ACCFIN5203: Foundations of ICF Assessment Brief | University of Glasgow

QUESTION

This is a group assignment where your team is required to collaboratively produce a short research paper. You are required to download firm-level data of non-financial companies (excluding utility companies) for any country for the period of 2018-2022. Specifically, you will need to download data for the following variables: total debt ratio and total long-term debt ratio as dependent variables and total assets, profitability ratio, tangibility ratio and industry classification as control variables.

The tasks for this assignment are as follows: 

• Collaboratively identify one interesting firm-level factor or country-level factor from the capital structure literature (other than firm size, tangibility, profitability, and industry classification) that has been shown to impact capital structure decisions.
• Critically discuss the relevance of these selected variables for capital structure decisions.
• As a group, download the required data and work together to provide descriptive statistics. Critically discuss the main findings of the descriptive statistics.
• Conduct a regression analysis as a group to examine the relationship between your chosen variables and capital structure,
• controlling for size, tangibility, profitability, and industry classification. Also, do the analysis for debt maturity structure to investigate if the results remain similar. Critically discuss the findings of your analysis, drawing on previous studies to explain your results.