Middle school Essay Example for Free

Middle school Essay I want my childs education to be holistic! I dont like cramming and the loads of homework. I want my child to grow in a stress-free environment. The curriculum must stimulate reasoning and analytical skills. At the beginning of every academic year this is what you hear from your parents. Newspaper and magazines highlight the stress and strain students undergo during examinations. Good as it may seem, this generate a false hope parents have woken up to view education from a different dimensions. It makes educator believe that they do not want to support a system that evaluates a childs potential through marks and grades. The success of every child initially depends on parents only. But unfortunately parents suddenly realize the importance of exams, results, percentage and college admissions and begin to rethink and re-valuate their personal convictions. Then they say :I must prepare my child to enter this competitive world. I must help my child to succeed in life. What is this success they talk about? Is it a fulfillment of the childs dream ? Have they channelled the childs talents to achieve? Instead they run from pillar to post collecting question papers and application forms for all the competitive exams. There is no time to consider what the child wants and need. Children are not perceived as individual. Schools become factories churning out prize commodities. As long as parents fail to consider their children as growing individual with aspirations and talents, institutions will continue to capitalize on mass production. No doubt education is a necessity, but what do you want your child to be? Surely, not automatons and generators of wealth. The goal is to develop them into thinking individuals. Only then will we see change. It is the duty of educationists and the governing bodies to give a new meaning, a new direction and strike a new path towards a meaningful education. This is the foundation for a generation of sensitive and cultured human beings. I think this speech will bring a change in parents mind about childs problems about their life. Thank you 2: A Parents Role in Education Home Education Parents have a vital role in their childs education. By taking a few simple steps at home, you can help them enjoy school more, improve their studying and homework skills and prepare for college. The articles in this category, A Parents Role in Education, are full of tips on to help them with their schoolwork, such as creating a positive learning environment to making learning fun. There are also articles on warning signs to help you identify potential learning or school problems. A Parents Role in Education Nothing helps a child succeed like an involved parent. A little willingness from a childs parents can work wonders in the classroom. Read on to learn more about your role as a parent in the education of your child. Creating a Positive Home Learning Environment Your child needs a special place to call their own. Setting aside a room or nook in your home dedicated to your childs education will show him or her that youre serious about their education. Read on to learn more about creating a positive Evaluating Educational Resources on the Web There are many options available when looking for additional educational help online for your child. An awareness of the costs, services, advantages and disadvantages is crucial. Read on to learn how you can best evaluate educational resources Improving Your Childs Grades Parents play an important role in a childs education. This article examines some very simple things you can do every day provide your child with the support and encouragement they need to take on the challenge of improving their grades. Improving your Childs Study Habits Learning skills need to be fostered at home. This article provides tips for parents who want to create a home environment that will help their children develop and maintain positive study habits. Preparing a Child for High School The transition from middle school to high school can be challenging and bewildering for some students. Parents can help make this period of great change easier on their children and themselves. Read on to learn more about preparing a child for Preparing a Child for Junior High School The transition from elementary to middle school or junior high is a difficult one, filled with new social and academic challenges. Here are some tips to help your child prepare for this big change. Reasons Your Child May Be Struggling in School Is your child struggling in school? This article details several of the common reasons why a child might fall behind in their studies and what parents can do to help. Recognizing Student Struggles 1 of 7: The Importance of Identifying Warning Signs The first in a 7 part series, this feature stresses the importance of recognizing your childs classroom difficulties and resolving them quickly. Read on to learn more about the importance of identify warning signs and recognizing student Recognizing Student Struggles 2 of 7: Identifying the Warning SignConfidence Levels This article is the second in a seven part series aimed to help parents recognize the warning signs given off by struggling students. Read on to learn more about how you can remain aware of your childs confidence level, and how you can help Recognizing Student Struggles 3 of 7: Identifying the Warning SignGrades As part of the Recognizing Student Struggles series, this feature explains what a sudden decline in grades might say about a students curricular experience. It also offers suggestions for the most appropriate methods of correction should your Recognizing Student Struggles 4 of 7: Identifying the Warning SignAttitude As part of the Recognizing Student Struggles series, this article explores the attitude changes to look for in struggling students and offers suggestions for improving a childs educational experience. Recognizing Student Struggles 5 of 7: Identifying the Warning SignHomework Is your child struggling with their homework. A new approach and an involved parent can work wonders for a childs success in the classroom. This is the fifth article in the Recognizing Student Struggles series. Recognizing Student Struggles 6 of 7: Identifying the Warning SignClass Standing This feature in the Recognizing Student Struggles series discusses the importance listening to your childs teacher and making use of their feedback. It also highlights what can be done if youre told that your child has fallen behind in his or Recognizing Student Struggles 7 of 7: Identifying the Warning Sign(Lack of ) Determination This article (the last in the Recognizing Student Struggles series) explains several ways to assess a students progress and level of determination based on their responses to failure. The 28 educational standards of the state of New York The state of New York has 28 standards that guide elementary and middle school education. This article outlines those standards in detail. The Educational Advantages of Using Computers and the Internet Computer programs and the Internet create educational opportunities not available to previous generations. Read on to learn how modern technologies can become valuable educational tools. Transform Your Childs Poor Report Card Have your childs grades taken a turn for the worse? Did they just bring home their first poor report card? Dont worry. Read on to learn more about how you can help your child transform his or her poor report card.

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

Medical Revolutions :: essays research papers

The Civil War started as a picnic and ended in compassion, but in between were four hideous years of twisted flesh, burning fevers, rampant pus, and oozing raw stumps. Never before had America faced even a hint of such agony and the way it responded to the occasion is fascinating history. In a very real sense the War Between the States brought forth a medical revolution and, perhaps above all, an awareness of public health. The terrible, swift scalpel became less terrible: and the dank, dirty, dingy pesthouse evolved into a pavilion of hope. Nursing, dentistry, and pharmacy also experienced a renaissance and the art and science of military medicine was projected into the future. The man of medicine who served in the Civil War was, whether he liked it or not, first and foremost a surgeon and always referred to as such. Though his first knife may well have been government issued, he learned the tricks of the trade in due course and sometimes became quite an expert. â€Å"Do your best† was the general idea, and most surgeons did, or at least tried. Nearly all the older doctors had received their education on an apprenticeship basis but the younger men, those who made up the bulk of the army surgeons, usually held a medical school diploma along with an office internship. Little attention was paid to clinical instruction, and in most cases the laboratory was all but forgotten. Further, stethoscopes, thermometers, syringes, and the like were widely used in Europe while many doctors here at home had never seen them let alone used them. In regard to ability and competence, there is no reason to believe the doctors in the North and the South differed in any significant way. While the North was home to more prestigious medical institutions, the South was learning to become less dependent on the North in this area at the outbreak of the war. A number of schools became established. Whether good, bad, or indifferent, the doctors were needed and just about every device was tried to keep up supply, a task compounded by frequent absenteeism. This situation was by no means peculiar to the medical people, for many others in the Civil War had the habit of picking up their blankets and heading back to the old homestead. This is exactly the case for Inman in the novel, Cold Mountain, by Carles Frazier.

Unethical Pitbull Owners Essay -- Animals Dogs Pit Bull Terrier essays

Never Mind the Dog Beware of the Owner   Ã‚  Ã‚  Ã‚  Ã‚  The American Pit Bull Terrier is a good breed of dogs that has earned its popularity throughout the world. The Pit bull is well known to be a loyal, brave and a very good companion to its owner. However, caution should be taken to avoid these terriers from getting into the hands of unethical owners.   Ã‚  Ã‚  Ã‚  Ã‚  According to the United Kennel Club (UKC), the standard for the American Pit Bull Terrier is a dog that is square and powerful with a blocky head, prominent cheeks and jaw, taut, and muscular body. The dog’s ears maybe cropped or snipped. These dogs have a deep chest, and a short, glossy coat of any color. Size can range from 30-50 pounds for females and 35-60 pounds for males. The average pit bull today will cost you any where from one hundred and fifty dollars to one thousand dollars. Pit bulls have great physical and mental characteristics that make them excellent partners for responsible, active and caring owners (PBRC). Pitbull are very responsive to training, intelligent, strong, energetic, agile, and adaptable and are always eager to please (PBRC). For example, the Pit bull was America’s first war dog serving in WWI, saving many lives from soldier of nerve gases and other chemical and biological harm. Pit bulls were also used as watch or alert dogs. In a California based APBT (American Pitbull Terrier) rescue group-encompassed training for Pitbulls to assist persons with disabilities, and with people who needed ther...

Exploring Autism in Children Essay -- Exploratory Essays Research Pape

Exploring Autism in Children Susan was a normal, happy, active infant. Her parents were so relieved that all her checkups at the pediatrician's office indicated that her growth and development were above average. At 6 months she could sit up and crawl and at 10 months she was walking. She seemed to babble more than her older brother did at the same age and was talking at 16 months. All the milestones in her early development were ahead of schedule. One day when she was 18 months old, her mother found her sitting alone in the yard spinning the wheels of her wagon with such persistence that her mom joked with her friends that maybe Susan would be an engineer when she grew up. Susan's mother began to notice many unusual behaviors from her sweet, happy little girl. She seemed really different from her older brother. At 2 years old, Susan, she began to digress more and more. Suddenly, Susan stopped talking and it felt as if she wasn't the same baby she once was. She became obsessed with order and threw a tantrum when anything was moved or was out of place. She was always putting hairy toys in her mouth or sniffing and licking them. It was clear that she was very sensitive to taste, sound, smell, and touch. She threw a tantrum when her mother tried to put jeans on her, soft sweatpants were much more comfortable. When her mom called her by her name, she appeared to be deaf because she was unresponsive to voices or language. She avoided eye contact and would often be fixated on a single item or activity for a long period of time. She was very active and was constantly rocking or flapping her hands. She also would become aggressive. When something would upset her, she would suddenly explode, grabbing anything she could get... ... Andrew awakes. Ladies Home Journal (163-166) Neuwirth, S & Segal, J. Autism. Source: National Institute of Mental Health (NIMH). Retrieved March 14, 2002 from the World Wide Web:http://www.athealth.com/Consumer/Disorders/ Autism.html Powers, M, Psy, D. Children with Autism a parent's guide. Bethesda, MD: Woodbine House Inc. 3-9, 294. 297-298. Smith, D. (1992). Special Education. very low incidence Disabilities: Autism, Deaf- Blindness & Traumatic Brain Injury. (Pg. 520-530, 553-557). Needhan Heights, MA Autism 10 What is Autism . (2001 June) . Colorado Department of Education Fast Facts. Retrieved March 12,2002 from the World Wide Web: www. cde.state.co.us. Treatment and education of eutism and related communication handicapped children.Chapel Hill TEACCH information.Retrieved June 15, 2000 from the World Wide Web: http://Autism- info.com/teacch.html Exploring Autism in Children Essay -- Exploratory Essays Research Pape Exploring Autism in Children Susan was a normal, happy, active infant. Her parents were so relieved that all her checkups at the pediatrician's office indicated that her growth and development were above average. At 6 months she could sit up and crawl and at 10 months she was walking. She seemed to babble more than her older brother did at the same age and was talking at 16 months. All the milestones in her early development were ahead of schedule. One day when she was 18 months old, her mother found her sitting alone in the yard spinning the wheels of her wagon with such persistence that her mom joked with her friends that maybe Susan would be an engineer when she grew up. Susan's mother began to notice many unusual behaviors from her sweet, happy little girl. She seemed really different from her older brother. At 2 years old, Susan, she began to digress more and more. Suddenly, Susan stopped talking and it felt as if she wasn't the same baby she once was. She became obsessed with order and threw a tantrum when anything was moved or was out of place. She was always putting hairy toys in her mouth or sniffing and licking them. It was clear that she was very sensitive to taste, sound, smell, and touch. She threw a tantrum when her mother tried to put jeans on her, soft sweatpants were much more comfortable. When her mom called her by her name, she appeared to be deaf because she was unresponsive to voices or language. She avoided eye contact and would often be fixated on a single item or activity for a long period of time. She was very active and was constantly rocking or flapping her hands. She also would become aggressive. When something would upset her, she would suddenly explode, grabbing anything she could get... ... Andrew awakes. Ladies Home Journal (163-166) Neuwirth, S & Segal, J. Autism. Source: National Institute of Mental Health (NIMH). Retrieved March 14, 2002 from the World Wide Web:http://www.athealth.com/Consumer/Disorders/ Autism.html Powers, M, Psy, D. Children with Autism a parent's guide. Bethesda, MD: Woodbine House Inc. 3-9, 294. 297-298. Smith, D. (1992). Special Education. very low incidence Disabilities: Autism, Deaf- Blindness & Traumatic Brain Injury. (Pg. 520-530, 553-557). Needhan Heights, MA Autism 10 What is Autism . (2001 June) . Colorado Department of Education Fast Facts. Retrieved March 12,2002 from the World Wide Web: www. cde.state.co.us. Treatment and education of eutism and related communication handicapped children.Chapel Hill TEACCH information.Retrieved June 15, 2000 from the World Wide Web: http://Autism- info.com/teacch.html

Introduction to the Sciences Essay

The statement that; â€Å"Computers are part of our everyday lives.† Is so correct, I don’t think the people of today would know how to do anything without the computer. Between the desktop top computers and laptops to the smart phone everything can be stored using less space and the ability to locate stuff so much more easier that if the world of today lost computers around the world for even just an hour would put this world in an uproar. There are three essential properties of every material that scientists use as a premise for almost every study. The kind of atoms is the first one that the material is made up of. You will have your neutral elements and your compound elements. The neutral elements have the same amount of protons and electrons, which basically cancel each other out leaving them neutral. The compound element deals with combining more than one element. In the way those atoms are arrange is the second one. The best example of this is by comparing the atoms of liquid and the atoms of solids. For example the atoms of liquids move around much more freely than the atoms of solids which are packed together. The third one is the way the atoms are bonded together. There are also four key properties one must understand when studying a material. The first is strength which has the ability of a solid to resist changes in shape. The strength of the material, which means it must be able to withstand the forces being applied to it without breaking, is the first. There are three distinguished different kinds of strength that scientists and engineers recognize. One is the ability to withstand crushing, another is its ability to withstand pulling apart and the last one is its ability to withstand shearing. The most critical key property to us is those that control the flow electricity. An electrical conductor is capable of carrying an electrical current. See more: how to start an essay Which means electrons can flow freely. However, there are also other materials that can also conduct electricity, like saltwater that contains ions of sodium and chlorine, which also freely move if they become of an electric current. Electrical insulators are a material that will not conduct electricity unless they come into contact with an extremely high voltage that can pull the electrons loose. Semiconductors and Superconductors are the third properties. Semiconductors are neither good conductor nor are they a perfect insulator. But, they are the most important components of our electronic age. A superconductor is a property that exhibits materials that when cooled within a few degrees of absolute zero. The last one is the magnetic properties of materials. Even though we may not pay much attention to magnets they are a part of our daily lives. Magnets are in most of our electric motors or our stereo speakers and many other things we use on a daily bases. Now before we look at microchips and the information revolution, we must learn about doped semiconductors. Doping is intentionally introduces impurities into a pure semiconductor. There are two really important consequences with doping semiconductors the first being, is there are conductions electron in the material and the second one being phosphorus ion that has been left behind has a positive charge. A u-type semiconductor is a semiconductor doped with phosphorus because a moving charge is a negative charge. A p-type semiconductor is when silicon can be doped with an element like aluminum. When the aluminum is dope into a crystal structure there is one less valence electron. This missing electron creates a material tat can easily carry an electrical current. Once it starts moving around the aluminum atom has now acquired an extra electron which has a negative charge. When placing a u-type semiconductor against a p-type semiconductor negative charge electrons will diffuse from the u–type to the p-type whereas positive charged holes will diffuse the opposite way, p-type to u-type. A semiconductor like this is known as a diode. Once constructed a permanent electrical field pushes electrons across the boundary from u-type to the p-type. As the electrons flow in the diode the current flows normally. However, when it is reversed the electrons are blocked by the built in electrical field. This makes the diode allow a one way passage to allow the electrical current in only direction. By the use of a device called photovoltaic cell the semiconducting diodes play a very important role in the future of the U.S. It is nothing more than a thin layer of u –type material bonded to thicker layer of p-type material. The photovoltaic cells are in hand calculators, cameras and televisions. A transistor is a device that s based on our entire information age. It is just like a sandwich. One would have a u-type, p-type, u-type and another would be a p-type, u-type, p-type. Both transistors control the flow of electrons. Even though diodes and transistors still have a role in modern electronic they have mostly be replaced by much more complex arrays of p and u type semiconductors called microchips. The first transistors built where about the size of a golf ball but now days they can be as small as a grain of rice. Microchips incorporate hundreds to thousands of transistors in one intergrated circuit that is designed to perform a specific function. Computer science is a branch o f science that’s main goal is to create intelligence in machines and robots. It is known as artificial intelligence. Artificial Intelligence is the study of man-made computational devices and systems which can be made to act in a manner which we would be inclined to call intelligent. Artificial intelligence research is highly technical, it is deeply divided into subfields that do fail to communicate with each other. The differences between the computer brain and the human brain is that the human brain is composed of soft organic tissue made mostly of fat. The computer brain, however, is composed of hard, inorganic materials made mostly of silicon and copper. Another difference between the two brains is that the human brain’s software-the mind-exists only metaphysically and the computer’s brain knows only what it was programmed to know, well at least so far anyways. References: The Sciences: An Integrated Approach Edition 7 Chapter 11 Materials and Their Properties http://en.wikipedia.org/wiki/Artificial_intelligence

Shanker’s Article on The Real Victims

Albert Shanker for 25 years was the columnist for â€Å"Where We Stand† in the New York Times and also president of the American Federation of Teachers. His article on the Real Victims addressed the need for alternative programs to resolve violence and disorder in schools. He agrees with Education reformers about setting high standards for students to achieve. But its worthless Shanker argues if students are continually in fear of a stray bullet hitting them or classes ruled by disruptive students. Shanker opens with an example of school violence, how it terrified one student witnessing the stabbing of another student. Fearful of herself being stabbed too, the girl dropped out of school but managed to earn a GED and further her education into college. Not many could follow the footsteps of this successful girl Shanker warns. Many students he states are scared and disarrayed and lost to school and learning. He gives an example of disruption and how if not equally more damaging it is when compared to school violence. If there is one student that is disruptive in a class then the teacher†s time will be spent on trying to contain this student rather than attend the many who want to learn Shanker states. As a consequence Shanker concludes this will wreck the concentration of the many learning students in that class. There is a high level of tolerance for this kind of behavior he states, and school officials seem to be at a loss. Shanker claims that students carrying guns or drugs or who have been violent to other students have simply been transferred to another school, and those students who are chronically disruptive seem to deserve more tolerance. He states that little is done to kids who keep others from learning. As a result of this failure to remedy the problem Shanker observes that parents that are very much aware of the situation go for vouchers and tuition tax credits. Hoping that by placing their children in schools that do not tolerate violence or disorderly conduct will shield them from it. Many education experts he points out argue that our first responsibility is to the minority of violent and disruptive kids. These kids they claim have a ‘right† to an education and that they deserve to stay in class too. He refutes this point by addressing the rights of the rest of the students making the majority of the class. Those he claims that are ready to work and willing to learn. Why he questions would we want to threaten their security and education. Shanker defends himself that he does not want to put the violent and disruptive children on the streets rather; he wants to see a change in the system. A system he urges that does not surrender the vast majority of willing and learning children for the few and violent children. A consequence of not finding an effective remedy to the system of things is that children with impressionable minds will learn the wrong lessons Shanker claims. To support his reasoning he gives an example of a child committing violence against another. The by-standers watching this happen are positive something bad will happen to this violent student. To the surprise of the children, the teacher gets in trouble for reporting the incidence. Children†s sense of right and wrong fades, a bad lesson taught and a violent child is automatically made a leader for the rest to observe and follow Shanker concedes. Shanker argues that the system is irrational and this is why irate parents demand vouchers and tax credits, anything that could save their children from the few violent children who take hostage the educational system. Rather than the majority of wiling and learning students move out, why not move the few aggressive and troublesome students, Shanker concludes.