Quantitative Analysis for Economics and Finance

You have been asked to examine financial performance of UK non-financial firms in 2016. To do that, you need to select a sample of 40 UK publicly listed firms from FAME Database. All your selected companies should be from FTSE All Share Index and should exclude financial firms (such as banks and insurance companies). Collect data from each selected company in 2016 for the following 3 variables: 1. Company Name 2. UK SIC Code 3. Firm Profitability: – Return on Capital Employed (ROCE) OR – Return on Total Assets (ROA) Collect data from each selected company for any 3 of the following variables: 4. Firm Size: Total Sales (Turnover) 5. Liquidity: Current Assets, Current Liabilities 6. Tangibility: Tangible Assets, Total Assets 7. Asset Growth: Total Assets in 2016, Total Assets in 2015 8. Debt Ratio: Long-Term Liabilities, Total Assets Perform the following tasks in IBM SPSS Software: 1) Input/Import the data you collected into IBM SPSS Software 2) Make necessary transformation of your data in SPSS. – Firm Size = Natural Log of Total Sales (Turnover) – Liquidity = Current Assets/Current Liabilities – Tangibility = (Tangible Assets/Total Assets)*100 – Asset Growth = ((Assets2016–Assets2015)/Assets2015)*100 – Debt Ratio = (Long-Term Liabilities/Total Assets)*100 3) Produce histograms and descriptive statistics (min/max, mean/median, standard deviation, skewness and kurtosis) for profitability and the other three variables you have. 4) Produce a Short Report in Word. Your report should contain the following: a) Introduction, where you need to specify the aim of the report. b) Explain the process of sample selection with reference to an appropriate sampling method. c) Explain what data you collected and what transformations were made. d) Describe your variables using histograms and descriptive statistics (min/max, mean/median, standard deviation, skewness and kurtosis). Comment on the distribution of each variable.

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