Saturday, August 31, 2019

Catch the Moon

Imagery is an important part of the novel story â€Å"Catch the Moon† by Judith Ortiz Cofer. The The story is about a trouble maker named Luis Cintron who has just gotten home from juvenile hall. Luis works in his father’s junkyard; he is not the happiest teenager doing that job. The author uses the literary element imagery to allow the reader to experience what Luis is experiencing. The author states, â€Å"She stood in the sunlight in her white sundress waiting for his father, while Luis started. She was like a smooth wood carving. Her skin was like mahogany color. † She is being Described as a dark skinned, graceful girl in a white dress. This description involves the sense of sight. The reader can picture Noami perfectly. (Pg. 64) The text states perfectly, â€Å"Eat the yellow rice and red beans, the fried chicken, mouth watering sweet plantains that his mother had cooked for them. † The description gives the reader an example of the color, flavor, and smell of the food. The author uses imagery to engage the reader’s sense of taste in the story. (Pg. 66) The story appeals to the sense of touch when the author states, â€Å"When it was almost midnight, Luis’s hands were cut bruised from his work†. This demonstrates imagery involving touch and the reader Imagines how Luis’s hands were cut, and bruised from his work. The imagery referring to touch is a great example of how things can be imagined in the reader’s head. Pg. 68) In conclusion, â€Å"Catch the Moon† is a story full of imagery. Luis is attracted by Naomi, she gets described really well, she helps Luis stay out of trouble and to stay on the right path. The food in the story was described in a great imagery of taste and smell. The imagery the author uses for touch gives the reader an idea of how Luis go cut and bruised. Using imagery in the story is a good way to read the experience of the characters.

Friday, August 30, 2019

Illusions Brownies ZZ Packer Analysis Essay

The Brownies description of troop 909 â€Å"They were white girls, their complexions a blend of ice cream: strawberry, vanilla in the first few lines it is very clear that racial issues and segregation is a main topic. The author ZZ Packer did a great job stating since the beginning that the stories was going to be confrontational â€Å"Troop 909 was doomed from the first day of camp;† Segregation is also still happening during this time since there is no diversity in the members of the each troop, one is all African American and the other is all Caucasian girls. The girls immediately start being rude and negative with the white girls calling them â€Å"wet Chihuahuas† that they smelled bad. The brownies are not interested in even getting to know the girls. No matter what the white girls would do, the brownies would be annoyed regardless. You can tell that the girls are very unaware color/race since there fourth grade class started using â€Å"Caucasian† as a jo ke whenever the kids felt it fit in. Also stating that â€Å"Whites were like baby pigeons: real and existing, but rarely seen or thought about. During the time this story takes place segregation and racism was still very much alive blacks and whites only understood their own point of views and reacted by being closed minded on the issue. This is apparent in Brownies since the story is told from a child’s perspective and usually kids form certain opinions based on their parent’s reaction of a subject or belief. The confrontation is promised in the part when Octavia commanded that every girl in the brownie troop by no means allow absolutely any one to disrespect any other the members by calling them â€Å"niggers.† Later that day one Arnetta says she heard one of the girls from troop 909 call them a â€Å"nigger.† At first one did not seem too concerned but as the day went on the thought had simmered inside her and she wanted some form of revenge. ZZ Packer showcases the Brownies secret racial hatred for the white girls through ironic humor. She transmits hidden philosophical messages to the reader through her words. While explaining the significance of a secret meeting, she also talks about the meaning of a secret saying, â€Å"A secret meant nothing; it was like gossip: just a bit of unpl easant knowledge about someone who happened to be someone other than yourself†. This is an effectual use of dramatic irony because the definition Packer provides for â€Å"gossip† is the basis of the entire story. The Brownies creates the lie that one of the white girls used the racial slur â€Å"nigger† and this drives the rest of the story. Racism is also very  apparent in the story line at no giving point in the story do you read anything about the scouts doing an activity together or mingling. Its this way it keep the animosity building up. The white girls seemed to always be the first ones doing everything. It demonstrate in a subtle way that they are superior than the black girls to us the reader. Whites are viewed as the better race in an all African American community. Everything about the girls in troops 909 radiate beauties that result in an envy and hatred from the brownies. â€Å"Their long, shampoo-commercial hair, straight as spaghetti from the box† such phrases are triggers that add up to bringing out racism. ZZ packer demonstrates how we are all in a way deprived and unfortunate. The curve ball in the plot where the brownies encounter troop 909 and they discover that the girls are mentally challenged, put out in the open the unfairness and injustice experienced by society. The irony lies in that the brownies are now superior to the white girls because of their condition. It is interesting how from the beginning of the story we are made aware of Laurel feelings towards her father. Laurel was so captivated by Daphne’s poem â€Å"you are my father the veteran†. Laurel probably feels very proud of her father and the positive role he plays in her life. Once she started telling the girls about the story of the Mennonites. â€Å" I now understood what he meant, and why he did it, though I didn’t like it†. As laurel keeps telling the girls about her father’s action. An epiphany happened to her. Her father was doing the same things the Mennonites even though they were painting his porch he was not nice to them. It implies the insensibility people have to chosen to adopt when it comes to living peacefully with other races. Using irony and contrast, ZZ Packer tells us that it is unimaginable to find perfection in our world or an individual. no one is perfect and it is this inevitable imperfection of life that inflicts deprivation and misfortune in human lives.

Thursday, August 29, 2019

Walmart Store Analysis

Wal-Mart, â€Å"Always Low Prices, Always.† It is well known that one of the great keys to Wal-Mart’s formidable success is its lower-than-low cost of doing business. Wages in particular are as low as can be. Minimum wages and minimum benefits: that’s the way Wal-Mart stays ultra competitive.This report examines the state of Wal-Mart’s business practices and its effect on the economy. It will describe Wal-Mart as a non-union employer, paying lower wages to their employees than other retail and grocery stores. They do not offer benefits to all employees and most are unable to afford them.Between Wal-Mart’s business practices in increasing their profits and the need to recognize their social and ethical responsibilities, Wal-Mart needs to find a comfortable balance of profitability and responsibility in order to improve their reputation.During the process of writing this report, we found that there was much more information to be discussed about Wal-M art’s unethical business practice than what was reported. We also wanted to point out that although all companies do everything possible to lower their costs and maintain high production rates, Wal-Mart has crossed the line over the years by managing their profits in unethical ways compared to other large corporations who have been ethically and successfully managing their business practices. Information that can be found on Wal-Mart is changing everyday and it was  sometimes difficult to keep up.EXECUTIVE SUMMARYWal-Mart has been recognized as the leader in its industry and the largest company in the nation. With its powerful profit making abilities, Wal-Mart has grown from a local corner store to the money making â€Å"monster† it is today. The company has damaged its reputation over the years due to unethical choices made by its top executives. As a result, its anti-union stance has been singled out on issues concerning benefits, wages, and overall business practi ces.When reviewing Wal-Mart’s financial statements, one would be overwhelmed to see such high performances; but when you are a Wal-Mart employee, it is no surprise why that is true. Employees have been denied opportunities of advancement and pay raises. Lawsuits have been pending against the company with employees claiming they have been denied promotion opportunities in the company due to their gender, and some employees have sued for being over-worked and under paid.Wal-Mart has become so big in its industry, that it has lowered the wages through out the country and has influenced economic change. Since most of Wal-Mart’s employees live below the poverty line, it is difficult for them to afford health insurance when deductions out of their paychecks are sometimes as high as 33%. A Wal-Mart employee who obtains health insurance would have a very difficult time raising a family with this kind of premium. Wal-Mart employees are unable to receive healthcare benefits beca use the cost is too high and their wages are low.As a result, employees face a difficult time deciding whether to sacrifice such a large portion of their pay to obtain health insurance; in most cases Wal-Mart employees persist without health coverage. Deductions for health insurance are higher for Wal-Mart employees than other national retail employees. A Wal-Mart employee pays about 25% more for health insurance than the average retail worker. Wal-Mart has also been opposed by its female employees, who make up two-thirds of its workforce.Women have been discriminated in wage and have been denied any advancement to upper managerial positions – dominated my men. Men make approximately 5%-15% more than women and have a higher chance of advancing to a better position. Dukes vs. Wal-Mart, filed in 2001, was the largest lawsuit against a private employer in the nation and represented 1. 6 million female employees who were discriminated based on their sex. From lawsuits to employee complaints, Wal-Mart has been faced with a great deal of difficulties that have developed through their own unethical business practices.Although every company’s goal is to lower costs and produce large numbers, Wal-Mart has made sky-rocketing profits by unethically hurting its employees and cutting down their wages. Many question why Wal-Mart, the richest retailer in the world, chooses not to provide adequate wages or health benefits for its employees. If Wal-Mart were to reform its health benefits program, raise their product prices by as little as a penny, and create a bias free working environment for women, Wal-Mart would be in better terms with its employees and improve the reputation it sacrificed from the start.â€Å"SAVE MONEY, LIVE BETTER†, NOT ON WAL-MART WAGESINTRODUCTION BackgroundWal-Mart, the large international discount chain was founded by Sam Walton. On May 5, 1950, Walton purchased a store in Bentonville, Arkansas, and opened Walton’s 5 & 10. Little did the small town residents know that they would later become the headquarters for the world’s largest retailer store in the U. S. Through his savvy, and sometimes unusual, business practices, he and his associates led the company forward for thirty years.As Wal-Mart grew into a global corporation it is today, it has dealt with a great deal of criticism by outsiders. Wal-Mart’s ethical citizenship has been questioned numerous times and researched by many. There have been many doubts about Wal-Mart’s business integrity and questions whether their practices are ethical or not. Wal-Mart has faced, and is still facing, a significant amount of controversy over several different issues.Wal-Mart has been caught bribing its employees, discriminating against women, denying its employees of training or promotions, paying low wages, and providing high deductibles for health insurance. Wal-Mart is now paying the consequences and need to become socially responsible in order to maintain a better reputation with society. Although consumers are reeled in with the low prices Wal-Mart has to offer, others feel their ethical beliefs are more important than saving a quick buck.Statement of Purpose The purpose of this report is to examine Wal-Mart’s unethical business practices with a focus on employee wages and high health care deductibles. The report will question Wal-Mart’s aptitude to sell products cheaper than any of its leading competitors and yet maintain making a substantial amount of profit. The report will analyze the unethical practices that have developed through Wal-Mart’s history as a result of focusing on high productivity and profit making strategies.Scope The report will describe Wal-Mart’s unethical business practices that affect its employees. It will examine Wal-Mart’s unethical behavior in conducting business with an overall focus on employee wages.Limitations Time constraints have limited the ex tent of the research. There is a vast amount of information regarding this issue and we are unable to report it all. In addition, no funds are available to conduct primary research.Methods of Research The method of research for this paper was secondary research through databases, internet websites, and books. The research databases of California State University, Los Angeles, will be used to locate articles in current and past publication. The databases used are Lexis/Nexis and  Business Source Premiere. Also libraries, such as the John F. Kennedy Memorial Library at California State University, Los Angeles and Los Angeles Public Library in Porter Ranch, California.The major findings of this study indicate that Wal-Mart being the world’s largest and richest retail chain is setting the standard on wages for retail workers and beyond. Because Wal-Mart has become so big, it has dragged down wages throughout the country. Wal-Mart has become what it is today by selling products at low prices and paying their â€Å"associates† even lower wages. Unhappy Wal-Mart workers complain as much about being over-worked as underpaid. Wal-Mart has its own stated policies at its employees’ expense. Wal-Mart pays it’s â€Å"associates† below basic living wage standards and even below poverty lines.Overworked and Underpaid EmployeesH. Lee Scott Jr. is the chief executive of the powerful corporation we call Wal-Mart. According to Mr. Scott, by selling vast quantities of goods at its trademark â€Å"Every Day Low Prices,† Wal-Mart has single-handedly raised America’s standard of living, saving consumers about $100 billion a year (Bianco 2). They feel that selling vast quantities of low price merchandise gives them the right to act as if they represent the American people. Scott states, â€Å"Wal-Mart also provides good jobs for hundreds of thousands of equally deserving employees, offers even part-time workers generous health insur ance and other benefits† (Bianco 2).He accuses greedy labor unions, inefficient supermarket chains, and other Wal-Mart opponents of distorting â€Å"the facts† to suit their own purposes. Wal-Mart insists on describing themselves as â€Å"pro-associate, not anti-union,† but is quick to suppress any and all attempts to have unions organize in its stores. In his book The Bully of Bentonville, Anthony Bianco describes how Wal-Mart has affected wages beyond their own company: Because Wal-Mart is so big, it has dragged down wages throughout the country.Economists at the University of California at Berkeley  found that Wal-Mart’s expansion during the 1990s cut the income of America’s retail employees by 1. 3 percent-or by $4. 7 billion in 2000 alone. What is more, the depressing effect of Wal-Mart’s expansion on payrolls extended well beyond retailing. According to a 2005 analysis by economists at the Public Policy Institute of California, take-h ome pay per person fell by 5 percent across the board following Wal-Mart’s entry into a country.The evidence â€Å"strongly suggest(s) that Wal-Mart stores lead to wage declines,  shifts to lower-paying jobs (or less skilled workers), or increased use of part-time workers. (4) Today, Wal-Mart is surrounded by controversy, but the greatest is from within. Unhappy employees are quitting and dozens of class-action lawsuits are pending against the company. Managers have been known to force employees to work extra hours without pay; either by eliminating breaks or by having them clock out and keep working â€Å"off the clock†. This is Wal-Mart’s way of saving on costs at the price of its employees. Store managers earn bonuses based on earnings.Since the corporation dictates the inventory and operating expenses, managers’ only control is labor costs. Joyce Moody, a former manager in Alabama and Mississippi, told the New York Times that Wal-Mart â€Å"threat ened to write up managers if they didn’t bring the payroll in low enough†. Depositions in wage and hour lawsuits reveal that company headquarters leaned on management to keep their labor costs at 8 percent of sales or less, and managers in turn leaned on assistant managers to work their employee’s off-the-clock or simply delete time from employee time sheet (ufcw.org).In the late 1990’s Wal-Mart’s annual turnover rate was a remarkably high 70 percent, 40 percent higher than in previous years (Slater 120). Wal-Mart does not see this as being a problem. The constant turnover reduces employees eligible for raises, promotions, benefits, and holds the average wage down. Just another way to keep payroll costs at a minimum.Employee WagesWal-Mart employs 1. 3 million workers in just the U. S. and operates more than 3,400 stores throughout the United States. A full time employee working 28- 40 hours a week at Wal-Mart is paid on an average of $250 a week. Be sides having low wages, those workers who are interested or eligible in obtaining health insurance for themselves or for their family pay high premiums and frequently don’t get the coverage they expect. The majority of Wal-Mart employees live below the poverty line and after making deductions in taxes and insurance coverage, a Wal-Mart employee’s salary is not enough to provide them a standard way of living.â€Å"The 2003 poverty guideline for a family of four is $18,400, $4,256 more than the $14,144 in earnings a full-time Wal-Mart worker earns at $8 per hour†¦ A household of four with a gross income of $23,920 or less could be eligible for food stamps -$9,776 more than a full-time, $8-an-hour Wal-Mart worker would earn in a year. † (www. aflcio. org) These numbers are even worst for part time workers. Today, one-third of Wal-Mart’s employees are part-time workers. They are limited to less than 34 hours of work per week and are not eligible for bene fits and must wait 1 year before they can enroll.Sex Discrimination in the Work PlaceIn addition to Wal-Mart’s low wages, its female workers are more disadvantaged and discriminated against in wage than its male workers. More than two thirds of Wal-Mart’s hourly employees are women and make up most of the lower wage positions which include: working the cash registers, stocking shelves and working the sales floor. Although men take responsibilities in these positions as well, the majority of men who work at Wal-Mart have positions as Management Associates or much higher ranked positions. Seventy-two percent of Wal-Mart employees are female and less than one-third of those women have management positions in the company.With that in mind, the average male employee was paid about $5,000 more in 2001 per year than the average female full-time employee. As Wal-Mart’s own workforce data reveals, women in every major job category at Wal-Mart have been paid less than men with the same seniority, in every year since 1997 even though the female employees on average have higher performance ratings and less turnover than men. (http://www. walmartclass. com).Dukes vs. Wal-Mart is said to be the largest and most famous gender discrimination lawsuit against a private employer and is the largest class-action suit in U. S. history, representing 1.6 million current and former female employees. Betty Dukes was the leading plaintiff in the case and sued Wal-Mart for sex discrimination; she was a fifty-four year old African-American woman who worked as a greeter for Wal-Mart.Factors such as seniority and performance were Wal-Mart’s main excuses and reasons that women earned from 5% to 15% less than men. It is disappointing to see that even the cashier positions, that are dominated by women, have men earning more than women. Wal-Mart not only overworks, under pays and discriminates against women, but it also provides neither childcare for workers or affor dable family health benefits.Unaffordable Healthcare DeductiblesWal-Mart employees are incapable of receiving healthcare benefits available for them because of its high cost and their low wages. Since most of Wal-Mart’s employees are unable to afford these health benefits, most of these individuals either turn to government aided insurance such as Medicaid, depend on their spouse’s plans, or expect to see a doctor in rare and emergency cases with no insurance. It is argued that uncovered Wal-Mart employees are not signing up for medical insurance and benefits because most of them exceed the income ceiling and are not eligible.Wal-Mart provides insurance for over 900,000 employees that are with and with out dependants. Employee premiums range between $143. 54 to $249. 71 per month for family coverage and $33. 04 to $72. 04 per month for single coverage. The National Average of workers covered by employer health insurance is 67 percent, and only 47 percent of Wal-Martâ⠂¬â„¢s employees are covered by the company’s health care plan. That is a huge gap when considering that each percent represents thousands of people.Most Wal-Mart employees have a difficult time deciding whether to attain health insurance or stay uninsured for the sake of saving money. ‘Cynthia Murray, who has worked at a Wal-Mart store in Laurel, Md. , for six years, suffers from asthma, but goes to see a doctor only when she suffers a bad attack. Murray is 50 years old, makes $9. 47 an hour, and says that the Wal-Mart plan that costs $23 a month has a $1,000 deductible, which makes it too expensive for her to use. Another plan subtracts $100 from her paycheck every two weeks.â€Å"I don't think anybody working at Wal-Mart has that kind of money,† says Murray. â€Å"All I'm asking from Wal-Mart is a fair share. †Ã¢â‚¬â„¢ (Gogoi). Many Americans question why Wal-Mart, one of the richest companies in the United States, can’t offer affordable health i nsurance and pay a living wage. Comparing Wal-Mart’s employee health benefits and wages to Costco’s employee health benefits and wages, one will notice that Costco not only pays its employees higher than Wal-Mart but their deductions are far less. â€Å"The average wage at Costco is $17 an hour†¦. a full-time worker at Wal-Mart makes $7.50 an hour on average.Costco workers pay just 8% of their health premiums, whereas Wal-Mart workers pay 33% of theirs. Ninety-one percent of Costco's employees are covered by retirement plans, with the company contributing an annual average of $1,330 per employee† (Cascio). Based on these facts, it is easy to say that Wal-Mart employees are giving up a large portion of their paychecks to obtain health care. Wal-Mart employees who do have health insurance and receive coverage are paying more in premiums but receive less for their money; in large corporations this has become a trend.New laws have been passed intended to force large corporations to control employee wages and reduce insurance deductibles. From law suits to employee complaints, Wal-Mart has recently thought of ways to reduce the cost of health benefits. The new plan would charge monthly premiums ranging from $25. 00 for individuals to $65. 00 for a family, making that 45-65% less than what employees contributed in the company’s existing plan. But it is not enough to reform the reputation Wal-Mart has lost or the vulnerable employees they let down.ConclusionsHigh productivity and lowering costs is one of the top and most important objectives in business. Wal-Mart being the World’s largest retailer can afford to pay their â€Å"associates† more than what the minimum wage offers. They are in fact, the richest retailer in the world and yet neglect to provide their employees affordable health care with a livable wage. Even if Wal-Mart was to pass 100 percent of the wage increase on to consumers, the average impact on a Wal-M art shopper would be quite small.Wal-Mart’s choice of action toward employee wages, health benefits, and bias work environment have not only brought an enormous shadow over its employees’ lives but also over its own big business reputation. The injustice decisions made through out the history of Wal-Mart has changed many lives and has forever changed the American economy. In the business world, there is big, and then there is Wal-Mart. Recommendations Based on the conclusions presented above, the following actions are recommended: 1. Retaining â€Å"associates† already on staff would be more cost affective then high employee turnover. 2. Train employees. Give the opportunity to advance and have freedom to associate and organize. 3. Our analysis reveals that establishing a higher minimum wage for large retailers like Wal-Mart would have a significant impact on workers living in poverty or near-poverty. 4. In order to increase employee satisfaction, reforming the cost of health insurance would help keep Wal-Mart in good terms with their employees. 5. If Wal-Mart was to raise their prices by as little as a penny to the dollar it would afford them to pay the higher wages. Higher wages provide the employees opportunity to afford health coverage. 6. Implementing fair employment and labor practices. In other words, â€Å"Obey the Law†.

Wednesday, August 28, 2019

Religious Groups Essay Example | Topics and Well Written Essays - 250 words

Religious Groups - Essay Example In America, religion forms a much more part of public life regardless of what the constitution dictates. Several reasons can be attributed to this. The main reason is that the evangelical Christians in the banner of the moral majority created a determined drive to influence American political leaders. This, therefore, injected religion into American political debates. The influence of religious groups in American politics has not changed over time. This is because religion has always been and is still embroiled in the political life of Americans. As a result, American politicians manifest the obvious significance of religion in everyday lives of people. Religion should be paramount in politics. Even with its weaknesses on a human level, the society would be more chaotic than the way it is presently, without religion. This is so because people, who oppose religion, intend to continue committing sins and wish not to be opposed to them. It would, therefore, be a tragic and profound mistake to attempt to separate religion or God from anything, especially

News Article related to Liquidated Damage Clause Essay

News Article related to Liquidated Damage Clause - Essay Example It often includes a reading that the parties involved in the contract are agreeing beforehand, as it would probably be unmanageable to decide the compensatory damages in the event of contract breach, although, such a statement is not mandatory. This clause may be conducted towards both parties involved in the contract. For instance in these words: "If both of us neglect to execute, one will be obliged to pay the other party $20,000." But it is not essential too. Normally, a liquidated damages clause is conducted towards only one party, along with the specified date of delivery of amount. The California Association of Realtors has provided a benchmark contract involving residential purchase that entails a liquidated damages clause that emphasizes that if a buyer failed to fulfill the completion of purchase contract due to fault by buyer, the seller will retain the amount deposited actually as the liquidated damages. The most noteworthy items in the mentioned clause include the asymmetry of the provision; as it puts the whole burden on one party, its limitation to a specific unit of residential property set by the Civil Code 1675 and the requirement of agreement by signing to ensure damages are paid. The signatory agreement is required to ensure that both parties have agreed that the contract has breached. Otherwise an arbitration or judicial decision will be needed. Initialling or signatory agreement on a liquidated clause is not mandatory but optional. Though it is printed priory in the agreement of CAR purchase, it is applicable only on the indication of both parties. Mostly in the encounter of a liquidating clause, a principle has the liability to inquire the meaning of the clause replied by the seller as defined by law. At times the contract has been breached by the buyer and this hurts the seller who desires to have more than the deposited amount so the inclusion of liquidated damage clause helps in

Tuesday, August 27, 2019

Effect on British Business for Joining Euro Zone Essay

Effect on British Business for Joining Euro Zone - Essay Example Labour Productivity: The output per worker is the ratio of total output and total employment and the unit labour cost is total labour costs-to-output. The output per worker has remained unchanged in the last two quarters but unit labour costs have increased by 0.3% in the last two quarters (ONS, 2011, p.8). Labour Disputes: These are associated with the strikes with respect to the terms and conditions related to employment. During the last 12 months before October 2011, there were 417,000 lost working days from 135 strikes (ONS, 2011, p.9). Unemployment: This measures the unemployed people who are actively seeking work and ready to join work immediately. The unemployment rate was up 40 basis points from previous year leading to 8.3% unemployment rate. The unemployed youth formed 22% of economically active population. As per the international guidelines, people in full-time education are unemployed if they are looking for jobs since last four weeks (ONS, 2011, p.11). It can be seen th at the public sector cutting of jobs has worsened the employment situation in Britain. The Conservative Party seeks to bring down the deficit to maintain the record low interest rates and avoid situations faced by Greece, Spain and Portugal (Politics.co.uk, 2011). Some people view the reasons for unemployment especially youth unemployment is because of too much reliance on unemployment benefits provided by the government and unwillingness to accept the jobs offered whereas the corporate sector believes the burden of red tape, taxes and minimum wages have tied up their businesses and prevented them from hiring more people (Palmer, 2011). Measures for Reducing the Unemployment There are three types of... Based on this research, the British economy has been affected at first due to joining the Euro Zone as the government has to cop up with the new policies of the regulatory body which make the laws for the Euro Zone. The British government has to incur certain costs for adopting with the new policies, for educate the people so that they can cop up with the new currency and new policies. Though the government had to face some initial costs but the economy are benefited from a long term view. The businessman of UK would get the new opportunity for enhance their business in the other Euro Zone countries. As the currency of 17 countries is same the transaction cost of the business has got lower. The interest rates of the country’s central banks getting lower, the mortgage also get down. Along with this the credibility of the Euro currency is improving as the same currency is used by 17 countries. The currency is not fluctuating as the previous so the investor doesn’t have to hedge their investment. The opportunity for the business owners is that they have access for a larger base of customers as well as they can utilize the larger workforce available to them. The British small and medium companies will have the opportunity to get the foreign funds as the transaction costs are not as high in the Euro Zone as there is the same currency operating in every country. The UK business owners can also have the ideas and the technologies which can enhance the revenue and subsequently profit of the company and thus the gross domestic product of the country can be improved.

Monday, August 26, 2019

INDIVIDUAL FASHION MARKETING PLAN Essay Example | Topics and Well Written Essays - 3000 words

INDIVIDUAL FASHION MARKETING PLAN - Essay Example ‘Valentino For All’, the planned brand extension based on diffusion strategy will endeavour to sell luxury products especially female related garments to young consumer segment i.e. teenage girls. The brand extension strategy would make use of social app to communicate with the target consumers and to create greater awareness. The target retail outlets featuring greater share of Valentino brand will enable the company to make its presence within the target masses. Besides, the brand extension will enable Valentino to make its presence more prominent in the competitive market. The prime intention of this report will be towards performing the deep evaluation of a luxury fashionable brand named as ‘Valentino SpA’. This brand has been into fashion business since long and is basically of Italian origin. Since being an Italian fashion brand, all its apparel and fashion products reflect the styling trend and the traditional craftsmanship of Italy. A majority of the products manufactured by this brand belongs to a niche section and are high priced as well (Valentino SpA, 2014). The brand was established by Valentino Garavani in 1960 in Rome, Italy. Since then, the brand has been considerably successful in gaining significant amount of preferences from both male and female customers who like the precision and the styling factor associated with assorted offerings such as clothing, footwear, perfumes, glasses, accessories along with watches. The brand adds a combination of certain important factors which contribute to its success factor. It is a popular brand due to ensuring the offering of a diversified portfolio of products for men and women encompassing clothing, footwear as well as accessories (Valentino SpA, 2014).In the current scenario, the brand has attained significant amount of development under the effective supervision of their Creative Directors Maria Grazia Chiuri and Pierpaolo Piccioli. These creative

Sunday, August 25, 2019

The relationship between lifelong learning and vocations Essay

The relationship between lifelong learning and vocations - Essay Example A person acquires knowledge even after leaving school and while in employment. The learning needs of people continue increasing with the rising rate of technological advancement. The style of learning is also constantly changing with new inventions. For example, advancement in information technology in the last several decades has generated the need for learning regarding its application in virtually all aspects of life (Forrester 1995). For example, innovative banking systems require bankers to be competent in the use of computers for information storage, while customers are required to understand how to use new banking services such as the Automatic Teller Machine and electronic banking that enhance service delivery. Technology changes occur every year, meaning that for a person to be competent in the workplace or to access important services, he/she has to maintain lifelong learning which does not necessarily have to be undertaken at school or at the workplace. Many governments encourage lifelong learning as a policy response to the constant changes occurring in the modern economic systems. For example, Valsiner (2000) observes that there is a significant shift to a services economy from a manufacturing economy. The conventional institutions that require people to more vigorously in individual management of life have declined in the recent past, while a knowledge economy has materialized. This means that the formal education offered in the early stages of a person’s life may not be sufficient for maintenance of competence in an individual all through his/her life. This realization has made many governments especially in the developed economies to focus on promoting lifelong learning. This is accomplished through encouraging home based schooling whereby individuals acquire knowledge through the informal system, attainment of formal education through adult education, non examinable education in higher institutions of

Saturday, August 24, 2019

Music Management Essay Example | Topics and Well Written Essays - 750 words

Music Management - Essay Example supervision of studio inventive administrators, gives a "green light" to studio creation subsidizing, and disperses the finished film with the studio-affiliated wholesaler utilizing the merchants stores to cover P&A costs. An autonomous maker (or screenwriter, chief, performing artist or on-screen character) may have initially presented the thought, idea, fundamental property, layout, summation, treatment or screenplay to the studio, however rights to deliver as a movie were then gained by the studio. In the event that the maker or others stay appended, they do as such as representatives of the studio or venture (Wise Geek Editors, 2012). Production Financing/Distribution Agreement- The independent producer gives the securing/improvement financing (or raises such supports from speculators) and takes the arrangement to a studio/merchant with a genuinely finish bundle (i.e., huge components are joined). The studio/merchants cash used to deliver and appropriate the photo. The circulation agreement is gone into (hypothetically) before they begin production or if nothing else before the end of the generation. The merchant will deduct its charge, recover wholesaler costs, and gather enthusiasm on the creation cash credit and after that decrease the negative expense with staying gross receipts, if any(Wise Geek Editors, 2012). Negative Pickups (and different manifestations of moneylender creation cash financing) - The free maker gives securing/improvement financing (or raises such supports from financial specialists) and acquires one or more merchant responsibilities and insurances. This is to buy the finished picture (for the around the world, residential or global markets, or individual domains) if the completed film meets determined conveyance necessities (as put forward in subtle element in the appropriation agreement)(Wise Geek Editors, 2012). To remain relevant in the industry, the best approach to discover begins with placing ourselves in our clients shoes.

Friday, August 23, 2019

Summary of Benjamin R. Bates. Audiences, Metaphors, and the Persian Essay

Summary of Benjamin R. Bates. Audiences, Metaphors, and the Persian Gulf War - Essay Example The American public was crucial to the Persian Gulf War. A number of communication scholars viewed Bush's actions as critical to acquiring and retaining this domestic public endorsement. However, some appeals that might work wonders with a domestic audience are not likely to be convincing to an international audience. For instance, appeals to American nationalism, American civil religion, or American exceptionalism may work well for an American audience, but are not likely to influence Omani, or Senegalese audiences. Other appeals, though, may persuade both domestic and international constituencies. Appeals that cross audiences are especially important in war rhetoric. Instead of being the persuasion of the whole cosmopolis, international persuasion can be considered the persuasion of opinion leaders that hold power in other states. In constructing persuasive appeals to international opinion leaders, Bush cannot simply speak however one wishes. According to Bates research Bush did four things successfully to persuade international opinion leaders. First, Bush identified appropriate international opinion leaders for persuasion. The Persian Gulf War was framed as a military issue. Therefore, Bush sought to convince the heads of other states to join the American military coalition. Bush also created the manifestation of consultation and dialogue through telephone diplomacy and personal consultations. Con

Thursday, August 22, 2019

Understanding Attitudes and Behavior Essay Example for Free

Understanding Attitudes and Behavior Essay The results support three out of the four hypotheses. The subscales knowledge, affect, intended behaviour and actual behaviour have a significant correlation, that is a change in one generates changes in another. Finding that knowledge is significant could be because the participants are University students and are likely to have a greater depth of general knowledge that the norm. On the other hand having a low knowledge score could be irrelevant to the actual behaviour. This is the conclusion of Maloney et als` study. Another consideration is maybe the hypothesis is wrong; knowledge could be significant in the ecological behaviour of an individual. Maloney et al did not find a correlation but Yule and Knussen (1998) did although to a lesser degree than the other subscales. It might be that it is not the specific knowledge across the spectrum of ecological issues that prompts to action. The items used may have had no relevance in the pro environmental attitude of the participant. Breadth of knowledge may lack significance however having a general, superficial knowledge of the subject or a deep knowledge of a specific area might correlate. In psychology it is generally regarded that knowledge of a subject has no significance with actual behaviour however it is unlikely that one would act to preserve the environment without some knowledge however unclear to prompt to action, especially in areas where recycling involves more effort than separating the items and putting them out for collection. Although there may be a smaller correlation with the other subscales it could be that knowledge is indeed significant but results may be forthcoming only when the inventory tackles the areas the pro-environmentalist is interested in and has a greater knowledge, e.g. a person may decide to recycle because they wish to conserve earths natural resources whereas another may do so because pollution kills. Both may recycle but for different reasons and their knowledge could be in-depth in separate but related areas. Possible behaviour needs a certain amount of knowledge to motivate but knowledge in itself does not necessarily activate behaviour. Ajzen and Fishbein concluded, from their studies, that traditional methods of attitude measurements were flawed but possibly modern attitude and behaviour measurements are also flawed. Perhaps when building the items to be used for the attitude measurement there would be a need to fit the items to particular social groups e. g. lower working class or long term unemployed may not buy environmentally friendly products as they are too expensive for a limited budget. Perhaps their contribution to recycling goes as far as reusing supermarket carriers as nappy sacks, using empty jars for home made jam, buying second hand goods, or using food scraps for humus in the garden but it is still recycling and is not included in CALECOL. Likewise a person with limited finances may have no way to get any items to a recycling point as a lot of local councils do not have collection days for recyclable goods. Their actual behaviour score would be reduced as a result of this biased slant to those that are financially able to buy environmentally friendly products. In the CALECOL Inventory (see appendix ii) there are a few items that may be irrelevant to certain areas of the population and as a result give a distorted score. For example actual behaviour subscale item 4 and intended behaviour item 9 12 mentions politics and environmental issues. Some religions actually prohibit voting for political parties and this item would affect the scoring. Transport difficulties mean taking items to be recycled is not possible for a lot of people(Item 9, actual behaviour. This Inventory is also biased towards the able bodied. Some environmentalists are disabled and unable to get out to clean up, use public transport, deliver leaflets or take items to a recycling point. This highlights the problems with measuring attitudes using inventories. The items used cannot be measured on everyone and therefore gives an unrealistic evaluation of their attitudes and the relationship to their behaviour. Age may affect the scores as most young people live at home and their actual behaviour may largely be under the control of their parents. So they may have the knowledge, strength of feeling and intention to be ecological but lack the means e. g. they will not usually decide which products to buy for the home or whether to recycle items. Age may also be a significant factor in revealing a correlation between the subscales. It would be interesting to find out if say the 18 24 age group subscales scores are significantly lower than the 36 44 age group. The evidence from this small study was that it might be as it was mostly the older members of the class that had the highest scores. This could be because as one ages one might ponder on the consequences of ones actions more. Pollution could be directly affecting their children and parents might want to make a contribution to their offsprings future environment. Another area that could be investigated is location. Do rural areas recycle more than towns or cities? What role does local social norms play in recycling behaviour? Measurement scales could be tailored to suit a particular class of individual, whether grouped by area, social class, disabled etc, to gain a more realistic measurement of their attitude. As attitudes are hypothetical constructs, theories and investigations will continue to be made. Through time, no doubt, measurement scales will grow more sophisticated in their search to accurately measure attitude components and their links with actual behaviour but without tailoring it is unlikely that all the items in an attitude inventory will apply to all participants in equal measure. REFERENCES Ajzen, I. , Fishbein, M. (1982). Understanding Attitudes and Behavior, Theoretical Implications. In J. C. Brigham, L. S. Wrightsman (ED. ), Contemporary Issues in Psychology (4th ED), pp127 137. Monterey, California, Brooks/Cole Publishing Company. Aijzen, I. , Fishbein, M. (1980). Understanding attitudes and predicting social behaviour. Englewood Cliffs, NJ: Prentice Hall. Cited in Zimbargo and Leippe, (1991). The Psychology of Attitude and Social Influence. United States of America, McGraw Hill Maloney, M. P. , Ward, M. O. Braucht, C. N. (1975). A revised scale for the measurement of ecological attitudes and knowledge. American Psychologist, 30, 787-790

Wednesday, August 21, 2019

Theory of Mind Essay Example for Free

Theory of Mind Essay Within this TMA I will be discussing Theory of Mind and how it may have evolved in humans, using the Theory of Evolution to explain this. I will also be looking at what the adaptive function of Theory of Mind in humans may be. The adaptive function in this essay means the relative ability of a person to effectively interact with society on all levels and care for one’s self; affected by one’s eagerness to practice skills and follow opportunities for enhancement. Evolution is the procedure which modern organisms have descended from the earliest ancestors. Evolution is accountable for both the similarities and the diversity across all species. Essential to the process is genetic variation on which selective forces can act in order for evolution to occur. Evolution can also be described as descent with modification. Evolution occurs when there is a modification in gene regularity in a population over time. These genetic differences can be inherited and may be passed on to the subsequent generations. The main idea of evolution is all life on earth shares a common ancestor. Charles Darwin first proposed the theory of evolution after spending time on the Galapagos Islands. He developed the theory of evolution which would oppose the creation of man and imply that all species derived from common ancestors through natural selection. Natural selection is thought to be the main factor resulting in the diversity of species. Natural Selection is as stated by Barrett (2002) â€Å"The process whereby physical and behavioral characteristics which enable survival are passed onto descendants† (as cited in Clegg. 2007. Pg121). The disappearance of less suited gene traits and the survival of the better suited genetic traits led Darwin to reason that organisms had evolved over time, where the most advantageous characteristics of species’ are preferred and those organisms who demonstrate them survive to pass on their genes. Darwin believed that organisms had evolved to adapt to their environments. This allowed them to fill a niche in which they would be well suited to their environment and in turn increase survival chances. Darwins finches are an example of the way the species genetic traits have adapted for long term survival via their young. The beaks of the finches Darwin discovered have evolved to be best suited to their purpose. For example, the finches that eat grubs have a slim extended beak to poke holes into the earth and retrieve the grubs. Finches that eat fruits and buds would not be successful at this, as their larger beaks grind down food which gives them an advantage in situations where buds are the only food source for finches. Within humans many adaptations have occurred through Darwin’s idea of natural selection. â€Å"An adaptation is an evolved property of an organism, the original function of which adds to its fitness† (Clegg, 2007, p122). One of these adaptations is called Theory of Mind. Theory of Mind is â€Å"the ability to explain and predict the actions of both oneself and other† (Clegg, 2007, p133). To have Theory of Mind would allow humans to understand what another person feels and use that information to adjust their own actions Studies have been carried out on primates closely related to humans in the gene pool to try and understand the evolution of Theory of Mind. One observation completed by Whiten in 1997 was that of an ape who distracted another to keep the competitor from food which the original ape had seen (as cited in Clegg, 2007, p139). This ape’s deception may point to the ape possessing some Theory of Mind as it realised that the competitor would have d esired the food item also. This can also be related to modern humans as the ability to find food can also be a difficult task for some people such as the tribes who live in the deserts. This will attract a partner as it shows the ability to provide and survive, and will be passed through generations. Archaeological evidence can also be used to try to understand the evolution of Theory of Mind in our ancestors, when it fully appeared in Homo sapiens and its adaptive function. The appearance of archaeological art e.g. cave drawings, around 30,000 years ago shows the humans at the time had the ability to imagine things which allowed them to create the artwork. With the ability to do this it can be said that the people who drew the artwork possessed Theory of Mind. These cave drawings may have been used to attract a partner, which means the genes for imagining and creating the artwork would have been passed to their subsequent children. This adaptation would provide the next generation of humans with the ability to imagine and therefore possessing a quality of Theory of Mind. When this adaptation was passed on and used by the children it would have allowed them to create partnerships and their offspring would also have the same trait. This would allow the gene to become an advantage and therefore be passed on through the generations and continue until the Homo sapiens of today. The ability to imagine can still be used today as a means of attracting a partner. Theory of Mind also allows us to interact with success with other humans and how to understand how someone is feeling from their actions. With the evidence and explanations provided Theory of Mind is an advantage to modern humans as its adaptive function may be to allow individuals to survive longer and therefore create more offspring with the desirable characteristic to suit the environment into which it is born. This allows the Homo sapiens to continue to survive upon the earth. References Clegg, H (2007). Evolutionary Psychology. In D. Miell, A. Phoenix, K. Thomas (Eds), Mapping Psychology (2nd ed., pp.105-160). Milton Keynes: The Open University

Study on the Prediction of Corporate Bankruptcy

Study on the Prediction of Corporate Bankruptcy CHAPTER 1: A number of researches have been carried on the prediction of bankruptcy; formal studies linked with failure of business were conducted in 1930s. A study conducted by Simth and Winakor (1935) said that ratios of the failing firms were significantly changed from the continuing firms. In addition to that another study was related to the financial ratio of large size corporation that suffered in meeting fixed liability (Hickman 1958). Recent studies took potential ratios given in annual financial statements like profitability, solvency, and liquidity ratios considered as the most predictive indicator and these ratios were matched with failed and well worth firms for analysis. A group of financial and economic ratios were examined in the prediction of bankruptcy through multiple discriminant statistical technique, highest contributor ratios were profitability, operational profit/ total assets and very low contributor ratio was working capital/Assets (Altman, 1968). According to Pastena and Ruland (1968), the bankruptcy was defined in the literature review in various ways. Among those one was in a condition of negative worth where the market value of assets was less than the total value of liabilities. And the other was that the firm was not in a condition to pay back its liabilities as it became due. This term could also be used in a legal condition under which the firms continued to operate under court protection. 1.2 Problem Statement In the corporate finance, the prediction of corporate bankruptcy was considered to be one of the most important issues. The main objective behind the study of the prediction of corporate bankruptcy was that this was the most important issue for the present firms to either file for the bankruptcy or not. The rationale of the study was to examine whether the financial ratios given in detail by Altman (1968) presented the detail regarding the factors of the firm which were helpful in the prediction of corporate bankruptcy in Pakistan. The capacity of study was to investigate the distinctive financial ratios which impacted the firms decisions to file for the bankruptcy or not and on the basis of firms financial ratios, the research study found the different significant ratios which were useful in determining the prediction of any of the organization. 1.3 Hypotheses The main problem of the different firms was to identify those financial factors or the most important ratios which could lead to the filing of bankruptcy or those factors which were useful in determining the prediction of the corporate firms. A central query in front of firms which wanted to file for bankruptcy was why the firms filed for bankruptcy or what financial factors helped out in taking decision to file for bankruptcy. Various financial factors or ratios impacted the decision regarding the filing for bankruptcy. These financial characteristics or the most important ratios were current ratio, debt ratio, net profit margin, assets to long term debt ratio, and growth rate. Many authors as Altman (1968) discussed these characteristics in research. The hypothesized relationship of these listed financial factors with bankruptcy was provided below: H1: There is a difference between the Current ratio of bankrupted companies and non bankrupted companies. H2: There is a difference between the Debt ratio of bankrupted companies and non bankrupted companies. H3: There is a difference between the Net Profit Margin ratio of bankrupted companies and non bankrupted companies. H4: There is a difference between the Assets to long term debt ratio of bankrupted companies and non bankrupted companies. H5: There is a difference between the Growth rate of bankrupted companies and non bankrupted companies. 1.4 Outline of the Study The research structured as follows. Chapter one based on the introduction of the thesis, which consists of the some introduction of the prediction of bankruptcy by different authors, the statement of problem, scope and objectives, hypothesis etc. Chapter two consists of literature review given by different authors, theories on prediction of bankruptcy and financial factors affecting the choice of decision to file for bankruptcy or not. Chapter three described methodology which is composed of justification of the selection of the variables utilized in analysis sample, the data, technique and hypothesis, also estimate model utilized in analysis. In chapter four, analyses of the results were there which were taken after the data processing. Chapter five contained the final results, conclusions and recommendations. References are included in chapter number six. CHAPTER 2: LITERATURE REVIEW A number of researches have been carried on the prediction of bankruptcy; formal studies linked with failure of business were conducted in 1930s. A study conducted by Simth and winakor (1935) said that ratios of the failing firms were significantly change from the continuing firms. In addition to that an other study was related to the financial ratio of large size corporation that suffered in meeting fixed liability (Hickman 1958). Recent studies took potential ratios given in annual financial statements like profitability, solvency, and liquidity ratios considered as the most predictive indicator and these ratios were matched with failed and well worth firms for analysis. A group of financial and economic ratios were examined in the prediction of bankruptcy through multiple discriminant statistical technique, highest contributor ratios were profitability, operational profit/ total assets and very low contributor ratio was working capital/Assets (Altman, 1968). A study conducted by Sandin and Porporato (2007) on corporate bankruptcy prediction model applied to emerging economies. The aim of this study was to find the predictability of bankruptcy by using the financial ratios given in the financial statements and these financial statements were taken from the Buenos Aires Stock Exchange. To test the hypothesis twenty two bankrupt and non bankrupt companies were examined by using the multiple discriminant analysis technique, resulted that financial ratios were very useful in predicting the bankruptcy. Actually this study was about the prediction model and classification of the distressed and failed companies in the Argentina. William Beaver (1996) conducted a study that Financial Ratios As Predictor of Failure, wherein ratios were tested for a specific purpose. The purpose was to forecast the failure. Since ratios were mostly examined for the prediction of failure. The aim of the study was to analyze the status quo that was depended on the financial statements made under the reporting standard and this study was conducted as a bench mark for further studies in bankruptcy area. Sample of data was selected on the basis of industry, firm size and period, Walworth companies should have taken from the same industry where from failed companies taken along with same firm size based on firm value and equal time duration then reliable result can be obtained said by Beaver (1996). This study pointed out and directed to the asset size and relationship among ratios, assets size and failure, study implicated that larger firms were more solvent than smaller firms, even if ratios were same. To examine the hypothesis, a paired analysis was used. According to Pastena and Ruland (1968), the bankruptcy was defined in the literature review in various ways. Among those one was in a condition of negative worth where the market value of assets was less than the total value of liabilities. And the other was that the firm was not in a condition to pay back its liabilities as it became due. This term could also be used in a legal condition under which the firms continued to operate under court protection. Merger and Bankruptcy Based on the literature review in the different research studies, it was found that the shareholders of the distressed firms were getting more benefit from mergers than from the bankruptcy. Thus, the investors kept the positive number of the firms stocks up as a consequence of the merger. Contrastingly, the stakeholders received nothing in case of the bankruptcy. Shrieves and Stevens (1979) managed to explain all of the possible reasons for preferring merger over bankruptcy and those principles included: (1) to avoid the bankruptcy legal and administrative costs, (2) possible loss of tax carry forwards of the loss firm incurred on liquidation, (3) the value of the going-concern in the merger was more than liquidation value if the firm bankruptcy progressed towards the liquidation, and (4) the bankruptcy created the bad effects on the revenues including sales and income due to the customer fears of inability contracts, give replacement parts, etc. Bulow and Shoven (1978) noticed based on the research that the investors have always been avoiding the bankruptcy and this tendency always benefitted the creditors as a whole and that theoretically, the bankruptcy occurred because of the disagreement between the concerned parties. This was treated in a literature that the merger was the best possible alternate of the bankruptcy with the assumption in the mind that it was more easy for the distressed firms to find a merger partner at some price as long as the net asset value was positive and this was also under the assumption of a well-functioning market for information. When the situation was aggravated toward a condition of less or negative net asset value, the possibility of merger was reduced. Hong (1983) made an empirical as well as theoretical model which distinguished among three different categories of financially upset firms and it was organized in three ways such as: firms which filed bankruptcy but reorganized successfully, firms which filed for bankruptcy but were liquidated ultimately, and also the firms which continued operations with out even filing for bankruptcy. Author further made a hypothesis that the intangible assets, the value of the firm as in a going concern and the value of the same firm in liquidation was different, were the main describing factor which affected the eventual outcome. The firms which had greater intangible assets were possibly having a sustainable economic growth and that growth allowed a firm to survive rather than be liquidated. LoPucki (1983) made an explanatory study of about 41 firms which filed the bankruptcy court of the Western District of Missouri. In this study, the à ¢Ã¢â€š ¬Ã…“successesà ¢Ã¢â€š ¬? were defined as the firms which have verified its various reorganization strategies that kept it on to survive for about three years after the date of petitioning the bankruptcy. Failures according to the author were those firms which had stopped operating functions before February 1983. LoPucki (1983) further could not try to make a method with discriminatory power, but in fact simply scrutinized the associations between the results of reorganization process and numerous individual variables. These individual variables included size, age, and type of the businesses, the survival of creditors opposition to the reorganization strategy, and physical geographic location. The relationships which were found during the research were: significantly higher success rate was associated with the manufacturing fi rms; more successful firms were only the larger firms; success was not significantly associated with the age of the firms; the target opposition of the creditors was mainly at the more successful firms; and lastly, the physical geographical location was not a significant describing variable. In short, only a finite amount of research was conducted on the topic of differentiating between failures and successes in bankruptcy, and outcomes have been open to doubts or inconclusive. The one published study conducted by the LoPucki (1983), scrutinized the first order correlations and could not struggle to build the model of classification. The other published research study conducted by Hong (1983), scrutinized the comparative importance of numerous individual variables and had not analyzed the classification authentication of the multivariate model. As it was already discussed in detail, this present study scrutinized the classification authentication of the multivariate model by using data from both analysis sample and a holdout sample 113 firms. Bordman, Bartley, and Ratliff (1981) noticed that firms went bankrupt only when its capital resources were not enough to pay back the obligations of the business. Thus it became the more important challenge for the new comers in the industry to maintain and establish such valuable resources and capabilities which could ultimately leaded to the production of positive cash flows before starting asset resources were exhausted (Levinthal, 1991). According to DAveni (1989), and Hambrick and DAveni (1988), both researches have noticed that most of the attention has been paid to the early failures and dramatic research has also been conducted in the literature. A macro view of the bankruptcy was given as a known strategy and an empirical examination of factors associated to successful reorganization (Moultan, and Thomas, 1993) and however, the structures of corporate governance were not incorporated in the analysis. An extensive data was available relating the intensity to which the officers and directors of the firm which was bankrupt were more possibly resigning or were being replaced (DAveni, 1990; Fizel Louie, 1990; Gilson, 1989). Several researchers used the multiple discriminant analysis MDA technique to develop a linear model to predict those firms which failed could be differentiated from the non-failed firms in UK (Taffler, 1977). This model resulted in an overall classification authentication for the year before the failure as comparative to three or two prior years of failure. The major contribution made by Taffler was the establishment of a Z-score model which was used for the prediction of company failures in the UK and furthermore, the author claimed of 100 percent predictive authentication in the model. In addition, in the consequent studies, Taffler (1982, 1983) discussed the pairing technique which was used in the prediction of corporate failure studies proved no more successful technique than any selection by the other tool or technique. Multiple Discriminant Analysis MDA models were dependable to certain intensity in the prediction of corporate failure. CHAPTER 3: RESEARCH METHODS 3.1 Method of Data Collection Data was selected from Karachi Stock Exchange KSE 100 Index as given by State Bank of Pakistan in publication Balance Sheet Analysis of Joint Stock Companies Listed on the KSE (2004-2009). The period of study covers six years, 2004-09. The opted sample size of 44 firms was taken from KSE 100 Index and all of the firms listed on KSE 100 Index were selected for the samples which were going to bankruptcy in the past and some were also the present functioning firms which were currently working; so, only 44 firms included in the sample period of 2004-09. The objective behind the inclusion of these selected firms in the sample was that the inclusion of bankrupt and non-bankrupt firms in the analysis made it easier to distinguish the critical financial ratios of these both firms in order to predict for corporate bankruptcy. The data availability was the major issue faced in this research study. The secondary data sources were adopted for the collection of the data during this research study. Both of the empirical and theoretical aspects regarding the prediction of corporate bankruptcy were analyzed in this research study. For the purpose of the collection of the secondary data, external data sources were used, such as the data was collected from State Bank of Pakistan, general business publications, newspapers and journal articles, annual reports, internet and books. The data required for this study was completely dependent on the published data sources, such as the published sources listed above. 3.2 Sample Size A sample of 44 firms from KSE 100 Index was selected and in addition, out of these firms 22 firms were bankrupt and the remaining 22 were not bankrupt which was taken as the holdout sample for the prediction of the corporate bankruptcy. Only firms were used in the samples which were either became bankrupt due to the impact of the some of the financial factors or the ratios or the firms which were in operations during the research study was conducted and these firms were listed on the KSE 100 Index form 2004-2009. The impact of the different financial factors or ratios, which were listed in the previous chapters, on the prediction of corporate bankruptcy was analyzed on all of the firms selected as the sample. 3.3 Research Model Developed There are various financial factors or the ratios of the firms which affected the prediction of the corporate bankruptcy of the firms. This research study analyzed the impact of different factors or ratios already listed in the previous chapters on the prediction of corporate bankruptcy. The model developed was a binary logistic model and its specifications are provided below: Liquidity = a0 + a1Firm Size + a2DEBT + a3LTD + a4LSALES + a5OI/S + a6OI/TA+ a7IGP/TA+ a8Market to Book Ratio + ц where: Liquidity = the sum of cash and marketable securities divided by total assets Firm Size = natural log of the book value of total assets DEBT = the ratio of shorter period plus longer period debt to total assets LTD = the ratio of longer period debt to total assets LSALES = natural log of the annual sales OI/S = the ratio of operating income to sales OI/TA = the ratio of operating income to total sales IGP/TA = the inventory plus gross fixed assets to total assets ratio à Ã¢â‚¬Å¾ = the error term 3.4 Statistical Technique Binary Logistic Regression Analysis technique was used for this research study to examine the impact of the distinctive financial characteristics or the financial ratios of the firms on the prediction of corporate bankruptcy of the selected firms; Statistical Package for the Social Sciences (SPSS) was used for the examination of the secondary data. Binary Logistic Regression Analysis technique was used for the purpose of prediction of of corporate bankruptcy or the prediction of the firms decisions to file for bankruptcy. The selected technique was used to study the impact of the different independent variables (financial factors as listed in the previous chapters) on the dependent variable i.e., prediction of corporate bankruptcy. The binary logistic regression analysis was selected for this study. It showed the intensity of the impact on the prediction of corporate bankruptcy during year 2004-2009 on the basis of several independent variables. CHAPTER 4: RESULTS The sample of 44 firms from the Karachi Stock Exchange KSE 100 Index was taken; Binary Logistic Regression Analysis technique was used for this research study. Research examined the distinctive financial characteristics or financial ratios of firms which filed for the bankruptcy. The selected technique was used to study the impact of the different independent variables (financial factors as listed in the previous chapters) on the dependent variable i.e., the prediction of corporate bankruptcy. Statistical Package for the Social Sciences (SPSS) was used for the analysis and examination of data. 4.1 Findings and Interpretation of the results Initially, the binary logistic regression technique was applied on the data collected using SPSS. Now, it was a nice time to proceed with the analysis of the results because the data was collected and ready to be examined. The interpretation and analysis is presented in the next sections of this research study. Case Processing Summary Unweighted Casesa N Percent Selected Cases Included in Analysis 192 91.4 Missing Cases 18 8.6 Total 210 100.0 Unselected Cases 0 .0 Total 210 100.0 This table explains the total population in the data file that is the 210 observations or the cases for the analysis of the bankruptcy prediction. This table further elaborates that the there were also some of the cases missing in the data because of the issue of data availability and some of the cases were the figures of zero. Dependent Variable Encoding Original Value Internal Value Bankrupt 0 Non-Bankrupt 1 The above table shows that there are only two variables in the dependent variable of bankruptcy that are the being bankrupt or non-bankrupt. Model Summary Step -2 Log likelihood Cox Snell R Square Nagelkerke R Square 1 234.707a .144 .192 This table elaborates the predictability of the complete model of the logistic regression which meant that to what extent the model predict the variation in the predicted group of bankruptcy. According to Cox Snell, the total predictors jointly explained variation in the groups of bankruptcy was 14.4%. While according to Nagelkirki, the all independent variable explained the group prediction of about 19.2%. Hosmer and Lemeshow Test Step Chi-square df Sig. 1 32.715 8 .000 This table checks the overall model fit which means that the model is at its best in predicting the group variation from non-bankrupt to bankrupt. The hypothesis of the above table is that the test model is fit. The hypothesis is rejected because the sig value is less than .05 which concluded that the test model was not fit in this case of predicting the group variation. Classification Tablea Observed Predicted Banckruptcy Percentage Correct Bankrupt Non-Bankrupt Step 1 Banckruptcy Bankrupt 76 29 72.4 Non-Bankrupt 43 44 50.6 Overall Percentage 62.5 The classification table is the most important table in case of the logistic regression because this table explained the correct identification of the cases correctly identified. The percentage of correctly identified cases is 62.5% which is also commonly known as the hit ratio which means that to what extent the numbers of cases were correctly identified. Variables in the Equation B S.E. Wald df Sig. Exp(B) 95% C.I.for EXP(B) Lower Upper Step 1a DA -1.219 .510 5.725 1 .017 .295 .109 .802 AtoLTD -.002 .001 1.583 1 .208 .998 .996 1.001 CR .938 .348 7.242 1 .007 2.554 1.290 5.056 NPM .037 .073 .262 1 .609 1.038 .899 1.198 SG .161 .232 .482 1 .488 1.175 .745 1.852 Constant .066 .579 .013 1 .910 1.068 This is the final most important table in the logistic regression because this is the only table which shows the role of different predictors in significantly explaining the role in the prediction of group variations. Those important significant variables were only two that were DA, and CR because the sig value of only these variables were less than .05. 4.2 Hypotheses Assessment Summary The hypothesis of the study was distinctive financial ratios have significant impact on the non firms decision to file for bankruptcy. These financial characteristics were current ratio (CR), debt ratio (DA), net profit margin (NPM), assets to long term debt ratio, and growth rate. In this study each of the financial characteristics or financial ratios of firms was tested and concluded the results. TABLE 4.4 : Hypotheses Assessment Summary S.NO. Hypotheses ÃŽÂ ²       SIG. RESULT H1 There is a difference between the Current ratio of bankrupted companies and non bankrupted companies. 0.938 0.007 Accepted H2 There is a difference between the Debt Ratio of bankrupted companies and non bankrupted companies. -1.219 0.017 Accepted H3 There is a difference between the Net Profit Margin Ratio of bankrupted companies and non bankrupted companies. 0.037 0.609 Rejected H4 There is a difference between the Assets to long term debt ratio of bankrupted companies and non bankrupted companies. -0.002 0.208 Rejected H5 There is a difference between the Growth rate of bankrupted companies and non bankrupted companies. 0.161 0.488 Rejected CHAPTER 5: DISCUSSIONS, CONCLUSION, IMPLICATIONS AND FUTURE RESEARCH 5.1 Conclusion It was concluded based on the results of this research study that current ratio and debt ratio were only the independent variables which were showing significance in Pakistani market and these variables were highly significant in playing the vital role explaining the variation in the dependent variable of the prediction of corporate bankruptcy and the remaining independent variables could not explain the variation in the prediction of corporate bankruptcy. These results were not matching with the study conducted by Altman (1968). These results were varying because in various countries, there was difference in environments and circumstances and firms usually made decision accordingly. 5.2 Discussions Current ratio played a significant role in defining the variation in the prediction of corporate bankruptcy and this was also the case with the research study conducted by Altman (1968) because in his study the firm size was also playing a significant role. The variation in the prediction of corporate bankruptcy was not explained by the net profit margin ratio while it was significant in the study done by Altman (1968). The assets to long term debt ratio, and growth rate were not significantly explaining the variation in the prediction of corporate bankruptcy and study analyzed by Altman (1968), concluded the different results with some addition. 5.3 Implications and Recommendations This research was limited to the various firms listed on Karachi Stock Exchange of Pakistan only. The data taken from 44 firms which were took through various sectors of the KSE 100 Index for the year 2004-09 which were previously bankrupt and which were currently operating. It suggested that such type of study should be carried out in other countries of Asia as well, as to have comprehensive idea about the choices of the firms decision to file for bankruptcy. Moreover, it also suggested that other factors except ones examined in this study should be researched as to have perfect idea about the selection of the prediction of corporate bankruptcy. Besides that, this study can also be replicated in other developing countries. 5.4 Future Research This study helped various investors, management and other research conductors in analyzing and observing the behavior of firms regarding their decisions to file for the bankruptcy. Research students who want to work further on the prediction of bankruptcy can be benefited by this research study. Further more, the firms will become advantageous from this study because the study clarifies the distinctive financial characteristics or the financial ratios of different firms which significantly explain the variations in the prediction of corporate bankruptcy. Study on the Prediction of Corporate Bankruptcy Study on the Prediction of Corporate Bankruptcy CHAPTER 1: A number of researches have been carried on the prediction of bankruptcy; formal studies linked with failure of business were conducted in 1930s. A study conducted by Simth and Winakor (1935) said that ratios of the failing firms were significantly changed from the continuing firms. In addition to that another study was related to the financial ratio of large size corporation that suffered in meeting fixed liability (Hickman 1958). Recent studies took potential ratios given in annual financial statements like profitability, solvency, and liquidity ratios considered as the most predictive indicator and these ratios were matched with failed and well worth firms for analysis. A group of financial and economic ratios were examined in the prediction of bankruptcy through multiple discriminant statistical technique, highest contributor ratios were profitability, operational profit/ total assets and very low contributor ratio was working capital/Assets (Altman, 1968). According to Pastena and Ruland (1968), the bankruptcy was defined in the literature review in various ways. Among those one was in a condition of negative worth where the market value of assets was less than the total value of liabilities. And the other was that the firm was not in a condition to pay back its liabilities as it became due. This term could also be used in a legal condition under which the firms continued to operate under court protection. 1.2 Problem Statement In the corporate finance, the prediction of corporate bankruptcy was considered to be one of the most important issues. The main objective behind the study of the prediction of corporate bankruptcy was that this was the most important issue for the present firms to either file for the bankruptcy or not. The rationale of the study was to examine whether the financial ratios given in detail by Altman (1968) presented the detail regarding the factors of the firm which were helpful in the prediction of corporate bankruptcy in Pakistan. The capacity of study was to investigate the distinctive financial ratios which impacted the firms decisions to file for the bankruptcy or not and on the basis of firms financial ratios, the research study found the different significant ratios which were useful in determining the prediction of any of the organization. 1.3 Hypotheses The main problem of the different firms was to identify those financial factors or the most important ratios which could lead to the filing of bankruptcy or those factors which were useful in determining the prediction of the corporate firms. A central query in front of firms which wanted to file for bankruptcy was why the firms filed for bankruptcy or what financial factors helped out in taking decision to file for bankruptcy. Various financial factors or ratios impacted the decision regarding the filing for bankruptcy. These financial characteristics or the most important ratios were current ratio, debt ratio, net profit margin, assets to long term debt ratio, and growth rate. Many authors as Altman (1968) discussed these characteristics in research. The hypothesized relationship of these listed financial factors with bankruptcy was provided below: H1: There is a difference between the Current ratio of bankrupted companies and non bankrupted companies. H2: There is a difference between the Debt ratio of bankrupted companies and non bankrupted companies. H3: There is a difference between the Net Profit Margin ratio of bankrupted companies and non bankrupted companies. H4: There is a difference between the Assets to long term debt ratio of bankrupted companies and non bankrupted companies. H5: There is a difference between the Growth rate of bankrupted companies and non bankrupted companies. 1.4 Outline of the Study The research structured as follows. Chapter one based on the introduction of the thesis, which consists of the some introduction of the prediction of bankruptcy by different authors, the statement of problem, scope and objectives, hypothesis etc. Chapter two consists of literature review given by different authors, theories on prediction of bankruptcy and financial factors affecting the choice of decision to file for bankruptcy or not. Chapter three described methodology which is composed of justification of the selection of the variables utilized in analysis sample, the data, technique and hypothesis, also estimate model utilized in analysis. In chapter four, analyses of the results were there which were taken after the data processing. Chapter five contained the final results, conclusions and recommendations. References are included in chapter number six. CHAPTER 2: LITERATURE REVIEW A number of researches have been carried on the prediction of bankruptcy; formal studies linked with failure of business were conducted in 1930s. A study conducted by Simth and winakor (1935) said that ratios of the failing firms were significantly change from the continuing firms. In addition to that an other study was related to the financial ratio of large size corporation that suffered in meeting fixed liability (Hickman 1958). Recent studies took potential ratios given in annual financial statements like profitability, solvency, and liquidity ratios considered as the most predictive indicator and these ratios were matched with failed and well worth firms for analysis. A group of financial and economic ratios were examined in the prediction of bankruptcy through multiple discriminant statistical technique, highest contributor ratios were profitability, operational profit/ total assets and very low contributor ratio was working capital/Assets (Altman, 1968). A study conducted by Sandin and Porporato (2007) on corporate bankruptcy prediction model applied to emerging economies. The aim of this study was to find the predictability of bankruptcy by using the financial ratios given in the financial statements and these financial statements were taken from the Buenos Aires Stock Exchange. To test the hypothesis twenty two bankrupt and non bankrupt companies were examined by using the multiple discriminant analysis technique, resulted that financial ratios were very useful in predicting the bankruptcy. Actually this study was about the prediction model and classification of the distressed and failed companies in the Argentina. William Beaver (1996) conducted a study that Financial Ratios As Predictor of Failure, wherein ratios were tested for a specific purpose. The purpose was to forecast the failure. Since ratios were mostly examined for the prediction of failure. The aim of the study was to analyze the status quo that was depended on the financial statements made under the reporting standard and this study was conducted as a bench mark for further studies in bankruptcy area. Sample of data was selected on the basis of industry, firm size and period, Walworth companies should have taken from the same industry where from failed companies taken along with same firm size based on firm value and equal time duration then reliable result can be obtained said by Beaver (1996). This study pointed out and directed to the asset size and relationship among ratios, assets size and failure, study implicated that larger firms were more solvent than smaller firms, even if ratios were same. To examine the hypothesis, a paired analysis was used. According to Pastena and Ruland (1968), the bankruptcy was defined in the literature review in various ways. Among those one was in a condition of negative worth where the market value of assets was less than the total value of liabilities. And the other was that the firm was not in a condition to pay back its liabilities as it became due. This term could also be used in a legal condition under which the firms continued to operate under court protection. Merger and Bankruptcy Based on the literature review in the different research studies, it was found that the shareholders of the distressed firms were getting more benefit from mergers than from the bankruptcy. Thus, the investors kept the positive number of the firms stocks up as a consequence of the merger. Contrastingly, the stakeholders received nothing in case of the bankruptcy. Shrieves and Stevens (1979) managed to explain all of the possible reasons for preferring merger over bankruptcy and those principles included: (1) to avoid the bankruptcy legal and administrative costs, (2) possible loss of tax carry forwards of the loss firm incurred on liquidation, (3) the value of the going-concern in the merger was more than liquidation value if the firm bankruptcy progressed towards the liquidation, and (4) the bankruptcy created the bad effects on the revenues including sales and income due to the customer fears of inability contracts, give replacement parts, etc. Bulow and Shoven (1978) noticed based on the research that the investors have always been avoiding the bankruptcy and this tendency always benefitted the creditors as a whole and that theoretically, the bankruptcy occurred because of the disagreement between the concerned parties. This was treated in a literature that the merger was the best possible alternate of the bankruptcy with the assumption in the mind that it was more easy for the distressed firms to find a merger partner at some price as long as the net asset value was positive and this was also under the assumption of a well-functioning market for information. When the situation was aggravated toward a condition of less or negative net asset value, the possibility of merger was reduced. Hong (1983) made an empirical as well as theoretical model which distinguished among three different categories of financially upset firms and it was organized in three ways such as: firms which filed bankruptcy but reorganized successfully, firms which filed for bankruptcy but were liquidated ultimately, and also the firms which continued operations with out even filing for bankruptcy. Author further made a hypothesis that the intangible assets, the value of the firm as in a going concern and the value of the same firm in liquidation was different, were the main describing factor which affected the eventual outcome. The firms which had greater intangible assets were possibly having a sustainable economic growth and that growth allowed a firm to survive rather than be liquidated. LoPucki (1983) made an explanatory study of about 41 firms which filed the bankruptcy court of the Western District of Missouri. In this study, the à ¢Ã¢â€š ¬Ã…“successesà ¢Ã¢â€š ¬? were defined as the firms which have verified its various reorganization strategies that kept it on to survive for about three years after the date of petitioning the bankruptcy. Failures according to the author were those firms which had stopped operating functions before February 1983. LoPucki (1983) further could not try to make a method with discriminatory power, but in fact simply scrutinized the associations between the results of reorganization process and numerous individual variables. These individual variables included size, age, and type of the businesses, the survival of creditors opposition to the reorganization strategy, and physical geographic location. The relationships which were found during the research were: significantly higher success rate was associated with the manufacturing fi rms; more successful firms were only the larger firms; success was not significantly associated with the age of the firms; the target opposition of the creditors was mainly at the more successful firms; and lastly, the physical geographical location was not a significant describing variable. In short, only a finite amount of research was conducted on the topic of differentiating between failures and successes in bankruptcy, and outcomes have been open to doubts or inconclusive. The one published study conducted by the LoPucki (1983), scrutinized the first order correlations and could not struggle to build the model of classification. The other published research study conducted by Hong (1983), scrutinized the comparative importance of numerous individual variables and had not analyzed the classification authentication of the multivariate model. As it was already discussed in detail, this present study scrutinized the classification authentication of the multivariate model by using data from both analysis sample and a holdout sample 113 firms. Bordman, Bartley, and Ratliff (1981) noticed that firms went bankrupt only when its capital resources were not enough to pay back the obligations of the business. Thus it became the more important challenge for the new comers in the industry to maintain and establish such valuable resources and capabilities which could ultimately leaded to the production of positive cash flows before starting asset resources were exhausted (Levinthal, 1991). According to DAveni (1989), and Hambrick and DAveni (1988), both researches have noticed that most of the attention has been paid to the early failures and dramatic research has also been conducted in the literature. A macro view of the bankruptcy was given as a known strategy and an empirical examination of factors associated to successful reorganization (Moultan, and Thomas, 1993) and however, the structures of corporate governance were not incorporated in the analysis. An extensive data was available relating the intensity to which the officers and directors of the firm which was bankrupt were more possibly resigning or were being replaced (DAveni, 1990; Fizel Louie, 1990; Gilson, 1989). Several researchers used the multiple discriminant analysis MDA technique to develop a linear model to predict those firms which failed could be differentiated from the non-failed firms in UK (Taffler, 1977). This model resulted in an overall classification authentication for the year before the failure as comparative to three or two prior years of failure. The major contribution made by Taffler was the establishment of a Z-score model which was used for the prediction of company failures in the UK and furthermore, the author claimed of 100 percent predictive authentication in the model. In addition, in the consequent studies, Taffler (1982, 1983) discussed the pairing technique which was used in the prediction of corporate failure studies proved no more successful technique than any selection by the other tool or technique. Multiple Discriminant Analysis MDA models were dependable to certain intensity in the prediction of corporate failure. CHAPTER 3: RESEARCH METHODS 3.1 Method of Data Collection Data was selected from Karachi Stock Exchange KSE 100 Index as given by State Bank of Pakistan in publication Balance Sheet Analysis of Joint Stock Companies Listed on the KSE (2004-2009). The period of study covers six years, 2004-09. The opted sample size of 44 firms was taken from KSE 100 Index and all of the firms listed on KSE 100 Index were selected for the samples which were going to bankruptcy in the past and some were also the present functioning firms which were currently working; so, only 44 firms included in the sample period of 2004-09. The objective behind the inclusion of these selected firms in the sample was that the inclusion of bankrupt and non-bankrupt firms in the analysis made it easier to distinguish the critical financial ratios of these both firms in order to predict for corporate bankruptcy. The data availability was the major issue faced in this research study. The secondary data sources were adopted for the collection of the data during this research study. Both of the empirical and theoretical aspects regarding the prediction of corporate bankruptcy were analyzed in this research study. For the purpose of the collection of the secondary data, external data sources were used, such as the data was collected from State Bank of Pakistan, general business publications, newspapers and journal articles, annual reports, internet and books. The data required for this study was completely dependent on the published data sources, such as the published sources listed above. 3.2 Sample Size A sample of 44 firms from KSE 100 Index was selected and in addition, out of these firms 22 firms were bankrupt and the remaining 22 were not bankrupt which was taken as the holdout sample for the prediction of the corporate bankruptcy. Only firms were used in the samples which were either became bankrupt due to the impact of the some of the financial factors or the ratios or the firms which were in operations during the research study was conducted and these firms were listed on the KSE 100 Index form 2004-2009. The impact of the different financial factors or ratios, which were listed in the previous chapters, on the prediction of corporate bankruptcy was analyzed on all of the firms selected as the sample. 3.3 Research Model Developed There are various financial factors or the ratios of the firms which affected the prediction of the corporate bankruptcy of the firms. This research study analyzed the impact of different factors or ratios already listed in the previous chapters on the prediction of corporate bankruptcy. The model developed was a binary logistic model and its specifications are provided below: Liquidity = a0 + a1Firm Size + a2DEBT + a3LTD + a4LSALES + a5OI/S + a6OI/TA+ a7IGP/TA+ a8Market to Book Ratio + ц where: Liquidity = the sum of cash and marketable securities divided by total assets Firm Size = natural log of the book value of total assets DEBT = the ratio of shorter period plus longer period debt to total assets LTD = the ratio of longer period debt to total assets LSALES = natural log of the annual sales OI/S = the ratio of operating income to sales OI/TA = the ratio of operating income to total sales IGP/TA = the inventory plus gross fixed assets to total assets ratio à Ã¢â‚¬Å¾ = the error term 3.4 Statistical Technique Binary Logistic Regression Analysis technique was used for this research study to examine the impact of the distinctive financial characteristics or the financial ratios of the firms on the prediction of corporate bankruptcy of the selected firms; Statistical Package for the Social Sciences (SPSS) was used for the examination of the secondary data. Binary Logistic Regression Analysis technique was used for the purpose of prediction of of corporate bankruptcy or the prediction of the firms decisions to file for bankruptcy. The selected technique was used to study the impact of the different independent variables (financial factors as listed in the previous chapters) on the dependent variable i.e., prediction of corporate bankruptcy. The binary logistic regression analysis was selected for this study. It showed the intensity of the impact on the prediction of corporate bankruptcy during year 2004-2009 on the basis of several independent variables. CHAPTER 4: RESULTS The sample of 44 firms from the Karachi Stock Exchange KSE 100 Index was taken; Binary Logistic Regression Analysis technique was used for this research study. Research examined the distinctive financial characteristics or financial ratios of firms which filed for the bankruptcy. The selected technique was used to study the impact of the different independent variables (financial factors as listed in the previous chapters) on the dependent variable i.e., the prediction of corporate bankruptcy. Statistical Package for the Social Sciences (SPSS) was used for the analysis and examination of data. 4.1 Findings and Interpretation of the results Initially, the binary logistic regression technique was applied on the data collected using SPSS. Now, it was a nice time to proceed with the analysis of the results because the data was collected and ready to be examined. The interpretation and analysis is presented in the next sections of this research study. Case Processing Summary Unweighted Casesa N Percent Selected Cases Included in Analysis 192 91.4 Missing Cases 18 8.6 Total 210 100.0 Unselected Cases 0 .0 Total 210 100.0 This table explains the total population in the data file that is the 210 observations or the cases for the analysis of the bankruptcy prediction. This table further elaborates that the there were also some of the cases missing in the data because of the issue of data availability and some of the cases were the figures of zero. Dependent Variable Encoding Original Value Internal Value Bankrupt 0 Non-Bankrupt 1 The above table shows that there are only two variables in the dependent variable of bankruptcy that are the being bankrupt or non-bankrupt. Model Summary Step -2 Log likelihood Cox Snell R Square Nagelkerke R Square 1 234.707a .144 .192 This table elaborates the predictability of the complete model of the logistic regression which meant that to what extent the model predict the variation in the predicted group of bankruptcy. According to Cox Snell, the total predictors jointly explained variation in the groups of bankruptcy was 14.4%. While according to Nagelkirki, the all independent variable explained the group prediction of about 19.2%. Hosmer and Lemeshow Test Step Chi-square df Sig. 1 32.715 8 .000 This table checks the overall model fit which means that the model is at its best in predicting the group variation from non-bankrupt to bankrupt. The hypothesis of the above table is that the test model is fit. The hypothesis is rejected because the sig value is less than .05 which concluded that the test model was not fit in this case of predicting the group variation. Classification Tablea Observed Predicted Banckruptcy Percentage Correct Bankrupt Non-Bankrupt Step 1 Banckruptcy Bankrupt 76 29 72.4 Non-Bankrupt 43 44 50.6 Overall Percentage 62.5 The classification table is the most important table in case of the logistic regression because this table explained the correct identification of the cases correctly identified. The percentage of correctly identified cases is 62.5% which is also commonly known as the hit ratio which means that to what extent the numbers of cases were correctly identified. Variables in the Equation B S.E. Wald df Sig. Exp(B) 95% C.I.for EXP(B) Lower Upper Step 1a DA -1.219 .510 5.725 1 .017 .295 .109 .802 AtoLTD -.002 .001 1.583 1 .208 .998 .996 1.001 CR .938 .348 7.242 1 .007 2.554 1.290 5.056 NPM .037 .073 .262 1 .609 1.038 .899 1.198 SG .161 .232 .482 1 .488 1.175 .745 1.852 Constant .066 .579 .013 1 .910 1.068 This is the final most important table in the logistic regression because this is the only table which shows the role of different predictors in significantly explaining the role in the prediction of group variations. Those important significant variables were only two that were DA, and CR because the sig value of only these variables were less than .05. 4.2 Hypotheses Assessment Summary The hypothesis of the study was distinctive financial ratios have significant impact on the non firms decision to file for bankruptcy. These financial characteristics were current ratio (CR), debt ratio (DA), net profit margin (NPM), assets to long term debt ratio, and growth rate. In this study each of the financial characteristics or financial ratios of firms was tested and concluded the results. TABLE 4.4 : Hypotheses Assessment Summary S.NO. Hypotheses ÃŽÂ ²       SIG. RESULT H1 There is a difference between the Current ratio of bankrupted companies and non bankrupted companies. 0.938 0.007 Accepted H2 There is a difference between the Debt Ratio of bankrupted companies and non bankrupted companies. -1.219 0.017 Accepted H3 There is a difference between the Net Profit Margin Ratio of bankrupted companies and non bankrupted companies. 0.037 0.609 Rejected H4 There is a difference between the Assets to long term debt ratio of bankrupted companies and non bankrupted companies. -0.002 0.208 Rejected H5 There is a difference between the Growth rate of bankrupted companies and non bankrupted companies. 0.161 0.488 Rejected CHAPTER 5: DISCUSSIONS, CONCLUSION, IMPLICATIONS AND FUTURE RESEARCH 5.1 Conclusion It was concluded based on the results of this research study that current ratio and debt ratio were only the independent variables which were showing significance in Pakistani market and these variables were highly significant in playing the vital role explaining the variation in the dependent variable of the prediction of corporate bankruptcy and the remaining independent variables could not explain the variation in the prediction of corporate bankruptcy. These results were not matching with the study conducted by Altman (1968). These results were varying because in various countries, there was difference in environments and circumstances and firms usually made decision accordingly. 5.2 Discussions Current ratio played a significant role in defining the variation in the prediction of corporate bankruptcy and this was also the case with the research study conducted by Altman (1968) because in his study the firm size was also playing a significant role. The variation in the prediction of corporate bankruptcy was not explained by the net profit margin ratio while it was significant in the study done by Altman (1968). The assets to long term debt ratio, and growth rate were not significantly explaining the variation in the prediction of corporate bankruptcy and study analyzed by Altman (1968), concluded the different results with some addition. 5.3 Implications and Recommendations This research was limited to the various firms listed on Karachi Stock Exchange of Pakistan only. The data taken from 44 firms which were took through various sectors of the KSE 100 Index for the year 2004-09 which were previously bankrupt and which were currently operating. It suggested that such type of study should be carried out in other countries of Asia as well, as to have comprehensive idea about the choices of the firms decision to file for bankruptcy. Moreover, it also suggested that other factors except ones examined in this study should be researched as to have perfect idea about the selection of the prediction of corporate bankruptcy. Besides that, this study can also be replicated in other developing countries. 5.4 Future Research This study helped various investors, management and other research conductors in analyzing and observing the behavior of firms regarding their decisions to file for the bankruptcy. Research students who want to work further on the prediction of bankruptcy can be benefited by this research study. Further more, the firms will become advantageous from this study because the study clarifies the distinctive financial characteristics or the financial ratios of different firms which significantly explain the variations in the prediction of corporate bankruptcy.