Financial Modelling Research Paper Example | Topics and Well Written Essays - 1750 words

Financial Modelling - Research Paper Example , Total assets of company (expressed in  £ millions), Extent of team working within the company (expressed as a percentage), Scheme (coded as 1 if company has a profit sharing scheme) and 0 otherwise, Market share of company (expressed as a percentage), the age of the company (since how many years it was established) and lastly, Return on capital employed (also expressed as a percentage). First we show graphical representation of the data to understand any issues or patterns which arise from the data, we then conduct univariate and bivariate analysis to find out if there is a correlation between profit sharing scheme (the dependent variable) with the independent variables (the six aforementioned variables) one by one, later the multiple variable analysis to discover if the overall model is significant or not, which means we explore if the six independent variable all together have an influence on profit sharing scheme or not. Finally a logistic regression analysis was run to find o ut the impact (positive or negative) that the six independent variables have on the profit sharing scheme. The SPSS computer program was used to conduct the statistical analysis while the excel software was used for the graphical visualizations. Graphical visualization helps us to visually explore and understand the pattern of a given data set. In this section we present the graphical visualizations of the variables. We begin by the Profit margin of company (expressed in percentage). The graph clearly shows that that none of the companies has managed to reach a profit margin of 35% and slightly few have a profit margin of below 5%. The highest profit margin recorded is 32.33% and the lowest profit margin is 4.4%. Figure 2 presents a graph of total assets of company; we observe that most companies had assets of between  £ 2000-8000 (millions). The company with the highest assets had  £ 13,686.62(millions) worth of assets while the lowest company had  £ 270.65 (millions) worth of