Research Proposal: Corporate Governance, Audit and UK Supermarkets

This research proposal investigates the financial performance of the UK supermarket industry, focusing on the impact of corporate governance and the influence of the Big 4 audit firms (Deloitte, PwC, Ernst & Young, and KPMG). The study aims to analyze the financial performance of the UK supermarket industry, using Tesco as a representative case study. The research objectives include identifying the impact of corporate governance and Big 4 audits on financial performance, identifying the tools to analyze financial performance, and analyzing ways to minimize the influences of corporate governance and Big 4 audits. The research will use secondary data from sources like books, journals, company websites, and annual reports. The researcher has proficiency in SPSS to analyze the data. The research also identifies a gap in existing literature regarding the specific impact of Big 4 audit firms on the financial performance of an industry.

Research proposal

Contents
TOPIC..............................................................................................................................................1
Motivation of selecting the topic.................................................................................................1
Gap identified in the literature.....................................................................................................1
Number of organisations which will be used in research............................................................1
Research objectives and questions...............................................................................................2
Sources of data collection............................................................................................................2
Knowledge of software................................................................................................................2

TOPIC
“The impact of corporate governance and big 4 audit on the financial performance of UK’s
supermarket industry”
Motivation of selecting the topic
The topic selected for the investigation has the dependent variable as financial performance
of UK’s supermarket industry. It has been seen that UK’s supermarket industry is highly
competitive and involves big giant organisations that do not provide scope for small
organisations to enter in this market. Considering the present situation of this supermarket
industry which is highly competitive and monopolistic at the same time, the motivation is gained
to analyse the financial performance of such industry. Recent innovations and development has
provided the motivation of select this topic. Furthermore, the independent variables of the
selected topic are corporate governance and 4 big audit firms which has even hyped the curiosity
to analyse such topic as these two factors play a major role in influencing the financial
performance of an organisation.
Gap identified in the literature
This topic has also been selected to investigate upon, as a gap in literature review was
identified for this topic. There are various previous research reports has already been developed
for this topic but such reports are identified to have a gap which is aimed to be bridged in this
investigated. This gap which has been identified is that audit firms are always regarded as a
financial check firms for business organisation and there is no appropriate information in
previous reports about the impact of big 4 audit firms on the financial performance of an entire
industry.
Number of organisations which will be used in research
For this research in total of 5 organisations will be used. The first 4 organisations will
comprise the 4 big audit firms and 1 organisation will represent the entire UK’s supermarket
industry. The big 4 audit firms are Deloitte, PwC, Ernst & Young and KPMG. Apart from this,
Tesco will be used to represent entire UK’s supermarket as this company is the market leader of
UK’s supermarket industry and is appropriate for investigation because its numerical and
financial information is easily available.
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Research objectives and questions
Research Aim
“To identify the impact of corporate governance and big 4 audit on the financial
performance of UK’s supermarket industry”.
Research objectives
 To identify the impact of corporate governance on the financial performance of UK’s
supermarket industry.
 To identify the impact of big 4 audit on the financial performance of UK’s supermarket
industry.
 To identify the tools to analysing the financial performance of UK’s supermarket industry
 To analyse the ways to minimise the influences laid by corporate governance and big 4
audit on financial performance of UK’s supermarket industry”.
Research questions
 What are the impacts of corporate governance on the financial performance of UK’s
supermarket industry?
 What are the impacts of big 4 audit on the financial performance of UK’s supermarket
industry?
 What are the tools to analysing the financial performance of UK’s supermarket industry?
 How the influences laid by corporate governance and big 4 audit on financial performance
of UK’s supermarket industry can be minimised?
Sources of data collection
This particular research is planned to be conducted using secondary data gained from
books, journals, articles, website of the company and the annual report of the company to assess
the financial performance.
Knowledge of software
Yes, I have average proficiency of using SPSS (Statistical Package for the Social Sciences).
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