Discuss the key corporate governance issues. This will include internal corporate governance (e.g. internal control, independence of the board, role of audit committee, independence, accounting/financial expertise of audit committee, remuneration committee and nomination committee) and external monitoring/ governance (e.g. external auditor, independence and quality of external auditor, analysts following, institutional shareholding, dual listing etc.).
Groups will undertake this project for an Australian listed company, chosen by the group from a list of companies.[Our chosen company is Chesapeake Energy Corporation] To initially commence the project, you need to obtain the information on the chosen company.[Our chosen company is Chesapeake Energy Corporation] The report for this project will be prepared using economic, business strategy and industry analysis, corporate governance analysis, accrual quality, accounting analysis, financial analysis, forecasting, risk analysis followed by valuation of the company’s shares. The group will prepare a report that presents a case for the acquisition of substantial number of shares in the project company. It is suggested that the number of words/ sentences for each section/subsection are proportionate to the marks allocated. No appendix is allowed in the report. All tables and illustrations must be included in the main report. Tables, illustrations and charts are not included in the word count (unless very wordy). Reference list is required and is not counted towards the word limit. *THE PART I AM IN CHARGE OF ARE [Abstract, table of contents, introduction of the project and introduction of the company]&[ Capital market analysis]*I will provide detailed GUIDELINE documents later.[JUST REFER TO “FRONT END”&”SECTION A:CAPITAL MARKET ANALYSIS”] Please note that, currently, just need to finish these 2 parts.[Front End]&[ Section A: Capital market analysis] OTHER PARTS ARE BELONG TO MY OTHER GROUP MEMBERS. And our chosen company is Chesapeake Energy Corporation Also, please refer to the suggested approximate word count in the guideline; As for the “Front End” part, I think maybe around 600 words? ACF5130 Financial Statement Analysis and Business Valuation Business Valuation Group Project Report Structure and Guideline (Part I and II) Sections Sub-sections Suggestions on content Maximum marks Suggested approximate word count Front end Abstract, table of contents, introduction of the project and introduction of the company 3 Section A Capital market analysis 12 600 Share ownership Information on share ownership will include, the analysis of major shareholders (e.g. institutional shareholders) and the quality of these shareholders 2 100 Share trading and liquidity Information on the volume of trading and frequency of trading 2 100 52 weeks high and low Provide 52 weeks high and low share price. Include a 12 month stock performance chart of major competitors 2 100 News and disclosure analysis Analyse and comment briefly on all the major events (minimum 3), news and announcements in the last six months affecting the share price significantly. 3 150 Analyst coverage Investigate the analysts forecast dispersion, analysts opinion and earnings surprises 3 150 Section B Business Analysis 15 900 Macroeconomic Analysis Macro-economic analysis may include the impact of interest rates, exchange rates, a country’s demographic changes, global economic conditions (if applicable), the effect of an economic crisis. Social and political issues can also be considered if applicable. The economic analysis issues identified should be directly related to the company. A general discussion on economic issues without linking it to your company will not fetch marks. Link the macro economic analysis to the economy of your company’s markets 4 240 Industry Analysis (Porter’s five forces) Focus only on Porter’s five force analysis. No other analysis (e.g. PEST) is required. If a particular force is more important for your company, then focus more on that. Some form of statistical/numerical or illustrative (e.g. name of competitors, size of market) analysis will fetch more marks. Mere theoretical discussion of the five forces will not be sufficient. Segment analysis (both business and geographical) is important and required (if applicable) Choice of right competitive companies (for comparison) is important and has to be global companies (data on overseas companies is in Osiris) 8 480 Business Strategy Analysis Discuss the current strategies of the company, any planned strategies for growth/expansion and analyse whether these strategies are working to generate value. The strategy should be linked to the industry of the company and its macroeconomic environment 3 180 Section C Management quality and corporate governance analysis 8 400 Management quality Analyse the quality of senior executives of the company. The analysis will include comments on the education, experience, tenure, compensation and shareholding. 3 150 Corporate governance analysis Discuss the key corporate governance issues. This will include internal corporate governance (e.g. internal control, independence of the board, role of audit committee, independence, accounting/financial expertise of audit committee, remuneration committee and nomination committee) and external monitoring/ governance (e.g. external auditor, independence and quality of external auditor, analysts following, institutional shareholding, dual listing etc.). Comparison against best practice (one of top 50 listed firms) is recommended. 5 250 Section D Earnings quality 7 100 Quantitative Earnings Quality Assessment When assessing quality of earnings quantitatively, you need to consider measure of earnings persistence (EP) and discretionary accrual (DA). Data has to be provided.