ASSIGNMENT COVER SHEET
Submit your work using Turnitin in the course Wattle site on Friday
4 September by 8pm. One submission only from each group. Your submission should be a PDF file named as “Replication Project Report – Group #”.
Research School of Finance, Actuarial Studies and Applied Statistics
ANU College of Business and Economics
Australian National University Canberra ACT 0200 Australia www.anu.edu.au
+61 2 6125 0487
Group #
Student ID
(List each student’s ID)
Course Code and Name Instructor
Due Date
We declare that this work:
__________________
FINM4015/FINM8004 Advanced Corporate Finance Xianming Zhou
Friday 4 September 2020, by 8pm
upholds the principles of academic integrity, as defined in the ANU Policy: Code of Practice for Student Academic Integrity;
is original, except where collaboration (for example group work) has been authorised in writing by the course convener in the course outline and/or Wattle site;
is produced for the purposes of this assessment task and has not been submitted for assessment in any other context, except where authorised in writing by the course convener;
gives appropriate acknowledgement of the ideas, scholarship and intellectual property of others insofar as these have been used;
in no part involves copying, cheating, collusion, fabrication, plagiarism or recycling.
Initials
For group assignments, each student must initial.
Instruction: Students are required to conduct empirical analysis, in groups, using the given dataset to replicate indicated results reported in the following article:
Pan, Luyao and Xianming Zhou, 2018, CEO Compensation in Japan: Why So Different from the United States? Journal of Financial and Quantitative Analysis 53, 2261-2292.
This article and the dataset are posted on the course wattle site. Your submission should include your answer to each of the following questions and the related empirical results.
1. Reproduce the results in Panel A of Table 1. Describe how you obtain the results and use a table to report the results immediately below your description. (6 points)
2. Reproduce the OLS regression results in Table 3 (columns 3 and 4). In no more than 200 words, explain the result regarding the coefficient estimates for ln(SALES), LEVERAGE and CEO_OWNERSHIP (ignore the issues discussed in the article regarding differences between the OLS regressions and the truncated regressions). Use a table to report your result immediately below your explanation. (6 points)
3. Rerun the OLS regressions in Table 3 by excluding industry fixed effects. In no more than 200 words, discuss any meaningful differences in the results between with and without industry fixed effects. Use a table to report your result immediately below your discussion. (8 points)
4. Perform any test using the given dataset that is not included in this article and that you think is interesting. Use ONE table to report you result and, in no more than 200 words, explain your test and discuss your result. (3 bonus points)
5. At the end of your report, attach the program containing complete (or all parts of) statistical software commands that you use to generate all your reported results. This attachment is compulsory.
2 | ANU COLLEGE OF ARTS AND SOCIAL SCIENCES