Finance Dissertation Ideas

Finance Dissertation Ideas - No. 1:

Is it time for banks to relax their lending criteria to help kick-start the UK economy?

There has been a great deal of discussion in the press recently in the wake of UK Government initiatives to kick start the economy by setting up a fund to lend to SME’s which comprise the greater part of the UK economy. However from a best practice financial perspective there are advantages for and against this. This study would critically examine the theoretical frameworks which support relaxed lending criteria, and also the arguments against relaxed lending in light of the potential difficulties.

Finance Dissertation Ideas - No. 2:

The benefits and risks of payday loans for businesses:

Recently firms such as Wonga.com have announced the launch of payday loans to small businesses which are unable to secure funding or finance from more conventional sources. This study would provide a critical review of the benefits and challenges this presents given the potential for small businesses to have high exposure to risk, but also to generate large amounts of revenue on a seasonal basis. The study would explore the implications of this option and assess whether there is a place in the market for such loans for businesses or whether it is so irresponsible it should be prohibited.

Finance Dissertation Ideas - No. 3:

Is executive pay justified and do shareholders have enough power to make a difference?

The recent shareholder spring has seen record numbers of small shareholders exercise their right to challenge executive pay, and the markets have seen considerable turbulence as a result. The two core arguments in support of large executive pay packets are that it is market rate to attract the highest calibre and (legally) it is the responsibility of the shareholders to manage and monitor it. The reality is that many majority shareholders are in fact the pension funds of other similarity large organisations. This study would critically examine this relationship in order to assess whether it is time for a change in legislation.

Finance Dissertation Ideas - No. 4:

Is good business, good business: a critical review of the financial impact of adopting principles of triple bottom line accounting:

The chairman of the Co-op, Peter Marks, was once quoted as saying that “good business, is good business”, meaning that in the longer term ethical and responsible business practices result in sustainable and profitable business which is low risk. This study would examine this statement against the theory of triple bottom line accounting (used by the Co-op) in order to assess the financial efficacy of this claim.

Finance Dissertation Ideas - No. 5:

Cross-border finance and exposure to the Eurozone – a considered review of the risks and realities in international finance:

The future of the Eurozone looks difficult and many businesses are exposed to various degrees of cross-border financing issues depending on the nature of their business and their levels of inter-continental exchange. This study would adopt a systematic approach to examining the likely risks of financial exposure to the Eurozone in various forms with a view to creating a realistic risk profile for international trade.

Finance Dissertation Ideas - No. 6:

Treatment of financial instruments in a volatile economy: A comparison of the UK and Greece:

There have been a number of key changes in respect of financial regulation and management over the last decade, with the most contentious issues remaining the treatment of IAS32 and IAS39 which address the handling of financial instruments. The principle difficulty being the subjective nature of the interpretation and the lack of consistency in cross-border situations which can be tempered by national requirements for disclosure (Bradshaw et al, 2010). This study would compare and contrast the treatment of IAS32 and IAS39 in the UK and Greece in order to assess the preference and the wider implications of that choice.

Suggested idea reading:

Bradshaw, M., et al (2010). Response to the SEC's Proposed Rule- Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards (IFRS) by U.S. Issuers. Accounting Horizons(24)1

Finance Dissertation Ideas - No. 7:

Investor confidence in Facebook – have the micro-investors been misled?

The recent Facebook float has left many small shareholders out of pocket, and this is not the first significant technology bubble which has deflated. Contemporary commentators are already drawing parallels between the situation with Facebook and the dot.com bubble of the late 1990’s when technology shares were also grossly over-valued. This study would assess the similarities and differences between these two periods and respond to the question of whether the small, less well informed investor has once again ended up carrying the cost.

Finance Dissertation Ideas - No. 8:

A critical review of the merits and demerits of E-commerce and crypto-currencies:

In 2009 an online experiment was launched with the aim of creating a free-floating crypto currency known as “bitcoin” (Barok, 2011). The currency has attracted significant attention across the internet as consumers consider it secure and flexible; indeed it can be used in many situations where traditional currencies are exposed to greater risk. However crypto currencies are not without their flaws and challenges and this study would provide a critical examination of the benefits and challenges of crypto-currency in the contemporary environment.

Suggested idea reading:

Barok (19th July 2011) Bitcoin: censorship-resistant currency and domain system for the people [online] available at http://pzwart3.wdka.hro.nl/mediawiki/images/archive/6/64/20110719200925!Barok.bitcoin.pdf  retrieved 27th May 2012

Finance Dissertation Ideas - No. 9:

The ethics of lending criteria – what risks should banks and financial institutions assess before they lend to SME’s:

At the height of the boom period in the mid-2000’s many individuals and businesses were able to secure sizeable loans and mortgages with relatively limited checks. Some five years later lenders now ask for a detailed breakdown of expenditure and outgoings and the number of credit products (at the time of writing) has dropped by over 65%. For many SME’s the rigidity of lending criteria, especially in the early days of existence is hampering business growth, and stifling the economy. This study considers the wider impacts and unforeseen consequences of excessively restrictive lending criteria and asks if it is time for new dimensions of risk to be developed.

Finance Dissertation Ideas - No. 10:

The relationship between growth and liquidity – a ten year review:

The theory in respect of forms of financing suggests that there is a tentative link between high levels of liquid finance holding and slow business growth (Kim et al, 1998). In the current climate where businesses are adopting an ultra-cautious view many are holding liquid assets until the market direction becomes more obvious. This study examines the relationship between assess, liquidity and growth over the last decade with a view to asserting the validity (or otherwise) of this correlation.

Suggested idea reading:

Kim, C.S., D.C.Mauer, and A.E.Sherman (1998) "The Determinants of Corporate Liquidity: Theory and Evidence," Journal of Financial and Quantitative Analysis.33 335-359