Category: Finance

Largest impacts that human capital

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Please provide short responses to 4 discussions below
1. One of the largest impacts that human capital is involved with is talent retainment. The importance of recruiting and retaining talented goes beyond basic operational needs to the degree that it affects the longevity of the company (Cascio & Aguinis, 2019). Human resource teammates must identify open positions and whether they will fill these positions internally or externally. Many different organizations are attempting to streamline the employment process by using new technologies to interpret the exact skills, experience and educational requirements that are needed for success (Aggarwal et al., 2015). The purpose behind building up this process is to reduce costs and investments by better identifying what exactly a company needs staffing wise to be successful.
In addition to acquiring the talent, another facet is retaining the talent. An effective HR management system can emphasize the importance of building long-term relationships with employees and rewarding high performance (Boudreau et al, 2016). By focusing a building of relationships and valuing employees as more than a metric of operational success, one can develop a work culture that someone would want to keep a career with.
Understanding these concepts will be beneficial as a leader, as one cannot successfully operate without the appropriate work force. What I enjoy from this discussion is the application to my immediate career. We are currently working on reaching a full level of staffing, and what I am seeing is the desire from teammates to feel that they are more than just a number in our roster. Topics such as this discussion emphasize the importance of effective team building and development.

 

 

 

Financial ratios

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Financial ratios are essential to provide an accurate valuation of a firm. Select a publicly traded firm of your choice. Select one ratio each in the areas of (a) performance, (b) activity, (c) financing, and (d) liquidity warnings. Provide an evaluation of the selected firm’s strengths and weaknesses. Based on the ratios you selected, how well does your chosen firm perform? Explain.

Financial ratios

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Financial ratios are essential to provide an accurate valuation of a firm. Select a publicly traded firm of your choice. Select one ratio each in the areas of (a) performance, (b) activity, (c) financing, and (d) liquidity warnings. Provide an evaluation of the selected firm’s strengths and weaknesses. Based on the ratios you selected, how well does your chosen firm perform? Explain.

Investing in carbon offset market

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Undergraduate empirical research paper, bachelor BA, major Finance. Topic climate finance
Investigate if:
A: Companies that are active on the Carbon offset market (buyers)
Have a better
B; Perform financially better / Result on the stock market
Research question: What is the effect of investing in carbon offset markets on firm valuation?
Possible regression model/methodology see appendix1

Dataset required:

1. Number of carbon credits acquired per company / industry sector
2. Financial performance of stock listed companies: who invested in carbon credits + who do not

Data considerations

1. Carbon offset market
– Data of market volume by company gvkey number and name, industry sector and country.
o should be compared to the total estimated value of the carbon offset market (does the dataset cover 2%/ 10% / 50% or more of the total estimated market value?  needs to be sufficiently large set (like provided from me)
– Where is data available on the total estimated value of carbon offset market (multiple sources or estimates). Source is important.

2. Financial performance by companies
– List of stock listed companies, per country, per industry sector
– Per company, the financial performance: this can be determined by either
o Current Earnings per share
o Firm size
o Profitability
o Leverage
o Earnings per share growth over past 5 years
o Stock price growth over past 5 years
o Current market value of company
o Market value per company growth over past 5 years
o Other??
Note: all tests must be done via STATA + logbook of process

Data already acquired

A: Companies that are active on the Carbon offset market
– Available is a data file (excel) with carbon offset buying volume over the past 11 years included: sector, country, retirement date, compliance/voluntary. This file is obtained by a mentor, so it is highly preferable to use
– If other or better data sets are to be obtained, it can be considered to either
o Merge the files
o Choose the preferable one, but with good explanation why

B; Financial performance by companies
– A list of companies with their financial performances, described in data considerations 2. Financial performance data should be gathered for both companies that do participate in the carbon offset markets and for companies that do not participate in the carbon offset market. The reason for this is the binary ICC in appendix1
Required outcome

Step 1: Obtain a dataset providing quantities of acquiring carbon credits per company

Step 2: Obtain a dataset of financial performance per company

– As stated in appendix 1, sector information also needed for the binary ERS

It is anticipated that the number of companies active on the market of carbon offset is smaller than the number of stock listed companies worldwide. Therefor the number of companies on data A should be much smaller than the number of companies on data B.

Data A & Data B should be compared per company, (country, per industry sector)

The goal of this empirical research paper is to examine:

1. Do companies that are active on carbon offset market financially perform better than companies who are not active on carbon offset market
2. To examine the effect of industry and regulatory factors on the relationship between carbon offset markets and firm valuation.
3. (Are certain countries more active than other industry sectors AND do they perform financially better)  not main point but nice to add

What is expected:
– Write the “research question and hypothesis” (small part), write the “methodology and data” part, the “empirical results” and the conclusion / discussion
– All parts written must align with the literature review that has been sent as well. Otherwise those parts need to be rewritten as well. If you can apply higher quality then a diverse version is admitted.

Possible hypothesis:
H0: there will be no effect of investing in carbon credits on firm valuation
H1: Firms that participate in carbon offset markets will have a higher valuation than firms that do not participate.
H2: The positive impact of carbon offset market participation on firm valuation will be stronger in countries with more stringent environmental regulations.
(H3: carbon offset markets will have a positive effect on the growth potentials for firms in developing countries )  might be eliminated

 

 

 

Investing in carbon offset market

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Undergraduate empirical research paper, bachelor BA, major Finance. Topic climate finance
Investigate if:
A: Companies that are active on the Carbon offset market (buyers)
Have a better
B; Perform financially better / Result on the stock market
Research question: What is the effect of investing in carbon offset markets on firm valuation?
Possible regression model/methodology see appendix1

Dataset required:

1. Number of carbon credits acquired per company / industry sector
2. Financial performance of stock listed companies: who invested in carbon credits + who do not

Data considerations

1. Carbon offset market
– Data of market volume by company gvkey number and name, industry sector and country.
o should be compared to the total estimated value of the carbon offset market (does the dataset cover 2%/ 10% / 50% or more of the total estimated market value?  needs to be sufficiently large set (like provided from me)
– Where is data available on the total estimated value of carbon offset market (multiple sources or estimates). Source is important.

2. Financial performance by companies
– List of stock listed companies, per country, per industry sector
– Per company, the financial performance: this can be determined by either
o Current Earnings per share
o Firm size
o Profitability
o Leverage
o Earnings per share growth over past 5 years
o Stock price growth over past 5 years
o Current market value of company
o Market value per company growth over past 5 years
o Other??
Note: all tests must be done via STATA + logbook of process

Data already acquired

A: Companies that are active on the Carbon offset market
– Available is a data file (excel) with carbon offset buying volume over the past 11 years included: sector, country, retirement date, compliance/voluntary. This file is obtained by a mentor, so it is highly preferable to use
– If other or better data sets are to be obtained, it can be considered to either
o Merge the files
o Choose the preferable one, but with good explanation why

B; Financial performance by companies
– A list of companies with their financial performances, described in data considerations 2. Financial performance data should be gathered for both companies that do participate in the carbon offset markets and for companies that do not participate in the carbon offset market. The reason for this is the binary ICC in appendix1
Required outcome

Step 1: Obtain a dataset providing quantities of acquiring carbon credits per company

Step 2: Obtain a dataset of financial performance per company

– As stated in appendix 1, sector information also needed for the binary ERS

It is anticipated that the number of companies active on the market of carbon offset is smaller than the number of stock listed companies worldwide. Therefor the number of companies on data A should be much smaller than the number of companies on data B.

Data A & Data B should be compared per company, (country, per industry sector)

The goal of this empirical research paper is to examine:

1. Do companies that are active on carbon offset market financially perform better than companies who are not active on carbon offset market
2. To examine the effect of industry and regulatory factors on the relationship between carbon offset markets and firm valuation.
3. (Are certain countries more active than other industry sectors AND do they perform financially better)  not main point but nice to add

What is expected:
– Write the “research question and hypothesis” (small part), write the “methodology and data” part, the “empirical results” and the conclusion / discussion
– All parts written must align with the literature review that has been sent as well. Otherwise those parts need to be rewritten as well. If you can apply higher quality then a diverse version is admitted.

Possible hypothesis:
H0: there will be no effect of investing in carbon credits on firm valuation
H1: Firms that participate in carbon offset markets will have a higher valuation than firms that do not participate.
H2: The positive impact of carbon offset market participation on firm valuation will be stronger in countries with more stringent environmental regulations.
(H3: carbon offset markets will have a positive effect on the growth potentials for firms in developing countries )  might be eliminated

 

 

 

Financial Management

Posted on | by Brian Leakey

The role of the financial manager is crucial in every type of organization. Locate a job posting for a financial manager position from any job recruiting website; for example, websites such as Indeed.com or Glassdoor.com. In a three-page paper (minimum), please answer the following questions related to the job description:

Provide the job posting information, such as company name and job title.
What are the main responsibilities and the day-to-day responsibilities of the financial manager? What are the soft skills required for this position?
Describe the main sources of revenue and major expenses you would find on the income statement related to the company seeking the financial manager?
What obstacles may the financial manager face in the near future related to revenue generation and expense obligations for this type of company?

Measure of central tendency

Posted on | by Brian Leakey

Would you prefer to use the mean or the median in this dataset’s measure of central tendency? Why?
Based on this training class’s scores, what scores do you think should be considered for completion, remediation, and termination? How did you come to that conclusion?
Do you think that these scores should be the threshold for all training classes? Why or why not?

The value of Alpha NV

Posted on | by Brian Leakey

Topic
• Alpha NV and Beta NV are identical in every way except their capital structures.
• Alpha NV, an all-equity firm, has 5,000 shares of equity outstanding, currently worth €20 per share.
• Beta NV uses leverage in its capital structure. The market value of Beta’s debt is €25,000, and its cost of debt is 12 percent.
• Each firm is expected to have earnings before interest of €35,000 in perpetuity
• Neither firm pays taxes. • Assu
me that every investor can borrow at 12 percent per year.
Questions
a. What is the value of Alpha NV? (10 points)
b. What is the value of Beta NV? (10 points)
c. What is the market value of Beta NV’s equity? (10 points)
d. How much will it cost to purchase 20 percent of each firm’s equity? (10 points)
e. Assuming each firm meets its earnings estimates, what will be the euro return to each position in part (d) over the next year? (20 points)
f. Construct an investment strategy in which an investor purchases 20 percent of Alpha’s equity and replicates both the cost and dollar return of purchasing 20 percent of Beta’s equity. (20 points)
g. Is Alpha’s equity more or less risky than Beta’s equity? Explain. (20 points)

The financial press

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Each student will need to pick one news story (or potentially more if they are related) from the financial press and present it back to the group. Your choice of news story is up to you. Use the following structure to frame your discussion:

What’s the headline?
What does this mean?
Why is this important to the economy?