and shares, notably
in the share price. Due to supply and demand, interest rates, and ex dividend dates, the share
price of the Macquarie company has been fluctuating, but for the last two years, it was
constantly rising. This year experience a decline in the share price.
 The company should try and enhance the shareholder value because it easier than
increasing the company profits.
 They should make sure that the share value of their company has a rising momentum
because nothing attracts investors more than that.
 They should keep a good track of management and make strategic plans with stakes in
other companies

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References
Ali, S., Liu, B. and Su, J.J., 2016. What determines stock liquidity in Australia?. Applied
Economics, 48(35), pp.3329-3344.
Lim, M. and Coggins*, R., 2005. The immediate price impact of trades on the Australian
Stock Exchange. Quantitative Finance, 5(4), pp.365-377.
Mann, J., 2004. Corporate inversions: A symptom of a larger problem, the corporate income
tax. S. Cal. L. Rev., 78, p.521.
Scott, W.R. and O'Brien, P.C., 2003. Financial accounting theory (Vol. 3). Toronto: Prentice
Hall.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues,
concepts and practice. Routledge.

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Appendices
List of tables
Table 1.1
Annual dividends
12/20
15 12/2016 12/2
017
12/20
18 12/2019
Divid
end
amo
unt
1.87 1.98 2.02 2.16 1.14
Div
amou
nt
Ex div
date
Record
date Payable
%
Fran
ked
Type
ASX 109.1
c
06/09/2
018
07/09/20
18
26/09/2
018
100
%
Final
109.1C
FRANK
ED @
30% ;
DRP
SUSPE
NDED
ASX 114.4
00c
07/03/
2019
08/03/2
019
27/03/
2019
TABLE 1.1

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