FIN921 Managerial Finance Assessment 2

FIN921 Assessment 2 – Group Essay Assignment

You need to write a literature review/critique for the following topic.
Financial statement analysis has long been a major instrument to predict the probability of bankruptcy of firms. However, significant corporate scandals have revealed that financial statements are not reliable to estimate the firm’s default (bankruptcy) risk. Recent literature finds that the non-financial information and other financial information (non-conventional financial ratios) are significant indicators of firm performance indicating that they convey additional relevant information over accounting ratios and stock price information. Among many, the following two factors are highlighted in recent literature.
(A) How the corporate governance affects the corporate bankruptcy risk.
(B) How the tax avoidance activities (tax sheltering or tax planning) affect the corporate bankruptcy risk.
Each group MUST choose one of the topics, either (A) or (B). Find relevant literature (minimum 10)

Task requirements:

1. The essay MUST be completed as a group work (3 people) to produce one report.
2. You must build up your own argument from reading the relevant journal articles.
3. At least 10 key Journal Articles should be included.
4. The maximum length of the essay (including the title page, abstract, body text, in‐text citation and reference list) is 2,500 words. Essays exceeding the word limit will be penalized with 10% penalty.
5. An abstract of no more than 150 words is to preface the essay.
6. The essay should follow the structure including Abstract, Introduction, Body text, Conclusion and the Reference List.
7. The title page must show the subject code, group members’ student number and name, and the tutorial number.
8. Referencing and in-text citation must follow an acceptable academic format using the Harvard referencing style. Please follow the guidelines (“Referencing Guide”) uploaded on the FIN 921 moodle site. All sourced material, including direct quotations, must be appropriately acknowledged.
9. Use your own words. Reference wherever necessary. Do NOT plagiarise.
10. Each group makes ONE submission only.