Comparative Analysis Of The Effect Of Recession

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1. Proposed Title Comparative analysis of the effect of recession; a case of UK companies in different industries . 2. Background or Rationale of the Project The year 2008 saw the world usher a new era in the role of central banks in protecting the economy. Banks were increasingly coming under pressure following the collapse of the subprime mortgage market in the US and resulting contagion across the globe. The result was a widespread crisis of a global proportion (Atkinson, Luttrel & Rosenblum 2011). Most researchers believe that the recent recession in UK economy is entirely attributable to the 2008 financial crisis. The later resulted from extreme lack of liquidity in the market as banks refused to lend because of elevated levels of…show more content…
This research will examine the impact of the recession on particular companies in different industries in the UK. The research will examine performance of ten different companies operating in the retail, energy, technology, finance and banking, and real estate sectors. This research will examine the impact that the recession had on the growth of their sales, net income and return to shareholders from the period 2003-2013 financial years. This will show the impact of the recession on the financial performance of these companies and their return on shareholders. This research is necessary since it will explain the interconnectedness that exists in today’s economy and will help upcoming professionals to make decisions regarding their careers. It will illustrate centrality of the financial system to the overall economy and ensure that new professionals in the field understand the implications of their role in finance (Atkinson, Luttrel & Rosenblum 2011). 3. Preliminary Review of the Literature Most research on the 2008 financial crisis and the ensuing recession focuses more on its development as opposed to its effect on the economy. This review of literature will examine the progression of the crisis, its development onto economic recession and its impact on the various sectors of the economy. Claessens and Kose (2013) offer a clear view of the developments leading up to a financial crisis. Claessens and Kose explain that banks borrow on a short-term basis
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