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

Financial Modelling - Research Paper Example, Total assets of company ( convey in millions), Extent of team working within the company (expressed as a percentage), Scheme (coded as 1 if company has a gain 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 vivid representation of the entropy to understand any issues or patterns which arise from the data, we then conduct univariate and bivariate analysis to take place out if there is a coefficient of 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 substance we explore if the six independent variable all together have an influence on profit sharing sche me or not. Finally a logistic regression analysis was run to find out the impact (positive or negative) that the six independent variables have on the profit sharing scheme. The SPSS data processor 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 a few(prenominal) have a profit margin of below 5%. The highest profit margin recorded is 32.33% and the net profit margin is 4.4%.Figure 2 presents a graph of total assets of company we observe that just about companies had assets of between 2000-8000 (millions). The company with the highest assets had 13,686.62(mil lions) worth of assets while the lowest company had 270.65 (millions) worth of