The Segregation Of Chicago s Segregation Essay - 1448 Words

Chicago is a beautiful city with many different people and things to learn or experience; however, it is a city of segregation, and it has been that way for a long time. Even though it may not be quite visible today, it still happening thorough our city. However, what is so special about ethnicity that people have to hate on each other? Is it because we all are born with different backgrounds or is it because we are raised to hate others? In the history of Chicago’s segregation, we learn about how the whites are seen as the superior beings than others in America. Moreover, we all have seen and learn how race is displayed through our media. Additionally, we all have grown up attaining knowledge from our elders, and we learn about values in life. The society of Chicago are segregated by our history, media, and standards. The history we learn from our teachers in school, which is the segregation between the whites and blacks. I would never understand why people have to hate on ea ch other, but I could see that hate leads to who is superior. Throughout all the history I have learned or what I had remembered about is how white people are the ones who are superior. They brought slaves into America and treated them as animals by brutality beating them from one mistake. The slaves had no rights, and most of the slaves were separated from their family. One of the history lesson that stood out to me the most was about Rosa (Louise McCauley) Parks: she was the lady who refused toShow MoreRelatedThe Civil Rights Act Of 19641689 Words   |  7 PagesThe Civil Rights Act of 1964 ended state and local laws that involved segregation, prohibiting legal discrimination based on ethnicity, color, race, sex, and religion. Now, after much time has passed, people can pose the question: how prominent is segregation in today’s society? In particular, Chicago, the third largest city in the United States, poses interesting dynamics concerning this question. For one, the cit y consistently has high crime and murder rates in specific areas, while other partsRead MoreThe Red Summer Of 19191038 Words   |  5 Pagesin the Chicago race riots. Fighting was happening all over our country. We were killing one another because of the hatred towards racism. â€Å"The Red Summer of 1919 refers to a series of race riots that took place between May and October of that year. Although riots occurred in more than thirty cities throughout the United States, the bloodiest events were in Chicago, Washington D.C. and Elaine, Ark.† (Retreived from the About Education website : http://afroamhistory.about.com/od/segregation/p/The-Red-Summer-Of-1919Read MoreRace And Gentrification. Is Gentrification Causing Segregation1351 Words   |  6 PagesRace and Gentrification Is gentrification causing segregation in urban cities? The majority of modern day cities are in a state of steady gentrification. Many people believe that gentrification is making the city more modern, safe, and appealing to other people. However, these people in their naivety fail to comprehend the hidden consequences and impact of gentrification on various ethnic groups and low-income families. Gentrification is a master of disguise that hides itself with assumed correlationsRead MoreWhite Prosperity Through Gentrification Of The Valley And The Bottom990 Words   |  4 Pagesand only worthy of African-American toil, now the Valley is establishing an institution of wealthy oppression upon the poor individuals within society. For the first time, Morrison is interjecting a more complicated form of segregation, in that through gentrification, segregation is traversing socioeconomic class rather than races. Specifically, the readers are privy to a new version of a cultural migration in which the citizens of the Bottom who envied the Valley now are forced to leave their expensiveRead MoreRacism : A Racially Segregated Chicago1550 Words   |  7 PagesA racially segregated Chicago had experienced few race riots prior to 1919. However, between April 1919 and October 1919, race riots spanned the nation; this became known as the Red Summer. On July 27, 1919, Chicagoans started to express their emotions on racial issues, which turned into violence, lasting several days and resulting in the deaths, injuries, and displacement of hundreds of people. During this time, Chicagoans opinions regarding racism led to extreme chaos, leaving African AmericansRead MoreRacial Feelings Of Chicago, Illinois1643 Words   |  7 PagesRacial feelings in Chicago, Illinois are very similar today to how they were in the 1950s. The Younger family from Lorraine Hansberry’s A Raisin in the Sun was the epitome of a lower class, black family during that time. They dealt with the hards hips of never having enough money and losing family happiness due to their lack of wealth. Modern-day Chicago can easily be compared to Chicago from the mid 1900s because of the ever-growing amount of poor blacks and the poverty riven African-American neighborhoodsRead MoreThe Chicago Public School System1226 Words   |  5 PagesThe Chicago Public School system was slow to integrate even after the Brown v. Board of Education ruling of 1954. It took much protesting, federal involvement and public outrage to finally bring about more racial equality for the students of Chicago. While the Brown v. Board of Education ruling is thought of as being the reason any racial equality was brought to schools after such long hardships for the African American students, Chicago had a difficult time bringing the ruling to fruition and federalRead MoreThe Voice Of The Voiceless Essay1164 Words   |  5 Pagestaken segregation and denial of opportunities are there to diminish him or her? . These we re the times Dr. Martin Luther King was born into and these were the questions his life was forged to answer, fighting for equal rights of the â€Å"negro† during segregation. Born in January 15, 1929 Dr. King was raised in a family where love was central and enjoyable relationships were always present. King`s loving family was able to provide him a health upbringing followed by a strong education. King`s fatherRead MoreThe Glory Field By Walter Dean Myers1265 Words   |  6 PagesSadie Hosler 2 hour 11/09/15 Slavery to Segregation; Civil War to Civil Rights The Glory Field is a novel by Walter Dean Myers that follows the Lewis family through racism and segregation. It starts with Muhammad Bilal being captured from Africa in 1753. It follows through to see young Lizzy escape from slavery on the live Oaks plantation in South Carolina in 1864. After the Civil War, the family is given is plot of land they refer to as the â€Å"Glory Field†, which represents hope for the family duringRead MoreThe Emergence Of The Urban Ghettos1347 Words   |  6 PagesAfrican Americans migrated north into industrial communities following both World Wars, the manifestation of the urban ghettos began to develop. In the early 1900’s we begin to see public housing programs, public improvement projects, redevelopment projects, urban renewal policies, and other factors being utilized to attain racial segregation within communities. With the rise of black populations in inner cities, manufacturing jobs were lured away with cheap land and low taxes. As industry funneled

Analysis Of Conrad s Heart Of Darkness - 1693 Words

There square measure 3 main topics to debate once it involves analyzing Conrad’s Heart of Darkness - symbolic interpretations, character development and language. Heart of Darkness has Associate in Nursing abundance of virtually imperceptible undertones. This novelette is written to such exactitude and high detail that nearly each paragraph includes a vital half to play within the overall plot. The author, Conrad, concentrates on making a story for instance concepts and themes, instead of simply an easy narrative. These concepts and themes square measure perpetually pitched at the reader during a} very intense and unrelenting manner, that makes all of them the additional powerful. Therefore, even a passage of simply 5 pages will have a†¦show more content†¦this is often a really model of the hidden depths to Heart of Darkness, within which things will have over one which means. the ultimate 2 areas of notable symbolism during this passage occur on pages fifty eight and fifty nine. each touch upon the concept that the flaccid devils (the manager and his uncle) don t seem to be entirely human. this concept needs to be fastidiously taken, but - each characters clearly square measure human; Teodor Josef Konrad Korzeniowski is actually implying that their minds, their souls, might not be entirely what one could take into account human. On page 58, the uncle is delineated as extending his short flipper of Associate in Nursing arm.†¢ This, like the visitation quote, delineated on top of, is taken in 2 terribly totally different ways: The uncle is seemingly overweight (He carried his fat adipose tissue showily on his short legs,†¢ page 55), therefore describing his arm as a flipper might merely be emphasising his excess weight, inflicting his arm to seem misshapen; it might even be taken to recommend the

Team Discussion on App for Apple iPhone Free Essays

Working for Apple the type of research one would want to see done would be a reporting study. This type of study will display data that provides statistics comparing the application to other applications that users are already using and what features of the application users are wanting. This report is the first step in determining if the application is worth moving forward with. We will write a custom essay sample on Team Discussion on App for Apple iPhone or any similar topic only for you Order Now Once the application shows to be a valuable asset for users the next step is to focus on what the users want in an applications. I would expect the proposal to demonstrate on how user-friendly the application is, and who is the target audience this application is intended for. Many users want an application easy to use that a child can figure it out in one step. Another key factor users look for is the cost of the application. Keeping the cost down at a low price that is appealing to the user but profitable to the company will make this application successful for both parties. Derek’s Response to Nancy I think the reporting study would be a great way to determine whether or not to move forward with the acceptance of the App into the Apple Store. This is because the reporting study would give background information on the App study, including concrete details of the App and how it differs from other Apps in the same category. It would also give the necessary data to determine what group the App would best suit. This information would be obviously important because one would not want an App that is geared toward adults be in the viewing control of children without the proper warning labels. I think that it would have been a great way to find out if the customers would want to buy an app or not. When people are getting ready to get an app they definitely want something that is useful and they will not be disappointed with. When doing research you will be able to see if the app will do good or not. Also it will be able to decipher whether you are gearing it toward the correct audience. You do not want to just throw something out there to see if it will work without research. It is important to test your product before delivering it. If I worked for Apple, the first thing I would want to see in a proposal for a new App for the App store would be whether or not the proposal has met the policy and procedures by Apple. The reason I would do this is that if the requirements were met the App would be compatible with the requirements of Apple’s App store on so many levels. For example: If there are technical glitches or errors the App will not be approved by our technicians. I will also look for the simplicity of the App to make sure it will be user friendly. Creativity would play a big role in App approval because with more than 300,000 Apps in the App store, we would think it is important for the App to be unique. Research would be just as important as policies and procedures to gain approval for the App store. Although at times because of inappropriate research, we would have to be aware of this type of research to make sure it does not become part of the Apple App store. Inappropriate research will include anything that has any racial tones that may offend any of our customers and research must be in compliance with the law. Bottom line is, I will not except anything is unethical. User-friendly application is a function that users look for when deciding on purchasing the application or not. Statics stating what functions users are most likely to be attractive to provides insight if the product will be successful. These statics are important and presenting them in the proposal will help for determination of releasing the application. The application uniqueness is also important and knowing the competition of other application provides insight. Researching applications similar to the one in the proposal will reflect on the popularity of the new application. Following policies, procedures, compatibility, and ethical conduct are very important steps in business, but I am not sure if this information is appropriate research for a proposal. I agree with Derek on this one. You have to make sure that you can get approval from the app store before you try to finalize your product. If you were to introduce a product that was not something that the App store would not even be allowed to have in there store then you would be just wasting time. Research is the key ingredient to making sure that you are producing the right type of app or anything else. Without this we would have a lot of failed businesses. Always make sure that what we are producing is what the people want. Developers are constantly inventing and improving apps for the Apple ® iPhone ® mobile digital device. As a representative for Apple, researching the market of available apps helps take the first step into developing a successful app. A new app proposal requires a content analysis that helps educate developers on successful app designsand marketing. Proving there is a consumer interest for the app from a variety of age groups, demographics, genders, and geographical locations may help determine whether or not the app gets approved. The proposal should provide evidence regarding how the potential app meets the needs of Apple’s customer base. The proposed app plans should surpass the competition by demonstrating that it is one of a kind and has potential room for growth. The research of the app should determine its reliability and show data that ensure the app functions properly with the operating systems (OS) configurations for each device Apple offers. There are numerous apps with an exceedingly crowded market that the barrier to access is low and the barrier to attaining success is high. Offering research for an app that is difficult to duplicate but easy for customers to download will help in the approval process. However, including inappropriate research in the proposal is cause for disapproval. Technical problems like annoying bugs and constant crashes will result in disapproval from Apple. Using images, words, software, or ideas that Apple owns or information that does not pertain directly to the app and its functionality, technical content, or design criteria is inappropriate (Apple, 2012). Proposals containing explicit or offensive material such as adult material, racial slurs, and any kind of discrimination and defamation are considered inappropriate and disapproval may occur (Apple, 2012). However, there is also research that can be one of the priciest errors developers can make. Applying funds to insufficient research or researching ideas that are extensively available becomes futile for developers. They concentrate on generating original ideas and waste time as well as energy producing those apps. How to cite Team Discussion on App for Apple iPhone, Papers

Serenity of Courtroom at Melbourne Magistrateâ€Myassignmenthelp.Com

Question: Discuss About The Serenity Of Courtroom At Melbourne Magistrate? Answer: Introducation: The serenity of the courtroom at Melbournes magistrate court offers a sense of security and comfort. The walls and the mere presence of policemen heavily guarding the court entrance almost made me a bit uncomfortable. Once inside the courtroom, one cannot help but blend in with the seriousness of the building let alone the matters discussed in the courtroom. The layout of the Hearing Room The layout of a normal courtroom contains a raised bench where the magistrate alongside a bench clerk seat. There is also a dock whereby defendants are housed as they hear the proceedings on their case. A witness stand which houses witnesses is available. There is a bar table where both parties involved in the case at hand seat. Finally at the back, is a wide public gallery that contains the listening community. The Personnel in the Hearing In the Melbourne magistrate court, the following personnel titles and their respective roles are present during hearings. The magistrate is responsible for deciding whether the accused is guilty or not. Prosecutor is in charge of presenting the case against the accused. Duty solicitor provides legal advice on the court and can also act as a prosecutor. The bench clerk takes part in announcing cases, inviting witnesses to the stand, assist in oath administration and prepare the available court orders for necessary distribution. Witnesses who contribute as part of the evidence in a present case participate in court hearings. The public which comprises of relations and other individuals interested in the court proceedings are also part of a court hearing. Types of Cases Heard by the Civil Personnel There are a number of different cases heard at the Melbourne magistrates court. They include; hearings on warrant application, bail application, money and civil disputes, family law and matters pertaining to family violence. Steps Taken in Commencing and Defending an Action in Court Before a plaintiff resorts to issuing a complaint in court, it is advisable to try and solve the matter personally with the defendant. If the cause of legal action involves money recovery, for example, it is recommendable to file a complaint document, Form 5A, to the court (Magistratescourt.vic.gov.au, 2017). This form must state your personal details of contact and address, the defendants details, your claim statement; the date, venue and description of the event. After filling the form, the plaintiff is required to lodge the complaint to the court almost adjacent to anything related to your claim statement. According to the Civil Procedure Rules 2010, there is a mandatory payable fee when filing a complaint. The defendant is then supposed to be issued a copy of the valid complaint. An Affidavit of service, which entails information on time and manner in which the document was issued to the defendant, should be provided. Finally, the plaintiff should maintain contact with the magist rates court for updates concerning the pending case. Melbourne Landlord v Tenants During the visit to Melbourne court, there was an ongoing case between a landlord and her tenants. The tenants are accused of sub-renting a two bedroom Fitzroy apartment belonging to Mrs. Catherine Swan (Lenaghan, 2016). According to Justice Clyde Crofts ruling, the sub-renting was not part of the agreement between the tenants and their landlord, based on the given accounts by various written proof contracts. The Landlord-Tenant Act The law used in governing the case is the Landlord-tenant law which states the respective rights and duties expected by tenants and landlords (Ahlen Foster, 2014, 20). The major elements in this law are real property and contract law. There are two major types of leases identified by the landlord-tenant law; residential leases and business leases. Residential leases are agreements created for people living in groups or individually in a specific leased space. Commercial leases, on the other hand, involve spaces set aside for trade which includes; industrial purpose, manufacture and retailing or even official set up (Ezarik, 2006, 68). Landlord duties contained in the Landlord-tenant act include; duty of possession delivery, quiet enjoyment contract, and habitability warranty (Huben, 2013, 2). Tenants also have duties to play in accordance with the law. These duties are; premise preservation, operation in accordance with the lease agreement and the rightful duty to pay rent as agreed upon. Based on the Landlord-tenant law, the following conditions can lead to a rightful reason of tenant eviction (Suykens, 2015, 490). Tenants refusal to pay rent on the agreed time and without submitting a questionable reason of delay. The willful damage to premises by the tenant exceeding the normal limits of wearing out. Continuous disorderly conduct by the tenant leading to disturbance of peace to other tenants. Tenants' participation in illegal activity within the rentals without the landlord's concern. Failure of the tenant to grant access to residential premises after a notice of eviction. Landlord-Tenant Law in Accordance with Mrs. Swan v Tenant According to the substantial evidence provided in the court hearing, the tenants were guilty of breaching their residential lease. The conclusion was followed by the illegal sub-renting of the rental unit to short-stay guests who in turn paid for their stay. Moreover, the sub-renting was done without the landlords knowledge or approval. The Case Outcome The final judgment given by justice Croft was that the tenants be evicted, granting Mrs. Swan a possession order of her rental apartment. Evidently, Mrs. Swan was declared the outright winner in the case appeal. The tenants were wrong to breach their lease agreement by illegally sub-renting the apartment without the landlords knowledge. Conclusion According to my viewing on the courts final decision, I believe it was only fair for the landlord to regain possession of her apartment. Furthermore, the tenants ought to be grateful that the court did not decide to fine them any penalty for their illegal sub-renting. If I was given the option to decide on the ruling, I would have charged the tenants a sum fine for illegal sub-renting. This is because they illegally acquired the money from another person's hard work of setting up the residential premise. References Ahlen, J, Foster, L 2014, 'Uniform Residential Landlord-Tenant Law: Changes on the Way', Probate Property, 28, 4, pp. 20-24 Ezarik, M 2006, 'LESSONS in landlording', University Business, 9, 9, pp. 68-72, Professional Development Collection. Huben, BD 2013, 'A Matter of Priorities: Mechanics' Liens and Landlord Indemnity Claims in Retail Tenant Bankruptcies', Shopping Center Legal Update, 33, 3, pp. 1-4, Business Source Complete, Lenaghan, N. (2016). 404 | afr.com. [online] Afr.com. Available at: https://www.afr.com/real-estate/melbourne-landlord-wins-landmark-airbnb-case-20160609-gpfa3g. [Accessed 11 May 2017]. Magistratescourt.vic.gov.au. (2017). About the Court | Magistrates' Court of Victoria. [online] Available at: https://www.magistratescourt.vic.gov.au/about-us/about-court [Accessed 11 May 2017]. Suykens, B 2015, 'The Land that Disappeared: Forceful Occupation, Disputes and the Negotiation of Landlord Power in a Bangladeshi Bastee', Development Change, 46, 3, pp. 486-507

I Am Going To Compare And Contrast The Similarities And Differences Be

I am going to compare and contrast the similarities and differences between dogs and cats. The similarities are innumerable, yet this holds true with the differences as well. First, we shall discuss the similarities that these two creatures share. One of the most obvious similarities between these two animals is that they both have hair. When a creature has hair, it belongs to the mammal kingdom. This means that they give birth to their young. They also drink milk when they are babies. Another similarity that these animals share is that they are domesticated animals kept as pets. They also require love and affection from their owner. If you show love and affection toward these animals, they will show it back. Another thing that is the same in both of them is that when you pet them, not only does it relieve stress, it gets dog or cat hair every where. They both give birth to multiple offspring at one time, which must be very hard on the mother. Now that I am finished with my explanation of ;the similarities between dogs and cats, I will now discuss with you the differences between these two majestic animals. One of the main differences is that of their species. The cats belong to the family of felines. Dogs, on the other hand, are canines. Another difference is that dogs are pack animals, which means you should spend lots of time with your dog so that it doesn't get lonely. Cats are loners, meaning they can spend allot of time alone without getting lonely. Another big difference is the sounds that they make. A dog goes woof, bark, growl, or howl. A cat, on the other hand, goes meow and purr. Another difference is their social status, and how they determine their ranks. Cats don't have any. The determining factor in dogs is the tail. When a cat holds it's tail up, it means it is happy, but in dogs, how high they hold their tail is how they determine ranks. If one dog meets another dog, and one holds it tail up, it is the one of the higher social class. Another difference is that cats are nocturnal, meaning they go out at night. Dogs, however, are day animals. Another very obvious difference between dogs and cats is that dogs are usually bigger than cats. Cats are usually scared of dogs, and the dogs usually chase the cats. Dogs are also somewhat smarter than cats in the area of verbal command. For example, you can call your dog by name and usually it will come to you, unlike a cat. Also, you can train dogs to do tricks when commanded. Some of the most commonly seen tricks in dogs are role over, fetch, shake hands, sit down, lay down, and play dead. I have never seen a cat do any of these things, and I doubt that I ever will get an opportunity to see a cat preform even one of these tricks. Another difference between cats and dogs is that cats hunt mice, birds, rabbits, and many other types of rodents. A dog will maybe catch a bird, but I have never seen a dog catch a rodent. Here is the reason most people have cats, other than the reason that they are cute, is to catch mice and other rodents. Cats and dogs also hunt in different ways. A dog hunt directly, and when it catches its prey, it kills it immediately. A cat, on the other hand, likes to play with its food, tease it is another way someone described a cat hunting. For example, when a cat sees a mouse, it will pounce on it, then usually claw or bite it, then let it go. It will then pounce on it again, and let it go. Cats will do this for about a half hour before it finally eats its prey. Another difference is their paws and claws. While both of their paws are padded, cats are padded so that they can be stealthy. Their claws are different in the are of sharpness, among other things. Another difference in claws is th at a cats are retractable, while a dog's aren't. For example, when

Agency cost and ownership structure in aim traded companies The WritePass Journal

Agency cost and ownership structure in aim traded companies Introduction Agency cost and ownership structure in aim traded companies IntroductionOverview of Alternative Investment MarketCorporate governance in AIM companies The causes of agency problemThe measurement of agency costConclusion ReferencesRelated Introduction The aim of this chapter is to explain and discuss a number of prior researches that have been developed in relation with agency cost. The literatures are grouped into four parts based on their different research area. The first part gives the overview of Alternative Investment Market (AIM). Subsequently, the issue of corporate governance in AIM companies will be discussed. The next part will focus on the causes of agency problem. Both direct and indirect measurement of agency cost, include asset utilisation, operating expense and the firm’s performance, will be detailed analysed in the final part. Overview of Alternative Investment Market Alternative Investment Market (AIM) is the world’s leading market for smaller and growing companies. It helps them to raise new capital and allowing their shares to be traded widely. Since it was launched in 1995, over 3000 companies  from across the world have joined AIM and a large proportion of them are in oil and gas industry. Its admission requirement and on-going rules are less onerous. For example, there is no requirement on prior trading, minimum public float or market capitalization. In fact, to be admitted to AIM, a firm is only required to have the support from a nominated advisor (Nomad). Subsequently, the only disclosure obligation for the firm is the general duty of disclosure requiring information which is reasonably considered to be necessary by the issuer which will enable investors to have a full understanding of the applicant’s financial position. AIM membership roles were thus kept simpler for encouraging a wide variety of companies to join, keepin g capital rising and reducing membership cost. However, a SEC commissioner, Roel Campos likened AIM as a casino, and he stated that 30% of the issuers that list on AIM are gone within one year (Bawden Waller, 2007). This comment has aroused great amount of abjections and London Stock Exchange (LSE) claimed that the only 2% companies go into liquidation each year. Corporate governance in AIM companies AIM is crucial for investor’s confidence to the market and companies’ significant failures on AIM market would have a negative effect on the overall confidence in the UK market. A consequence of the deliberately light regulatory burden placed in AIM companies means that they are not obliged to abide the UK’s Combined Code (2006). However, based on the UK’s Combined Code, the Guidelines on the Quoted Corporate Governance for AIM companies have been produced by Companies Alliance (QCA). According to the wide range of interviews and detailed analysis of the corporate governance statements in the annual report and accounts, Mallin and Kean (2008) found the majority of their sample AIM companies disclose some basic elements of good governance practice, such as including a corporate statement, identifying the directors and their responsibilities, and splitting the role of chairman and the CEO, and the presence of board sub-committees. However, their sample of AI M companies did not disclose as much corporate governance practice as they were expected by the QCA Guidelines’ recommendations. Some interesting results were given by the regression of the firm and market related factors on the disclosure score. Firstly, the young AIM companies tend to disclose more of their governance practices than the older ones. Secondly, larger companies disclose more than smaller ones. Thirdly, by the presence of the institutional investors has influence on the disclosure levels. Subsequently, the higher gearing ratio of the company, the lower disclosure level there will be. It also suggested that the AIM companies with no long-term debt may be required better governance structures to protect the claims of equity investors, because there are no debt holders to monitor the companies. In addition, the board size has positive impact on the reporting of governance practice and the companies with small board are less likely to obey to the QCA Guidelines. Th erefore, the efficiency of corporate governance in AIM companies is related to the age of companies, size, gearing ratio, debt, as well as board size. The causes of agency problem When discussing the ownership of an organization, ‘agency problem’ is an inevitable vocabulary. According to Jensen and Meckling (1976), the agency relationship is defined as a contract between the principal(s) and the agent who is given some decision making authority to run the firm on the behalf of principal(s). In fact, for majority of companies, both agent and principals are utility maximizes. Consequently, the agent will not always act in the interest of principal. To mitigate the conflict in interest between both parties is a big issue in corporate governance. Besides establishing appropriate incentives for the agent, monitoring cost will be designed to limit the aberrant activities of the agent. In some situations, the agent needs to pay to expend resources (bonding costs) to guarantee he/she will not take the actions that will harm the principal’s interest or to ensure that the principal will be compensated if the agent does take such actions. Additionally, there will be some divergence between the agent’s decisions and those decisions which would maximize the principal’s welfare. The reduction in the principal’s welfare caused by thus divergence is also a cost of agency relationship which is referred by Jensen et al. (1976) as ‘residual loss’. They also stated that the costs of deviation from value-maximization decline as the management ownership rises. As their stakes rise, managers pay a larger part of these costs and are less likely to squander corporate wealth. However, limited direct evidence exists on the magnitude and extent of the actual costs with the agency problem. The measurement of agency cost Direct measurement Ang et al. (2000) analyzed the how agency cost is affected by the firm’s ownership structure, number of outsider managers and non-manger shareholders and external monitoring by banks. They measured firm’s agency cost with two measures, sales to asset ratio and expense to sales ratio. They argued that agency cost can be directly measured by assets-to-sales ratio as it measures the efficiency with which management uses the firm’s assets to generate sales. A high ratio reflects that the assets are generating significant sales and therefore indicates low agency cost. Conversely, a low ratio shows that manager makes poor investment decisions, exerts insufficient effort, resulting in low revenues, and consumes excessive unproductive assets, such as automobiles, fancy office space and resort properties. The expense ratio is the operating expense scaled by annual sales. It is a measure of how effectively the firm’s manager controls operating cost, including excess ive perquisite consumption and other direct agency cost. In contrast to the sales-to-asset ratio, agency cost is in line with the expense ratio. Banks usually require managers to report results regularly and honestly; consequently, managers may be forced to run the business efficiently. Thus, bank monitoring complements the monitoring of managers by shareholders, thereby reducing owner-manager agency cost indirectly. Ang et al. (2000) utilized a sample of 1708 small corporate from the National Survey of Small Business Finances (NSSBF) database and found agency costs are significantly higher when an outside manager manages the firm and when there are more non-manager shareholders. In this situation, managers’ ownership share and monitoring by banks may be a helpful corporate control mechanism that can decrease agency costs. Singh and Davidson (2003) adopted the approach used by Ang, Cole, and Lin to study large firms and sales, general, and administrative expenses were applied to measure agency cost instead of total operating expenses. Moreover, they analysed the role of corporate leverage in influencing the agency cost experienced by the large corporations instead of the banking relationship because large firms have larger access to the public debt market and therefore less depend on bank financing. They found that higher managerial ownership does positively influence asset utilization efficiency which was in line with result of Ang, Cole, and Lin. However, excessive discretionary expenses cannot be decreased by such ownership. Additionally, larger board size and outside block ownership does not improve the efficiency of a large corporation. However, this measure has three potential drawbacks. As McKnight and Weir (2009) suggested, sales may not actually come from profitable activities so sales may not be consistent with shareholders welfare. Secondly, cash flows that generated by the sales may being expropriated instead of being distributed to shareholders. Thirdly, as Coles et al. (2005) stated, productivity can vary even between firms within the same industry. Generally speaking, Ang et al. (2000) and Singh and Davidson (2003) provided a useful indicator of agency costs. Jacky Yuk-Chow So (2005) noticed that in Ang, Cole, and Lin’s study, ownership variables and external monitoring variables are highly significant statistically when a single regression is applied. However, some of these variables, such as family ownership and a banking relationship become insignificant when they are regressors of the multiple regressions. Therefore, he focused on the combined effect of expense ratio and asset-to sale ratio to measure agency cost using the NSSBF database from 1993 survey. This combined effect was analysed using both internal and external control variables. Debt-to-asset ratio and ownership variables were applied to study the impact of internal corporate control and the firm’s relationship to its bank was as proxies for external corporate control. Additionally, a dummy variable was also employed to capture the industry effect. Jacky Yuk-Chow So proposed that, the ‘combined effect’ approach implies that cash flow is a more app ropriate measure of managerial performance since it captures not only efficiency, but also leverage, which is measured by the debt-to-asset ratio. The ordinary least squares (OLS) method and seemingly uncorrelated regression (SUR) were used to test his hypotheses and found out firms in manufacturing industry tend to have the highest agency cost; family ownership more appropriately resolves the agency problem; cash flow reflect the joint impact of agency cost and efficiency; agency cost increases when there are more non-shareholder managers; the number of banks involves and the length of the bank relationship do not have significant impact to the agency cost. Indirectly measurement Jensen (1986) paid attention to the conflicts of interest between shareholders and managers over payout policies when the organization generates large free cash flow, which is the cash flow in excess of that requires to fund all projects that have positive net present value when discounted at the relevant coat of capital. He stated that agency costs will increase when high free cash flows are combined with poor growth opportunities and hence large free cash flows suggest greater managerial discretion and higher agency costs. Therefore, motivating managers to disgorge the cash rather than investing in low-return project or wasting it on organization inefficiencies is a puzzle of many firms. This theory explains the benefits of debt in reducing agency cost of free cash flows and how debt can substitute for dividends. Managers may increase dividends or repurchase stock or even announce a ‘permanent’ increase in dividend to control the use of free cash flow. However, such pr omises are weak since the dividends can be reduced in the future. In fact, the organization will be punished if dividend is cut with significant stock price reduction is consistent with the agency of free cash flow. Debt enables managers effectively bond their promise to pay out future cash flows. Thus debt reduces the agency cost of free cash flow by reducing the cash flow available for spending at the discretion of managers and can be an effective substitute for dividends. The interaction of free cash flow and growth prospects are used to measure of agency cost in many previous literatures. Opler and Titman (1993) stated that firms that have good growth prospects are more likely to be better managed. They are also less likely to have excess free cash flows because the available cash will be spent on positive net present value projects. Thus, as Jenson (1986), Doukas, Kim, and Pantzalis (2000) argued, agency costs may be regarded as a function of the interaction of growth opportunities and free cash flow. Firms that combine high free cash flow and low growth prospects can be regarded as suffering from high agency costs. Therefore, control function of debt is more important in thus organizations. Acquisitions are one way in which funds can be spent by managers rather than distributed to shareholders. Free cash flow theory (Jensen, 1986) predicts acquisitions decrease, rather than increase, shareholder wealth, particularly from the perspective of the acquirer’s shareholders. There is a significant literature which is in consistent with this theory. Servaes (1991) and Houston, James and Ryngaert (2001) have found significant negative short run returns to acquirers. Agrawal, Jaffe Mandelker (1992) undertook a thorough analysis of the post-merger performance of acquiring firms, measured by the stock market performance of a large number of acquiring firms over a long period of time. They concluded there is a strong evidence of long term underperformance following merger and this result is supported by Kohers and Kohers (2001). Accounting studies such as Sharma and Ho (2002) also show poorer post-acquisition performance. Finally, the survey done by Kelly, Cook, and Spitzer (1999) provide evidence that 53% of acquisitions were believed to have destroyed value. Given the extensive evidence that indicates a lack of positive returns to acquiring firms’ shareholders, it can be concluded that acquisitions can represent agency costs as directors use funds on negative net present value projects. Demsetz (1983) recognized, when a manager owns a small stake, market discipline may still force him toward value maximization. In contrast, a manager who controls a substantial fraction of the firms equity may have enough voting power or influence more generally to guarantee his employment with the firm at an attractive salary. In this case, manager may indulge his preference for non-value-maximizing behaviour. This Entrenchment hypothesis predicts the agency may increase and corporate assets can be less valuable when managed by an individual free from checks on his control. Morck et al. (1988) investigated the relationship between management ownership and the market value of the firm which is measured by Tobin’s Q. They found that Tobin’s Q increases as the board ownership increases from 0% to 5%, declines as the ownership rises further to 25%, and then continues to rise slowly when the board ownership rises beyond 25%. The increase of Tobin’s Q with ownership can be explained the convergence of interests between managers and shareholders, while the decline reflects entrenchment of the management team. The results confirm the conclusion that imposing a linear relationship between profit and the ownership by large shareholders is not appropriate. They also found that the presence of the founding family adversely affects Tobin’s Q in older firms, where the entrepreneurial of the founder might be less valuable. Conclusion The perspective of the development of AIM is optimistic. Mitigating the agency cost is a core part in corporate governance. Based on previous study, agency costs are higher when an outside manager manages the firm and when there are more non-manager shareholders. Managers’ ownership share and monitoring by banks may be a helpful corporate control mechanism that can decrease agency costs. However, imposing a linear relationship between profit and the ownership by large shareholders is not appropriate. The decrease of free cash flow will also decrease the agency cost. References Agrawal, A., Jaffe, J.F. Mandelker, G.N., 1992. The Post-Merger Performance of Acquiring Firms: A Re-Examination of an Anomaly. Journal of Finance, 47, 1605-1621. Ang, J., Cole, R., Lin, J., 2000. Agency Costs and Ownership Structure. The Journal of Finance, 55(1), 81–106. Bawden, T. Waller, M., 2007. London vs. New York: top US regulator attacks AIM ‘casino’. http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article1490202.ece (accessed: 14 Jan 2011). Coles, J., Lemmon, M., Mescke, J., 2005. Structural Models and Endogeneity in Corporate Finance: The link between managerial ownership and corporate performance. Arizona State University working paper. Demsete, H., 1983, The Structure of Ownership and the Theory of the Firm. Journal of Law and Economics, 26, 375-390. Doukas, J., Kim, C., Pantzalis, C., 2000. Security Analysts, Agency Costs, and Company Characteristics. Financial Analysts Journal, 56(6), 54–63. Houston, J., James, C., Ryngaert, M., 2001. Where do merger gains come from? Bank mergers from the perspective of insiders and outsiders. Journal of Financial Economics, 60, 285–311. Jacky Yuk-Chow So, 2005. Agency Costs and Ownership Structure: Evidence from the Small Business Finance Survey Data Base. Texas AM International University working paper. Jensen, M., Meckling, W, 1976. Theory of the Firm: Managerial Behaviour, Agency Costs and Ownership Structure. Journal of Financial Economics, 3, 305–360. Jensen, M. C., 1986. Agency Costs of Free Cash Flow, Corporate Finance and Takeovers. American Economics Review, 76, 323–339. Jensen, M. C., 1993. The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems. Journal of Finance, 43(3), 831–880. Kohers, N., Kohers, T., 2001. Takeovers of technology firms: Expectations vs. reality. Financial Management, 30, 35–54. Kelly, J., Cook, C., Spitzer, D., 1999. Unlocking Shareholder Value: The Keys to Success. New York: KPMG LLP. McKnight, P. J. Weir, C., 2009. Agency Costs, Corporate Governance Mechanisms and Ownership Structure in Large UK Publicly Quoted Companies: A Panel Data Analysis. The Quarterly Review of Economics and Finance, 49, 139–158. Opler, T., Titman, S., 1993. The Determinants of Leveraged Buyout Activity: Free Cash Flow vs. Financial Distress Costs. Journal of Finance, 48, 1985–1999. Servaes, H., 1991. Tobin’s Q and the gains from takeovers. Journal of Finance, 46, 409–41. Sharma, D., Ho, J., 2002. The Impact of Acquisitions on Operating Performance: Some Australian Evidence. Journal of Business Finance and Accounting, 29, 155–200. Singh, M., Davidson, W. A., 2003. Agency Costs, Ownership Structures and Corporate Governance Mechanisms. Journal of Banking and Finance, 27, 793–816. Morck, R., Shleifer, A. Vishny, R. W., 1988, Management Ownership and Market Valuation. Journal of Financial Economics, 20, 293-315. Mallin, C. Kean Ow-Yong, 2008. Corporate Governance in Alternative Investment Market. The Institute of Chartered Accountants of Scotland.

Marxism Essay Example | Topics and Well Written Essays - 750 words

Marxism - Essay Example Marx observed that men were below and even seemed that under the control of the society. This is the main point of agreement with Friedrich Engels who wrote the Principles of Communism (Kuper, 1972). Marxism started as a principle to manage the material conditions within the society such as the production of goods. According to Marx, the materialist conception should be the main focus in the record of history of human society because material production is the basis of social life, thus, the real history. He expressed that in the production of goods the process and development as well as the instruments and methods used were clearer and more distinct indications of the differences in the periods of human history (D’Amato, 2006). Basically, the main content of the evolution of Marxism is based on the economic views ad capitalism. Although Marx perceived that this view is a holistic approach to the determination and study of the different stages in human history, the different succeeding philosophers created different perspectives within his classical view to the modern views. The main achievement of Marxism is the importance given to the meaning of capitalism. Prior to the concept, the perspective of the society is focused on different aspects. Through Marx and Engels’ views, the economics of capitalism and the labor theory of value acquired more attention and became the subject of research. Marx focused his work in the systematic description of commodity which became the focus of his capitalist principle. Through the course of his career, he built up on the concept. He presented important factors that can affect the capitalist structure, for example the scarcity and the human labor (D’Amato, 2006). Based on the analysis of Marxism, the feasibility of the principle can be compared to the life of an organism that grows, develops and