Campus de Gualtar
4710-057 Braga – P Escola de Economia e Gestão
Departamento de Gestão
Master in Finance
Research Methods and Proposal in Management
Assignment 2
1. Suppose a master research proposal includes the text below. Identify the errors/mistakes in the references
and correct them using the APA referencing style (7th edition). You can assume that all spellings are
accurate; all the information needed to correct the references is provided. Suggestion: perform the
corrections in the track changes format in word so your changes are easily identified.*
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Several studies identify patterns in the investments of venture capital (VC) investors. VC firms offer
their services, such as their managerial expertise, to young companies, that innovate and have
growth opportunities (Brav & Gompers, 1997; Megginson et al., 2019). It also appears that VC
investors prefer technological companies and there is evidence of a significant geographic clustering,
for example in California, Texas and Massachusetts (Lee and Wahal, 2004). However, it appears that
VC investors success is related to the segments that they decide to back (Nanda, Samila & Sorenson,
2020). Besides this, Megginson & Weiss (1991) find that VC-backed firms appear to have greater
median book value of assets, higher percentage of equity in their capital structure and lower book
value of equity, revenues and assets. Furthermore, D. Guo and K. Jiang (2013) find different
characteristics for the selection criteria of VC investors. According to the authors, VC investors select
firms that invest more in research and development and that have higher productivity, sales growth
and profitability. According to (Gompers et al., 2020), when selecting a deal, VC investors have in
consideration both the management team and the deal characteristics, giving more importance to
the management team. There is also evidence that VC investors retain a significant part of their
holdings after the IPO, Megginson & Weiss (1991).
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2. Suppose a master student presents his/her dissertation, which includes the following references
list. Identify the errors/mistakes in the references and correct them using the APA referencing
style (7th edition). You can assume that all spellings, spacings and URLs are accurate.
Suggestion: perform the corrections in the track changes format in word so your changes are
easily identified. *
_______________________________________________________________________________
References
Avramov, D., & Chordia, T. (2006). Predicting stock returns. Journal of Financial Economics, 82(2),
387-415. [Link]
Ayadi, M., & Lawrence Kryzanowski (2011). Fixed-income fund performance: Role of luck and ability
in tail membership. Journal of Empirical Finance, 18(3), 379-392.
[Link]
Brown, Stephen, & Goetzmann, William (1995). Performance persistence. Journal of Finance, 50(2),
679-698. [Link]
Campbell, J. Y., and Thompson, S. B. (2008). Predicting excess returns out of sample: Can anything
beat the historical average? Review of Financial Studies, 21(4), 1509-1531.
[Link]
Carhart, Mark M. (1997). On persistence in mutual fund performance. Journal of Finance, 52(1), 57-
83.
Carhart, M., Carpenter, J., Lynch, A., & Musto, D. (2002). Mutual fund survivorship. Review of
Financial Studies, 15(5), 1439-1463. [Link]
CARRETA, A., & MATTAROCCI, G. (2005). Funds of funds´ portfolio composition and its impact on
performance: evidence from the Italian market (SSRN Working Paper).
[Link]
Christopherson, J.; Ferson, W.; Glassman, D. (1998). Conditioning manager alphas on economic
information: Another look at the persistence of performance. Review of Financial Studies, 11(1), 111-
142. [Link]
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Cuthbertson, K., Nitzsche, D., & O'Sullivan, N. 2022. Mutual fund performance persistence: Factor
models and portfolio size. International review of financial analysis, 81, 102133.
[Link]
Ferson, W., Sarkissian, S., & Simin, T. (2003). Is stock return predictability spurious? Journal of
Investment Management, 1(3), pp. 1-10. [Link]
Elton, E., Gruber, M., & Blake, C. (2011a). Holdings data, security returns, and the selection of superior
mutual funds. Journal of Financial and Quantitative Analysis, 46(2), 341-367.
[Link]
Elton, E., Gruber, M., e Blake, C. (2012). An examination of mutual fund timing ability using monthly
holdings data. Review of Finance, 16(3), 619-645. [Link]
Fama, E. F. (1970). Efficient capital markets: a review of theory and empirical work. Journal of
Finance. [Link]
Fama, E. F., and French, K. R. (1993). Common risk factors in the returns on stocks and bonds. Journal
of Financial Economics, 33(1), 3-56. [Link]
Farnsworth, H. (1997). Conditional performance evaluation. In D. Paxson & D. Wood (Eds.), Blackwell
Encyclopedic Dictionary of Finance, Blackwell Business, 23-24.
Huij, J., & Derwall, J. (2011). Global equity fund performance, portfolio concentration, and the
fundamental law of active management. Journal of Banking & Finance, vol. 35, nº 1, 155-165.
[Link]
Roll, R. (1978). Ambiguity when performance is measured by the securities market line. Journal of
Finance, (33)4, 1051-1064. [Link]
*
After completing the assignment, convert the document to pdf before submitting it.
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