Proposal Components

Research Question $(25$ points$)$: Describe the research question, variable of interest, and dependent variable.

Motivation $(25$ points$)$: Discuss your motivation to examine this effect $($e$.$g$.,$ Why is this effect important to a firm or the capital markets? What triggered your interest to explore this effect?$)$

Hypothesis Development $(20$ points$)$: Why do you believe the effect of the variable of interest on the dependent variable is positive or negative? If possible, please use prior literature or anecdotal evidence $($e$.$g$.,$ a WSJ article$)$ to support your argument.

Specify the Multivariate Ordinary Least Squares Regression Model $(25$ points$)$:

Dependent variable $=$ variable of interest $+$ control variables

Describe how the dependent variable and variable of interest will be measured, and what control variables you will include in your regression model.

Data Used $(20$ points$)$:

Describe what sample and what time period $($e$.$g$.,$ public firms in U$.$S$.$ from $2000-2020)$ will be included in your study.

Look at the databases listed in M$6$ Insights $2$ and state whether any of these databases can provide data for your proposed study.

Expected Results $(10$ points$)$: Describe the expected results for this proposal $($e$.$g$.,$ find a positive coefficient on the variable of interest, indicating a positive association between the variable of interest and the dependent variable$),$ which will support your hypothesis.