The following information concerns the preparation of your assignment for the Financial Econometrics module. The aim is to write an academic paper (informative and formal) by analysing the data provided using the statistics knowledge acquired so far in the module.
For this assignment/exam, your aim is to explore the following research question:
“What determines profitability of European banks?”
1) You are expected to write the research work on your own.
2) You have to use the data set for European banks (“eurozone.xls”) available on the school’s portal. The data relates to various characteristics of the individual banks.
3) You are free to use any of the variables provided as long as your analysis is meaningful and tackles the research question. Please note that you should use the statistics you believe more appropriate for best describing the data set.
4) Please do not include raw data at the end of the paper since this would only waste paper.
However, you should select data from the original data set to prepare your assignment.
Assignment Structure
There are different formats which could be used for this assignment but you may consider the following structure below for your work:
• Abstract
• Table of Contents
• Aims and Objectives
• Review of relevant literature and theory.
• Methodology and Data (including the definition of variables)
• Results and Discussion
• Conclusions and recommendations
• References
• Appendices (additional relevant material)
Further instructions
Your submission should include an appendix of the printouts of your Stata do-file (if applicable) and your Stata output. Your written report should contain all relevant estimation and hypothesis test results (as if you were writing for a journal article). Marks will be awarded for presentation, and you are encouraged to devise informative means for presenting the results, including tables where appropriate.
You may collaborate in working out how to run the estimations on Stata. However, you are required to write up your report independently, and I will require a separate and independent submission from each person.
Please come and ask if you are experiencing difficulties.