Discuss about a research proposal…………………
TABLE OF CONTENTS
- INRODUCTION…………………………………………………………………3
- PURPOSE OF THE STUDY……………………………………………………..3
- LITERATURE REVIEW…………………………………………………………3
- JUSTIFICATION OF THE METHOD USED……………………………………5
- RESEARCH PLAN………………………………………………………………7
5.1. GUIDING QUESTIONS……………………………………………..7
5.2.1. SAMPLE PARTICIPANTS………………………………………7
5.2.2. DATA COLLECTION…………………………………………..7
5.2.3. DATA ANALYSIS……………………………………………..8
- REFERENCES………………………………………………………………………9
INRODUCTION
Green house gas emission has become an issue which need to be addressed the world over. The governments of different countries are implementing policy measures to help check the greenhouse gas emissions effects. Australia in its effort to check the green house gas emission on auto industry has embarked on a clean energy plans which involved introduction of carbon tax to the auto industry. The carbon tax introduced by the Australian government has impacted negatively on the Australian auto industry. It is making the auto industry suffer some financial burden. This is made worse by the fact that the auto industry is already suffering some financial consequences.
PURPOSE OF THE STUDY
The aim of the study is to come up with practical measures and strategies that the auto industry should take in order to avoid collapse and the financial crisis. It is clear that the grant which the Australian government offered to rescue the auto industry will be consumed by the carbon tax hence the industry should come up with practical ways to avoid further crisis or collapse.
LITERATURE REVIEW
Financial advisors commonly observe important differences among current and prospective clients in terms of financial numeracy, net worth, and financial management skills. This study show that these types of financial advisor’s observations and perceptions are accurate, and that individual differences on these three dimensions differ significantly based one a person’s financial risk tolerance. Findings suggest that individuals who exhibit the lowest level of financial risk tolerance tend to, be the least competent in terms of financial matters, have the lowest subjective evaluations of net worth, and experience the least satisfaction with their financial management skills (Ronald, 2010). The book test to the extent to which there are differences in financial risk tolerance based on, a linear combination of financial numeracy, net worth, and financial management skills. The outcome associated by the study of this book is workable application of for practicing financial advisors. The book measures financial numeracy, net worth, and financial management skills and test their applications. It is possible that these measures could be included in advisors data gathering and assists the advisors in the process of educating clients to receive their financial objective.
Enterprise risk management has emerged as a construct that ostensibly overcomes limitations of traditional risk management (Michael, et al, 2011). Risk management has been a widely debated topic from the early days of financial research, where it was considered irrelevant under perfect market conditions. The debate still continues today as firms adopt enterprise risk management programs and accounting. Finance academics also begin to investigate their effectiveness. The book covers the evolution of risks management program, its application and effectiveness. The book explains theories of how risk management practices can improve firm’s value and productivity. It identifies various value increasing benefits of risk management that can generally as reduction in expected cost related to the following: tax payment, financial distress, under investments, asymmetric information, and undiversifiable stakeholders. The study helps in understanding the reason that firms decide to hedge risks and provide theoretical justification for the link between risks management and the firm value. The risk management research has investigated non financial firms. The book uses a model to investigate the relation between risk management and the firm value.
Financial planners always found themselves in unprecedented environment in their life times. This has made very clear that the practice of portfolio management be taken seriously (Jerry, A, 2009). The event of 2008 and early 2009 served as painful reminder that precipitous market declines can and do occur with far reaching implications. Investors on all the points of the asset allocation spectrum saw the value their portfolio evaporates. Virtually all the asset class felt victim of to contagion, rendering portfolio diversification temporary impotent. Risk management experts do have duty to their clients to seek the best risk management solutions possible to help clients protect their assets. The book describes far more comprehensive view of risk management, one that took portfolio diversification and more generally investment risk management to a whole new level of sophistication. The book discuss responses to challenge and propose some key improvements in the conceptual approach to portfolio risks management and identify the tools needed to implement these enhancements. The improvements suggested are quite achievable.
JUSTIFICATION OF THE METHOD USED
In the article the Australian auto industry has been hit by financial crisis. The government came to intervention by providing grants to the auto industry. The grant was a good idea from the Australian government as it was meant to save the industry from collapse due to financial crisis. The grant was also meant to save the jobs which could be lost by the Australian citizens due to collapse of the auto industry. But as the grant was being provided by the Australian government they a gain introduce a law that will help them check the green house effect. They proposed a carbon tax on auto industries and all other industries that emit a carbon gas to the environment. The carbon tax introduced soon consumed the better part of the Grants which the government has provided to the auto industry. This again exposes the auto industry to financial constraints and there likelihood of imminent collapse in the auto industry in Australia (Sid, 2012).
To overcome the collapse of the auto industry in Australia the proposal has come up with three methodologies to help overcome the collapse. The three methods employed to address the issue are, financial risk tolerance, enterprise risks management, and portfolio management.
In financial risks management the proposal intend to find the most appropriate financial management practices that the companies should apply and implement to overcome the looming financial crisis in the auto industry (Ronald, 2010). The method is appropriate to address the issue mainly because the problems which the auto industry is suffering from are originating from lack of adequate funds within the auto industry. This is also compound with the current carbon tax which ha been just introduced in the country. Hence when the affected firms adopt an appropriate financial management system, they will be able to overcome the burden of tax and the financial crisis in the auto industry.
Another methodology is the use enterprise risk management practice to solve the issue (Michael, 2011). Since the auto industry in Australia has been hit by a financial risk, the use and implementation of the appropriate risk management policy will be a sound idea. The current financial crisis in Australia is a risk to every enterprise in the auto sector. Every enterprise therefore needs to come up with ways of risk management in their respective enterprises to overcome the effects of such risks which might results into financial losses to the companies or to some extent the collapse of the companies.
The last methodology used in the proposal is that of portfolio management.(Jerry, 2009). Portfolio management can also be used to address the financial crisis within the auto industry. The proposal will try and investigate the kind of portfolio activities that individuals firms within the auto industry can employ and implement to survive the crisis. The proposal will try to look at several investments portfolios that the firms can under take to help hem spread their financial risks and adjust to the carbon tax and financial crisis. The above three methodologies that the proposal employ will be adequately help to address the issue of financial crisis in the Australian auto industry.
RESEARCH PLAN
Guiding questions
The study will develop specific guiding questions in order to come up with practical solutions
The three major guiding questions that the study will try to answer in relation to the Australian auto industry are as follows: What are the financial management risks that your firm is employing when addressing the current financial crisis in the Australian auto industry?, which are the risks enterprise risks management practices that your firm currently employ during the financial crisis?, and lastly what other portfolio investment policy would you recommend for your company to cope up with the effect of carbon tax introduced by the government of Australia.
Sample participants
The participants of the study will be selected randomly within the Australian auto industry. When selecting the participants considerations will be taken on the sizes of the firms. A number of employees both at the management level and low level within the industry will be interviewed.
Data collection
The date collection method to be used will comprise of the following;
Interviewing of the selected participants, using both questionnaires and face to face interviews, these will be employed for the low level employees. Informal meeting will also be held especially when gathering data from experts within the industry and senior management staff. The study will also focus on observations of different trends within the industry. Finally there will be document study of different publication related to the issue within the industry.
Data analysis
The study will finally analyze the collected data a using various models and test their feasibility. The analysis will involve evaluating all the outcomes of the study. All of the data received from the study will be analyzed comprehensively using appropriate methodology and results of the analysis will be tested to ensure that it is accurate and can be applied to address the financial problem within the Australian Auto industry.
REFERENCES
Jerry, A (2009 ).Next generation investment risks management: Putting the modern back in the
modern portfolio. Journal of financial planning. 9(4), 98-125).
Michael, K. (2011). Does enterprise firm risk management increase firm value?.Journal of
accounting auditing and finance.10(7), 23-91).
Ronald,A (2010).Financial numeracy, net worth, and financial management skills: Client
characteristics that differ based on financial risk tolerance. Society of financial service professionals. 4(2), 7-8).
Sid, M. (2012) Carbon tax will eat car grants auto industry say clean energy plan will cost tens of
million dollars. Retrieved on May from http://global.factiva.com.ezproxy.uow.edu.au/redir/default.aspx?P=sa&NS=18&AID=9UNI018700&an=AUSTLN0020120111e81c00004&cat=a&ep=ASI
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