Discuss the impact of investor sentiment on stock returns conditional on economic conditions.

FoMLSS Accounting, Finance and Economics

AFE6014-B: Empirical Methods in Accounting and Finance

TYPE OF ASSESSMENT: Individual Assessed Coursework

(3,000 words maximum excluding tables, figures, and references).

Under the revised assessment requirements due to COVID-19, this module will be assessed via a written assessed coursework.This is an individual assignment containing seven different requirements.Along with the main report,you also need to submit the original dataset and screenshots of results from SPSS or EViews.

Required to:
Discuss the rationale behind the cross-sectional impact of investor sentiment on stock returns.
Discuss the impact of investor sentiment on stock returns conditional on economic conditions.
Suppose that you decide to extend the evidence on the impact of investor sentiment on stock returns to one emerging market.Select a market and motivate your selection.
Critically review related literature and evaluate survey-based investor sentiment proxies and market-based investor sentiment proxies.
Find two proxies for investor sentiment in your selected market, and elaborate motivation for your selection.
Present descriptive statistics of (i) market returns of the selected market and (ii) investor sentiment.
Examine (i) the impact of investor sentiment on stock market returns, and (ii) the impact of investor sentiment on stock market returns conditional on economic conditions. Discuss potential limitations of your work.

Discuss the impact of investor sentiment on stock returns conditional on economic conditions.

Empirical Methods in Accounting and Finance

TYPE OF ASSESSMENT: Individual Assessed Coursework

(3,000 words maximum excluding tables, figures, and references)

Failure to submit your coursework by this deadline will result in a mark of 0%
The assignment must be submitted in electronic format to the ‘Turnitin’ drop-box in the Canvas site for this module
You are advised to plan your work carefully and back-up your work. Computing problems will NOT be accepted as reasons for non-submission
Along with the main report, you also need to submit the original dataset and screenshots of results from SPSS or EViews

Individual Assessed Coursework Brief
Under the revised assessment requirements due to COVID-19, this module will be assessed via a written assessed coursework. This is an individual assignment containing seven different requirements. Along with the main report, you also need to submit the original dataset and screenshots of results from SPSS or EViews.
The written report should not exceed 3,000 words. Excessive assignments will be penalised according to section 9.13 of Regulation 9 Regulation Governing Postgraduate Taught Awards: “Assessed work which exceeds a specified maximum permitted length will be subject to a penalty deduction of marks equivalent to the percentage of additional words over the limit. The limit excludes bibliographies, diagrams and tables, footnotes, tables of contents and appendices of data.”

Introduction
Behavior financial theories highlight investor sentiment in influencing stock prices, despite the traditional ones positing that stock prices are the discounted future cash flows and arbitrage leaves little space for investor sentiment (Fama, 1965). De Long et al. (1990) argue that sentiment investors trading together brings systematic risk into stock markets. The risk originated from the stochastic shifts in investor sentiment imposes arbitrage limits on rational investors, impeding them from trading against noise investors. As a result, the mispricing caused by sentiment investors is persistent. Baker and Wurgler (2006) state two routes whereby investor sentiment can bring persistent impact on stock prices: (i) uninformed demand shocks, and (ii) limits on arbitrage. Uninformed demand shocks naturally persist in that irrational investors’ misbeliefs could be further strengthened by others ‘joining on the bandwagon’ (Brown and Cliff, 2005, p. 407). Limits on arbitrage demotivate arbitrageurs from relieving the impact of investor sentiment since they are commonly subject to relatively restricted investment horizons and can hardly accurately forecast how the impact will persist. Therefore, one can observe that high levels of optimism (pessimism) would cause high (low) concurrent returns, and given the mean-reversion property, overpricing (underpricing) would be corrected and followed by low (high) subsequent returns. The theoretical analysis is supported by evidence drawn from the US market (Brown and Cliff, 2005) as well as international markets (Schmeling, 2009; Bathia and Bredin, 2013).
In line with the above-mentioned points, please prepare a report with a specific emphasis on the following seven requirements:

Required:
Discuss the rationale behind the cross-sectional impact of investor sentiment on stock returns.
Discuss the impact of investor sentiment on stock returns conditional on economic conditions.
Suppose that you decide to extend the evidence on the impact of investor sentiment on stock returns to one emerging market. Select a market and motivate your selection.
Critically review related literature and evaluate survey-based investor sentiment proxies and market-based investor sentiment proxies.
Find two proxies for investor sentiment in your selected market, and elaborate motivation for your selection.
Present descriptive statistics of (i) market returns of the selected market and (ii) investor sentiment.
Examine (i) the impact of investor sentiment on stock market returns, and (ii) the impact of investor sentiment on stock market returns conditional on economic conditions. Discuss potential limitations of your work.

While attempting requirements 1–7 you should follow academic writing style format relying on journal articles. Failing to do so will lead to a FAIL in this module.

Determine the company’s break-even point, the numbers sold to meet the company’s target profit, and the contribution income statement for both outcomes.

Reaction Paper 2

You are the new cost accountant for ABX Corporation. After careful review of the company’s operations, you have been tasked to determine the company’s break-even point, the numbers sold to meet the company’s target profit, and the contribution income statement for both outcomes. Management has also asked that you provide the pros and cons for variable, traditional, and activity-based costing methods. After providing each method’s pros and cons, recommend one method for the company’s use and support your discussion.

Company’s Data:

ABX Corporation sold 450,000 units at $75/unit. Fixed costs are $5,300,000 per year. Variable costs are $45 per unit. ABX Corporation desires a target profit of $6,500,000 per year.

Assignment should be submitted in APA format including in-text citations, references, and title page. Additionally submit proof of calculations.

What do you think are the advantages and disadvantages of using the balanced scorecard approach to performance evaluations of managers?

Unit VIII Discussion Board- Decentralization and Performance Evaluation

What do you think are the advantages and disadvantages of using the balanced scorecard approach to performance evaluations of managers? When you become a manager, would you like to participate in this form of evaluation?Do you think you could manipulate criteria if evaluated by this format?Elaborate.

What accounting standards are presently used in the company methods?

Impacts analysis interview

Interview questions (it must under the condition of LIFE INSURANCE, NOT NON-LIFE INSURANCE)
What is the present condition of organisational profits in XX.co / or the client you auditing or consulting?
What accounting standards are presently used in the company (methods)?
How do you rate the new IFRS-17 accounting principles?
In what ways do you calculate unearned profits at XX.co/ your client?
Are you aware of the impact of CSM on the unearned profits of insurance contracts?
How does CSM influence the accounting processes in IFRS-17?
What improvements do you recommend improving the assessment of unearned profits with CSM?
For contracts without direct participation features, IFRS 17 prohibits the CSM from being adjusted for impacts arising from changes in discount rates and certain kinds of assumptions relating to financial risk.

What might this bring to the insurance company in terms of profit?
For those contracts that have unearned profit attached, what should they consider in the calculation of CSM and during the further transition?

Calculation techniques
Cost of implementing
Presentation of the P&L
Newly established requirement to fulfil

Is anything else you consider that might be crucial to understand and analyse the CSM impacts on unearned profit or life insurance?

 

Identify 3 possible limitations of Dysn Ltd Statement of financial position (balance sheet) as at 31 March 2020.

Business Decision Making July 20 Intake

You are provided below the Trial Balance of dysn Ltd for the year ended 31 March 2020. You are required to:Prepare Dysn Ltd Statement of Profit or Loss (Income Statement) statement of account for the year ended 31 March 2020.Prepare Dysn Statement of Financial Position as at 31 March 2020. Identify 3 possible limitations of Dysn Ltd Statement of Profit or Loss (Income Statement) for the year ended 31 March 2020.Identify 3 possible limitations of Dysn Ltd Statement of financial position (balance sheet) as at 31 March 2020.Explain how Dysn Ltd can effectively manage the following:a) Inventory Daysb) Trade Payable Daysc) Trade receivable Days

Identify the need for a Triple Bottomline objective as applied to the particular case.Produce a Gantt (WBS) for the training program along with a Responsibility Matrix for each one of the departments involved in the project management.

As the previous report indicates, VR can be a compelling tool for training purposes from the standpoint of the
trainee’s emotional involvement as well as from the duration of the actual training itself. All those VR advantages can be relevant in a type of training that encompasses a large number of employees performing a similar task. It will be important that you prepare a Project Scope document stating the rationale for the choices made.
It will be important for you to distinctly identify the training goals for the given organization (research the client organization’s strategies and training goals) and analyze why it would be more convenient to use VR tools for soft-skill training as compared to in-class or e-learning methodologies. Why have you selected such an industry and sector for this type of application.

STRUCTURE AND FORMAT OF THE PROJECT:
This is an individual project.
Project structure (Body of the project) :
Identify the need for a Triple Bottomline objective as applied to the particular case.Produce a Gantt (WBS) for the training program along with a Responsibility Matrix for each one of the departments involved in the project management.
Produce an AON, diagram as well as a definition of what the critical path would be along with slack (20 points)
Risk: assess the program on the basis of the project you are conducting not the actual roll-out of the application. Use a risk matrix and mitigation plan to summarize your findings (20 points).Evaluate whether crashing may make sense for the project on the basis of the time and budget considered for the project.
Make a list of recommendations regarding the overall program on how to best reach the VR training objectives (15 points).

How does a public sector organisation which produces different types of (related) products (such as different types of trips with different priced tickets), set prices in order to break even and cover its fixed and operating costs?

Question 2C – Question 5.

How does a public sector organisation which produces different types of (related) products (such as different types of trips with different priced tickets), set prices in order to break even and cover its fixed and operating costs?Convert everything on the revenue and cost sides to single ticket equivalents.Constraints: a single visit ticket cannot be lower than R20 which will be the lowest price and attract the greatest number of commuters.As prices increase, the quantities of tickets sold will decrease (relative to the maximum ticket sales) but the variable costs will decrease.As prices increase, and commuter numbers decline, fewer ferries will need to be commissioned.