Marketing: Extra Information In Financial Statement (Essay Sample)

​EXTRA INFORMATION IN THE FINANCIAL STATEMENT
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Table of contents
1 Abstract............................................................................................................................... 4
1.1 Introduction...................................................................................................................... 5
1.2Research objectives and guiding question ........................................................................6
1.3 The direct effect of the external actors on the formulation of the corporate strategy…...7
1.4 Choosing the right theoretical lens……………………………………………………..10
1.5 The theoretical relevance……………………………………………………………….11
2.0. Theoretical background................................................................................................ 14
2.1 The dissertation outline………………………………………………………………...13
2.1.1 The lenses of organizational theory the firms’ performance………………………..14
2.1.2 Purpose of the research…………………………………………………………….17
2.1.3 The problem statement…………………………………………………………….17
2.1.4 The purpose of study………………………………………………………………18
2.1.5 The significance of the study................................................................................... 18
3. Literature Review……………………………………………………………………..19
3.1 Financial Statements for Communication Purposes………………………………..22
3.1.1 What does extra-financial information mean?........................................................ 23
3.1.2 . How relevant is the extra-information to the interested parties in making investment decisions…………………………………………………………………………………23
3.1.4. The agency theory................................................................................................. 24
3.1.5. Stakeholder theory………………………………………………………………28
4.0 The Research Methodology……………………………………………………….28
4.1 The Use of Qualitative Methodology with some Elements of Quantitative Research Methods………………………………………………………………………………….29
4.11. Quantitative Research Methods..........................................................................29
4.12. Qualitative Methodologies……………………………………………………….30
4.13 Advantages of Qualitative Analysis……………………………………………..31
4.1.4. Disadvantages of. Qualitative Analysis...........................................................31
5.0 Methodology............................................................................................................ 32
5.1 The Research Design.............................................................................................. 32
5.11 Data Collection…………………………………………………………………33
5.1.2 Sampling techniques ........................................................................................ 33
5.1.3 Population analysis...........................................................................................33
5.1.4. Descriptive statistics......................................................................................33
5.15. Regression analysis………………………………………………………….35
6.0. Methods of collecting data………………………………………………….36
5.1 Data …………………………………………………………………………..37
6.1.1 The Study Design…………………………………………………………..38
6.1.2 Validity and Reliability……………………………………………………..39
6.13 Data Transformation and the Description of Incidents……………………40
6.14 . Data Collection…………………………………………………………….41
7.0. Cognitive institutions ………………………………………………………44
7.1. Discussion and implications………………………………………………..44
7.1.2 Limitations of this dissertation……………………………………………….44
8.0. Final conclusions……………………………………………………….47
1. Abstract
According to the agency theory accessing vital information pertaining to financial institutions is very important in making prudent investment decisions. There is sufficient evidence to support this theory (Fu 2009).Using a panel of financial institutions that are listed on the New York Stock exchange, this study will investigate the contributions that the extra information on the financial statements has made towards the growth of these companies in terms of investments. The results of this investigation and analysis show that there is a close connection between the extra –information in the financial statements and the level of investment in the listed companies (Enid, 2011).
This study was conducted for the sample of the firms that were picked from the stock exchange. The sample of the financial institutions picked was based on their performance. Ten companies that have been performing well for the last five years were picked and the worst performers for the period were picked (Enid,2011).
The sampling was done based on the firms in the stock exchange because it is easier to access their information beyond the financial statements which they issue at the end of the year. The firms in the New York stock exchange are also under regulation and they are subject to the requirements of the reserve. They also have an adequate level of the capital. Extra data will also be obtained from the Bloomberg institutions because this body is an authority in the financial sector ratings and the information can be traced backward (Johnson 2011).
The investors, the financial analysts, the creditors, suppliers and other interested parties desire to have unfettered information to financial institutions so that they can have truly holistic picture of the firm. This information will determine the investment decisions they will make as well as in the ranking of the companies involved.
The study showed that statistically, there is a significant relationship between the extra-financial information released by the firms in the stock exchange and their performance. The companies that divulge more information like the social corporate responsibility and the environmental management which are beyond the financia...