讲解：Management、R、logarithm、RProcessing|R

IÉSEG School of Management2019-2020 Semester 1Quantitative Financial Analysis with RCase Study 2You are a financial analyst and your role is to conduct equity research on Europeancompanies. One of the companies you are following is developing a new line of business andits profits are expected to increase. The company already has an important amount of debtcompared to its industry peers. You are wondering if, with this additional profit, the companywill pay back its debt and reduce its financial leverage. Or whether the increase of the qualityof the company’s financials will make the company better able handle a large debt level. Thusthe company might decide not to reduce its leverage.You want to conduct an econometric analysis to check whether European companies tend toreduce their leverage when their profits increase, or whether they increase leverage withprofits.Looking into the research literature about the topic, you obtain the article by Frank and Goyal(2009) that conducts a thorough analysis on the topic of financial leverage for US companies.The main results of the paper are shown in Table V, Panel B (page 22). These results are thebenchmark for US companies. In your report, you should compare these results withEuropean companies.You gather data from the 1000 largest European companies, excluding the financial sector,real estate and holding companies (because in these sectors, leverage does not have the effectas for goods or servicesManagement代写、代做R程序语言、logarithm firms). In order to analyze the issue, you run a regression analysissimilar to the one in Frank and Goyal (2009), with book leverage as dependent variable(defined as total debt over total assets). The explanatory variables are Profits (defined asEBITDA divided by total assets), Tangibility (fixed assets over total assets), Market-to-Bookratio as a measure of growth opportunity (market capitalization divided by book value ofequity), Volatility, Liquidity (which is the current ratio: current assets over current liabilities),and possibly a measure relative to dividends. To control for the size effect, there are severalpossibilities (it is expected that large companies have better access to the debt market): thelogarithm of market capitalization, or the logarithm of total revenues, or the logarithm of totalassets. Since it is well known that the industry in which a company operates has an effect onleverage, it is important to control for industry. A commonly used method is to use industrydummies.InstructionsPlease write a full report. Work in teams of 2 or 3. Download and use the data available onieseg-online. The variables are defined in the Excel file. The deadline to submit the report isThursday November 21st, 2019, midnight. Submit the report by uploading it on the linkprovided on ieseg-online.ReferenceFrank, M.Z., Goyal, V.K., 2009, Capital structure decisions: Which factors are reliablyimportant? Financial Management, vol. 38, pages 1–37.转自：http://www.5daixie.com/contents/9/2835.html