[SOLVED] Big Data Analytics Prolog

Big Data Analytics

SUMMATIVE ASSIGNMENT

Introduction

In  the  past  decade,  executive  compensation  has  become  a  contentious  issue,

particularly   in   light  of  recent  financial  crises  and  debates  over  excessive remuneration  packages.      Critics  have  pointed  out  that  some  executives  have received disproportionately high compensation, even when corporate performance and  stock  prices  have  been  on  the  decline.       Effective  corporate  governance mechanisms are crucial in influencing the level of executive compensation.    The board of directors, and more specifically the remuneration committee, plays a vital role  in  determining  both  the  amount  and  the  structure  of  these  compensation packages

Data Sets

For  this  assignment,  you   are   provided  with  a   dataset  titled   Determinants   of Remuneration Data Set.   This  dataset will  serve as the foundation for both your descriptive and predictive analytics.

Descriptive Analytics

You are required to conduct a thorough descriptive analysis of all variables in the dataset.  The analysis should cover key statistical measures, including:

•     Mean

•     Standard deviation

•     Range

•     Skewness

•     Kurtosis

In addition, you should visualise the trends over the three years covered in the data. You can employ various graphical techniques to present these trends.   Tools like Tableau can be useful for generating heat maps and other visualisations to support your analysis.

Diagnostic Analytics

You are required to conduct a thorough diagnostic analysis using the two types of correlation models, briefly discuss which model is the most appropriate and why, and comment on multicollinearity.

Predictive Analytics

Using panel data regressions, you are required to develop and analyse two models. For each model, firstly, you need to conduct OLS to comment on multicollinearity, Secondly, determine whether to use fixed effects or random effects as the main test, while employing the Hausman test to choose between them and conduct sensitivity analysis.  Additionally, you will need to evaluate the models’ sufficiency and strength by  using  appropriate  statistical  measures  and  discussing  the  significance  of  the relationships between dependent and independent variables.

Model 1:

Total calculated compensation

= Y0 + Y1 Board size + Y2  Board External Members

+ Y3  cEO & chairDuality + Y4 Remuneration committee size

+ Y5 Remuneration committee Number of Meetings

+ Y6   Duality of chairman of the Remuneration committe & chairman of the board

+ Y7 chairman compensation + Y8Total Members compensation + εit

Model 2:

Total Annual cash compensation

= Y0 + Y1 Board size + Y2  Board External Members + Y3  cEO & chair Duality + Y4

Remuneration committee size

+ Y5 Remuneration committee Number of Meetings

+ Y6   Duality of chairman of the Remuneration committe & chairman of the Board

+ Y7 chairman compensation + Y8Total Members compensation + εit

Additional Instructions

•     STATA must be used for all statistical analysis, unless otherwise specified.

•     You are required to include screenshots of STATA outputs in your appendices.

•     Ensure  that  any Tableau visualizations you create are effectively integrated with and discussed alongside the results obtained from your STATA analysis.

•     Make sure to reference appropriate academic literature or reports to support your findings and interpretations.