DISSERTATION PROPOSAL FORM

 

Student Name:   Supervisor Name: Dr. Serena Trucchi
Student Number:    
Student E-mail: Supervisor E-mail: trucchis@cardiff.ac.uk

The proposal stage of your dissertation is crucial. If your proposal is good, the rest of your research will fall into place.

 

For planning your research, it is helpful to consider the proposal stage as encompassing the whole process; from analyzing the assignment brief through to that point when you are clear, in your own mind, what you will research and how.

For this purpose, please complete this form as much as possible and email it before the first zoom meeting.

Please note that I will read the draft of your dissertation only once and only after us both agree on the key issues on this form.

Proposed Title: The expected title of your thesis (you can adjust it slightly later, before final submission).

 

Does firm size affect firm profits? Evidence from manufacturing firms in China

Topic: Briefly describe your topic. Explain why it is interesting and policy relevant and what your contribution to the literature should be.  

The aim of this study is to examine the effects of firm size on profitability. About 30 listed firms in Shanghai Stock Exchange between the years of 2016-2019 will be included in the study. By studying 15 listed manufacturing companies in Sri Lanka that are active in stock market between 2008 and 2012, it was found that there was no indicative correlation between firm size and the profitability of studied companies (Niresh et al., 2014). However, the study of Dogan (2013) in Turkey suggests a positive relation between size indicators and firms’ profitability. Similarly, the study of Bolarinwa and Obembe (2017) in Nigerian Listed Financial industry also confirmed the positive relationship. These findings suggest that the relationship between firms’ size and profitability remains uncertain and varies from countries. The present study is going to test previous studies about relationship between firm size and profitability in China’s context. The present study will extend existing research scope to involve Chinese firms.

Research Question(s): Explicitly state the research question(s) you are hoping to answer with your dissertation.  

 

 

The central research question is “To what degree does firm size affect firm profits with evidence collected from manufacturing firms in China?”

Data: In your dissertation, you will use data from secondary data sources such as the British Household Panel Survey (BHPS), China Health and Nutrition Survey (CHNS), the Chinese Household Income Project (CHIP), World Values Survey (WVS), etc. Write down the following:

 

  1. The name and the year of the data you intend to use

About 30 listed firms in Shanghai Stock Exchange between the years of 2016-2019 will be included in the study.

………………………………………………………………………………………….

  1. The time period the original survey covers

 

………………………………………………………………………………………….

  1. Type of data (Time Series, Cross-Sectional, Pooled Cross Sections or Panel/Longitudinal)

Longitudinal data will be used

………………………………………………………………………………………….

  1. Unit of observation (an object on which a measurement is taken – individual, household, firm, etc.)

firm

………………………………………………………………………………………….

  1. Sample (a subset of population that your own analysis will be based – e.g. working age population, only employees, etc.)

30 listed manufacturing firms in Shanghai Stock Exchange

………………………………………………………………………………………….

Methodology: Write out the basic econometric equation and briefly explain the econometric method that will be employed, each of the variables and the parameters of interest.

 The firm profitability is measured by return on assets, net profits. Firm size is measured by total assets and total sales. Correlation and regression methods will be deployed for empirical analysis. Additionally, age of the firms, leverage ratio and liquidity ratio have been used as control variables

NP = β0 + β1X1 + β2X2 + ε Model I

NP = β0 + β1X1 + β2X3 + ε Model II

ROA = β0 + β1X1 + β2X2 + ε Model III

ROA = β0 + β1X1 + β2X3 + ε Model IV

Where: X1= Asset Turnover. X2= Logarithm of Total Assets. X3= Logarithm of Total Sales. NP= Net Profit. ROA = Return on Assets. β0= Constant. ε= Error term

 

 Key References: List the most important three academic articles relevant to your research proposal. Please write down the full reference in Harvard style.

  1. Dogan, M. (2013) Does Firm Size Affect The Firm Profitability? Evidence from Turkey. Research Journal of Finance and Accounting. 4(4), 53-63.https://www.academia.edu/34086249/Does_Firm_Size_Affect_The_Firm_Profitability_Evidence_from_Turkey
  2. Niresh, J.A., Velnampy, T., & Lanka, S. (2014).Firm Size and Profitability: A Study of Listed Manufacturing Firms in Sri Lanka.International Journal of Business and Management, 9
  1. Bolarinwa, S.T., Obembe, O.B. (2017) firm size-profitability Nexus: an Empirical Evidence from Nigerian Listed Financial Firms. Global Business Review,20(5), 1109-1121

Software: State the software (Stata, R, E-Views, SPSS, etc.) you will use in analysing the data……………………SPSS…………