The Effects of Social Networking Essay Example for Free

The Effects of Social Networking Essay A social network is a theoretical construct useful in the social sciences to study relationships between individuals, groups, organizations, or even entire societies (social units, see differentiation). The term is used to describe a social structure determined by such interactions. The ties through which any given social unit connects represent the convergence of the various social contacts of that unit. This theoretical approach is, necessarily, relational†¦(Wikipedia, pars.3). In the late 1800s, both Émile Durkheim and Ferdinand Tà ¶nnies foreshadow the idea of social networks in their theories and research of social groups. Tà ¶nnies argued that social groups can exist as personal and direct social ties that either link individuals who share values and belief (Gemeinschaft, German, commonly translated as community) or impersonal, formal, and instrumental social links (Gesellschaft, German, commonly translated as society)( Wikipedia, pars.4). Major developments in the field can be seen in the 1930s by several groups in psychology, anthropology, and mathematics working independently (Wikipedia, pars.5). Communication Studies are often considered a part of both the social sciences and the humanities, drawing heavily on fields such as sociology, psychology, anthropology, information science,biology, political science, and economics as well as rhetoric, literary studies, and semiotics. Many communications concepts describe the transfer of information from one source to another, and can thus be conceived of in terms of a network (Wikipedia, pars.26). Social Networking is the practice of expanding one’s social contacts by making connections through individuals. Social media has changed the way people interact (Frazier, pars.1). Although it is possible in person, it is most popular online, with the use of the internet. The internet is filled of billions of individuals who are looking to meet new people, to gather or  share informations, they even use it in their businesses. Social Networking isn’t new at all, But, it keeps on expanding. From Friendster, one of the first Social Networking website in the World Wide Web, to Facebook, which is still popular now. Twitter, Google, Tumblr, Youtube are in Social Networking and everyone will keep finding more ways to use it. â€Å"In general, here’s how it works: you join one of the sites and invite people you know to join as well. Social networks are everywhere. Friends, colleagues, neighbours[sic] and family make up most people’s network of social contacts, and they have a powerful effect on our behaviour[sic] (COIN PIRC) . Those people invite their contacts to join, who in turn to invite their contacts to join, and the process repeats for each person. In theory, any individual can make contact through anyone they have a connection to, to any of the people that person has a connection to, and so on.† Social networking sites now reach 82 percent of the world’s online population, representing 1.2 billion users around the world. The social networking adoption trend largely mirrored the global Internet adoption curve, and grew proportionately, showing that as people began to get connected, they immediately began connecting with one another(). We are aware of the use of Social Networking. We use it as a tool of communication nowadays. It can be very useful to get in touch with people who you know in person. With Social Networking, we can express ourselves in ways we never dreamed of doing face to face. We don’t have to leave the house to purchase products. We don’t need to buy books because there’s a lot of source material in the Internet. We can make friends with people in different countries. We have a lot to do with it. If we’re aware of its uses, we should be aware of the dangers and harm associated with Social Networking. It includes online predators or what they call â€Å"posers†, theft and viruses. We should be aware of its effects on ourselves especially in our habits, routine and in our behavior. In how we manage our time spending in Social Networking because sometimes we’re abusing it. We have limitation, you must know it. Because we never know, it already destroyed you. We are the product of our environment. In Social Networking, many will influence you. In addition, Our own behavior, actions  and habits are likely to be more largely influenced and impacted by Social Networking. â€Å"Social Networking is one of the most active web-based activities in the Philippines†. Filipinos we’re declared as the most active users of the web-based social network sites. The Philippines has been marked as â€Å"The Social Networking Capital of the world†. Filipinos are very expressive with their thoughts or opinions. Sometimes, they’re abusing the use of Social Networking. Because of that, there are some laws or acts that the Philippines implemented. The Cybercrime Prevention Act of 2012, which is officially recorded as Republic Act No. 10175, it aims to address legal issues concerning online interactions and the internet in the Philippines. Cybercrime offenses include Cyber squatting, Cybersex, child pornography, identity theft, illegal access to data and libel. The Senate Bill No. 1798 by Senator Compaà ±era Pia S. Cayetano, which is an act stating the prohibition of Computer Shops from accepting students in their shops during school hours. There’s also a legal bases regarding the distance of Internet Cafà © from school in the City of Manila. It is the Ordinance No. 8168 provided for 25 to 200 meters distance between a school gate to the nearest gaming i-Cafà ©. While, the non-gaming Cafà ©s are allowed any distance from school gate or even inside the school. As a Computer Science student, we are engaged in computer, especially in Social Networking. We’re glad with what Social Networking’s uses. It gives us a lot of benefits. We get updated. But, we observe some changes in some individual. We didn’t like the fact that Social Networking has effect in other individual’s behavior. We want to solve the Why and How questions` in our heads. What are the factors causing these problems? This thesis will explore and find out if Social Networking has an effect on the behavior of some Computer Science freshmen students in PUP Mabini Campus. This aims to know the activities, sites that are affecting the behavior and how Social Networking changed their behavior. The statement of the Problem The aim of this research is to find out the effects of social networking on the behavior of BSCS freshmen in PUP Mabini Campus S.Y. 2012-2013. Further, it answers the following specific questions. 1. Does Social Networking have an effect on the behavior of BSCS freshmen of PUP? 2. What Social networking site/s do the respondents frequently use? 3. What activities in Social Network do the respondents usually engage themselves in? 4. What activities on Social Networking change the behavior of the respondents? 5. How has social networking changed the behavior of the respondents? 6. What behavioral changes do the respondents experience in their social networking? Scope and Limitation This study is about the effects of Social Networking on the behavior only in Bachelor of Science in Computer Science Freshmen in College of Computer Management and Information Technology at Polytechnic University of the Philippines Mabini Campus School year 2012-2013. The study didnt covered other related issues to the effects of Social Networking like class standing of a student or effects of it on the physical health and etc. Its only conducted on Bachelor of Science in Computer Science Freshmen not on higher years, other colleges and before and after the School year 2012-2013 Definition of terms Social Networking The development of social and professional contacts;the sharing of information and services among people with a common interest.(Dictionary.com) Cybercrime Any use of a computer as an instrument to further illegal ends, such as committing fraud, trafficking in child pornography and intellectual property, stealing identities, or violating privacy. Cybercrime, especially through the Internet, has grown in importance as the computer has become  central to commerce, entertainment, and government. (Webster) Cybersex Cybersex, also called computer sex, Internet sex, netsex, mudsex, TinySex and, colloquially, cybering or conversex is a virtual sex encounter in which two or more persons connected remotely via computer network send each other sexually explicit messages describing a sexual experience. In one form, this fantasy sex is accomplished by the participants describing their actions and responding to their chat partners in a mostly written form designed to stimulate their own sexual feelings and fantasies.(Wikipedia) Facebook-is a social networking service launched in February 2004, owned and operated by Facebook, Inc. As of September 2012, Facebook has over one billion active users,more than half of them using Facebook on a mobile device.(Wikipedia) Twitter- Twitter is an online social networking service and microblogging service that enables its users to send and read text-based messages of up to 140 characters, known as tweets. It was created in March 2006 by jack Dorsey and launched that July.(wikipedia) Friendster- is a social gaming site that is based in Kuala Lumpur, Malaysia. It was previously known as a social networking website. Before the site was redesigned, the service allowed users to contact other members, maintain those contacts, and share online content and media with those contacts. Research Methodology Research Design The descriptive method of research was used for this study. To define the descriptive type of research, Creswell (1994) stated that the descriptive method of research is to gather information about the present existing condition. This study were the activities of respondents in Social Networking and the effects of these activities. Respondents The target population consisting of 30 students in Computer Science freshmen. There are 5 section in Computer Science 1st year; hence the respondents will be 6 students per section. Research Instrument The survey questionnaire was used as the main data-gathering instrument for this study. It is an interview, where in the researchers prepared a list of questions to be answered by the BSCS freshmen students. Other data was based on the researchers observation. Data-Gathering procedure The information was gathered from the 6 freshmen students per section of Computer Science department of PUP Mabini Campus who were surveyed by the researchers. The researchers conducted a survey on separate date and time of interview and it is recorded individually.

Effects Conflicts On Growth And Development Of Businesses Politics Essay

Effects Conflicts On Growth And Development Of Businesses Politics Essay Conflict is an open clash between two opposing groups (or individuals). Conflict is actual or perceived opposition of needs, values and interests, Conflict has serious implications for development in countries affected by it, not only in terms of the difficulty of implementing development policies, but also because it leads to more poverty and lower growth, which are very serious root causes of conflict. Conflict between the Mamprusi and Kusasi ethnic groups is long-standing over some decades and has resulted in sporadic and recurrent outbreaks of serious violence resulting in destruction of property and death on many occasions. Indeed the Bawku conflict brought into play a complex matrix of structural and contingent factors that makes the disaggregating of the events particularly difficult. Hostilities between the Kusasi and Mamprusi is probably as old as the state of Mamprugu itself, since the town of Pusiga, less than ten miles distant from Bawku, was one of the first stopping places for the band of invaders who established the Mamprusi Kingdom. Most recently, in December 2001, violence broke out following a dispute between a Kusasi and a Mamprusi at a lotto kiosk in the Sabongari section of the town. Subsequent tit-for-tat attacks led to at least 29 deaths and 36 serious injuries in the month of December alone. The area in which the conflict occurred is ethnically heterogeneous and has one of the lowest income (80% living in extreme poverty) and literacy (26.3% of adults functionally literate) rates in the country. It is a relatively densely populated area with over 100 residents per kilometer. There is relatively strong religious (66%) and ethnic (64%) attachment by the populace. Voter consciousness is high and party affiliation (NDC, NPP and PNC) strong with 2000 voter registration figures of 95 per cent. (Source:2000 population and housing reports) Additionally simmering disputes over the Bawku skin have persisted for years. A number of the protagonists have been brought before the courts, but to date no credible insights have been gained into the motivation for and execution of the attacks. A frequently cited study by Christian Lund provides further information concerning the history of conflict in recent decades, including overlapping issues of land ownership, ethnicity, chieftaincy an d others, including the unresolved issue of the Bawku skin (signifying entitlement to the throne); The skin is the symbol of chiefly authority in northern Ghana, equivalent to the stool in the south. It symbolizes the chieftaincy and the throne. When a chief is enskinned, he is seated on the skin of an ox sacrificed for the occasion. In normal parlance, chiefs who are forced to abdicate are de-stooled, not de-skinned. Bawku has a long history as a flashpoint town in Ghana. In 2001, at least 28 people were killed there when factions clashed in another battle apparently sparked by a relatively small crime, the destruction of a small shop. The international human rights group Amnesty International has expressed concern about the lack of political will to solve the crisis. The group said in a statement that the failure to resolve the conflict stems from a game of hurt no one in order to win all votes. An interview with the business community in Bawku revealed that some businessmen and women from Bawku have re-located their businesses to other parts of the region notably Bolgatanga and Zebilla. While some traders felt secure doing business in Bawku, others said they did not, citing the general insecurity and the decline in commercial activities as their reasons. The decline in business is further reflected in the assemblys revenue mobilization.   It collected 507.2 million cedis as against an estimated revenue target of 749.3 million cedis at the end of December 2001. The District Co-ordinating Director, Mr. Ibrahim Alhassan attributed the assemblys plight to looting of its coffers by revenue collectors in the wake of the conflict last December. Non-governmental organisations (NGOs) seeking to bring peace to the area have been organising seminars, dialogues and brokered peace accords endorsed by the two main factions, the Kusasis and Mamprusis. This years United Nations (UN) day for peace and reconciliation was specially dedicated to Bawku to get the people to appreciate the need for peace the area. Advocates for peace in the area have suggested the combination of extensive military tactics to retrieve arms and diplomacy and education to bringing lasting peace to the area. 1.2 STUDY AREA INTRODUCTION AND OVERVIEW OF THE MUNICIPALITY LOCATION AND SIZE Bawku Municipality is one of the nine districts and municipalities in the Upper East Region of Ghana. It is located approximately between latitudes 11o 111 and 10o 401North and longitude 0o 181W and 0o 61E in the north-eastern corner of the region. The municipality has a total land area of about 1215.05 sq km. It shares boundaries with Burkina Faso, the Republic of Togo, Bawku West District and Garu Tempane District to the north, east, west and south respectively. The Bawku Municipal Assembly was established by LI 1738, 2004. LEADERSHIP OF THE ASSEMBLY Hon. A. A. Awuni Presiding Member Hon. MusahAbdulai Municipal Chief Executive Mr. P. K. Kuupol Municipal Coordinating Director LOCAL ENVIRONMENT LAND COVERAGE AREA The Municipality has a total land area of about 1215.05 sq km. CLIMATIC CONDITIONS As with the whole of the Upper East Region, Bawku Municipality is part of the interior continental climatic zone of the country characterized by pronounced dry and wet seasons. The two seasons are influenced by two oscillating air masses. First is the warm, dusty and dry harmattan air mass which blows from the north easterly direction across the whole municipality from the Sahara Desert. During the period of its influence (late November early March) rainfall is entirely absent, vapour pressure is very low (less than 10 mm) and relative humidity rarely exceeds 20% during the day but may rise to 60% during the nights and early mornings. Temperatures are usually modest at this time of the year by tropical standards (26 0c 28 0c). May to October marks the wet season. During this period, the whole of the West African sub-region including Bawku Municipality is under the influence of a deep tropical maritime air mass. This air mass together with rising conviction currents, provide the Municipality with rains. The total rainfall amounts to averagely 800m per annum. A striking characteristic of the rainfall worth noting is the extreme variability and reliability both between and within seasons. Another striking characteristic is the large quantity of rain water normally lost through evapo-transpiration from open water surfaces. An estimate of the volume of rain water loss varies from 1.55mm to 1.65mm per annum. POPULATION CHARACTERISTICS The estimated total population of Bawku Municipality is 205,849. Its population density is 169 persons per square kilometer. The population of the Municipality constitutes about twenty percent of the Upper East Regions population and 0.99 percent of the Nations population. The population is 20 percent urban and 80 percent rural. The dependency ratio is 1:1:25. About 55 percent of the population is outside the working group which constitutes a stress on the working population. Household sizes in the Municipality are fairly large like it pertains in most parts of the country. According to the 2000 population census report, on the average there are seven persons per household. Though these large households could mean availability of labour, it has some financial implication in terms of feeding, healthcare, education, clothing etc.The large number of household therefore constitute economic burden. POPULATION GROWTH RATE The population growth rate of the Municipality is 1.1. ETHNIC GROUPINGS The predominant tribes in the Municipality are Kusasis, Mamprusis, Bissas and Moshies with Kusasis forming the majority followed by Mamprusis. However, there are quite a number of migrants from other parts of the country, especially the south (most of whom are civil servants) and the neighbouring countries like Togo and Burkina Faso. Ethnic heterogeneity has had implications for harmony in the Municipality. In the very recent past, there have been sporadic violent ethnic clashes between the Kusasis and Mamprusis. It is expected however, that inter-marriages among the diverse ethnic groupings will provide the impetus for peaceful co-existence. The predominant languages spoken in the municipality are Kusal, Mampruli, Bissa and Moli. There are however quite a number of other languages spoken in the Municipality including Hausa, Ga, Gurune, and Twi. EDUCATION Education and literacy provide the opportunity for individuals to participate in a wider job market. In the Municipality, the standard of education is generally low as compared to that of the nation as a whole. Though the Municipality has seen a lot of interventions in the construct ion of new school buildings, many schools are still accommodated in dilapidated structures with some children still receiving lessons under tress and unclouded pavilions. Senior High School (SHS):- The Municipality has two (2) SHS, one Technical Institute, a Vocational Institute, Teacher Training College and a Nurses Training College. These institutions are opened to not only the Bawku Municipality but to the whole of Upper East Region and beyond. HEALTH The Municipal Health Management Team (MHMT) is headed by the Municipal Director of Health Services, assisted by Medical Assistants, Senior Nurses and Technical staff. Health care in the Municipality is provided through hospitals, health Centres, CHPS Centres and private clinics. 1.3 STATEMENT OF THE PROBLEM Conflicts are seen as a serious problem in our Ghanaian community and the world at large. The predominant types of conflicts in Ghana are so-called Chieftaincy Conflicts, which are centred on the chieftaincy institution. Relatively, the institution has survived the impositions of both the colonial and the post-colonial regimes that have included them within the boundaries of the modern states (see Nukunya (1992, 77-78). A country that has experienced many major developmental programmes undoubtedly is contingent on peace and stability. However, regardless of all this serious conflict-free campaigns, the bawku municipality in the upper east region of Ghana is still saddled with series of conflicts which posses so many threats on life and properties. People have ascertained that the root cause of the conflict lies on the fact that dubious and unscrupulous people in the area want to use the unsecured nature of the area to intentionally cause fear and panic in other to rob people off their properties. Secondly others are Also of the view that the conflicts dwells largely on chieftaincy. Notwithstanding, others still ascertain that their differences in political ideologies, farmlands, celebration of festivals, the unable ness on the part of the Mamprusis to have their damba festival celebrated and as well perform the funeral of the late Naba Calipha among others are the cause of the conflict in the municipality which leaves in its wake hunger and poverty. Generally, Chieftaincy disputes erupt when there are two or more rival claimants to a vacant à ¢Ã¢â€š ¬Ã… ¾stoolà ¢Ã¢â€š ¬Ã… ¸ or à ¢Ã¢â€š ¬Ã… ¾skinà ¢Ã¢â€š ¬Ã… ¸, the symbols of kingship or chieftaincy in the à ¢Ã¢â€š ¬Ã… ¾traditionalà ¢Ã¢â€š ¬Ã… ¸ state. The rival claimants to such traditional authority may either belong to different ethnic groups or to different lineages of the founding family. These are exacerbated by direct as well as discreet political interventions in chieftaincy affairs. For instance, when governments support loyal claimants to chieftaincy positions against less amenable ones has led to tensions between traditional rulers and government officials on the one hand, and between rival claimants to chieftaincy positions on the other hand. So too have attempts by wealthy pretenders to gain the position on the basis of wealth and influence in society. Currently, it is estimated that there are over 100 chieftaincy conflicts in Ghana, centred on ethnicity, succ ession to traditional political office and the struggle over land (Tsikata and Seini, 2004; 25). In Ghana, the struggle to become a Chief may turn violent: when the historical, political, economic and social circumstances around the establishment of the chieftaincy institution in a traditional state become contested; when the rules of succession become unclear; when successive national governments and political parties support one group against the other in a bid to serve their own parochial political interest; and when there are small and light weapons available to the factions in the dispute. However, though chieftaincy conflicts are largely localized (as the disputes occur within the boundaries of the traditional state), and the associated violence hardly spills over into neighbouring traditional states, the conflicts social, political and economic ripples become felt beyond the conflict zone. Conflict has serious implications on development in countries affected by it, not only in terms of the difficulty of implementing development policies, but also because it leads to more poverty and lower growth, loss of lives, damage to properties, displacement of families, slows down development, among others. The puzzling question remains as to the effects, consequences, and what should be done to eliminate or mitigate the impact of it in our societies these days. It is against this background that the researcher seeks to determine the root cause and its effects on life, property and suggest ways of bringing peaceful resolution and settlement in the conflict prone areas in the Bawku municipality. 1.4 Objectives and Aims This study is about how chieftaincy conflicts can impact on the peace and socio-economic development and growth of businesses, Individuals, localities and countries. GENERAL OBJECTIVE The main objective is to examine the effects of conflicts on the growth and development of businesses in the Bawku Municipality as well as to make recommendations to policy makers on the way forward. SPECIFIC OBJECTIVES: To examine the effects of the chieftaincy conflict on economic activities (commerce, agriculture and industry). To examine the effects of the violence on livelihoods of people: seen in terms of the household poverty and employment opportunities. Governance in terms of revenue collection and expenditure on security. To determine the effects of the conflicts on health and education. To make recommendations on how the conflict can be resolved/managed peacefully on a permanent basis. 1.5 RESEARCH QUESTION Is chieftaincy a possible cause of the conflict in the bawku municipality? Does ownership of farmlands form part of the causes of the conflict in the municipality? 1.6 Significance of the Study My research on the effects of the Bawku chieftaincy conflict seeks to present empirical evidence that communal violence negatively affects the socio-economic development of local communities where they take place. This research will investigate the effects of the perennial violence in Bawku on the ability of the Municipal Assembly, the Local Council and the people of the area as a whole to mobilize resources to improve their well being. Apart from contributing to the knowledge base on effects of conflict, this research will provide a basis for policy making towards resolving and managing communal (ethnic and chieftaincy) conflicts 1.7 SCOPE AND LIMITATION OF THE STUDY: This research is expected to cover a period of one year and the associated limitations will be: Financial constraints/difficulties to be able to cover the required people and place. Inadequate and not straightforward answers or response from respondents is eminent or likely. Risky to venture into homes of respondents who were/are badly affected as it reminds them of their unfortunate and unplanned past memories. Answers/response will not be objective as respondents are/will be giving responses to favour their faction at the expense of the other faction. LITERATURE REVIEW 2. 0 Conflict has serious implications for development in countries affected by it, not Only in terms of the difficulty of implementing development policies, but also because it Leads to more poverty and lower growth, which are very serious root causes of conflict. Chronic conflicts continue to exist and to devastate the lives and economies of the People in the affected countries (and, to a lesser extent, on non-conflict-affected Countries). Naturally, this has created a precarious and unpredictable Environment that has not been conducive to fostering economic activities. Ongoing incidents of violence since 2008 seem to indicate similarly localised and minor disputes can become the basis for inter-group conflict on a larger scale. There are quite a few published works on the effects of conflicts on development in Ghana in general, but none on the effects of the Bawku chieftaincy conflict on the growth and development of businesses in the bawku Municipality. Recent literature on conflicts in Ghana has concentrated on the inter-ethnic and intra ethnic conflicts, since these are the dominant causes of conflicts in the country. A governance deficiencyà ¢Ã¢â€š ¬Ã… ¸ has been cited by some of these works as the cause of the recurring ethnic and communal violence in many parts of Ghana. (Akwetey, 1996: Lund, 2003: Jonsoon, 2007). Akwetey for instance argues that the absence of adequate democratic institutions is to blame for the recurring violence. Avenues for expressing interest and demands are non-existent. Christian Lund (2003), in an analysis of the longstanding ethno-political conflict between the Kusasi and the Mamprusi in Bawku, has argued that the politicisation of the Bawku conflict has affected government efforts to resolve the conflict. He asserts that a wide range of political- including party-political- and economic competition over chieftaincy, land, markets, names of places and other issues are cut to fit the ethnic distinction as conflicts over rights and prerogatives are rekindled accounting for the perennial violence. According to Julia Jonsson (2007), in a crises working on Traditional leadership and ethnic conflicts in Northern Ghana, asserts that the link between development and conflict in the region, exist on different practical levels: In the actors discourse in the socio-economic grievances they perceive as important in the causation of the conflict, through the effects of the fighting. She concludes that conflicts have disrupted the development of the region: destroyed its resources and development projects. Moreover, according to Kusimi, et al. (2006), in a paper on conflicts in Northern Ghana, have expressed the view that violent clashes in that part of the country affect economic development (destruction of farms and produce; prevents cultivation of lands; disrupt economic activities; discourage investment, labour flow and tourism) (see also Brukum, 2007). They also assert that conflicts in the region affect educational levels and divert governments attention from tackling pressing national issues relating to development, to restoring peace and order. In an article on the Guinea Fowl War of 1994 in the Northern Region, Emmy Toonen (1999) asserts that the conflict affected inter-ethnic co-operation in the region. Though the situation has improved, she claims that the Konkomba are still too afraid to enter Tamale, the regional capital where the Dagomba are the majority. She also claims that medical and educational facilities in the region were also affected. Security has a direct impact on the levels of investment. The violence associated with the chieftaincy conflict in the Bawku municipality affects investments in the different sectors of the municipal economy. I present the data on the effects, sector by sector. Agriculture: The violence resulting from the chieftaincy conflict adversely affects production, marketing and investment in agriculture, the dominant economic activity in the Bawku municipality. During outbreak of violence in the Municipality, farmers, especially those engaged in the cultivation of perishable foodstuffs such as watermelons and onions suffer heavy losses. Watermelons and onions are cultivated by irrigation and need constant tendering. When violence breaks out, most farmers are forced to abandon their crops because they fear being either attacked or because of the curfew instituted by the government/security apparatus. Furthermore, the transportation networks are also disrupted during violent clashes and farmers are unable to transport their foodstuff to the market places. These results in the foodstuffs getting rotten on the farms, the markets are deprived of these produce, scarcity sets in while their prices soar in the Municipality and the country as a whole. Commerce: Commerce, the second most important economic activity in the Bawku municipality, has also been negatively affected by the chieftaincy conflict. The officials from the Municipal Assembly asserted that, commercial activities as a whole is negatively affected by the perennial violence in the Municipality. The Assembly finds it very difficult to attract potential investors. Such activities as looting, robbery and the general lawlessness, which bring businesses to a standstill during violent clashes, scare away potential investors. The officials also cited the out migration of business people to other parts of the country as a direct effect of the perennial violence in the Municipality. Restricted movement, disruptions in businesses, the loss of capital through burning of houses and shops, and limited and selective business transactions (this means that people will normally not do business with members of the other side, this limits the market available to each trader) were all cited by various respondents as effects of the violence which are disincentives to business in the Municipality. Amidst these chaos and confusions and the general instability in the municipality pragmatic efforts have been put in place to take of the problem of which a few of those as have been kept in place by the central government and the leadership of the municipality are as seen below; A number of security measures have been put in place to respond to the perennial violence from the chieftaincy conflict and to reassure people to go about their normal daily lives without fear. Some of these measures include the stationing of a rapid response Air-Borne Force and a significantly larger police force in the Municipality. These measures mean that central government and the municipal authorities have had to channel more resources into maintaining the military and police presence. The Municipal Assembly spends GH ¢25037 every month on the Air-Borne Forces (source; municipal chief executive). In addition, the municipal assembly pays their communication, health, and fuel bills. Some other steps towards mitigating this conflict and its influence in our society, businesses and the world at as suggested by (source; Emmanuel bombande-executive member of wanepb) are as follows; (a) the need for effective dialogue by the various stakeholders; (b) the equal distribution of farmlands and other resources; (c) the rightful à ¢Ã¢â€š ¬Ã… ¾ownersà ¢Ã¢â€š ¬Ã… ¸ should be allowed to occupy the à ¢Ã¢â€š ¬Ã… ¾Skinà ¢Ã¢â€š ¬Ã… ¸; (d) political parties should stop interfering in the chieftaincy conflict; (e) the Regional House of Chiefs or the National House of Chiefs are the appropriate authorities to resolve the conflict; and (f) the need for education and understanding. Some pessimists who enjoy pleasure in war argue that the conflict cannot be resolved and suggested that the two sides should be allowed to fight until one faction emerges victorious and asserts dominance 3.0 RESEARCH METHODOLOGY INTRODUCTION The researcher will base his methodology on the following: Population of the area Sampling design Sampling techniques Data collection techniques Population of the area The estimated total population of Bawku Municipality is 205,849. Its population density is 169 persons per square kilometer. The population of the Municipality constitutes about twenty percent of the Upper East Regions population and 0.99 percent of the Nations population. The population is 20 percent urban and 80 percent rural. The dependency ratio is 1:1:25. About 55 percent of the population is outside the working group which constitutes a stress on the working population. Household sizes in the Municipality are fairly large like it pertains in most parts of the country. According to the 2000 population census report, on the average there are seven persons per household. Though these large households could mean availability of labour, it has some financial implication in terms of feeding, healthcare, education, clothing etc.The large number of household therefore constitute economic burden. POPULATION GROWTH RATE The population growth rate of the Municipality is 1.1. Sampling design The researcher will use an interview process and personal observation in gathering the information. Interview is a personal or one on one interaction between an interviewer and his targeted respondents on an issue where the interviewer has a predetermined motive whereas observation is the personal foresight of how things will go like. Sampling techniques The researcher will use simple random sampling where respondents from both factions will have equal chance of being selected for questioning. Data collection techniques The researcher will use the primary data in gathering his information. With the primary data, the researcher gathers his information through personal encounter and observation of the situation.

Othello’s Evil Side Essay -- Othello essays

Othello’s Evil Side  Ã‚        Ã‚   In the Bard of Avon’s tragic drama Othello there is a very disquieting dimension of the play; this is the evil dimension, which has such depth and intensity that it penetrates not only the mind but the body and soul of the audience.    Even the imagery in the drama has its evil aspect. Kenneth Muir, in the Introduction to William Shakespeare: Othello, explains the instances of diabolic imagery in the play as they relate to the infecting of the Moor by the ancient:    The same transference from Iago to Othello may be observed in what S. L. Bethell called diabolic imagery. He estimated that of the 64 images relating to hell and damnation – many of them are allusions rather than strict images – Iago has 18 and Othello 26. But 14 of Iago’s are used in the first two Acts, and 25 of Othello's in the last three. The theme of hell originates with Iago and is transferred to Othello only when Iago has succeeded in infecting the Moor with his jealousy. (22)    In his book of literary criticism, Shakespearean Tragedy, A. C. Bradley gives an in-depth analysis of the brand of evil which the ancient personifies:    Iago stands supreme among Shakespeare’s evil characters because the greatest intensity and subtlety of imagination have gone to his making, and because he illustrates in the most perfect combination the two facts concerning evil which seem to have impressed Shakespeare most. The first of these is the fact that perfectly sane people exist in whom fellow-feeling of any kind is so weak that an almost absolute egoism becomes possible to them, and with it those hard vices – such as ingratitude and cruelty – which to Shakespeare were far the worst. The second is that such evil is... ...oduction. William Shakespeare: Othello. New York: Penguin Books, 1968.    Shakespeare, William. Othello. In The Electric Shakespeare. Princeton University. 1996. http://www.eiu.edu/~multilit/studyabroad/othello/othello_all.html No line nos.    Wayne, Valerie. â€Å"Historical Differences: Misogyny and Othello.† The Matter of Difference: Materialist Feminist Criticism of Shakespeare. Ed Valerie Wayne. Ithaca, NY: Cornell University Press, 1991.    Wilson, H. S. On the Design of Shakespearean Tragedy. Canada: University of Toronto Press, 1957.    Wright, Louis B. and Virginia A. LaMar. â€Å"The Engaging Qualities of Othello.† Readings on The Tragedies. Ed. Clarice Swisher. San Diego: Greenhaven Press, 1996. Reprint from Introduction to The Tragedy of Othello, the Moor of Venice by William Shakespeare. N. p.: Simon and Schuster, Inc., 1957.      

Mbo In Russia :: essays research papers fc

Introduction  «The emphasis (of MBO) is on trying to predict and influence the future rather than on responding and reacting by the seat of the pants. It is also a ‘results-oriented’ philosophy of management, one of which emphasizes accomplishments and results. The focus is generally on change and on improving both individual and organizational effectiveness. » A successful implementation of MBO in any country requires a narrow examination of such elements as customs and traditions of that country, which give support to the application of MBO. History These elemets are higly influenced by the history.   Ã‚  Ã‚  Ã‚  Ã‚  Starting from the early centuries, Russian people got accustomed to live under the central rule when the tsar was the only decision-making body in the country. The communication between the rulers and ruled was flowing only one-way. The landlords, owning the farmers, set quotes to farmers without thinking whether they would be able to achieve them.   Ã‚  Ã‚  Ã‚  Ã‚  Afterwards, when the bolshewiks came to rule instead of the monarchy, the same thing happened. Working for a state enterprise, the employees didn’t have a chance to set objectives for their work they performed. The central planning department set quotes, by which all the organizations had to obey even if those planks were set too high to reach. Workers were responsible for reaching organizational goals no matter for at what costs, but on the other side the means by which they had to reach the organizational goals were predetermined by the central planning department. So, we can see that the word  «central », which  «disables » MBO, was quite common and used heavily thrughout the whole history of Russia. Nevertheless, I would say, there were some elements of MBO such as rewarding the employees when they exceeded the quotes set by the central department. Reward was very seldom material. Usually, you would have received a red flag for an excellent work, and your photo would have been printed in the organization’s newspaper. In addition to the rewards, people were working for a common purpose: to reach the communism. And each piece they had produced contributed to this goal. Anyway, this system of rewards worked; it was a good source of motivation although it was resting solely in the willigness of the employees to contribute to the process. Factors that influence management in Russia After we had examined the historical factors that influence the application of MBO, let’s come down to determine factors that influence overall management in Russia now.

Essay --

INTRODUCTION This case study is focused on the Shodhan House by Corbusier. Le Corbusier proved himself to be proficient in many areas. He had ambitious plans to create whole communities in his designs. He was even called the father of international style. As his style evolved, so did his buildings. The Shodhan House is an example of his purist design. There were many factors that contributed to the design of the Shodhan House, and many things had to be taken into consideration. Firstly, since the building was located in India, there were many considerations regarding weather that had to be taken into account. The owners wanted to stand out among their neighbours with an opulent design. Corbusier worked with this challenge by creating a double height ceiling and mezzanine which were design elements in many of the buildings in the area, but also exhibited the opulence of the owners. Corbusier made this building unique, but used elements common in many of his modernist designs. A flat roof (with ga rden), a parasol (to shade from the sun), an open facade, and the piers elevating the floor, and a ribbon window. These were the elements used in many of his designs and others. The main idea of the plan was to address the problem of glaring sunlight in the location of Ahmedabad. There were also considerations taken for the wind, climate and culture of the people in India. This is an example of regionalism in design. The structure of the design was centred around the iterations of the roof. Corbusier wanted the plan to be open more than anything else, and the structure was reiterated many times to achieve this. The structure of the building itself is very grid based. The structure was skeletal, allowing for changes to be made easily ... ...f the brise-soleiol on the faades and of the roof parasol, and moreover, in the hanging gardens swept by an orchestration of beneficent air currents. This plan recalls the ingenuity of the Villa Savoye of 1929-1930 at Poissy, placed here in a tropical and Indian setting." The designs of Le Corbusier revolutionized what people see as modern architecture and the Shodan House is a prime example. Often modern architecture is associated with a vast array of windows, many linear forms and post and beam architecture, all of which are present in this design. The geometrical shape of the Shodan House in conjunction with the lines created from the windows form an example of what is now regarded as modern architecture.

America’s Unjust Drug War Essay

It has been said that the definition of insanity is doing the same thing over and over, expecting a different result; this statement fairly sums up the War on Drugs. Let us imagine a scenario of two men, one of them has killed 4 young women in cold blood, for ‘sport’ as he likes to say; the other man was caught with a large amount of an illegal drug. In prison it would not be unlikely for these two to share a cell, but my question is why? Why are these drastically different crimes seen as being worthy of the same punishment? According to a pro-marijuana web site, studies show that in Dallas, Texas â€Å"Possession of two ounces or less of marijuana is punishable by up to 180 days in jail and a fine up to $2,000. Possession of greater than two ounces is punishable by up to one year in jail and a fine up to $4,000† (â€Å"We Be High†). It seems to defy logic, and upon observation of the facts, it does. The War on Drugs, specifically the prohibition of marijuana, is an unnecessary drain on our country’s tax dollars and law enforcement agencies. Some would even say that these agencies have no right to tell us what we as US Citizens can put into our bodies in the first place. Not only that, but the skepticism and prohibition of marijuana is keeping people from exploring the amazing potential that it has in the medicinal field. If marijuana were legalized properly, not only would these problems begin to work themselves out, but the illegal market and the problems and dangers caused by the prohibition of marijuana would cease to exist. One fact that few in our country would refute is that our prison system is over-crowded and has been stretched in recent years to accommodate all the recent â€Å"criminals.† Along with all those which have committed true crimes against society such as murder and robbery, there are now citizens that have been found guilty of possession or di stribution of drugs. â€Å"In 2003, there were a record 755,186 marijuana arrests in the US – greater than the number of arrests for all violent crimes combined† (Miron). â€Å"In 1998, 65% of those were convicted of drug possession in state court and 71% of those convicted of drug trafficking were sentenced to incarceration† (Chin 10). Not only is being arrested and incarcerated for simple possession of marijuana a set-back in one’s life, but finding a decent job for an ex-con is very difficult (Rachels and Rachels). It is hard to believe that violent criminals and Marijuana dealers belong in the same facility; it is a waste of money to feed and clothe them. A popular philosophical argument for the legalization of drugs, such as marijuana, is that the Government does not have the right to tell us what we can and cannot put into our own bodies. Nowhere in the constitution does it state that all drugs should be illegal and should result in major fines or even jail time if one was caught in possession of the drug. In fact, it seems to be implied that people should be able to have the freedom to self medicate as they want to. From the utilitarian perspective, people tend to be happier when they have freedom, and the current drug laws reduce that feeling of freedom and happiness. Therefore, the government should not put restrictions on drug use (Rachels and Rachels). If someone were to make the choice to smoke cannabis, that would be their choice and doing so would not directly harm anyone else. After all, isn’t America the ‘Land of the Free’? Our country is filled with propagandists who warp the facts and percentages of drugs that they want to be illegal just so the drug seems more dangerous than it actually is. In fact, some people’s every day activities are proven to be more harmful than marijuana such as smoking cigarettes, drinking alcohol, obesity, having unprotected sex, and riding motorcycles (Rachels and Rachels). A popular argument prohibitionists use for this is that illegal drug use harms the user in a different way (Rachels and Rachels). However, all of these activities listed harm the user in some sort of way and isn’t that what really matters in the end? There are some people out there that truly believe (and try to convince others) that marijuana is a deadly substance when in reality there have been no deaths whatsoever from marijuana use (Herer). However, there are around 106,000 deaths from legal drugs that you can buy at any convenience store, including aspirin. Studies show that aspirin is responsible for anywhere from 108-1,000 deaths per year. Animal studies have shown that it is virtually impossible to overdose on marijuana (Hager). This has led scientists to conclude that â€Å"the ratio of the amount of cannabinoids necessary to get a person intoxicated (i.e., stoned) relative to the amount necessary to kill them is 1 to 40,000† (Hager). So in other words, in order to over dose on marijuana, someone would have to ingest 40,000 times however much one would have to smoke in order to get the â€Å"high† feeling. If legal drugs and every day activities pose a bigger threat on society than marijuana, then why is cannabis illegal while these things remain legal? Rather than criminalizing those who possess and sell marijuana, some have proposed a radical reversal in policy; that the government actually legalize marijuana and tax it. By allowing the illegal importation of drugs into the United States (a multi-billion dollar a year industry), we are allowing all of the profit to go to people who do not deserve it such as â€Å"criminals, killers, and dangerous organizations† (â€Å"The Economic Benefits†). â€Å"Legalizing marijuana in the US would save about $7.7 billion per year in enforcement costs, and it would generate between $2.4 and $6.2 billion in tax revenue, depending on whether pot was taxed normally or at the higher rate at which alcohol and tobacco and are now taxed† (Rachels and Rachels). All of this can be accomplished by simply repealing the prohibition laws in effect. Along with preventing prison over-population and creating another form of tax revenue, the legalization of marijuana could create a new and simpler class of analgesic, which by definition is a medicine used to relieve pain. In an experiment conducted at the University of California Davis, there were three different groups given three different substances. One was given 7% marijuana, the second was given 3.5% marijuana, and the last was the control group, which was given a placebo. The results showed that both the 3.5% group and the 7% group both experienced equal amounts of analgesic produced. While the people in the study did feel a type of high in using the marijuana as a medicinal aid, the fact that both levels used created an equal amount of analgesic means that there may be a way around the high feeling. Further testing might be a good idea to see if an even lower dose could still create an analgesic without the side effects of the ‘high’ feeling (â€Å"Journal of Pain†). The study also explains that marijuana does not tranquilize the pain, but helps to create an emotional distance from it. In other words the person can still feel the pain but just does not care as much as he or she normally would. Making marijuana a legalized drug would also mean that it would become a more controlled and regulated drug as well. However, one major concern of making marijuana a legalized substance is the possibility of young adults in society being exposed to it. While this is a valid argument against legalizing marijuana, people must realize that the fact that marijuana is currently illegal actually provides teens more opportunities to make money by selling it to their friends (â€Å"Top Ten Reasons†). However, making marijuana a legalized, controlled, and regulated substance would make it much harder for teens to get a hold of the drug. Miron expresses this fact, saying that â€Å"unlike drug dealers, licensed vendors would ensure that teens could not purchase marijuana, just as states that have implemented strict controls on underage tobacco purchases have seen sales of tobacco to minors fall dramatically† (Miron). A group of 12th grade high school students were asked how legalizing marijuana would affect them personally. 61% said they would not use the drug even if it were legal to buy and use. 15% stated they would use it as often as they do now, and 1.5% say they would use it less often. Only 5.5% say they would use it more often than they do currently while nine percent said they would try it. Though these percentages may seem like large numbers, it only amounts to around 14% (about one in seven) of the students surveyed who stated they would either try marijuana or increase their use if marijuana were to become legalized (Johnston, O’Malley, Bachman, Schulenberg). Another problem with people having to resort to the black market for the purchase of cannabis is the danger that accompanies it. The illegal market that has been established because of the combination of the demand and illegality of marijuana brings much violence along with it. It is common for drug dealers at this day and age to carry around and use guns and knives as means of protection. This results in the possibility of something bad happening to the buyer or innocent bystanders. If cannabis were to become legalized and controlled, innocent people would not have to worry about the dangers that they are currently faced with in the purchasing of marijuana on the black market. This flawed policy should have been thrown out years ago like the failed Prohibition was in 1933, but societal propaganda and a more weary population has kept it securely in its place as one of the priorities of conservative Americans. Hopefully with time and a more intense barrage of facts and logic, this failed war can end and help usher in a new age of understanding and control over the substances we now outlaw. Until then the United States Government will continue to burn money and lock away undeserving citizens. Work Cited Barth Wilsey, Thomas Marcotte, Alexander Tsodikov, Jeanna Millman, Heather Bentley, Ben Gouaux and Scott Fishman. â€Å"A Randomized, Placebo-Controlled, Crossover Trial of Cannabis Cigarettes in Neuropathic Pain.† The Journal of Pain. Web. 28 April 2010. Chin, Gabriel J. â€Å"Race, the War on Drugs, and the Collateral Consequences of Criminal Conviction.† Journal of Gender, Race & Justice, Vol. 6, p. 253, 2002. University of Arizona. Web. 1 May 2010. Hager, Paul. â€Å"Marijuana Myths.† Web. 3 May 2010. Herer, Jack. â€Å"Hemp: Fuel Food Fiber Medicine Industry.† HempCar. Web. 3 May 2010. Johnston, L. D., O’Malley, P. M., Bachman, J. G., & Schulenberg, J. E. (2009). â€Å"Monitoring the Future national survey results on drug use, 1975–2008: Volume I, Secondary School Students.† The University of Michigan Institute for Social Research. PDF file. 30 April 2010. Miron, Jeffrey A. â€Å"The Budgetary Implications of Marijuana Prohibition.† Budgetary Implications of Marijuana Prohibition in the United States. Mar 28, 2008. Web. 1 May 2010. Rachels, James and Stuart Rachels. The Elements of Moral Philosophy. New York: Mcgraw-Hill, 2010. Print Rachels, James and Stuart Rachels. The Right Thing to Do. New York: Mcgraw-Hill, 2010. Print â€Å"The Economic Benefits of a Legal Regulated Marijuana Industry.† 2005. Web. 3 May 2010. â€Å"The Top Ten Reasons Marijuana Should be Legal.† AlterNet. High Times. Web. 3 May 2010. â€Å"WeBeHigh: A Traveler’s Guide to Getting High.† Web. 2 May 2010.

Dividend Policy

Stability of dividend policy. There may be three types of dividend policy (1)Strict or Conservative dividend Policy which envisages the retention of profits on the cost of dividend pay-out. It helps in strengthening the financial position of the company; (2) Lenient Dividend Policy which views the payment of dividend at the maximum rate possible taking in view the current earing of the company. Under such policy company retains the minimum possible earnings; (3)Stable Dividend Policy suggests a mid-way of the above two views. Under this policy, stable or almost stable rate of dividend is maintained.Company maintains reserves in the years of prosperity and uses them in paying dividend in lean year. If company follows stable dividend policy, the market price of tis shares shall be higher. There are reasons why investors prefer stable dividend policy. Main reasons are:- 1. Confidence Among Shareholders. A regular and stable dividend payment may serve to resolve uncertainty in the minds of shareholders. The company resorts not to cut the dividend rate even if its profits are lower. It maintains the rate of dividends by appropriating the funds from its reserves.Stable dividend presents a bright future of the company and thus gains the confidence of the shareholders an the goodwill of the company increases in the eyes of the general investors. 2. Income Conscious Investors. The second factor favoring stable dividend policy is that some investors are income conscious and favor a stable rate of dividend. They too, never favour an unstable rte of dividend. A Stable dividend policy may also satisfy such investors. 3. Stability in Market Price of Shares. Other things beings equal, the market price very with the rate of dividend the company declares on its equity shares.The value of shares of a company having a stable dividend policy fluctuates not widely even if the earnings of the company turn down. Thus, this policy buffer the market price of the stock. 4. Encouragement to Institutional Investors. A stable dividend policy attracts investments from institutional investors such institutional investors generally prepare a list of securities, mainly incorporating the securities of the companies having stable dividend policy in which they invest their surpluses or their long term funds such as pensions or provident funds etc.In this way, stability and regularity of dividends not only affects the market price of shares but also increases the general credit of the company that pays the company in the long run. Factors Affecting Dividend Policy A number of considerations affect the dividend policy of company. The major factors are 1. Stability of Earnings. The nature of business has an important bearing on the dividend policy. Industrial units having stability of earnings may formulate a more consistent dividend policy than those having an uneven flow of incomes because they can predict easily their savings and earnings.Usually, enterprises dealing in nec essities suffer less from oscillating earnings than those dealing in luxuries or fancy goods. 2. Age of corporation. Age of the corporation counts much in deciding the dividend policy. A newly established company may require much of its earnings for expansion and plant improvement and may adopt a rigid dividend policy while, on the other hand, an older company can formulate a clear cut and more consistent policy regarding dividend. 3. Liquidity of Funds.Availability of cash and sound financial position is also an important factor in dividend decisions. A dividend represents a cash outflow, the greater the funds and the liquidity of the firm the better the ability to pay dividend. The liquidity of a firm depends very much on the investment and financial decisions of the firm which in turn determines the rate of expansion and the manner of financing. If cash position is weak, stock dividend will be distributed and if cash position is good, company can distribute the cash dividend. 4. Extent of share Distribution.Nature of ownership also affects the dividend decisions. A closely held company is likely to get the assent of the shareholders for the suspension of dividend or for following a conservative dividend policy. On the other hand, a company having a good number of shareholders widely distributed and forming low or medium income group, would face a great difficulty in securing such assent because they will emphasise to distribute higher dividend. 5. Needs for Additional Capital. Companies retain a part of their profits for strengthening their financial position.The income may be conserved for meeting the increased requirements of working capital or of future expansion. Small companies usually find difficulties in raising finance for their needs of increased working capital for expansion programmes. They having no other alternative, use their ploughed back profits. Thus, such Companies distribute dividend at low rates and retain a big part of profits. 6. Trade Cycles. Business cycles also exercise influence upon dividend Policy. Dividend policy is adjusted according to the business oscillations.During the boom, prudent management creates food reserves for contingencies which follow the inflationary period. Higher rates of dividend can be used as a tool for marketing the securities in an otherwise depressed market. The financial solvency can be proved and maintained by the companies in dull years if the adequate reserves have been built up. 7. Government Policies. The earnings capacity of the enterprise is widely affected by the change in fiscal, industrial, labour, control and other government policies.Sometimes government restricts the distribution of dividend beyond a certain percentage in a particular industry or in all spheres of business activity as was done in emergency. The dividend policy has to be modified or formulated accordingly in those enterprises. 8. Taxation Policy. High taxation reduces the earnings of he companies and c onsequently the rate of dividend is lowered down. Sometimes government levies dividend-tax of distribution of dividend beyond a certain limit. It also affects the capital formation. N India, dividends beyond 10 % of aid-up capital are subject to dividend tax at 7. 5 %. 9. Legal Requirements. In deciding on the dividend, the directors take the legal requirements too into consideration. In order to protect the interests of creditors an outsiders, the companies Act 1956 prescribes certain guidelines in respect of the distribution and payment of dividend. Moreover, a company is required to provide for depreciation on its fixed and tangible assets before declaring dividend on shares. It proposes that Dividend should not be distributed out of capita, in any case.Likewise, contractual obligation should also be fulfilled, for example, payment of dividend on preference shares in priority over ordinary dividend. 10. Past dividend Rates. While formulating the Dividend Policy, the directors mus t keep in mind the dividend paid in past years. The current rate should be around the average past rat. If it has been abnormally increased the shares will be subjected to speculation. In a new concern, the company should consider the dividend policy of the rival organisation. 11. Ability to Borrow.Well established and large firms have better access to the capital market than the new Companies and may borrow funds from the external sources if there arises any need. Such Companies may have a better dividend pay-out ratio. Whereas smaller firms have to depend on their internal sources and therefore they will have to built up good reserves by reducing the dividend pay out ratio for meeting any obligation requiring heavy funds. 12. Policy of Control. Policy of control is another determining factor is so far as dividends are concerned.If the directors want to have control on company, they would not like to add new shareholders and therefore, declare a dividend at low rate. Because by add ing new shareholders they fear dilution of control and diversion of policies and programmes of the existing management. So they prefer to meet the needs through retained earing. If the directors do not bother about the control of affairs they will follow a liberal dividend policy. Thus control is an influencing factor in framing the dividend policy. 13. Repayments of Loan. A company having loan indebtedness are vowed to a igh rate of retention earnings, unless one other arrangements are made for the redemption of debt on maturity. It will naturally lower down the rate of dividend. Sometimes, the lenders (mostly institutional lenders) put restrictions on the dividend distribution still such time their loan is outstanding. Formal loan contracts generally provide a certain standard of liquidity and solvency to be maintained. Management is bound to hour such restrictions and to limit the rate of dividend payout. 14. Time for Payment of Dividend. When should the dividend be paid is anoth er consideration.Payment of dividend means outflow of cash. It is, therefore, desirable to distribute dividend at a time when is least needed by the company because there are peak times as well as lean periods of expenditure. Wise management should plan the payment of dividend in such a manner that there is no cash outflow at a time when the undertaking is already in need of urgent finances. 15. Regularity and stability in Dividend Payment. Dividends should be paid regularly because each investor is interested in the regular payment of dividend.The management should, inspite of regular payment of dividend, consider that the rate of dividend should be all the most constant. For this purpose sometimes companies maintain dividend Meaning and Types of Dividend The profits of a company when made available for the distribution among its shareholders are called dividend. The dividend may be as a fixed annual percentage of paid up capital as in the case of preference shares or it may vary a ccording to the prosperity of the company as in the case of ordinary shares.The decision for distributing or paying a dividend is taken in the meeting of Board of Directors and in confirmed generally by the annual general meeting of the shareholders. The dividend can be declared only out of divisible profits, remained after setting of all the expenses, transferring the reasonable amount of profit to reserve fund and providing for depreciation and taxation for the year. It means if in any year, there is not profits, no dividend shall be distributed that year.The shareholders cannot insist upon the company to declared the dividend. It is solely the discretion of the directors. Aunt hinted that the dividend was an income of the owners of the corporation which they received in the capacity of the owner. Distribution of dividend involves reduction of current assets (cash) but not always. Stock dividend or bonus shares is an exception to it Basic Issues Involved in Dividend Policy There a re certain basic questions which are Involved in determining the sound dividend policy. Such questions are:- 1.Cost of Capital. Cost of capital is one of the considerations for taking a decision whether to distribute dividend or not. As decision making tool, the Board calculates the ratio of rupee profits that the business expects to earn (Ra) to the rupee, profits that the shareholders can expect to earn outside (Rc) i. e. , Rs. /Rc. If the ratio is less than one, it is a signal to distribute dividend and if it is more than one, the distribution of dividend will be discontinued. 2. realisation of Objectives. The main objectives of the firm i. e. maximization of wealth for shareholders including there current rate of dividend-should also be aimed at in formulating the dividend policy. 3. Shareholders' Group. Dividend policy affects the shareholders group. It means a company with low pay-out an heavy reinvestment attracts shareholders interested in capital gains rather than n current income whereas a company with high dividend pay-out attracts those who are interested in current income. 4. Release of Corporate earnings. Dividend distribution is taking as a mens of distributing unused funds.Dividend policy affects the shareholders wealth by varying its dividend pay = out ratio. In Dividend policy, the financial manager decides whether to release Corporate earnings or not. These are certain basic issues Involved in formulating a Dividend policy. Dividend policy to a large extent affects the financial structure, the flow of funds, liquidity, stock prices and in the last shareholders' satisfaction. That is why management exercises a high degree of judgment establishing a sound dividend pattern. Dividend Policy Dividend Policy Vinod Kothari Corporations earn profits – they do not distribute all of it. Part of profit is ploughed back or held back as retained earnings. Part of the profit gets distributed to the shareholders. The part that is distributed is the dividend. The ratio of the actual distribution or dividend, and the total distributable profits, is called dividend payout ratio. How much of its profits should a corporation distribute? There are several considerations that apply in answering this question. Hence, companies have to frame and work on a definitive policy of dividend payout ratio.Of course, no corporate management can afford to stick to a fixed dividend payout ratio year after year – neither is such fixity of dividend payout ratio required or expected. However, management has to broadly decide its policy on its broad attitude towards distribution – liberal dividend payout ratio, or conservative dividend payout ratio, etc. If one were to ask this quest ion in context of debt sources of capital – for example, how much interest should a corporation pay to its bankers, the answer is straight forward. As interest paid is the cost of the borrowing, the lesser the interest a corporation pays, the better it is.Besides, companies do not have choice on paying of interest to lenders – as the rate of interest is contractually fixed. Rate of dividends may be fixed in case of preference shares too. However, in case of equity shares, there is no fixed rate of dividends. It cannot be said that the dividend paid is the cost of equity capital – if that was the case, corporations may try to minimize the dividend distribution. Hence, the following points emerge as regards the dividend distribution policy: †¢ The cost of equity is defined as the rate at which the corporation must earn on its equity to keep the market price of the equity shares constant.Let us further suppose that the market price of the shares is obtained by capitalizing the earnings of the corporation at a certain capitalization rate – the capitalization rate itself depending on the riskiness or beta of the industry. Suppose the corporation does not earn any profit. Shareholders were expecting a certain rate of return on their shareholding – hence, share prices will fall at the expected return on equity. On the other hand, if just the expected rate of return is earned by the corporation, the price of equity shares remains constant if the earnings are entirely distributed, and xactly grows by the expected rate of return if the earnings are entirely retained. The above discussion leads to the conclusion that the cost of equity is not the dividends but the return on equity – hence, a corporation cannot work on the objective of minimizing dividends. Equity shareholders are the owners of the corporation – hence, retained earnings ultimately belong to the shareholders. Supposing a company earns return on equity o f 10%, and retains the whole of it, the retained earnings increase the net asset value (NAV) of the equity shares exactly at the rate of 10%.Assuming there are no other factors affecting the equity price of the company, the market price of †¢ †¢ †¢ †¢ †¢ †¢ the shares should exactly go up by 10% commensurate with the increase in the NAV of the shares. That is to say, shareholders gain by way of appreciation in market price to the extent of 10%. On the other hand, if the company distributes the entire earnings, shareholders earn a cash return of 10%, and there is no impact on the NAV of the shares, hence, the same should remain unchanged.Therefore, in both the cases, the shareholders earned a return of 10% – in the first case, by way of growth or capital appreciation, and in the second case, by way of income. In other words, merely because the corporation is not distributing profits does not mean it is depriving shareholders of the rate of return on equity. The above two points reflect the indifference, sometimes referred to as irrelevance of dividend policy (see Modigliani and Miller approach later in this Chapter) from the viewpoint of either the company or its shareholders. Supposing the corporation decides to retain the entire earning.Obviously, the corporation would earn on this retained profit at the applicable return on equity. Note that the return on equity is relevant, as retained earnings would be leveraged and would, therefore, benefit from the impact of leverage too. On the other hand, if the corporation were to distribute the entire profits, shareholders reinvest/consume the income so distributed at their own rate of return. Hence, it may be contended that whether the company retains or distributes the earnings depends on whose reinvestment rate is higher – that of the company or that of the shareholders?Quite clearly, the rate of reinvestment in the hands of the corporation is higher than that in the han ds of the shareholders, (a) because of leverage which shareholders may not be able to garner; and (b) intuitively, that is the very reason for the shareholders to invest in the company in the first place. This argument generally favors retention of profits by the company rather than distribution. [As we discuss later, this argument is the basis of the Walter formula] As a counter argument to this, it is contended that shareholders do not need growth only – they need current income too.Many investors may sustain their livelihood on dividend earnings. Of what avail is the increase in market value of shares, if I need cash to spend for my expenses? However, in the age of demat securities and liquid stock markets, growth and income are almost equivalent. For example, if I am holding equity shares worth $ 100, which appreciate in value to $ 110 due to retention, I can dispose off 10/110% of my shareholding, earn cash equal to $ 10, and still be left with stock worth $ 100, which i s exactly the same as earning cash dividend of $ 10 with no retention at all.While the above argument may point to indifference between growth and income, the reality of the marketplace is that investors do have varying preferences for growth and income. There are investors who are growth-inclined, and there are those who are income-inclined. Majority of retail investors insist on balance between growth and income, as they do not see an exact equivalence between appreciation in market value and current cashflows. Hence, the conclusion that emerges is that companies do have to strike a balance between shareholders’ need for current income, and growth opportunities by retained earnings.Hence, dividend policy still remains an important consideration. While making the above points, there are certain special points that affect particular situation that need to be borne in mind: †¢ Company’s reinvestment rate lower than that of shareholders: Sometimes, there are compani es that do not have significant reinvestment opportunities. More precisely, we say the reinvestment rate of the company is lesser than the reinvestment rate of shareholders. In such cases, obviously, it is better to pay earnings out than to retain them.As the classic theories of impact of dividends on market value of a share (see Walter’s formula below) suggest, or what is anyway intuitively understandable, retention of earnings makes sense only where the reinvestment rate of the company is higher than that of shareholders. †¢ Tax disparities between current dividends and growth: In our discussion on indifference between current dividends and share price appreciation, we have assumed that taxes do not play a spoilsport. In fact, quite often, they do.For example, if a company distributes dividends, the same may be taxed (either as income in the hands of shareholders, or by way of tax on distribution – like dividend distribution tax in India). Alternatively, if the shareholders have a capital appreciation, which they encash by partial liquidation of holdings, shareholders have a capital gain. Taxability of a capital gain may not be the same as that of dividends. Hence, taxes may differentiate between current dividends and share price appreciation. Shares with fixed returns: Needless to say, there is no relevance of dividend policy where dividends are payable as per terms of issue – for example, in case of preference shares. †¢ Entities requiring minimum distribution: There might also be situations where entities are required to do a minimum distribution under regulations. For example, in case of real estate investment trusts, a certain minimum distribution is required to attain tax transparent status. There might be other regulations or regulatory motivations for companies to distribute their profits.These regulations may impact our discussion on relevance of dividend policy on price of equity shares. †¢ Unlisted companies: Fi nally, one must also note that discussion above on the parity between distributed earnings and retained earnings – the latter leading to market price appreciation – will have relevance only in case of listed firms. Technically speaking, in case of unlisted firms too, retained earnings belong to the shareholders, as shareholders after all are the owners of the residual wealth of the company. However, that residual ownership may be a myth as companies do not istribute assets except in event of winding, and winding up is a rarity. The discussion in this chapter on dividend policy, as far is relates to market price of equity shares, is keeping in mind listed firms. In case of unlisted firms, classical models such as Walter’s model or Gordon Growth model discussed below may hold relevance than market price-based models. From dividends to market value of equity: Dividend capitalisation approach: If, for a second, we were to ignore the stock market capitalisation of a company, what is the market value of an equity share?Say, we take the case of an unlisted company. We know from our discussion on present values that the value of any asset is the value of its cashflows. What is the cashflow a shareholder gets from his equity? As long as the company is not wound up, and the shareholder does not sell the stock, the only cashflow of the shareholder is the dividends he gets. It is easy to understand that if we are not envisaging either a sale of the shares or a liquidation of the company, then the stream of dividends may be assumed to continue in perpetuity. Hence, VE = ? ? (1 + K i =1 Di E )i (1)Where VE : Value of equity K E : Cost of equity Di : dividends in paid in year i Equation (1) is easy to understand. Shareholders continue to receive dividends year after year, and these dividends are discounted by the shareholders at the cost of equity, that is, the required return of the shareholders. If the stream of dividends is constant, then Equation (1) is actually a geometric progression. We can manipulate Equation (1) either to compute the price of equity, if the constant stream of dividends is known, or to compute the cost of equity, if the dividend rate and market price of the shares is known.Applying the geographical progression formula for adding up perpetual progressions, assuming constant dividends equal to D, Equation (1) above becomes: VE = = D (1 + K E ) ? (1 ? 1 ) 1+ KE (2) D KE Example: Supposing a company the nominal value equity were $ 100, and the dividends at the rate of 10 % were $ 10, if the cost of equity is 8%, then the market price of the shares will given by 10/8%, or $ 125. Incorporating growth in dividends:In our over-simplified example above, we have taken dividends to be constant. It would be unusual to expect that dividends will be constant, particularly where the company is not distributing all its earnings. That is to say, with the retained earnings, the company has increasing profits in successive ye ars, and therefore, it continues to distribute more. If dividends grow at a certain compounded rate, say g, then, Equation (2) above becomes: VE = D (1 + g ) (1 + K E ) = ? (1 ? 1+ g ) 1+ KE (3) D (1 + g ) KE ? gNote that we have assumed here that even the first dividend will have grown at g rate, that is, the historical dividend has been D, but we are expecting the current year’s dividend to have increased at the constant rate. If we assume the current year’s dividend will not show the growth, and the growth will come from the forthcoming year, then we can remove (1+g) in the numerator above. The formula as it stands is also referred as Gordon’s dividend growth formula, discussed below. Example: Supposing a company the nominal value equity were $ 100, and the dividends at the rate of 10 % were historically $10.Going forward, we expect that the dividends will continue to grow at a rate of 5% per annum. If the cost of equity is 8%, what is the market value? We pu t the numbers in the formula and get a value of $350. Note that we can also test the valuation above on Excel. If we take sufficient number of dividends, say, 1000, successively growing at the rate of 5%, and we discount the entire stream at 8%, we will get the same value. Example: Supposing a company the nominal value equity were $ 100, and the dividends at the rate of 10 % were historically $10.Going forward, we expect that the dividends will continue to grow at a rate of 12% per annum. If the cost of equity is 8%, what is the market value? This is a case where the growth in dividends is higher than the discounting rate. The growth in dividends is a multiplier; the discounting rate is a divisor. If the multiplier is higher than the divisor, then the present value of each successive dividend will be higher than the previous one, and hence a perpetual series will have infinite value. There is yet another notable point – the growth rate g above may be also be visualised as the appreciation in the market value of the share.That is, shareholders are rewarded in form of current earnings as well as growth in the value of their investment. Dividend-based equity models: Walter Approach: The Walter formula belongs to James E Walter, and is based on a simple argument that where the reinvestment rate, that is, rate of return that the company may earn on retained earnings, is higher than cost of equity (which, as we have discussed before, the expected returns of the shareholders, or rate of return of the shareholders), then, it would be in the interest of the firm to retain the earnings.If the company’s reinvestment rate on retained earnings is the less than shareholders’ rate of return, the company should not retain earnings. If the two rates are the same, then the company should be indifferent between retaining and distributing. The Walter formula is based on a simple analysis that the market value of equity is the capitalisation of the current ear nings and growth in price (g in our formula in equation 3 above). Hence, the basis of Walter formula is: VE = D +g KE (4) Here, the growth factor occurs because the rate of return on retention done by the company is higher than the cost of equity.That is to say, the company continues to earn at r rate of return on the retained earnings, and this is what causes growth g. Hence, g= r (E-D)/ K E Inserting equations (5) into (4), we have VE = (5) D KE + r (E – D)/K E KE (6) Where r = rate of return on retained earnings of the company E = earnings rate D = dividend rate Example: Supposing a company the nominal value equity is $ 100, and the dividends at the rate of 10 % are $10. Supposing the company earns at the rate of 12% , what is the market value of equity if the the cost of equity is 8%?The market value of the share comes to $ 162. 50. This is explainable easily. As the company is earning $12, and distributing $10, it retains $ 2 every year, on which it earns at 12%. The cap italised value of 0. 24 at 8% will be the expected growth. Therefore, the sustainable earnings of the shareholders will be $ 10 +3, which, when capitalised at 8%, produces the value $ 162. 50. Of course, the key learning from Walter’s approach is not what the market value of equity is, but how the market value of equity can be maximised by following a proper distribution policy.For instance, in the present case, it is not advisable for the company to distribute any dividend at all, as the company earns more than the shareholders’ opportunity rate. If the company was not to distribute anything, the market value of the share may increase to $ 225. Gordon growth model: Gordon’s growth model is simply Equation (3) above, that is, VE = D (1 + g ) KE ? g This is, as we have seen above, derived from perpetual sum of a geometric progression, under the assumption that the growth rate is less than the cost of equity. Modigliani and Miller approach:Franco Modigliani was aw arded Nobel prize in 1985 and Merton Miller in 1990 (along with Markowitz and Sharpe). M&M have theorised on the irrelevance of the capital structure, and a corollary, irrelevance of the dividend payout ratio to the value of the firm. Like several financial theories, M&M hypothesis is based on the argument of efficient capital markets. In addition, we believe that a firm has two options: (a) It retains earnings and finances its new investment plans with such retained earnings; (b) It distributes dividends, and finances its new investment plans by issuing new shares.The intuitive background of the M&M approach is extremely simple, and in fact, almost selfexplanatory. It is based on the following propositions: †¢ Why would a company retain earnings? Only tenable reason is that the company has investment opportunities. If the company does not retain earnings, where does it finance those investment opportunities from? We may assume a debt issuance, but then as M&M otherwise propoun ded irrelevance of the capital structure, they see a parity between debt and equity, and hence, it does not make a difference whether the new investments are funded by equity or debt.So, let us assume that the new growth plans are funded by equity. Shareholders price the equity shares of the company to take into account the earnings and the retentions of the company. If the company distributes dividends, the shareholders take into account that fact in pricing of the shares; if the company does not distribute dividends, that is also reflected in the pricing of the shares. If dividends are distributed, the financing needs of the company will be funded by issuing new shares. The issue price of these shares will compensate for the fact that the dividends have been distributed.That is to say, the market price of the share will remain unaffected by whether the dividends have been distributed or not. †¢ †¢ Let us take a one year time horizon to understand the indifference argumen t of M&M. We use the following new notations: Po P1 D1 n m I X : Price of the equity share at point 0 : Price of the equity share at point 1, that is, end of period 1 : Dividend per share being paid in period 1 : existing number of issued shares : new shares to be issued : Investment needs of the company in year 1 : Profits of the firm year in 1 The relation between the price at the beginning of the year (Po), and that at he end of the year (P1) is the simple question of discounted value at the shareholders’ expected rate of return (KE). Hence, Po = (P1 +D1) / (1+(KE) (7) Equation (7) is quite easy to understand. Shareholders have got a cash return equal to D1 at the end of Year 1, and the share is still worth P1. Hence, discounted at the cost of equity, the discounted value is the price at the beginning of the period. Alternatively, it may also be stated that the P1 = (P0 )* (1+(KE) – D1 (8) That is to say, if the company declares dividends, the price the end of year 1 comes down to the effect of the distribution.Equation (7) can be manipulated. By multiplying both sides by n, and adding a self-cancelling number m, we may write (7) as follows: nPo = [(n+m)P1 -mP1 +nD1)]/(1+(KE) (9) Note that we have multiplied both sides by n, and the added number m along with m is cancelled by deducting the same outside the brackets. mP1 represents the new share capital raised by the company to finance its investment needs. How much share capital would the company need to raise? Given the investment needs I and the profits X, the new capital issued will be given by the following: mP1 = I – (X – nD1) (10)Again, this is not difficult to understand, as the total amount of profit of the company is X, and the total amount distributed as dividends is nD1. Hence, the company is left with a funding gap as shown by equation (10). If the value of mP1 is substituted in Equation (9), we have the following: nPo = [(n+m)P1 – {I – (X – nD1)} +nD1)]/(1+(KE) (11) As nD1 would cancel out, we will be left with the following: nPo = [(n+m)P1 – I + X] /(1+(KE) (12) Since nPo is total value of the stock at point 0, it is seen from Equation (12) that dividend is not a factor in that valuation at all.