Dementia and Alzheimer's Disease Essay Example | Topics and Well Written Essays - 2250 words

Dementia and Alzheimer's Disease - Essay Example This brain and neuron disorder seriously affects a person's ability to carry out daily activities. This condition, called Dementia, which initially affects the parts of the brain that control thought, memory, and language, is taken to be a route map of the progression of Alzheimer's. From a medical perspective, the first signs of Alzheimer's disease are detectable from the lifestyle of affected individuals. However, the simplicity of these symptoms often result in them being ignored or dismissed as natural signs of old age. One of the earliest, yet most unnoticed symptoms of Alzheimer's disease is short-term memory loss. Very often, the patient appears to have skipped memories pertaining to a generation, or a similar time span, which essentially involves the present. Very recent incidents may be forgotten, while those which happened a relatively long time ago are vividly remembered, and oft quoted. Also, individuals and recent acquaintances may be completely forgotten, and may even be mistaken to be some individual the patient had acquaintance with, in the past. One hypothetical, yet practically very common, instance worth referring to is a case where a patient has no memory of his grandson's existence. On seeing the grandson, he may be mistaken to be the patient's son, and the patient may even make attempts to communicate with him in that context. Further symptoms may include problems with writing and speaking. The patient may forget simple words and make statements that don't make any sense. Familiar and routine tasks may prove difficult as time progresses. Common instruments used in daily life such as pens, towels, etc may appear meaningless to the patient. The patient may begin to dress inappropriately, completely forget to keep appointments and may even forget regularly used phone numbers. This is said to be a loss of the power of "Abstract Thinking" (Guide to Long Term Care.com). Also, repeated and unexplained mood swings and behavioural changes, quite contrary to the normal character are observed in such patients. As the disease progresses in the individual there may be a marked deterioration of control over his motor neurons, resulting in loss of mobility to considerable extents. The patient may be unable to feed himself, and incontinence may set in. 'Once identified, the average lifespan of patients living with Alzheimer's disease is approximately 7-10 years, although cases are known where reaching the final stage occurs within 4-5 years or at the other extreme they may survive up to 21 years'(Wikipedia, 2007a). Diagnosis and Clinical Perspectives Granted that the primary indications of a possibility of Alzheimer's disease in an individual are based on observations of the daily activities of the individual, the fact remains that it is primarily a clinical condition requiring diagnosis by qualified medical practitioners. Such a study shall be based on characteristic neuropsychological features and it must be ensured that no deferential diagnosis shall exist, considering the gravity of the possible result. Such a determination of the neurological feature shall consider the patient's medical history and clinical observation, while any neuropsychological evaluation will include testing and assessment of intellectual functioning over a series of weeks or

The Case of Donald Rumsfeld and Prisoner Abuse at Abu Ghraib Essay Example for Free

The Case of Donald Rumsfeld and Prisoner Abuse at Abu Ghraib Essay The report on the case of Donald Rumsfeld starts off with Rumsfeld’s hearing (May 7, 2004) with the Senate Armed Services Committees. His response to the question of whether he should resign or not; is â€Å"If I felt I could not be effective, I’d resign in a minute. † The report also gives an account of General Antonio Taguba’s investigation results of Abu Ghraib. He gives a report on the following: Conditions, training, Standard Operating procedures, prison crowding, culture and accountability. In Federalist 41 Madison notes in the Constitution two specific concerns about government power: total power of government over the people and the allocation of power among the entities of government. He states that he does not want unnecessary or improper power given to government be it state or federal. In the case of Donald Rumsfeld and the abuse of prisoners at Abu Ghraib; the soldiers believe they have the power to inflict harsh techniques on the detainees in order to get them to talk. This article will analyze General Taguba’s report. I will examine the problems in this case through the use of theories. CBS’s Sixty Minutes II releases a video with images of torture and abuse; the prisoners endure at the hands of the American soldiers. The video displays naked prisoners crawling on the floor. Some forced into sexual positions; while others are naked and blooded. The media brings this to public awareness worldwide through internet, television and radio shows. Bush and his administration allege that they have no knowledge of the problems or the allegations prior to the CBS airing to television audiences. The Americans and the Arab people express their concern with questions. Who should be accountable for the guards’ actions? Are they instructed to abide by the Geneva Convention? What signals are they receiving from superiors that this behavior is tolerable? DeVreese suggest that how the media frames issues affects how the public perceive the issues. This involves looking at an issue from different perspectives (DeVreese 2004, 36-52). The Taguba Report Major Antonio Taguba is given a directive to investigate the allegations of abuse, the failure in accountability and the escapes. In March 2004, Major Taguba reports that there is a problem in leadership. He confirms the allegations of abuse and disorder in the prison. The Geneva Convention The United States and Iraq is in agreement to the Geneva Convention. Therefore they have obligations to: (a) Treat everyone humanely, regardless of sex, beliefs, race, or status (b) Take no hostages (c) Not engage in treatment of humiliating or degrading (d) Impose executions without court approval While Military officials and most members of Congress, the public and Secretary Rumsfeld are in agreement that the United States Army is in violation of the Geneva Convention at Abu Ghraib, what is uncertain is the question what encourage the actions? Conditions at Abu Ghraib Although (BK) Janis Karpinski is commander of the 800th Military Police Brigade; Taguba’s reports that the brigade is lacking leadership and operational integrity. Taguba findings suggest that top military brass, officials in the Department of Defense or the Bush Administration is closing their eyes or encourage the soldiers’ behavior. Mosher believes that the public sector must maintain a higher standard of integrity and professionalism. (Mosher 1938, 332-342). Training Taguba learns that from the MP personnel to the 320th MP Battalion and the 372nd MP Company has very little to no training or instruction in neither detention/internee operation nor the rules of the Geneva Convention. Although the soldiers say they are trained regularly, there is no documentation to support their statements. Box’s article Running Government Like a Business, shrinking government by contracting out services or returning them to the private sector on the premise that the private sector s more efficient or the assertion that the public sector should simply be smaller(Box 1999,19-43). by the government trying to save money by contracting out; contracting companies are trying to cut cost. Training their workers would cost more money Standard Operating Procedures Within the 800th MP Brigade and its subordinate units there is a lack of knowledge, implementation of the standard operating rules and procedures. Each facility detention, compound, encampment and shift for handling of detainees and criminal prisoner’s procedures differs. There is a need for a check and balance system to maintain compliance. Coopers gives a primary example of accountability problem in war privatization, i. e. , the legal status of contractors. Neither civilian nor military laws cover inappropriate contractor behavior such as torture or unnecessary force resulting in loss of non-combatant life. This is particularly problematic in the Iraq situation where contractors are exempt from local law and they are not bound by U. S. civilian or military law. In some contracts, but not all, contractors who commit a felony are subject to U. S. urisdiction; however, this law does not clearly apply to subcontractors or to third-party nationals and the Pentagon has not written the implementation regulations for the law. In addition, because the contractor has control over day-to-day information concerning the behavior of the employees working in another country, it could be difficult for government prosecutors to secure evidence necessary to investigate an allegation of wrong doing. This is why Tagua saw a lack of training and accountability. The U. S. relieves the responsibility up to the Contracting Companies to train their workers. Prison Crowding Taguba’s report shows the overcrowding of the prisoners is one of the reasons for the poor living condition. The overcrowding is causing identification problem among the leaders in the detainee population who may be organizing the detainee’s escapes and riots. The unrest and overcrowding is due to the lengthy screening and processing and release of detainees who should not be in custody. There are three categories for releasing detainees. (1. ) A detainee can be release if it is determine that detaining them is no longer warrant. 2) If it is determine that a criminal detainee has not part of a terrorist group and that they will not be a danger to society. (3) Detainees accused of committing a crime against the coalition can be release if it is determine that they are no longer a threat to the Coalition Forces. The Detainee Release Authority grants recommendation for releases, but MG Fast regularly denies the board’s recommendations. Culture Operational Journals at different compounds and the 302th Battalion TOC reveal a lot of unprofessional documentations and no chain of command to review them. US civilian contract personnel are not supervising properly. The contractors have open access to the detainees. Accountability The detainees can move from location to another and not be accounted for; due to falsification of process sheets. BK Karpinski reports her findings and recommendations with follow ups and changes regarding the escapes and accountability lapses. Taguba reports that if Karpinski is accurate then the abuse, escapes and accountability lapses may be prevented. Prisoners of War, Terrorists and Enemy Combatants The new era of foreign policy and the promise to define the Bush presidency is a result of the attacks on the World Trade Center and the Pentagon on September 11, 2001. Bush promise to find and punish the terrorists. The need for the Intelligence to pursue and prevent the terrorist from further attacks on the U. S. puts pressure on the interrogators to accomplish the mission. This relates to Eshbaugh-Soha and Peakes argument that chief executives are rather powerful in setting the policy agenda because Congress, the news media, and the public look to the president for this fact. In order for the president to set the policy agenda, he must command the medias attention so that the media is able to provide information to the public in regards to the presidents initiatives. The best way to do this is in the form of speeches or press conferences, which Bush did. | Because the Taliban and AlQaeda fighters are not under the Geneva Convention; the Administration recommendation to Donald Rumsfeld is to approve 35 full range techniques. Only nine are for exceptional use. the Military lawyer express how that the beginning of these recommendations will cause their ivilian counterparts within the Department of Defense will give approval for getting information about terrorist activity as top priority. Rumsfeld is given a memo by the same Administration warning him of a possible backlash if the nine techniques be used. The Administration also says that if the treatment becomes public, exaggeration and distorting by the media. The media will undermine the support for the war on terrorism. The U. S. officials will be facing human rights prosecution abroad and will be a ploy to have a reason for mistreatment of captured American Soldiers. Weeks later Rumsfeld denies 11 of the 35 techniques. The Media The Financial Times report accusations that official in the Bush Administration set a precedent for abuse and torture. The report reveals congress accusing Bush Administration of sanctioning torture by preparing legal documents that states harsh treatment of detainees is permissible under the United States and International Laws. Financial Times also reports the Statement of U. S. Military Lawyers regarding how they felt shut out of the prison policy. Some of the soldiers say that they are getting mix messages about the rules on prisoners. De Vrees says that news framing involves seeing the issue from either a conflict or an economic consequences perspective He suggests that this framing process determines whether the voter sees the issue as a conflict or economic issue. Here the Financial Times frame the report from a conflict. The government is seen as the ones who gave directives to abuse the detainees. This can hurt the president next election. Bilder and Vagts believes that government attorneys obligations greater than those of private sector attorneys. The client is the entire agency, the entire U. S. government, and the American public. An important difference between the government and private attorney is that the government attorneys advice does not have definitive judicial review. Because of the lack of a safety net in decision making process; there is a greater burden on the government attorney. The Military Lawyers shares with Financial Times how they felt left out of the prison making policy. In Conclusion Although the soldiers were discipline for their participation in the detainee’s abuse; U.  S. government is responsible for the detainees suffering. The U. S. soldiers should have kept their oath and agreement to abide by the Geneva Convention. Donald Rumsfeld did the right thing by resigning. Wilson theory on authority, he suggests that power and discretion must accompany responsibility and that power and discretion need to be provided to the public administrator. He adds that more power creates greater visibility which in turn creates more accountability. As the Defense Secretary he was given more power over the U. S. oldiers; therefore is more accountable. As an Administrator, I would ensure that the soldiers are trained; procedures are in place and adhere to. I would visit the prisons myself and question the detainees, their visitors and other staff to make sure that operational needs are met. Wilson theory on authority, he suggests that power and discretion must accompany responsibility and that power and discretion need to be provided to the public administrator. He adds that more power creates greater visibility which in turn creates more accountability.

Timbre In The First Movement Of La Mer

Timbre In The First Movement Of La Mer Timbre is the quality of a musical note or sound or tone that distinguishes different types of sound production, such as voices or musical instruments. Sometimes timbre is also known as tone quality or tone colour. La Mer is an orchestral composition by Claude Debussy. The composition began its life in 1903 in France and was finished in Eastbourne in 1905. Its first performance had mixed reviews possibly due to the strained relationship he had with his wife and also some critics said it did not create any sensations of the sea. The orchestra that premiered the piece was also poorly rehearsed. In this essay I am going to identify the basic categories of timbre employed by Debussy in the first movement, De laube à   midi sur la mer from La Mer. I am going to show how timbre is employed structurally through the course of the work, with clear identification of structural points and relationships between the sections. I will also show how timbre in this first movement is fundamental compared to other parameters. As we know Debussy was heavily related to impressionism which was dominated by atmosphere and the use of suggestion. Debussy uses timbre to suggest colour, mood and atmosphere, as would Monet or Renoir in their own paintings. In particular, one of Debussys greatest influences when composing La Mer was the Japanese artist Hokusai. In his painting The Great Wave of Kanogawa he shows a vivid but suggestive, powerful wave breaking with foam and spray crashing, creating a scene of terror. This painting is very similar to Debussys first movement, which is vague but also has moments of terror in it. This can be seen at bar 84 here the new section starts. Today, La Mer is highly regarded because of its powerful creation of colours and Debussys replication of the sea. Debussys unique employment of these creations have more than certainly gone on to influence many later scores, such as you might find within the film industry because of its suggestive atmosphere. For example, John Williams Jaws. Generally speaking, La Mer has been influential on many contemporary soundtrack composers because of its highly suggestive and moody atmosphere. The structure of this piece was quite different from other pieces composed around the same time. Debussy fits his structure around the moods, journey and life of the sea without any human element, just purely about nature. We can see through many books and online articles how important timbre was to Debussy. Caroline Potter in Debussy and Nature describes that Debussys representation of the sea avoids monotony by using a multitude of water figurations that could be classified as musical onomatopoeia: they evoke the sensation of swaying, movement of waves and suggest the pitter-patter of falling droplets of spray. We know that musical onomatopoeia is closely associated with specific musical instruments, so Debussy probably chose the instruments with a timbre he felt related to the sea, such as the flute solo at the beginning of the movement at bar 44 which might give the impression of a bird soaring above the sea: It has a lonely character, possibly a sea bird. Debussy also went a stage further when creating sounds related to the sea. Simon Trezise states in the Cambridge Companion to Debussy that for much of La Mer, Debussy spurns the more obvious devices associated with the sea, wind, and concomitant storm in favor of his own, highly individual vocabulary Debussy gives a pictoral title for his fist movement from Dawn to Noon on the Sea. Whether this was intentional to give a literal name for his first movement is unknown but the work certainly does create pictures of the ocean. Through the first movement we can hear the gentle swells and glistening surfaces of the sea to the breaking of the waves on the shoreline. Perhaps through the quieter parts of the movement it suggests that under the sea it is calm and unchanging yet on the surface is an ever-changing picture. La Mer is split into three different movements the first being From Dawn to Noon on the Sea with quick timbral changes to suggest the seas different, ever changing natures. From Dawn to Noon on the Sea is built upon short episodes, which use different instruments to suggest the various timbres of the sea. Debussy develops this to a wonderful suggestion of the swelling of waves, as a theme for divided cellos swells and subsides this is similarly copied by the timpani and ho rns. These episodes can also be heard in the final stages of the final movement. In the first movement of La Mer, Debussy remarkable use of timbre can be seen. As Paul Henry Lang notes, its a vibrating, oscillating, glimmering sound complex, caressing the senses in which Debussy rarely uses the full mass of the orchestra, but approaches it with delicacy and resourcefulness to shimmer in a thousand colours. As a result, Debussy splits his strings up into separate lines, combines the sounds of contrasting instruments, uses provocative harmonies with parallel chordal movement and unresolved progressions, and plays about with thematic fragments that never join together into full-blown melodies, all to achieve unprecedented, yet wholly natural, sounds and timbres. Pierre Boulez calls the result an infinitely flexible conception of acoustical instrumental relationships that avoided symmetry, a development conceived in feelings and irreducible to a formal classical plan. As noted in the introduction, La Mer was unlike any other piece composed at the time. He uses timbre as a relative to the structure of La Mer. The opening marked at pp starts with strings and harps. This timbre creates a still and calm opening, possibly representing the first light at dawn. Instruments are then gradually added, such as the rolling of timpani, with the deep, dark sound of the double bass, perhaps giving a sense of whats to come as well as contrasting with the harps and strings. Also at the opening our sense of pulse is ambiguous. The harps reflect this by playing in octaves in their lower register, together with the cellos also in octaves; producing a dark and resonant sound, which blends with the background. The beginning of this movement provides a pure harmonized and mystical effect to imitate the calm of the sea at dawn. As the sun slowly rises, at bars 1-5 the violas, doubled at the octave, add their ascending pentatonic melody, which gives sense of a fresh and c lean start to the day. At bar 31 the first principal section follows. This part of the movement grows and develops its own material, being mostly independent. However, we can see it is still based upon the opening, with a few different elements omitted. For instance at bar 33, we can see that the flutes pentatonic motif is doubled by the clarinets at the octave below. The use of the pentatonic melody might suggest an oriental flavour. The use of the flutes that dominate the hollow consecutive fifth have a similar timbre to that of the Chinese flute. As Debussy was closely related to the art movement of the time, this perhaps can be related to Debussys preference to The Great Wave off Kanagawa. In the background to this, the second violins and violas wave- like ostinato figure suggests the shimmering, repetitive surface of the sea, while the cellos wider range and more active motion might begin to imply more movement of the sea below the surface. In this section, the harps also play rolling chords that add resonance and suggest the relentless rays of the sun. The second principal section of the movement starts at bar 84. So far, the cellos have played only an accompanying role by suggesting the depths of the ocean. We can now see a new motif that Debussy uses at bar 86. Debussy employs the four part divided cellos to dominate the sonority. This is something that is a very unusual arrangement in Debussys orchestration. At the structural changing point, Debussy again uses the cellos to create a full, strongly articulated and intense sonority, combined with the swelling of the rolling timpani and the horns, to proclaim and bring us into a new section. This drastic change could suggest rumbling thunder or a slow but huge surge of the sea during a storm, gathering its power to strike out on a large rock. This is then followed by a short interlude from bars 122-133. This ten bar section consists of two strong points of four bars with only minor variation in the last four bars. A two bar extension is then added. At this point in the piece we can hear that the momentum is slack and the sea has become uneventful. This can be seen in the timbre employed in this particular section. If we look at the string section they are directed to play Sur la Touch. This creates a soft, colourless tone quality, which reflects the uneventful sea below. We then move into the final section (coda) of the piece. We can see that the harps light ringing timbre, as they play arpeggios in a high register, is used to employ an effect of light. This is contrasting to the low full and dark sound in the beginning. This effect produces a bright tone colour and adds a clear articulation to the ensemble. This suggests the midday image of the ocean filled with the strength of the sun at its highest point. The Trombones also make their first entry in La Mer, creating a tremendous sense of the alarming power of the sea. As the music advances towards a splendid tutti ending, the chorale symbolizes the midday sun bursting through the sea mist after the uneventful stillness of the interlude. The shining atmosphere of the midday suggested in the title is vividly presented. Debussys use of timbre is fundamental throughout La Mer and perhaps is more crucial than other parameters that other composers might usually rely on, such as tonality and structure. However for Debussy, the use of timbre is very important when reproducing and replicating the sounds of the great ocean. The timbres he has used throughout reflect the title of the first movement and do suggest characteristic features one might associate with the sea. One of Debussys greatest attributes is the way he creates musical colour. Susan Key, a writer for the LA philharmonic program books describes how Debussy achieves his sonorities by augmenting the standard orchestra with some glitter: two harps and a large percussion section. But other musical elements also become agents of colour. Harmonic changes serve as colour washes; chords dissolve rather than resolve. Short melodic motives rather than fully developed themes sparkle in brief solos, substituting timbre and movement for narrative coherence. Debussys sophisticated use of timbre is shown in his orchestral scoring of the first movement of La Mer. The use of timbre and effect it has in Debussys orchestration not only becomes an important part of his formal structure, but they also provide energetic pictorial images and emotional atmospheres demonstrating his close relationship of music with visual impressionism. In La Mer, a vivid landscape is suggested from the various wave figurations, shimmering light and onomatopoeic sound effects. The vagueness, ambiguity and effects of light he uses reflects the visual arts, and are vividly implied from his usage of instrumental echoing effects, tremolo strings, harp, and the special timbre of percussion instruments. Although Debussys usage of instruments and most of his instrumentations are not as aggressive as his fellow composers such as Mahler, Strauss and Stravinsky, his delicate way of exploiting timbre is one of his most important contributions. I have identified how Debussy has used timbre to suggest colour, atmosphere and emotion in the first movement of La Mer. I have also shown how timbre is employed structurally through the course of the work and how for Debussy, timbre is just as, if not more important than any other parameters in La Mer.

Henry VI of England :: essays research papers fc

  Ã‚  Ã‚  Ã‚  Ã‚  Could you imagine yourself becoming the leader of a country at merely the age of nine months old? King Henry VI of England did it. Henry was the only son of King Henry V and Catherine of Valois (Wikipedia). By the time Henry V died, he had not only consolidated power as the King of England, but had also effectively accomplished what generations of his ancestors had failed to achieve through decades of war: unification of the crowns of England and France (Wikipedia). For that one single victory by Henry V, he became very popular for that effort. By the sounds of it, Henry was an outseanding King and loved by the people. His son, Henry VI, seemingly had to follow in his fathers footsteps and perhaps do something even greater than his now deceased father. There was only one problem: How can you run a country when you are only a child? England was okay after the death of Henry V because Henry VI had regents that ran the country for him. Under normal circumstances of this magnitude, the wife of a deceased King ran the country, but the English did not want Catherine of Valois to run the country for the simple fact that she was French; so therefore they gave the power to this infant in hopes of greatness. Because young Henry was too young to run the country and had regents to run the country for him until he became of age, Catherine made sure that her son was well-educated. While politics and foreign policies were being negotiated by Humphrey, Duke of Gloucester, Bishop Henry Beaufort, and John, Duke of Bedford, young Henry VI was either learning or being told to go play (Crow). Henry was finally officially crowned King of England at Westminister Abbey on November 6, 1429 at the age of eight and King of France at Notre Dame in Paris on December 16, 1431. Henry did not assume the reins of government until he was declared of age in 1437 (Wikipedia).   Ã‚  Ã‚  Ã‚  Ã‚  For the simple fact that when Henry VI was younger and not allowed to take an active role in leading England, he did not really care about running the country. Henry was such a spiritually deep man that he lacked the worldly wisdom necessary to allow him to rule effectively (Wikipedia). Henry was more of an indecisive pushover.

Linux Companies

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Mental wellbeing and Mental Health Essay

1. Understand the different views on the nature of mental  well-being and Mental health and the factors that may influence both across lifespan: It is a well known fact, that everyone is one of kind unique if you like. There for there will be always different views on this as well as other matters. ( diet, fitness ect)  while † this and that † is working for some, it may not work for the other. However there is a basic so called skeleton form which we can build up what is the best for the individual. Mental well-being can be very unstable thing and it can be tipped either way at any time by trauma or excitement. Influencing factors: – childhood – own believes – education – lifestyle – status of body and mind – reasons for mental well-being/ or illness ( stress, death of loved one ect) – other known/ unknown influencing factors 1.1 Evaluate two different views on the nature of  mental well-being and mental health As already stated every individual is unique and we cannot assume of otherwise. There for every individual. However there is a basic skeletons from which we can build on ( assessment, diagnosis and therapy) If we would go to total basics then we would find two directions from which to start. Positive- People in that state of mind having † can do attitude†, find easy problem s solving, their physical health is usually very good or healing of injury or other goes much faster then at negative thinking individual. – In case of diagnosis and care positive verbalisation helps to encourage a positive process and to keep on track in order to get well HOWEVER: every individual is unique and there for the carer/ doctor or other must must always let client find best path which is best for the client. ( his own way at his own time) Negative- individual sees all as † all hope lost/ no other way† , due lack of hope   and motivation lets thing spin out of hand to make things worse.  Problem to acknowledge a problem or willingness to accept helping  hand is a big issue. ( various reasons like shameless, loss of hope,other). – with the negative mental state you may find that physical signs are at  present ( lack of sleep, aggression, nervosas, other) Mental health – linked to medical model which focuses on treating illnesses establishing diagnosis and treatment as well as prevention, providing medical and other support ( various groups sessions ect) mental well-being- take holistic view of the individual experience. eg. How clients friends and family react to him and his illness, providing moral and social support. – Also nutrition and area client lives plays great role – various activities with the friends and family – Rather than providing medical treatment it is more about helping getting better and supported or not sick at all 1.2 explain range of factors which may influence mental well-being and mental health across the life span including ( 3 factors): – individuals past history- childhood and teenage hood are the vital parts of our lifes. They makes us who we are, makes our believes or other. ( hobbies, mind set, likes not likes other) whether we like it or not nearly whole life we will compare new outcomes or solving new problems base on our past. – biological factors- heath problems run in family at the present or in past. ( usually heritage illness) – male or female – brain or other injury not related to family ( accident or other) – poor nutrition or drug abuse – intake of toxins in body Social factors- family ground indiv. grown up – various social believes ( religion or other) – group of people who socialise with, how they observe you (example heath or drug oriented groups) – state or community you life in and how they accept you psychological factors- already ongoing psych. Illness – stress or shock – loss of loved one – lack of self esteem 1.3 Explain how following types of risk factors and protective factors influence level of resilience in individuals and groups in relation  to mental health and well being: In quantum physics as well as in various ancient civilisation there was/ is believe that all is corrected including people. It my my believe, that it is really so. We all creating each other reality as well as improving/ destroying one to another ( helping or acting badly in order to make a harm) Small thing, action or word can have huge positive or negative impact on us. There for it is important to identify that it is mostly actions of other which may resolve in to improving/ sustaining our mental health or the opposite( too much letting down may resolve in not trusting people or lack of self-esteem) – Risk factors including inequalities, poor quality social relationships: constant discrimination, putting down, rejection or not acceptance are examples of high risk factors. These behaviours of other towards us have not just negative impact on us, but may have potentially deadly consequences for others as well( recent shooting in schools, which were flamed my humiliation or bad rejection of killers ) – protective factors including socially valued roles, social support and contact: Inclusion, full or part acceptance as well as learning about individuals, their habits, believes and other has great positive impact and well as it is great prevention of above stated risks. It was this strategy ( were all nation united against nazi example) managed to achieve great goal to win both world wars as well as in today’s climate to prevent or quickly end another. The same result is achieved when dealing with individuals. Example of risk factors- understaffed care home may have a problem with staff having enough time to spend  with client to ensure proper job done and to avoid any distress on clients as well as carer’s side. Carer feeling under pressure to do it all in hurry may send signals to client( by actions, voice tone or body language) â€Å" u again/ I want you off my back† despite it may not be so. Example of protective action- providing enough staff in to care home as well as management taking time to re ensure staff that they value staff opposition, time and afford can provide furtherer creative thinking on staff side. ( suggest improvements, proper problems records and correction ect) This can resolve in calm and happy staff and their happy feeling can transfer on client ( client being more positive, calm more co-operative, health problems stabilized) Also, the more respect and interest in client carer shown ( within the reasons) the more open, happier and co-operative client is. 2. know how to implement an effective strategy for promoting mental well-being and mental health with individuals and groups: 2.1 Explain steps that an individual may take to promote their mental well-being and mental health- -take himself/ others with reserve ( not too seriously, not  everything is as bad as it seems) – if problem which cannot be solved by your own doing  seek advice ( also helps to stop problem from getting worse) – socialise with people you feel good with and minimize contact with those one who may cause stress or worse. ( no worth of your anger, or damaged health) – regular sport, indoors/ outdoors activities, meditation, relaxation, find a hobby ( doing things you love have great healing properties) – sometimes animals can provide great comfort and relaxation ( so called animal therapy is used on daily bases. Given love= received love) – Find goal who want to achieve as a reason to be.  ( having a goal can be great engine to keep you going on the road you want to be) – Volunteering can provide great satisfaction, boost up self believe and self-worth ( by doing something good and make a difference, makes you feel better about yourself.) – Love frequency- every emotion has a frequency which resonates. Frequency of love is 528 MHz. In Switzerland used to heal damaged tissue. Can be also used for emotion balance restoration 2.2 Explain how to support an individual in promoting their mental well-being and mental health- – showing by practical example, that anything can be done.  ( someone just got new will never use leg again and there for run, visit with him army heroes centre to visit people with similar injury, but still doing what they love) – re-ensure client you and everyone else involved will be always there for him and there is nothing he cannot ask or do. -listen the problem and act as a middle man to find the right solution, comfort or just show that † not all is lost† – make people aware/ organise various events meetings or programs where everyone is welcomed. ( cancer UK research run, Macmillan coffee  morning. You never know what it can give to the individual) – together visit or to do all kind of sport/ other indoors/ outdoors activities – introduce all options how to stay happy and healthy ( books, youtube videos, talks) – Radiate happiness and positivity- in order to help other you must be ok. If people sense from you negativity, may not accept your help and support. 2.3 evaluate a strategy for supporting and individual in promoting their mental well-being and mental health- – Assessment- gather all info available about client ( friends, family, medic. Professionals, other) – make- up your own pre- picture of client, but use it ONLY as a guideline ( so you know what you stepping in to ) – meet up with client and talk ( than you can make final picture, which will need gradual and frequent adjustments- every day is different) – support- finding the best optional choices for client based on your assessment and introducing them to client. ( make sure he knows there are just options he makes final call) – Let client choose the best one for him with explanation it may be changed at any time if needed. – proceed to chosen program providing constant support, re-ensuring, assistance, example and guidance – revaluation- this part should be done on regular bases to see how client view all what is happening also to see his state of well- being and mental health In past have worked with client who was very linked to his wife. She regularly visited him on Monday, Wednesday and Friday. However, between these days he was angry and wanted to see her or leave the care home. In order to ensure his calamines and better management of his behaviour, lady wrote by herself days and times on small peace of paper when she is due to come. So when she was due on Wednesday and on Tuesday he was angry, I just shown the ticked for Wednesday to him. He recognised the writing of his wife and under written promise on Wednesday visit he calmed down. To make it feel like â€Å" it’s just in few moments†, I have converted ? day in to hours minus sleep( giving feeling it will be here soon) and than doing various activities in order time to pass more quickly and waiting to feel much bearable. 2.4 Describe key aspects of a local, national or international strategy to promote mental well-being and mental health within a group or community- -Raising awareness about the problem and identification of consequences ( supporting various groups, meetings, internet media other media, explaining consequences of mental illness and importance of mental health) – Education and physical education- providing knowledge to people and promoting various activities -Promoting inclusion and fighting discrimination and various stigmas – improving mental health of- infants and very young children – children and young people – well- being in working life – well-being in later life – in communities – improving mental health promotion and prevention in local services – promoting research and education as well as international/ national co-operation – regular evaluations of status of national/ international Mental health and well being – Promoting inclusion and comunity spirit ( mix meetings of various religious or other groups) 2.5 Evaluate a local, national or international stratedy to promote mental well-being and mental health within a group or comunity: In last decade have been finaly recognised how important well-being and mental health is. So much so, that comunal, local, national and international tratedies have been developed and implicated to fight growing problem of mental health. ( more and more people have well- being or mental health issues or physical illneses directly linked to mental health) Most of the strategies are directed on young people where problem is the worst. Promoting equality and conclusion is one of the important part of promoting mental health as well as preventing mental health related illneses. Regular meeting on local, national or international level have been held in order to tackle problem more effectively. There are lot of support groups/ organisation supported by goverments or just run as charities. Also great finances have been put in to education and prevention programs in order to esure healty future and current generation.

Incomplete Contracts Essays

Incomplete Contracts Essays Incomplete Contracts Essay Incomplete Contracts Essay Milgrom and Roberts highlight at the end of the paper possible directions that study into the economic theory of the firm should take: A. Incomplete Contracts: relational contracts are only one way of replacing traditional formal long hand contracts. Another possibility is frequent short-term contracts that constantly change as conditions dictate. These short-term complete contracts can cover a surprisingly large array of conditions and therefore the cost of such contacts not the limitations of the contracts that are the associated market cost. However, the costs associated with the constant updating of such contracts can be greater than one long-term contract. In addition, they may not hold if monetary incentives are of limited effectiveness or asymmetric information at the time of renegotiation prevents the smooth negotiation of an efficient agreement. Milgrom and Roberts propose further investigation into short-term contracting and its limitations. B. Bargaining Theory: recent attempts have been made to understand the inefficiencies of bargaining resulting from asymmetric information. However, this has been limited to trying to develop appropriate equilibrium concepts and proving existence. Suggestions are made that future study should focus on an understanding of the relative efficiencies of bargaining in different contexts. C. Reputations: As discussed earlier firms will attempt alleviate opportunism by way of reputation. They may forgo reputation with one customer to necessitate better future transactions in the future. A focus of future study could be how reputations are formed, used, and lost. D. Influence Activities and Rent Seeking: Popular economic theory shows that government intervention in an economy causes inefficiencies. This has been extended to analyse the diseconomies resulting from centralisation of authority in firms. This seems to warrant a branch into two directions. Firstly, to further analyse the theory of influence in the firm. Secondly, to further investigate rent seeking in markets, courtrooms and boardrooms. E. Ownership, Residual Returns or Residual Rights: Further study is warranted on the issue of organisational ownership. Refining the definitions of what ownership means and whether that meaning is situation dependant could answer many questions from corporate take-overs to employment practices. F. Adapting to Uncertainty: Galbraith (1977) formulated ideas relating to organisational design. He posited that an organisations design related to the allowance of adapting to uncertainty in its environment. They can adapt by processing more information (vertical and lateral communication systems) or by reducing the need to process information (environmental management, creation of slack resources and creation of self contained resources). This framework opens up the possibility of looking into price theoretic changes in organisational form and showing the optimal mix of the above adaptations. G. Planning and Budgeting: Iterative planning, more specifically relating to the nature of communication needed in the price system economisation in the planning and control processes. Considering the massive resource allocation in planning and budgeting in many firms, it seems that this area requires further investigation. Question 2 C Describes the theories of corporate culture presented in Hermalin (1999). Hermalin in his article on theories of corporate culture critically analyses the work of four other economists on the subject of culture in firms. He attempts to show how culture can be incorporated into economic theory and aid existing theory in explaining firms capabilities and performance. The four economists that he analyses are Kreps, Cremer, Hodgson and Lazear. Often economists dismiss culture when analysing firms or industries but Hermalin believes it is something that is worthy of study and something that can aid existing economic theory and empirical evidence. KREPS (1990) Kreps believes that fundamental understanding of corporate culture is necessary for understanding how firms implement strategy. He also believes that economists are now suitably armed to study culture and presents the reader with the outline of theory thus far. The first analysis is on Kreps model first introduced in 1990. In his model, Kreps presents many examples and theories surrounding organizational behaviour. Kreps believes there are a few main ingredients that are built into corporate culture. The first is Formal Contracts. Kreps shows that formal contracts can be too costly and in many cases given all the different contingencies are unfeasible. The second is the fact that firms are repeat players. Formal contracts are one way to induce play between two players that would otherwise not engage and the other is repeat play. Any deviation from fair play in one period can be punished by non-cooperation in the next period. A necessary condition of this is one of the players being able to play in multiple periods. Companies and their bosses are by necessity are multiple period players and therefore repeat play is a way of non-formalization by contracts. Hermalin recognizes that these factors including formal contracts and repeated play go a long way to describe, predict and analyse the behaviour of firms and their respective employees both junior and senior. However, more importantly, he manages to identify two factors that actually introduce culture into the equation. These are Multiple Equilibriums and Unforeseen Contingencies. Multiple equilibriums is simply recognition that repeated games have many stable outcomes and some co-ordination of players choices is needed as to which equilibrium prevails. Kreps presents a two player two possibility game where a junior and senior of a particular firm are involved and analyses how corporate culture can affect each players decision-making and therefore possible outcomes. He first looks at the cultural norm of juniors deferring to seniors. If no such culture exists, it would be impossible for us or the players involved to predict the decisions or outcomes in such a game and therefore the culture reduces the risk of the potentially disastrous situation. Culture increases the predictability of the players actions. Hermalin highlights that contracts can be used to formalise decisions but as these can ultimately be more costly than culture, and in many ways could be unverifiable, they are in fact mostly unfeasible. Multiple equilibriums can therefore provide a role for cultural norms to replace the need for formal contracting. Unforeseeable contingencies are then brought into play. Again, these are, in the majority uncontractable and the writing and rewriting of these contracts will be too costly. Nevertheless, a culture of juniors deferring to seniors could possibly rule out the disastrous consequences of either no culture or hostile play. It must be noted that culture can go some way to eliminate these unfavourable consequences of unforeseen contingencies it by no means guarantees the optimal equilibrium. Kreps shows that these unforeseen contingencies add some flavour to the debate surrounding culture and hints that multiple equilibriums are the only prerequisite for the appearance of an influential culture. Hermalin goes on to discuss cultural difference in companies from differing countries in the same industry. He uses the example from Okuno-Fujiwara (1994) and Morita (1998). This shows that American firms and Japanese firms in the same industry faced with the same multiple equilibriums may choose different outcomes dependant on their different culture. This is an example of national culture but it is something that will definitely have an affect on corporate culture. This raises the large issue of actually where corporate culture comes from. Do firms rely on incorporation of national culture or do they foster their own? Creating this culture is costly and it can be seen that firms often rely on prevailing national cultures, which seem, on the surface, to be very weak, in fact have large consequences for the behavioral decisions of its employees. Hermalin then talks about Kreps work in terms of unforeseen contingencies unrelated to multiple equilibriums that he sees as the basis of his work. He summarizes Kreps work by stating that repeated play in a game could be a substitute for contracting. Repeated play is a less costly way of introducing cooperative behavior and is in fact not a perfect substitute but in most cases infinitely more desirable. This is unrelated to culture however, culture is related to the actions or decisions that employees make in these repeated games. Simply if analyzing as Kreps does what constitutes fair treatment or exploitation by managers/bosses then culture will be the benchmark by which that is calculated or measured. It also goes further to measure or show what constitutes cooperative play in Kreps game and the future rewards/future cooperation associated with this as well as non-cooperative play and the associated punishments/ withholding of future cooperation. Therefore culture ultimately rules out all unforeseen contingencies ex ante or substitutes for them. So Kreps essentially has two theories relating to culture. Firstly that culture ensures coordination in repeated games. The actual outcome is essentially irrelevant it is just that there is coordination as the cultural environment that the players are in dictates this. Secondly that it substitutes for unforeseen contingencies ex ante as analysis and contaractualising these would prove too costly and ultimately unfeasible.

How to Write a Book Chapter Review

How to Write a Book Chapter Review Always begin the book review assignment by critically and actively reading the chapter that is to be reviewed. This does not mean that you read merely to discover the main points that the author is trying to make in the chapter and also, does not mean that you read to discover the facts in the chapter. You should engage with the text while reading and take note of all the important points. As you do so, underline those important passages so that when you begin writing the review, you will easily remember the most important places in the chapter, that you would like to mention. It is never a good idea to begin writing the review with no preparation. You should begin by writing a rough draft, consisting of all your notes taken while were reviewing the chapter. Before writing the draft, you could also outline you future review. Right down your ideas in the order in which they should appear in paper. This should then be followed by you over viewing the chapter and asking yourself a few questions the answer to which will help you to understand the chapter better. One such question is what the title of the chapter promises it will explore and the audience that the book is targeting. It is important to know the kind of audience even if you are reviewing only a part of the book, since it will give you an idea of what kind of language to use. You should then read the chapter of the book once again and afterwards, reevaluate its content. When you are reading the chapter and taking notes, always leave some space between the lines, so you can later add ideas or correct any misunderstandings. It is also important to mention, you should remember that it a review you are writing, not a critique, and certainly not just a summary. Be careful of what information you include, and dont overload the paper with your personal opinions. Be as neutral as possible. The quality of your book chapter review strongly depends on the effort you put into writing. Understandably, to put much effort in a simple review, the book should be interesting to you. In case you do not like the book, try to pick a chapter that caught your attention. And if you have no choice in the matter and you have no idea where to start, there is always the option of ordering assistance at our web site. Complete the order form in a few simple steps and pay for your order, and we will assign a suitable writer to help you with your problems. If you need professional book review help try our paper writing service!

Africas Slow Growth And Development Politics Essay

Africas Slow Growth And Development Politics Essay This paper examines the causes of slow growth and development of Africa with emphasis on some selected countries. The paper argued on the basis of Madison’s (1995:65) estimates of per capital Gross Domestic Profit (GDP) for a sample of countries that, during the first half of the century, Africa had grown considerably more rapidly than Asia. By 1950, the African sample had overtaken the Asian sample. In the 1960s, Africa’s future looked bright, especially that the continent was gradually disengaging from the bondage of colonial imperialism. But today, Africa is the poorest continent in the world. While there has been a steady growth in countries of Asia, such as Malaysia, Singapore, South Korea, and Taiwan, African states have lagged behind. Why is African development growing slowly? What went wrong in Africa? How can these problems be solved? This paper attempts to provide answers to some of the fundamental issues that have bedeviled the continent in the 21st century. In order to assess the level of growth and development in the continent, the concepts of ‘growth and development’ is critically examined within the confines of Africa in the paper. The paper attributed the slow growth and development of Africa to ‘Internal influences and external dimensions’. At the same time, the paper provides some plausible suggestions that would serve as a panacea to the problems militating against the growth and development of Africa. Introduction From what direction should one view the slow growth and development of Africa: is it from the perspective of bad leadership couple with wide spread corruption? Or is it that of policy failure, or geographic and demographic factors? Africa as well as the rest of the world is battling with this provocative question: Why does Africa continue to lag behind the rest of the world in terms of social and economic development? Mathew Paris writing in Times August (2002), believes the answer to the co ntinent’s development problem lies in four simple words: †swagger, Indolence, self indulgence and hot air †he points out †failure of leadership, the individual means that what is created or started is not maintained. Further more, it has also been argued that after 1960, particularly when majority of the countries in the continent gained political freedom, the potential of governments were not responsive to the people’s needs, aspirations and wishes, Mathew Parris (2002). The dream were shattered due to bad leadership, corruption, wars, poverty and eventually, economic underdevelopment. Could this entire unfortunate phenomenon be considered as factors militating against the growth and development of Africa? In terms of structure and for the purpose of understanding and clarity of the main thrust of this article, we have divided the paper into four parts. The first part focuses on the interpretation and application of the terms ‘growth and develo pment’ as concepts of analysis. It is necessary to understand that the two concepts were used based on what the paper takes them to be. Perhaps the greatest weakness in the literature of social sciences is striking lack of precision with which terms are used and under the conditions they are studied. However, a clear distinction between growth and development is explained in this part. The second part discusses African perspective. The rich complex of minerals, ecological hung provided by the continent, the continent’s archeological sites and the richness of African culture and its contribution to global community is captured in the first part. The third part investigates the causes of the slow growth and development in Africa. On this part different explanations were presented to justify the strength of points on the topic under review. However, few examples of some selected countries were cited. The fourth part poses a fundamental question: whether or not Africa will ever grow and develop? Perhaps, this is the greatest challenge to African leaders in the 21st century whose time has come. While the final section concentrates on the concluding remarks. This part provides some plausible suggestions that would change the predicaments in Africa, at least if not all, some parts of it.

Project Planning 2 Research Paper Example | Topics and Well Written Essays - 1000 words

Project Planning 2 - Research Paper Example Introduction Project planning is normally stressful to human and resource managers since there are many requirements including adequate resources, skilled staff and other tools important for the project completion. Also required is the organizing and communication of the project plan, scope and procurement activities as well as the breakdown structures necessary for the success of the program. This paper contains a memo that communicates the budget situation to the team members, ways of improving underperforming team members and the action plan to bring the project back to normal. Memo To: Team members From: Mary Tranquillo, Human resource head for the team Date: March 14, 2013 Subject: Budget situation It has come to my attention that some this project of human resource of revamping the employee compensation and the package has started to develop issues. It is so unfortunate since time is not on our side since we have already lost six weeks and seems like most of the members are not dedicated. I have also noted that some of the members are not keen with deadlines, and this is contributing to the much drag in our project. As a result, our budget looks to have been depleted faster than anticipated. We must bring this budget to track as a group. I strongly feel that there is lack of motivation in the group. As a form of encouraging the team members, there will be rewards for the best individuals who will perform best. This will include contests, bonuses, time off payouts and promotions. In addition, the group will also benefit by getting a 5% share of the total profits they contribute to the company. However, appropriate measures will be taken against the poor performing members of the team since we require an energetic team who are ready to contribute to the success of the team. Best, Mary. Ways to improve an underperforming team member Compensating for results: These are the benefits to employees from the company for the efforts employed which are either moneta ry or other benefits. Compensation plans should be designed in a manner that motivates and encourages the team members. Many plans include large incentive component including bonuses, trips, cars, commissions and stock options (Andris A., Zoltners, Prabha K. et al. 2001, 269). Compensation will be an easy thing to do especially if the work done is measurable and comparable. The best team member will be determined through the measurement of the individual performance where the results are compared and the one performing best is rewarded. Other forms of reward whose nature is personal, special and also unique rewards tend to be even motivating more than cash alone. In order to determine how much a team member will be compensated, different factors will be considered. These include the contribution of the team to the total earnings of the company and the type of industry. Also benchmarking among different industries is important so as to approximate the right amount or type of compensa tion (Andris et al. 2001, 281) Improving Team Member Accountability According to Berry (2001), team work is normally beneficial to the company, but underperformance of one member is a drawback to the team and this can be worse if the members tend to hold each other accountable. If the team member fails to undertake actions that are useful to the needs of the team, then team member accountability becomes an issue of concern. There

The Films of Alfred Hitchcock Essay Example | Topics and Well Written Essays - 750 words

The Films of Alfred Hitchcock - Essay Example As with the lipstick-stained handkerchief, the articles in Rebecca’s bedroom provide an ominous presentation of her lingering presence in Cornwall. Here, Rebecca’s room space depicts that her presence is represented in her bedroom. Because of this, the new Mrs. de Winter is overwhelmed by the sheer strength of Rebecca’s spirit, as she cannot escape her signs whenever she turns in the house (8). The continuous remain of Rebecca’s presence overwhelms her, thus believing that her husband is still in love with Rebecca. Even Mrs. Danvers suggests that Rebecca wanders the hall of the apartment and watches the second wife when she is with Maxim. These mansion settings turn into haunted houses since the inhabitants are preyed upon, stalked, and often eventually killed in them. In Notorious (1946), Hitchcock explores the meanings of familiar domestic and architectural spaces. Observe, for example, what the film is doing with the balcony in the apartment scenes. Initially, the balcony provides a view for which back-projected picture-postcard of exotic romance; subsequently, it virtually disappears, dissolves, as we draw towards, gets absorbed in the lovers. In other words, Hitchcock depicts that it is a private space, a place for intimacy (Brandt 13). Later, the balcony is represented as cold and dark as well as airy. It mirrors the mismatches and distances between the characters as they squabble. In Alicia’s apartment in the first scene is the perfect, blissful moment of love. The space of the apartment is depicted as everything in it. Starting from the level of staging, cutting, framing, and lighting. It creates that sense and sensation of perfect union, which is of the oneness of the lovers (Brandt 13). Both the outer and inner parts of the house are joined, opening in one continuous strip of space that is bound by a firm sensual luminosity. In the film, Psycho (1960), Hitchcock

Compare china main land economic and Taiwan Research Paper

Compare china main land economic and Taiwan - Research Paper Example venue had risen to $2278 while that of Mainland had remained a paltry $256.This broadening gap between the two economies had started attracting global attention. Taiwan mostly is considered to have embraced market capitalism whereas China is considered to be a predominantly socialistic country. However both nations have shown that they do not pursue a purely socialistic system or capitalistic system. They in actuality pursue a mixture of both kinds to various levels. Despite the fact that Taiwan pursues a system that is capitalistic ,the government still controls the finance and banking system and makes decisions on which industries it should support and protect. Conversely, China began out under firm socialism but over the years but has started to change so as to widen both domestic and foreign markets. One of the key bases for the disparities in growth between China and Taiwan was the distinctions in international trade. Thus industries that are high-exporting seem to lead to productivity that is faster than industries that are low-exporting. Firms that are owned by the state without any foreign assistance tend to be less productive than the ones that are privatized or joint-ventures having foreign direct investment (FDI). It wasn’t just a coincidence therefore that China for the earliest time ever matched Taiwan’s 8% GDP growth rate that it has had for years after opening up of its foreign markets, allowing the entry of FDI. One of the key stated merits of communism/socialism over capitalism is stability in growth over lengthy periods of time. Taiwan has however under capitalism displayed a more stabilized GDP growth of around 8% over the past 5 decades while China has exhibited unstable and negative GDP growth rate to a point where the government of China refused t o expose statistics officially anymore (Lijun, 2002). It wasn’t until recently when the Chinese government embraced advantages of capitalism that their economy eventually started to grow

Government intervention in global business Outline

Government intervention in global business - Outline Example Different economic forces, such as, booms, recessions or different forms of crisis such as financial crisis, create different situations that need different forms of government intervention. In this paper, the issue of government intervention would be studied with respect to the various measures that governments in different nations of the world adopt. This research work would follow inductive approach and use secondary data for the analysis of data. The research process would involve preparation a research proposal, designing the research method, identification of reliable sources of information, collection of data from secondary sources, analysis of the data and the inferring the results from the discussion of the facts gathered through review of literature. Research studies have been made in the past and are also being made in the current times to assess the motivations behind government intervention in the global economy. Many of the research results reveal that one of the most important and commonly observable intentions of the government behind intervening in the economies is to boost up the economies (Tragakes, 2011). In the developing economies, governments emphasize on increasing level of economic activities in the economy, while in the developed countries, the intention of the government is to maintain stability in the economy and also enhance future growth prospective. According to some researchers, the policies developed by the governments are, essentially, either directed towards covering their economies against outside economic forces or regulating the performances of internal economic forces operating in their countries (P. J. Welch and G. F. Welch, 2009). The varieties of policies of the governments at the global level, fu ndamentally, are guide by these two basic motives of intervention. Partnership has become a buzzword in the current economic context. Until the past few decades, the

MArketting Assignment Example | Topics and Well Written Essays - 2750 words

MArketting - Assignment Example This reflects the success of the company in various countries (Jumeirah International, 2013). The company has mainly eyed tourist attractions and travel destinations for the placement of its properties and this have hugely contributed towards the instant popularity of the group in that particular area. The architectural finesse of the group is appreciated the world over and these hotels and resorts are the sought after destinations for sight-seeing purposes too. As a part of its expansion plan, the Jumeirah group is viewing the feasibility of setting up its foot in India, also a country in Asia with huge population and growing economy. The hospitality sector is estimated to generate revenue of $ 30 billion by 2015 (ICRA Limited, 2011). This paper aims to undertake environmental analysis that would help the parent company in arriving at a positive decision towards establishing their business in India. In order to evaluate the macro-environment of the country with regard to the hotel industry, a PEST analysis is conducted. The sector is explored to assess the political, economic, social and technological factors that impact the business. The hospitality industry hugely contributes towards the economy by the way of taxes and tariffs, as per the luxury and services that they provide. Thus, decisions pertinent to hotel industry are definitely under the scrutiny of the government and its intervention into the operations in the sector is inevitable. Incentives and tax concessions are given to aspirant hoteliers serving foreign tourists and generating income in foreign currencies. The government also allows tax concessions for hotels in hilly areas and remote places and these concessions helped the industry wade through the economic crises. However, the terrorist attacks in Taj hotel at Mumbai has affected the sector, as the tourists do not feel enough secure in these lodging set

Compare china main land economic and Taiwan Research Paper

Compare china main land economic and Taiwan - Research Paper Example venue had risen to $2278 while that of Mainland had remained a paltry $256.This broadening gap between the two economies had started attracting global attention. Taiwan mostly is considered to have embraced market capitalism whereas China is considered to be a predominantly socialistic country. However both nations have shown that they do not pursue a purely socialistic system or capitalistic system. They in actuality pursue a mixture of both kinds to various levels. Despite the fact that Taiwan pursues a system that is capitalistic ,the government still controls the finance and banking system and makes decisions on which industries it should support and protect. Conversely, China began out under firm socialism but over the years but has started to change so as to widen both domestic and foreign markets. One of the key bases for the disparities in growth between China and Taiwan was the distinctions in international trade. Thus industries that are high-exporting seem to lead to productivity that is faster than industries that are low-exporting. Firms that are owned by the state without any foreign assistance tend to be less productive than the ones that are privatized or joint-ventures having foreign direct investment (FDI). It wasn’t just a coincidence therefore that China for the earliest time ever matched Taiwan’s 8% GDP growth rate that it has had for years after opening up of its foreign markets, allowing the entry of FDI. One of the key stated merits of communism/socialism over capitalism is stability in growth over lengthy periods of time. Taiwan has however under capitalism displayed a more stabilized GDP growth of around 8% over the past 5 decades while China has exhibited unstable and negative GDP growth rate to a point where the government of China refused t o expose statistics officially anymore (Lijun, 2002). It wasn’t until recently when the Chinese government embraced advantages of capitalism that their economy eventually started to grow

MArketting Assignment Example | Topics and Well Written Essays - 2750 words

MArketting - Assignment Example This reflects the success of the company in various countries (Jumeirah International, 2013). The company has mainly eyed tourist attractions and travel destinations for the placement of its properties and this have hugely contributed towards the instant popularity of the group in that particular area. The architectural finesse of the group is appreciated the world over and these hotels and resorts are the sought after destinations for sight-seeing purposes too. As a part of its expansion plan, the Jumeirah group is viewing the feasibility of setting up its foot in India, also a country in Asia with huge population and growing economy. The hospitality sector is estimated to generate revenue of $ 30 billion by 2015 (ICRA Limited, 2011). This paper aims to undertake environmental analysis that would help the parent company in arriving at a positive decision towards establishing their business in India. In order to evaluate the macro-environment of the country with regard to the hotel industry, a PEST analysis is conducted. The sector is explored to assess the political, economic, social and technological factors that impact the business. The hospitality industry hugely contributes towards the economy by the way of taxes and tariffs, as per the luxury and services that they provide. Thus, decisions pertinent to hotel industry are definitely under the scrutiny of the government and its intervention into the operations in the sector is inevitable. Incentives and tax concessions are given to aspirant hoteliers serving foreign tourists and generating income in foreign currencies. The government also allows tax concessions for hotels in hilly areas and remote places and these concessions helped the industry wade through the economic crises. However, the terrorist attacks in Taj hotel at Mumbai has affected the sector, as the tourists do not feel enough secure in these lodging set

Should People Have Autonomy over Their End of Life Decisions Essay Example for Free

Should People Have Autonomy over Their End of Life Decisions Essay There is a lot of controversy surrounding the issue of people’s autonomy when it comes to the end of their lives. Why somebody would want to end their life prematurely is a question that puzzles people. So therefore is hard to comprehend why people should have autonomy over such a thing. There has been an increase in the interest of euthanasia and assisted suicide for the terminally ill in recent years (Williams 1997). The most obvious reason for someone wanting to end their life is to end the suffering they are going through once the illness goes beyond being bearable. Palliative care is an important part of treating a seriously ill patient. It provides a patient with care, support and any medical treatment they need including pain relief. But is this enough? A person that is extremely sick, for example, a terminally ill cancer patient, or a person that is paralysed from the neck down, or any person that is unable to do things for themselves – such as washing, eating etc., will need to depend on others to help them. This would involve somebody dressing them, washing them, feeding them – or having being fed via I.V., they would need help going to the toilet and may need to be lifted in and out of a bed. These peoples quality of life would be very low. They may be depending on family members for these things or medical professionals that are strangers to them. Either way, this can be an embarrassing and upsetting for a person. They may feel like they have lost all sense of dignity and some might feel like they are just waiting to die. People in these situations may often decide that the best option for them is to end their physical and emotional pain. If a doctor cannot improve an individual’s quality of life and they make that decision to end their suffering, the patient should have right to have their wishes met. Those that request assistance in dying are usually very desperate and do not see any other option. There are vast amounts of arguments against autonomy at the end of ones life too. Religious perspectives. consequences on family, friends and healthcare professionals. Is it ethical? Would it begin a slippery slope towards involuntary euthanasia? But are these arguments and opinions stronger than a person’s right to choose? The Argument The subject of euthanasia is very controversial because there are very strong arguments at both ends of the spectrum. There are any justifications for and against the issue of one’s autonomy over their end of life decision. Paterson (2008) states that religion plays a role in many people’s decisions against voluntarily ending one’s life. Most religions are strongly opposed to the idea that a person should want to end their own life and/or aid an individual in doing so. Other factors come into play such as conscience and morality. Some people see it as unlawful and more often than not, it is a very taboo subject that people would rather not discuss. (Paterson, 2008) On the opposite end of the spectrum, one will argue that those who are terminally ill are going through unbearable suffering, they may need help going to the bathroom, eating and drinking and possibly feel like they have lost their dignity because of this. In an online article written for the Daily Mail, a man by the name of Tony Nicklinson describes his life as â€Å"miserable, demeaning and undignified† (Miller, 2012). The article describes how Nicklinson is mentally sound but physically paralysed from the neck down and took his plea for his right to die to the courts. This emphasises that euthanasia and assisted suicide can be a relief from pain and suffering, or in Tony Nicklinson’s case, an alternative to the quality of life he must struggle through on a daily basis. (Miller, 2012) Many factors come into play when a person decides they no longer want to live. It is not a decision that is made lightly. It is one of desperation. Those opposed to the idea of assisted suicide and euthanasia will argue that a patient in severe pain and suffering in their daily living, will receive the appropriate palliative care thus, rendering euthanasia unnecessary (Anti-euthanasia arguments 2012) But surely palliative care is also a necessary element in figuring out whether or not a person would be deemed eligible if euthanasia were an option for them. Palliative care also provides support for those closest to a patient. If a terminally ill patient of sound mind wishes to end their pain and suffering, does that mean that they and their close family and friends are no longer entitled to the same care and support as those patients that do not choose to end their lives earlier? Under the subtitle ‘Proper Palliative Care’, an article on the BBC website states â€Å"The key to successful palliative care is to treat the patient as a person, not as a set of symptoms, or medical problems.† (Anti-euthanasia arguments 2012) If this is the case, the patient as a person – should be given their dignity, respect and deserve to have their voice heard. â€Å"The judgement – as to whether a life, in the face of intractable pain and suffering, is worth living – can and should be determined by the conscience of the individual patient []† (Paterson, 2008. p16) An article for the Irish Times declares that the attitudes of the irish people towards euthanasia is rapidly changing. A study carried out by a Canadian student, Matthew Carere on final year medical students in UCC, reveals that the majority – almost 60% were in favour of euthanasia, with Carere stating that the reason for this was that patients are more informed these days to make their own decisions and that medical professionals have more respect for patient autonomy (Roseingrave, 2011). Very often, deliberate decisions are made which results in the end of a life. For example, a person could be kept on life support, but instead, a family member or other significant person might choose to switch off the life support machine resulting in the official death of a patient. There is also the case that resuscitation of a patient may eventually prove to be trivial and a doctor might suggest just making the patient as comfortable as possible until their eventual passing. In the above situations, a medical professional’s decisions would not be questioned or doubted. It is conventional practice (Warnock and MacDonald 2008). An organisation called Exit International was set up in 1997 by Dr. Philip Nitschke. They believe that people have the right to make an informed decision about when and how they will bring their life to an end. They provide information and support to those that need it on assisted suicide and voluntary euthanasia (About Exit International 2012) â€Å"Exit’s long term goal is responsible and ethical law reform. The Swiss model of decriminalising assisted suicide is the preferred model.† (About Exit International 2012) At the moment the Netherlands is the only place in the world that one can legally take action should they decide it’s their time to go (Griffiths and Weyers 1998). It was legalised fully in the year 2000. Prior to this doctors could still be prosecuted by law. However, there are strict guidelines that must be met. â€Å"1. Adult patients must be beyond any hope of recovery and face continuous unbearable pain. 2. The patient must make repeated, clear and reasoned requests to do so. 3. A second physician must be consulted. 4. The action must be carried out in a medically approved manner. 5. parental consent is required for patients under 16 years old.† (Legalized Euthanasia 2007) In Switzerland, active euthanasia is illegal but with specific consent, doctors may provide the drugs but the patient must be the one to take them voluntarily. (Legalized Euthanasia 2007) A person’s right to choose is very imminent. Considering the criteria that must be met in the Netherlands and Switzerland, it’s very obvious that it is only an option if it is in the very best interest of the patient. This makes sense if one considers prolonging the suffering of a patient both physically and mentally as cruel and unethical. Conclusion The term ‘suicide’ brings with it a lot of negative emotions. The idea that somebody would willingly want to end their lives is a distressing thought. It conjures up the idea that a person is depressed and in deep emotional pain. The idea of suicide is indeed scary. This, perhaps may be why people panic when they hear the term ‘assisted-suicide’ or when they think about euthanasia. What those opposed to the idea of prematurely ending a life do not think about though, is the physical as well as the emotional pain a terminally ill person is feeling. They can empathise but not fully understand, unless they are in the same or similar situation. So, who are they to deny a human being their free will and choice to end their suffering? How do they know that they would not feel the same way if they were the ones going through the unbearable pain and lack of dignity? â€Å"Furthermore it is argued, we ourselves have an obligation to relieve the suffering of our fell ow human beings and to respect their dignity.† (Andre, Velasquez 2012) People against the idea of assisted suicide and euthanasia will speak of the guilt of allowing a person to seek an end to their own lives. But where is their guilt in watching an individual, perhaps a loved one in relentless pain? Where is their compassion for the terminally ill patient? (Andre and Velasquez 2012) Thos people may also talk about a ‘slippery-slope’ to involuntary suicide. the legalisation of euthanasia and assisted suicide under certain circumstances, would mean legislation – criteria that needs to be met, similarly, if not the same as that of Netherlands. â€Å"with safeguards, the law should permit it and people should be supplied with the means to take their own life or a doctor should be authorized to end their life provided the request is made before witnesses.† (Williams 1997) People of sound mind should have autonomy over what they want to happen at the end of their life, they should have the choice. Williams (1997) suggests that if one rationally decides that they want to end their life, they must be prepared to discuss the pros and the cons of their decision and the reasons behind those decisions will be questioned. He writes that we all have a right to make a decision on our own life and once their unit of family and friends is taken into account, then it can be justifiable to deliberately end a life. This is completely understandable and logical. People would no longer have to endure excruciating pain and struggle through the end of their lives without dignity. If they have autonomy, they have the choice to end their suffering and pain.

Effect of MA Strategy on Shareholder Value

Effect of MA Strategy on Shareholder Value The aim of this project is to examine whether the decision of large UK companies looking to pursue a merger/acquisition strategy will affect shareholder value. The data analyzed in this study will determine if there is a positive or negative correlation in shareholder wealth when a merger/acquisition occurs. The research for this project will be conducted through the analysis of 40 different large UK companies that were merged or acquired by other UK based firms prior to 2002. The data will be obtained from the Bloomberg website. Further research and analysis on the topic will include information obtained from books, journals and reliable internet sources. To test the value of shareholder wealth when a merger/acquisition is pursued, different models will be used which includes Capital Asset Pricing Model, Efficient Capital Markets, Equilibrium Models, and Market Model (Event Studies and Abnormal Returns Methodology). The hypothesis that will be tested in this study is: H0 = If managers of large sized UK companies pursue a merger and acquisition strategy then shareholder wealth (value) will increase. H1 = If managers of large sized UK companies pursue a merger and acquisition strategy then shareholder wealth (value) will remain unchanged or will decrease. The first chapter will give a brief overview of mergers and acquisitions and introduce the reader to recent merger trends in the UK and different types of takeovers. The second chapter will be an in-depth analysis of past research studies which includes: examining different ways a company pays for a bid in a merger, exploring shareholder and managerial wealth perspectives, and analyzing long term post-merger performance of target and bidder firms. Chapter three presents the research methodology used in wealth gain studies and also states the methodology adopted for this dissertation. Chapter four analyzes and discusses the findings in context to wealth gain effects of mergers and acquisitions among the large UK companies chosen for this study. Chapter five concludes this research and highlights possible areas that may require further investigation. EXECUTIVE SUMMARY Mergers and acquisitions have become important events in todays rapidly changing business environment and have been the subject of many research studies. Reasons as to why companies may pursue a merger or acquisition strategy could be to reduce costs to achieve economies of scale or to reduce competition due to increased market power. Mergers and acquisitions have also been known to facilitate entry into new markets or industries and increase the level of effectiveness in a company by eliminating inefficient management. Mergers and acquisitions worldwide have tended to follow a pattern of waves, with there being periods of frantic takeover activity followed by relatively calmer periods. The main objective of financial theory is to maximize shareholder wealth therefore all decisions are taken with the aim of maximizing shareholder value. The purpose of this research is to re-examine the shareholder wealth gain criterion with regards to mergers and acquisitions within the United Kingdom. The objective of this study is to find out if shareholders of large UK companies benefit from the acquisition decisions made by the managers. Past research studies on post-acquisition performance of acquiring and target firms have mixed results. To determine if there is an increase or decrease in shareholder value from corporate takeovers, the Market Model and Event Study Methodology will be used in this study. The hypothesis developed in this study aims to support the argument that mergers and acquisitions are profitable events and lead to an increase in shareholder value. This study however concluded that merger and acquisitions among the large UK organizations chosen did not lead to an increase of shareholder value for both target and bidder firms. These results might not be entirely accurate due to various reasons such as size effects and the firms chosen in this study are from different industries. Other factors such as acquisition financing and acquisition motives also may have an effect on shareholder value however the testing of these factors is outside the scope of the following study. CHAPTER 1: OVERVIEW OF MERGERS AND ACQUISTIONS The following chapter briefly examines the benefits that a merger is expected to generate for both the target firm and the acquiring firm. The historical pattern of takeover activity in the UK from 1964-1992 is discussed to show merger and acquisition (MA) trends and recent MA activity abroad and within the UK will also be highlighted among large UK companies in 2008. In addition, the definition of mergers and acquisitions is provided and the second part of chapter one introduces the reader to different types of mergers used to create value for an organization. 1.1 Benefits to Mergers and Acquisitions Activity The main objective for an acquiring firm is to grow and expand its assets, sales and market shares. Other specific reasons for entering into a merger bid are reflected in the benefits that are expected to be generated which include: Exploiting scale economies Obtain synergy Enter into new markets To restore growth impetus To acquire market power To reduce dependence on existing or perhaps risky activities With the above mentioned benefits to MA activity, it should also be noted that takeovers most likely to succeed are those approached with a strategic focus, incorporating a detailed analysis of the objectives of the takeover, the possible alternatives and how the acquired company can be integrated in the new parent (Pike and Neale). 1.2 Trends in UK Merger Activity There has been an increasing trend of MA activity in the UK over the past few decades, with there being periods of high takeover activity followed by relatively slower periods as can be seen by the graph below. Figure 1.0 History of UK MA Activity Source: National Statistics, 2002 The highest peaks in takeovers are during the period 1984-1989. During this time, the average size of an acquisition had grown significantly from 9.64 million to 20.38 million. As per Sudarsanam (1995) the main reason for this was because the stock market in the UK, along with the harmony with the rest of the world stock markets experienced a strong bull phase which culminated in the October 1987 crash. Furthermore, the 1980s also experienced divestments on a large scale which meant companies would sell off divisions or subsidiaries to other firms of the divested parts in a management buyout. This increase in acquisitions and divestments had shown significant amount of corporate restructuring in the UK and thus led to new organizational innovations such as management buyouts and management buyins, as well as by financial innovations like high-leverage buyouts and mezzanine finance (Sudarsanam, 1995).As can be seen from the graph above, the UK MA market has experienced a relatively le aner period, which has continued till date. The main reasons that can be attributed to this are the various world catastrophes and the overall global economic slowdown. As per the office of National Statistics, the largest significant transaction recorded during the first quarter of 2008 was the acquisition by Imperial Tobacco Group Plc of Altadis S.A. for a press reported value of 9.3 billion. Another significant transaction was the acquisition by Carillion Plc of Alfred McAlpine Plc for a reported value of approximately 0.5 billion. For quarter one in 2008, the number of transactions reported for acquisitions in the UK by UK companies has been the lowest reported since quarter one 2003. Other recent major UK mergers acquisitions (2008) are as follows: Table 1.0 Recent Acquisitions in the UK by UK Companies Company Value in million Carillion Plc acquiring Alfred McAlpine Plc 554 Willmott Dixon Ltd acquiring Inspace Plc 133 easyJet Plc acquiring GB Airways Ltd 104 iimia MitonOptimal Plc acquiring Midas Capital Partners Ltd 100 Source: National Statistics, 2008 Table 2.0 Recent Acquisitions abroad by UK Companies Company Value in million Imperial Tobacco Group Plc acquiring Altadis S.A. 9339 Reckitt Benckiser Group Plc acquiring Adams Respiratory Therapeutics 1100 Scottish and Southern Energy Plc acquiring Airtricity Holdings Ltd 808 SABMiller Plc acquiring Koninklijke Grolsch N.V 606 Ineos Group Ltd acquiring Kerling AS 429 429 Standard Chartered Plc acquiring American Express Bank Ltd 413 Kesa Electricals Plc disposing of BUT SAS 389 Source: National Statistics, 2008 1.3 Definitions and Different Types of Mergers and Acquisitions Although the terms merger, acquisition and takeover are used interchangeably, technical differences do exist. A merger is when corporations come together to combine and share their resources to achieve a common set of objectives (Sudarsanam, 1995). The shareholders of the two combined corporations will continue to be joint owners. An acquisition is when one firm purchases the assets or shares of another firm however the shareholders of the acquired firm continue being owners of that firm. A takeover is the acquisition by one company of the share capital of another in exchange for cash, ordinary shares, loan stock or a combination of these (Pike and Neale). This distinction between the three terms is important in certain contexts however they are used by researchers and authors interchangeably. In the following dissertation, I too will use these three terms interchangeably. There are different types of mergers that exist to create value and are classified into three main categories: horizontal, vertical and conglomerate (Pike and Neale). Horizontal integration: this is when a company takes over the target firm from the same industry and at the same stage of the production process. Vertical integration: where the target is in the same industry as the acquirer however is operating at a different stage in the production process. This can be either close to the source of materials (backward integration) or close to the final customer (forward integration). Conglomerate integration: occurs when the target is in a business that is different to the acquirer. The reasons a firm may undergo a conglomerate merger is to reduce risk through diversification, opportunities for cost reduction and improving internal and external efficiencies. In order to understand whether mergers and acquisitions create or destroy shareholder value, it is important to appreciate and understand few critical aspects of the complex MA theory. The three areas in helping to answer this question with respects to the impact of shareholder value in my opinion are different modes of financing mergers and acquisitions, motives for MA activity and post-merger performance. Various researchers in the finance field have conducted a great amount of research on the above mentioned areas and this dissertation will help put into perspective mergers and acquisitions impact on shareholder value currently in the UK. CHAPTER 2: BACKGROUND OF STUDY Mergers and acquisitions are undertaken as a means of corporate growth and expansion but are also an alternative to growth through internal or organic capital investment. The immediate objective of an acquisition is self-evidently growth and expansion of the acquirers assets, sales and market share (Sudarsanam, 1995). Another objective of acquisitions would be to increase the growth of shareholders wealth aimed at creating a strong competitive advantage for the acquirer. In modern finance theory, shareholder wealth maximization is a strong rational for financing and investment decisions made by management. This leads to the question of wealth gain effects of mergers and acquisitions, specifically among large UK companies. The following chapter introduces various literature regarding wealth gain effects of mergers and acquisitions and highlights the various aspects of mergers and acquisitions which may have an effect on the shareholder value within large UK corporations. 2.1 Modes of Acquisition Financing There are various modes of financing a takeover which includes: cash (preferred method), issuing of ordinary shares and fixed interest securities (loan stock, convertibles, and preference shares). The way in which a merger and acquisition is financed has different benefits to the target shareholders and bidder shareholders. In addition, cash takeovers may be sufficiently different from non-cash acquisitions and failure to distinguish between them may lead to inappropriate generalizations (Carleton et al, 1983). As per Sudarsanam (1995), there are various ways a firm can bid an acquisition, which is shown in Table 3.0. Table 3.0 Bid Financing Bidder Offers Target shareholders receive Cash Cash in exchange for their shares Share Exchange A specified number of bidder s shares for each target share Cash underwritten share offer (vendor placing) Bidders shares, then sell them to a merchant bank for cash Loan stock A loan stock/debenture in exchange for their shares Convertible loan or preferred shares Loan stock or preferred shares convertible into ordinary shares at a predetermined conversion rate over a specified period Deferred payment Part of consideration after a specified period, subject to performance criteria Source: Sudarsanam (1995, p.177) In addition, a bidder making cash offer can finance it from one or more of the following sources (Sudarsanam, 1995): Internal operating cash flow A pre-bid rights issue A cash underwritten offer, e.g. vendor placing or vendor rights A pre-bid loan stock issue Bank Credit A cash offer has two advantages from the point of view to both the target and acquiring shareholders which includes (Pike Neale, 1999): The amount is certain; there is no exposure to the risk of adverse movement in share price during the course of the bid. The targeted shareholder is more easily able to adjust his or her portfolio than if he or she receives shares, which involve dealing costs when sold. Because no new shares are issued, there is no dilution of earnings or change in the balance of control of the bidder. In terms of shares being used as a medium of exchange again there are some advantages to both target as well as acquiring shareholders (Arnold, 2002) which are: For target shareholders use of shares helps avoid capital gains tax. Target shareholders maintain an interest in the combine entity thus helping preserve as well as increase shareholders value. Acquiring shareholders gain from the fact that there is no immediate cash outflow. Nickolaos Travlos (1987) study titled Corporate Takeover Bids, Method of Payment, and Bidding Firms Stock Returns was to examine the role of the method of payment in determining common stock returns of bidding firms at the announcement of takeover bids. The analysis in the study was to show the valuation effects on two common methods of payment which are common stock exchanges and cash offers. The results showed that bidding firms had normal returns in cash offers however experienced significant losses in pure stock exchange acquisitions. Other literature studied by Asquith and Mullins (1986), Kalay and Shimrat (1987), Masulis and Korwar (1986) and Mikkelson and Partch ( 1986) show that common stock issues have negative stock price when there are new common stock offerings. These results were supported by various other studies such as Henri Servaess (1991) study titled Tobins Q and gains from takeovers. Agrawal, Jaffe and Mandelkar (1992) found post-acquisition returns to be lower fo r share-financed acquisitions in comparison to cash-financed acquisitions. They further went on to prove that shareholders of acquiring firms suffered a statistically significant loss of about 10% over the five-year merger period. The bidding firms method of payment provides valuable insight to the market. If the bidding firms managers possess information about the intrinsic value of their firm, independent of the acquisition, which is not fully reflected in the pre-acquisition stock price, they will finance the acquisition in the most profitable way for the existing stockholders (Travlos, 1987). Myers and Majluf (1984) model states that management will prefer cash offerings if they believe their firm is under-valued however a common stock exchange offer will be preferred if they believe their firm is over-valued. In addition, market participants will strongly favor a cash offer as good news while the opposite holds true for a common stock exchange about the bidding firms true value. If such information is important in the market, then the bidding firms stock price change at the proposals announcement will reflect both the gain from the takeover (weighted by the probability that the takeover bid will go throug h) and the information effects (Nickolaos, 1987). Jensen and Ruback (1983) state that most tender offers are financed by cash however merger proposals are financed by the exchange of common stock therefore the information argument states that larger target residuals occur in tender offers rather than in mergers. In their study conducted, they determined that for mergers, the weighted abnormal target firm return is 16.3% over the month before announcement however for tender offers; the weighted target return is 30.9% over the two-month period surrounding the announcement dates. Cash is by far the most widely used form of payment in mergers and acquisitions. There are many reasons as to why there is an increased use of cash in financing mergers. One possible explanation for the increasing use of cash depends on market imperfections and/or agency considerations (Carleton et al, 1983). Another reason for why bidding firms use cash in financing mergers is the increase in the number of hostile mergers. Cash not only signals a high value for the target, but also preempts other firms from bidding (Martin, 1996). These findings were also found in the literature of Eckbo, Giammarino and Heinkel (1990) which include a role for mixed financings in which higher-valued bidders are more likely to use more cash to finance the acquisition. As can be seen from the literature above the mode of payment in an acquisition may be driven by various motives and can have various effects on the bidders and acquirers stock price. This can have a major impact on shareholder value during corporate acquisitions as well as value gain studies. A study by Loughran and Vijh (1997) formed an association between the mode of acquisition (merger and tender offer) and the method of payment (cash or stock). They studied this relationship in the context of wealth gains from acquisitions and concluded that the post-acquisition returns of acquirers are related to both the mode of acquisition as well as form of payment. This was also proved by various other researchers (mentioned above) thus making the method of payment during an acquisition all the more important. Reason being, post-acquisition returns are what tend to effect shareholder value the most therefore the knowledge and distinction of the various modes of financing an acquisition is ve ry relevant and essential. 2.2 Motives for Mergers Acquisitions A Dual Perspective Tender offers allow for an in-depth analysis of agency relationships since the best interests of the principal (target firm shareholders) and agent (target firm managers) are often in conflict. Managers of the target firm are often in conflict of interest between their fiduciary responsibilities to the shareholders and their own personal wealth. For this reason, tender offers allow for the analysis of agency conflicts between shareholders and management of the target firm. According to Sudarsanam (1995) there are two main perspectives for acquisition motives which are: Shareholder wealth maximization perspective Under the shareholder wealth maximization perspective, all firms decisions including acquisitions are made with the objective of maximizing the wealth of the shareholders of the firm. In mergers and acquisitions, management of the target firm will oppose bidding firms to takeover if they believe this action would not be in the best interest of its shareholders. Target managers that oppose a bid defend their reasoning by claiming that the bid price is not adequate enough. Managerial wealth perspective Under the managerial wealth perspective, target managers may face an uneasy choice between obligations to current shareholders and those who aspire to such a position (Walkling and Long, 1984). For many target managers, if they sense a possibility of a loss in compensation from the merger or acquisition, conflict of interest will then increase. If self interest is pursued by target managers, there is a possibility that a bad acquisition may occur and/or a loss of shareholder wealth. According to Sudarsanam (1995), managers may undertake acquisitions for the following reasons: To pursue growth in size of their firm, since their salary, prerequisites, status and power are a function of firm size. (Empire-building syndrome) In order to deploy their currently underused managerial skills. (self-fulfillment motive) To diversify risk and minimize costs of financial distress and bankruptcy. (job security motive) To avoid being taken over. (job security motive) The managerial wealth perspective motive is one of survival. Not only do managers tend to seek motivation from sustained growth but also seek job security. Managers unlike shareholders cannot diversify to spread their risks since they are tied to one company. If that company is acquired, managers have a high probability of losing their jobs. A study conducted by Firth (1991) tests to see if executive reward increases when an acquisition takes place. In a sample of 254 UK takeover offers during 1974-1980 found that the acquisition process leads to an increase in managerial remuneration, and that this is predicated on the increased size of the acquirer and concludes that the evidence is consistent with takeovers being motivated by managers wanting to maximize their own welfare'(Firth, 1991). Agency conflicts arise whenever differing incentives cause managers to take actions that benefit themselves but harm shareholders. In the context of acquisitions, agency conflicts may lead to a reduction in shareholder wealth if managers pursue expansion for nonprofit-maximizing reasons. According to past literature, large target shareholder wealth gains are experienced during the announcement of a takeover and large shareholder wealth losses occur when a takeover bid fails (Jensen and Ruback, 1983). This implies that target management interests are not always achieved by accepting bid offers. In addition, target managers may lose compensation and other perks if they are replaced after a successful bid offer. These findings are also confirmed by Walkling and Long (1984) and Martin and McConnell (1991), all of whom reported above-average managerial turnover after a successful takeover bid. The study findings show that in addition to lost compensation, managerial turnover may also be a ssociated with loss of status. Martin and McConnell (1991) further go on to say that the mergers and acquisitions market plays an important role in controlling the non-value maximizing behavior of managers of large corporations. As shown from the literature above, the shareholder wealth perspective and managerial wealth perspective may conflict with one another. With respects to mergers and acquisitions, the managerial motives and a mangers reaction to a takeover bid may have an impact on the shareholder wealth maximization criterion. The extent to which it would impact shareholder value will be decided by the amount of control managers have within the organization. 2.3 Post Merger Performance Debate (Targets and Bidders) There has been considerable interest in the post merger performance on shareholders returns in the target and bidder firms. Typical findings by researchers show three patterns: (1) target shareholders earn significantly positive abnormal returns from all acquisitions, (2) acquiring shareholders earn little or no abnormal returns from tender offers and (3) acquiring shareholders earn negative abnormal returns from mergers. Overall, the results of post merger performance have been mixed. According to Langetieg (1978) and Asquith (1983), their research concluded that acquired firms experience significantly negative abnormal returns over one to three years after the merger. In the research study conducted by Agrawal, Jaffe and Mandelker (1992) titled The Post-Merger Performance of Acquiring Firms: A Re-examination of an Anomaly found that stockholders of acquiring firms experience a statistically significant wealth loss of approximately 10% over five years after the merger completion date. Research conducted by Franks, Harris and Titman (1991) found that no significant underperformance of stockholders returns exist over a three year period after the acquisition. Franks et al concluded that the previous findings of poor performance post-acquisition were likely to be due to benchmark errors rather than inconsistencies with the Efficient Market Theory (EMH) or mis-pricing at the time of the takeover. Similar results that underperformance of stockholders returns do not exist over a three year period after acquisition is also concluded by Bradley and Jarrell (1988). A few studies have analyzed value gains during merger and acquisitions with respect to various classes of merging firms security holders. A study was carried out by Dennis and McConnell (1986) namely, Corporate Mergers and Security Returns and their results indicated mergers on average to be value creating activities for the acquired and the acquiring company individually. They found by other previous studies that on average common stockholders of acquiring firms earn positive returns but are usually not statistically significant. Their results also indicated that convertible preferred stockholders (of acquiring firm) received positive and statistically significant returns post-merger; however, non-convertible preferred stockholders received positive but not statistically significant returns post-merger. The combination of the above mentioned results lead to an overall increase in the value of the firm therefore presenting us with the reason as to why corporations go ahead with merge rs which do not earn statistically significant returns to common stockholders of the acquiring firms. Research results by Asquith and Kim (1982) also confirm what other investigators found for mergers: abnormal returns to the common stocks of acquired firms are positive and statistically significant; abnormal returns to the common stock of acquiring firms are not significantly different from zero. In the study Do Long-term Shareholders Benefit Corporate Acquisitions? by Loughran and Vijh (1997), found that post acquisition returns of acquirers stock are related to both the form of payment as well as the mode of acquisition. They concluded in the overall sample of 947 cases, acquirers that make merger bids earn, on average, 15.9 percent less than matching firms whereas acquirers that make tender offers earn 43.0 percent more than matching firms during a five-year period after acquisition. In addition, stock acquirers earned 24.2 percent less however cash acquirers earn 18.5 percent more with respects to matching firms. Furthermore, conclusions show that during a five year period following the acquisition, on average, firms t Effect of MA Strategy on Shareholder Value Effect of MA Strategy on Shareholder Value The aim of this project is to examine whether the decision of large UK companies looking to pursue a merger/acquisition strategy will affect shareholder value. The data analyzed in this study will determine if there is a positive or negative correlation in shareholder wealth when a merger/acquisition occurs. The research for this project will be conducted through the analysis of 40 different large UK companies that were merged or acquired by other UK based firms prior to 2002. The data will be obtained from the Bloomberg website. Further research and analysis on the topic will include information obtained from books, journals and reliable internet sources. To test the value of shareholder wealth when a merger/acquisition is pursued, different models will be used which includes Capital Asset Pricing Model, Efficient Capital Markets, Equilibrium Models, and Market Model (Event Studies and Abnormal Returns Methodology). The hypothesis that will be tested in this study is: H0 = If managers of large sized UK companies pursue a merger and acquisition strategy then shareholder wealth (value) will increase. H1 = If managers of large sized UK companies pursue a merger and acquisition strategy then shareholder wealth (value) will remain unchanged or will decrease. The first chapter will give a brief overview of mergers and acquisitions and introduce the reader to recent merger trends in the UK and different types of takeovers. The second chapter will be an in-depth analysis of past research studies which includes: examining different ways a company pays for a bid in a merger, exploring shareholder and managerial wealth perspectives, and analyzing long term post-merger performance of target and bidder firms. Chapter three presents the research methodology used in wealth gain studies and also states the methodology adopted for this dissertation. Chapter four analyzes and discusses the findings in context to wealth gain effects of mergers and acquisitions among the large UK companies chosen for this study. Chapter five concludes this research and highlights possible areas that may require further investigation. EXECUTIVE SUMMARY Mergers and acquisitions have become important events in todays rapidly changing business environment and have been the subject of many research studies. Reasons as to why companies may pursue a merger or acquisition strategy could be to reduce costs to achieve economies of scale or to reduce competition due to increased market power. Mergers and acquisitions have also been known to facilitate entry into new markets or industries and increase the level of effectiveness in a company by eliminating inefficient management. Mergers and acquisitions worldwide have tended to follow a pattern of waves, with there being periods of frantic takeover activity followed by relatively calmer periods. The main objective of financial theory is to maximize shareholder wealth therefore all decisions are taken with the aim of maximizing shareholder value. The purpose of this research is to re-examine the shareholder wealth gain criterion with regards to mergers and acquisitions within the United Kingdom. The objective of this study is to find out if shareholders of large UK companies benefit from the acquisition decisions made by the managers. Past research studies on post-acquisition performance of acquiring and target firms have mixed results. To determine if there is an increase or decrease in shareholder value from corporate takeovers, the Market Model and Event Study Methodology will be used in this study. The hypothesis developed in this study aims to support the argument that mergers and acquisitions are profitable events and lead to an increase in shareholder value. This study however concluded that merger and acquisitions among the large UK organizations chosen did not lead to an increase of shareholder value for both target and bidder firms. These results might not be entirely accurate due to various reasons such as size effects and the firms chosen in this study are from different industries. Other factors such as acquisition financing and acquisition motives also may have an effect on shareholder value however the testing of these factors is outside the scope of the following study. CHAPTER 1: OVERVIEW OF MERGERS AND ACQUISTIONS The following chapter briefly examines the benefits that a merger is expected to generate for both the target firm and the acquiring firm. The historical pattern of takeover activity in the UK from 1964-1992 is discussed to show merger and acquisition (MA) trends and recent MA activity abroad and within the UK will also be highlighted among large UK companies in 2008. In addition, the definition of mergers and acquisitions is provided and the second part of chapter one introduces the reader to different types of mergers used to create value for an organization. 1.1 Benefits to Mergers and Acquisitions Activity The main objective for an acquiring firm is to grow and expand its assets, sales and market shares. Other specific reasons for entering into a merger bid are reflected in the benefits that are expected to be generated which include: Exploiting scale economies Obtain synergy Enter into new markets To restore growth impetus To acquire market power To reduce dependence on existing or perhaps risky activities With the above mentioned benefits to MA activity, it should also be noted that takeovers most likely to succeed are those approached with a strategic focus, incorporating a detailed analysis of the objectives of the takeover, the possible alternatives and how the acquired company can be integrated in the new parent (Pike and Neale). 1.2 Trends in UK Merger Activity There has been an increasing trend of MA activity in the UK over the past few decades, with there being periods of high takeover activity followed by relatively slower periods as can be seen by the graph below. Figure 1.0 History of UK MA Activity Source: National Statistics, 2002 The highest peaks in takeovers are during the period 1984-1989. During this time, the average size of an acquisition had grown significantly from 9.64 million to 20.38 million. As per Sudarsanam (1995) the main reason for this was because the stock market in the UK, along with the harmony with the rest of the world stock markets experienced a strong bull phase which culminated in the October 1987 crash. Furthermore, the 1980s also experienced divestments on a large scale which meant companies would sell off divisions or subsidiaries to other firms of the divested parts in a management buyout. This increase in acquisitions and divestments had shown significant amount of corporate restructuring in the UK and thus led to new organizational innovations such as management buyouts and management buyins, as well as by financial innovations like high-leverage buyouts and mezzanine finance (Sudarsanam, 1995).As can be seen from the graph above, the UK MA market has experienced a relatively le aner period, which has continued till date. The main reasons that can be attributed to this are the various world catastrophes and the overall global economic slowdown. As per the office of National Statistics, the largest significant transaction recorded during the first quarter of 2008 was the acquisition by Imperial Tobacco Group Plc of Altadis S.A. for a press reported value of 9.3 billion. Another significant transaction was the acquisition by Carillion Plc of Alfred McAlpine Plc for a reported value of approximately 0.5 billion. For quarter one in 2008, the number of transactions reported for acquisitions in the UK by UK companies has been the lowest reported since quarter one 2003. Other recent major UK mergers acquisitions (2008) are as follows: Table 1.0 Recent Acquisitions in the UK by UK Companies Company Value in million Carillion Plc acquiring Alfred McAlpine Plc 554 Willmott Dixon Ltd acquiring Inspace Plc 133 easyJet Plc acquiring GB Airways Ltd 104 iimia MitonOptimal Plc acquiring Midas Capital Partners Ltd 100 Source: National Statistics, 2008 Table 2.0 Recent Acquisitions abroad by UK Companies Company Value in million Imperial Tobacco Group Plc acquiring Altadis S.A. 9339 Reckitt Benckiser Group Plc acquiring Adams Respiratory Therapeutics 1100 Scottish and Southern Energy Plc acquiring Airtricity Holdings Ltd 808 SABMiller Plc acquiring Koninklijke Grolsch N.V 606 Ineos Group Ltd acquiring Kerling AS 429 429 Standard Chartered Plc acquiring American Express Bank Ltd 413 Kesa Electricals Plc disposing of BUT SAS 389 Source: National Statistics, 2008 1.3 Definitions and Different Types of Mergers and Acquisitions Although the terms merger, acquisition and takeover are used interchangeably, technical differences do exist. A merger is when corporations come together to combine and share their resources to achieve a common set of objectives (Sudarsanam, 1995). The shareholders of the two combined corporations will continue to be joint owners. An acquisition is when one firm purchases the assets or shares of another firm however the shareholders of the acquired firm continue being owners of that firm. A takeover is the acquisition by one company of the share capital of another in exchange for cash, ordinary shares, loan stock or a combination of these (Pike and Neale). This distinction between the three terms is important in certain contexts however they are used by researchers and authors interchangeably. In the following dissertation, I too will use these three terms interchangeably. There are different types of mergers that exist to create value and are classified into three main categories: horizontal, vertical and conglomerate (Pike and Neale). Horizontal integration: this is when a company takes over the target firm from the same industry and at the same stage of the production process. Vertical integration: where the target is in the same industry as the acquirer however is operating at a different stage in the production process. This can be either close to the source of materials (backward integration) or close to the final customer (forward integration). Conglomerate integration: occurs when the target is in a business that is different to the acquirer. The reasons a firm may undergo a conglomerate merger is to reduce risk through diversification, opportunities for cost reduction and improving internal and external efficiencies. In order to understand whether mergers and acquisitions create or destroy shareholder value, it is important to appreciate and understand few critical aspects of the complex MA theory. The three areas in helping to answer this question with respects to the impact of shareholder value in my opinion are different modes of financing mergers and acquisitions, motives for MA activity and post-merger performance. Various researchers in the finance field have conducted a great amount of research on the above mentioned areas and this dissertation will help put into perspective mergers and acquisitions impact on shareholder value currently in the UK. CHAPTER 2: BACKGROUND OF STUDY Mergers and acquisitions are undertaken as a means of corporate growth and expansion but are also an alternative to growth through internal or organic capital investment. The immediate objective of an acquisition is self-evidently growth and expansion of the acquirers assets, sales and market share (Sudarsanam, 1995). Another objective of acquisitions would be to increase the growth of shareholders wealth aimed at creating a strong competitive advantage for the acquirer. In modern finance theory, shareholder wealth maximization is a strong rational for financing and investment decisions made by management. This leads to the question of wealth gain effects of mergers and acquisitions, specifically among large UK companies. The following chapter introduces various literature regarding wealth gain effects of mergers and acquisitions and highlights the various aspects of mergers and acquisitions which may have an effect on the shareholder value within large UK corporations. 2.1 Modes of Acquisition Financing There are various modes of financing a takeover which includes: cash (preferred method), issuing of ordinary shares and fixed interest securities (loan stock, convertibles, and preference shares). The way in which a merger and acquisition is financed has different benefits to the target shareholders and bidder shareholders. In addition, cash takeovers may be sufficiently different from non-cash acquisitions and failure to distinguish between them may lead to inappropriate generalizations (Carleton et al, 1983). As per Sudarsanam (1995), there are various ways a firm can bid an acquisition, which is shown in Table 3.0. Table 3.0 Bid Financing Bidder Offers Target shareholders receive Cash Cash in exchange for their shares Share Exchange A specified number of bidder s shares for each target share Cash underwritten share offer (vendor placing) Bidders shares, then sell them to a merchant bank for cash Loan stock A loan stock/debenture in exchange for their shares Convertible loan or preferred shares Loan stock or preferred shares convertible into ordinary shares at a predetermined conversion rate over a specified period Deferred payment Part of consideration after a specified period, subject to performance criteria Source: Sudarsanam (1995, p.177) In addition, a bidder making cash offer can finance it from one or more of the following sources (Sudarsanam, 1995): Internal operating cash flow A pre-bid rights issue A cash underwritten offer, e.g. vendor placing or vendor rights A pre-bid loan stock issue Bank Credit A cash offer has two advantages from the point of view to both the target and acquiring shareholders which includes (Pike Neale, 1999): The amount is certain; there is no exposure to the risk of adverse movement in share price during the course of the bid. The targeted shareholder is more easily able to adjust his or her portfolio than if he or she receives shares, which involve dealing costs when sold. Because no new shares are issued, there is no dilution of earnings or change in the balance of control of the bidder. In terms of shares being used as a medium of exchange again there are some advantages to both target as well as acquiring shareholders (Arnold, 2002) which are: For target shareholders use of shares helps avoid capital gains tax. Target shareholders maintain an interest in the combine entity thus helping preserve as well as increase shareholders value. Acquiring shareholders gain from the fact that there is no immediate cash outflow. Nickolaos Travlos (1987) study titled Corporate Takeover Bids, Method of Payment, and Bidding Firms Stock Returns was to examine the role of the method of payment in determining common stock returns of bidding firms at the announcement of takeover bids. The analysis in the study was to show the valuation effects on two common methods of payment which are common stock exchanges and cash offers. The results showed that bidding firms had normal returns in cash offers however experienced significant losses in pure stock exchange acquisitions. Other literature studied by Asquith and Mullins (1986), Kalay and Shimrat (1987), Masulis and Korwar (1986) and Mikkelson and Partch ( 1986) show that common stock issues have negative stock price when there are new common stock offerings. These results were supported by various other studies such as Henri Servaess (1991) study titled Tobins Q and gains from takeovers. Agrawal, Jaffe and Mandelkar (1992) found post-acquisition returns to be lower fo r share-financed acquisitions in comparison to cash-financed acquisitions. They further went on to prove that shareholders of acquiring firms suffered a statistically significant loss of about 10% over the five-year merger period. The bidding firms method of payment provides valuable insight to the market. If the bidding firms managers possess information about the intrinsic value of their firm, independent of the acquisition, which is not fully reflected in the pre-acquisition stock price, they will finance the acquisition in the most profitable way for the existing stockholders (Travlos, 1987). Myers and Majluf (1984) model states that management will prefer cash offerings if they believe their firm is under-valued however a common stock exchange offer will be preferred if they believe their firm is over-valued. In addition, market participants will strongly favor a cash offer as good news while the opposite holds true for a common stock exchange about the bidding firms true value. If such information is important in the market, then the bidding firms stock price change at the proposals announcement will reflect both the gain from the takeover (weighted by the probability that the takeover bid will go throug h) and the information effects (Nickolaos, 1987). Jensen and Ruback (1983) state that most tender offers are financed by cash however merger proposals are financed by the exchange of common stock therefore the information argument states that larger target residuals occur in tender offers rather than in mergers. In their study conducted, they determined that for mergers, the weighted abnormal target firm return is 16.3% over the month before announcement however for tender offers; the weighted target return is 30.9% over the two-month period surrounding the announcement dates. Cash is by far the most widely used form of payment in mergers and acquisitions. There are many reasons as to why there is an increased use of cash in financing mergers. One possible explanation for the increasing use of cash depends on market imperfections and/or agency considerations (Carleton et al, 1983). Another reason for why bidding firms use cash in financing mergers is the increase in the number of hostile mergers. Cash not only signals a high value for the target, but also preempts other firms from bidding (Martin, 1996). These findings were also found in the literature of Eckbo, Giammarino and Heinkel (1990) which include a role for mixed financings in which higher-valued bidders are more likely to use more cash to finance the acquisition. As can be seen from the literature above the mode of payment in an acquisition may be driven by various motives and can have various effects on the bidders and acquirers stock price. This can have a major impact on shareholder value during corporate acquisitions as well as value gain studies. A study by Loughran and Vijh (1997) formed an association between the mode of acquisition (merger and tender offer) and the method of payment (cash or stock). They studied this relationship in the context of wealth gains from acquisitions and concluded that the post-acquisition returns of acquirers are related to both the mode of acquisition as well as form of payment. This was also proved by various other researchers (mentioned above) thus making the method of payment during an acquisition all the more important. Reason being, post-acquisition returns are what tend to effect shareholder value the most therefore the knowledge and distinction of the various modes of financing an acquisition is ve ry relevant and essential. 2.2 Motives for Mergers Acquisitions A Dual Perspective Tender offers allow for an in-depth analysis of agency relationships since the best interests of the principal (target firm shareholders) and agent (target firm managers) are often in conflict. Managers of the target firm are often in conflict of interest between their fiduciary responsibilities to the shareholders and their own personal wealth. For this reason, tender offers allow for the analysis of agency conflicts between shareholders and management of the target firm. According to Sudarsanam (1995) there are two main perspectives for acquisition motives which are: Shareholder wealth maximization perspective Under the shareholder wealth maximization perspective, all firms decisions including acquisitions are made with the objective of maximizing the wealth of the shareholders of the firm. In mergers and acquisitions, management of the target firm will oppose bidding firms to takeover if they believe this action would not be in the best interest of its shareholders. Target managers that oppose a bid defend their reasoning by claiming that the bid price is not adequate enough. Managerial wealth perspective Under the managerial wealth perspective, target managers may face an uneasy choice between obligations to current shareholders and those who aspire to such a position (Walkling and Long, 1984). For many target managers, if they sense a possibility of a loss in compensation from the merger or acquisition, conflict of interest will then increase. If self interest is pursued by target managers, there is a possibility that a bad acquisition may occur and/or a loss of shareholder wealth. According to Sudarsanam (1995), managers may undertake acquisitions for the following reasons: To pursue growth in size of their firm, since their salary, prerequisites, status and power are a function of firm size. (Empire-building syndrome) In order to deploy their currently underused managerial skills. (self-fulfillment motive) To diversify risk and minimize costs of financial distress and bankruptcy. (job security motive) To avoid being taken over. (job security motive) The managerial wealth perspective motive is one of survival. Not only do managers tend to seek motivation from sustained growth but also seek job security. Managers unlike shareholders cannot diversify to spread their risks since they are tied to one company. If that company is acquired, managers have a high probability of losing their jobs. A study conducted by Firth (1991) tests to see if executive reward increases when an acquisition takes place. In a sample of 254 UK takeover offers during 1974-1980 found that the acquisition process leads to an increase in managerial remuneration, and that this is predicated on the increased size of the acquirer and concludes that the evidence is consistent with takeovers being motivated by managers wanting to maximize their own welfare'(Firth, 1991). Agency conflicts arise whenever differing incentives cause managers to take actions that benefit themselves but harm shareholders. In the context of acquisitions, agency conflicts may lead to a reduction in shareholder wealth if managers pursue expansion for nonprofit-maximizing reasons. According to past literature, large target shareholder wealth gains are experienced during the announcement of a takeover and large shareholder wealth losses occur when a takeover bid fails (Jensen and Ruback, 1983). This implies that target management interests are not always achieved by accepting bid offers. In addition, target managers may lose compensation and other perks if they are replaced after a successful bid offer. These findings are also confirmed by Walkling and Long (1984) and Martin and McConnell (1991), all of whom reported above-average managerial turnover after a successful takeover bid. The study findings show that in addition to lost compensation, managerial turnover may also be a ssociated with loss of status. Martin and McConnell (1991) further go on to say that the mergers and acquisitions market plays an important role in controlling the non-value maximizing behavior of managers of large corporations. As shown from the literature above, the shareholder wealth perspective and managerial wealth perspective may conflict with one another. With respects to mergers and acquisitions, the managerial motives and a mangers reaction to a takeover bid may have an impact on the shareholder wealth maximization criterion. The extent to which it would impact shareholder value will be decided by the amount of control managers have within the organization. 2.3 Post Merger Performance Debate (Targets and Bidders) There has been considerable interest in the post merger performance on shareholders returns in the target and bidder firms. Typical findings by researchers show three patterns: (1) target shareholders earn significantly positive abnormal returns from all acquisitions, (2) acquiring shareholders earn little or no abnormal returns from tender offers and (3) acquiring shareholders earn negative abnormal returns from mergers. Overall, the results of post merger performance have been mixed. According to Langetieg (1978) and Asquith (1983), their research concluded that acquired firms experience significantly negative abnormal returns over one to three years after the merger. In the research study conducted by Agrawal, Jaffe and Mandelker (1992) titled The Post-Merger Performance of Acquiring Firms: A Re-examination of an Anomaly found that stockholders of acquiring firms experience a statistically significant wealth loss of approximately 10% over five years after the merger completion date. Research conducted by Franks, Harris and Titman (1991) found that no significant underperformance of stockholders returns exist over a three year period after the acquisition. Franks et al concluded that the previous findings of poor performance post-acquisition were likely to be due to benchmark errors rather than inconsistencies with the Efficient Market Theory (EMH) or mis-pricing at the time of the takeover. Similar results that underperformance of stockholders returns do not exist over a three year period after acquisition is also concluded by Bradley and Jarrell (1988). A few studies have analyzed value gains during merger and acquisitions with respect to various classes of merging firms security holders. A study was carried out by Dennis and McConnell (1986) namely, Corporate Mergers and Security Returns and their results indicated mergers on average to be value creating activities for the acquired and the acquiring company individually. They found by other previous studies that on average common stockholders of acquiring firms earn positive returns but are usually not statistically significant. Their results also indicated that convertible preferred stockholders (of acquiring firm) received positive and statistically significant returns post-merger; however, non-convertible preferred stockholders received positive but not statistically significant returns post-merger. The combination of the above mentioned results lead to an overall increase in the value of the firm therefore presenting us with the reason as to why corporations go ahead with merge rs which do not earn statistically significant returns to common stockholders of the acquiring firms. Research results by Asquith and Kim (1982) also confirm what other investigators found for mergers: abnormal returns to the common stocks of acquired firms are positive and statistically significant; abnormal returns to the common stock of acquiring firms are not significantly different from zero. In the study Do Long-term Shareholders Benefit Corporate Acquisitions? by Loughran and Vijh (1997), found that post acquisition returns of acquirers stock are related to both the form of payment as well as the mode of acquisition. They concluded in the overall sample of 947 cases, acquirers that make merger bids earn, on average, 15.9 percent less than matching firms whereas acquirers that make tender offers earn 43.0 percent more than matching firms during a five-year period after acquisition. In addition, stock acquirers earned 24.2 percent less however cash acquirers earn 18.5 percent more with respects to matching firms. Furthermore, conclusions show that during a five year period following the acquisition, on average, firms t