Contents Part A: Distinction between primary and secondary data .1 Part B: Vinamilk (coded as VNM) analysis Descriptive statistics .2 Correlation matrix Regression analysis Reference Nguyen Quynh Anh_10160208_SFM_A2 Part A: Distinction between primary and secondary data Self-survey is information that collected by researcher through many ways like interviews, surveys, questionnaires etc It contains both advatages and disadvantage According to Jones (2010), since selfsurvey data is collected from interviews, surveys with each subject, the data obtained provides for the researcher with a more realistic view of the subject being considered In addition, the data from selfsurvey is very reliable and practical, which gives the company an accurate view of this subject Besides, it also has some disadvantages that can be considered as time-consuming and high cost In addition, the results obtained from self-survey depend on the sample size If the sample size is not large enough, the accuracy and representability of the sample will be reduced Moreover, it also required many researchers to collect data Data obtained from self-survey may be bias, inaccurate or sometimes the respondent will provide false answers that affect the accuracy of this research In contrast, using secondary data helps us access to more research, with best scholars in the world Furthermore, using secondary data also saves more time and money than primary data In addition, the data obtained from the secondary data is mostly from large organisation, well-known researchers, so the results are more reliable than self-surveys (Ghauri and Grønhaug, 2010) Besides, using secondary data also has some disadvantages such as data collected from secondary data may not be suitable for other objects and environments, data may become obsolete each year, data can be collected from untrustworthy sources and the data obtained can increase the copyright issues (Jones, 2010) Nguyen Quynh Anh_10160208_SFM_A2 Part B: Vinamilk (coded as VNM) analysis This report analyzes the operating situation of Vinamilk by looking at the company’s financial indicators We choose profit after corporate income tax as the dependent variables and test the relationship between the profits and other financial figures, namely the gross revenue, financial costs, managing costs, and total assets We want to test which and to what extent financial indicators influence the net profit of the company All variables are quarterly results of Vinamilk from Quarter 2006 to Quarter 2017 from the website cophieu68.vn (2018) and measured in thousand VND The paper expects that the mentioned independent proxies are statistically significantly related to the dependent proxy, which is the profit after corporate income tax Thus, the null hypothesis is that the independent variables are not related significantly to the profit after corporate income tax Descriptive statistics Table 1: Means and standard deviations of variables From table we can see that the data spread quite largely from the average figures, which indicate high level of fluctuation Financial expenses are the most spread variable with the standard deviation tantamount to 90% of the mean, followed by managing expenses and the profit and the profit after tax Nguyen Quynh Anh_10160208_SFM_A2 Correlation matrix Table 2: Correlations among variables Table shows that all of the variables positively correlate to each other, except for financial expenses Profit after tax highly correlates to gross revenue and the total assets with the correlation level up to nearly The relationship between managing expenses and profit after tax and gross revenue are slightly smaller, with correlation being 0.7 and 0.8 respectively Financial expenses negatively relate to other indicators; however the relationships are weak with the correlation level lower than 0.1 Regression analysis Table 3: Regression model Table shows that the model have strong prediction power using the independent variables to predict the profit after tax of the company with R squared and adjusted R squared nearly close to The R square figure means that the regression model can predicts 95.29% of the profit after tax Table 4: ANOVA table Nguyen Quynh Anh_10160208_SFM_A2 At the degree of freedom of 47, F statistics is 217 and p is less than significant level of 0.005 Table 5: t-stat and p-value Table shows that Gross sales revenue and managing expenses have statistically significant relationship with profit after tax with p-value less than 0.05 The level of confidence is 95% Gross sales revenue has a positive coefficient, showing that it moves in the same direction with profit after tax Meanwhile, managing expenses has a negative coefficient, indicating that it moves in the opposite direction with the dependent variable The relationships among profit after tax and other variables are not statistically significant as the p-value is higher than 0.05 At 95% confidence level and number of observation of 48, t-critical is 2.01174 As can be seen from table 5, only gross sales revenue and managing expenses have the absolute values of t-stats that are higher than the t-critical Therefore, the null hypothesis applied in the variables are rejected Analysis summary Nguyen Quynh Anh_10160208_SFM_A2 T-stat and p-value provide the same results regarding the statistical relationship among the dependent variables and the independent variable The results show that gross revenue and managing expenses have statistically significant relationship with profit after tax The more revenue generated, the higher profit after tax of the company is On the other hand, the more expenses spent on management, the lower profit after tax As Ertimur, Livnat, and Martikainen (2003) and Andrews and Boyne (2009) states, administration costs not need to increase as the company grows if they can manage the expenses effectively This means that the company does not necessarily need to spend more money in management in order to earn more and increase profit On the other hand, financial expenses and total assets not have statistically significant relationship with the profit after tax Therefore, it is advisable that the company should be mindful of spending on management tasks and spend it more effectively as they not lead to increase in profit Nguyen Quynh Anh_10160208_SFM_A2 Reference Andrews, R., Boyne, G A (2010) Size, Structure and Administrative Overheads: An Empirical Analysis of English Local Authorities, Urban Studies, 46(4), 739 - 759 Cophieu68.vn (2018) Báo cáo tài vnm - Công ty Cổ phần Sữa Việt Nam [online] Available at: [Accessed May 2018] Ertimur, Y., Livnat, J., and Martikainen, M (2003) Differential Market Reactions to Revenue and Expense Surprises, Review of Accounting Studies, 8(2-3), 185-221 Ghauri, P & Grønhaug, K., (2010) Research Methods in Business Studies 4th ed Essex: Pearson Education Limited Jones (2010), Archival Data: Advantages and Disadvantages for Research in Psychology, vol.4, no.11, pp.1008-1017 Avaiable from: https://doi.org/10.1111/j.1751-9004.2010.00317.x ... (Jones, 2010) Nguyen Quynh Anh_10160208_SFM_A2 Part B: Vinamilk (coded as VNM) analysis This report analyzes the operating situation of Vinamilk by looking at the company’s financial indicators... financial costs, managing costs, and total assets We want to test which and to what extent financial indicators influence the net profit of the company All variables are quarterly results of Vinamilk. .. increase as the company grows if they can manage the expenses effectively This means that the company does not necessarily need to spend more money in management in order to earn more and increase