Just under two weeks ago I presented my research proposal to half of my cohort! While I was feeling nervous about doing so, it was quite encouraging to speak about the topic I have been working on, to eager ears.
It was beneficial articulating my current progress to the class, as it inevitably caused me to understand my topic’s evolution to this point. It also elucidated the work that still needs to occur in preparation for the final report.
One comment/question from a peer was regarding what the motivation behind researching the Royal Commission was. I am unsure if I had mentioned it in a previous blog post, but I interned at a Law Firm which represented one of the Big 4 Banks during the Commission and this is what sparked my interest in the field.
Furthermore, the bulk of my feedback was regarding the ‘event period’ and ‘estimation period’. I had decided that my event period would cover a period of 5 days from the 30thJanuary – 4thFebruary. This decision was made because even though the Royal Commission report was handed down on the 4thFebruary, it is important to capture the time in which the market would anticipate such news, and preliminary research has suggested the market felt reverberations in the days prior to the publication. Secondly, I received advice to make my estimation period 6 months before the publication, as this would exclude the effects of the interim report on share prices. This was sound advice and I believe I will be implementing a six month time frame.
My largest challenge at the present time, is using EViews and running my regression analysis. While the data is readily available via yahoofinance, I am not competent in using this software as yet, and I assume it will take a lot of trial and error to create data sets that are able to be read by EViews. I have also thought about implementing the ‘Chow Test’, which looks at a set of data and determines whether there is a structural break in the data. I just learnt how to do this in ECON339 and it is a common methodology used when assessing the impact of an event.
My strategy for project completion is to complete my regression analysis as soon as possible, giving me ample time to consider and analyse my results. While I know the deadline is fast approaching, it will be important for me to balance my time between this report and all my other assessments.
#FW
Alexia's attempt at uncovering the effects of the Banking Royal Commission ... in 10 weeks 
Its great to hear some news regarding your progress Alexia. Your presentation was not only engaging but also the manner in which you delivered your proposal was rather impressive with the level of confidence you demonstrated. You have made it evident that your topic is well underway to deriving some quality findings regarding the correlation between The Royal Commission and the Big Four.
Also, as you addressed the motivation behind your research to ignite from one of your personal experiences during an internship at a law firm at the conclusion of your presentation, I think that is a key reason behind how you have managed to build a such a firm foundation on the base of your research topic, so kudos to you!
I understand how determining an estimation period for your primary data can be challenging as I have also faced hiccups with this component of the project. The problem with the time period aspect of research is that it really does dictate the quality of data that will be extrapolated, hence ensuring that a correct approach is taken is critical. Firstly, if the time period is to niche you may fail to assess any recurring patterns evident in the data. Whereas, if the scope is too vast then your study may capture pointless data that distorts your results. As you have decided to look into a 6 month period, I too support your position as I believe it is an appropriate step to take because of the exclusion of the interim report, yet it still manages to enhance the accuracy of your data.
Your concern with Eviews is very valid, but I’m sure you are aware that regression is not an easy model to work with, so be patient with yourself. I am confident that you will solider through it once you get your head around it. I’d advise you to attempt the software by downloading small data samples and playing around with it as it is much easier to work with when there are fewer numbers.
Keep up the amazing work, and I look forward to reading the next instalment of your research journey. Goodluck!
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