MASTER IN BUSINESS ADMINISTRATION

Jan 2018 Coursework Assignment

DUE DATE: 29th March 2018

SUBJECT: FINANCE FOR MANAGER

SUBJECT CODE: FIN6013

Instructions
You are required to write a course assignment of approximately 3,500 words. Using sources
from relevant journal, articles and textbook, answer ALL the following questions in your
assignment.
ASSIGNMENT: CORPORATE GOVERNANCE

ASSIGNMENT OUTLINE

This is an individual assignment consists of 100 percent (100%). Student will pick a company
to analyze.

1. Find annual reports of companies for 4 or 5 consecutive years started on the year of
2011 until 2016. The companies chosen by individual should be listed in main board
of Bursa Malaysia.
2. Analyze the corporate governance of the chosen company. Each student will be
responsible for doing the entire analysis for the company that he or she has chosen.
3. At the end of the process, student will write one report for the selected firms. The
report is the analysis of corporate governance.

A complete written report shall be submitted on 29th March 2018

Please note that plagiarism from any sources is strictly prohibited (for example, table
cut and paste from the annual reports).
FIRST PART: CORPORATE GOVERNANCE ANALYSIS

Objective

1. To analyze the corporate governance structure of the firm and to assess where the
power in the firm lies, with incumbent management or with stockholders in the firm
2. To find out whom the average and marginal investors in the company are. This is
relevant because risk and return models in finance assume that the marginal investor
is well diversified.

Key Question
 Analyse the responsiveness of the management to stockholders. (Hint: Is this a
company where there is a separation between management and ownership)
 Examine how management handle if there is a potential conflict between stockholders
and lenders to the firm.
 Analyse on how the firm interacts with financial markets? How do markets get
information about the firm? (Hint: investing, financing and operating activities)
 Who is the average investor in this stock? (Individual or pension fund, taxable or tax-
exempt, small or large, domestic or foreign)

Framework for Analysis

(Hint: Justify the below answers on how does the decision made to accelerate the growth
of the selected company.)

1. The Chief Executive Officer (5 marks)

 Who is the CEO of the company? How long has he or she been CEO?
 If is it a “family-run company”, is the CEO part of the family? If not, what career
path did the CEO take to get to the top? (Did he or she come from within the
organization or from outside?)
 How much did the CEO make last year? What form did the compensation take?
(Salary, bonus, and option components)
 How much stock and options in the company does the CEO own?

2. The Board of Directors (10 marks)

 Who is on the board of the company? How long have they served as directors?
 How many of the directors are “inside” directors?
 How many of directors have other connections to the firm?
 How many of the directors are CEOs of other companies?
 Do any of the directors have large stockholdings or represent those who do?

3. Bondholder Concerns(5 marks)

 Does the firm have any publicly traded debt?
 Are there are bond covenants that have been imposed on the firm as part of the
borrowing?
 Do any of the bonds issued by the firm come with special protections against
stock-holder expropriation? (What kind of bond does the company have?)

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 4. Financial Market Concerns (5 marks)
 How many analysts follow the firm?
 How much trading volume is there on this stock?

5. Stockholder and Insider Holdings Concerns (20 marks)

 How many stockholders does the company have?

 What percent of the stock is held by institutional investors?
 Does the company have listings in foreign markets? (If you can, estimate the
percent of the stock held by non-domestic investors.)
 Who are the insiders in this company? (Besides the managers and directors,
anyone with more than 5% is treated as an insider.)
 What role do the insiders play in running the company?
 What percent of the stock is held by insiders in the company?
 What percent of the stock is held by employees overall? (Include the holdings by
employee pension plans)
 Have insiders been buying or selling stock in this company in the most recent
years?

SECOND PART: FINANCIAL STATEMENT ANALYSIS

Framework for Analysis
(Hint: Justify the below answers on how does the decision made to accelerate the growth
of the selected company.)

1. Assess the company’ yearly Free Cash Flow (FCF). (10 marks)
2. Evaluate each major category of the below financial ratios. (15 marks)
More detail, formula, explain.
a. Liquidity ratio
b. Asset management ratio
c. Debt management ratio

3. Interpret and conclude your analysis. (15 marks)

Sources of information: Bursa Malaysia, Annual Reports, Bursa Malaysia web-site, etc.

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ASSESSMENT CRITERIA AND GRADING SHEET

Categories

UoS Segi Relevance Knowledge Analysis Argument Critical Presentation Reference

% and Evaluation to
% Structure Literature

86 – 80- The work examined is exemplary and provides clear evidence of a complete grasp of the knowledge,
100% 100 understanding and skills appropriate to the Level of the qualification. There is also ample excellent evidence
showing that all the learning outcomes and responsibilities appropriate to that Level are fully satisfied. At this
% level it is expected that the work will be exemplary in all the categories cited above. It will demonstrate a
particularly compelling evaluation, originality, and elegance of argument, interpretation or discourse.

76- 75- The work examined is outstanding and demonstrates comprehensive knowledge, understanding and skills
85% 79 appropriate to the Level of the qualification. There is also excellent evidence showing that all the learning
outcomes and responsibilities appropriate to that level are fully satisfied. At this level it is expected that the
% work will be outstanding in the majority of the categories cited above or by demonstrating particularly
compelling evaluation and elegance of argument, interpretation or discourse.

70-75 70- The work examined is excellent and is evidence of comprehensive knowledge, understanding and skills
74 appropriate to the Level of the qualification. There is also excellent evidence showing that all the learning
% outcomes and responsibilities appropriate to that level are satisfied. At this level it is expected that the work
% will be excellent in the majority of the categories cited above or by demonstrating particularly compelling
evaluation and elegance of argument, interpretation or discourse.

60-69 65- Directly A substantial Comprehensive Well Contains Well written, Critical
69 relevant to knowledge of analysis - clear supported, distinctive with appraisal of
% the relevant and orderly focused or standard up-to-date
% requirements material, presentation argument independent spelling and and/or
of the showing a which is thinking; grammar, in appropriate
assessment clear grasp of clear and and begins a readable literature.
themes, logically to style with Recognition
questions and structured. formulate acceptable of different
issues therein an format perspectives.
independent Very good
position in use of a
relation to wide range
theory of
and/or sophisticated
practice. source
material.

50-59 60- Some Adequate Significant Generally May Competently Uses a good
64% attempt to knowledge of analytical coherent contain written, with variety of
% address the a fair range of treatment and some only minor literature
requirements relevant which has a logically distinctive lapses from which
of the material, with clear purpose structured, or standard includes
assessment: intermittent using an independent grammar, recent texts
may drift evidence of appropriate thinking; with and/or
away from an mode of may begin acceptable appropriate
this in less appreciation argument to format literature,
focused of its and/or formulate including a
passages significance theoretical an substantive
mode(s) independent amount
position in beyond
relation to library texts.
theory Competent
and/or use of
practice. source
Pass

material.

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 40-49 55- Some Basic Some Some Sound work A simple Evidence of
59 correlation understanding analytical attempt to which basic style use of
% with the of the subject treatment, but construct a expresses a but with appropriate
% requirements but may be prone coherent coherent significant literature
of the addressing a to description, argument, position deficiencies which goes
assessment limited range or to narrative, but may only in in expression beyond that
but there are of material which lacks suffer loss broad terms or format referred to
instances of clear analytical of focus and in that may by the tutor.
irrelevance purpose and uncritical pose Frequently
50- consistency, conformity obstacles for only uses a
54 with issues to one or the reader single
% at stake more source to
stated only standard support a
vaguely, or views of the point.
theoretical topic
mode(s)
couched in
simplistic
terms

35-39 45- Relevance to A limited Largely A basic Some Numerous Barely

49 the understanding descriptive or argument is evidence of deficiencies adequate use
% requirements of a narrow narrative, with evident, but a view in expression of literature.
% of the range of little evidence mainly starting to and Over
assessment material of analysis supported be formed presentation; reliance on
may be very by assertion but mainly the writer
intermittent, and there derivative. may achieve material
and may be may be a clarity (if at provided by
reduced to lack of all) only by the tutor.
its vaguest clarity and using a
and least coherence simplistic or
challenging repetitious
terms style

The evidence provided shows that the majority of the learning outcomes and responsibilities appropriate to that
Level are satisfied – for compensation consideration.

30-34 40- The work examined provides insufficient evidence of the knowledge, understanding and skills appropriate to
44 the Level of the qualification. The evidence provided shows that some of the learning outcomes and
% responsibilities appropriate to that Level are satisfied. The work will be weak in some of the indicators.
%

15-29 20- The work examined is unacceptable and provides little evidence of the knowledge, understanding and skills
39 appropriate to the Level of the qualification. The evidence shows that few of the learning outcomes and
% responsibilities appropriate to that Level are satisfied. The work will be weak in several of the indicators.
%

0-14 0-19 The work examined is unacceptable and provides almost no evidence of the knowledge, understanding and
skills appropriate to the Level of the qualification. The evidence fails to show that any of the learning
% % outcomes and responsibilities appropriate to that Level are satisfied. The work will be weak in the majority or
Fail

all of the indicators.

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 Assignment guidelines
General
 You are required to answer ALL questions.
 The coursework must be done entirely based on the work of originality. Please make
sure that you are aware of the rules concerning plagiarism. If you are unclear about
them, please consult your program coordinator/lecturer.
 This assignment carries a weighting of 60% within the Module assessment
 The word count is indicative. Try to stay with allocated word count as far as possible.
Marks are gained for facts and conciseness and marks are lost for unnecessary
material.

Typing
If Microsoft Word is used, font type Times New Romanwith font size 12 should be used. One
and a half line spacing should be used. The text must be printed on one side only. The
spacing between the title of a sub-section and the first line of a text should be two (2) line
spacing. The spacing between paragraphs should be two (2) line spacing. A new paragraph
should not begin on the last line of a page.

Table of Contents Page

The Table of Contents page must start on a new page. It should list all heading sections, sub-
headings and section numbers. The titles must be written using the same words as those
written in the text.

Introduction
An Introduction should be provided at the beginning to summarize the structure of the
following sections of the report/assignment.

Body of assignment /Text

The assignment must be divided into sections. A title must be given and it should reflect its
content. These sections must be given appropriate titles and numbered. Texts must be written
in paragraphs. Long paragraphs should be avoided. Each paragraph must describe an issue or
subject. There must be continuity between paragraphs. The coursework write up must be able
to demonstrate critical analysis and application of both theory and practical issues.

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Figures and tables
This page should list all the tables found in the assignment. The page number of the table
must also be included. The table numbers should be arranged accordingly. Diagrams,
photographs, drawings, graphs, charts and maps are included as figures. The list should be
written similar as the List of Tables.

Appendices
Larger amounts of relevant material (such as sample documents or supporting material)
should be put at the end of the assignment in an Appendix after the List of References.
Smaller charts or summaries could be located in the text, but anything over a page becomes a
distraction. Appendices should be numbered sequentially (Appendix 1, Appendix 2, etc).
Unnecessary and irrelevant information should not be attached. Size of assignments has no
bearing on marks achieved.

References
References are detailed description of items from which information were obtained in
preparing the course assignment. All references cited should be listed in the List of
References at the end of the last section. List the references alphabetically (APA System). At
postgraduate level, you are expected to cite at least 10 to 15 different sources of reference
materials. Citation is a means of formally recognizing within the text, the resources from
which the information or idea were obtained. The purpose is to acknowledge the work of
others, to demonstrate the body of knowledge in which the work is based on and to lead
others for further information.

Late Submission
 A 10% deduction per day of total coursework marks (excluding weekends and public
holidays).
 Late submission between 5 to 10 days, results in a 50% deduction of total coursework
marks.
 Late submission past 10 days results in an automatic 0% for coursework and the student
will be barred from the final examination.