Economics of Education Essay

This project, critically reviews the sources of revenue at Kinondoni Municipal along with the budgetary allocation to secondary educational sector. It provides the major sources of revenue which include Central Government revenue, Basket fund (Donors) and Local government revenue which constitute revenue from city service levy, property tax, advertising and bill boarding fees, compensation revenue, and cost sharing. It identifies that education is the priorities to which the council does consider much in allocating their funds. The project reveals the background on the system of financing education as an essential and critical kind of investment in developing countries particularly Tanzania. It has shown its significances with respect to running the system (government) in general. The significances give the stand to which the Government should take into consideration on allocating funds in secondary educational department. More over the project has identified the objectives for analyzing the sources of revenue and educational budgetary allocation. These objectives have been stated in such a way that, it shows the directory as guidelines for reaching targeted goal(s) for sustainable development. Nevertheless, case study method and documentary review as well as interview techniques were employed. The data have been analyzed using tables and figures. 1.0. Introduction and Background. Kinondoni Municipal is located in Dar es Salaam City in Tanzania. It is bordered by Indian Ocean to North East, Ilala Municipal to the South, Bagamoyo District to the North, Kibaha District to the West and Kisarawe District to the South West. The Municipal has number of matters and services to be done/ provided to the community. Among others being education, health services, road construction and maintenances, water services, urban agriculture, power and energy supply and others of alike. All these services need money to run in effective way so that, the community members could appreciate the concern of the government for their well-being. The Municipal has vision and Mission which the study was interested with, to check out whether are just worded or are real in practical terms. The study eyed particularly to its Mission statement â€Å"Provision of quality services to the community through effective and efficient use of resources, capacity building, good governance and rule of law hence improve the living standard of people†. The project (study) was done at this Municipal to identify the sources of revenue for the Municipal to curter and serve the community effectively and efficiently. Another purpose was to check out, how the Municipal allocate its funds (Revenue) to secondary educational sector. A source of revenue is a critical problem in running several activities to an individual, family, community and national level respectively. Moreover, despite the scarcity of fund (resources) in servicing the community, there is a problem on proper plans and allocating the present resources in optimal manner. Thus, the wise decisions on how to use the present resources in its scarcity is very important particularly for developing countries like Tanzania. Another aspect towards this study (project) was to determine the way the sources of revenue are collected. On this activity, it is the point at which monitoring of revenue collection should be taken into consideration for effective performance. Furthermore, this exercise needs humanitarian aspiration than personal essence so that, the fruits will be for the community as large. There are two significances of doing this project. First was to determine the sources of revenue to the Municipal in order to understand the position of Municipal and the Government in general in its strengths and weaknesses so as to address recommendations to be taken for better performance in future. Second was to assess the allocation of the funds in secondary educational sector. From this, allocation of fund will realize the choices for most of the councils in Tanzania and the way investment aspects are taken into account especially educational investment, hence improvements to be made in a long run. The objectives of this project were as follows i) To determine the sources of revenue for Kinondoni Municipal. ii) To assess the budget allocation to Secondary educational sector in Kinondoni Municipal. The project presents various literature reviews in respective to the study (project). The literature review is mostly on sources of revenue, financing systems, administration, roles of the state and recommended suggestions. Galabawa (1985, p. 1) claimed that, â€Å"Tanzania’s plan for extending educational opportunities and improving the quality of education are often hampered by the limited resources to educational industry†. This realizes that, the problem resources in provision of education in Tanzania is a problem that exists and needs a solution on how to go about in order to reduce the burden from the government to ensure more educational opportunities and improve the quality of education. More emphasis on quality of education has been described by Michaelowa. The author tried to identify the areas which need to be checked to ensure that are taken into considerations for the consequences in anyhow. The author argued that, â€Å"The number of days teachers are absent from school (ABSENCE), and teachers’ self reported job satisfaction (MOTIVATION) have significant coefficients of the expected negative and positive sign respectively† (Michaelowa, 2001, p. 1707). If the education industry is running short of resources to improve access and quality of education, and if the responsible persons needs to be motivated for effective teaching, means this industry need to be financed. The financing can be determined by number of factors as quoted from the article that, â€Å"The policies of financing education in any country reflect the country’s ideology. Although Tanzania’s education policies emphasized quality of opportunity and access, they also vary from environment prevailing at specific time† (Galabawa, 1994, p. 37) This literature review has contributed much on this project since objectives stated can be revealed particularly on sources of revenue. According to Galabawa (2007, p. 3), There are various sources of education revenue. These sources can be divided into four broad categories: Fiscal sources; ser charges including various forms of cost recovery and cost sharing; student loan when constituted as a revolving fund which generates income out of which loans are offered to students and various forms of community contributions. The fiscal sources include general taxes; earmarked taxes; taxes on With regards to education as an investment, and sources of educational revenue, the government has to play its role for sustainable development Galabawa (2007, p. 2) portrayed that, â€Å"The price of education can, therefore be influenced by the government decision which impinge on issues of supply of education services; the allocation and distribution of resources between different levels or different courses; the choice between different methods of financing education and student support or even between different methods of schooling†. Therefore, this clarifies the position of the Government in provision of education in the country to assure access and proper allocation of funds in different sectors. Property; salaries and sales; and different types of levies. For all matters being discussed concerning sources of revenue, educational revenue, budgetary allocation and the role of the government on educational investments and other sector, to have sustainable implementation of plans and to build capacity on fund management, accountability, effective audit and formula funding to generate consistent and reliable disbursements† should be taken into consideration for sustainable development. Besides literature review, case study was employed during the project. The study was done in Kinondoni Municipal. Therefore purposeful sampling technique was used. The project had two variables namely, dependent variable which is budget allocation, and independent variable which is source of revenue. With these variables the hypotheses of this project were as follows; (i) There is a significant relationship between sources of revenue and budget allocation in secondary educational sector (Alternative hypothesis). (ii) There are no basic criteria guiding for sources of revenue and budget allocation in secondary educational sector (Null hypothesis). Field visit, discussion and interview. The list of tools used to collect information and guide the field interview and discussion were documentary review and Interview. The targeted personnel were Municipal economist and district secondary educational officer; these were obtained using purposeful sampling in order to get correct information. The documentary review involved reviewing various documents concerning sources of revenue and general allocation (budget) of the fund to secondary educational sector. Also an interview was conducted in brief way with the Municipal economist and district secondary educational officer. The interview was basically on the way they get fund for running the Municipal to curter and serve the community. Moreover, the questions on what are the major criteria for allocating the fund and challenges they face on all matters concerning sources of revenue and allocation of fund in general were asked.

Hard Determinism Essay

John Hospers uses the rule of common usage, and Freud’s Psychoanalytic theory of human behavior, to argue man is incapable of being free. As a hard determinist, Hospers believes a truly free act can’t be caused, and man’s actions are all predetermined, because they’re caused by an external factor. He begins by using the rule of common usage to show that freedom can’t be defined through its characteristics, as attempting to persuade us to use the hard determinist definition. He then uses psychoanalytical cases to support his argument, because they display individuals making regretful decisions without external factors. The immediate cause is an inner psychological factor, also known as will. Freud’s theory says this internal compulsion is man’s unconscious mind, and control of all man’s actions. This is explained by dividing the unconscious mind into three parts consisting of the id, the super ego, and the unconscious ego. Manâ⠂¬â„¢s feelings of desire are the id and constantly want to be satisfied. His sense of right and wrong comes from the super ego, which rejects every wish the id has. The unconscious ego is the negotiator, and is responsible for reaching a compromise to keep the other two happy. Man’s will choosing his actions is simply the unconscious reaching compromises. Briefly, all of man’s actions are controlled by the unconscious mind. 1.All of man’s actions are controlled by the unconscious mind. 2.The unconscious mind can be categorized as an external factor. 3.Therefore since man has no control over his actions, he is incapable of being free. Its common knowledge man is unable to control his unconscious, as its very definition is what man is unaware of. In addition Hospers believes a person’s behavior is determined by the influences of their early environment, at an age when they were unable to make responsible choices. Common man would agree during this infantile stage, a person has no control over what their environment consists of. As a result they have no choice of what experiences they’ll have, and have no control on the development of their behavior. When comparing the unconscious mind to external factors, Hospers believes they’re the same. An external factor is understood to be any force compelling man’s actions out of his control. Hospers has used Freud’s theory to help explain that man’s will, is a factor he has no control over, and can be categorized as an external force. Therefore since man has no control over his actions, he is incapable of being free.

Technology and HRM- A Better way of Managing your HR

Introductionâ€Å"Human† is the most essential and integral part of a society. The society comprises of all sorts of aspects related to life. These different aspects may include business, social work, entertainment, cultural traditions, family life and many more. These aspects are linked together in a connected system and they revolve around the main subject of all these aspects i.e. human.Business is the most important aspect of the system as the economy of the system is dependant on it. For businesses, human is the biggest asset of all and therefore it needs to be managed. Businesses at either private or public level have requirement of managing there human resources which comes under the vast field of Human Resource Management (HRM).The concept of HRM goes long way back in the 19th century. It has undergone various transitional phases since then and has improved. The birth of innovative technological methods and tools has given a spark to HRM by facilitating it and taking i t to an entirely different and better level then it was 100 years back.The implementation of the technology has improved the standards of businesses and its different sectors. It has enabled managers for better supervision of the employees, has raised performance and has inculcated elements of scrutiny, supervision, administration and better management all over.Hence, technology has become part and parcel of HRM. The maximum utilization and application of technology in HRM have yielded better results. As there is further advancement every now and then in technology, it can be assured that the future holds positive scope for HRM.This paper would highlight how HRM and technology are interlinked with each other. Apart from that it would show how technology has proved effective in various sectors specifically public sector and what upcoming there are in future.HRM As established before, humans are the greatest asset of an organization. These individuals contribute towards the accomplish ment of organizational goals and therefore they need to be planned, controlled, hired, fired, performance monitored and many other functions. All of these functions are performed for the achievement of organizational goals.The various functions that need to be covered under HRM include:Identification of staffing needs and methods i.e. whether to go for subcontracting or hiring of employees. This would give a layout as to what type and number of employees are required†¢ Recruitment, selection and training of the employees who undergo the screening process to be part of organization. The pool of skill is attracted, selected and polished to gain better performance.†¢ Compensation and benefits to employees in exchange of their services to organization†¢ Performance management which should highlight performance standards, ensure that these standards are met and if not then resolution of performance issues†¢ Ensuring that employees activities conform with organizationa l regulations and policies†¢ Maintaining employee records and policiesThese are the main activities that come under HRM department. In a nutshell, HRM department has to conduct job analysis which would further include Human Resource Planning as to what type and how many employees are required, then on this basis recruitment and selection would be conducted to get the best employees, these employees would be polished by training and would be compensated by salary and benefits, maintaining performance standards, ensuring that employees meet the various organizational regulations and health safety standards.Role of Technology in HRMThe summarized explanation of HRM and its purposes and functions reveal that there is lot of activities that needs to be performed by this department. The effective and efficient HRM has reached to complex stages. Question now arises is that how does technology helps in accomplishments of these purposes and performance of these functions?Technology has not only brought revolution but technology itself has revolutionized and improved then what it used to be at its initiation. Technology has proved an effective blessing in the managerial setup as it has come up with tools that have changed the working of employees, the roles undertaken by them and how they get their work done. Similarly, HRM is facilitated as the HR manager has found tons of utilization of technology for performance of HRM functions.Technology and HRM together combine to form processes and systems that are termed as HR Technology or Human Resource Management System. The combination deals as to merge HR activities and functions with technology tools in form of different data processing and software.The main software in this case is Enterprise Resource Planning (ERP) software which is standardized software. Through this software a database is established with integration of various kinds of information. This database has Human Resource Module which has given an edge t o HRM.HRM requires keeping of records of employees. This has been enabled by HRM system as it has provided with different databases and system through which all past record, activity of employee, his skills, performances and all other relevant information can be stored and accessed to easily.Technology has enabled high automation of the processes and data. This has been achieved by use of mainframe computers and client servers. All this technology is capital sensitive and requires high amount of investment but as the technology improved and there came client servers and Application Service Provider which have given businesses an ease.There are various applications of HRM systems in relevance to HRM functions. There is a payroll module which as an automated payroll system. It supervises the employee’s monthly record, his attendance, taxes, deductions and all other payroll activities. All this is automated and after all the rapid calculations the final amount of pay is deduced. Apart from that there is work time system which facilitates to establish standard work time, gather work time information of every employee and his efforts. There is also benefits administration module which checks the degree of employee performance has contribution and accordingly decides on compensation, insurances, allowances and other benefits.There is an HRM module which covers various activities and aspect of the human resource management cycle from its initial level of applying of an employee to his retirement. This module keeps records of applicants, capabilities and skills, then the selection, training and compensation management.Apart from that most famous application of technology for HRM is the online recruitment system. Through this organizations advertise their vacancies and requirements to attract potential candidates to apply. There is also a Learning Management Software which comes under the training module which is used to cater to the training of employees to see how they improve and develop more towards organizational goals (HR Management, 2010).The above are some of the main applications of technology in the field of HRM. There are many other applications as well which have helped organizations to standardize and improve their HRM departments. Businesses from all the different sectors have utilized the technological aids for their assistance and have yielded more effective and efficient results. Technology and HRM are therefore part and parcel and it is necessary for any organization to adopt innovative technological measures and methods to reap good fruit for its HRM as HRM is the main heart core function of the entire organization.HR Technology in different sectors HRM and Technology, or HR Technology is utilized in different sectors across the globe. Though it has different scope and dimensions which vary from country to country but nevertheless we see HR technology being used in one way or another in different components of these secto rs.The main two sectors classified are known as private and public sectors. In simple terms private sector includes business operated by an individual without the state interference and control for profit. In contrast public sector is controlled by the government state and includes services for the citizens. In both sectors we see that HR technology has its dynamics and applications. A special emphasis would be laid on public sector.Private Sector In private sectors there come many educational institutes, health centers, services industry, businesses and many others that are run for profit as well as the well being of the citizens. We see that in all these components of private sectors there is a need to supply of human resources and also important is that these human resources should be managed in form of proper training and other managerial activities. In all of these components, HR technology is witnessed.The first requirement for them is human resource. For this they advertise f or recruitment of the potential candidates through online recruitment methods. After this the CVs and resumes of the applicants are gathered online and scrutinized. HR technology helps feeding in the criteria for hiring online and then these CVs are arranged according to this criterion in chronological order. This facilitates selection stage. The mails are generated through this system automatically to the selected candidates. Then these candidates undergo training modules through different learning software which they apply. The record of their compensation and benefits is maintained in form of payroll modules. An entire HRM module is also there which covers all the activities from step 1 to last step.Public Sector As discussed earlier, public sector involves government i.e. it is services provided by the government. Public sector has varying components from nation to nation. Commonly, every state includes military, police, education, healthcare, society services, public education and public roads and transits.In all these components of the public sector there is a need of proper human resources to run these areas and these human resources need to be managed. HRM is seen in the form of government plans for proper execution and setup of HR plans. The most important of these components undoubtedly is health sector which requires highest expenditure on human resources.The human resource in health sector is in the form of administrative and managerial staff, doctors, specialists and lower medical staff. There is software available for health sector. This software performs various HR activities. The software provide various HR solutions in the form of user defined answers to the medical problems as well as it provides integration of the entire HRM system in form of HR solutions, Staff Scheduling, Payroll and covers the entire stages from hire to retire.There are many different examples that can be quoted here such as SAP Environment, Health and Safety Management. This ensures that the Environment, Health and Safety standards are followed properly by the HR and that they comply with it. There are other examples such as Quadrant HR which is also a tool with integrated HR solutions for health care.The use of this HR technology has improved the health sector and has eased the managerial problems. Through this, the chances of errors in staffing and payroll have decreased and also it has reduced operational expenditure for governments.There are other examples as well which show how HR technology has helped the Public Sector. There are public sector organizations on various levels such as provincial, national or international levels that require HRM systems. They require some regulatory standards and develop systems and processes through which these standards can be followed. Apart from that there is need of all the HR activities of managing records of employees, payroll, scheduling, benefit administration and all other related HR work.For this pur pose a company PeopleSoft has an HRMS for public sector. This HRMS has enabled the compliance with the regulatory standards and has also fulfilled all other requirements in form of Human Resources, Benefits Administration FSA System, Payroll, Payroll Interface applications and Human Resource Budgeting. Apart from that, their latest release includes a more advanced Web Client and an integrated Online Analytical Processing (The Free Library, 1997).These are few examples which show that how effective the use of technology can prove if the technology is used effectively. HRM and technology work together and together they create a positive impact that is not only flourishing the public sector but all other sectors where there is always application of HR technology.These facts show that the future holds prosperous prospects for HR technology in all the fields of a nation as there will always be a need of human resources and their effective management. The next section of the paper will sh ed some more light on the future prospects of HR technology.Future of HR TechnologyThe future of HR technology can without doubt be said is good because the conditions around the globe are changing rapidly. The companies must have flexible operating tools at hand to cope up with these changes.Technology offers the element of flexibility and change to the HRM in form of technologically capable adaptive tools and HRM systems. These systems not only offer effective results but also capability to take on these changes and challenges. But there is always a room of improvement which can be made in HR technology as well.Improvements can be brought in the form of implementation of better technology by the time. Whenever there is launch of a new technological package which can be helpful to the companies, they must explore it and try to implement it in a way that would facilitate the HR activities.There can be launch of further tools such as Talent Management tools, Strategic HR planning too ls, outsourcing components, better payroll systems, online recruitment system, HRM systems, HR modules and overall an entire HR package.The future of HR technology would have to come up with tools that entail the entire business strategy and accordingly formulate an HR strategy so that it is made sure that organizational goals and HR activities are aligned. This can be possible by developing HRM systems whose processes are not only measurable but they also take it to the entirely different and better level of sophistication.The future of HR technology focuses on bringing together business and believes in the formation of more integrated functionality. There are components like portals, business intelligence (BI) and talent. These components would solely not be very effective, but if they are integrated, their combined effect would yield good results. There must be specific attention towards talent management along with portals and business intelligence which would enhance the future scope of HR technology for the globe (Systematic HR, 2006).There are future projects on hand which incorporate the use of technology to enhance the HRM. The effective implementation of these projects would guarantee success of HR technology in future.Conclusion Human is the basic element of the universe and it is around him that the Earth revolves. Human is a part of society which is part of economy which further is part of the country. Business is the most important aspect of the system as the economy of the system is dependant on it. Hence human is the main resource through which businesses operate, societies flourish, economies prosper and countries improve.Therefore there is requirement of managing the human resources which comes under the vast field of Human Resource Management (HRM). The infusion of HRM with technology has improved the standards of businesses and its different sectors. It has enabled managers for better supervision of the employees, has raised performance and has inculcated elements of scrutiny, supervision, administration and better management all over.There are many HR activities which start from advertising online for recruitment, selection, training, compensation, benefits and many more. Technology has facilitated in the form of many different technological tools such as online recruitment, payroll module, training module, benefit administration, HRM system, HR module and many more.There are many other applications as well which have helped organizations to standardize and improve their HRM departments. Businesses from all the different sectors have utilized the technological aids for their assistance and have yielded more effective and efficient results. Technology and HRM are therefore part and parcel and it is necessary for any organization to adopt innovative technological measures and methods to reap good fruit for its HRM as HRM is the main heart core function of the entire organization. The application of these technological aids has not only facilitated HR activities but has also yielded effective and efficient results.HRM and Technology, or HR Technology is utilized in different sectors across the globe. The main two sectors are public and private. In components such as military, police, education, healthcare, society services, public education and public roads and transits there is wide range of technological application and aids that we witness for facilitation of HR activities.These facts show that the future holds prosperous prospects for HR technology in all the fields of a nation as there will always be a need of human resources and their effective management. The improved and new technological aids in future can even further widen the horizon of HR technology in the form of innovative tools such as talent management, business intelligence and many others.ReferencesHR Management. (July, 2010). Technology Aids the Human Touch.   Retrieved on July 22, 2010, from, http://www.hrmreport.com/article /Technology-aids-the-human-touch/Systematic HR. (June, 2006). The future of HR Technology. Retrieved on July 22, 2010, from, http://systematichr.com/?p=439The Free Library. (1997). PeopleSoft Delivers HRMS for Public Sector Release 7.   Retrieved on July 22, 2010, from, http://www.thefreelibrary.com/PeopleSoft+Delivers+HRMS+for+Public+Sector+Release+7-a020064725

Scurity Policy Framework Outline Essay Example | Topics and Well Written Essays - 500 words

Scurity Policy Framework Outline - Essay Example Agencies must in a position to share intelligence (personal data included) self-assuredly knowing it is dependable (Siponen, 2000), comprehensible and safeguarded to contracted standards irrespective of the format or the transmission mechanism. 1. This is the first of five Security Policies inside the ASWERA Security Policy Framework; delineating the obligatory security necessities and organizational provisions and measures to which all Branches and Agencies ought to adhere to (Gaggis, 2005). 2. Governance provisions for security highly depend on the conglomerate amid the midpoint of Administration, Branches, and Agencies (Siponen, 2000), persons employed in the security group, their distribution partners, and eventually all employed staff on behalf of ASWERA. 3. The Official Committee on Security is accountable for articulating the security policy and organizing its solicitation across management. Official Committee on Security is responsible for dealing with international societies (Keukeleire & Macnaughtan, 2008). Cabinet Office Government Security Secretariat specifies the secretariat for the Official Committee on Security and is accountable for initializing and collaborating this outline (Siponen, 2000), guaranteeing acquiescence with the least necessities, associate Departments and organizing an annual report to the Official Committee on Security on the state of security across Management (Keukeleire & Macnaughtan, 2008). Cabinet Office Government Security Secretariat performs its duties closely with the security and information society in evolving and reconsidering the security policies (Siponen, 2000). 4. Whilst security is a mutual concern for all the staff and the contractors, ultimate concern for security respites with Accounting Officers and their corresponding Management Panels, which ought to include a Senior Information Risk Owner (Siponen, 2000). The efficient use embracing the sharing and security of intelligence is a fundamental significance

Corporate Strategy on Corporate Social Responsibility Article

Corporate Strategy on Corporate Social Responsibility - Article Example A survey conducted by KPMG demonstrates that almost a third of the businesses enterprises in the United Kingdom have reduced their expenses towards corporate social responsibility initiatives. In this period of financial squeeze business enterprises are revisiting their strategies towards corporate social responsibilities from the perspective of the strategies that they need to put in place to make the business sustainable. Business enterprises believe that sustainable business is the reason for the existence of the business enterprise and therefore there is the shift in focus towards corporate social responsibility strategies being tailored to suit the needs of the sustainable business. In other words, corporate strategy on corporate social responsibility has changed to viewing corporate social responsibility as less of a moral compass, diluting its implications towards taking the business forward in the reality of difficult financial circumstances. This change in corporate strategy with regards to corporate social responsibility is despite the several examples of big business enterprises going forward to remain more than competitive in their spheres of business activity through showing due diligence to their responsibility to society, through the corporate responsibility strategies. The only way to shift this negative trend in business enterprise thinking on corporate social responsibility is for stronger government regulations and framework that are coercive towards the real intents of corporate social responsibility. Failure to achieve this will diminish the intent of corporate social responsibility by business enterprises (Evans, 2010).

Industry and Macroeconomic Analysis Dissertation

Industry and Macroeconomic Analysis - Dissertation Example USA is by far the greatest contributor with a market value of about $5 trillion (Hughes & Arissen, 2005). The main reason being the cosmopolitan nature of the cities like USA where the commercial value of the property is extremely high. Second contributor is Japan than is estimated to have a market share of about $2 trillion (Hughes & Arissen, 2005). With regards to the GDP, Japan remains the second largest economy of the world and hence, the value of the property is quite high. These two major economies are followed by Germany ($1.1 trillion), UK ($1 trillion), France ($800 billion) and Italy ($600 billion). However, it is worth noting that the 88% of the total real estate market is dominated by the top 15 countries (Hughes & Arissen, 2005). It is a well-known fact that the real estate market is cyclical in nature and booms and busts have been noticeable. The booms in the 1980s were followed by busts in the early 1990s. However, the late 1990s or the early 2000s once again experienc ed a property boom. USA has been the major player in this and the housing market got accelerating demand. Thus, by 2007 this property boom decelerated and the world economy when the global economy was entangled in a global recession marred by a credit crunch. Area of the Study The study focuses upon the property market in Thailand. The main concentration would be on the four leading property companies operating in Thailand namely, Quality House PLC, Land and House PLC, Sansiri PLC and Supalai PLC. The study would incorporate a thorough financial and macro analysis of these companies and the area they are operating. Thus, the dissertation would further try to enhance upon the market value and conditions of the property market in Thailand with regards to these companies and provide a clear picture of the investment possibilities and scenarios. This would be followed up by recommendations. Objectives and Methodology The key objective of the study is to develop a framework through which an investor could gain knowledge about the investment prospects in the Thailand Real Estate Industry. The study aims to provide forecast and conclusion as to whether or not the Thai property sector is attractive from an international investor’s perspective, and also on the companies which will be reviewed. The study would be conducted in a number of steps. 1) The global real estate market would be analyzed. 2) The macro-economic indicators that correspond to the smooth working of the real estate market would be analyzed. 3) Analysis of the Housing Market with respect to the four above mentioned companies. 4) Calculations of their financial ratios. 5) Calculation of the intrinsic values for the four leading companies. 6) Investment decisions and recommendations. The World This focuses upon the changes that have occurred. Light is shed upon the world trend towards economic prosperity. PEST Analysis Political Analysis The political scenario of the world is quite varied. There a re free economies prevailing and at the same time social welfare economies are existent as well. Monarchy – one man rule and democracy have become rivals in today’s political world. Countries like USA, France and India are the major democracies in the world. Contrarily, the Middle Eastern side is marred by despotic rule. The recent upsurge in the opponents of dictatorship has raised their voices and the results have concluded by the uprisings against them in

Business law Essay Example | Topics and Well Written Essays - 1000 words - 11

Business law - Essay Example The two policy reforms considered in Australia include the proportionate liability and statutory capping schemes2. The various professional bodies governing auditing in Australia determine application of statutory capping. Nonetheless, statutory capping has various negative policy implications. One, it is a disadvantage to third parties who may be innocent victims of the auditors negligence. Two, it may induce the auditors to charge lower fees as they would expect to pay damages in case of a legal suit. Third, it allows for government interference in the auditing profession, which would hinder the independence of auditors. One. Tel Communication company reported losses of $290 million as a result, its share price collapsed and the directors were sued for negligence. ASIC sued Jodee Rich and Mark Silberman for failing to meet their duty of care causing the collapse of the company in May 2009. ASIC claimed that by failing to communicate true financial performance and financial position of the company, these directors did not exercise due care and diligence, which resulted to the cancellation of the proposed rights issue in 20013. The directors were found not guilty of negligence on accounts that the summary presented by ASIC about Mr. Rich’s evidence was considered as false. The judge also implemented the business judgment rule under the Corporations Act 2001, Section 180(2). Directors whose conduct breached section 180(1) were provided defense in the business judgment rule4. HIH Insurance was among the biggest insurance companies in Australia. However, in March 2001, the company lost a value of about $5.3 billion and, in turn, became insolvent. Some management member was sued for fraud after the Prime minister, John Howard, created the Royal Commission to investigate the collapse of the company. Rodney, the main defendant, had three unsecured loan

The Effect of Bilateral Trade Agreement between Vietnam and the U.S.A Research Proposal

The Effect of Bilateral Trade Agreement between Vietnam and the U.S.A on Medium and Small Vietnamese firms That Export goods to the U.S.A - Research Proposal Example In 1995, Vietnam became a member of the Association of Southeast Asian Nations (ASEAN). On 13 July 2000, the country signed a BTA with the USA: the agreement went into effect on 10 December 2001. This agreement was part of the ongoing economic reform process in Vietnam and contributed significantly towards the country gaining membership in the World Trade Organization. In 2007, the US Congress approved a Permanent Normal Trade Relations (PNTR) agreement with Vietnam. This paper analyzes the influence of the signing of the BTA on the performance of domestic Vietnamese small and medium scale enterprises (SMEs) that were engaged in exporting to the US market. The SMEs occupy a significant position in the economy of Vietnam and it is important to know the effect of the BTA on SMEs. The paper first studies the growth rates of production, investment and employment of these Vietnamese firms before and after signing the BTA. The studies were based on the results of a survey which had earlier been conducted by two Vietnamese Agencies and one US Agency. Then, the paper itself conducts two statistical tests of its own to empirically analyze the effect of the BTA on the SMEs in the Vietnamese economy. The findings of the tests, show the BTA has caused the value of Vietnamese exports to the US market to significantly increase from 2001 onwards which in turn has caused a greater number of Vietnamese SMEs to enter the export market.... he signing of the BTA on the performance of domestic Vietnamese small and medium scale enterprises (SMEs) that were engaged in exporting to the US market. The SMEs occupy a significant position in the economy of Vietnam and it is important to know the effect of the BTA on SMEs. The paper first studies the growth rates of production, investment and employment of these Vietnamese firms before and after signing the BTA. The studies were based on the results of a survey which had earlier been conducted by two Vietnamese Agencies and one US Agency. Then, the paper itself conducts two statistical tests of its own to empirically analyze the effect of the BTA on the SMEs in the Vietnamese economy. The findings of the tests, show the BTA has caused the value of Vietnamese exports to the US market to significantly increase from 2001 onwards which in turn has caused a greater number of Vietnamese SMEs to enter the export market. Therefore, the paper indicates that there is a lot of potential to be tapped in the export sector of Vietnam. As the case of the BTA has shown, Vietnamese firms are prepared to enter the export market and leverage expanded export opportunities with foreign countries. For this, Vietnam has to search for new trading partner countries and look to enhance its trade relations with them as it has done with the USA. At the same time, Vietnam has to maintain its existing trade relationships with its current trade partners. Only then, can Vietnam’s export sector serve as an engine of growth for its overall economy. (Abbot, et al, 2007, p-2; Burmeister n.d; Martin 2009 p-2; McCaig and Pavcnik, 2011, p-2) Literature Review The entire literature can be segregated into two types: the studies of the impact of the BTA on the Vietnamese economy as a whole and the

Marketing - Real-World Write-ups Essay Example | Topics and Well Written Essays - 250 words

Marketing - Real-World Write-ups - Essay Example Nevertheless, MTV does not actually target Generation X (1965 to 1979) since 2009 after observing decline in viewership and subsequently in revenues. MTV, therefore, introduced new TV shows, reality programs and series such as ‘Jersey Shore’, ‘16 and Pregnant’, ‘Teen Mom’, ‘My Life as Liz’, ‘The Hard Times of RJ Berger’ and ‘Skins’ for the younger consumers to enhance viewership, relationships with advertisers and financial revenues from advertising and sponsorships. The popularity of teenage singer (16 years) Justin Bieber has compelled MTV to sponsor his programs for enhancing its reach among teens with unique tastes and preferences, while having stable buying power and income. However, exposure of eroticism and sexual content in ‘Skins’ also adversely impacted MTV because its advertising partners do not endorse such vulgarity and consider that act against their Code of Conduct. For instance, the audience also declined by 50%, thereby validating that negative entertainment is not acceptable at all. In conclusion, MTV has once again increased its viewership because of its innovation and differentiation strategies, thereby enabling TV channel to enhance stakeholders’ inclination towards MTV.

Network Security Questions Assignment Example | Topics and Well Written Essays - 500 words

Network Security Questions - Assignment Example Botnets mainly send harmful mails in form of spam campaign messages to the target points of the attackers. The botnet can therefore spread as viruses, Trojans or worms through emails and websites. The objectives of botnet attack are to enable the attackers spy on the victims and gain access to sensitive information such as financial statements. They steal the victims’ credentials and hijack banking information, ultimately leading to stealing of money. Their transactions run concurrently with those of their victims. The attackers can also use botnet to access the system source codes. Botnet attackers can use their victims’ computers and resources for sending malicious spam. These can then spy other victim’s and execute denial of service command against them. The victims spend a lot of money as well as time to recover from the consequences. Worse still, botnet attacks can land victims into legal challenges. It is not easy for the victim to realize from the onset that the sender of the malware is in fact a fellow victim. In that case, the end victim may take sue the supposed attackers. On the other hand, Proxy firewalls are intermediate barriers that accept every traffic instructions moving into a network. It achieves this through impersonation of the actual receiving point of the traffic in the network. From the results of inspection, it grants or denies access and the proxy firewall relays feedback to the destination. After the destination replies, proxy firewall ends the connection. Only one of the two computers remains connected to the global network. ACLS are not capable of reading past packet headers. This gives only basic details concerning the network. In this regard, ACLs packet filtering is not sufficient in itself to eliminate network threats. Proxy firewall demands that every application require a separate proxy at the level of each application. Proxy firewall network suffer

The main factors affecting the quality of the external audit in the UK Dissertation

The main factors affecting the quality of the external audit in the UK - Dissertation Example This therefore requires an improvement in the quality of the external audit and how it can be improved in order to ensure that the external audit could help to safeguard the interests of different stakeholders. This topic is important in the sense that it can help to identify, within specific context of UK, some of the factors which can contribute towards improving the quality of the audit. Investors and shareholders can be more assured about the overall credibility of the audit and what factors they can look into when assessing the overall quality of the audited financials. Researcher aims to explore the overall nature and the extent of factors affecting the quality of the external audit. On a broader level, this research study will explore different concepts related with the quality of the audit, identification of different methods which are used to improve the quality of external audit as well as the quality and nature of the impact of such factors on the overall quality of the ex ternal audit in UK. ... (Causholli & Knechel, 2009) As such when a conflict of interest arises between agent and the principal, agents may take actions which may not be entirely in the best interests of the principals. In order to narrow that gap, a financial reporting mechanism is prepared which is duly supported by the independent external auditors to ensure that the financial reporting made by the management is free from errors and frauds. The overall concept of audit quality therefore is linked with how well the function of external audit is successful in highlighting and detecting material errors in the financial statements while at the same time reduce the information asymmetry between the shareholders and management of the firm. Underlying the concept of external audit is also the reduction of the information asymmetry between the shareholders and the management of the firm. Preparation of financial statements is one of the key functions management has to perform in order to inform the shareholders a nd other stakeholders about the overall performance of the firm during given period of time. As such, it is through the financial statements that the management informs the shareholders regarding the overall quality and effectiveness of the management as the same has to translate into better financial position and profitability for the firm. Reducing the information asymmetry therefore can further improve the credibility of the financial statements but also provide a third party endorsement that the financial statements are prepared in true and fair nature. The concept of Audit quality and factors affecting it Audit quality is one of the much

Income elasticity of demand Essay Example for Free

Income elasticity of demand Essay Luxury product sales boost in the emerging marketing like China, which has extraordinary growth and strong potential consumers for the development of luxury goods in the China market. With gradually lower and lower increase of revenue in the European countries, Louis Vuitton (abridged as LV in the following sections) commits itself to set up more stores in China. However, LV is faced with the problems of declining profits in China, which urges it to adjust its entry strategy into the China market. In this case, this report will focus on distinguishing the factors that influence LV’s development in China and laying out schemes for LV’s entry into China market by initially examining the internal and external environment for LV; analyzing the operational plan for LV’s entry into China based on the environment examination, and generating an action plan for LV’s entry strategy at the end of the report. Content 1. 0 Introduction Louis Vuitton (abridged as LV in the following sections) is planning to set up more stores in the China market. However, it is now faced with the problems of declining profits in China, which urges it to adjust its entry strategy into the China market. In this case, this report is to lay out schemes for LV’s entry into the China market by distinguishing the internal and external factors that influence LV’s development from the perspectives of country factors and internal advantages of LV with reference to the SWOT analysis model; analyzing the operational plan for LV’s entry into China based on the environment examination and including suggests on firm strategy, organization structure and management, entry strategy and modes, manufacturing management, marketing plan, and accounting as well as finance management; and generating an action plan for LV’s entry strategy at the end of the report according to the specifications of the business operational plan. 2. 0 Research Methods The research method of literature searches is adopted to generate this report. This method is chosen because there are plenty of existing studies on the development of luxury goods, which makes it possible for abundant literature searches. Also, there are a great many resources on the annual reports of Louis Vuitton available which offer insights into the financial performance of this company. Anyway, luxury goods are indeed possessed by the majority of people, which makes direct interviews or surveys less available. 3. 0 Findings: External and Internal Environment The internal and external factors that influence LV’s development will be examined in this section from the perspectives of country factors and internal advantages of LV. A SWOT analysis will be involved in this section, which aims to find out the strength, weakness, opportunity and threat of the company according to analysis on the internal conditions of the company and the external environment the company is faced with (Johnson Scholes, 2002, p122). 3. 1 External environment: Country factor analysis The external environment for LV’s entry into China will be discussed in terms of the politics and government policy of China, the economy and the China market, the social culture and transportation of China, and will be concluded from the perspectives of opportunities and threats for LV’s entry into China. In terms of politics and government policy, China is now actively opening up to the world and enhancing trade relationships with world brands since the reform and opening up policy. In terms of the economy and the China market, according to Yuval and Vinay and Cathy (2011), the analysts of Mckinsey quarterly, China has increasing booming urban cities including the second- and third-tier cities and the world second-largest GDP which means strong purchasing power the China consumers for luxury goods and great market potentials (para 8). They also pointed out that by 2015, Chinese consumers will account for more than 20 percent of the global luxury market. On the other hand, the large market potential has drawn a host of luxury-goods companies to enter the China market, which makes the competition fiercer and fiercer. And it is troublesome for LV that there are plenty of fake goods imitating LV’s style prevailing in China, which are actually not likely to reduce LV’s high-end consumers, but would exert negative influences on consumers’ impression and awareness of LV. In terms of social culture, for one thing, the China consumers are attracted by middle- and high-end products and somehow more attracted by French luxury goods, and they believe that the higher the price, the better the quality (Yuval, Vinay and Cathy, 2011, para7) (Exhibit 1). For another thing, the traditional virtue of thrift is rooted in the mindset of the Chinese, with which some of the rich in China indicate that they would not spend a large sum of money to get a product. (Exhibit 1) (Chinese consumers increasingly prefer internationally well-known brands. Retrieved on Jan 3rd 2013 from: http://www. mckinseyquarterly. com/Tapping_Chinas_luxury-goods_market_2779) In terms of transportation, airlines are increased like the Emirates group which launched air routines in the main cities of China, and railway transportation as well as road transportation is more and more available, making it convenient and fast for cross-national transportation. Therefore in conclusion, the opportunities for LVs entry into China can be concluded as Chinas encouraging policies on foreign brands entering into China; Chinas booming urban cities and increasing middle- and upper- class consumers with strong purchasing power; Chinese consumers purchasing preference for French high-end products; and the more and more convenient cross-national transportation in China. While the threats for LVs entry into China entail the fierce competition from the peer companies and brands; the trouble coming from increasing produced counterfeit products imitating LV in China; China consumers cautious traditional views on luxury goods purchasing. Anyway, when it comes to China consumers rational attitude towards luxury goods purchasing, it may be an opportunity for LV if it succeeds in drawing out their desires and needs for LVs products, otherwise it may turn out to be a threat for LVs expansion in China. 3. 2 Internal environment: Based on national level and firm level 3. 2. 1 Internal environment based on national level The advantages of internal environment for LV on national level lie in the its preference and prospect to greatly expand its business in China, its experiences of operating in China market for about twenty years, and its strong influence on and temptation to the China consumers, as well as customer loyalty for it. On the contrary, the disadvantages lie in its high price which will greatly influences China consumers’ will to purchase the products, and in its could-be easily imitated appearance and style which is made used of by some China manufacturers in producing fake goods. 3. 2. 2 Internal environment based on firm level 3. 2. 2. 1 The nature of LV’s products Dubois and Czellar and Laurent (2001) delineated Luxury goods as products with extraordinary quality as well as high price, rareness and uniqueness, aesthetic appeal, respectful long history, and the sense of being superior to others (p156). Yacine and Johnathan and Motohiro (2004) argued that luxury goods manual crafting and diligence should be involved into the manufacturing and designing of luxury goods (para 2). Based on these studies, the nature of LVs products can be abstracted as unique, rare, and excellent-quality, and extraordinary. 3. 2. 2. 2 Industry characteristics of luxury goods Kapferer (1996) suggested that luxury industry distinguishes the needs and demands of the wealthy people like prominent social figures, and produce unique superior products for them, which acts like a status symbol for the rich (p251). While Heine (2010) stated that the luxury industry is also fashion-oriented and high-quality guaranteed. And it is closely associated with the needs of the wealthy. Judging from these studies and the advancement of luxury products nowadays, the industrial characteristics of luxury products can be concluded as extraordinary quality with high guarantee, extremely personalized with unique designed style, strong brand recognition and customer loyalty, and highly profitable sales based on its high price. 3. 2. 2. 3 Advantages and disadvantage of internal environment for LV on firm level The advantages of LV on firm level mainly lie in its good brand image, abundant product portfolio, wide expansion in the China markets covering most of the first- and second-tier cities, and its control on the designs of products. This can be told from the following aspects. Above all, LV enjoys a good reputation of high quality and excellent services that it has occupied the first place of the 2012 Hurun Ranking of the Top ten luxury brands in the world (see Appendix 1), in which LV beats Hermes, the second in the list by nearly 43%. Also, LV offers manual crafting designed products which are special for certain customers. What’s more, it offers permanent after-sale serves to its customers (Paul, 2012, p79). In terms of geographical expansion, LV has reached many areas of China (Exhibit 2).

Corporate Governance Impact On Capital Investment

Corporate Governance Impact On Capital Investment Introduction Overview Through various studies over the years, different scholars and financial analysts have been able to establish a relationship of cash flow on firms investment spending. It was significantly proven by (Modigliani Miller, 1958) that a firms financial status is irrelevant for real investment decisions in a world of perfect and complete capital markets, after controlling for the cost of capital. In case of managerial discretion, based on (Jensen, 1986) free cash flow theory, firms increase investment (including projects with negative present value) based on the availability of cash flows with incentive of increasing firms value beyond level of optimal investment. Moreover, an agency costs also appreciate the borrower net worth by charging a premium on the external financing. The discussion above explains that the firms investment decisions are dependent on the availability of internal funds, as cost advantage over external fund is evident. While choosing an appropriate capital structure, there are certain trade-offs which affects the decision. These trade-offs include tax advantage through acquiring debt against the bankruptcy cost which advocates the use of equity. Keeping this in view, various different models have been supported to explain this corporate capital structure behavior. Pecking Order Theory, initially mitigated by (Donaldson, 1961) describes the financing practice as prioritizing the means of financing, which is necessary for the management to counter against asymmetric information. Either they should generate the funds internally or acquire funds externally through debt rather than equity. Implications to the pecking order theory involves the positive impact of leveraging on the market price, which means, financing through debt sends a positive signal into the market about the firms future prospects. Furthermore, intermediaries also undermine the role of management as the financial intermediaries such as investment banks function as the insider to the firm. Consequently, keeping an eye on the firms operations and influencing the firms capital financing decision. However, Pecking order theory of (Myers, 1984) argues that the firms operating in imperfect or incomplete capital markets where the cost of external capital exceeds that of internal funds, the financial structure may be appropriate to the investment decisions of companies facing uncertain prospects. Gauging the level of corporate investment in any firm is based on the corporate governance; market position of a firms asset against its book value can be termed as Tobins q ratio. Identified by (Chung Pruitt, 1994), Tobins q as proportion of firms market value to replacement cost of its assets. Tobins q can be considered an effective tool for determining financial performance as the data can be collected readily from a balance sheet. When calculating Tobins q ratio, the replacement cost can be determined approximately by the book value of firms plant and equipment. Approximate q can be replaced with the actual Tobins q to make the calculations unproblematic and data can be readily available without any discrepancies. Problem Statement To study the impact of corporate governance on the capital investment decision through cash flow and Tobins q interaction in relation with Capital Investment HypothesEs H0: Firms cash flow having a significant impact on its capital investment will be linked with high Q values. (FCF Theory) HA: Firms being liquidity constrained due to least payout will have significant investment-cash flow sensitivity, and will be linked with high Q values in the market. (PO Theory) Outline of the study The report contains the contemplation of research data that will study the phenomenon of cash flows and investment discussed earlier in this paragraph. The study categorizes firms according to characteristics (such as dividend payout, size) which will help measure the level of constraints faced by firms. The study will help readers to understand the complexities of Pecking order theory and Free Cash Flows concept with regard to asymmetric information available and corporate governance which influences decision of the firms. To measure the effect that cash flow-financed (internally sourced) capital spending and Q has on firms investment, Ordinary Least Square Regression model will be used to estimate the function. To compute the influence on the Investment, instruments used are: (1) Cash Flow, (2) Approximate q, and (3) an interaction of both variables are created. Through studying the parameter estimates of interaction variable, positive influence on investment will support the Pecking Order hypothesis and negative influence will govern the Free Cash Flow hypothesis. The equation hypothesized in the next part is linear. Definitions Pecking Order Theory: (Myers, 1984): A firm is said to follow a pecking order if it prefers internal to external financing and debt to equity if external financing is used. Free Cash Flow Theory According to (Jensen, 1986), free cash flow theory, high cash flow and low debt create agency costs associated with conflicts between manager and share holder over the payout of this free cash, which is the cash left after the firm has invested in all available positive net present value projects. Capital Structure A careful and systematic analysis of how claims against a corporations assets can or should be determined, assessed, and accounted for. (Riahi-Belkaoui, 1999) Capital Investment Decision Capital Investment decisions are those decisions that involve current outlay in return for a stream of benefit in future years. (Drury, 2006) Tobins q Tobins q is a measure of investors expectations concerning a firms future profit potential. It is defined as the ratio of the market value of a firm to the replacement cost of its assets. (Strecker, 2009) Literature Review Vogt (Vogt, 1994) explained the capital spending behavior of companies with respect to change in dividend cash paid, cash flows, sales, and market value of assets. The regression equation models the variables to proportion of fixed assets, and distributes the firms data in segments of Dividend Payout Groups and Asset Groups. Primarily, Dividend Cash has a strong negative impact on capital spending; it explains that in order to finance additional fixed investment firm needs to sock cash by reducing their dividend. Cash flow, Sales, and Q Ratio having a positive coefficient demonstrates that with an increase in future cash flows, the firm will improve its capital spending. A relationship has been developed between the firms investment decision and the firms financial status by Cleary (Cleary, 1999), financial status has been studied with respect to the liquidity constraints. The data is classified into groups through a discriminant analysis on basis of dividend payout policy. Groups taken into study have made possible to identify firms which are more financially constrained more likely to be investment-cash flow sensitive, furthermore, availability of internal sources of funds have a greater impact on firms with high credit worthiness, and vice versa. It has been proposed that the various ownership structures make managerial decision based on the interaction between investment and the firms liquidity constraints. The study conducted by Dedoussis Papadaki (Dedoussis Papadaki, 2010) mentioned that the management can be held separate from its ownership, even on basis of the nationality of the company. On the other hand, it also explained that the relative shareholding of CEO and the controlling shareholders can also be the basis of separation. The sample used in the study was separated and grouped on basis of dividend payout, asset size of the firm, age of the firm, source of control, and kind of ownership. On the given sampling criterion; greater asset size firms, older firms, lower Q (high investment opportunity), and high dividend payout firms showed higher cash flow sensitivity towards investment. Findings support that the Low Q, small, and new firms under the generalized model are facing asymmetric information problems. Indeed these firms are expected a priori to face financing problems that affect the cost of their external financing. On the other hand, low Q, old and low dividend firms are more likely to face managerial discretion problems that result to over-investment. The impact of Tobins Q is mainly used to determine the investment opportunity of the firm. In this article, marginal Tobins Q has been taken to evaluate the firms investment and Research Development expenditures. The asymmetric information (AI) hypothesis proposed that firms provided with a profitable investment-project may be not able to source it through internal cash flows and for the reason that the cost of external funds is too high due to the capital markets ignorance of the firms investment opportunities. On the other hand, agency or managerial discretion (MD) hypothesis constructs the investment-cash flow relationship on the assumption that managers are well qualified in context with proficiency they obtain from managing a huge and fast paced firm and thus exceeding the wealth shareholders beyond their expectations. (Gugler, Mueller, Yurtoglu, 2004) Taking in viewpoint the impact of capital structure on the capital investment decision, firms investment demands is the more susceptible towards cost-of-capital or tax-based capital incentive. Whereas, capital structure seems irrelevant as against internal sources of funds can be effectively substituted with sources of funds generated externally. The size of the investment project can be a deterministic factor towards it. Fazzari, Hubbard, Peterson, Blinder, Poterba (Fazzari, Hubbard, Peterson, Blinder, Poterba, 1988) explicates that cash flow/investment relationship is more sensitive when taken in reference with firms dividend behavior. Comparison based on firms having more or less liquidity constraints can be further improved when compared on a division based on the scale of the firms, i.e. young or small firms versus large ones. This way the researchers can address the problem of firms lacking the asymmetric information. Under the impression where capital investments decisions mainly pertains to the capital structure or choosing the appropriate source of investment, Schaller (Schaller, 1993) conducted three different empirical tests to determine that information asymmetries have a huge influence on the firms investment behavior. Differences among the informational base of investors and creditors was also considered a capital market imperfection. Ownership status and age of the firms has an impact on the cost of equity financing, mature firms pay comparatively less price for it than young firms. Same aspect goes for the firms with concentrated with comparison to dispersed ownership. Borrowing is considered a more rational source for investment-projects. Pledgeable assets generate greater borrowing capacity, which afterwards makes firms invest more in pledgeable assets. As suggested by Almeida Campello (Almeida Campello, 2007), such a phenomenon can be termed as a credit multiplier. In case of financially constrained firms, a multiplier relates to the sensitivity of firms investment-cash flow relationship that is reflected as the increase in the tangible assets of the firm. Therefore, it is proposed that with fewer tangible assets firms are more likely to be financially constrained. The sensitivity of investment-cash flow relationship is evidently influenced by the tangibility of a firm, as latter discussed. Managers while making capital investment decision considers externally-sourced funds costlier, therefore, overconfident managers over assessing the profitability of an investment-project invests more when having abundant internal funds to utilize. However, deciding not to source externally in case where they are short of internal funds to generate. There has been an evidence of significant relationship between the managerial discretion and investment-cash flow sensitivity. Equity concentrated firms are more likely to be influenced by overconfident managers, unless compensation tools can be used to reduce the effects of managerial overconfidence. (Malmendier Tate, 2005) Goyal Yamada (Goyal Yamada, 2004) have explained the impact of asset pricing in the stock market against investment-cash flow sensitivity. Overvalued stock prices triggers an increased in investment spending and are cut back when stock are being undervalued, consequently, inflated prices collateral assets attract higher level of external financing. Inflationary pressures primarily determined by the economic monetary policy impacts on the variation of cost on external financing, though it reflects highly on cost of external financing, marginally impacts less on the investment-cash flow sensitivity. It has been observable that less financially constrained firms have significantly higher investment-cash flow sensitivity. Characterizations of firms based on financial constraint can sometimes create confusion. Firms having unusually high cash holdings can either be characterized as unconstrained based on the opportunities it has to invest or constrained based on the assumption that it needs to have a precautionary savings to invest in future investment projects. Therefore, financial constraints cannot be used as an influential determinant for investment-cash flow sensitivity. (Kaplan Zingales, 1997) Hu Schiantrlli (Hu Schiantarelli, 1998) put into picture the effect of general economic factors and various firms characteristics on the value of the firms net worth. Mainly financial status is the most important determinant for the level of asymmetric information problem that managers face. A strong balance sheet position can reflect good sign of firms performance which enhances the market value of the firms asset to its stake holders, mainly investors and creditors. Q models assumption also assists in determining the sensitivity of the investment-cash flow relationship, where the indicators determine the investment opportunity and the sources of funds to choose from. Understanding the market influence in proxy of q can also give a clear picture to the movements in the firms investment over a period. Net worth of firms helps manager determine if the sourcing of funds externally is a viable option in contrast to the investment opportunity which underlies. (Hubbard, 1998) Research conducted on the investment-cash flow sensitivity addresses many aspects of the firms financial strength. Further study by Calomiris Hubbard (Calomiris Hubbard, 1995) shows that when firms tax taken under investigation also reflected a significant influence on the volume of spending on investment-projects. They explored the impact of surtax margin, as a tax experiment, on the cost of internal and external funds. Surtax when levied on undistributed profits, obligate the firms to incur certain cost on the internal funds. This effects the managers decision to invest and is also reflected on the investment-cash flow sensitivity against the surtax margin. As a result to evade burden of higher cost on internal funds, firms with high surtax-margin exhibits elevated sensitivity in investment-cash flow relationship. Quan (Quan, 2002) discusses the Pecking Order theory with reference to the Modigliana-Miller proposition that works under the assumption of perfect market. Here it is stated that value of the firm is irrelevant and based on a few limitations the choice of financing can be determined via gauging the strength of the firm. These factors pertain to the imperfect market and influence the managers to make their capital investment decision. Once the assumptions are released the financing structure shows a clear picture. The association between Free Cash Flow theory and Agency theory has always been under the limelight when there is a question of retaining the undistributed profits. FCF Theory taken under consideration gives out an option to the management to hold on to excess cash sacrificing the shareholders opportunity cost. These excess funds can be generated to better internal operational efficiency or at managers discrepancy to source its investment-projects. (Wang, 2010) Research Methods The chapter explains the model used in the given research study. The study focuses on analyzing the influence of Cash Flows and Tobins q on Corporate Investment. The equation represented by a dependent variable as a ratio of capital spending to the beginning net fixed asset (I/K) predicted by independent variables: (1) ratio of cash flow to the beginning gross fixed asset (CF/K), and (2) beginning Tobins q (Q). Method of Data Collection Main source of collecting the required data is from secondary sources. It includes the Balance Sheet Analysis of Joint Stock Company listed in Karachi Stock Exchange provided by State Bank of Pakistan consisting of data of our relevant variables. The data was taken in annual terms to conduct this research. Sampling Technique The Convenience sampling or grab or opportunity sampling would be use in this research. Sample population selected because it is readily available and convenient. Sample Size The sample period taken under study covers 8-years period beginning at the start of 2000 and ending at the close of 2008. The data was taken from a sample of 70 (non-banking and non-financial) companies which are listed on Karachi Stock Exchange and included in KSE-100 index. Research Model Statistical technique Ordinary Least Square Regression technique is used to study the impact of variables included in the study. It helps studies the relationship between a dependent variable and several independent variable. It also assumes the relationship to be linear or straight line, where the values of predictors lies directly proportional to Criterion variable. SPSS Software is used to develop the regression model and evaluate the influence of predictors on dependent variable. Results Findings and interpretation of results Aggregate Sample: Table : Represents the model summary of regression estimates for the full sample of 69 firms The predictors, i.e. main effects of Cash Flow and Tobins q and an interaction variable of both combined, included in the model explains 78.5% of Investment (Table 1) shown mentioned as R Square. Least variation in Adjusted R Square suggests that the variable to observation ratio in the given model is sufficient. Casewise diagnostic was also conducted to eliminate the outliers in the data to improve the results. Table : Studies the F-statistics to test whether the model predicts the dependent variable significantly The F-statistics (Table 2) is significant and it determines the regression model with the given predictors can significantly predict the outcomes at a 0.05 significance level. Table : The parameter estimation for full sample of 69 firms with respect to dependent variable, t-statistics is used to test the null hypothesis ÃŽÂ ²1 = ÃŽÂ ²2 = ÃŽÂ ²3 = 0 The coefficient values of all predators included in the test are significant at a 0.05 significant level (Table 3), which shows that they have a strong influence on the investment of the firm. The standard coefficient shows that Cash Flows have a much greater impact on Investment than market value on the firm, which is exemplified through Tobins q. Dividend Payout groups: Table : Presents the sample statistics for 69 KSE listed (non-banking and non-financial) companies which are included in the KSE-100 index. The three rows distribute the statistics into High, Medium, and Low payout policies. Average dividend-to-income ratios of greater than 0.35, between 0.35 and 0.10, and less than 0.10 define High, Low, and Medium dividend-payout firms, respectively. While studying the dividend-payout groups (Table 4), the descriptive helps to identify characteristics to confirm whether the data being studied has the authenticity and the behavior pattern which commonly related to the groups assigned. The values of Investment, Cash Flow, and Tobins q associated with the groups are in complete correspondence with the hypothetical occurrence. Firms having a higher (lower) dividend payout have greater (lower) market value, and lower(higher) level of cash flows and investments. Table : Represents the model summary of regression estimates of 69 firms split by High, Medium, and Low dividend-payout policies. The model helps explains 81.9%, 66.7%, and 80% data in High, Medium, and Low dividend-payout firms (Table 5), shown in R Square. Least variation in Adjusted R Square suggests that the number of observations is sufficient with respect to variables in each group separately. Table : Studies the F-statistics to test the null hypothesis of ÃŽÂ ²1, H = ÃŽÂ ²1, M = ÃŽÂ ²1, L The F-statistics (Table 6) in each dividend payout group is significant and it determines that each regression model with the given predictors can significantly predict the outcomes at a 0.05 significance level. Table : Shows the parameter estimation for each payout groups with respect to dependent variable, t-statistics is used to test the null hypothesis ÃŽÂ ²1 = ÃŽÂ ²2 = ÃŽÂ ²3 = 0 The coefficient values of predators in High and Low dividend payout groups are all significant at a 0.05 significant level (Table 7), which shows that they have a strong influence on the investment of the firm. Except for Medium dividend payout group, which has insignificant coefficient values of Tobins q, showing no impact on the investment. The standard coefficient shows that Cash Flows have a much greater impact on Investment than market value on the firm, which is exemplified through Tobins q. Hypothesis Assessment Summary Hypothesis Independent Variables B t Sig. Comments Firms cash flow having a significant impact on its capital investment will be linked with high Q values. (FCF Theory) Cash Flow ÃÆ'— Q H0: ÃŽÂ ²3 ÃŽÂ ²3,H = .135 5.295 .000 Rejected ÃŽÂ ² 3,M = .072 .991 .324 ÃŽÂ ² 3,L = .140 5.482 .000 Firms being liquidity constrained due to least payout will have significant investment-cash flow sensitivity, and will be linked with high Q values in the market. (PO Theory) Cash Flow ÃÆ'— Q HA: ÃŽÂ ²3 >0 ÃŽÂ ² 3,H = .135 5.295 .000 Accepted ÃŽÂ ² 3,M = .072 .991 .324 ÃŽÂ ² 3,L = .140 5.482 .000 Dependent Variable: Investment (I/K) Table : Summarizes the results and explains that the hypothesis accepted is directly in correspondence with the aggregate hypothesis. As illustrated (Table 8) capital spending of low payout firms is positively and strongly influenced by the interaction term, consistent with the PO hypothesis, the parameter estimate for the high payout firms are also positive but marginally significant. Conclusion, Discussions, Implications And Future Research Conclusion The results illustrated above demonstrates that the positive relationship between the degree of the Investment-Cash flow relationship and Q represented latter in the aggregate data (Table 3) is concentrated in low or no dividend paying firms. This finding is in further support with the PO hypothesis. Discussions The objective was to study and test the causes of universal relationship between Cash Flow and Investment Spending. Hence, two hypotheses were included in the research to study the source of this relationship: the free cash flow hypothesis (FCF) hypothesis, which works on the assumption that managers prefer investing its free cash flow excessively into investment projects that are not profitable, and the pecking order hypothesis (PO) purports that managers are prone to investment comparatively less than the opportunity provided due asymmetric information-induced liquidity constraint. As advocated in favor of Pecking Order Theory by (Fazzari, Hubbard, Peterson, Blinder, Poterba, 1988) and many others, for groups which consists of small firms with low-dividend payout to fund capital spending, exhibits heavy reliance on cash flow and cash changes. The relationship can be more significantly studied when the impact of larger q value is associated with this group. Evaluating the impact of corporate governance on investment-cash flow relation requires a critical judgment as to how do the firms cash flow and the existing market value influence the investment decision. Financially constraint firms may have a larger impact on liquidity associated matters and managers might take discretion in choosing the right sources to tap. Agency cost may be involved in making such a decision where managers may consider paying dividend as a higher opportunity cost as it reduces the firms free cash flow to exploit new profitable investment projects. Implications and Recommendations In the current market situation where external pressures existing can also be taken into proxy. When managers making a capital investment decision they need to take in view other non-financial aspects that also influences the decisions to a certain extent. Furthermore, financial intermediaries having a certain level of involvement and sharing information sensitive to the market can also be a major factor that might be giving a varying result against Investment. Investing in profitable-investment projects can bring in greater resources to the firm in future and it entails a huge decision burden upon the shoulders of the managers. Shareholders expecting to earn a greater return through investing in them can also be undermined when manager decided to have a low payout policy. Funds generated internally is a possibility where there is a healthy cash flow, but it is also preferable if this free cash is invested into marketable security for allocating the resources into a profitable venture for a time being to make it a positive impression. Future Research In future studies there may be more aspects of cash flow-investment relationship which can be studied for assessing the degree impact it has on this relationship, i.e. sales, debt performance, capital structure, firm size, etc. The research study may also be improved if the observation of firms are increased that will in turn reflect a more clear picture about the relationship in the current scenario. References Almeida, H., Campello, M. (2007). Financial Constraints, Asset Tangibility, and Corporate Investment. The Review of Financial Studies , 20 (5), 1429-1460. Calomiris, C. W., Hubbard, R. G. (1995). Internal Finance and Investment: Evidence from the Undistributed Profits Tax of 1936-37. The Journal of Business , 68 (4), 443-482. Chung, K. H., Pruitt, S. W. (1994). A Simple Approximation of Tobins Q. Financial Management , 23 (3). Cleary, S. (1999). The Relationship between Firm Investment and Financial Status. The Journal of Finance , 54 (2), 673-692. Dedoussis, E., Papadaki, A. (2010). Investment spending and corporate governanc: Evidance from the ASE listed firms. Managerial Finance , 36 (3), 201-224. Donaldson, G. (1961). Corporate Debt Capacity: A Study of Corporate Debt Policy and the Determination of Corporate Debt Capacity. Division of Research, Graduate School of Business Administration, Harvard University . Drury, C. (2006). Cost and management accounting: an introduction (6 ed.). Cengage Learning EMEA. Fazzari, S. M., Hubbard, R. G., Peterson, B. C., Blinder, A. S., Poterba, J. M. (1988). Financing Constraints and Corporate Investment. Brookings Papers on Economic Activity , 1988 (1), 141-206. Goyal, V. K., Yamada, T. (2004). Asset Price Shocks, Financial Constraints, and Investment: Evidence from Japan. The Journal of Business , 77 (1), 175-199. Gugler, K., Mueller, D. C., Yurtoglu, B. B. (2004). Marginal q, Tobins q, Cash Flow, and Investment. Southern Economic Journal , 70 (3), 512-531. Hu, X., Schiantarelli, F. (1998). Investment and Capital Market Imperfections: A Switching Regression Approach Using U.S. Firm Panel Data. The Review of Economics and Statistics , 80 (3), 466-479. Hubbard, R. G. (1998). Capital-Market Imperfections and Investment. Journal of Economic Literature , 36 (1), 193-225. Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review , 76, 323-9. Kaplan, S. N., Zingales, L. (1997). Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints? The Quarterly Journal of Economics , 112 (1), 169-215. Malmendier, U., Tate, G. (2005). CEO Overconfidence and Corporate Investment. The Journal of Finance , 60 (6), 2661-2700. Modigliani, F., Miller, M. H. (1958). The cost of capital, corporation finance, and the theory of investment. American Economic Review , 48 (3), 261-97. Myers, S. C. (1984). The capital structure puzzle. The Journal of Finance . Quan, V. D. (2002). A rational justification of the pecking order hypothesis to the choice of sources of financing. Management Research News , 25 (12), 74-90. Riahi-Belkaoui, A. (1999). Capital structure: determination, evaluation, and accounting. Quorum. Schaller, H. (1993). Asymmetric Information, Liquidity Constraints, and Canadian Investment. The Canadian Journal of Economics , 26 (3), 552-574. Strecker, N. (2009). Innovation Strategy and Firm Performance: An Empirical Study of Publicly Listed Firms. Gabler Verlag. Vogt, S. C. (1994). The Cash Flow/Investment Relationship: Evidence from U.S. Manufacturing Firms. Financial Management , 23 (2), 3-20. Wang, G. Y. (2010). The Impacts of Free Cash Flows and Agency Costs on Firm Performance. Journal of Service Science and Management , 3 (4), 408-418.

Timeliness And Method Of Internal Communication Management Essay

Timeliness And Method Of Internal Communication Management Essay This final chapter will provide an overview of the information and most important findings of the research. Next, a broad analysis of the conclusions and amelioration aspects will be provided in order for the organization to improve their current business strategies with regard to corporate reputation. Finally strategies for improvements will be presented. 5.2 Conclusions One of the variables analyzed in the research is the way, timeliness and method of internal communication within the organization is conducted as part of the Corporate Communication variable. In this specific case, the internal communication was not rated as high as it should be when evaluating its importance in the day- to-day business operations. Although the vast majority agrees that internal communication within an organization is important to smoothen and facilitate the core tasks that the organization has to carry out and that it also impacts the corporate reputation, it was established to be below average. When new projects are introduced, these are not explained internally as the employees would like them to. The lack of this information implies that they, in most of the cases, learn about certain developments in the media instead of being the first ones to be informed. It is also very remarkable that, although the SBAB is classified as a vertical organization, the management decisions are not well communicated to the employees, according to 50% of the respondents. If an organization has a vertical manner of doing business, where most of the decisions are made by the Di in dialogue with the management, it is a must for the organization to have an impeccable top down communication. This is with the main focus to prevent misunderstandings and miscommunications in the core business. The employees fully agreed, with a score of 70%, that the organization is being managed in a top down way. A lack of internal communication can also be perceived externally by the tax payers which will result in a lack of credibility towards the organization itself. This clearly shows that, although team meetings have as their main objective to communicate decisions taken by the management, this is obviously not the case. However, although the fact that decisions are not well communicated, the employees do not get information from the outside world. Another important aspect in the communication process is the timeliness of the communication. In this specific case the organization scored a low grade because a majority of the respondents disagreed with the statements that information is timely provided when a new event is about to take place in the workplace. Another aspect that did not score as well as it should is information regarding change management. Most respondents think that changes are implemented and afterwards when questions come on behalf of the employees, they get the information regarding the change. Based on the questions asked by the researcher on the internal communication aspect of the communication, the relationship with the organizations reputation was established to be a moderate one with a correlation coefficient of .615. In other words, a positive relationship was established between these two variables meaning that the internal communication moderately affects the corporate reputation. With regard to the external communication variable on the other hand, a rather large percentage of the employees neither agreed nor disagreed with the statements regarding the organizations efforts to communicate plans of new projects and other events with the external audience. These percentages surpass half of the amount of respondents. However, they acknowledged SBABs efforts in communicating effectively and efficiently with the external stakeholders but there is definitely more to be done. Furthermore, almost 82% of the respondents definitely agreed on the fact that the external communication has an impact on the organizations reputation. In this case the correlation coefficient for this variable, external communication, in relationship with the organizations reputation, this was established to be .880 which means that there is definitely a high correlation between these two. These responses on the statements regarding these two variables regarding communication, are the main reason why the employees gave a 6- (5.92) for SBABs overall communication efforts. The variable that has greatly impacted this mark is the internal communication aspect which they consider to be below what is acceptable. The last variable to be analyzed in relationship with the corporate reputation is the corporate social responsibility strategy. The SBAB has scored very high in its efforts to give back to the society. The organizations strategy of giving back to the less fortunate children of our society and the involvement of the personnel in this process is a big hit with 95% of the respondents agreeing that these efforts help in the corporate reputation building. The overall mark provided for this business strategy is an 8.05. However, the relationship between CSR and corporate reputation was also established to be moderate (.619) because, as stated in the literature review, it is not mandatory for an organization to adopt this strategy in the reputation building process. Nevertheless, if this strategy is well implemented and consistent, it will definitely affect the stakeholders perception of the organization. For the organization to know what the steps are that need to be undergone in order to improve its way of doing business, it should know how it actually performs. Based on this, an analysis was also performed on the current reputation of the organization. It can be concluded that, although a lack of internal communication was identified, the employees do not think that the SBAB currently has a less positive reputation. More than 80% say that through the years, they heard more positive news about the SBAB than negative. Although there is a relatively large amount (respectively 41.7% and 50%) that say that the news that they hear about the SBAB in the media is not always positive and that they do not always receive a positive reaction when they tell an outsider that they work for the SBAB. 5.3 Recommendations In order to improve the reputation of the organization, the following actions should be taken to stimulate a clearer, timely and transparent communication towards the employees. The management should involve the employees more in the process of making decisions that directly affect the employees. In other words, stimulate more bottom-up communication as the employees can give valuable input in certain situations because they work in the field and definitely know better. This can be done by polls managed by the manager of each team. In the case a certain rule will be adapted, for example the team managers must gather with the team members and let them vote on the proposed change. The manager of each team must present their results in the management meeting with the accompanying arguments. After these have been analyzed, decisions can be made in personnel related aspects. Assign a person and a substitute when absent who are solely responsible for all communication towards the organization itself and the external audience (a Communication Officer). This in order to prevent misunderstandings and confusion about who is the one that gives the accurate information. Management meetings are mostly held once a month. Decisions taken and other significant information with regard to new projects and personnel, for example must be communicated to the Communication Officer who will develop a newsletter, on a monthly basis, to inform the internal audience properly. After the employees have been informed, decisions regarding the external audience must be made public through press releases and, where possible, television interviews. This last part is in order to achieve a greater awareness. All of these efforts must be done by the Communications Officer, thus by centralizing of the information channel, in order to also prevent misunderstandings and confusion by the press. This monthly bulletin will only cover management decisions and other objective information. For more subjective information about new colleagues, birthdays and other personnel-related, non-work related activities, the BAB Aktueel must be published quarterly as it is currently done.. In order to create a higher level of awareness of the core tasks of the organization and its corporate social responsibility strategy, a monthly column can be publicized in newspapers (both in Papiamentu and Dutch) as well as in short television program of approximately 5 minutes to be aired during prime time on both local television channels, in which an employee of the organization is interviewed about tax legislation changes, the way and reason of a tax audit and to highlight the organizations efforts in helping 150 less fortunate children of the society etcetera. A timely and accurate communication is not only part of the reputation building process but also in the maintenance hereof. A method of continuously monitoring the corporate reputation is also through an evaluation form that has to be handed out by the tax auditor to the tax payer. Although paying taxes and correcting what did not go well is not the most favorite subject and people tend to be negative about it; however, if the process has gone according to the rules and with the respect needed, the organization can also receive valuable feedback from the external stakeholders also. If these recommendations are aligned next to each other, the conclusion can be drawn that in order for the organization to be perceived positively among both the internal and the external stakeholders, timely and accurate communication is the key aspect. The communication within the organization itself and from the organization towards the outside world is like the heart in a human body. It is the main organ and the one which life is not possible without. A smooth corporate communication will definitely facilitate the core business and from an external point of view the organization will be considered a transparent one. Corporate communication Organization Figure 1 Human body and the heart function

Computers Should Not be Teachers :: Teaching Education

Computers Should Not be Teachers Imagine being a one-year-old, sitting in front of a computer on your parent’s lap. The computer, in its lovely electronic voice, says â€Å"D† is for dog. Flashy screens and unfamiliar voices are not going to register as anything more then entertainment for a young child. Is it really necessary to be on a computer at that young of an age learning the information that parents should be teaching? Try to think ahead a decade latter to a college algebra course. The only resources are a computer and a poorly designed math program on compact disc. Confusion arises, you do not understand how to do functions and the computer’s method is just not working. All that is wanted is a straight answer from a real teacher, and the computer cannot possibly offer that. For both the child and the college student hands on learning taught by a human would be more affective. Parents and teachers need to take full responsibility for teaching in all levels of education. Many teachers an d parents in today’s technologically advancing society are changing to a more computerized way of teaching that is less effective and can harm the way students learn. Parents are being told, through the media, that they have a responsibility to begin preparing their children for a future of computers and technology which will advance them onto top schools and high paying jobs. Parent’s fear that without an early start their children will fall behind and never catch up technologically. Parents are accomplishing this by putting their children as young as eight months in front of a computer. Many companies have designed computer programs for children two and under to learn numbers and letters before they can even speak a sentence. Keyboards have even been designed for small hands and that are drool proof. The concept companies are trying to sell is; if parents buy the programs their children will be smarter. Can a developing child really become smarter just by being exposed to a computer at a very early age? In the first few years of development children learn many of the skills that will carry them through the rest of their lives. Some of the most important skills are language and socialization. Children learn to problem solve, find solutions and to be creative at an early age. They also develop and improve motor skills, hand eye coordination, and depth perception, which cannot be taught by any computer.