The Islamic Revolution an Example of the Topic History Essays by

The Islamic Revolution The 1978 political turbulence that put an end to the millennium-old monarchy in Iran has become known as the "Iranian Revolution." Officially, it is called the "Islamic Revolution," a notion emphasized by the new sovereigns and their loyal supporters in order to justify the rule of the Shiia clergymen and their Islamic principles. (Bernard Lewis, 2004). Need essay sample on "The Islamic Revolution" topic? We will write a custom essay sample specifically for you Proceed Our Customers Often Tell Us: Who wants to write paper for me? Professional writers recommend: Academic Papers For Sale Cheap Writing Services Write My Essay Online Cheap Custom Writing Service Is It Illegal To Write Papers For Money The "Revolution" replaced the existing political order with a theocracy, a development incongruent with trends prevalent elsewhere in contemporary history wherever there has been a revolution. The incongruency is apparent not merely because a revolution had taken place, but because it had occurred under the leadership of a traditionalist Moslem clergy, who were striving to materialize their long term objective: the establishment of a theocracy. In fact, it is surprising to note that until the early 1970s Iran was undergoing a transition toward a more secular society, with the role of religion diminishing in regard to political affairs. The outspoken revolutionary and reformist opposition forces were mainly secular in their orientation. Their domain of influence was expanding, making them a likely candidate to replace the existing regime. Then, in the 1970s, a renewed Shiia revitalization movement began. This movement gained momentum and penetrated almost every segment of the population. It conquered certain social territories that had been the stronghold of the former secular political groups. Simultaneously, it strengthened and expanded its influence among the lower classes and rural people. This movement even found access to those members of the middle class who were better educated than most other Iranians. It was a great success for the proponents of Islamic rule, for now they had easy access to the group with the most significant political potential in the country--the urban middle class. This stratum included most of Iran's politically hotheaded college students, younger white-collar employees, and young officers in the administration of Iran's growing industrial system. These groups included most of Iran's long-time opponents of the regime, who were thoroughly experienced in radical activities under repressive rule. They were people with the knowledge and skills of political persuasion. It was not, therefore, the size of this stratum that was significant, but its political potential. It became increasingly apparent that a redirection of the national struggle was in the process and that events were moving in favor of Islamic activists. Building upon this movement, different Moslem groups were encouraged to expand their activities, both in political and nonpolitical affairs. Some groups attempted to appeal to all classes with their political objectives and demands for a national uprising against the regime. As the struggle proceeded, during 1977-78, the Shiia groups under Ayatollah Khomeini's leadership managed to unify the major opposition forces over the objective of pushing the Shah out of office. This objective brought nearly all the opposition groups under a single leadership. As a result, the leading clergy who commanded the alliance of the insurgent masses rose to the position of leader of the opposition groups, speaking with a national voice. This promotion was not only political; simultaneously, it imposed the clergy's objectives and preferences upon the people. Such activities at the leadership level were complemented by the entrance into the movement of millions of people who had very little previous political experience. A power was created that could easily crush any resistance, could silence any other alternative suggestions, and was obedient to the clergymen who had established themselves as the leaders of the uprising. The contribution and power of the small, but highly influential, new middle class was becoming insignificant compared to that of the urban lower class and the rural people. These earlier activists found themselves powerless to exert any determining influence upon the new course of social change. The energies that now moved the masses were beyond the control or command of the new middle class. The slogans, for example, during the early wave of the uprising in the winter of 1978, were "Freedom and Independence." By the end of the year, they had become "Freedom, Independence, and the Islamic Republic." The former reflects the earlier phase when secularists were still in the lead, and the latter reflects the time when the clergy leaders and their supporters had become a dominant force. The original political demands, for which the secularists had fought for years and to which they had tried to educate the populace, were fading away in the uproar of escalating revolution. Those demands were overstepped by an Islamic fundamentalist revitalization movement that had attracted millions of newcomers to the realm of revolutionary politics. Ideologically, the secular group found themselves to be like a gust of wind lost in a hurricane. They had helped the genie out of the bottle only to find themselves caught in his vise-like grip. The movement was entering a new phase. (Nikki R. Keddie, 2003). In this phase, the demands of nearly all political forces that did not belong to the clergy-led groups were either removed from the agenda or pushed down on the list. Very little opportunity remained for secular demands, even if they were made by Moslem intellectuals. The revolution of the secular groups and the consequences of the earlier activists' efforts were swallowed up by the Shiia revitalization movement. The immense national power was now invested in a clerical leadership. Millions of devoted Shiia Iranians listened eagerly to these leaders as both political commanders and religious authorities. Millions of others obeyed them, at least as a political leadership. In this way, it was possible for the Shiia activists to elevate Ayatollah Khomeini to a leading position as a personification of the "People's Revolution," as both its spokesman and commander. Thus, a theocracy was born. (Nikki R. Keddie, 2003). The Iranian experience provides valuable data and certain insights into some key theoretical issues in sociology. It could contribute to the sociology of modernization, the sociology of revolutions, and the social study of culture and religion. Since the Iranian Revolution is only a single case and a case that seems to be historically specific, we may be prevented from over generalizing based on Iranian findings. However, the event raises certain issues and addresses certain questions that could shed some light on the shortcomings of existing theories. One such shortcoming is in the area of theories of modernization. Theoretical works on modernization were begun by pioneering sociologists and were later pursued by those in communications. As it had begun with the works of earlier theorists such as Daniel Lerner, modernization was viewed as a process that had great social-psychological consequences. What these attempted to do was trace the consequences for the material modernization of a society in terms of the internal (psychological) changes that take place within the inpidual. They further expanded these concerns in order to learn more about what facilitates or hinders the process of modernization of inpiduals. The Iranian case may suggest a need to look at the facilitators and impedances that are of a class and political nature. The breakdown of the inpidual's internal constraints against modernization, which the existing theorists tend to focus on, is not sufficient to understand both the modernization and counter modernization developments. As the Iranian case clearly shows, modernization is not viewed by the people who are subject to it as a value-free experience. It is understood as favoring certain groups more than others, and therefore becomes a political or even a class-domination process in the eyes of the people. It is this sort of cognitive mapping of modernization that is the key to understanding the cultural and religious revitalization movements that were active in Iran, and may potentially develop in many other Middle Eastern countries. (Christin Marschall, 2003). Similar arguments may be made about the theories of revolution. There exists a tendency for certain social theorists to try to reduce revolutionary events to causal models. Moreover, they tend to focus on monocausal explanations. The fact, as the Iranian Revolution seems to suggest, is that it might be futile to look for a single cause. Rather, one may need to favor a holistic approach. Again, it must be asserted that while none of the causal explanations can probably be rejected, even the monocausal ones, they do seem to only show a glimpse of revolutionary events. This theoretical issue could be raised about the potential sources of change generated by culture. If culture is viewed as a homogeneous medium, as in most cases it is, then it may closely resemble a static entity, a passive one that could not be the source of major social changes. What makes the Iranian culture and Shiiaism a potential ground for the generation of political forces is the dualism that is embedded in it. It is not just a series of justifications, historically formed by the interests of the ruling classes; nor is its content all anti-ruling class sentiments. It is both. The dynamism that could make culture and religion two important sources of change arises from this very fact of dualism. In the case of the Revolution, it was the antiruling class elements of Iranian culture and Shiia Islam that became the seedbed of radicalism that represented itself as revitalization movements. Such movements may well parallel other drives, such as those caused by material and group interests. For certain strata of people, the impetus could quite reasonably be cultural or religious movements, and nothing more. (Bernard Lewis, 2004). Surely, there were and still are many Iranians, acting and sounding as radical as any other "anti-imperialist" and "anti-ruling class" activists, who still sincerely believe that they revolted to vitalize their religion, that Shiia revitalization is indeed a revolutionary act, that the Revolution was definitely for Islam, and that they are ready to sacrifice their lives for that cause. For this category of people, ideologies, motives, supportive sentiments for revolutionary actions, and the ideals for which they have striven all have originated from their religion and culture. (Bernard Lewis, 2004). References: Bernard Lewis (2004). From Babel to Dragomans: Interpreting the Middle East; Oxford University Press Christin Marschall (2003). Iran's Persian Gulf Policy: From Khomeini to Khatami; Routledge Curzon Nikki R. Keddie (2003). Modern Iran: Roots and Results of Revolution; Yale University Press

The Internet vs. The Web

The Internet vs. The Web The Internet vs. The Web The Internet vs. The Web By Maeve Maddox Although the hoi polloi (i.e., the masses) use the words Web and Internet interchangeably, there is a difference worth learning. The Internet existed before the Web. The first meaning of internet as it relates to computing was â€Å"a computer network consisting of or connecting a number of smaller networks, such as two or more local area networks connected by a shared communications protocol.† The U.S. Defense Department had such a network called ARPANET–an acronym derived from Advanced Research Projects Agency Network. From this DoD â€Å"internet† evolved â€Å"the Internet,† a global computer network that provides a variety of communication facilities–only one of which is the Web. ARPANET was developed in the 1960s to enable researchers to use computers from remote locations. In 1982, the Internet Protocol Suite (IPS) was standardized and the Internet was officially defined as a global interconnected network. Although global, the new Internet was still mainly the reserve of people with the specialized skills needed to access it. All that changed in the early 1990s when Tim Berners-Lee, a graduate of Oxford University, created a system of interlinked documents (e.g., web pages) that could be easily accessed by anyone using a browser. He called it the World Wide Web. The Web, therefore, is not the Internet. The Web is one of many services that run on top of the Internet infrastructure. Other such services include email, FTP, and VOIP (e.g., Skype). Here’s a typical misuse of the term Internet: Are you unfamiliar with the Internet? If you want to know how to search the Internet, then you have to find the right search engine, type in your search as accurately as possible, and browse through the results to find the one you want. –WikiHow I’m guessing that the Defense Department may know how to search the Internet, but when ordinary mortals go online to find cute kitten photos, they use search engines to search the Web. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Misused Words category, check our popular posts, or choose a related post below:Writing a Reference Letter (With Examples)Hyper and HypoPredicate Complements

What's The Incentive Case Study Example | Topics and Well Written Essays - 2000 words

What's The Incentive - Case Study Example The terms of employees’ payment within each organization have to be based on specific criteria: emphasis needs to be given on equality among employees so that conflicts in the internal organizational environment are avoided (Laffont and Tirole 1993). In the case of pay and reward pay package of engineers a significant dilemma appears: is this package fair, taking into consideration the changes developed in the organization since its introduction? The answer should be negative. The specific view can be justified through the following argument: the visits of engineers to the depot have been a key part of their position, meaning that their payment would be significantly lower if they were not obliged to visit the depot. In other words, the terms of engineers’ pay and reward have been arranged in this way mostly because engineers had to visit the depot many times each time, a fact that would reduce their free time for making calls to sites. It is for this reason also, that the term for a visit of at least 4 sites and the provision of reward for visiting extra sites was set in the agreement between the employer and the engineers’ union. The above agreement would not be valid today since the working conditions of engineers have been significantly altered so that a key feature of their daily tasks, the need for visiting the depot, has been eliminated. Being considered as valid, the above agreement can lead, in the short or the long term, to severe turbulences within the organization, at the level that other employees have not been favoured from similar advances in their daily tasks. From another point of view, the current pay and reward package of employees leads to another concern: the employer had suggested such package on the terms that the daily calls of engineers to sites could not be over a particular number. This means that having to visit the depot on a daily basis, engineers could not visit many sites each day; for this reason, 4 sites have

Hooke's Law Lab Report Example | Topics and Well Written Essays - 250 words

Hooke's Law - Lab Report Example The tables, Table 1a,1b,1c,1d gave way for constructing a table for change in length as result of applied force for the 5 rubber bands. The tables 2A, 2b, 2c, 2d show that as the forces are increased so does the length of stretch increase. 12N force when applied causes more stretch than the rest of the force, for all the trials. The averages for the change in length caused by the forces were also calculated as shown in Table 3: Averages. These averages in length change were used to build Plotting table, Table 4, as a basis for producing a graph for the relationship. Graph 1 show that all the five rubbers did not exhibit a straight line when the change in length was plotted against force. Graph 2 shows that the relationship between average change in lengths and force does not produce a straight line. This is indicative of presence of outliers in the graph as shown by the dark straight line. The results indicate that despite increased changed in length as force is increased, rubber does not fully respect Hooke’s Law. The presence of outliers in graph indicates that rubber band does not respect the concept of Hooke’s law, â€Å"a graph of force against extension produces a straight line that passes through the origin† (Wilson & Hall, 2009). The inconsistency witnessed results from the nature of rubber’s elasticity, which makes it stress dependent and easily affected by temperature. Intuitively, any slight change in temperature might have interfered with the measurement. This implies that rubber band does not follow Hooke’s law because of the inconsistency in change in

Consumer Behaviour in the Consumer Electronics Market Essay

Consumer Behaviour in the Consumer Electronics Market - Essay Example The company has recently released the Walkman MP3 player Z series. This particular product is able to combine several elements of the past MP3 players into a new alternative for music while providing the next step to listening to music that many can enjoy within the market. The concept of ILaz is one which developed from the main philosophy of providing new and innovative products based on entertainment needs. It was recently established, specifically with the basis of using the new ideologies of engineers to enhance the products and to create unique electronic features which could be introduced on a global basis. The founding ideology is to create innovative products and technical features that enhance entertainment. The mission is to offer high end and newer electronics to the community which will establish entertainment and offer a different use with better alternatives for leisure activities. The vision is to offer several types of electronic products with a strong reputation for quality and enjoyment. The MP3 player which is provided uses some of the technologies which have been produced by other engineers, such as Sony, and enhances these with newer features that provide more alternatives for listening. The meaning of entertainment devices is inclusive of music, video, photography and other digital products that are specific to the entertainment realm. By having this approach, there is the ability to specialize in high – end products that need different resolutions and alternatives for better listening. The product which is offered by Ilaz is the Z-Series Walkman MP3 player. This is an upgrade to the MP3 players offered by other companies, specifically because of the approach to upgrade technology for better use. The main approach is to offer music in the digital, handheld device that has a clear and distinct sound and which has higher resolution with videos for those that are looking at entertainment through the player. The technology used for bet ter sounds and resolution of video includes digital sound enhancement, noise cancelling, clear stereo and clear bass technologies. The ideology is combined with creating an experience with sound, video and other applications. The system has also incorporated content transfer software, which offers music, video and photo that can all be added into the product. There is the ability to have more transfers, automatic options for downloading as well as updates and the support of digital rights management. There is also a management system incorporated, which consists of sorting files, plugging and transferring files and moving from one platform to another, such as from the PC to iTunes. The product has also incorporated options of moving from different players for better playing. The MP3 system incorporates Bluetooth technology and some of the latest looks and feels of the new device. The product is based on the latest ILaz Z – Series walkman; however, it has enhanced features to offer even more compatibility for both music and video (Sony, 2011). The concepts which have been added to the MP3 player, as well as the popularity of the product can be looked into in terms of the UK market. In general, the UK market has increased in the number that is looking at the different digital players, as seen in graph 1. Graph 1: Increase in UK Electronics Market (National Statistics, 2007). This is combined with the alterations with MP3 players which include 26% of individuals age 15 and over owning the player. It is also

Relationship between Accounting Information and Market Risk

Relationship between Accounting Information and Market Risk Financial theory describes risk assessment as one of the most important part in an investment decision making process.  However, for a risk to be known, it is important for investors to interpret information flowing on the market. This study aims to examine the association between accounting information and the market risk over time. It also evaluates how far the beta value and accounting variables can be useful for investors in Mauritius. Beta estimates are calculated using Capital asset pricing model and accounting risk variables are derived from theoretical foundations and prior empirical findings. The relationship between the financial ratios and the level of systematic risk is obtained by regressing the variation in the beta against changes in the accounting variable. The empirical evidence shows that beta is valid on the Stock Exchange of Mauritius (SEM). However, the power of beta is relatively low in capturing the systematic risk. This finding is in line with Campbell (1995) who obtained similar observation for emerging equity market and with Bundoo (2000) who noted same result. Finally the result shows that a strong association exist between accounting variables and market risk and it also observed that this relationship is consistent over time. Accounting variables like growth rate, debt ratio, asset size, liquidity, profit margin and accounting beta are able to capture market risk where beta generally provides a high explanatory power of systematic risk. The findings contradict the some of the association between the market risk measures and accounting risk measure obtained Beaver et al (1979).   1  Introduction The growth experienced in the Stock Exchange of Mauritius (SEM) during the years 1989 to 2007 was with no precedence. Stock prices of quoted companies on the SEM boomed, causing a high influx of capital which caused the market to rise to its peak with a net market capitalisation of MUR 173 billion in the end of the financial year 2007. Local investors who had investments in fixed deposits from local commercial banks shifted some of their investments to the SEM, with view of higher return. But Stock prices started to fall soon after the end of the month of February 2008 and within a year the SEMDEX reached a position which was a low as the values experienced in September 2006. While this fall was largely attributed to the morose international situation, as a result of the international financial crisis; there is also the question whether the SEM effectively capture risk which is inherent by companies quoted and how far investors in Mauritius used the publish financial information to evaluate and predict the level of risk in the operating environment. Financial markets serve a key purpose in an economy by allocating productive resources among various areas so as to enable an efficient resource allocation, across different firms, investors assess the security and market expected prospects and risks and form a portfolio of investments based on their assessment. Security analysis usually involves an evaluation of the financial position and performance obtained from the financial statements published periodically by companies. In an efficient financial market the share prices is expected change to the fair value of the firm as new information flows into the market. Financial theory describes risk assessment as one of the most important part in an investment decision making process. The return of a stock is often considered to be narrowly related with the risk which the investor is taking while holding that stock. This makes the generally accepted principle that the higher is the risk in investing in an asset, the higher should be the asset’s expected return. This implies that there is a positive correlation between risk and expected return in holding a stock. 1.1  Problem Statement The analysis of stocks return is intricately linked with the analysis of risk. Empirical studies carried by Graham et al (2001) has shown that the Capital Asset Pricing Model (CAPM), (an asset pricing tool which uses risk as a basis to calculate assets return) is used, by more than seventy five percent of the chief financial officers, as primary tools in the portfolio selection process. However some authors in the capital markets literature (Campbell (1995) and Chan et al (1991)) have argued that in the case of emerging stock exchanges the CAPM is inapplicable and beta is not significant. However, for a risk to be known, it is important for investors to interpret information flowing to the market. Fama (1963) described three generic forms of market efficiency based on the market reaction to inflow of information. Markets which react to all past information are said to be in its weak form, those markets which react to all past and publicly available information are referred to as semi-strong efficient markets and those which react to all past, public and private information are considered as strongly efficient markets. A study made by Bundoo (2008) showed that Stock Exchange of Mauritius (SEM) has the characteristics of a market in its weak form. This implies that the SEM effectively responds to past information. Yet there is absence of empirical research which evaluates whether market return and risk are effectively pictured through accounting ratios. 1.2  Aims and objectives This paper aims at analysing the share prices in the SEM and key accounting ratios to evaluate the financial position, performance of a sample of companies quoted across various economic sectors of the SEM with the view of answering the above question. It also seeks to test whether investors can trust beta in their decision-making process on the SEM. The paper also aims at: understanding the relationship between the financial ratios, market return and risk; estimating the level of systematic for different business segment where financial market information is not available; and to guide investment in measuring the systematic in private and non listed companies in Mauritius. 1.3  Organisation of this paper The paper is organised as follows: Chapter 2 provides a summary of literatures concerning risk measures, accounting tools and market-based models to measure the performance and risk; It also surveys the empirical researches on the SEM  and similar markets; Chapter 3 develops the models which are to be used in the analysis of the relationship between systematic risk and accounting ratios; It also outline the methodology and sample data which is used in the analysis; Chapter 4 presents the key findings from the study and Chapter 5 concludes the paper. 2  Literature review Risk and return of a firm are the two most important factors in the development of financial strategy for both individual investors and firms. Risk is inherently multi-dimensional and as such it has multiple characteristics which may be classified as financial and non financial. These characteristics make up the risk profile of a security, which is generally observed as changing with time and at different levels of a market. These changes in turn, impact on the return of the investors either by creating value or destroying the initial value before the investment.   Modern financial theories have proposed different models which are founded on sound theoretical analysis which can be used to estimate the different degree of riskiness of a particular security. These risk measures are then used in valuation models to estimate the return which an investor, with a defined risk attitude, can expect from an investment. As described in chapter 1, above, the applicability of such financial theories remain untested in many emerging markets. This chapter reviews the financial models which are commonly used by practitioners for estimating of the risk of stocks and stock market and their corresponding returns. It also summarises the main financial ratios which are used to analyse the financial risk, financial performance and the value of the firm. Finally a summary of the accounting tools and market-based models to measure return is also presented. 2.1  Risk It has always been difficult for practitioners to reach a consensus on the definition of risk. Moles (2004), nevertheless, provides a simple definition which is taken in this paper as basis for risk measurement. He defines risk as â€Å"the chance (or probability) of a deviation from an anticipated outcome†. With this definition it is implied that risk is made up of at least these 3 elements: 1.  probability: which means that risk can be quantified and expressed as a parameter, number of value; 2.  deviation from anticipated outcome: which is extent to which the actual result may deviate from that which is expected; 3.  anticipated outcome: this means that it is the consequence of the actual results deviating from the expected results that leads to risk. Newbold et al (2003) states that probability can be measured using past data by considering the proportion of times that an event occurred. For the case of an investor the anticipated event would be the financial return which he or she can expect by holding an asset. The measurement of the deviation from the anticipated return is normally done using the standard deviation of returns generated by an asset with regard to the expected return. 2.1.1  Systematic and unsystematic risks The deviation from the anticipated return is caused by is explained by 2 levels of risk: systematic risk and unsystematic risk.  The sum of these two main categories of risk is the total risk to which an investor is exposed to. Systematic risk is associated with overall movements in the general market or economy and therefore is often referred to as the market risk. The market risk is the component of the total risk that cannot be eliminated through portfolio diversification. Unsystematic risk which is a component of the portfolio risk that can be eliminated by increasing the portfolio size, the reason being that risks that are specific to an individual security such as business or financial risk can be eliminated by constructing a well-diversified portfolio. 2.2  The Capital asset pricing model Markowitz (1952) constructed a mean-variance model to observe the trade-off between risks and return. The model mathematically proved that return can be maximised, while minimising the overall risk, by holding a diversified portfolio. The idea was based on the concept that securities that are inversely correlated or having coefficients which are less than one. Such negative or low correlation coefficient results in a low covariance between securities in the portfolio. The low covariance implies a comparatively low level risk. However, Sing et al, (2001) observed that the model ignore the general risk-averse attitude of most investors. The Capital Asset Pricing Model (CAPM), developed by Sharpe (1964), is based on the framework set out by Markowitz (1952) which considers that investors invest their money in a portfolio of assets. The CAPM states that the return which a risk averse can expect from investing in a risky asset is a risk premium over the risk free rate. The formula 1 below states the formula which can be used to calculate the expected return. E(Ri)  = Rf +  i  (  E(Rm)   Rf  )  (2.1) where: E(Ri)  Ã‚  expected rate return of stock I; i  Ã‚  relative risk of share I; E(Rm)  Ã‚  expected rate return of the market portfolio; and Rf   risk-free interest rate. Sharpe (1964) and Lintner (1965) explained that the correct measure of risk of an asset is its beta factor, a standardised measure of the systematic risk and that the risk premium per unit of riskiness is the same across all assets. CAPM has been developed by considering some assumptions such as normal distribution of assets return, perfect divisibility of assets and return, the existence of a risk free rate, perfect market conditions, inter alia, which might not exist in the real world. Despite the fact that most of the above assumptions are neither valid nor fulfilled, the CAPM has become an important tool in finance. It is widely used by finance practitioners for assessment of cost of capital, portfolio performance, portfolio diversification, valuing investments and choosing portfolio strategy among others. The ÃŽ ² factor in the equation 2.1 measures the volatility of the specific asset with regard to the volatility in the market, that is, the market risk. Mathematically it is expressed as in equation 2, below: (2.2) where: systematic_riskasset = covariance of the asset and that of the market market_risk is the volatility in the market portfolio, it is measured by the standard deviation of prices of the market portfolio. 2.2.1  Empirical review of Capital asset pricing model The empirical studies undertaken by Jensen et al. (1972) found supportive evidence for CAPM. The authors found that the actual return, for a sample of companies quoted on the New York Stock Exchange (NYSE), were consistent with the predictions of the CAPM.  They noted that the relationship between the average return and beta was very close to a linear one and that portfolios with high betas had high average returns. The same result was confirmed by Black et al. (1972), who studied of all the stocks on the NYSE over the period 1931-1965. Black et al. (1972) formed portfolios of stocks and analysed the abnormal return with regard to the beta factor, and found a linear relationship between the average excess portfolio return and the beta. Black et al (1972) observed that the beta factor measured the responsiveness of the share return to changes in the returns of the market. Stocks with high positive betas had stock price which rose faster than the market. This implies that high beta stocks bear a higher degree of risk compared to stocks which have their beta factor as negative. Stock with negative beta behave negatively to changes in the market, as such, in a bearish market, it is more attractive to invest in these stocks as it helps to preserve the value of the investor. Fama et al. (1973) also observed a larger intercept than the risk-free rate when analyzing the return against risk. They confirmed that there is a linear relationship between the average return and the beta, even over longer period. They further investigated whether the squared value of the beta and the volatility of assets returns explained the residual variation in the average returns across asset and found that, in addition to portfolio risk, there are other variables that affect expected return. 2.2.2  Critics against Capital asset pricing model There has been also several criticism of the applicability of the CAPM in many markets. Empirical research undertaken by Basu (1977) proposed other factors which have to be considered instead of relying wholly on a single variable, beta. According to Basu (1977) the price earnings ratio has a great influence in market return. Banz (1981) challenged the model by indicating that firm size have a considerable impact on the average returns of a particular stock and thus firm size could better explain the volatility than the market beta. The author observed that the average return of small firms were higher than the average returns on stocks of large firms. Chan et al (1991) made a further observation, on the Japanese market, that stocks with high ratios of book value of common equity have significantly higher returns than stocks with low book to market equity. In this respect, book to market equity started to be regarded as being an important variable that could produce dispersion in average returns. Fama and French (1992) came up with the conclusion that a more realistic approach of the risk in the market is the multi-index models. Their study concluded the findings of Basu(1977), Stattman (1980), Banz (1981) and Chan et al (1991) who argued that size of the firm and the books to market equity ratio are far superior in explaining asset returns. In contrast with CAPM which can be considered as a single factor model, Ross (1976) proposed a multifactor arbitrage pricing theory (APT).  Groenewold et al (1997) examined the validity of the model for Australian data and compared the performance of the empirical version of the APT and the CAPM. They concluded that APT outperforms the CAPM in terms of within-sample explanatory power. The APT, however, is a generic model and does not specify any factor which has to be considered in analysing return with regard to risk. 2.2.3  The ongoing debate on the applicability of Capital asset pricing model Nevertheless, there is no consensus in favour of CAPM due to the disparities in the empirical findings and the debate continues. In general, the studies challenge the data used by Fama et al (1993). Kothari et al (1995) argue that the findings of Fama et al (1993) depend essentially on how the statistical findings are interpreted. Amihudm et al (1992) and Black (1993) supported the idea that the data are too noisy to invalidate the CAPM and showed that when a more efficient statistical model is used, the relationship between average return and beta is positive and significant. The author further suggested the findings in respect of size effect could be simply in a sample period effect and that it may not be noted in another period. Similarly, Berk (1995) questioned the findings of Chan and Chen (1991). The author emphasised that stock prices (and market value of the equity (MVE)) depend on the expected future cash flows which is used by investor to estimate the risk and the required rate of return. Therefore, if two companies have a higher discount rate and consequently its price and MVE will be lower. In this sense, MVE captures the information about the company’s risk, since any change in investors’ perceptions of risk is immediately reflected in the stock prices. Furthermore, when the expected return of a firm is defined as the expected cash flow divided by its MVE, the relationship between MVE and return is clearly negative for companies with equivalent cash flows. Berk concludes that for companies of similar cash flows, the higher the risk of the cash flow, the higher the discount rate investors apply to it, which causes price to decrease and expected return to increase. This concept has contradicted the findings of Chan and al (1991), which attribute higher returns to smaller companies. Owing to its intuitive appeal, the CAPM has become an important tool in finance for assessment of cost of capital, portfolio performance, portfolio diversification, valuing investments and choosing portfolio strategy among others. However, there is no consensus in the literature as to what a suitable measure of risk is, and consequently, as to what is a suitable measure for evaluating risk-adjusted performance (Galagedera, 2007). As such, the debate for robust asset pricing models continues. Other studies (Ball and Brown (1969) and Beaver, et al (1970)) have focussed on accounting variable to convey information about the market risk. 2.3  Accounting variables as a measure of systematic risk Research in accounting variable as a measure of risk has increased considerably since the last forty years with a number of published papers by Beaver et al (1970), Lev et al (1974) , Bernard (1989), Ohlson (1995), and Kothari (2001). Beta measures the relative risk whereby risk itself is determined by some combination of firm characteristics, market conditions, and the sensitivity of the firm stock to market conditions. As such, understanding the relationship between the accounting variable and the systematic risk can provide an alternative basis to a market based estimation and prediction which will in turn guide the accounting policy formulation and investment decision making (Brimble et al, 2007). The study by Beaver et al (1970)  was the most quoted research in accounting and financial research. The author had improved the perdition of systematic risk by considering the firm specific characteristic and they identified significant association between market risk and firm specific accounting information. The financial statements of firms were mostly used in providing considerable information that could be used to measure the inherent risk. In fact, the Financial Accounting Standards Board (1983) stated that the objective of financial reporting is to provide information that is useful to present and potential investors and creditors and other users in making rational investment, credit, and similar decisions. A number of studies investigated how financial information becomes impounded in security prices and affects investment decisions. These accounting data are converted into the financial constructs, such as growth, operating leverage, profitability, liquidity, and efficiency. There is considerable evidence that since the late 1800’s ratio analysis has been widely used in the valuation of published financial data (Connor, 1973). Researchers and investors use mainly financial ratios for risk modelling purposes based on different criteria of comparison which are discussed as follows: Time series analysis: It also known as trend analysis and it is used to compare financial ratios over a period of time. Ratio analysis for one year may not present an accurate picture of the firm (Rao, 1989).  As such, to appraise a firm’s performance, the present ratios need to be compared with the past ratios. Cross-sectional analysis: This method compares ratios of one firm to the ratios of some other selected firms operating in the same industry at the same point in time (Pandey, 1999). Such comparison indicates the comparative financial position and performance of the particular firm. Industry analysis: According to Pandey this type of analysis helps to ascertain the firm’s financial standings and capacity vis-à  -vis other firms in the same industry. A study conducted by Beneda (2006) indicated that commercial lenders often consider the use of industry ratio analysis to be critical with regard to the potential success of the business. The main shortcoming of this analysis is that it is difficult to obtain the average ratio of an industry and if available the average ratio is composed of both strong and weak firms. Financial ratios were used for locating possible takeovers and mostly to predict major events such as corporate failures (Scott, 2004). Other studies reported on an association between accounting ratios and market risk measures, and proposed that certain accounting ratios can be used as proxies in predicting future security (Beaver et al. 1970; Elgers and Murray, 1982). 2.3.1  Usefulness of accounting variables The use accounting as means of estimating the systematic risk will allow the user of the financial statement to assess the investment alternative in terms risk, return and the value of the firms. Ryan (1997) has widely discussed the motive for relating accounting research to measures of market risk: The volatility of market betas over time indicates that the ex post measure of systematic risk is does not provide meaning full information in estimating the future risk. As such, understanding the relationship between accounting variables and systematic risk could indeed be useful in measuring and predicting the actual and upcoming market risk. Market based measures of risk, like the capital asset pricing model, fail to consider most of the firm specific characteristic such as the operational factors and environmental contingencies which influence risk. The accounting risk based information gets closer to the identification these economic fundamentals. Therefore accounting model provides an actual risk determinants rather than just determining the level of risk. Accounting risk model overcome the conventional problem were ex post measure of risk can not be applied due the fact that historical security returns is not available or insufficient like in the case non listed entities and for initial public offering Accounting variable are not affected by the noise found in traditional risk estimates which rely on past trading histories whereby significant variation in one period subsequently affect the overall risk level ; The development of trading strategies and the construction of portfolios with the desired level of risk. 2.3.2  Theoretical and empirical review of the relationship between individual accounting variable and systematic risk. Researchers on the association between systematic risk and accounting ratios were primarily initiated by Beaver (1970). The ratios used by the author were dividend payout, growth rate and leverage ratio, liquidity ratio, variability of earnings and co-variability of earnings. Other studies have further elaborated on these ratios and they also added other accounting based to measure the systematic risk. All these ratios aim at measuring the operating risk, financing risk and growth risk. The theories and empirical finding between these two variables are discussed as follows: Dividend Payout Corporate dividend policy has been the object of lively discussions in finance literature. The debate has revolved around the question of whether companies with generous distribution policies are less risky and whether there exists an optimal payout ratio. Theoretically, it is often asserted that firms with low payout ratios are more risky.  This is because that cost for external finance is relatively high for risky firm than firm with low risk. In this respect, risky firms rely on the utilization of their own reserves to carry out business activities. Dividend payout also affects the systematic risk by the information perceived by variation in the dividend policy. The original idea behind the information content of dividends, was developed by Lintner (1956) who claimed that managers only increased dividends when they believe that the levels of the firm’s earnings have permanently increased. He argued that decrease in dividend may be interpreted as cash flow or liquidity problem. Miller and Modigliani (1961) have argued, on the other hand, that dividend policy is irrelevant to the market value of shares. In a model which disregards taxes, they conclude that the payout policy which the corporation adopts, has no effect on the price of shares. Similarly Watts (1973) and Gonedes (1978) found no evidence that changes in dividend policy contain new information regarding firms future earnings. Gordon (1963) further pointed out that an increase in the proportion of retained profit now means higher cash dividends in the future and therefore conservative dividend policy has no effect on the risk factor. Still, Veikko (1967) explained that the higher the retention rate, the further in the future cash dividends are moved and the greater the uncertainty about their actual amount. Empirical evidence by Edward et al (1998) further showed that a significant negative relationship exists between the dividend pay out ratio and risk element. Growth rate Growth affects the systematic risk in two main ways as identified by Beaver et al (1973).  Firstly, where a firm earns excessive earning opportunities, that is, where the expected rate is higher than the cost of capital. Growth is normally attained by an expansion in the assets size either through the acquisition of new plants or by creating new product line or by takeovers.  The excessive earnings stream derived from these operations is argued to be more uncertain (i.e. volatile) than the normal earnings stream of the firm. In this respect the authors stated that a positive association exists between growth rates and risk. However, Harrigan (1984, 1986) have deepened this analysis and the author has observed different level of association over different industry life cycle characteristics. Harrigan argued that growth strategies, through takeovers and new product development, may be quite risky during an embryonic stage due to the high degree of product, process, and market uncertainty. In contrast, growth strategies may be less risky during times when demand conditions are growing in a stable manner. Finally, growth strategies are expected to become quite risky again as an industry is in transition to maturity because of the cut in the excessive earning streams. The second argument is related to the logic developed about the dividend payout ratio. Additional capital, utilized in the growth of the firm, would reduce the firm earnings in two main ways. If the expansion in asset is financed by the external debt, the firm earning would be eroded through finance cost. Whereas if the growth is financed through the retained earning, a sharp cut in earning attributable to the shareholder is expected. Both methods will ultimately lead to a reduction in dividend payout and thus increase the systematic risk. Asset Size Theoretically, larger firms are less risky than smaller firms. This is because large firms have better access to capital market, management skills and expertise and greater market liquidity. These factors provide opportunities to diversify and to seize new market opportunities to reduce operating risk which will impact on a lower beta than small firms. The studies of Dun et al (1970) reveal that the frequencies of failure are lower for large size firm than firm with low asset capitalization. Horrigan (1966) has shown that the most single important financial statement variable used to predict the bond rating of a firm was total assets. The author observed that if the asset returns are independent, the variance will decrease in direct proportion to the difference in asset size that is, as firm size doubles, the variance of the rate of return will be cut in half. Empirical work by Alexander (1949) observed that as firm size increase, the volatility in the earning streams decrease accordingly.   Moreover firm with wide operating activities are required to make more disclosure. For example the Mauritian companies act, 2001, stipulate that firms with Turnover above MUR 30 Million are required to file a complete set of financial statements with the Registrar of Companies. This information may be consulted by the members of the public upon payment of a nominal fee. Thus, more information is available to evaluate risk level. Collins et al (1987) have identified that small and recently incorporated firms have a high probability of financial distress. Accounting beta Research about the association between the market based beta and an accounting beta originated with Ball and Brown (1969). Accounting beta measures the degree of co-variability of firm earnings and the market earnings. Beaver et al (1970) argue that, if beta is being the used as the market determined concept of risk, then the most direct approach would be to compute the beta value on accounting earnings. Bowman (1969) demonstrated that the higher the accounting beta, the higher the systematic risk. Hence a positive relationship is expected between the two variables. Earning Variance The important relationship between earnings and the market beta is their covariability, accounting beta, is shown in the above. However, the empirical research has generally shown earnings variability to be superior to an accounting beta. Beaver et al (1970) found in a model that use accounting variables to forecast market risk that earnings variability was the most significant variable and that accounting beta did not make a statistically significant contribution. The relationship established by Ball and Brown (1969) is therefore theoretical. Empirical results may differ from theory for two main reasons as advanced by Bowman (1969). The assumptions (i.e there are only pure equity firms (no debt) in the market portfolio) of the theory may not be applicable to the universe being tested. Secondly, t

William Edward Forster Essay -- Education Act of 1870, England

Section A – Plan of Investigation I will analyze the question of â€Å"How did William Edward Forster contribute to the Education Act of 1870 in England?† How he contributed to the act and what changes he did within the act will show how the act became a new advantage in England for the middle-working class. A speech made by William Edward Forster about the Education Act and a memorandum of October 21, 1869 will be used to discuss his contribution and all the provisions made to the act. The book The Elementary Education Act 1870 by Thomas Preston can be great help because it focuses on the Education Act only. For this question, it is best to start by researching about W.E. Forster and the Education Act of 1870 itself. The contribution of W.E. Forster to the act benefited a lot of families and children themselves because they could get an education for free. Section B – Summary of Evidence William Edward Forster drafted the Education Act of 1870 after the government decided to educate the citizens of the country and because England feared that they lacked an effective education system (Docstoc-documents). This act was also known as the Elementary Education Act and it was a culmination of a long struggle (thirty years) to establish an effective and nationwide education schooling system for children ages 5 to 12 (Looking at History). Jackson wrote, â€Å"Forster did not go to school until he was thirteen, he was taught by his mother† (16) could be the reason why he started the Education Act. Therefore W.E. Forster contributed in creating school boards for England, and the country would be divided into about 2,500 school districts (Spartacus Educational). Like W.E. Forster stated in his speech, there are two primary objects in this bill t... ...Brown who loves to talk about history because it interests him and because he likes discussing the political issues in the world. The purpose of the webpage is to inform about The Education Act 1870: revised version. The website was very helpful because it gave a handful of information about the act and it especially talks about the working-class in England. It also gives a great understanding of the requirements of the act and how the working-class benefits from it. The webpage was worth it because it gave many different facts about the Education Act and it also helped a lot while doing research. There could possibly be some limitations to this source because it was written about 140 years later. The good thing is that the source was never bias at any point, it just gave all the different facts and never focused specifically on one thing with one point of view.

Raphael Lemkin

The Raphael Lemkin Award of the Institute for the Study of Genocide honors a pioneer in social justice. Raphael Lemkin, an attorney descended from Polish Jews, lived from 1900-1959 through two world wars and the Great Depression. Born in Imperial Russia before the October Revolution, he saw his related ethnic groups suffer atrocities in the early 20th century. This added later to his interest in the larger problem of genocide, a word he created from genos (Greek: race) and –cide (Latin: killing). During his graduate law education, he focused on the 1915 Armenian Genocide (ch. 1) of WWI and advocated its abolition in the League of Nations. He took on the case of Soghomon Tehlirian, assassin of a former Turkish Minister of the Interior as revenge for his role in the Armenian Genocide. Lemkin moved on to champion victims of the 1933 massacre of Christian Assyrians by Iraqis and then advocated for the minorities targeted by Nazis in Europe (ch. 2), especially Jews and the Poles. Joining the Polish Army, he himself lost 49 relatives in the Holocaust. His studies and his life experiences drove him on. It was difficult to convince America, other Allies, and the world that a Holocaust was actually occurring (ch. 3), partly due to anti-Semitism in many regions. Additionally, major nations were concentrating to fight back the Nazis and the Japanese in two theaters, with little notice at first of the plight of the Jews and the ghetto Poles. Knowing that this was all fact, Lemkin campaigned to educate the world about mass murder by naming it genocide and giving it the darkest personality. In 1944, he published Axis Rule in Occupied Europe, with his definition of this atrocity and continued to advocate his case against it publically. He spoke and wrote documents calling for the world to outlaw it through the United Nations. Humans’ committing same-species mass murder and psychological abuse against minority and ethnic groups was unnatural, twisted, and immoral. In light of his advocacy, he changed teaching and advising positions under political pressure to stop stirring up dissension, finally moving to USA in 1941. After his 1944 publication, he was able to become advisor to the US Supreme Court in the Nuremburg trials in which genocide was tried for two years. American policymakers did not wish to speak out against genocide or have responsibility for leading a movement against it. A large-scale military strike would — and did — cost many lives, dollars, and criticisms. It required a national commitment to Jews long-term and the related criticism. Lemkin continually spoke about genocide, finally bringing about the 1948 U.N. Convention on the Prevention and Punishment of the Crime of Genocide in 1948 (ch. 4), in the same year that Israel became a nation. Unfortunately, Lemkin's last years suffered much opposition from policymakers who did not want to continue efforts against genocide. However, Senator William Proxmire and President Ronald Reagan provided additional impetus some time later for the successful ratification of Lemkin’s Genocide Convention (ch. 5). Lemkin had been nominated for the Nobel Peace Prize, awarded other honors, and accomplished much. Thus, he likely believed that justice would finally win out over genocide in the second half of the 20th century, spurred on by the foundation of his accumulated actions and their results. References Power, Samantha. A Problem from Hell†: America and the Age of Genocide. Chapters 1-5 (17-78).

Pygmalion Act Iiii Essays - Pygmalion, English-language Films, ELIZA

Pygmalion Act Iiii Essays - Pygmalion, English-language Films, ELIZA Pygmalion Act Iiii The trio return to Higgins' Wimpole Street laboratory, exhausted from the night's happenings. They talk about the evening and their great success, though Higgins seems rather bored, more concerned with his inability to find slippers. While he talks absentmindedly with Pickering, Eliza slips out, returns with his slippers, and lays them on the floor before him without a word. When he notices them, he thinks that they appeared out of nowhere. Higgins and Pickering begin to speak as if Eliza is not there with them, saying how happy they are that the entire experiment is over, agreeing that it had become rather boring in the last few months. The two of them then leave the room to go to bed. Eliza is clearly hurt (Eliza's beauty turns murderous, say the stage directions), but Higgins and Pickering are oblivious to her. Higgins pops back in, once again mystified over what he has done with his slippers, and Eliza promptly flings them in his face. Eliza is mad enough to kill him; she thinks that she is no more important to him than his slippers. At Higgins' retort that she is presumptuous and ungrateful, she answers that no one has treated her badly, but that she is still left confused about what is to happen to her now that the bet has been won. Higgins says that she can always get married or open that flower shop (both of which she eventually does), but she replies by saying that she wishes she had been left where she was before. She goes on to ask whether her clothes belong to her, meaning what can she take away with her without being accused of thievery. Higgins is genuinely hurt, something that does not happen to him often. She returns him a ring he bought for her, but he throws it into the fireplace. After he leaves, she finds it again, but then leaves it on the dessert stand and departs. If we consider the conventional structure of a romance or fairy tale, the story has really already reached its climax by this point, because Cinderella has been turned into a princess, and the challenge has been met. Then why does the play carry on for another two acts? This would appear completely counter- productive, only if one thinks that this play is only about changing appearances. The fact that the play carries on indicates that there are more transformations in Eliza to be witnessed: this act shows the birth of an independent spirit in the face of Higgins' bullying superiority. The loosely set-up dichotomy between people and objects (i.e., whether Higgins treats people like people or objects) is brought to a head when Eliza flings his slippers in his face, and complains that she means no more to him than his slippersYou don't care. I know you don't care. You wouldn't care if I was dead. I'm nothing to younot so much as them slippers. Not only does she object to being treated like an object, she goes on to assert herself by saying that she would never sell herself, like Higgins suggests when he tells her she can go get married. This climactic move forces Higgins to reconsider what a woman can be, and, as he confesses in the final act, marks the beginning of his considering Eliza to be an equal rather than a burden. One thing to consider in this act is why Shaw has chosen not to portray the climax at the ambassador's party where Eliza can prove how well she has been instructed by Higgins (although his movie screenplay does allow for a scene at the embassy). One reason is that most theatrical productions do not have the capacity to stage an opulent, luxurious ball just for a short scene. But another reason is that Shaw's intention is to rob the story of its romance. We are spared the actual training of Eliza as well as her moment of glory (that is, both the science and the magic); instead, all we get is scenes of her pre- and post- the dramatic climax.

World War I1 essays

World War I1 essays World War I became known as the "Great War" because it was the biggest war ever in the history of the world. It was supposed to be the war to end all wars. But it wasn't, 20 years later Germany rebuilt its army, and tried again to take over Europe. The peace treaties were partially responsible for World War II. The end of World War I came after 4 years of harsh fighting. When the Americans joined the war effort in April of 1917, the Allies were given unlimited industrial and manpower resources. The US were decisive in winning the war, by sending about 10,000 soldiers per day, over to Europe. Revolution in Germany finally brought an end to the war. In October, 1918, the people of Germany couldn't tolerate the slaughter no more. An armistice, based on Wilson's 14 points, was signed on November 11, 1918. Germany had to evacuate all territory west of the Rhine immediately. The Treaty of Versailles, named for the French palace where it was unveiled, was put together by 70 delegates; representing 27 victorious allied nations at, what was called, the Paris Peace Conference. Germany nor Russia were allowed to attend the conference because Russia, who broke away from the war, because of conflicts at home, signed a separate peace treaty with Germany. The leaders of the "Big Four," consisting of Woodrow Wilson from the US, Georges Clemenceau from France, David Lloyd George from England, and Vittorio Orlando from Italy, made most of the important decisions at the Conference. Clemenceau was a tough, determined, and skillful politician. He was also a vengeful, old man. He was determined that Germany should not only suffer for what they had done, but that the peace terms should make it impossible for Germany to wage war ever again. Lloyd George was also a skillful politician. He wanted Germany's war leaders to be punished. And he was determined that none of Wilson's 14 points should be allowed to interfere with Eng...

Modernism and Postmodernism - 20th & 21st Century Visual and Material Essay

Modernism and Postmodernism - 20th & 21st Century Visual and Material Culture - Essay Example Modernism and Postmodernism - 20th & 21st Century Visual and Material Culture Although commonly called a movement, modernism is more of an international body of literature that is characterized by a self- consciousness about modernity and radical formal experiments. Marx Weber and Engel believe that the romantic critique on capitalism lacked meaning (Whitworth, 39). The two saw the cosmopolitan and universalism of the capital as a means by which all forms of particularism can be destroyed. This opens the possibility of a universal human community founded not on superstition but reason or rationalism. Weller (12) explains that the uplifting and positive worldview that is fostered through the concept of modernism has become oppressive and corrupt to the desolation of intellectuals and artists. According to him, it is surprising that modernism has been largely used by the western world to impose and promote their values against others through an imperial colonial system and globalization. Also, the imposing process has taken the shape of loans (Ukla, 31). The conditions are placed or attached on loans granted by the international Monetary Fund only help to assist the processes of these nations oppression to poor countries or the peripheries. Moreover, the World Bank introduces policies only beneficial to the core countries at the expense of the peripheral ones.

Entry Strategies and Globalization Essay Example | Topics and Well Written Essays - 500 words

Entry Strategies and Globalization - Essay Example The globalization movement provided companies with the capability to realize business with foreign nations. The promotion of free trade among nations has help business organization penetrate marketplaces around the world. Out of the four major market entry strategies the easiest one to implement is exporting. Companies with little experience dealing with foreign markets start off by implementing indirect exporting. Indirect exporting occurs when a company uses intermediaries to facilitate the export of products. For example a company sells 1000 units to retailer such as Wal-Mart and then Wal-Mart sells its products in stores worldwide. The second type of exporting is direct exporting. Direct exporting can be achieved in several ways. A company can achieve direct exporting by establishing an overseas sales branch or subsidiary, by using traveling export sales representatives, and by establishing a domestic export department or division (Kotler, 2003). Exporting is the less risky of th e market entry strategies because a firm does not have to invest in a lot resources to achieve market penetration. The second major market entry strategy is licensing.