Analysis of companies financial information quality - Free Essay Example

Sample details Pages: 19 Words: 5762 Downloads: 3 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Purpose This paper aims to analyze financial information quality through financial and economic ratios, detecting whether they are affected by financial reporting standards; as well as, determining a group of factors that allow proving the capacity of ratios to measure accounting information quality, and thus, facilitate the analysis process to the groups of users. Design / methodology / approach For a sample of 111 companies from Madrid Stock Exchange and 32 from Eurostoxx50, descriptive analysis and non-parametric variance analysis were carried out during the period 2005-2007. At the same time, reduction data techniques were performed to detect the underlying main factors, specifically the principal component analysis (PCA) for the year 2007. Don’t waste time! Our writers will create an original "Analysis of companies financial information quality" essay for you Create order Findings It has been confirmed that financial information quality is affected by financial reporting standards; additionally, a group of factors in which financial and economic ratios group has been found. Practical implications This study provides evidences to measure financial information quality and the results can be useful to accounting users, as well as, contributing to literature related to this topic. Originality and value This study empirically shows, from the analyzed companies, that accounting information is affected by financial reporting standards. Additionally, some factors that group ratios are provided. Keywords Financial information quality, Ratios, Financial reporting standards, Accounting users, Kruskal-wallis Test, Principal component analysis. Type of document Research paper Introduction Financial information quality has been empirically approached since late 60s. The studies were focused on contrasting whether data provided by companies w ere really useful to accounting users. At first, some studies were concerned with investigating the information content (Ball and Brown, 1968).Then, at late 80s, a new orientation arose focusing on studying the relevance of information, using wider regression models to determine the relationship between financial information and market profitability (Ou and Penman, 1989a). It has also been observed that recent studies have focused on contrasting financial information quality in time. The models to show companies financial information have gone through important changes, specially, with the implementation of International Financial Reporting Standards (IFRS) to elaborate consolidated financial statements of companies listing in the stock exchange (Kenny and Larson, 2009). Among the harmonization changes in accounting, the measures taken on the transparency of information disclosure, a decisive factor, for the generation of quality accounting documents (Epstein, 2009) are distingui shed. Therefore, financial information quality plays a fundamental role to know the company ´s economic reality. Furthermore, the used financial reporting standards can have an effect on the quality of disclosed data; and, therefore, on the formulation of appropriate Financial analysis of financial statements, in which there can be decisive factors in the evolution and tendency of some indicators (Choi et al., 1983). It is important to notice, that ratios can be a reflection of financial information quality, from the financial reporting standards point of view, used to help understanding financial and economic events that affect companies. Within this context, the purpose of this empiric study is to analyze financial information quality through financial and economic ratios, specifically focusing on detecting whether ratios are affected by the financial reporting standards applied by companies. At the same time, this study aims to determine a group of factors that allow demonstrating the capacity of ratios to measure accounting information quality, as well as, facilitating the financial information analysis process to the groups of users. Therefore, the study included the analysis of financial information from a sample of companies belonging to Madrid Stock Exchange and Eurostoxx50 during the period 2005-2007. This has lead to consider the financial reports presented with the Local Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), as well as, individual and consolidated financial statements. The results obtained in this study reveal that some ratios show population averages differences, indicating that financial information quality is affected by the applied financial reporting standards. Additionally, a group of factors in which ratios group have been found, and they are, a way to measure the quality of companies financial and economic results by accounting users groups. Background and empiric predictions Financial information quality Financial information quality has been discussed in several studies, pointing out different aspects that lead to create new research lines. At late 60s, the accounting research took a new path, thanks to the utilitarian paradigm, leading to adopt a research methodology with a positivist approach that considers accounting as an information system. Consequently, the capital markets research line arose, this line researches accounting information performance for investors. The studies carried out by Ball and Brown (1968) and Beaver (1968) were pioneers. As a matter of fact, considering this research line, two work fields can be distinguished, on one hand, the research conducted to study information (information content and relevance), and on the other hand, the research that studies measuring. Regarding the studies on information, it can be mentioned that one of the examined aspects is related to the study of information content. That is to say, the market reaction is investigated in relation to the publication of earnings announcements. Some studies have indicated that market prices have a positive reaction in relation to earnings announcements (Weston, 1971). Therefore, Bae et al. (2008) working with a sample of Korean companies, found that the increments (decreases) of earnings announcements have a positive (negative) effect on the value of shares prices in the market. Meanwhile, other studies have pointed out the opposite (Su, 2003). It should be mentioned that some studies have considered the relationship between the negotiation volume and earnings announcements. Therefore, Choi and Choe (1998) stated that the volume of operations reacts when three-month earnings announcements are made. In this sense, some factors that will affect the negotiation volume, such as investors agreement degree (Garfinkel and Sokobin, 2006) or information asymmetry (Mahipala et al, 2009) can be distinguished. Some researchers have conside red the effects of earnings announcements in both, prices and volume of operations. Cheung and Sami (2000) analyzing a sample of companies from Hong Kong Stock exchange, and, the earnings announcements corresponding to the period 1992-1995, showed a significant reaction of prices and volume of operations when announcements were made. On the other hand, Ahmed et al. (2003) analyzing the negotiations during the period 1992-1995 (without on-line trade) and the negotiations during the period 1996-1999 (with on-line trade), demonstrated that three-month earnings announcements produce changes in shares prices and volume of operations when the negotiations are on-line. Other research papers have studied the delayed reactions in the market when the announcements (post-earnings announcement drift. PEAD) are made, due to problems related to earnings predictions. According to Bernard and Thomas (1989) PEAD incorrect measures can be grouped in false risk measures and other incorrect measures . In this sense, Zhang (2008) points out that the analysts prediction sensibility is associated with the costs and benefits of predictions. It is necessary to mention the considerations made in some studies about the reactions that accounting changes produce in the market, and, therefore, end up affecting prices. It should be estimated that the results of some studies have indicated that accounting changes do not have any effect on the market (Vigeland, 1981). Meanwhile, other studies have evidenced, for example, that the adoption of International Financial Reporting Standards generates changes in the market (Floros, 2007). The results of some studies have emphasized the relationship between the investors performance and changes in market prices. Caspar (2003) analyzing investors performance when presenting information, carried out by Danish companies, showed the presence of significantly abnormal results few days after the presentation. On the other hand, Chewning et al. (200 4) evidenced that sophisticated and not sophisticated investors have improved their abilities in the use of information. Therefore, the subsequent effects of their performances have been evident on market prices. Regarding studies of relevance, research papers on the anticipation of prices have been found, emphasizing time extension for profitability calculation. In this sense, Kothari and Sloan (1992) determined the expectations of future earnings, using price and earnings regression, corresponding to the multi-year prior period. On the other hand, Schleicher et al. (2007) worked with a two-year period in their regression model to estimate earnings. In relation to the studies of relevance and variables of results, some research papers have emphasized the relationship of profitability in view of changes and different levels of results. In this sense, Shroff (2002) shows the relationship of profitability with the levels of results. Meanwhile, other studies have determined the r elationship in both, changes and levels of results (Dumontier and Labelle, 1998). Regarding prediction studies, Ou and Penman (1989b) evidenced that the model based on accounting information was useful to predict earnings. Other researchers have also been concerned with this aspect (Skogsvik, 2008). It can be observed that profits predictions have an explanatory power for future earnings (Wu and Wang, 2000); so the accounting structure becomes a decisive factor for the carried out estimates (Fairfield et al., 1996). The ratios, factor analysis and principal component analysis The use of data multivariate analysis has allowed explaining accounting phenomena through the treatment of groups of variables. The availability of companies great quantity of data, due to financial and economic ratios disclosure has facilitated the use of this statistical tool. Some studies, using multivariate techniques have tried to determine a group of factors that synthesize economic and financial indicators, in conglomerate groups that facilitate, among other aspects, the measuring of companies information quality. Consequently, the most used multivariate techniques are the factor analysis (FA) and principal component analysis (PCA). Therefore, different studies have chosen to apply the factor analysis technique. Pinches et al. (1973) working with a sample of 180 industrial companies whose data were obtained from Compustat database, and using the varimax rotation, determined 7 factors (return on investment, capital intensiveness, inventory intensiveness, financial leverage, receivables intensiveness, short-term liquidity and cash position). In another study, Pinches et al. (1975) using the same sample of companies and ratios from the previous study, and applying the oblique rotation method, found the same factors. Short (1980) carried out a study selecting 259 industrial and commercial companies, considering data adjusted to inflation rate. Therefore, using varimax ro tation, 7 factors of historical ratios were found (return, capital intensiveness, asset turnover, financing policy, inventory turnover, working capital and current position), and, the same number of factors of price-level ratios (return, capital intensiveness, asset turnover, financing policy, inventory turnover, working capital and cash position). The previous ideas are consistent with those stated by Yli-olli and Virtanen (1989) and Liao (2008). Other studies have preferred to apply the principal component analysis. Stevens (1973), selecting a sample of 80 industrial companies, reduced 20 ratios to 6 factors (leverage, profitability, liquidity, activity, dividend policy and price and earnings). Pinches and Mingo (1973) examining 180 industrial companies with the varimax rotation method, determined 7 factors in which the indicators (size, financial leverage, long-term capital intensiveness, return on investment, short-term capital intensiveness, earnings stability and debt cover age stability) are grouped. Laurent (1979) selected a sample of 63 companies that were analyzed with the varimax rotation method, 10 components (return on investment, leverage, working capital, fixed assets, long-term solvency, liquidity, cash position, stability of debts coverage, self-financing policies and credit policies) were proposed. These ideas are consistent with Chen and Shimerda (1981), Sorensen (2000) studies. Hypothesis formulation The measuring of ratios began to be developed in the United States to carry out financial analysis, acquiring relevance in the financial sector, specifically in the analysis of credit risk and management. In the course of time, studies on ratios-type use and ratios groups modeling arose. Therefore, considering the idea that a ratio is meaningless by itself, and, so that its interpretation is valid, it is compared with an internal standard (based on true data conveniently settled), or with an external standard (corresponding to other organizations in a similar situation). From the 20s on, ratios are used in inter-companies comparative studies, to overcome the difficulties of carrying out comparisons in the technical-industrial field. As a consequence, some patterns arose allowing characterizing the differences in corporations organizational structure. Therefore, the ratio-type employment has made possible the analysis of groups of companies in similar situations with certain characteristics (Mulla, 2003). FitzPatrick (1932) carried out one of the first studies that lead to develop the descriptive stage of financial analysis through ratios. The study consisted on three documents, in which the use of ratios to determine companies bankruptcy was proposed. Then, the predictive stage was started, focusing on the analysis of ratios prediction capacity. Beaver (1968) was one of the pioneers. He emphasized the analysis of ratios through statistical advanced methods to prove their predictive capacity. He also point ed out that ratios are accounting data that can be evaluated due to their usefulness that is defined in terms of their predictive capacity. Additionally, it is necessary to mention that the evolution of the international harmonization accounting process has been estimated during some time. This has been highly related to economic and institutional events that affect financial information (Kenny and Larson, 2009). In this sense, reforms in the juridical international regulations due to the adoption of IFRS has supposed, on one hand, benefits for companies (Epstein, 2009); and on the other hand, changes in the presentation of information. However, the existence of one accounting system has brought some problems related to accounting, juridical and economic aspects (Slot and Gerrits, 2009); and for that reason, in some cases, it has implied IFRS adaptations to each country ´s social reality to prepare and communicate financial information (Tsakumis et al., 2009). Consid ering the previous ideas, some studies have discussed the implicit changes in the formulation of financial statements with IFRS application and their implications in the quality of accounting information. Therefore, Choi et al. (1983) developed one of the first studies approaching this topic, comparing financial reports elaborated with the American GAAP and the reports elaborated with the Japanese and Korean GAAP. The results prove that ratios show significant differences, due to different factors related to regulatory aspects in each country. Jun and Wang (2001) showed some significant discrepancies in the disclosed data and in the main financial ratios examining the financial information of three Chinese companies, elaborated with China GAAP, Hong Kong GAAP or using IFRS, during the period 1995-1998. Meanwhile, Duangploy and Gray (2005) when comparing Japanese and American companies financial reports showed that the financial reporting standards, applied in each country, affect ratios. Agca and Aktas (2007), when comparing the obtained ratios with financial reports elaborated with IFRS and Turkish GAAP, found significant differences. Considering ratios empiric antecedents and studies that support information quality, considered from the financial reporting standards application changes, the hypotheses are formulated as follows: Hypothesis 1 (H1): the values of profits ratios and financial information quality are affected by the financial reporting standards used by companies. Hypothesis 2 (H2): the values of operational ratios and financial information quality are affected by the financial reporting standards used by companies. Hypothesis 3 (H3): the values of structure ratios and financial information quality are affected by the financial reporting standards used by companies. Hypothesis 4 (H4): the values of per employee ratios and financial information quality are affected by the financial reporting standards used by companies. Research design and Sample selection Study design The financial information of the selected companies from Madrid Stock Exchange and Eurostoxx50 was examined at an initial stage. Data were obtained from Amadeus Database. At first, the companies financial statements from the period (2005-2007) were reviewed; and, considering the characteristics of the obtained data, the financial information was classified into four groups: a) individual financial statements elaborated with the local Generally Accepted Accounting Principles (IFS-GAAP), b) consolidated financial statements elaborated with the local Generally Accepted Accounting Principles (CFS-GAAP), c) individual financial statements elaborated with International Financial Reporting Standards (IFS-IFRS) and d) consolidated financial statements elaborated with International Financial Reporting Standards (CFS-IFRS). Furthermore, data were grouped according to the economic sector of the companies activity area, aspect that will be useful when making statistical cont rasts. In the case of Madrid Stock Exchange companies, the separation issued on January, 1, 2005 for all companies admitted to list in the Spanish Stock Exchange was selected. In the case of Eurostoxx50, the companies were treated as an additional sector to have a general idea of their performance. It is necessary to point out that there were companies belonging to both Markets (Repsol YPF, Endesa, Iberdrola, Arcelor, Bayer and Telefà ³nica) when the study was carried out. At a second stage, ratios that will help to examine financial information quality were selected. It is evident that the indicators obtained from accounting data are numerous. That is why, it is necessary that the selection must be as relevant as possible. Therefore, a revision and a comparison with ratios selected in other studies (Stevens, 1973 and Pinche and Mingo, 1973) have been made. It was chosen to use the ratios presented in Amadeus database, considering that most of them are similar with those used in other mentioned studies; additionally, due to their revealed data reliability and consistency, avoiding them to be significantly different from one period to another. In table 1, the relationship of the 26 selected ratios and the calculation form are shown. Table 1. Ratios used in the analysis of financial information quality Variable Ratios Calculation form Profitability ratios X1 Return on shareholders funds (%) (Profit (loss) before taxation/shareholders funds)*100 X2 Return on capital employed (%) ((Profit (loss) before taxation + interest paid)/(shareholders funds + noncurrent liabilities)) * 100 X3 Return on total assets (%) (Profit (loss) before taxation/total assets)* 100 X4 Cash flow by sales volume (%) (Cash flow/turnover)* 100 X5 Profit margin (%) (Profit (loss) before taxation/operating revenue (turnover) * 100 X6 Gross margin (%) (Gross profit/operating revenue)* 100 X7 EBIT margin (%) (Earnings before interest and taxes/operating revenue)* 100 X8 EBITDA margin (%) ((Earnings before interest, taxes, depreciation and amortization)/operating revenue) * 100 Operational ratios X9 Net assets turnover Operating revenue (turnover)/(shareholders funds + noncurrent liabilities) X10 Interest cover Operating profit (Loss)/interest paid X11 Stock turnover Operating revenue (turnover)/stocks X12 Collection period (days) (Debtors/operating revenue (turnover)) * 360 X13 Credit period (days) (Creditors/operating revenue (turnover) * 360 X14 Exportation sales volume by sales volume Exportation sales volume/total sales volume Structure ratios X15 Current ratio Current assets/current liabilities X16 Liquidity ratio (Current assets stocks)/current liabilities X17 Shareholders liquidity ratio (%) Shareholders funds/noncurrent liabilities X18 Solvency ratio (%) (Shareholders funds/total assets) * 100 X19 Gearing (%) ((Noncurrent liabilities + loans)/Shareholders funds) * 100 Per employee ratios X20 Profit per employee (monetary value) Profit (loss) before taxation/number of employees X21 Operating revenue per employee (monetary value) Operating revenue/number of employees X22 Employees costs per operating revenue (turnover) (%) (Cost of employees/operating revenue (turnover) * 100 X23 Average cost per employee (monetary value) Cost of employees/number of employees X24 Shareholders funds per employee (monetary value) Shareholders funds/number of employees X25 Working capital per employee (monetary value) Working capital/number of employees X26 Total assets per employee (monetary value) Total assets/number of employees Methods In relation to the kruskal-wallis test, it can be noticed that it is a non-parametric test equivalent to ANOVA, used to compare population medians in case data are not normally distributed. The hypotheses are defined by: H0: The k medians of variables are all the same. H1: At least one median from one of the variables is different. Therefore, the observations of k random samples are placed in growing order of magnitude, assigning ranks to each one of the variables to determine the ranks for each sample. Regarding the statistic to test, this follows a distribution with k-1 free grades. In relation to the principal component analysis (PCA), it is a multivariate statistical technique to reduce the number of variables to a smaller number, losing as less information as possible (Foguet, 1989). At the same time, it is able to identify a group of fictitious variables formed from the co mbination of those previously observed. Therefore, it is possible to synthesize data and to relate them without making any previous hypothesis about the meaning of each initial factor. The new principal components will form a linear combination of origin variables and each one of them is independent. It should be added that the kruskal-wallis test and the principal component analysis were run using the statistical program SPSS (Statistical Package for Social Sciences), version 15.0. Sample The population subject of study is formed by companies listing in Madrid Stock Exchange and Eurostoxx50. The sample submitted to observations is constituted by all productive sectors, excluding the financial and real estate sector, because it is regulated by specific standards. Therefore, companies in the sample have increased to 111 belonging to Madrid Stock Exchange and 32 to Eurostoxx50. In table 2, it is proved that most companies presented consolidated financial statements with th e International Financial Reporting Standards (CFS-IFRS), specifically 75,52%, while 9,79%, (CFS-GAAP), 6,29%(IFS-GAAP) and 8,39% (IFS-IFRS). It is also important to mention that in the market group structure, it is observed that 73,4% belong to Madrid Stock Exchange and 22,4% to Eurostoxx50. Table 2. Listing market and financial statements from the period 2005-2007 Market group Financial statements from the period 2005-2007 IFS-GAAP CFS-GAAP IFS-IFRS CFS-IFRS Total f % f % f % f % f % Madrid Stock Exchange 8 88,9% 2 14,3% 12 100,0% 83 76,9% 105 73,4% Eurostoxx50 0 ,0% 11 78,6% 0 ,0% 21 19,4% 32 22,4% Both markets 1 11,1% 1 7,1% 0 ,0% 4 3,7% 6 4,2% Total 9 100,0% 14 100,0% 12 100,0% 108 100,0% 143 100,0% In table 3, it can be observed that (CFS-IFRS) have been applied in most companies, approximately 65%, grouped in the sectors of basic materials, industry and construction, consumption goods and consumption services. At the same time, a significant participation of Eurostoxx50 group can be observed. Table 3. Productive sectors and financial statements during the period 2005-2007 Productive sectors Financial statements from the period 2005-2007 IFS-GAAP CFS-GAAP IFS-IFRS CFS-IFRS Total f % f % f % f % f % Oil and energy 1 11,1% 0 ,0% 0 ,0% 12 11,1% 13 9,1% Basic materials, industry and construction 4 44,4% 1 7,1% 3 25,0% 28 25,9% 36 25,2% Comsumption goods 3 33,3% 1 7,1% 7 58,3% 24 22,2% 35 24,5% Consumption services 1 11,1% 0 ,0% 2 16,7% 18 16,7% 21 14,7% Technology and telecommunications 0 ,0% 1 7,1% 0 ,0% 5 4,6% 6 4,2% Eurostoxx50 0 ,0% 11 78,6% 0 ,0% 21 19,4% 32 22,4% Total 9 100,0% 14 100,0% 12 100,0% 108 100,0% 143 100,0% Descriptive analysis and hypothesis verification Group 1. Profitability Ratios When examining the results, it is observed that mean values of variables are heterogeneous, even, negative values are shown for the IFS-GAAP subgroup, similarly occurred to the variables: return on shareholders funds (X1/2005: -2,492 and X1/2007: -26,082), return on capital employed (X2/2005: -69,791 and X2/2007: -11,267) and return on total assets (X3/2005: -13,015 and X3/2007: -3,883). Additionally, it is necessary to mention that the variable gross margin (X6) from this subgroup does not have available data in any of the analyzed years. In relation to the results of the descriptive statistics, it is proved that there are distributions far from normality, with high values of asymmetry and kurtosis, as it is the case of the CFS-GAAP group from the variables: return on shareholders funds (X1/2006: -3,092 and 10,812), profit margin (X5/2006: -3,197 and 11,456) and EBIT margin (X7/2006: -2,864 and 9,150). The kruskal-wallis population equality t est has been considered to contrast the hypotheses related to the relationship of each one of the defined ratios and the group type to show financial information. The hypothesis to be proved is that the mean values of the considered ratios do not show differences, according to the financial reporting standards applied to present financial statements. Regarding H1 contrast results of mean ranks for this period, it is deduced that there are differences in population averages (p 0,05) in the financial presentation for the variables: Return on shareholders funds (X1/2007: 0,021), Return on capital employed (X2/2005: 0,007), and Return on total assets (X3/2005: 0,012). While in the other analyzed ratios, there are not significant differences. Therefore, the differences found in some ratios population averages prove that financial information quality can be affected by the used financial reporting standards. Group 2. Operational Ratios In relation to the descriptive statistics o f operational ratios during the period 2005-2007, it was observed that dispersion is really high. This proves that mean values vary in the studied variables. There are also distributions far from normality, with high values of asymmetry and kurtosis, as in the group (CFS-IFRS) with the variables: stock turnover (X11/2005: 4,631 and 26,072; X11/2006: 5,568 and 37,406 and X11/2007: 4,890 and 28,913), net assets turnover (X9/2005: 4,444 and 30,605), interest cover (X10/2005: 5,249 and 35,238) and collection period (X12/2006: 2,868 and 15,622). The H2 contrast proves that there are significant differences in population averages (p 0,05) in the financial information presentation for the variables: collection period (X12/2005: 0,029) and credit period (X13/2005: 0,001 and X13/2006: 0,002 and X13/2007:0); while the rest of variables do not show significant differences. Therefore, from the obtained results, it can be deduced that financial reporting standards can influence financial inf ormation quality. Group 3. Structure Ratios The exam of the descriptive analysis results, first of all, indicates that mean values vary in the studied variables. Distributions far from normality are also proved, such as in the (CFS-IFRS) group, the asymmetry of the variable current ratio (X15) in the years 2005 (2,163) and 2007 (6,831). Similarly occurred to the kurtosis of the same variable X15 in the years 2005 (8,768) and 2007 (54,570). The H3 contrast results allowed to determine that there are differences in population averages (p 0,05) in the financial information presentation of current ratio (X15/2005: 0,001, X15/2006: 0 and X15/2007: 0,003), liquidity ratio (X16/2005: 0, X16/2006: 0 and X16/2007: 0,001), shareholders liquidity ratio (X17/2005: 0,004) and gearing (X19/2005: 0,001); meanwhile, there are not significant differences in other years. Therefore, this result allows verifying that financial information quality is affected by the existence of differences in population averages in some of the analyzed variables. Group 4. Per employee ratios The descriptive statistics for this group of ratios reveals that mean values vary in the studied variables, and, distributions far from normality are observed. Additionally, high values of asymmetry and kurtosis are detected in some variables. This can be observed, for example, in the asymmetries of (CFS-IFRS) group from the profit per employee (X20/2005: 3,256, X20/2006: 2,788 and X20/2007: 7,972), operating revenue per employee (X21/2005: 2,865, X21/2006: 2,517 and X21/2007: 7,460), and, shareholders funds per employee (X24/2005: 2,306, X24/2006: 2,092 and X24/2007: 5,035). H4 is confirmed and it is evident that there are differences in population averages (p 0,05) in the presentation of financial information, specifically for the variables: average cost per employee (X23/2005: 0,018 and X23/2006: 0,026) and total assets per employee (X26/2005: 0,026). Furthermore, it is proved that the other variables do not show significant differences. Therefore, the results allow concluding that financial information quality is affected by the applied financial reporting standard, due to the differences in population averages in one of the variables. The carried out descriptive analysis has made possible evaluating the wide variability of ratios analyzed in different periods. This has proved that dispersion ranks vary according to the variables of the study. The results with IFRS application showed significant differences in population averages (p 0,05) in some variables, such as Return on shareholders funds (X1), Return on capital employed (X2) and Return on total assets (X3). As a result, the financial information quality has been affected. In relation to the hypotheses contrast, it has been possible to prove that information quality is affected by the financial reporting standards used in the four empiric contrasts (H1, H2, H3 and H4). This results are similar to other s tudies (Henry et al., 2009 and Lantto and Sahlstrà ¶m, 2009). Principal component analysis (PCA) for ratios for the year 2007 In this section, the principal component analysis technique is used to make tests to reduce variables (ratios), and, to determine independent ratios categories, for avoiding multicollinearity in the results of the analysis. The group of ratios, analyzed with the application of the multivariate technique for the year 2007, is explained in the methods section. Therefore, the main purpose of the analysis is to obtain a data matrix from mxn, m rows (companies) by n columns (ratios). Once all variables were introduced, it was proved that the obtained data offered a non-positively defined matrix, this prevents from applying PCA. Therefore, those with lost or disproportionate values in relation to the others were excluded. As a result, using the matrix of reproduced and residual correlations, and making an individual analysis for each variable, it was detected that the variables: X6, X14 (due to lost or not available values), X10, X11 and X22, in some cases, have high correlation value s or extremely low ones. At the same time, they show high residual differences. Indeed, these variables affected the results of the analysis, and, therefore, this can cause the matrix to be indefinite, suggesting its progressive elimination. Consequently, when variables are eliminated, it is observed that the obtained new matrix is positively defined and the analysis is carried out. In relation to the results of the previous tests, excellent data suitability is found, making PCA possible. Specifically, with a high Kaiser-Meyer-Olkin sampling suitability average of (0,63), and a Bartlett sphericity test with a significant high value of (ÃÆ' Ãƒ ¢Ã¢â€š ¬Ã‚ ¡2 = 3492,06 and p = 0,000), it can be proved from the analysis that the significance is perfect. Regarding the communalities obtained for each variable, once the extraction was carried out, it can be proved that all the variables show communalities higher than zero, with high values that approximately vary from 0,62 to 0,95, so the variance proportion is explained by the factors generated in the analysis. Regarding, the extraction method shown in table 4, it can be said that the factor solution that adjusts the best to the observed correlations converges on six factors. Therefore, with an accumulated explained variance of 87%, and considering that the first two factors explain around 44% of the total variance, these values are high enough to determine that six is a number of appropriate factors to explain the group of variables. Table 4. Explained total variance (PCA-2007) Component Initial Autovalues Saturation addings at square extraction Saturation addings at square rotation Total % Variance % acumulated Total % Variance % acumulated Total % Variance % acumulated 1 6,130 29,192 29,192 6,130 29,192 29,192 4,684 22,304 22,304 2 3,821 18,194 47,386 3,821 18,194 47,386 4,562 21,725 44,029 3 3,441 16,385 63,771 3,441 16,385 63,771 3,003 14,302 58,331 4 2,318 11,036 74,807 2,318 11,036 74,807 2,557 12,178 70,508 5 1,653 7,873 82,680 1,653 7,873 82,680 1,827 8,698 79,207 6 1,045 4,975 87,655 1,045 4,975 87,655 1,774 8,448 87,655 7 ,673 3,204 90,859 8 ,577 2,746 93,605 9 ,357 1,700 95,305 10 ,217 1,032 96,337 11 ,186 ,886 97,223 12 ,157 ,749 97,972 13 ,128 ,611 98,584 14 ,077 ,366 98,950 15 ,070 ,333 99,283 16 ,042 ,199 99,482 17 ,030 ,141 99,623 18 ,026 ,123 99,746 19 ,025 ,119 99,865 20 ,017 ,081 99,946 21 ,011 ,054 100,000 Extraction method: Principal Component Analysis. The following step was to obtain a simpler interpretation of factors using the promax rotation method. Therefore, it can be observed that the solution converged on 6 iterations. The first factor that explains 29,19% of the variance, shows strong weighing in the variables related to the following ratios: X20 (profit per employee, 0,932), X21 (operating revenue per employee, 0,945), X23 (average cost per employee, 0,877), X24 (shareholders funds per employee, 0,933), X25 (working capital per employee, 0,702) and X26 (total assets per employees, 0,885). Consequently, it is reasonable to define this component as a dimension of employees potential. It is also important to mention that the factor loadings of variables are shown with clear and high saturations in this factor. The second factor that explains 18, 19% of the total variance, shows its most significant positive loading factors in variables X1 (return on shareholders funds, 0,937), X2 (return on capital employed, 0,912) and X3 (return on total assets, 0,929); while the lowest loadings are observed in variables X4 (cash flow by sales volume 0,667) and X5 (profit margin, 0,864). Therefore, this factor gives an idea of the profitability, so it is convenient to label it as profitability potential. When contrasting these results with Pinches et al. (1973) results, it can be noticed that variables X1 and X3 grouped in the factor Return on investment, and variable X4, in the factor labeled capital intensiveness. Meanwhile, according to Stevens (1973) variables X3 and X5 are in agreement with the factor profitability. The third factor is integrated by variables X15 (current ratio, 0,965), X16 (liquidity ratio, 0,959) and X17 (shareholders liquidity ratio, 0,933). Additionally, it saturates with high and positive factor loadings, higher than 0,75, explaining 16,38% total variability of ratios. This component is labeled operability potential. It should be mentioned that in Pinches et al. (1973), variables X15 and X16 are correlated in the factor short-term liquidity. The fourth factor, with an explained variance percentage of 11,03%, would be associated to variables X7 (EBIT margin, 0,866), X8 (EBITDA margin, 0,788) and X9 (net assets turnover, -0,664). As a result, considering the variables characteristics, this component has been labeled investment potential. Besides, assuming a linear combination of these variables, it can be observed that variable X9 shows a weighing of 0,664 in opposite direction to the rest of variables from this factor. On the other hand, in relation to variable X7, Pinches et al. (1973) group it in the factor Capital Intensiveness, Stevens (1973) in the factor profitability. The fifth factor that explains 7,87% of the variance, would be associated to variables X12 (collection period, 0,910) and X13 (credit period, 0,780). This factor is labeled credit potential. Finally, the sixth factor with an explained variance percentage of approximately 4,97%, woul d be associated to variables X18 (solvency ratio, 0,873) and X19 (gearing, -0,894), and it is labeled potentiality of high operability. It can also be noticed that the variable gearing, with a factor loading of 0,894, goes in an opposite direction in relation to the other identified variable in the component. It should be emphasized that variable X19 groups in the factor leverage according to Stevens (1973). The principal component analysis, carried out from the ratios corresponding to the year 2007, has allowed knowing the main relationships among variables, generating groups from the correlations between them. It is necessary to state that high factor loadings were observed in the performance of the components employees potential and profits potential. Regarding the other factors, with lower values in the factor loadings; they do not contradict the found solution. However, it affirmatively indicates the polarization among the factors with higher or smaller explanatory capacity of data variance. Conclusions The carried out analyses made possible achieving the objectives of this study, which are related to the analysis of financial information quality, evaluating whether financial and economic ratios are affected by changes in financial standards applied by companies (Local GAAP or IFRS). At the same time, it was possible to determine a group of factors that allow proving the capacity of ratios to measure the quality of accounting information, as well as, facilitating the information analysis process to different groups of users. Additionally, the sample of selected companies belongs to Madrid Stock Exchange and Eurostoxx50. Financial statements from the period 2005-2007 were used. At the same time, a group of indicators (ratios) were considered to carry out the respective statistical measurements. The results obtained from the empiric contrast, once the medians were compared between the applied financial reporting standards for the financial statements presentation and the ratio s from the period (2005-2007), show that in all the hypotheses (H1, H2, H3 and H4) there are differences in population averages in the financial presentation. Therefore, it is proved that financial information quality is affected by financial reporting standards. These results lead to think that one of the reasons for this performance is possibly attributed to the idea that one financial reporting standard is better than the other. It could also be considered the interpretations that are made out of regulations, so that they do not affect the quality of disclosed data. This could justify the obtained results. The results of the principal component analysis (PCA) for the year 2007, allowed to group variables in six factors related with employees potential, operability potential, investment potential, credit potential and high operability potential. Therefore, the applied multivariate technique (PCA) has enabled to empirically check the capacity of ratios to measure financial infor mation quality. Additionally, the found factors are only an alternative to group variables to make sense out of the interpretation of ratios from a theoretical point of view. Consequently, the results could be an alternative way for accounting users to analyze accounting information. Finally, the findings suggest continuous improvements in financial reporting standards applied to financial statements; so that, companies operations disclosed data fulfill some quality requirements, on behalf of accounting users. At the same time, it should be allowed that report analyses through accounting ratios, must be provided with interpretations as true as possible of the entity ´s financial and economic reality.

Self Esteem Essay - 980 Words

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WW IJuly28,1914, declarationofwar Austria

WW IJuly28,1914, declarationofwar Austria-Hungary Essay Ww2 on Serbia,hostilities between Allied CPcont untl the signg of the armistice on November11,1918. Casualties land force amoun +37 mil close 10 mil death amng the civilan pop. were caused indirectly by the war. Despite worldwide hopes that the settlements arrived at after the war would restore world peace on a permanent basis, WW I actually providd the basis for even more devstting conflt. defeated Cp declared their aceptce of Pres Wilson 14 pont as the bass for the armitice expectd the Allie to utilize the principle of the 14 pont as the foundion for the peace treatie. On the to the subseqt peace conferences with the determton to exact from the CP the entire cost war, to distrbte amng themsls territore posseins of the defeatd nations acordng formulas secretly 1915 -1917, before US in war. Pres Wilson, peace talk, at 1st insted that the Paris Peace Conf acept the ful progrm 14 points, but secure the support Allie all-importt 14th point, creation asocition nations, abandoed insist ence some other points. *** The Reformation 16th cenmovement in WestChristdom purge church medievalabuses restore doctrines practice reformers believed conform Bible NewTestament model church. Explorer motivated curiosity, desire find rich, by need find place surpluspopulations.have explored accident, other result military campaign, most explored bydesign. Colonizatn, brought by expltion, frequenty resuted further exploratn.At deph depresin 1933 American worker every 4 out job.In countries unemplt went 15%25 labor force.gret industral slump cont.throut 30sshakng foundtion West capitam society baseduponit.***AGE DISCOVERY- Spain, painter during Renaissance never fully achieved modernity found north Europe Italy, althogh ther art almst totaly depedet two tradition. Spanish alway imprted painter sculptor important decorative work. 16th cent, Titian leading painter Spanish court, although he not actually present. architecture, fully Renaisance structure not built until late century . byMadrid, architect PhilipII built El Escorial, combing monastery,seminary,palace,church. IndebtedItalian Renaisace style, taustere majestycomplete lack ornamentation structure mark new style Spanish arch.*** German reformation-union indpedet Grm state north Main River, formed 1867under Prussia initiative foreign minister, Otto von Bismarck. Prussia Austria Seven Weeks War1866, established conf north German state. NorthGermanConf replacd German Conf,union 39 German state under Austria leade had established by Congress Vienna end Napoleonic War. 22German state adhered North German Conf. Acrding agreement, each retained owngover but military force control conf; commander chief combined armie king Prussia. legislative body created; president ;king of Prussia, but duties office performed chancellor, responsible only king. Alliance entered betwen North German Conf ; importat state south Mainnamely, kingdom Bavaria Grand Duchy Baden, ; kingdom Wrttembergunder these states agreed place m ilitary forces under command king Prussia incase war against conf. North German Conf important step toward unification Germany, finaly achieved 1871end Franco-Prussian War. After victory war, states North German Conf ; remaining state frmer German Conf formed German Empire.constitution conf adopted slight modification constitution empire.***WW2- war began Europe Sept. 1,1939, Germany attacked Poland, ;ended Sept. 2, 1945, formal surrender Japan aboard U.S.battleship Missouri Tokyo Bay. victorious Allies included Great Britain, France, the United States, the USSR, and China. The losing side comprised Germany, Italy, ; Japan, smaller nation. Words/ Pages : 526 / 24

The Biggest Environmental Problem Essay Example

The Biggest Environmental Problem Paper There can be some natural impacts. Native people in many lands lived in harmony with their environment for thousands of years. The Native Americans and Australian Aborigines, for example, used only what they deed, and did not pollute their environment or alter it negatively and permanently. Fortunately, man is learning (a little too late) that there are activities he can undertake to improve land he has already degraded. This may involve: ; conservation, monitoring of and captive breeding programmed for endangered species ;restoring degraded ecosystems by planting trees specifically native to the area, and removing introduced species ; removal of pollutant materials 3. Questions to consider: ; What is the biggest environmental issue the earth faces? ; Where on the Earth is this issue? ; Who does this effect? ; Why it is the biggest issue the Earth faces? ; What statistics or relevant information is worth knowing about your topic? ; What future concerns are there? The environmental problem that must be considered as the biggest is the Global Warming. Temperature is slowly increasing all over the world. To understand this better it is also important to explain the greenhouse effect. The greenhouse effect in a summary: Sunlight radiates from the sun, through space, to earths atmosphere. The sunlight enters the atmosphere and hits the earth. Some of it turns to heat energy in the form of infrared light. The heat absorbs by surrounding air and land, which, in turn, makes it warm. Infrared rays that are remitted into the atmosphere get trapped by the greenhouse gases. When the infrared light tries to leave the atmosphere, some of it will be absorbed by the greenhouse gases and is remitted back to the earth. The Infrared light that is remitted back to earth then warms it more. Some of the naturally occurring gases in the atmosphere are carbon dioxide and methane. This is the way the earth keeps itself warm enough for human habitation. We will write a custom essay sample on The Biggest Environmental Problem specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Biggest Environmental Problem specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Biggest Environmental Problem specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The problem is that more and more carbon dioxide are added into the atmosphere by burning fossil fuels for power, transportation, and producing mass quantities of goods in factories. As if this were not enough, thousands and thousands of trees are cut down for lumber, making them unable to take carbon dioxide out of the air and replace it with oxygen. One effect of Global Warming would be rising sea levels. If Global Warming rise the temperature at the ice caps, great amounts of ice will melt, letting all he fresh water flow into the ocean. Tons and tons of ice will melt if the temperature rises high enough with the cause of sea levels to dramatically rise. Another effect of Global Warming would be severe weather. A change in temperature would mean a significant change in weather, in many places. As the weather grows warmer and more tropical, so does the weather. Many areas are experiencing changes in the weather as an effect of Global Warming intensifying winds, rains and storms. Not only considering mankind as the cities of the Global Warming also must the animals be considered. Many animals may become endangered or extinct because of the climate change is, that are happening rapidly. Animals will find their homes disappearing when trees are cut down or dead because of drought. Drowning might also be a consequence when animals are over taken by water when rivers and streams rise. This will force people and animals together even more in an overpopulated world. With the fact that the greenhouse effect also will provide drought in certain areas forcing people and animals even more gather and with less food than today. It is very easy to understand that people and animals will starve to death. The Global Warming does not only have a casual effect it also have affects on other things such as inflation. Because of crops being destroyed prices will rise, and in some areas it could mean prices rising so high that only a few would be wealthy enough to buy food. Global Warming also have an effect on the worlds economy and it could mean costs that mankind never could dream of. Action must be taken now before it is too late.

Environmental Protection and Sustainability The WritePass Journal

Environmental Protection and Sustainability Introduction Environmental Protection and Sustainability ). Meridiana’s membership in the AEA shows that it is committed towards achieving sustainability in the aviation sector. Marketing Mix Despite its success in some areas of the domestic market, the company has experienced heavy losses in recent years. With its ageing fleet, subscale international network, and its dependence in the domestic market, the company is facing very stiff competition from some of Europe’s leading low cost carriers (CAPA, 2013). Taking these into consideration, Meridiana has to improve its current marketing mix in order to increase sales and remain competitive. Effective marketing strategies can have a significant influence on society; thus, it is important for the company to apply the appropriate marketing mix to achieve their objectives. Product Meridiana’s major strength is its competitively priced business class seats for long haul destinations, targeted at leisure travellers. As a medium service carrier, it offers elements of both full service and low cost carrier. For example, it provides food and drinks like full service carriers but its price range is comparable to low cost airlines. Meridiana should utilise this mix and use it as a competitive advantage. The airline needs to focus on its domestic flights and its short/medium haul destinations in Europe. The current marketing strategy fails to reach out to the business community. Their marketing strategy should emphasise services for both holiday/leisure and business purposes. The company should target SMEs and become the airline of choice for small and medium-sized companies. This can be done by offering discounts and incentives for companies who want to purchase multiple seats or flights. Price Meridiana needs to use a competitive pricing scheme to attract customers. Its price point should be not too high from low cost carriers, but lower than traditional networked airlines. Although low cost carriers have lower prices, Meridiana should differentiate its slightly higher price point by offering better customer service. The aim is to have a mid-range price point, which can attract middle class consumers and SMEs. Place Meridiana has been highly successful in Sardinia and Sicily. The company should replicate its success by building stronger presence in other parts of Italy and in key international airline hubs such as London, Dubai, Beijing, Singapore, Narita, Paris, and New York. This can be achieved by improving airport check-in services and making their internet reservations website more attractive and easy to use. Promotion As a hybrid airline, Meridiana operates both as a low cost carrier and a network airline (Sansonetti, 2010). It needs to be highly competitive by keeping it unit costs down. This can be achieved by enhancing its internet and social media channels. Meridiana should upgrade its website to make it more attractive and user-friendly. It should improve its tie-ups with hotels, resorts, car rentals, and other tourist services to attract more customers. People Meridiana should improve its services to customers in order to attract more consumers and gain more customer loyalty. Excellent customer service can be a competitive edge, especially when low cost carriers offer cheaper rates. Meridiana should also highlight their people and the value of customer service in their marketing strategies. Process Meridiana should ensure that its online reservations are always efficient and that customers can easily access the airline through phone or email. The airline’s systems should be designed for the benefit of customers. Physical Evidence Meridiana should also ensure that its flights are always on time; its planes are spotless; and its service crew are highly efficient. Its check-in and guest lounges in airports should be clean and the services of both ground crew and in-flight staff should be excellent. Promotional Mix Meridiana should focus on tapping customers from the mid-market socio-economic segment and business people, especially from SMEs. The elements of the promotional mix must integrate different strategies. It should use a combination of various promotional strategies, particularly, advertising, public relations, sales promotions, and internet/online promotions. The integration of different promotional tactics will aid in achieving a more successful result. Advertising should be enhanced in traditional channels such as television, print, and radio in order to target domestic consumers in areas where Meridiana is not the market leader (i.e. Milan, Turin, Naples, Marconi, Rome, and Verona). To increase presence in international markets, the airline should advertise in popular travel magazines and international cable channels (i.e. BBC, CNN, NHK, etc.). In terms of public relations, the airline should improve its relationship with Italian businesses and local government. It should also improve its public image by doing CSR activities and being more active in environmental protection. The company should emphasise their support for green aviation and sustainability in the airline industry. Meridiana should also launch sales promotions on its ticket prices. It should conduct seat sales in which the flight fare is a fraction of its original price but customers can avail of the ticket only for a limited period. For example, the seat sale gives an 80% discount on ticket prices for 50 seats in the plane and the sale will be ongoing for 3-5 days only. Meridiana should also prioritise internet/online promotions and strengthen its social media presence. The airline should improve its advertisement and tie-ups with online travel sites such as Expedia, Kayak, and Orbitz. It should also effectively make use of social media sites such as Facebook and Twitter. Meridiana should advertise in these sites and encourage customer feedback through social media. The company can also utilise viral advertising by putting very creative and highly memorable adverts in YouTube or other video sharing sites. References Agarwal, R. (2010). Sustainable (Green) Aviation: Challenges and Opportunities. SAE International Journal of Aerospace. 2(1), p.1-20. Anna Aero. (2013). Meridiana fly and Air Italy complete merger, as Meridiana turns 50 under new CEO; combined fleet shrinks for S13. Available: anna.aero/2013/06/19/meridiana-fly-and-air-italy-complete-merger-as-meridiana-turns-50-under-new-ceo/. Last accessed 12th January 2014. Association of European Airlines (AEA). 2013). AEA welcomes Meridiana as new airline member. Available: http://files.aea.be/News/PR/Pr13-036.pdf. Last accessed 15th January 2014. CAPA Centre for Aviation. (2013). Meridiana: how to escape the impact of loss-making Italian airlines? Available: http://centreforaviation.com/analysis/meridiana-how-to-escape-the-impact-of-loss-making-italian-airlines-120241. Last accessed 12th January 2014. Chartered Institute of Marketing (CIM). (2013). Marketing and the 7Ps: A brief summary of marketing and how it works. Available: cim.co.uk/files/7ps.pdf. Last accessed 12th January 2014. Cooper. C et al. (2013). Tourism: Principles Practice 5th edition. London: FT Prentiss Hall Denton, N Dennis, N. (2000). Airline franchising in Europe: benefits and disbenefits to airlines and consumers. Journal of Air Transport Management. 6(4), p.179-190. Green, JE. (2003). Civil aviation and the environmental challenge. The Aeronautical Journal. p.281-299 McCabe, S. (2009). Marketing Communications in Tourism and Hospitality: Concepts, Strategies and Cases. Amsterdam: Butterworth Heinemann Meridiana. (2009). Meridiana Group Ethical Code. Available: https://www.meridiana.it/cms/deploy/1/IGGJ_Documenti/IT/Codiceetico/MeridianaGroupEthicalCode.pdf. Last accessed 12th January 2014. Meridiana. (2014). About us. Available: https://www.meridiana.it/en/company_informations/Company_AirItaly_quality.aspx. Last accessed 12th January 2014. Middleton, V. (2009). Marketing in travel and tourism. Oxford: Butterworth Heinemann Sansonetti, A. (2010). The European Airlines Transformation: Hypercompetitive and Long Tail Effects. MCIS Proceedings. Paper 76. http://aisel.aisnet.org/mcis2010/76 Upham, P. (2003). Towards Sustainable Aviation. London: Earthscan Publications Ltd Walker, S Cook, M. (2009). The contested concept of sustainable aviation. Sustainable Development. 17(6), p.378-390

RHO KAPPA LEADERSHIP APPLICATIONDavid Pham Tran Essays - Free Essays

RHO KAPPA LEADERSHIP APPLICATIONDavid Pham Tran Essays - Free Essays RHO KAPPA LEADERSHIP APPLICATIONDavid Pham Tran Somebody who can be organized, responsible, and committed should fill the Secretary position, I believe that I can be that person. Other than having the qualities listed above, I can be very direct and outspoken when I need to address important things, which can come in handy in the organization. I am best fit for this position because I have had a similar experience to a secretary's job in previous years. I have been the manager for Park View swim team since sophomore year and I have had to arrange schedules and make sure everyone does their job. Any officer of RHO KAPPA should definitely be able to balance their schoolwork, extracurricular activities, club activities, and personal life and still be able to complete their task as an officer. I can do that because I am, currently, involved in many school activities such as SCA, Student Power, NHS, NAHS and Global Ambassadors, as well as keeping up good grades in my classes and my job as a server at the same time. Being RHO KAPPA's Secretary is one of the opportunities that I have always wanted because it can give me the experience necessary for college. This position can also give me a chance to improve my teamwork because the Secretary is the main connection of the organization, therefore, I have to work well with both the officers and the members. I have had opportunities to experience leadership positions throughout my high school years, for instance, I was the Treasurer for National Art Honor Society. Being RHO KAPPA's Secretary would be a great addition. I am always open to new challenges and outlets.

Vanity Fair Corporation Research Paper Example | Topics and Well Written Essays - 2000 words

Vanity Fair Corporation - Research Paper Example It is headquartered in Greensboro, North Carolina. It has other headquarters in Europe, Asia and Latin America. VF Corporation is the home of many brands such as Jeanswear, Vanity Fair image, outdoor and Action, sportswear, contemporary. Vanity Fair corporation stores can be found in various countries across the world. This is the most popular brand with the customers at VF Corporation. The company manufactures Jeanswear that is comfortable and long lasting such as Lee Jeans which dates back to 1889. Moreover, the company enjoys a heritage of quality clothes that are classic and comfortable. As such, Lee is among the most popular casual brands across the world. Other types of Jeanswear produced by the company include Wrangler, Wrangler Premium, and Riders, 20x among others that are designed for men, Women and Kids VF Corporation 1. This is the second most popular brand by the company. It comprises of three main brands that are, Image wear, Active wear and Majestic. However, there are other brands such as Bulwark, Chef Designs among others that range from uniforms, protective gear to privately owned and public agencies who order their products directly from the company. The brand’s popularity stems from its production of superior quality products that are safe to wear and durable (VF Corporation 2). This brand consists of technically advanced, innovative gear and footwear that continue to inspire athletes to continue exploring. The outdoor and action segment also has a variety of trendy bags that vary from convenient shoulder bags, ingenious luggage and travel accessories that contain the Eastpak and Kipling labels among others. This brand is popular for maintaining trends and inspiring athletes through its technically advanced products (VF Corporation 3). This brand contains leading global lifestyle varieties for all. There are protective gear for men, women as well as children including a home collection. The