The Risk Management Assignment Of The Macville Pty Ltd

Reflection statement The risk management assignment of the Macville Pty Ltd involves different types of the elements that helps them to facilitate an efficient and effective operation. Elements of Macville risk management generally include different policies and procedures, business planning and budgeting, review regarding the risk management, different monthly report and external audits so they can understand the current position of the organisation and enable the quick response so they can avoid risks regarding the strategic as well as commercial risk. Different policies regarding the human resources, corporate governance and finance helped them to understand different types of problems they are currently facing so they can develop†¦show more content†¦There are multitudes of internal and external risks associated with running the new venture with PNG villagers. The Operations Manager, the PNG Fairtrade Consultant and myself will be critical in assessing those risks, implementing controls and treatments and reporting on any incidents that may occur. High expectations are associated with this new venture, such as not having any effect on domestic production, jobs, advancement etc†¦ These high expectations create risks of failure to meet those expectations. The Operations Manager and myself will need to clearly assess the risks and communicate them skillfully to the stakeholders and the public. RISK REGISTER- MACVILLE RISK RISK Consequence RISK Likelihood RISK Level Controls Hierarchy control Risks related to finance Loss of revenue High High Hire more employees with commerce background Engineering controls Risks related to written policy Non-compliance with regulatory standards Low High Implement effective policies Elimination Risks related to handle business with more professionalism Reputation damage Medium Medium Hire a professional for the implementation of an effective strategy to maintain professionalism Substitution Risks related to reputation damage as a result of the PNG new venture Reputation

Criminal Justice vs. Community Justice Essay - 1403 Words

Criminal Justice vs. Community Justice Crime is defined as an act or omission that the law makes punishable. There are different ways in dealing with crime. One, our current system, is the criminal justice approach. Also known as retributive justice, this system is more offender directed than anything else. The other system, which many people think is better, is the community justice, or restorative approach. The restorative approach is much more victim oriented. There is a debate over which system should be used to deal with crime. The two differ in many ways. One of the areas in which the two differ is the question of whom is the crime a violation of? The criminal justice system believes that crimes are a violation against†¦show more content†¦This â€Å"coming together† may be one single event or may occur through a series of meetings, depending on the case. 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Ownership Structure, Managerial Behavior and Corporate Value Free Essays

Journal of Corporate Finance 11 (2005) 645 – 660 www. elsevier. com/locate/econbase Ownership structure, managerial behavior and corporate value J. We will write a custom essay sample on Ownership Structure, Managerial Behavior and Corporate Value or any similar topic only for you Order Now R. Daviesa, David Hillierb,T, Patrick McColganc a University of Strathclyde, UK b University of Leeds, UK c University of Aberdeen, UK Received 21 November 2002; accepted 6 July 2004 Available online 20 April 2005 Abstract The nonlinear relationship between corporate value and managerial ownership is well documented. This has been attributed to the onset of managerial entrenchment, which results in a decrease of corporate value for increasing levels of managerial holdings. We propose a new structure for this relationship that accounts for the effect of conflicting managerial incentives, and external and internal disciplinary monitoring mechanisms. Using this specification as the basis for our analysis, we provide evidence that the managerial ownership–corporate value relationship is co-deterministic. This finding is at odds with recent work which reports that corporate value determines managerial ownership but not vice-versa. D 2005 Elsevier B. V. All rights reserved. JEL classification: G32 Keywords: Ownership structure; Capital expenditure; Corporate value; Tobin’s Q 1. Introduction In a market without agency problems, corporate managers will choose investments that maximise the wealth of shareholders. In practice, competing objectives which are incompatible with the shareholder wealth-maximising paradigm may also be pursued. T Corresponding author. Leeds University Business School, University of Leeds, Maurice Keyworth Building Leeds, LS2 9JT, UK. Tel. : +44 113 3434359; fax: +44 113 3434459. E-mail address: d. j. hillier@Leeds. c. uk (D. Hillier). 0929-1199/$ – see front matter D 2005 Elsevier B. V. All rights reserved. doi:10. 1016/j. jcorpfin. 2004. 07. 001 646 J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645–660 Following Jensen and Meckling (1976), a large literature has developed that examines how managerial behavior impacts upon firm performance. A vibrant strand of this literature concerns the relati onship between managerial ownership levels, the direct investment decisions made by management and the inherent value of the firm, as proxied by Tobin’s Q ratio. Morck et al. 1988), McConnell and Servaes (1990), and Hermalin and Weisbach (1991) provide evidence of a significant nonlinear relationship between corporate value and managerial ownership. Specifically, value increases with managerial holdings for low levels of ownership. At some level, managers become entrenched within the firm resulting in a decrease in firm value. However, whereas Morck et al. (1988) and Hermalin and Weisbach (1991) document further changes in the corporate value–managerial holdings relationship at high levels of equity ownership, McConnell and Servaes (1990) report no such change. Recent work has built upon the findings of Demsetz and Lehn (1985) who argue that levels of managerial ownership will be determined endogenously in equilibrium. Moreover, Cho (1998) and Himmelberg et al. (1999) have shed doubt upon the earlier findings of Morck et al. (1988) and McConnell and Servaes (1990) by controlling for the effects of endogeneity and unobservable (to the econometrician) firm characteristics in their analysis. After controlling for the effects of endogeneity in the corporate value– managerial holdings relationship, they showed that managerial ownership had little or no effect on corporate value and investment. Short and Keasey (1999) and Faccio and Lasfer (1999) utilize a cubic specification to model the corporate value–managerial holdings relationship and both report a significant nonlinear functional form, similar to Morck et al. (1988), for British companies. However, neither study fully examines the misspecifying impact of endogeneity on their results. In this paper, we propose a new structure to the managerial ownership–corporate value relationship which captures a more complex characterisation of the evolving behavior of managers. We argue that at high levels of managerial ownership when external market discipline becomes neffective, there will be a resurgence of entrenchment behavior. With equity holdings around 50%, managers will have implicit control of their company, but still do not have objectives completely aligned to external shareholders. Only at very high levels of managerial holdings are incentives akin to other shareholders. When this model is applied to a l arge sample of firms incorporated in the UK, managerial ownership is seen to have a significant impact on corporate value. This relationship is endogenous, and consistent with Cho (1998) and Himmelberg et al. (1999), corporate value has a corresponding effect on managerial holdings. We also find that although ownership levels are affected by firm level investment, there is no evidence of the reverse occurring. In the next section we outline our model of the managerial ownership–corporate value relationship. We present empirical results in Section 3 and conclude in Section 4. 2. The model In this section, we propose an alternative structure to the managerial holdings–corporate value relationship and argue that the cubic, or simpler representations, used in earlier J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645–660 647 studies1 are unnecessarily restrictive and misspecified. The model that is presented here captures further nonlinearities in this relationship at high levels of managerial holdings and has a quintic specification. Management is faced with both negative and positive incentives to ensure that they follow objectives which maximise shareholder wealth. The effectiveness of these incentives is potentially a function of the level of managerial ownership in the firm. We view the propensity of management to maximise shareholder wealth to be a function of three unobserved factors: external market discipline, even if it is weak, internal controls and convergence of interests. Moreover, the strength of each factor can be viewed as a function of the level of managerial ownership in the firm. 2 2. 1. Low levels of managerial ownership For low levels of managerial ownership, external discipline and internal controls or incentives will dominate behavior (see Fama, 1980; Hart, 1983; Jensen and Ruback, 1983). Empirically, Morck et al. (1988), McConnell and Servaes (1990) and Hermalin and Weisbach (1991) report results consistent with this behavior for the relationship between managerial holdings and corporate value. However, there is also the possibility that lower levels of ownership within this range have endogenously arisen from performance related compensation packages, such as stock options and stock grants rather than increased ownership in itself leading to higher Q ratios. 2. 2. Intermediate levels of managerial ownership At intermediate levels of managerial ownership, management interests begin to converge with those of shareholders. However, with greater ownership comes greater power in the form of voting rights. Managers may, at this level of holdings, maximise their personal wealth through increasing perquisites and guaranteeing their employment at the expense of corporate value. In addition, while low managerial ownership levels may have arisen through the vesting of compensation plans, it is unlikely that such plans will provide management with a moderate ownership stake in the firm. Moreover, even though external market controls are still in place, these and the effect of convergence of interests are not strong enough to align the behavior of management to shareholders. Managerial labour markets operate on the principal that poorly performing 1 See Morck et al. (1988), McConnell and Servaes (1990), Hermalin and Weisbach (1991), Cho (1998) and Himmelberg et al. (1999) for US companies and Short and Keasey (1999) and Faccio and Lasfer (1999) for UK companies. 2 For example, since compensation packages such as stock options are a transfer of wealth from shareholders to management, their value will lessen as managerial ownership increases. External market discipline is also a function of managerial ownership. Large shareholdings by top management act as a deterrent for takeovers because of the greater ability to oppose a hostile bid or drive up premiums to the point where bidders no longer view the target company as a positive net present value investment Stulz (1988). Finally, internal controls in the form of monitoring from large shareholders and corporate boards should reduce the scope for managers to diverge greatly from the interests of shareholders. Again, however, such discipline is likely to be inversely related to managerial control Denis et al. (1997). 648 J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645–660 anagers can be removed and appropriately disciplined. Studies by Denis et al. (1997) in the US and Dahya et al. (2002) in the UK both find an inverse relation between topmanagement turnover and managerial ownership. This lack of discipline provides evidence of a deficiency in incentives for managers to maximise shareholder value at this level of owners hip. Franks and Mayer (1996) also report that hostile takeover targets in the UK are not poorly performing firms, which is in contrast to the findings of a disciplinary role for corporate takeovers in the US by Martin and McConnell (1991). In this context, Franks and Mayer (1996) provide significant evidence that takeovers in the UK may not act to remove a self-serving board even when they are performing poorly. This lack of disciplinary control over poorly performing management may strengthen management’s ability to pursue sub-optimal corporate policies at intermediate ownership levels. 2. 3. High levels of managerial ownership (less than 50%) As levels of managerial equity ownership grow, objectives converge further to those of shareholders. At ownership levels, below 50% management do not have total control of the firm and external discipline still exists. While perhaps no longer being subject to any major discipline from external takeover markets, it is likely that even at these levels of ownership, managers are still subject to discipline from external block shareholders. This is particularly true in the UK, where because of strong informal ties between institutions (Short and Keasey, 1999), a lax regulatory environment concerning the ownership of listed companies (Roe, 1990) and low monitoring costs (Faccio and Lasfer, 1999), institutional activism is stronger than in the US. This view is also consistent with Franks et al. (2001) contention of strong minority protection laws in the UK, whereby large shareholders cannot transact with related companies without the consent of the firm’s minority shareholders. The UK regulatory framework stands in contrast to US corporate law which limits minorities to seeking redress after the related party transaction has taken place. Combined with monitoring from UK institutions, this may allo w external shareholders to impose some form of control on management even at elatively large levels of managerial ownership. 2. 4. High levels of managerial ownership (greater than 50%) At levels above 50% ownership, management has complete control of the company. Although atomistic shareholders are unlikely to have been able to in influence managers at far lower levels of ownership than this, there is always a possibility that a cartel of blockholders, allied with minority shareholder’s rights under UK company law, may be able to mount a challenge to management if they fail to make decisions in shareholders’ best interests. For a more in-depth discussion of the institutional differences and similarities between the United Kingdom and United States, see Short and Keasey (1999) and Faccio and Lasfer (1999). 3 J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645–660 649 At greater than 50% managerial ownership, this is no longer likely to be a serious issue to management. Furthermore, with majority ownership, the probability of a hostile takeover effectively becomes zero. The failure of external discipline combined with a lack of blockholder incentives above 50% may result in a decrease in corporate value for a small window of managerial holdings above this level. This fall in corporate value is consistent with the theoretical predictions of Stulz (1988). 2. 5. Very high levels of managerial ownership Finally, as managerial shareholdings rise to very high levels, management effectively become sole owners of the company. This would lead to value-maximising behavior as predicted by Jensen and Meckling (1976). Consistent with Morck et al. 1988), Short and Keasey (1999) and Faccio and Lasfer (1999) at above a certain level of ownership, corporate managers are faced with such severe financial penalties for failing to maximise the value of their companies that they are forced to make decisions which will maximise firm value, regardless of how this affects their private benefits of control. 2. 6. Summary Our characterisation of a highly nonlinear relationshi p between managerial equity holdings and corporate value is in contrast to earlier studies (Morck et al. , 1988; McConnell and Servaes, 1990; Hermalin and Weisbach, 1991; Cho, 1998; Himmelberg et al. 1999)4, which posit fewer turning points in their analysis. There is little theoretical basis on which the individual turning points can be determined, and the findings of Kole (1995) suggest that these will be in influenced by the size of the firms in the sample. However, it is expected that the second local maximum will be in the region of 50% managerial ownership reflecting the stage at which management gain total control of the company. In the next section, the main tests of our hypotheses will be carried out. 3. Empirical results 3. 1. Description of the data We use data on managerial and external block ownership for 1995 from the MacMillan London Stock Exchange Yearbook for 1996 and 1997. The Yearbook provides summary accounting data including a consolidated balance sheet, information on company directors, legal information on the company’s lawyers, auditors and stockbrokers, principle activities, company history, capital and dividend payments, and industrial sector for the McConnell and Servaes (1990) modelled the corporate value–managerial ownership relationship as a quadratic function, which by construction has only one turning point. 650 J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645–660 vast majority of all quoted companies and securities. 5 We restrict our attention to nonfinancial companies only and require that each firm has complete managerial and external ownership data for 1995, which leaves 802 industrial companies in our sample. 6 Data on capital expenditures, to tal assets employed, after tax profits, depreciation, leverage, equity market values, and research and development costs are collected from Datastream. We estimate Tobin’s Q ratio (our proxy for corporate value) using the formula below: Q? MVEQ ? PREF ? DEBT BV ASSETS ? 1? where: MVEQ=the year-end market value of the firm’s common stock; PREF=the yearend book value of the firmTs preference shares (preferred stock); DEBT=the year-end book value of the firmTs total debt; and BV ASSETS=the total assets employed by the firm, which is measured as total assets minus current liabilities. Our measure is consistent with the modified version of the formula as used by Chung and Pruitt (1994) who find that 96. 6% of the variability in the popular Lindenberg and Ross (1981) algorithm of Tobin’s Q is explained by their approximation. Our method also avoids the data availability problems which arise from using the more rigorous algorithms proposed by Lindenberg and Ross (1981) and Lewellen and Badrinath (1997) in order to estimate the replacement cost of assets. We use book values of preferred stock and long-term debt, rather than the market values proposed by Lindenberg and Ross (1981) and Lewellen and Badrinath (1997). In the UK, there is a far less active market for the trading of corporate debt than that which exists in the US, forcing us to rely on book values for these variables. In a final stratification of our sample, we mitigate the problem of potential outliers and trim 25 firms with the largest and smallest Tobin’s Q measure, leaving a final sample of 752 firms. 7 Table 1 presents descriptive statistics for our sample data. The mean managerial ownership stake of all board members is 13. 02%, which is similar to comparable US studies, but slightly lower than Faccio and Lasfer (1999) who report mean ownership of 16. 7%. Tobin’s Q is slightly higher than that reported for related US work with a mean value of 1. 96. The standard deviation of Tobin’s Q is 1. 21, which is also greater than other studies. However, it is substantially less than the mean of 2. 47 reported by Doukas et al. (2002) and is relatively similar to the mean value of 1. 86 that Short and Keasey (1999) report for their market valuation ratio. 8 The mean blockholder ownership is 37. 34% and is on a par with that reported for US firms by McConnell and Servaes (1990) (32. 4%) and 34. 57% reported by Faccio and Lasfer (1999) for UK firms. The full range of firm sizes is included in the sample with the 5 To establish the reliability of the summary ownership data, we carried out a correlation analysis of a subsample of 422 firms from he original data set of 802 companies (52. 62%) for which we were able to obtain company annual reports. The yearbook data and company accounts data exhibited a correlation of 0. 90, with a pvalue of 0. 00. We also establish the robustness of our data by re-estimating the model using data for 1997. This result is discussed later in this section. 6 Recently listed, merged or acquired firms are not included. 7 This is a larger sample than that used by Morck et al. (1988)—371 firms, Cho (1998)—326 firms and Himmelberg et al. (1999)—maximum 427 firms in any 1 year. Measured as the market value of equity divided by the book value of equity, minus any intangibles. J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645–660 Table 1 Descriptive statistics Variable Management ownership Blockholder ownership Largest stakeholder Capital expenditures Total assets employed After tax profits less depreciation/assets employed Debt/assets employed Market value of equity Research and development Tobin’s Q Mean 13. 02% 37. 34% 18. 82% 21,221 255,642 0. 1425 0. 1411 335 2918 1. 9647 S. D. 18. 06% 23. 57% 21. 64% 75,317 1,583,274 0. 4763 0. 252 1399 44,108 1. 2092 Minimum 0. 00% 0. 00% 0. 00% 7 268 A10. 977 0. 0000 0. 68 0 0. 4502 651 Maximum 79. 90% 100. 00% 100. 00% 1,024,200 37,774,000 3. 4207 4. 8358 26,224 1,198,988 7. 0997 Managerial own ership data measures the total level of holdings held by company management that are greater than 0. 5% of a company’s equity. Blockholder data measures the total level of holdings by outside blockholders that are greater than 3% of a company’s equity. Largest stakeholder is the largest single outside blockholder that holds at least 3% of company’s outstanding equity. Capital expenditures (thousands), total assets employed (thousands), after tax profits, depreciation, leverage, equity market values (millions) and research and development costs (thousands) are collected from Datastream. Tobin’s Q is measured as the ratio of the market value of equity and book values of debt and preferred equity to the book value of assets in the firm minus current liabilities. Shareholdings data is taken from the London Stock Exchange Yearbook for 1996 and 1997. All data are for industrial companies quoted on the London Stock Exchange in 1995. mallest company having an equity market capitalization of o680,000 and the largest company’s equity valued at approximately o26 billion. The mean market capitalization of firms in the sample is o335 million. Table 2 provides the distribution of sample statistics grouped by managerial ownership. A very large proportion of the sample (62%) have managerial ownership levels less than or equal to 10%. However, a larg e fraction of companies (11%) also in the sample had boards Table 2 Breakdown of sample by managerial ownership Manager level Ownership Number of firms 464 87 75 41 34 26 21 4 Blockholder ownership, % 43. 34. 5 34. 4 24. 0 22. 7 13. 0 12. 7 5. 8 Tobin’s Q 1. 952 2. 033 1. 736 2. 109 2. 113 2. 257 1. 933 1. 808 Total assets employed 393,861 44,093 26,186 34,322 35,864 28,190 14,234 10,127 Capital expenditures/ assets employed 0. 106 0. 161 0. 124 0. 117 0. 114 0. 100 0. 099 0. 114 Liquidity 0. 130 0. 129 0. 157 0. 194 0. 194 0. 177 0. 169 0. 239 0VMOb10% 10VMOb20% 20VMOb30% 30VMOb40% 40VMOb50% 50VMOb60% 60VMOb70% 70VMOb100% Managerial ownership (MO) data measures the total level of holdings held by company management that are greater than 0. 5% of a company’s equity. Blockholder ownership measures the total level of holdings by outside blockholders that are greater than 3% of a company’s equity. Capital expenditure (thousands), total assets employed (thousands), after tax profits and equity market values (millions) are collected from Datastream. Liquidity is measured as cashflow divided by total assets employed. Tobin’s Q is measured as the ratio of the market value of equity and book values of debt and preferred equity to the book value of assets in the firm minus current liabilities. Shareholdings data is taken from the London Stock Exchange Yearbook for 1996 and 1997. All data are for industrial companies quoted on the London Stock Exchange in 1995. 652 J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645–660 Table 3 Regression results for Tobin’s Q on managerial ownership Variable Coefficient t-Statistic Adj. R 2 Intercept 1. 85 28. 14 0. 017 MO 0. 12 3. 23 MO2 A0. 013 A3. 08 F MO3 4. 63A10 2. 82 2. 651 A4 MO4 A6. 73A10 A2. 53 A6 MO5 3. 36A10A8 2. 24 The following equation was estimated using data for 752 firms listed on the London Stock Exchange during 1995. Q ? a0 ? a1 MO ? a2 MO2 ? a3 MO3 ? a4 MO4 ? a5 MO5 ? e where Q is Tobin’s Q and MO is managerial ownership. Ownership data is taken from the London Stock Exchange Yearbook and Tobin’s Q is calculated from Datastream. which owned at least 40% of all outstanding equity. As would be expected, outside blockholder ownership decreases with managerial ownership. At managerial ownership levels of 30%, blockholder ownership is slightly less at 24%. It is probable that external discipline, as provided by blockholders, would still be strong at these levels of managerial holdings, particularly where informal coalitions among blockholders are more prominent (Short and Keasey, 1999). At higher levels of managerial holdings, blockholder ownership decreases sharply leading to a collapse in the power of blockholders. Managerial ownership is a decreasing function of company size, which is consistent with Demsetz and Lehn (1985). Although firm sizes in the UK are considerably smaller than US firms, the ratios in Table 2 are similar to summary statistics provided in Morck et al. (1988), McConnell and Servaes (1990), Cho (1998) and Himmelberg et al. (1999). Table 2 also illustrates the nonlinear relationship between Tobin’s Q and managerial holdings. Visual inspection indicates two maximum points in the region of 10% to 20% and 50% to 60%, respectively. The convergence of managerial interests to those of shareholders at very high levels of ownership is not apparent at this stage because of the small number of companies with managerial holdings above 70%. However, the statistics for all other groupings are consistent with our theoretical motivation. 3. 2. Estimation of ownership breakpoints In order to model the Tobin’s Q–managerial ownership (MO) function as having two maximum and two minimum turning points, we specify a quintic function, as follows: Q ? 0 ? a1 MO ? a2 MO2 ? a3 MO3 ? a4 MO4 ? a5 MO5 ? e ? 2? For the nonlinear relationship discussed in Section 2 to be valid, the coefficients in Eq. (2) must have the following signs: a 0N0; a 1N0; a 2b0; a 3N0; a 4b0; a 5N0. The estimated values of the coefficients in Eq. (2) are given in Table 3. 9 The intercept coefficient, which is an estimate of Tobin’s Q i n firms with no managerial holdings, is 1. 85. Each slope coefficient is of the correct sign and statistically significant at the 5% level. Although the It is clear that Tobin’s Q will be in influenced by more than just managerial ownership. However, the objective of this paper is to investigate whether the standard quadratic and cubic specifications used in previous studies are too simplistic. To maintain parsimony, we therefore omit other factors from this specific model. Other relevant factors are incorporated into the analysis in a later table. 9 J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645–660 653 Estimated Relationship between Tobin’s Q and Managerial Ownership 2. 40 2. 20 2. 00 1. 80 1. 60 1. 40 1. 20 0 0. 1 0. 2 0. 3 0. 4 0. 5 0. 6 0. 7 0. 8 0. 9 Tobin’s Q Insider Ownership Fig. 1. Estimated relationship between Tobin’s Q and Managerial Ownership. Tobin’s Q was modelled as a quintic function of insider ownership using ordinary least squares regression. The estimated regression line is: Q=1. 85+0. 12IOA0. 013OI2+4. 63A10A4IO3A6. 73A10A6IO4+3. 36A10A8IO5. adjusted R 2 is low, it is similar to that found in comparable US studies. The use of this model as a basis to estimate managerial ownership turning points leads to four critical values: 7. 01%, 26. 0%, 51. 4%, 75. 7% and is illustrated in Fig. 1. To establish the robustness of our regression model, the spline approach as applied by Morck et al. (1988), Cho (1998) and Himmelberg et al. (1999) to estimate breakpoints was carried out using our generated turning points. Table 4 presents the coefficients resulting from the piecewise linear regression. Similar to Table 3, each coefficient has the expected sign and all but one variable is statistically significant at the 5% level. The only variable that is not significant, MOover 76% , has the correct sign. The probable cause for the lack of significance is the small number of firms in this managerial ownership grouping. An examination of these results suggests that Tobin’s Q increases in firms for managerial ownership levels up to 7% and then declines to ownership levels of 26%. This is almost identical to the turning points in Morck et al. (1988) and Himmelberg et al. (1999) (5% and 25%, respectively) and is comparable to Cho (1998), who uses breakpoints of 7% and 38%. However, it differs from the UK studies of Short and Keasey (1999) and Faccio and Lasfer (1999) who each reports two turning points of 12. 99% and 41. 99%, and 19. 68% and 54. 12%, respectively. Earlier studies limited the turning points to two but in our extension, it is clear that there are another two turning points at much higher levels of managerial ownership. It also appears that market discipline has an influence on managerial objectives up to the point where the board takes complete control (51%). Tobin’s Q then decreases until ownership levels reach 76%, after which Q increases. Denis and Sarin (1999) argue that cross-sectional studies may be subject to bias, whereby they fail to account for events with potentially large valuation consequences. 10 10 Examples of such events may include receiving a takeover bid, top management turnover, etc. 654 J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645–660 Table 4 Spline regression results for Tobin’s Q on managerial ownership Variable Coefficient t-Statistic Adj. R 2 Intercept 1. 854 28. 38 0. 012 MOup 0. 056 2. 93 to 7% MO7% to 26% MO26% 0. 0187 2. 57 2. 769 to 51% MO51% A0. 053 A1. 99 to 76% MOover 0. 624 1. 12 76% A0. 020 A2. 62 F The following equation was estimated using data for 752 firms listed on the London Stock Exchange during 1995. Q ? a0 ? a1 MOup to 7% ? a2 MO7% to 26% a3 MO26% to 51% ? a4 MO51%to 76% ? a5 MOover 76% ?e where Q is Tobin’s Q and MOup to 7%=managerial ownership if managerial ownership b7%, =7% if managerial ownershipN7%. MO7% to 26%=0 if managerial ownership b7%, =managerial ownership minus 7% if 7%bmanagerial ownershipb26%, =26% if managerial ownershipN26%. MO26% to 51%=0 if managerial ownershipb26%, =managerial ownership m inus 26% if 26%bmanagerial ownershipb51%, =51% if managerial ownershipN51%. MO51% to 76%=0 if managerial ownership b51%, =managerial ownership minus 51% if 51%bmanagerial ownershipb76%, =76% if managerial ownership N26%. MOover 76%=0 if managerial ownershipb76%, =managerial ownership minus 76% if managerial ownershipN76%. Ownership data is taken from the London Stock Exchange Yearbook and Tobin’s Q is calculated from Datastream. As a further test of robustness, we carried out the quintic analysis for managerial ownership and Tobin’s Q for the same sample of available firms in 1997. 11 Again, each coefficient was significant with the correct signs and the turning points from the estimated model were relatively stable at 7. 9%, 26. 5%, 55. 2% and 86. 2%. . 3. Endogeneity of managerial equity ownership, investment and corporate value To analyse the effects of endogeneity in the managerial ownership, investment and corporate value relationship, we follow Cho (1998) and carry out a simultaneous equations analysis using two-stage least squares. Cho (1998) and Himmelberg et al. (1999) showed that once endogeneity was controlled, the perceived impact of managerial ownership on corporate value d isappeared. Moreover, corporate value was found to positively affect levels of managerial ownership. It is possible that if the model specification employed by these studies is wrong, what appears to be a lack of statistical significance in the endogenous variables in the simultaneous equations analysis may actually be due to errors in variables arising from the intermediate regressions. We re-run the two-stage least squares analysis of Cho (1998) using our more complex specification. 12 The control variables in our regression are the same as in Cho (1998). Namely, managerial ownership, investment and corporate value are Some firms fell out of the sample because of mergers, delisting, and being taken over. Cho (1998) also attempts to control for specification error by re-estimating his simultaneous regression analysis using managerial ownership as a linear variable and again finds no relationship between managerial ownership and corporate value. However, if indeed there is a nonlinear relationship between ownership and corporate value, such an approach would fail to capture this. 12 11 J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645–660 655 defined to be endogenously determined by each other as well as some additional relevant exogenous variables. That is: Managerial Ownership ? ? market value of firm0s common equity; corporate value; investment; volatility of earnings; liquidity; industry? Corporate Value ? g? managerial ownership; investment; leverage; asset size; industry; block ownership; largest stakeholder? Investment ? h? managerial ownership; corporate value; volatility of earnings; liquidity; industry? For comparability, we define each of the above vari ables as in Cho (1998). For each company, industry dummy variables are set equal to one for each Financial Times Industry Classification (FTIC) grouping that sample firms lie within, and zero otherwise. In addition to the variables used by Cho (1998), we include blockholder ownership and largest stakeholder in the corporate value regressions to reflect the potential impact of blockholder discipline in the UK and the role of a founding or dominant individual on corporate value. All accounting and market variables are taken at the financial year-end from Datastream. In Table 5, we report results from the simultaneous equations analysis. Taking the managerial ownership regression first, all variables with the exception of investment have coefficients with the expected sign. Managerial ownership is negatively related to the market value of equity, which reflects the fact that wealth constraints and risk-aversion will prevent managers from holding substantial stakes in large firms. Firm level liquidity is shown to be positively related to managerial ownership, which is a stronger result than Cho (1998) who reported no significance for this variable. Importantly, Tobin’s Q is found to be significant and positively related to the level of managerial ownership. This is consistent with Cho (1998) but is opposed to Demsetz and Villalonga (2001), who find the opposite effect. This result suggests that managers tend to hold larger stakes in firms that are successful or have higher corporate value. This may also be indicative of successful managers benefiting from equity-related compensation policies. The investment variable, which has a negative impact on managerial ownership is surprising as theory predicts that firm level investment will be positively related to managerial ownership. Himmelberg et al. (1999) contend that firms with high investment spending will have high managerial ownership to alleviate the monitoring problem caused by discretionary managerial spending. However, Jensen (1986) argued that firms may overinvest as a result of an earnings retention conflict, rather than underinvest as Jensen and Meckling’s (1976) moral hazard theory would predict. When a firm is in this situation, managers may be able to maximise their size-related compensation by overinvesting, but are aware that this may ultimately reduce the value of their shareholdings. Although tentative, this could in part explain the negative relation between investment and ownership. Cho (1998) also finds a negative (but insignificant) coefficient on the investment variable using both capital and research and development expenditures. 56 J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645–660 Table 5 Simultaneous equations analysis of managerial ownership, corporate value and investment Variable MVEQ Tobin’s Q Volatility Liquidity Investment Leverage Asset size Largest stakeholder Blockholder ownership MO MO2 MO3 MO4 MO5 Industry dummies Adj. R 2 F Managerial ownership A1. 8A10 (A3. 74) 0. 127 (4. 63) A1. 0A10A6 (A0. 74) 0. 035 (2. 24) A1. 314 (A2. 67) A5 Corporate value Investment 0. 073 (2. 35) 3. 89A10A6 (A2. 86) 0. 013 (1. 01) Yes 0. 045 8. 014 5. 136 (2. 23) 1. 088 (4. 36) 3. 33A10A8 (1. 17) A0. 20 (A0. 06) A0. 837 (A2. 60) 1. 588 (3. 07) A0. 395 (A2. 22) 0. 037 (1. 64) A0. 001 (A1. 14) 1. 9A10A5 (0. 76) Yes 0. 033 3. 497 A0. 035 (A0. 46) 0. 018 (0. 72) A0. 003 (A0. 92) 1. 72A10A4 (1. 03) A3. 12A10A7 (A1. 07) Yes 0. 009 2. 497 Results from a simultaneous equations analysis of managerial ownership, corporate value and investment for 752 firms, using the two-stage least squares method to estimate the following equations: Managerial Ownership ? f ? market value of firm0s common equity; corporate value; investment; volatility of earnings; liquidity; industry? CorporateValue ? g? anagerial ownership; investment; financial leverage; asset size; industry; block ownership; largest stakeholder? Investment ? h? managerial owner ship; corporate value; volatility of earnings; liquidity; industry? In the above equations, managerial ownership measures the total level of holdings held by company management that are greater than 0. 5% of a company’s equity. Blockholder data measures the total level of holdings by outside blockholders that are greater than 3% of a company’s equity. Largest stakeholder is the largest single outside blockholder that holds at least 3% of company’s outstanding equity. Investment is defined as capital expenditure divided by total assets employed, leverage is the ratio of total debt to total assets employed and liquidity is measured as cashflow divided by total assets employed. Capital expenditure, total assets employed, after tax profits, depreciation, leverage, equity market values and profit volatilities are collected from Datastream. Tobin’s Q is measured as the ratio of the market value of equity and book values of debt and preferred equity to the book value of assets in the firm minus current liabilities. Shareholdings data is taken from the London Stock Exchange Yearbook for 1996 and 1997. All data are for industrial companies quoted on the London Stock Exchange in 1995. t-Statistics are in parenthesis. The estimated coefficients from the corporate value regression are given in the second column of Table 5. Corporate value is shown to be positively related to investment and leverage. While the investment coefficient is as expected, the sign of the leverage variable requires more discussion. Morck et al. 1988) find that leverage has a negative but insignificant impact on corporate value and attribute this to the possibility of managers in highly levered firms holding a higher than average level of ownership. However consistent with our results, McConnell and Servaes (1990) report a positive significant coefficient for leverage. Leverage can have various effects on firm value. The notion that high debt levels lead to greater corporate value has been argued by Modigliani and Miller (196 3) with respect J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645–660 57 to valuable tax shields, Ross (1977) and Myers (1977) with respect to a signalling hypothesis and Jensen’s (1986) free cashflow hypothesis. Ultimately, leverage is one way of imposing external discipline on management and if it is effective, will lead to increased corporate value. Alternatively, Demsetz and Villalonga (2001) interpret a negative association between leverage and firm value as being due to relative inflation between the current time period and the earlier time period where companies had issued much of their debt. We view the most important result from the corporate value regression as being the significance of the managerial ownership variables. Our results indicate that although managerial ownership levels are determined by corporate value, corporate value itself is determined in part by managerial ownership. This finding is at odds with Cho (1998) and Himmelberg et al. (1999) but consistent with the classical view of Jensen and Meckling (1976) and empirical work by Morck et al. (1988) and McConnell and Servaes (1990). An interesting result is that blockholder ownership is shown to negatively impact Tobin’s Q. This result is consistent with Faccio and Lasfer (1999, 2000). McConnell and Servaes (1990) suggest that this could be due to a conflict of interests, which results from blockholders being forced into aligning themselves with managers so as not to jeopardize their other dealings with the firm. Alternatively, the negative coefficient may be explained by the strategic alignment hypothesis, which argues that blockholders and managers find it mutually beneficial to cooperate with each other. Finally, such findings may be consistent with the arguments of Burkart et al. 1997) in that too much block ownership will overly constrain management and reduce their ability to take value-maximising investment decisions. The investment regression coefficients presented in column three of Table 5 show a significant positive effect of corporate value on investment and a negative effect of profit volatility on investment. The finding that corporate value has a positive effect on investment is consisten t with the arguments of Cho (1998) that highly valued firms will have large investment opportunities. Also, firms with variable earnings will be reluctant to invest if future income is uncertain. Managerial ownership is found to have no impact on firm level investment. However, this may reflect optimality in that investment policy may be one way in which managers affect value, but not the only means. Ultimately we view our findings of a causal relation between ownership and firm value as being of greater significance than the lack of a relation between ownership and investment. These results are consistent with Cho (1998) but slightly stronger, in that volatility of earnings is significant in our regressions but insignificant in Cho (1998). . Conclusions Debate as to the relationship between corporate value and managerial ownership in the US is still unresolved. Studies such as Morck et al. (1988), McConnell and Servaes (1990), and Hermalin and Weisbach (1991) document a nonlinear relation between these two variables. More recent work by Cho (1998), Himmelberg et al. (1999), and Demsetz and Villalonga (2001) shows that when controlling for endogeneity, managerial ownership is determined by corporate value but not vice-versa. 658 J. R. Davies et al. Journal of Corporate Finance 11 (2005) 645–660 We argue that even accepting that corporate value and managerial ownership are endogenously related to each other, misspecification of the managerial holding–corporate value relationship may lead to spurious conclusions concerning the direction of causality. Applying a quintic structure, we present results which suggest that the correct form of this relationship is a double humped curve. This is in contrast to other studies that have assumed a cubic or quadratic specification and by construction only one hump. The second hump or local maximum is attributed to a collapse in external market discipline at or around the point where managers take overall control of their firm. At this point, which is around 50% ownership, the management is not sufficiently akin to owners but have sufficient power to disregard any form of external monitoring or discipline. This has a detrimental affect on corporate value for a short window of managerial holdings. At high levels of managerial ownership, managers are effectively majority owners of their firm leading to a convergence of interests with other outside shareholders. Utilizing the quintic specification for managerial ownership, we show that even when controlling for endogeneity, not only is corporate value a determinant of managerial ownership but managerial ownership is also a determinant of corporate value. This finding is consistent with the classical work of Jensen and Meckling (1976), as well as the early empirical work of Morck et al. (1988) and McConnell and Servaes (1990) who do not control for endogeneity in their analysis of corporate value and managerial ownership. We believe our analysis to have several important contributions to the literature on the relationship between managerial ownership and corporate value. First, our quintic specification extends previous work in this area and successfully captures the complex nonlinear relationship between corporate value and managerial ownership. Second, by analysing a completely different market which is similar in structure to the United States, we strengthen the power and insights gained from earlier comparable US studies. Third, we provide evidence that corporate value, firm level investment and managerial holdings are interdependent with each other. This has implications for the debate on the effectiveness of compensation policies involving stock options for top managers. Moreover, our findings suggest that some levels of managerial ownership may not be beneficial to outside shareholders even when these levels are high. At the very least, this paper has served to add to the debate concerning the importance of managerial ownership on corporate value by providing evidence that even controlling for endogenous effects, managerial ownership and stock compensation schemes do have a significant influence on corporate value. Our research has provided an initial step towards a more accurate characterisation of the corporate value–managerial ownership relationship. While we do not posit that our specification can be applied to every given data set, we argue that previous research may be misspecified where it has failed to fully explore alternative specifications of the managerial ownership–corporate value relationship. Future work in this area may focus on other structural forms, which more effectively reflect the interdependence of managerial ownership and corporate prospects. The nonlinear endogenous impact of blockholders on corporate value and managerial ownership would also provide interesting insights on the external discipline that is faced by firm managers and the impact this has on corporate value. J. R. Davies et al. / Journal of Corporate Finance 11 (2005) 645–660 659 Acknowledgements The authors would like to thank John Capstaff, Scott Linn, Andrew Marshall, James Wansley and seminar participants at the Financial Management Association International (2001), European Financial Management Association (2002), Dublin Economics Workshop, the University of Strathclyde and an anonymous referee for their valuable comments on earlier versions of the paper. The normal caveat applies. References Burkart, M. , Gromb, D. , Panunzi, F. , 1997. Large shareholders, monitoring, and the value of the firm. Quarterly Journal of Economics 112, 693 – 728. Cho, M. H. , 1998. Ownership structure, investment, and the corporate value: an empirical analysis. 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Role of Supervision and Leadership

Question: Discuss about theRole of Supervision and Leadership. Answer: Introduction: Intent of the Journal Article This article focuses on the relationship between employee and their managers in an organizational leadership and the way emotions associated with them affects their job satisfaction and overall mental health in a typical work environment (Mark and Smith, 2012). At first, it examines the direct effects of the managers and supervisors and their leadership behaviours which affect the expressed emotions, experienced emotions and the emotional control the employee's experience (Weiss and Cropanzo, 1996). Then it explains that the leadership behaviours of managers can lessen the impact of employee's emotional regulation in a positive way. For research, experience sampling methodology and within-person method is done to focus leadership behaviours and within-persons co-variations (Schaubroeck and Jones, 2000). Research Methods Used by the Authors According to Bono et al. (2007), participants were selected from a wide variety of professions ranging from the case manager, lab technician, nurse, human resource among many. A total of 57 employees were selected from a health organization with an average of 41 years old and mixed races including Caucasian, Asian and African-American. Three types of research were carried out: experience sampling data, survey data, and a leadership behaviour survey. The first one was made by handing a handheld computer to the participants to record their job satisfaction, momentarily stress, and experiences over the course of two weeks. The second one was a paper survey which was general in nature, where they provided stress and job satisfaction data. The third one, leadership behaviour supervisors survey was done from an organization. For leadership behaviors of supervisors', measurement was done using 20-factor MLQ or Multifactor Leadership Questionnaire as it is a commonly used measure for measuring transformational leadership validity and reliability. Responses were recorded on a scale of 5. Job satisfaction was measured using the same 5 point scale and using Brayfield-Rothe items. They were questioned next on their interaction with peers if they were at work after the signaling off the PDA. Experiences were recorded next by selecting three negative and three positive emotions. Positive ones include enthusiasm, happiness and optimism and negatives ones included irritation, anger, and anxiety. Stress was measured next by asking the participants that they were feeling stress and again noted on a scale of 5. The examiners addressed the hypotheses 1 and two by analyzing supervisor's role in experiences of an employee to find the between interaction partner and affected experiences of the employees. The next examina tion undertaken was to test the theory of transformation leadership behaviors of supervisors in relation with employee relations across interactions between co-workers and customers. Besides the given method, the examiners also hypothesized a moderating effect for same the leadership. Identify Arguments of the Article The study has been divided into different parts, and hypotheses are given for every situation. As stated by Nixon, Brukà ¢Ã¢â€š ¬Ã‚ Lee and Spector (2016), the first hypothesis tells that employees experience more positive emotions when interacting with co-workers and clients than with employers, and the reason is that employers monitor the behaviour, evaluate performance and oversee work of the employees which brings discomfort as they prefer more autonomy. Constant monitoring also brings about irritation, restraints emotional expressions and behaviour (Ryan and Deci, 2000). Since the negative interactions of the mood of employees were found to be about five times stronger than the effects of positive mood, therefore, any positive effect of a good mood is easily overshadowed by negative mood (George and Zhou, 2001). The second hypothesis tells that there is a positive correlation between managers and leaders when the transformation leadership managers affect the employees, and the positive vibe lasts throughout the whole workday (Green, 2014). Transformational leadership among managers brings about happiness, enthusiasm and prevents triggering of anger, frustration or anxiety in employees (Sy et al., 2005). As opined by Humphrey, Ashforth and Diefendorff (2015), the third hypothesis states, regulating emotions like faking positive emotions and hiding negative emotions is positively related to stress in individuals and negatively associated with individual job satisfaction. Emotional regulation is a process where employees chose to behave and show their expressions in a certain way as to conform to the environment of the workplace (Little, 2000). The article includes research from other studies which shows this phenomenon to be harmful to the employees as it means involves pretending which is not authentic. Suppressing emotions said to have the greater strain on cardiovascular, cognitive and physiological health (Beal et al., 2013). The fourth hypothesis states that, when managers and leaders engage in transformational leadership, the more focused is a positive balance between job satisfaction and emotional control than when the focus on the leadership is less (Hackman and Johnson, 2013). When transformational leadership is stronger, the link between stress and emotional regulation is very less compared to when the transformation leadership is weaker. With this leadership, the employees felt more consistent and self-congruent with own values and interests. The study presents two theories of Goal Self-concordance and self-determination theory to show that employees at workplace experience feel which leads separation of self and depersonalization (Sheldon and Elliott, 1999). It says that transformational leaders are not only empathetic, but the managers who practice the leadership style also find the greater social support of their employees (Zapf, 2002). Practical Implications of the Journal Article According to Brief and Weiss (2002), many organizational kinds of literature speak in details about the leaders and managers mood with affecting emotions and moods, but there has been little research data to back it up. In contrast, this study proposed a research study for the same. The outcome of this study was that when the employees did interact with co-workers, customers, and clients, there was a rise in a positive mood, optimism, enthusiasm, and happiness than communicating with supervisors (Bersade, 2002). The same level of increase in mood was observed when the employees reported to their supervisors who practiced transformational leadership as this leadership acts as a buffer for the employee's moods. By this study, it was also found out that, employees who regulate their emotions at work tend to have less job satisfaction even though the effects of it were short-lived (Lee and Allen, 2002). In comparison, the effects of stress were more long-lasting. There were some practica l limitations too of this study. The examiners stated that they could not examine the subgroups of employees in a service, sample studies were taken only from one organization, most of the participants were populated by females, and therefore the same cannot be held true for men (Pugh, 2001). References: Barsade, S.G., 2002. The ripple effect: Emotional contagion and its influence on group behavior.Administrative Science Quarterly,47(4), pp.644-675. Beal, D.J., Trougakos, J.P., Weiss, H.M. and Dalal, R.S., 2013. Affect spin and the emotion regulation process at work.Journal of Applied Psychology,98(4), p.593. Brief, A.P. and Weiss, H.M., 2002. Organizational behavior: Affect in the workplace.Annual review of psychology,53(1), pp.279-307. George, J.M. and Zhou, J., 2001. When openness to experience and conscientiousness are related to creative behavior: an interactional approach.Journal of applied psychology,86(3), p.513. Green III, R., 2014. Impact of Middle-Level Managers' Well-Being and Happiness on Direct Reports' Performance. Hackman, M.Z. and Johnson, C.E., 2013.Leadership: A communication perspective. Waveland Press. Humphrey, R.H., Ashforth, B.E. and Diefendorff, J.M., 2015. The bright side of emotional labor.Journal of Organizational Behavior,36(6), pp.749-769. Lee, K. and Allen, N.J., 2002. Organizational citizenship behavior and workplace deviance: the role of affect and cognitions.Journal of applied psychology,87(1), p.131. Little, B.R., 2000. Free traits and personal contexts: Expanding a social ecological model of well-being. InAmerican Psychological Association Annual Meeting., Aug, 1995, New York, NY, US; This article is based on a paper presented to the symposium on PersonEnvironment Psychology: Contemporary Models and Perspectives at the aforementioned meeting. Lawrence Erlbaum Associates Publishers. Mark, G. and Smith, A.P., 2012. Occupational stress, job characteristics, coping, and the mental health of nurses.British journal of health psychology,17(3), pp.505-521. Nixon, A.E., Brukà ¢Ã¢â€š ¬Ã‚ Lee, V. and Spector, P.E., 2016. Grin and Bear It?: Employees' Use of Surface Acting During Coà ¢Ã¢â€š ¬Ã‚ worker Conflict.Stress and Health. Pugh, S.D., 2001. Service with a smile: Emotional contagion in the service encounter.Academy of management journal,44(5), pp.1018-1027. Ryan, R.M. and Deci, E.L., 2000. Self-determination theory and the facilitation of intrinsic motivation, social development, and well-being.American psychologist,55(1), p.68. Schaubroeck, J. and Jones, J.R., 2000. Antecedents of workplace emotional labor dimensions and moderators of their effects on physical symptoms.Journal of Organizational Behavior,21(2), pp.163-183. Sheldon, K.M. and Elliot, A.J., 1999. Goal striving, need satisfaction, and longitudinal well-being: the self-concordance model.Journal of personality and social psychology,76(3), p.482. Sy, T., Ct, S. and Saavedra, R., 2005. The contagious leader: impact of the leader's mood on the mood of group members, group affective tone, and group processes.Journal of applied psychology,90(2), p.295. Weiss, H.M. and Cropanzano, R., 1996. Affective events theory: A theoretical discussion of the structure, causes and consequences of affective experiences at work. Zapf, D., 2002. Emotion work and psychological well-being: A review of the literature and some conceptual considerations.Human resource management review,12(2), pp.237-268.

Estella free essay sample

Estella, with her long brown hair and her beautiful complex was admired by many. While she was perceived as a beautiful young woman by Pip, Estella, Miss Havisham’s adopted daughter in the novel Great Expectations, was cold hearted due to Miss Havisham’s broken heart, not of her choosing. Estella, Pip’s love interest, shows her cold- heartedness both as a young girl and young woman. Estella stated â€Å"You must know that I have no heart† (Dickens ) to Pip the first time they met, revealing her cruel nature. In many cases Estella manipulates boys’ minds leaving them confused and defenseless. For example when she kisses Pip on one of their first visits, Pip’s love towards her grows. However, Estella continues to be cruel towards him by acting as if the kiss was meaningless. As she grows older Estella’s cruelty continues towards Pip, and right when Pip thought he might have had a chance, Estella was already married. We will write a custom essay sample on Estella or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Estella’s wicked ways towards Pip proves she is cold-hearted, but instead of running away he continues to be utterly in love with her. This hard heart was not inborn but instead it was developed from a young age. Estella is cruel and she was raised to be this way. Prior to her wedding, broken-hearted Miss Havisham adopted Estella. And the older Estella grew, the more she was taught to despise those of the opposite gender. For example when Pip had come over to play cards with Estella, Miss Havisham whispered into Eestellas ear to break his heart. As the same message to be cruel carried on throughout her childhood, it no longer was what she needed to act as, but it was what she had become. Estella’s appearances may fool people but her cruelness overpowers her beauty in many ways. Although she may not have chosen to be this way, her cold- hearted thoughts and comments still hurt the people that love her, especially Pip. Estella may be kind at times but overall she is cold-hearted and very cruel to most people, leaving her despised by most.

You Know Youve Been in College Too Long When...

You Know Youve Been in College Too Long When... You Know Youve Been in College Too Long When For all juniors and seniors out there Let us know what youd add to this list! You get a Christmas card from the local burger joint. Oh man. If you are getting enough takeaways to get a greetings card, you really need to learn to cook! You know the  names of more characters on Orange is the New Black  than the professors on your course. Hmmm time to switch off the TV and get some studying done? You eat cereal for lunch and dinner several times a week. Yeah, I know its hard to eat properly- but try learning how to make a few  simple dishes You regularly see the sun come up at the end of a night out. One day you might get to see the dawn at the beginning of your day, rather than at the end! Your mealtimes are midday, 4pm and 10pm. Hey, whatever as long as you eat regularly! You cant believe how young the freshmen look. Seriously, are these kids even allowed to be out on their own? Your closet is full of fancy dress and your daily uniform is your pajamas. Party, sleep, chill out. Its a full life when youre at college! Your fridge has more mold in it than food. Gross. Clean it out. Now. Your weekend starts  Thursday and ends  Monday night. Enjoy it while it lasts!

Methods of Analysis in Health Care Research Paper

Methods of Analysis in Health Care - Research Paper Example Horizontal analysis informs about how different items in the balance sheet and income statement behave in many years. This particular type of analysis reveals how the performance of the firm has been affected over the years due to environmental factors. This analysis is also important information regarding cyclical demand trends and helps understand fluctuations of demand for a firm. This particular analysis can be used in health care industry to understand reasons of increasing costs over many years. Through this analysis one can know the main areas due to which health care costs is increasing. Horizontal analysis will tell which elements have contributed to the increase in costs and which have remained fairly constant over many years or accounting periods. Vertical analysis is a form of financial analysis in which elements of financial statements are presented in a percentage form of total elements (Haber, 2004). This type of analysis presents all information of a particular account, for example liabilities, in percentage form of the total value of that particular account or element. Vertical analysis focuses on proportions and attempts to guide decision making based on how much weight or proportion a particular element in the balance sheet has. Through this analysis, firms can know easily what proportion of a particular asset, like cash or receivables, is present in the total assets of the company. This analysis can guide decision making by highlighting which areas have are important for the firm and which are not. Vertical analysis can be used in health care by managers to understand the nature of their debt. This analysis can tell managers regarding how much debt is due in the short term and how much is due later. Ratio analysis involves analyzing different aspects of a business including efficiency, leverage, debt, profitability etc (Siddiqui, 2006). This type of analysis focuses on the relationships between different factors

Interpersonal Commitment Essay Example | Topics and Well Written Essays - 1250 words

Interpersonal Commitment - Essay Example I worked in an organization a few years ago as an administrative assistant for a firm in the financial services industry. My job duties included satisfying the needs of a staff of 50 employees. Since I had the opportunity to interact with a lot of people in the firm doing work-related tasks I had the chance to observe the behavior of the employees and how they interacted with each other in formal and informal settings. In this company employees were entitled to a 15-minute break every two hours, thus socialization among employees manifested itself lively. The first social rule I learn from my colleagues was to limit social interaction outside of work and during breaks with the managerial staff. My co-workers told me from the start that nothing good could come out of it. The rule was flexible and when the bosses would joke around with us we would treat them as friends. The second week after I started with this company I was invited to a lunch at a restaurant with a group of eight colleagues including the general manager. I was told later that this treat was an initiation tradition every new employee would enjoy and the boss would always pay for the meals of everyone. People in this firm loved the hiring of new employees. The behavior of everyone at work was internally quietly monitored by the employees for social positioning considerations. It was important for an employee to know who is who and which people can be trusted. Employees that attacked the work of others during the meeting or who kept too close a relationship with a supervisor or manager is someone who could not be trusted. The general perception of such an individual was that this person is willing to step over anyone to get ahead in the corporate world at any cost. This type of person would be ridiculed by the group on a personal level. Social interaction at work is a business variable that serves an important function. A staff that gets along and respects each other professionally are a unit that adds value to a company. The human capital of a corporation is an intangible asset that differentiates the pretender from the players in the business world. The experience I had in the financial firm showed me the value of building a work envi ronment in which the people of the company think of their colleagues as people they can trust and communicate in open fashion. When the lines of communication are open work-related problems can be solved faster. I hope my next job has an organizational culture similar to the one I had the privilege to work for in the financial services institution. Â   Â  

Critical analysis of an Artifact of popular culture Essay

Critical analysis of an Artifact of popular culture - Essay Example viewed, following with examination of two artifacts taken from it as well as identification of the audience for which it was intended; finally, the function of the meanings will be explored. The movie Nightcrawler presents a story which shows that some professionals are willing to sacrifice their ethical principles in order to keep the job. This largely contradicts with the conventional perception that â€Å"practical results often count more that do self improvement, ethics, or other principles† (Brummett 195). Speaking of the context of the movie, it would not be an exaggeration to point out that it largely employs different themes from the modern world when numerous people gained access to various electronic devices and the public is no longer interested in the news unless something extremely horrible is shown. Thus, the influence of technology should be viewed through the prism that it â€Å"is never composed of merely the electronic of mechanical but is also made up of the social uses of electronic or mechanical† (Brummett 295). In other words, the context for this text might be read as reactive since the plot of the movie is conditioned by the events that have already taken place and shaped the current state of affairs. There are several artifacts that should be analyzed in great detail. On the one hand, there is the camera which is constantly shown in the hands of the main character. Indeed, for the majority of people it is not able to convey any extraordinary message; however, in the context of the movie, as well as the kind of events that it becomes associated with, the ordinary camera becomes and important artifact. The next object on which the story also focuses is the radio that the main character bought. It is quite obvious that the acquisition of the two above mentioned objects was able to mark his â€Å"career† as a nightcrawler. While the camera and the radio are not usually associated together, they become and important tools that drive the

Indo-pak relations

Indo-pak relations CHAPTER VII INDO-PAK RELATIONS Background 1.Indo-Pakistan relations are grounded in the political, geographic, cultural, and economic links between the Republic of India and the Islamic Republic of Pakistan. The two countries share much of their common geographic location, and religious demographics yet diplomatic relations between the two are prefaced by numerous military conflicts and territorial disputes. However, attempts to improve relations have been made. 2.Since independence, Pakistan owes much of its identity to its distinctness from India. It has engaged in three sizable wars with India, plus several major border skirmishes. The struggle over Kashmir has contributed to most of these conflicts. Pakistan has sponsored decades of proxy paramilitary operations undertaken in the name of freedom fighting designed to right or take revenge for cumulative wrongs. It has developed amd deployed nuclear weapons whose sole strategic purpose relates to India. And it has used its relations with other countries, particularly Afghanistan and China to promote its anti India interests. Recently also its perceived participation in the US led war on terror has been cunningly exploited to continue the proxy war against India with perpetual immunity from worldwide criticism.  Ã‚  Ã‚  Ã‚   3.Most of South Asia came under direct control of Great Britain in the late 18th century. The British rule over the Indian subcontinent lasted for almost 150 years. 95% of the people living in South Asia practiced either Hinduism or Islam. The Muslim League, headed by Jinnah, proposed the Two Nation Theory in the early 20th century. According to the theory, Muslims and others shared little in common, and British India should be divided into two separate countries, one for the Muslims and the other for the Hindu majority, which he feared would suppress the Muslim minority. The campaign gained momentum in early 1940s and by the end of World War II, British Indias partition was inevitable. The Partition of India in 1947 created two large countries independent from Britain: Pakistan as two wings in the East and West separated by India in the middle. After Independence, India and Pakistan had established diplomatic relations. Subsequent years were marked by bitter periodic conflict, and t he nations went to war four times. The war in 1971 ended in defeat and another partition of Pakistan. The eastern wing split off as a new country named Bangladesh, while the western wing continued as Pakistan. Stumbling Blocks 4.The Debris of partition of India in 1947 has clouded Indias relations with Pakistan. Pakistans tendency to assume the role of guardianship of Indian Muslims is one of the major irritants between India and Pakistan. Another matter which became source of irritant between two countries was the distribution of river waters. The divergent perception of both the countries on Indian Ocean as a zone of peace was yet another irritant including the sir creek issue. Pakistan threat perception, inspite of assurances by India, coupled with party syndrome gave shape to a proposal for Nuclear Weapon free zone in South-Asia (N.W.F.Z.S.A.); for it is believed that internal security will give the external powers an opportunity and justification to futher enhance their presence and prestige in the Indian Ocean region. So this perception of Pakistan and India on the Indian Ocean as a zone of peace led to differences in their strategic perception. 5.Another major issue which emerged between the two countries was the question of political status of the three princely states Junagarh, Hyderabad and Kashmir. But the most important issue which has marred the relations between the two countries has indeed been Kashmir. The dispute over Siachin glacier is an offshoot of the same problem. 6.Alleged interference in each others internal affairs is an irritant in Indo-Pak relations which has raised its head very seriously in the recent years. India considers Pakistan responsible for fomenting terrorism in Punjab and Kashmir. 7.Pakistan has always viewed Afghanistan through the prism of antagonistic relationship with India, attempting to use Afghanistan as its defence in depth and cultivating its Mujahedeen as paramilitary reservists against possible Indian threats. Subsequent to the fall of Taliban in Afghanistan, Indian humanitarian aid and development activity in the war ravaged country appeared to Pakistan as a threat to its support in Afghanistan and that inimical interests will have free reign in the country. Pakistan has viewed this activity with dismay, its fear of encirclement compounded by Indias establishment of a new airbase at Farkhor in Tajikistan. Current Challenges 8.A year after the Mumbai attack, two questions have persisted: was the ISI or any other state element of Pakistan an accomplice in the attacks? If ISI which had nurtured LeT to wage a proxy war against India, has cut itself from the group as claimed and was not involved in the attack, what stops Pakistan from effectively cracking on it? 9.In weeks after the attacks, the Pakistan government, under immense international pressure and scrutiny, took several steps. A raid on Lashkar camp at Muzaffarabad led to the arrest of Commander Zuikur Rehman Lakhvi. This is possibly also where Abdul Wajid, whose alias has been shown as Zarar Shah, was picked up. Both are alleged master minds of the attack. Next it placed Hafiz Saeed, LeT founder and leader of its front organization, Jammat ud Dawa (JuD), under house arrest. 10.Some other corners of establishment may still hold the view that the LeT can be viewed as a strategic asset. The Pakistani governments reluctance to go all the way against LeT is too obvious. After six months of house arrest, Hafiz Saeed is a free man, and the government says it cannot act against him unless New Delhi provides concrete evidence linking him to Mumbai attacks. All other JuD activists have been released. The organization has not yet been banned and now operates under the name of Fallah-i- Insaniyat and was noticed in relief operations among the internally displaced in the Swat valley during the military operations there. 11.As the arrest of David Headley and Tahawwur Hussain Rana in the US has shown, the LeT also retains operational capabilities. The two men are said to have been in communication with the LeT, and though they were arrested for an alleged terror plot against the Danish newspaper, they were also said to be planning attacks on National Defence College at New Delhi. Latest probes in Mumbai have revealed their definite links with the Mumbai terror attacks and many such incidents across India in the past. Further arrest of a Pakistan army Major for his links with Headley and Rana are bound to raise questions on LeTs continuing links with the military as an institution, but with the sections within it, especially because the Major retired only two years ago. 12.Home Minister Chidamarams words point us in the direction of just why these issues need to be taken seriously: another major terrorist attack on India could have consequences that would destabilise both the countries and could conceivably precipitate a regional crisis. In both Islamabad and New Delhi Mr. Chidambarams speech was interpreted as warning that India would respond to future mass casualty attack by targeting jihadist bases and logistical facilities in Pakistan. That, in turn could snowball into a conflict that would bring misery to all the people of South Asia. 13.It is now accepted within the Pakistan Military that Al Qaeda, Taliban and their allies among Punjabi jihadis operate as a syndicate. But while they have included the Jaish-e-Mohammed, along with Lashkar-e-Jhangvi and the Sipah-e-Sahaba, in the syndicate, the LeT is still not considered part of it. 14.The threat to Indias security from Islamic fundamentalism and globalization of terror is immense. It is feared in some quarters that Pakistan is sending fundamentalist groups to Bangladesh as well. The Dhaka based extremist Islamic group, Harkatul-Jehad- Al-Islam (HJAI), is believed to be financed by Osama Bin Laden. The evidence suggests that ISI and Taliban are involved with Harkatul operations in Bangladesh. 15.On the other hand Pakistans Foreign Minister Shah Mehmood Qureshi  Ã‚   says Pakistan is compiling hard evidence of Indias involvement in terrorist attacks on Pakistans public and its armed forces 16.The Indian External affairs minister Mr SM Krishna assured of the fact that India has clean hands with respect to Baluchistan and Afghanistan. He also mentioned that Islamabads suspicion s of Indias ulterior motives in Afghanistan were unfounded. The only motive is to restore peace and stability in the war-torn country 17.During the period of excessive tension, India and Pakistan have growled at each other while meaningfully pointing towards their respective nuclear arsenal. Most recently following the Mumbai massacre, Pakistani troops were moved out of NWFP towards the eastern border. Baitullah Mehsuds offer to jointly fight India was welcomed by the Pakistani army. 18.India should derive no satisfaction from Pakistans predicament. Although religious extremists see ordinary Muslims as Munafiqs (hypocrites) and therefore free to be blown up in markets and mosques they hate Hindus even more. In their calculus, hurting India would buy even more tickets for heaven than hurting Pakistan. They dream about ripping apart both societies or starting a war preferably nuclear between Pakistan and India. 19.A common threat needs a common defence. But this is difficult unless Pakistan India conflict is reduced in intensity. In fact the extremist groups that threaten both countries today are an unintended consequence of Pakistans frustration at Indias obduracy in Kashmir.

Multilateral Responses to E-Commerce :: essays research papers

The Issues to contents list The advent of the new economy has already produced a sizable body of literature. This paper does not attempt to discuss all the issues involved in the new economy, but aims to extract the implications for the international regulatory framework and to provide guidelines for necessary changes. It will thereby focus on the establishment of standards, on policy co-ordination and on taxation. The new economy is sometimes seen as the herald for a truly borderless world. However, since the internet requires substantial prerequisites concerning technical infrastructure and human capital, some worry that the developing countries will be left behind. The paper addresses this fear of a growing "technological apartheid" between the industrialized and the developing countries and looks at policies to overcome the digital divide. The structure of the paper is as follows: The paper first clarifies the various catchwords of the new economy, examines the rapid growth of e–commerce and looks at the digital divide between countries. It then discusses the necessary modifications for the multilateral framework concerning the establishment of standards, the need as well as the scope for policy coordination, taxation and the overall treatment of e-commerce. Finally, the paper looks at strategies to tackle the digital gap between countries. 1.1 Catchwords and Concepts for the New Economyto contents list Various catchwords have been coined to capture the essence of the economy- wide consequences resulting from an increased use of processed digital information and from the application of the internet for a wide array of services (software programming, webpage maintenance, ticket and hotel reservations, on-line information and support, ordering facilities, publishing, indexing or abstracting etc.) as well as transactions (delivering music, movies, documents, literature or software in digital form).(1) The following catchwords aim at different characteristics of this phenomenon but are frequently used as synonyms: "digital economy", "information economy", "knowledge-based economy", "weightless economy", "virtual economy", "internet economy", "electronic commerce", "e-commerce", "e-conomy", or maybe more capacious "new economy". Some authors have tried to assign distinguishing concepts to this variety. For example, Kling and Lamb (2000) suggest to use the term "information economy" to include all informational goods and services like publishing, research, legal and insurance services, entertaining, and teaching in all of its forms, and the term "digital economy" to address (only) the goods and services whose development, production, sale, or provision is critically dependent upon digital technologies. Furthermore, the term "new economy" is associated for them to possible consequences of the information economy and the digital economy, namely high growth, low inflation, and low unemployment.

Mice and Men Belonging Extract Essay

The idea of belonging in the novel ‘Of Mice and Men’ by John Steinbeck, relates to the theory of ‘attachment’ in psychology. For most human beings, having a central place they can return to, ideally with loved ones or supportive friends present also, contributes towards their feelings of calm, relaxation and security. Such a place would ideally be one which provides safety,shelter,food, warmth, affection and earning capacity. Not all those elements are always present – sometimes it is enough to live in an RV or trailer park, as long as family or the other things are present. Some nomadic people are happy to pack up and take most things with them – as long as they have support they are happy. However, George and Lennie only have each other and sometimes that’s even a liability – whatever ‘attachments’ they had in youth are gone and that leaves them adrift in a hostile, unpredictable world. That is why they yearn for ‘centredness’ or the security of a place of their own. The answer to this question lies in the character named Candy in â€Å"Of Mice and Men. An old, disabled ranch hand who is unable to stop the killing of his old friend and dog, Candy realizes that he soon will outlive his usefulness and, perhaps, go the way of his old dog. But, when he hears of Lennie and George’s dream of owning a ranch and a house, he is sweetly hopeful, offering his savings to the men. For, with part ownership, he would not fear isolation and poverty, or abandonment. From owning land, too, there is a sense of pride. The itinerant men of the Great Depression belong nowhere, they had nothing and lived in fear of losing a job, for they could not survive without any money. There is a constant stress put on these men who must few the next man as a threat to his job or security. But, if one has a place of his own, he must answer to no one else. In the early part of the novel, George explains the position of these men in the world: ‘Guys like us, that work on ranches, are the loneliest guys in the world. They got no family. They don’t belong no place, They come to a ranch an’ work up a stake and then they go into town and blow their stake, and the first thing you know they’re pounding their tail so some other ranch. They ain’t got nothing to look ahead to. ‘ I would think that one of the most powerful lessons of Steinbeck’s work is the idea that individuals have to possess a sense of belonging. Part of this is definitely physical. When individuals have to wander from life to life, different form of physicality to different form of physicality, their ability to better understand themselves and others becomes impacted. There has to be some notion of grounding at some point and level where individuals can feel comfortable enough to call it â€Å"home† or know that this is where I belong. Despite lacking this, Lenny and George do a fairly good job of providing the belonging to one another. Certainly, Lenny sees George as essential to his conception of belonging. Yet, George does envision Lenny as a part of his own conception of belonging, a vision that appears in George’s dreams and whose faintest touch can be felt in the relationship they both share.

My Career Essays

My Career Essays My Career Essay My Career Essay Currently, this is the path open to me. I Am currently a Care Assistant for which I needed no formal qualifications to be, however, an NVQ level 2 or the equivalent of would mean I am entitled to a higher rate of pay.The next step is the Senior Carer, In order to apply you must have, or be in the process of studying for, your NVQ level 3 or equivalent thereof. The Staff Handbook and Greensleeves website has this information. After the Senior Carer, the company has at times, employed a Senior Supervisor. The qualifications needed for this are the same as the Senior Carer but is for those people who are trying to make a career in the care industry and are given a more office bask role than a Senior would have.It is not always a position that is in use, the Home manager has the option to recruit someone for this role. They would be expected to take an active part in the training of staff and help out with the managing of the home on a much higher level than the Seniors do. * At the moment, the next step is to get your NVQ Level 5 (or equivalent) and apply for the position of * Deputy Manager, at the moment there is one deputy but soon, with the expansion of our home there will be a second Deputy to assist the manager.With the expansion comes the possibility that we will become a nursing home and should that arise, the home manager has advised me that the Company may consider putting members of staff through Nursing College to get their RGN status and their PIN. Should this happen then that would be an option and should I go that way it may open up another whole avenue of potential but for now, I include only for the purpose of a complete picture. * * Finally the last spot I have on my path is the Registered Home Manager.This position is generally given to those who have a a Level 5 (at least) and several years experience within the Care Industry. I hope one day to reach this level but it’s a long way off and I may change my career plans later on to maybe branch off to do training or Nursing so I included it on my path but the future is always in motion and I have not looked into this too much but the Home Manager is more than happy to discuss the requirements when and if I ask him.