DIstinctive Voices Essay Essay

How does the use of distinctive voices emphasise the ways that individuals respond to significant aspects of life? In your response, make detailed reference to your prescribed text Severn Cullis- Suzuki and J.F. Kennedy and ONE other related text of your own choosing. Distinctive voices provide understanding and emphasise the significant events and aspects of life in relation to the individual and their underlying place in the society. Both John F. Kennedy and Severn Cullis Suzuki provide evidence of this which is evident in the use of contrast, anaphora, imagery, rhetorical questions and allusion but is also perpetuated in The Sharpness of Death by Gwen Harwood. These texts provide understanding and connections within eachother†¦Ã¢â‚¬ ¦.. Distinctive Voices engage with the audience to create an understanding with people about current events. The Address to the Plenary Session, Earth summit speech spoken by Severn Cullis-Suzuki is using a remonstrative voice to point out the issues in the environment today, she points out how important this earth is and how it is shared and illustrates the hypocrisy of adults in values they instill in children but fail to execute themselves. â€Å"You don’t know how to fix the holes in our ozone layer. You don’t know how to bring salmon back up our dead stream. You don’t know how to bring back animals that are now extinct† this use of anaphora clearly highlights both the problems many places on earth are facing while also tying in the fact that it cant be fixed and how this needs to be changed. The childs voice is also clear throughout this speech when she dreams â€Å"of great herds of wild animals, jungles and rainforests full of birds and butterflies† and she uses this to spike thought and emotion from the audience when she states â€Å"I wonder if they will exist for my children to see. Did you ever have to worry abput these little things growing up†. This speech sparks thought and emotion from the audience which is exactly what it needs to do so something will be changed and it promotes a significant environmental aspect of everyones lives aiming for change. A voice is used to challenge, change and inspire audiences and John F. Kennedys Inaugural Address perpetuates this. He acknowledges change, pledges  support, shows acceptance of responsibilities and rallys action and participation from the citizens. He uses a strong presidential voice to portray a view of the America he invisions, â€Å"we shall always hope to find them strongly supporting their own freedom and to remember that, in the past, those who were foolishly sought power by riding the tiger ended up inside† this metaphor highlights his strength and authority to perpetuate to the citizens what they should do and what will happen if they don’t obey or learn from their mistakes. He also uses a religious voice to show his beliefs and inspire more people to follow him, he states â€Å"to undo the heavy burdens and to let the oppressed go free† which is a passeage from the book of Isiah. This passage declares the Christian faith and presidency is underpinned by Christian values. Through the use of metaphor and biblical allusion Kennedy was able to provide light onto his rein as president and show his intentions as president which inspired the individuals of America respond with hope for their country. A distinctive voice is one way that composers connect with their audiences. Gwen Harwood in the poem The Sharpness of Death portrays the idea that life is to be treasured and if you stop and ponder death to often you will waste your life away, you may aswell be dead already, life is for the living through the composers voice which is evident in the use of an oxymoron. â€Å"untranslatable meanings† which shows understanding but in the voice of the character death is seen as inevitable and pain and suffering is normal, she sort of talks to death witnessed when she states â€Å"if I fall from that time then set your teeth in me†. The expresses the thought of her death and she tells death that if she were to forget of the greatest people and times in her life she wants to die for she does not want to experience life without these. Through the two voices provided in one text Harwood was able to portray to visions of living which is an aspect of every individuals life, their demise. They imagine it over and think about it so often and Gwen Harwood aimed to provide an understanding of how she handles the concept of death with the thought of life and how we exist now and our memories are more important. She uses two voices to emphasise the fact that we exist now and how individuals should be reminded of this before they think of death. Unique voices are what stands out when an influential person or significant topic are spoken about, These different angles provide individuals a way of understanding or thinking that would not be usual for them. These voices are able to locate and emphasise aspects of life all individuals will relate to and are able provide solutions or aid the thoughts of the individual. John F. Kennedys Inaugural Address, Severn Cullis-Severn’s address to the plenary session, earth summit and The Sharpness of Death by Gwen Harwood all perpetuate this theme using techniques such as metaphor, anaphora and biblical allusion allowing individuals to reflect and change themselves through inspiration of others.

Immanuel Kant by Nathalie G. Catalogo Essay

German philosopher Immanuel Kant (1724-1804) is considered the most influential thinker of the Enlightenment era and one of the greatest Western philosophers of all times. His works, especially those on epistemology (theory of knowledge), aesthetics and ethics had a profound influence on later philosophers, including contemporary ones. Kant’s philosophy is often described as the golden middle between rationalism and empiricism. He didn’t accept either of both views but he gave credit to both. While rationalists argue that knowledge is a product of reason, empiricists claim that all knowledge comes from experience. Kant rejected yet adopted both, arguing that experience is purely subjective if not first processed by pure reason. Using reason while excluding experience would according to Kant produce theoretical illusion. Afterwards, Kant mainly focused on philosophical issues although he continued to write on science. Source: http://www. philosophers. co. uk/immanuel-kant. html Based on what I’ve read from the philosophy of Immanuel Kant which oftenly described as the golden middle between rationalism and empiricism, I strongly agree with the statements â€Å"experience is purely subjective if not first processed by pure reason† and â€Å"using reason while excluding experience would produce theoretical illusion. † Obviously, both statements complement each other. You will notice that experience needs reason for it not to be subjective and reason on the other hand, needs experience for it not to produce theoretical illusion. Empiricists claim that experience is equal to knowledge while rationalists argue that it is reason which is equal to knowledge. For example, for the empiricists, you have this experience that enrolling at University of Makati (UMak) needs patience and panctuality for there’s so many enrollees which causes a very long line so the process will take so much of your time. Through that experience, you gain knowledge so the next time you enroll, you already know how to handle things better. On the other hand, an example of rationalism is that, if someone teach you that one plus one is equal to two (1 + 1 = 2), you gain knowledge from the reason of mathematics. My assumption for the reason behind why Immanuel Kant adopted both of these is that it is closely related with each other and it needs each other to stand for its essence.

Management skills and entrepreneurship Assignment

Management skills and entrepreneurship - Assignment Example Accordingly, exploration of hindrances in growth opportunities became a critical subject for most entrepreneurial researches (Shane and Venkataraman, 2000). In this context Shelton (2005) has proposed the concept of scale barriers to shed some light on the issues related to growth of new venture. Primarily, there are three kinds of resources that are necessary for growth of a firm, namely, financial resources, competitive position and management and organisational capability. Start-up firms are generally small in size and practically inexperienced in an industry. Consequently, they experience resource deficiencies in various functional areas due to small size and lack of sufficient knowledge of the industry. Shelton (2005) defined all these deficiencies as scale barriers which have significant negative impact on growth of new firms. Therefore, growth in new ventures can be illustrated as a process of conquering various scale barriers that develop as a result of liabilities such as newness and smallness. Inexperienced position and small size of start-up firms can be related to resource deficiencies, whose dimensions are not only limited to ignorance but also include lack of key strategic and organisational resources (Shepherd, Douglas and Shanley, 2000). The authors proposed a model where they suggested that an entrepreneur generally influences growth of a new venture on the basis of limited yet critical resources while the unavailable resources are listed as additional scale barriers. The entrepreneur needs to overcome these barriers to establish a mature and successful organisation (Shepherd, Douglas and Shanley, 2000). Author such as Singer (1995) presented a triad of causal constructs of success and failure of a new venture in this regard. However, it was gathered that most scholars primarily focused on managerial and environmental aspects of the triad and ignored the structural

Geologic Hazards Project Research Paper Example | Topics and Well Written Essays - 2000 words

Geologic Hazards Project - Research Paper Example The gradual shifting of the pole is believed to have been the reason for destruction of entire human civilizations. As this reversal takes place, the earthquakes augment and earthquake storms take place in the world. Furthermore, three new volcanoes are born at many places in the Pacific Ocean. NASA has recently found out that there is a break in the magnetic field of the Earth. These changes keep on building and concurrent. (Syzygyastro) The constant changes that go inside the surface of the Earth cause this reversal. The core of the Earth moves around a little faster than the crust of the Earth which is slowed by tidal dragging of the moon. The disparity in the rotation between the two layers produces the magnetic field. When the core rotates, the lines of magnetic field act as what takes place on the Sun’s surface as equator and sun have different rotations from the pole. The disparity of rotation of both of these surfaces creates a stretch in the lines of magnetic field so they wrap round and round the Earth or the sun. What happens is that magnetic field lines the field and recreates itself. The discrepancy of the rotation of Sun happens at a faster rate than the Earth so the magnetic cycle on average takes around 22 years in the Sun. The Earth takes a very long time for its periodic cycle due to the interaction of the sun, planets, and the moon and slower winding. These reversals of the field can take mi llions of years to take place. At present, Earth’s field lines are constantly breaking down, making a complicated pattern of hundreds of magnetic zones similar to the ones on the Sun. This violation in the earth/s magnetic allows the solar winds to go to the atmosphere of Earth. The consequence of these modifications will be auroras all across the Earth even at the equator. The second alteration is the diffusion to the

Forecasting and Business Analysis Research Paper

Forecasting and Business Analysis - Research Paper Example In order to plan for the feasibility of the expansion, they needed to forecast their sales for the period. As a reference to their sales forecast, the Recreational Good Retail Turnover estimate for 2010 is required. The Recreational Good Retail Turnover (RGRT) dataset is gathered starting April 1982 until the end of March 2010. Figure 1 is the graphical summary of the data per quarter of each year. It can be observed that the trend of RGRT is increasing every year with seasonal peaks by the fourth quarter of each year. Furthermore, it can be observed that a linear trend is visible starting from the year 2000 up to the present, thus, these dataset shall be significant. Accompanying the RGRT is the Consumer Price Index (CPI) dataset is gathered from the start of September 1948 until the end of March 2010. The CPI is collected every quarter of the year. It can be observed that the CPI is also increasing through time. The method used for forecasting RGRT in this paper is autoregression (AR) model of univariate analysis. Using Ordinary Least Squares (OLS), the AR(pmax) of RGRT is estimated. Lower order AR models are then determined until such time that Yp-1 is statistically significant or the P-value for testing Yp-1 = 0 is less than the chosen significance level of 0.05. In order to corrIn order to correct for the seasonality of the RGRT dataset, a method of calculating seasonal index is applied, wherein, the average seasonal index for each period is used as a multiplier for the regression equation (Rowbotham, Galloway, & Azhashemi, 2007). Other factors that can affect the RGRT are also checked for their statistical significance. These factors are unemployment rate, consumer price index and average weekly earnings of the population. Evaluations of results The unemployment rate, consumer price index and average weekly earnings are significant to the calculation for determination of RGRT forecast values. Appendix A shows the summary of fitted values for each factor. All factors show an increasing trend through time. This means that the increasing trend of RGRT is justified and it is safe to assume that there are no significant downward slope for the year to come. The AR model for RGRT is determined to be in the first-order as estimated by OLS. The RGRT model reduces to Yt = + Yt-1 + et where the fitted values are = 760.6366 and = 16.8146. The P-value for the equation is less than the signifiance level of 0.05 such that the model is considered as statistically significant. Appendix A provides the summary of other values of the regression equation for RGRT. The plot for the estimated values of the trend component is reflected in Figure 3. In order to allocate for the seasonality of RGRT, the average index per quarter is calculated. The index is computed as the predicted y-values using the regression equation divided by the actual y-values from the dataset (Rowbotham, Gall

Interpreting Financial Results Essay Example | Topics and Well Written Essays - 750 words

Interpreting Financial Results - Essay Example l turnover reduced in the year 2011 and 2012 .The working capital ratio also reduced in the year 2013.This ratio indicates the extent to which, the working capital has been utilized in the creation of sales revenue. This is computed by dividing the total number of the days by the inventory turnover. ITT Co.s average inventory processing period increased in the year 2011 and 2012.However, the ratio slightly reduced in the year 2013. This is the sum of the inventory-processing period plus the average revenue collection period. Boeing Co.s operating cycle improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013. Average Payables Payment Period is the period the company takes to pay its creditors. The payment period is computed by dividing the total number of payables by payable turnover ratio. ITT Co.s average payables payment period reduced in the year 2011 and 2012 (Bruce, 2009).Additionally, the ratio also reduced in the year

Working with Federal Reserve's Publications Essay

Working with Federal Reserve's Publications - Essay Example In the financial market, the demand for credit in the different districts has shown a mixed trend compared to the previous Beige report. The Federal Reserve has also reported that the pressure of prices in the economy has eased from that recorded before. To maintain price stability and stabilize the economy, the Federal Reserve uses the Monetary Tools of Open Market Operations, Discount Rate, Reserve Requirements, Interest on Required Reserve Balances and Excess Balances, Term-Asset-Backed Securities Loan Facility and Term Deposit Facility. Ultimately, the paper enumerates an outlook for the economy in the coming twelve to eighteen months. The Federal Reserve System is U.S.A.’s central banking system. It is also known as The Federal Reserve and sometimes informally referred to as the Fed. The enactment of the Federal Reserve Act established the Federal Reserve System in 1913. The Federal Reserve conducts the nation’s monetary policy, supervises and regulates the banking institutions, maintains the stability of the financial system and provides financial services to the Government of U.S.A, the country’s depository institutions and foreign official institutions. The Federal Reserve offers to the general public a variety of publications including the Federal Reserve Board testimonies, press releases, monetary policy reports, the Beige Book etc. which offer a detailed analysis of the current economic activity, the financial markets and the monetary policy tools used to maintain price stability and foster economic activity. Federal Reserve’s assessment of the current economic activity and financial markets According to the Federal Reserve Beige Book of July 2011, economic activity in the twelve districts of the U.S.A continued to grow. However, in many districts the rate of growth has been moderate than that reported before. Overall assessment of consumer spending indicated an increase and a majority of the districts reported a humble in crease in the non-auto retail sales. Auto sale slowed down compared to the previous Beige Book report and the disruptions in the Japanese supply chain caused the auto inventories to remain lean. The retail margins continued to be squeezed under pressure in prices from ‘food, energy, cotton, and other supplier inputs’. The Federal Reserve presumes that a decrease in the gasoline prices could have provided an impetus to shopping trips and other additional spending. The summer flavor of tourism had initiated better performance than last year in most of the areas. In most of the districts, activity in the non-financial service sectors reported a growth overall. Manufacturing activity also increased overall in the districts. Firms generally retained their optimistic manufacturing outlook, but were cautious regarding their capital spending strategy. Activity in the residential real estate market remained weak although construction as well as movement in the residential rental sphere improved from before. The agricultural sector in seven districts (which reported on the sector) was unfavorably affected by both drought and extreme flood conditions. However, the energy and mining sectors in the districts which reported on these sectors recorded a robust growth for majority of energy-related products. The production of coal was sluggish. The labor market conditions in the U.S economy remained moderate and most of the districts reported modest increases in the hiring of labor. (The Federal Reserve, July 2011, p. 4, 5) In the financial market, the Federal Reserve reported a mixed loan demand from the districts in comparison to the previous report. Total increase in loan demand was recorded in the New York, Chicago and Richmond districts although they originated from different

Consumer credit Assignment Example | Topics and Well Written Essays - 250 words

Consumer credit - Assignment Example en busy at work, he has not had time to carefully review his monthly statements, but is spending the weekend catching up on paying bills and organizing his desk. He is particularly interested in how much he still owes the credit card company. He reviews the statement and discovers there is a page missing – the one with the unpaid balance. He can see that his beginning balance for March (March 1 through March 31) was $800 and that he paid $280 on March 12, charged purchases of $150 on March 5, $100 on March 20, and $50 on March 30. Ling remembers that the Annual Percentage Rate (APR) on the credit card is 16% of the unpaid balance and interest is charged using the average daily balance method, including current purchases. d. Answer: Average daily balance is calculated by including the outstanding balance, new purchases and deducting payments and credits on each day in the billing cycle, we need to divide by number of days in the billing cycle. From the author’s point of view, the five factors are named as â€Å"Satisfying needs in case of insufficient income†, â€Å"Convenience in case of cashless case†, â€Å"Socialization and modernization†, â€Å"Easiness and safety in comparison with carrying cash† and â€Å"Shopping via telephone and inter-net†. (Okan Veli à ¹afakli, 2007). Credit cards can be a convenient means of payment, a useful tool for learning financial responsibility, a resource in case of emergencies, a means to establishing a good credit history and a way to gain greater access to credit in the future. If credit cards are mismanaged or misused, however, the disadvantages can result in severe financial consequences. (Louisiana State University, 2003). Ling has used the credit card wisely. He made the payment on time and as it is a revolving credit, it is good to charge the card and simultaneously make payments. This can have good impact on the credit history. It is a good practice to keep the balance less than the credit limit and this can

Discussion Question 2 Week 9 Global Intellectual Property Rights Assignment

Discussion Question 2 Week 9 Global Intellectual Property Rights - Assignment Example only plausible and viable means to preserve ownership and motivate talents to continue in discovery, creation, innovation, and invention, as required. There were reported cases against pharmaceutical companies which allegedly manufacture drugs in generic form that are more accessible and affordable. Likewise, there were disclosed cases against stealing copyrighted music and copying books online (Evans, 2002). One copyright case which was Perfect 10 v. Google which reportedly â€Å"claims that Google’s Image Search service violates copyright law by indexing Perfect 10 photos posted on unauthorized websites, then making and delivering thumbnail images of those photos in its search results† (American Library Association, 2013, p. 1). As noted, Google was asked by the lower court to remove links to websites containing photos from Perfect 10; but the Court of Appeals had apparently favored more of Google’s arguments (American Library Association, 2013). Likewise, one patent case was about software patents: the CLS Bank v. Alice case, where it allegedly involves â€Å"some software concerning doing a "shadow transaction" to see if there are really enough funds to complete a transaction, before completing the actual transaction† (Masnick, 2013, p. 1). The courts apparently made the correct decisions given the presented evidences and in support for weighing which party has comprehensively provided justification for their respective arguments. 2. Determine the key legal and ethical issues surrounding the ability of pharmaceutical companies to patent and exploit plant-derived substances, and suggest at least one way in which a company might provide compensation besides direct / individual payments. Some of the key legal and ethical issues surrounding the ability of pharmaceutical companies to patent and exploit plant-derived substances include identifying and restricting boundaries for exploiting plant species; using animals or even human beings to test efficacy of

Entrepreneural Research Paper Example | Topics and Well Written Essays - 500 words

Entrepreneural - Research Paper Example ea explains to the management the effect that the idea will have on the organization and how to implement the idea in the existing procedures (Christiansen, 2000). The organization has a culture that upholds change that arises. Management has ensured that it has induced a positive culture that encourages employees to welcome any change that will have a positive impact towards the organization’s performance. On the other hand, leaders are the implementers of the change. They ensure that they lead the rest of the organization towards changes the organization. The organization has also ensured that it provides a serene environment for the innovators. This is through providing psychological and financial support to those who have an idea that may change the organizational performance. Employees also give human capital inform of giving ideas towards refining the idea for it to become more effective for the whole organization. This has played a major role in encouraging potential innovators to come up with diverse ideas that has seen an increased competitiveness of the organization (Christiansen, 2000). For the management to increase creativity and innovation in the organization, they must create a good relationship with their subordinates. Many of the innovative ideas come from the low ranked employees. As a result, leaders should adopt open office policy to encourage employees t consult them when need arises concerning the idea (Christiansen, 2000). Second, the organization leaders should set aside funds that will help those with ideas to purchase all the necessary materials required to spearhead the idea(s). Funds have been the greatest setback towards innovation therefore; availability of the funds will encourage employees to come up with ideas that will improve the organizations status (Christiansen, 2000). The management can encourage innovation through giving out incentives. In case an employee comes up with an innovative idea and it brings change in the

Patient Abuse in Nursing Facilities Essay Example for Free

Patient Abuse in Nursing Facilities Essay Patient abuse in nursing facilities is becoming more prominent. Abuse is not only physical, but emotional, sexual, neglect and financial exploitations. The elderly are the most vulnerable and least likely to complain, so unfortunately they are the targets. Most families research in depth about the nursing facility that they will place their loved one, in hopes that abuse doesn’t occur. Although the research is done, families should still look for signs and symptoms of abuse since they are leaving their loved one in stranger’s hands. According to (Center), A recent investigation concluded that employment checks do not always provide adequate protection against elder mistreatment. For instance, the Centers for Medicare and Medicaid Services prohibit nursing homes from hiring persons with a prior history of committing abuse in a nursing home setting, but those who have been convicted of other forms of abuse like child abuse may still be hired. Some states require a criminal background check, while others do not. Even so, these checks usually do not uncover convictions in another state. Furthermore, in some states, non-caregiving staff such as maintenance workers and others without a direct patient care role do not undergo criminal checks even though they may have direct access to patients and patient areas. Understaffing is a common cause of nursing home abuse. When staff members become overworked, they may begin to lose their patience with the nursing home residents. In addition, understaffing leaves many workers unsupervised or untrained, which can lead to nursing home abuse. Still, physical abuse in nursing homes is illegal, and the owners of the assisted living facility can be held liable if a resident is subject to nursing home abuse or neglect. Sometimes, it is difficult to identify nursing home residents who have been physically abused. Very often, members of the nursing home staff will state that the residents injuries were the result of a fall rather than the actual causenursing home abuse. In addition, the staff member may bully the resident into agreeing with their story. Because detecting signs of physical nursing home abuse can be difficult, loved ones should pay careful attention when visiting the nursing home. Be aware of the common signs of physical nursing home abuse, including: unexplained bruising, cuts, sprains, fractures and broken bones and open wounds. In addition to physical signs, nursing home patients who have been physically abused may also show changes in their behavior. If the resident appears withdrawn, fearful, nervous or depressed, they may be suffering from physical nursing home abuse. The most common type of physical abuse is battery, which can include forcing the resident into restraints for no valid reason. Other forms of physical abuse in nursing homes include: overmedication, use of excessive restraints, chemical or physical, for no reason, burning, pushing, shoving, force feeding, hitting the resident with the hand or an object, pulling the residents hair and mishandling the resident when transporting them from beds, bathrooms etc ( (Morgan). According to (Emotional Abuse in Nursing Homes), Emotional abuse in nursing homes is not as overt as other forms of abuse. Regardless, the effects that emotional abuse in nursing homes can result in are damaging to the happiness, health, and other areas of that resident’s life. Not knowing what signs to look for can allow emotional abuse in nursing homes to continue. Often times, a resident thinks that telling someone about abuse suffered, including emotional abuse in nursing homes, will make them a burden to the family or they feel afraid of enduring an increased amount of abuse. If emotional abuse in nursing homes is occurring the family members should immediately notify the facility. The facility should amend the situation at once but if the emotional abuse in nursing homes persists, the family should take further action. The chances of the emotional abuse in nursing homes occurring to just one resident are very slim so other residents are probably suffering as well. Emotional abuse in nursing homes can include humiliation, harassment, threat of punishment, deprivation, and intimidation, as well as other behaviors. One of the most pervasive forms of nursing home abuse today is that of neglect. Nursing home neglect is too frequently overlooked and results all too often in a decline in general health and eventually the death of those elderly people entrusted to nursing home care facilities. The problem can occur anywhere and can take many shapes. What makes this particularly sinister is that it can be overlooked or ignored for so long. Even upon repeated visits to a nursing home, the signs of nursing home neglect can remain hidden. In order to understand the scope of the problem, it is important to know the different types of nursing home neglect and nursing home abuse. The most obvious, most egregious, and the first that comes to mind for many people is physical neglect. Unfortunately common in nursing homes today, neglect takes many forms, however, all of which are disturbing in their own right. Any of the following forms of neglect warrant contacting a nursing home abuse lawyer to bring justice to the victim of neglect, as well as make conditions safer for other residents (Center). According to (Financial Exploitation of Nursing Home Residents), Financial exploitation of the elderly occurs when an individual takes or uses the money or property of a senior for any wrongful use, or with the intent to defraud the elder. Senior citizens who live in nursing homes or other long-term care facilities can be victims of financial abuse by their direct caregivers or by the administrators of the nursing homes. Financial exploitation is defined as the wrongful use of an individual’s finances or property for another’s advantage. This can occur when residents personal or financial resources are taken from them without their consent, either because the residents were incapacitated and unable to give consent or because they were subjected to threats, intimidation, manipulation, and deception. Examples of financial exploitation include cashing an elderly person’s checks without authorization, forging a senior’s signature, stealing an older person’s money or possessions, or deceiving an older person into signing any contract, will, or other document. According to (Nursing Home Abuse), It is critical for every resident to understand their nursing home patient rights in order to successfully acclimate to the very different living environment of a skilled nursing facility. Patients and their families should become well versed in the policies and procedures inherent to life in the facility and must know exactly what they can and should expect when it comes to care and safety. In the US, the federal government and each state government have written legislation which guarantees each nursing home resident specific and general rights while under professional care. Most foreign counties have similar laws enacted to protect elders from abuse and neglect in nursing facilities, as well. When your loved one is placed in a nursing home, it is required that they are given a written bill of patient’s rights. It is recommended that the family and loved one go over this bill of rights in detail so they are familiar with the rights of their loved one. Most often, nursing home patients cannot defend themselves, due to several different reasons: physical health, mental health, social isolation or dependency issues. Unless someone comes forward for these patients, they won’t get help and no one is penalized for their actions. Many do not know how to report nursing home abuse, so they remain silent and struggle with their disturbing knowledge of the abuse or neglect. Once the repost is filed, the organization that is responsible, will investigate thoroughly and will hold the person/persons responsible for their actions. If you are a family member and suspect any minor abuse or neglect, it is always wise to report the activity to the nursing home administrator directly. Tell them that you have evidence of the abuse and that you intend to take this matter as far as it will go. Do not back down. If the infraction is minor and resulted in no real damage, then you may consider allowing them to discipline the staff member internally. Just be sure to watch out for any retribution which may come back to your loved one if the staff member is not fired. If the infraction is more serious or you do not feel completely confident that the matter will be settled in the best interest of your loved one, then take the concern one step further. Immediately call police and report the incident. Additionally, contact adult protective services, your ombudsman, your local nursing home regulatory agency and Medicare, if applicable. You might also consider consulting with a nursing home abuse attorney and filing a civil lawsuit (Nursing Home Abuse). Although abuse in nursing facilities is becoming more prominent, there are several things that family members can do to protect their loved one from being a victim from this horrible crime. The elderly are very vulnerable, but they do not deserve the abuse that the under paid, aggravated staff member may give them. If someone suspects abuse in a nursing facility, they should report it immediately. If not, this makes you just as guilty.

Impacts on Agency Cost Theory

Impacts on Agency Cost Theory The main purpose of this research is to investigate how the determinants of the capital structure (leverage) and the dividend payout policy impact the agency cost theory. Literature review part picked up the relevant material related to agency theory, leverage, and dividends payout policy. The literature review section goes through the agency cost literature, and explores the financial policies; the capital structure (leverage), and the dividend payout policy and that these policies would influence the agency cost theory. 2.1 Agency theory Literature The notion of the agency theory is widely used in economics, finance, marketing, legal, and social sciences; Jensen and Meckling (1976) initiated and developed it. Capital structure (leverage) for the firms is determined by agency costs, i.e., costs related to conflict of interests between various groups including managers, which have claims on the firm’s resources (Harris and Raviv, 1991). Jensen and Meckling (1976) defined the agency relationship as â€Å"a contract under which one or more persons (the principal) engage another person (the agent), to perform some service on their behalf which involves delegating some decision making authority to the agent† pp.308. Assuming that both parties utility maximizes, the agents are not possible to act in the best interest of the principal. Furthermore, Jensen and Meckling (1976) contended that the principal can limit divergences from his interest by establishing appropriate incentives for the agent, and by incurring monitoring costs (pecuniary and non pecuniary), which are designed to limit the aberrant activities of the agent. Jensen and Meckling (1976) argued that the agency costs are unavoidable, since the agency costs are borne entirely by the owner. Jensen and Meckling (1976) contended that the owner is motivated to see these costs minimized. Authors who initiated and developed the agency theory have argued that if the owner manages a wholly owned firm, then he can make operating decisions that maximise his utility. The agency costs are generated if the owner manager sells equity claims on the firms, which are identical to his.  It also generated by the divergence between his interest and those of the outside shareholders, since he then bears only a fraction of the costs of any non-pecuniary benefits he takes out maximizing his own utility (Jensen and Meckling, 1976). Jensen and Meckling (1976) suggested two types of conflicts in the firm; First of all, the conflict between shareholders and managers arises because managers hold less than a hundred percent of the residual claim. Therefore, they do not capture the entire gain from their profit enhancement activities, but they do bear the entire cost of these activities. For example, managers can invest less effort in managing firm resources and may be able to transfer firm resources to their own, personal benefit, i.e., by consuming â€Å"perquisites† such as a fringe benefits. The manager bears the entire cost of refraining from these activities but captures only a fraction of the gain. As a result, managers over indulge in these interests relative to the level that would maximize the firm value. This inefficiency reduced the large fraction of the equity owned by the manager. Holding constant the manager’s absolute investment in the firm, increases in the fraction of the firm financed by debt increases the manager’s share of the equity and mitigates the loss from conflict between the managers and shareholders. Furthermore, as pointed out by Jensen (1986), since debt commits the firm to pay out cash, it reduces the amount of free cash flow available to managers to engage in these types of interests.  As a result, this reduction of the conflict between managers and shareholders will constitute the benefit of debt financing. Second, they also suggested that the conflict between debt holders and shareholders arises because the debt contract, gives shareholders an incentive to invest sub optimally. Especially when the debt contract provides that, if an investment yields large returns, well above the face value of the debt, shareholders capture most of the gain. However, if the investment fails, debt holders bear the consequences. Therefore, shareholders may benefit from investing in very risky projects, even if they are under valued; such investments result in an adverse in the value of debt. Lasfer (1995) argued that debt exacerbates the conflict between debt holders and shareholders. Shareholders will benefit from investments in risky projects at the expense of debt holders.  If the investment yields higher return than the face value of debt, shareholders capture most of the gain, however, if the investment fails, debt holders lose, given that. Therefore, shareholders protected by the limited liability. On the other hand, if the benefits captured by debt holders reduce the returns to shareholders, then an incentive to reject positive net present projects has created. Thus, the debt contract gives shareholders incentives to invest sub optimally. In addition, Myers (1977) argued that the firms with many growth opportunities should not be financed by debt, to reduce the negative net value projects.   Furthermore, some of arguments have been debated that the magnitude of the agency costs varies among firms. It will depend on the tastes of managers, the ease with which they can exercise their own preferences as opposed to value maximization in decision making, and the costs of monitoring and bonding activities. Therefore, the agency costs depend upon the cost of measuring the manager’s performance and evaluating it (Jensen and Meckling, 1976). (Jensen, 1986) either points out that when firms make their financing decision, they evaluate the advantages that may arise from the resolution of the conflicts between managers, shareholders and from long run tax shields.   In addition, Lasfer (1995) argues that debt finance creates a motivation for managers to work harder and make better investment decisions. On the other hand, debt works as a disciplining tool, because default allows creditors the option to force the firm into liquidation. Debt also generates information that can be used by investors to evaluate major operating decisions including liquidation (Harris and Raviv, 1990). Jensen (1986) debated that when using debt without retention of the proceeds of the issue, bonds the managers to meet their promise to pay future cash flows to the debt holders. Thus, debt can be an effective substitute for dividends. By issuing debt in exchange for stock, managers are bonding their promise to pay out future cash flows in a way that cannot be accomplished by simple dividend increases. Consequently, managers give recipients of the debt the right to take the firm to the bankruptcy court if they do not maintain their commitment to make the interest and principle payments. Thus, debt reduces the agency costs of free cash flow by reducing the cash flow available for spending at the discretion of managers. Jensen (1986) claimed that these control effects of debt are a potential determinant of capital structure. In practice, it is possible to reduce the owner manager non pecuniary benefits; by using these instruments external auditing, formal control systems, budget restrictions, and the establishment of incentive compensation systems serve to identify the manager’s interests more closely with those of the outside shareholders (Jensen and Meckling, 1976). Jensen (1986) suggested that leverage and dividend may act as a substitute mechanism to reduce the agency costs. Agency cost models predict that dividend payments can reduce the problems related to information asymmetry. Dividend payments might be consider also as a mechanism to reduce cash flow under management control, and help to mitigate the agency problems (Rozeff, 1982, and Easterbrook, 1984). Therefore, paying dividends may have a positive impact on the firms value. â€Å"Agency theory posits that the dividend mechanism provides an incentive for managers to reduce the costs related to the principal agent relationship, one way to reduce agency costs is to increase dividends† Baker and Powell (1999). They also claim that firm use the dividends use as a tool to monitor the management performance. Moreover, Easterbrook (1984) and Jensen (1986) argue that agency costs exist in firms because managers may not always want to maximize shareholder’s wealth due to the separation of ownership and control. Jensen (1986) addresses the free cash flow theory, in terms of this theory the conflict of interest between managers and stockholders is rooted in the presence of informational and self interest behavior. He defines the free cash flow as â€Å"cash flow in excess of that required to fund all projects that have positive net present value when discounted at the relevant cost of capital† (Jensen,1986). Within the context of the free cash flow hypothesis, firms prefer to increase their dividends and distribute the excess free cash flow in order to reduce agency costs. Consequently, markets react positively to this type of information. This theory is attractive because it is consistent with the evidence about investment and financing decisions (Jensen, 1986, Frankfurter and Wood, 2002). 2.2 Leverage Literature This section reviews the determinants of capital structure by different relevant literatures. Titman and Wessels (1988) study is considered to be one of the leading studies in the developed markets. They tried to extend the empirical work in capital structure theory by examining a much broader set of capital structure theories, and to analyze measures of short term, long term, and convertible debt. The data covers the US industrial companies from 1974 to 1982, and they used a factor analytic approach for estimating the impact of unobservable attributes on the choice of corporate debt ratios. As a result, the study confirms these factors, collateral values of assets, non-debt tax shields, growth, and uniqueness of the business, industry classification, firm size, and firm profitability. They also found that there is a negative relationship between debt levels and the uniqueness of the business. In addition, short term debt ratios have a negative relationship to firm size. However, they do not provide support for the effect on debt ratios arising from non debt tax shields, volatility, collateral value of assets, and growth. In Jordan, Al-Khouri and Hmedat (1992) aimed to find the effect of the earnings variability on capital structure of Jordanian corporations from the period from 1980 to 1988. They included 65 firms. The study used a multivariate regression approach with financial leverage as the dependent variable measured in three ways; first, long term debt over total assets, secondly, short term debt over total assets, and finally, short term debt plus long term debt over total assets. The standard deviation of the earnings variability and the size of the firm measured as independent variables. They concluded that the firm size is considered as a significant factor in determining the capital structure of the firm, and insignificant relationship between the earning variability and financial leverage of the firm. Furthermore, they suggest that the type of industry is not considered as a significant factor in determining the capital structure of the firm. Rajan and Zingales (1995) provided international evidence about the determinants of capital structure. They examined the capital structure in other countries related to factors similar to those that influence United States firms. The database contains 2583 companies in the G7 countries. They used regression analysis with the firm’s leverage (total debt divided by total debt plus total equity) as the dependent variable. Tangible assets, market to book ratio, firm size, and firm profitability used as independent variables. They found that in market bases firms with a lot of fixed assets are not highly levered, however, they supported that a positive relationship exists between tangible assets, and firms size, and capital structure (leverage). On the contrary, they confirmed that there is a negative relationship between leverage and the market to book ratio, and profitability. From the capital structure literature, Ozkan (2001) also investigated that the determinants of the target capital structure of firms and the role of the adjustment process in the UK using a sample of 390 firms. The multiple regression approach (panel data) was used to measure the debts by total debt to total assets, on the one hand. He also used in his model, non debt tax shield, firm size, liquidity, firm profitability, and firm growth as an independent variables. He confirmed that the profit, liquidity, non debt tax shield, and growth opportunities have a negative relationship to capital structure (leverage). Finally, he supported that there is a positive effect arising from size of firms on leverage. The study provided evidence that the UK firms have long term target leverage ratios and that they adjust quickly to their target ratios. The study by Booth et al. (2001) is considered as a one of the leading studies in the developing countries. It aimed to assess whether capital structure theory is applicable across developing countries with different institutional structures. The data include balance sheets and income statements for the largest companies in each selected country from the year 1980 to 1990. It included 10 developing countries: India, Pakistan, Thailand, Malaysia, Zimbabwe, Mexico, Brazil, Turkey, Jordan, and Korea. The study used multivariate regression analysis with dependent variables; total debt ratio, long term book debt ratio, and long term market to debt ratio. The independent variables are; average tax rate, tangibility, business risk, firm size, firm profitability, and market to book ratio. Booth et al. found that the more profitable the firm the lower the debt ratio, regardless how the debt ratio is defined. In addition, the higher the tangible assets mix, the higher is the long term debt ratio but the smaller is the total debt ratio. Finally, it concluded that debt ratios in developing countries seem to be affected in the same way by the same set of variables that are significant in developed countries. Voulgaris et al. (2004) investigated the determinants of capital structure for Greek manufacturing firms. The study used panel data of two random samples one for small and medium sized enterprises (SMEs) including 143 firms and another for large sized enterprises (LSEs) including 75 firms for the period from 1988 to 1996. It used a leverage model as a dependent variable (short run debt ratio, long run debt ratio, and total debt ratio). On the other hand, It used firm size, asset structure, profitability, growth rate, stock level, and receivables as independent variables. The study suggested that there are similarities and differences in the determinants of capital structure among the two samples. The similarities include that the firm size and growth opportunities positively related to leverage. While, they confirm that the profitability has a negative relationship to leverage. Moreover, they pointed out the differences that the inventory period, and account receivables collection period have been found as determinants of debt in SMEs but not in LSEs. Liquidity doest not affect LSEs leverage, but it affects the SMEs. Finally, they also suggested that there is a positive relationship between profit margins and short term debt ratio only for SMEs. Voulgaris et al. (2004) have debated this arguments as; ‘‘the attitude of banks toward small sized firms should be changed so they provide easier access to long-term debt financing’’. In addition, â€Å"enactment of rules that will allow transparency of operations in the Greek stock market and a healthier development of the newly established capital market for SMEs will assist Greek firms into achieving a stronger capital structure’’. 2.3 Dividends payout ratio literature Dividend payout ratios vary between firms and the dividend payout policy will impact the agency cost theory. Rozeff (1982) investigated in his study that the dividends policy will be rationalize by appealing the transaction cost and agency cost associated with external finance. Moreover, Rozeff (1982) had found evidences supporting how the agency costs influence the dividends payout ratio. He found that the firms have distributed lower dividend payout ratios when they have a higher revenue growth, because this growth leads to higher investment expenditures.  This evidence supports the view of the investment policy affect on the dividend policy; the reason for that influences is that would the external finance be costly. Conversely, he found that the firms have distributed higher dividends payouts when insiders hold a lower portion of the equity and (or) a greater numbers of shareholders own the outside equity. Rozeff (1982) pointed out that this evidence supports that the dividend payments are part of the firm’s optimum monitoring and that bonding package reduces the agency costs. Moreover, if the agency cost declines when the dividend payout does and if the transaction cost of external finance increases when the dividend payout is increased as well, then minimization of these costs will lead to a unique optimum for a given firm. In addition, Hansen, Kumar, and Shome [HKS], (1994) pointed out the relevance of the monitoring theory for explaining the dividends policy of regulated electric utilities. From an agency cost perspective, they emphasized their ideas that the dividends promote monitoring of what they call the shareholders regulator conflict. Therefore, it is a monitoring role of dividends. On the contrary, Easterbrook’s (1984) has noted that the dividends monitoring of the shareholders managers conflict. They also have observed that the utilities firms have a discipline of monitoring mechanism for controlling agency cost, depending on the relative cost effectiveness of those costs (Crutchly and Hensen, 1989). The regulator process will impact the conflict between the shareholders and mangers, by mitigate the managers’ power to appropriate shareholders’ wealth and consume perquisites (Hansen et al. 1994). On the other hand, they argued this issue by the cost-plus concept, regulators may set into motion of managerial incentive structure that potentially conflicts with shareholders interests, this concept solve the shareholders-regulators concept since the sources of the conflict lies in differences in the perceptions of what constitutes fair cost plus. Therefore, the regulation can control some of the agency cost while exacerbating others. In their study, they conduct also that the managers and shareholders of unregulated firms have a several mechanisms whether, internal or external, for controlling agency cost. In addition, they observed that the dividend policy to reduce the agency theory is not limited, depending on their findings they suggested that the cost of dividend payout policy might be below the costs paid by other types of firm. In fact the utilities company maintain high debt ratio that would maintain as well as equity agency costs. Aivazian et al. (2003b) compare the dividend policy behaviour of eight emerging markets with dividend policies in the US firms in the period from 1980 to 1990. The sample included firms from; Korea, Malaysia, Zimbabwe, India, Thailand, Turkey, Pakistan, and Jordan. They found that it is difficult to predict dividend changes for such emerging markets. This is because the quality of firms with reputations for cutting dividends is somehow similar to those who increase their dividends, than for the US control sample. In addition, current dividends are less sensitive to past dividends than for the US sample of firms. They also found that the Lintner model[1] does not work well for the sample of emerging markets. These results indicate that the institutional frameworks in these emerging markets make dividend policy a weak technique for signaling future earnings and reducing agency costs than for the US sample of firms. Furthermore, Omran and Pointon (2004) investigated the role of dividend policy in determining share prices, the determinants of payout ratios, and the factors that affect the stability of dividends for a sample of 94 Egyptian firms. They found that retentions are more important than dividends in firms with actively traded shares, but that accounting book value is more important than dividends and earnings for non-actively traded firms. However, when they combined both the actively traded and non-traded firms, they found that dividends are more important than earnings. In the determinants of payout ratios, they found that there is a negative relationship between the leverage ratio and market to book ratio, tangibility, and firm size on the one hand, to the payout ratios in actively traded firms. On the contrary, they also found that there is a positive relationship between the business risk, market to book and firm size (measured by total assets) to payout ratios in non-actively traded firms. Furthermore, for the whole sample, leverage has a positive relationship with payout ratios, while firm size (measured by market capitalization) is negatively related to payout ratios. Finally, the stepwise logistic regression analysis shows that decreasing dividends is associated with lack of liquidity and overall profitability. In addition, increasing dividends is associated with higher overall profitability. 2.4 Summary In this chapter the relevant literatures addressing the reviews of the agency cost theory related to the financial policies. It also gives a theoretical background on how the conflicts of interests arise between the agents (managers) and the principal (shareholders). The second and third sections present the determinants of leverage and dividend payout policy. The following chapter will go through the description of data, and data methodology was employed for this dissertation. 3. Methodology, Research Design and Data Description The aim of the current study is to investigate firstly, the empirical evidence of the determinants of leverage and dividend policy under the agency theory concept for the period 2002-2007. The majority of the previous studies in the field of capital structure have made in the context of developed countries such as USA and UK. It is important to investigate the main determinants of leverage and dividend policy in developing countries where, capital markets, are less developed, less competitive and suffering from the lack of compatible regulations and sufficient supervision This chapter will explain the research methodology of this study. This chapter also identifies the sample of the study. Moreover, it presents an illustration of the econometric techniques that have been employed. In addition, this chapter gives a brief explanation of the specification tests used in the study to identify which technique is the best for the data set. This chapter structured as follows; Section (3.1) presents data description.  Section (3.2) presents the sample of the study. Section (3.3) discusses the econometric techniques employed in the study. Finally, Section (3.4) provides a brief summary. 3.1 Data Description The data used in the study are secondary data for companies listed at Amman Stock Exchange (ASE) for the period of 2002-2007. The data was extracted from the firm’s annual reports, and from Amman Stock Exchange’s publications (The Yearly Companies Guide, and Amman Stock Exchange Monthly Statistical Bulletins). Data is readily available in the form of CD and on the website of the Amman Stock Exchange. The reason for the study period selection was to minimize the missing observations for the sample companies. Moreover, a different reporting system has been used since 2000. The application of the new reporting system was the result of the transparency act which was launched in 1999, and forced all companies listed in Amman Stock Exchange to disclose their financial information and publish their annual reports according to the International Financial Reporting Standards. In other words, this data series for the period from 2002-2007 was chosen in terms of consistency and comparability purposes. 3.2 Sample of the study The sample of the study consists of the Jordanian Manufacturing companies listed on the Amman Stock Exchange for the period of 2002-2007. The total number of the companies listed in ASE at the end of year 2007 was 215. Officially, these companies are divided into four main economic sectors; Banks sector, Insurance sector, Services sector and finally Industrial sector. Moreover, this study is concerned only with Jordanian manufacturing companies that their stocks are traded in the organized market. It is important to note that the capital structure of financial firms has special characteristic when compared to the capital structure of non financial firms, they also have special tax treatment (Lester, 1995). On the other hand, the financial firms have a higher leverage rate, which may tend to make the analysis results biased. Moreover, financial firms their leverage is affected by investor insurance schemes (Rajan and Zingals, 1995). For these reasons, the potential sample of the study consists of non financial (Manufacturing) companies that are still listed in Amman Stock Exchange. The total number of industrial companies listed in ASE at the end of year 2007 was 88 companies, which are 40.93% of the total number of the companies listed in that market. The study conducts the following criteria in selecting the sample upon the Jordanian manufacturing companies by excluding all the firms that was incorporated after year 2002, and all the firms that have merged or acquired during this period, further, the firms have liquidated or delisted by the Amman Stock Exchange, and finally, the study have also excluded the firms that have information missing for that period. The application for those criteria has resulted in 52 samples of manufacturing companies. The data for the variables that are included in the study models is tested using three different econometric techniques which will be discuss briefly in the next sections. 3.3 Econometrics techniques Hairs et al. (1998) argued that the application of econometrics technique depends on the nature of data employed in the study, and to what extent it would be realised to the research objectives. In order to find a best and adequate data model, the current study employs pooled data technique and panel data analysis which is usually estimated by either fixed effect technique or random effects technique.  The following sections provide a brief discussion on the econometrics techniques that the current study uses to estimate the empirical models. 3.3.1 Pooled Ordinary Least Square (OLS) technique All the models used in the study have been tested by the pooled data analysis technique. The pooled data is the data that contains pooling of time series and cross-sectional observations (combination of time series and cross-section data) (Gujarati, 2003). The pooled data analysis has many advantages over the pure time series or pure cross sectional data. It generates more informative data, more variability, less collinearity among variables, more degrees of freedom, and more efficiency (Gujarati, 2003). The underlying assumption behind the pooled analysis is that, the intercept value and the coefficients of all the explanatory variables are the same for all the firms, as well as they are constant over time (no specific time or individual aspects). It also assumes that the error term captures the differences between the firms (across-sectional units) over the time. However, (Gujarati, 2003) has pointed out that these assumptions are highly restrictive. He argues that although of it is simplicity and advantages, the pooled regression may distort the true picture of the relationship between the dependent and independent variables across the firms. Pooled model will be simply estimated by Ordinary Least Square (OLS). However, OLS will be appropriate if no individual (firm) or time specific effects exist. If they exist, the unobserved effects of unobserved individual and time specific factors on dependent variable can be accommodated by using one of the panel data techniques.   According to (Gujarati, 2003) panel data is a special form of pooled data in which the same cross-sectional unit is surveyed over time. It helps researchers to substantially minimize the problems that arise when there is an omitted variables problems such as time and individual-specific variables and to provide robust parameter estimates than time series and (or) cross sectional data. All the empirical models that have been tested by using pooled data analysis and tested again on the basis of panel data analysis techniques (Fixed Effects and Random Effects).   3.3.2 The fixed effects model (FEM) Fixed effects technique allows control for unobserved heterogeneity which describes individual specific effects not captured by observed variables. According to Gujarati (2003) the fixed effect model takes into account the specific effect of each firm â€Å"the individuality† by allowing the intercept vary across individuals (firms), but each individual’s intercept does not vary over time. However, it still assumes that the slope coefficients are constant across individuals or over time. Two methods used to control for the unobserved fixed effects within the fixed effects model; the first differences and Least Square Dummy variables (LSDV) methods.  For the purposes of the current study, (LSDV) was used where; two sets of dummy variables (industry, and year dummy variables). The additional dummy variables control for variables that are constant across firms but change over time. Therefore, the combine time and individual (firm) fixed effects model eliminates the omitted variables bias arising both from unobserved factors that are constant over time and unobserved factors that are constant across firms. However, fixed effects model consumes the degrees of freedom, if estimated by the Least Square Dummy Variable (LSDV) method and, too many dummy variables are introduced (Gujarati, 2003). Furthermore, with too many variables used as regressors in the models, there is the possibility of multicollinearity. It is worth noting that OLS technique used in estimating fixed effects model. 3.3.3 The Random Effects Model (REM) By contrast, fixed effects model, the unobserved effects in random effects model is captured by the error term (ÃŽ µit) consisting of an individual specific one (ui) and an overall component (vit) which is the combined time series and cross-section error. Moreover, it treats the intercept coefficient as a random variable with a mean value (ÃŽ ±0) of all cross-sectional (firms) intercepts and the error component represents the random deviation of individual intercept from this mean value (Gujarati, 2003). Consequently, the individual differences in the intercept values of each firm are reflected in the error term (ui). On the other hand, the Generalized Least Square (GLS) used in estimating random affects model.  This is because the GLS technique takes into account the different correlation structure of the error term in the Random Effect Model (REM) (Gujarati, 2003). 3.3.4 Statistical specification tests The study uses three specification tests to identify which empirical method is the best. These tests are used for testing the fixed effect model versus the pooled model (F-statistics), the random effect model versus pooled model (Lagrange Multiplier test) (LM), and the fixed effect model versus the random effect model (Hausman test). The following sub-sections offer brief disc Impacts on Agency Cost Theory Impacts on Agency Cost Theory The main purpose of this research is to investigate how the determinants of the capital structure (leverage) and the dividend payout policy impact the agency cost theory. Literature review part picked up the relevant material related to agency theory, leverage, and dividends payout policy. The literature review section goes through the agency cost literature, and explores the financial policies; the capital structure (leverage), and the dividend payout policy and that these policies would influence the agency cost theory. 2.1 Agency theory Literature The notion of the agency theory is widely used in economics, finance, marketing, legal, and social sciences; Jensen and Meckling (1976) initiated and developed it. Capital structure (leverage) for the firms is determined by agency costs, i.e., costs related to conflict of interests between various groups including managers, which have claims on the firm’s resources (Harris and Raviv, 1991). Jensen and Meckling (1976) defined the agency relationship as â€Å"a contract under which one or more persons (the principal) engage another person (the agent), to perform some service on their behalf which involves delegating some decision making authority to the agent† pp.308. Assuming that both parties utility maximizes, the agents are not possible to act in the best interest of the principal. Furthermore, Jensen and Meckling (1976) contended that the principal can limit divergences from his interest by establishing appropriate incentives for the agent, and by incurring monitoring costs (pecuniary and non pecuniary), which are designed to limit the aberrant activities of the agent. Jensen and Meckling (1976) argued that the agency costs are unavoidable, since the agency costs are borne entirely by the owner. Jensen and Meckling (1976) contended that the owner is motivated to see these costs minimized. Authors who initiated and developed the agency theory have argued that if the owner manages a wholly owned firm, then he can make operating decisions that maximise his utility. The agency costs are generated if the owner manager sells equity claims on the firms, which are identical to his.  It also generated by the divergence between his interest and those of the outside shareholders, since he then bears only a fraction of the costs of any non-pecuniary benefits he takes out maximizing his own utility (Jensen and Meckling, 1976). Jensen and Meckling (1976) suggested two types of conflicts in the firm; First of all, the conflict between shareholders and managers arises because managers hold less than a hundred percent of the residual claim. Therefore, they do not capture the entire gain from their profit enhancement activities, but they do bear the entire cost of these activities. For example, managers can invest less effort in managing firm resources and may be able to transfer firm resources to their own, personal benefit, i.e., by consuming â€Å"perquisites† such as a fringe benefits. The manager bears the entire cost of refraining from these activities but captures only a fraction of the gain. As a result, managers over indulge in these interests relative to the level that would maximize the firm value. This inefficiency reduced the large fraction of the equity owned by the manager. Holding constant the manager’s absolute investment in the firm, increases in the fraction of the firm financed by debt increases the manager’s share of the equity and mitigates the loss from conflict between the managers and shareholders. Furthermore, as pointed out by Jensen (1986), since debt commits the firm to pay out cash, it reduces the amount of free cash flow available to managers to engage in these types of interests.  As a result, this reduction of the conflict between managers and shareholders will constitute the benefit of debt financing. Second, they also suggested that the conflict between debt holders and shareholders arises because the debt contract, gives shareholders an incentive to invest sub optimally. Especially when the debt contract provides that, if an investment yields large returns, well above the face value of the debt, shareholders capture most of the gain. However, if the investment fails, debt holders bear the consequences. Therefore, shareholders may benefit from investing in very risky projects, even if they are under valued; such investments result in an adverse in the value of debt. Lasfer (1995) argued that debt exacerbates the conflict between debt holders and shareholders. Shareholders will benefit from investments in risky projects at the expense of debt holders.  If the investment yields higher return than the face value of debt, shareholders capture most of the gain, however, if the investment fails, debt holders lose, given that. Therefore, shareholders protected by the limited liability. On the other hand, if the benefits captured by debt holders reduce the returns to shareholders, then an incentive to reject positive net present projects has created. Thus, the debt contract gives shareholders incentives to invest sub optimally. In addition, Myers (1977) argued that the firms with many growth opportunities should not be financed by debt, to reduce the negative net value projects.   Furthermore, some of arguments have been debated that the magnitude of the agency costs varies among firms. It will depend on the tastes of managers, the ease with which they can exercise their own preferences as opposed to value maximization in decision making, and the costs of monitoring and bonding activities. Therefore, the agency costs depend upon the cost of measuring the manager’s performance and evaluating it (Jensen and Meckling, 1976). (Jensen, 1986) either points out that when firms make their financing decision, they evaluate the advantages that may arise from the resolution of the conflicts between managers, shareholders and from long run tax shields.   In addition, Lasfer (1995) argues that debt finance creates a motivation for managers to work harder and make better investment decisions. On the other hand, debt works as a disciplining tool, because default allows creditors the option to force the firm into liquidation. Debt also generates information that can be used by investors to evaluate major operating decisions including liquidation (Harris and Raviv, 1990). Jensen (1986) debated that when using debt without retention of the proceeds of the issue, bonds the managers to meet their promise to pay future cash flows to the debt holders. Thus, debt can be an effective substitute for dividends. By issuing debt in exchange for stock, managers are bonding their promise to pay out future cash flows in a way that cannot be accomplished by simple dividend increases. Consequently, managers give recipients of the debt the right to take the firm to the bankruptcy court if they do not maintain their commitment to make the interest and principle payments. Thus, debt reduces the agency costs of free cash flow by reducing the cash flow available for spending at the discretion of managers. Jensen (1986) claimed that these control effects of debt are a potential determinant of capital structure. In practice, it is possible to reduce the owner manager non pecuniary benefits; by using these instruments external auditing, formal control systems, budget restrictions, and the establishment of incentive compensation systems serve to identify the manager’s interests more closely with those of the outside shareholders (Jensen and Meckling, 1976). Jensen (1986) suggested that leverage and dividend may act as a substitute mechanism to reduce the agency costs. Agency cost models predict that dividend payments can reduce the problems related to information asymmetry. Dividend payments might be consider also as a mechanism to reduce cash flow under management control, and help to mitigate the agency problems (Rozeff, 1982, and Easterbrook, 1984). Therefore, paying dividends may have a positive impact on the firms value. â€Å"Agency theory posits that the dividend mechanism provides an incentive for managers to reduce the costs related to the principal agent relationship, one way to reduce agency costs is to increase dividends† Baker and Powell (1999). They also claim that firm use the dividends use as a tool to monitor the management performance. Moreover, Easterbrook (1984) and Jensen (1986) argue that agency costs exist in firms because managers may not always want to maximize shareholder’s wealth due to the separation of ownership and control. Jensen (1986) addresses the free cash flow theory, in terms of this theory the conflict of interest between managers and stockholders is rooted in the presence of informational and self interest behavior. He defines the free cash flow as â€Å"cash flow in excess of that required to fund all projects that have positive net present value when discounted at the relevant cost of capital† (Jensen,1986). Within the context of the free cash flow hypothesis, firms prefer to increase their dividends and distribute the excess free cash flow in order to reduce agency costs. Consequently, markets react positively to this type of information. This theory is attractive because it is consistent with the evidence about investment and financing decisions (Jensen, 1986, Frankfurter and Wood, 2002). 2.2 Leverage Literature This section reviews the determinants of capital structure by different relevant literatures. Titman and Wessels (1988) study is considered to be one of the leading studies in the developed markets. They tried to extend the empirical work in capital structure theory by examining a much broader set of capital structure theories, and to analyze measures of short term, long term, and convertible debt. The data covers the US industrial companies from 1974 to 1982, and they used a factor analytic approach for estimating the impact of unobservable attributes on the choice of corporate debt ratios. As a result, the study confirms these factors, collateral values of assets, non-debt tax shields, growth, and uniqueness of the business, industry classification, firm size, and firm profitability. They also found that there is a negative relationship between debt levels and the uniqueness of the business. In addition, short term debt ratios have a negative relationship to firm size. However, they do not provide support for the effect on debt ratios arising from non debt tax shields, volatility, collateral value of assets, and growth. In Jordan, Al-Khouri and Hmedat (1992) aimed to find the effect of the earnings variability on capital structure of Jordanian corporations from the period from 1980 to 1988. They included 65 firms. The study used a multivariate regression approach with financial leverage as the dependent variable measured in three ways; first, long term debt over total assets, secondly, short term debt over total assets, and finally, short term debt plus long term debt over total assets. The standard deviation of the earnings variability and the size of the firm measured as independent variables. They concluded that the firm size is considered as a significant factor in determining the capital structure of the firm, and insignificant relationship between the earning variability and financial leverage of the firm. Furthermore, they suggest that the type of industry is not considered as a significant factor in determining the capital structure of the firm. Rajan and Zingales (1995) provided international evidence about the determinants of capital structure. They examined the capital structure in other countries related to factors similar to those that influence United States firms. The database contains 2583 companies in the G7 countries. They used regression analysis with the firm’s leverage (total debt divided by total debt plus total equity) as the dependent variable. Tangible assets, market to book ratio, firm size, and firm profitability used as independent variables. They found that in market bases firms with a lot of fixed assets are not highly levered, however, they supported that a positive relationship exists between tangible assets, and firms size, and capital structure (leverage). On the contrary, they confirmed that there is a negative relationship between leverage and the market to book ratio, and profitability. From the capital structure literature, Ozkan (2001) also investigated that the determinants of the target capital structure of firms and the role of the adjustment process in the UK using a sample of 390 firms. The multiple regression approach (panel data) was used to measure the debts by total debt to total assets, on the one hand. He also used in his model, non debt tax shield, firm size, liquidity, firm profitability, and firm growth as an independent variables. He confirmed that the profit, liquidity, non debt tax shield, and growth opportunities have a negative relationship to capital structure (leverage). Finally, he supported that there is a positive effect arising from size of firms on leverage. The study provided evidence that the UK firms have long term target leverage ratios and that they adjust quickly to their target ratios. The study by Booth et al. (2001) is considered as a one of the leading studies in the developing countries. It aimed to assess whether capital structure theory is applicable across developing countries with different institutional structures. The data include balance sheets and income statements for the largest companies in each selected country from the year 1980 to 1990. It included 10 developing countries: India, Pakistan, Thailand, Malaysia, Zimbabwe, Mexico, Brazil, Turkey, Jordan, and Korea. The study used multivariate regression analysis with dependent variables; total debt ratio, long term book debt ratio, and long term market to debt ratio. The independent variables are; average tax rate, tangibility, business risk, firm size, firm profitability, and market to book ratio. Booth et al. found that the more profitable the firm the lower the debt ratio, regardless how the debt ratio is defined. In addition, the higher the tangible assets mix, the higher is the long term debt ratio but the smaller is the total debt ratio. Finally, it concluded that debt ratios in developing countries seem to be affected in the same way by the same set of variables that are significant in developed countries. Voulgaris et al. (2004) investigated the determinants of capital structure for Greek manufacturing firms. The study used panel data of two random samples one for small and medium sized enterprises (SMEs) including 143 firms and another for large sized enterprises (LSEs) including 75 firms for the period from 1988 to 1996. It used a leverage model as a dependent variable (short run debt ratio, long run debt ratio, and total debt ratio). On the other hand, It used firm size, asset structure, profitability, growth rate, stock level, and receivables as independent variables. The study suggested that there are similarities and differences in the determinants of capital structure among the two samples. The similarities include that the firm size and growth opportunities positively related to leverage. While, they confirm that the profitability has a negative relationship to leverage. Moreover, they pointed out the differences that the inventory period, and account receivables collection period have been found as determinants of debt in SMEs but not in LSEs. Liquidity doest not affect LSEs leverage, but it affects the SMEs. Finally, they also suggested that there is a positive relationship between profit margins and short term debt ratio only for SMEs. Voulgaris et al. (2004) have debated this arguments as; ‘‘the attitude of banks toward small sized firms should be changed so they provide easier access to long-term debt financing’’. In addition, â€Å"enactment of rules that will allow transparency of operations in the Greek stock market and a healthier development of the newly established capital market for SMEs will assist Greek firms into achieving a stronger capital structure’’. 2.3 Dividends payout ratio literature Dividend payout ratios vary between firms and the dividend payout policy will impact the agency cost theory. Rozeff (1982) investigated in his study that the dividends policy will be rationalize by appealing the transaction cost and agency cost associated with external finance. Moreover, Rozeff (1982) had found evidences supporting how the agency costs influence the dividends payout ratio. He found that the firms have distributed lower dividend payout ratios when they have a higher revenue growth, because this growth leads to higher investment expenditures.  This evidence supports the view of the investment policy affect on the dividend policy; the reason for that influences is that would the external finance be costly. Conversely, he found that the firms have distributed higher dividends payouts when insiders hold a lower portion of the equity and (or) a greater numbers of shareholders own the outside equity. Rozeff (1982) pointed out that this evidence supports that the dividend payments are part of the firm’s optimum monitoring and that bonding package reduces the agency costs. Moreover, if the agency cost declines when the dividend payout does and if the transaction cost of external finance increases when the dividend payout is increased as well, then minimization of these costs will lead to a unique optimum for a given firm. In addition, Hansen, Kumar, and Shome [HKS], (1994) pointed out the relevance of the monitoring theory for explaining the dividends policy of regulated electric utilities. From an agency cost perspective, they emphasized their ideas that the dividends promote monitoring of what they call the shareholders regulator conflict. Therefore, it is a monitoring role of dividends. On the contrary, Easterbrook’s (1984) has noted that the dividends monitoring of the shareholders managers conflict. They also have observed that the utilities firms have a discipline of monitoring mechanism for controlling agency cost, depending on the relative cost effectiveness of those costs (Crutchly and Hensen, 1989). The regulator process will impact the conflict between the shareholders and mangers, by mitigate the managers’ power to appropriate shareholders’ wealth and consume perquisites (Hansen et al. 1994). On the other hand, they argued this issue by the cost-plus concept, regulators may set into motion of managerial incentive structure that potentially conflicts with shareholders interests, this concept solve the shareholders-regulators concept since the sources of the conflict lies in differences in the perceptions of what constitutes fair cost plus. Therefore, the regulation can control some of the agency cost while exacerbating others. In their study, they conduct also that the managers and shareholders of unregulated firms have a several mechanisms whether, internal or external, for controlling agency cost. In addition, they observed that the dividend policy to reduce the agency theory is not limited, depending on their findings they suggested that the cost of dividend payout policy might be below the costs paid by other types of firm. In fact the utilities company maintain high debt ratio that would maintain as well as equity agency costs. Aivazian et al. (2003b) compare the dividend policy behaviour of eight emerging markets with dividend policies in the US firms in the period from 1980 to 1990. The sample included firms from; Korea, Malaysia, Zimbabwe, India, Thailand, Turkey, Pakistan, and Jordan. They found that it is difficult to predict dividend changes for such emerging markets. This is because the quality of firms with reputations for cutting dividends is somehow similar to those who increase their dividends, than for the US control sample. In addition, current dividends are less sensitive to past dividends than for the US sample of firms. They also found that the Lintner model[1] does not work well for the sample of emerging markets. These results indicate that the institutional frameworks in these emerging markets make dividend policy a weak technique for signaling future earnings and reducing agency costs than for the US sample of firms. Furthermore, Omran and Pointon (2004) investigated the role of dividend policy in determining share prices, the determinants of payout ratios, and the factors that affect the stability of dividends for a sample of 94 Egyptian firms. They found that retentions are more important than dividends in firms with actively traded shares, but that accounting book value is more important than dividends and earnings for non-actively traded firms. However, when they combined both the actively traded and non-traded firms, they found that dividends are more important than earnings. In the determinants of payout ratios, they found that there is a negative relationship between the leverage ratio and market to book ratio, tangibility, and firm size on the one hand, to the payout ratios in actively traded firms. On the contrary, they also found that there is a positive relationship between the business risk, market to book and firm size (measured by total assets) to payout ratios in non-actively traded firms. Furthermore, for the whole sample, leverage has a positive relationship with payout ratios, while firm size (measured by market capitalization) is negatively related to payout ratios. Finally, the stepwise logistic regression analysis shows that decreasing dividends is associated with lack of liquidity and overall profitability. In addition, increasing dividends is associated with higher overall profitability. 2.4 Summary In this chapter the relevant literatures addressing the reviews of the agency cost theory related to the financial policies. It also gives a theoretical background on how the conflicts of interests arise between the agents (managers) and the principal (shareholders). The second and third sections present the determinants of leverage and dividend payout policy. The following chapter will go through the description of data, and data methodology was employed for this dissertation. 3. Methodology, Research Design and Data Description The aim of the current study is to investigate firstly, the empirical evidence of the determinants of leverage and dividend policy under the agency theory concept for the period 2002-2007. The majority of the previous studies in the field of capital structure have made in the context of developed countries such as USA and UK. It is important to investigate the main determinants of leverage and dividend policy in developing countries where, capital markets, are less developed, less competitive and suffering from the lack of compatible regulations and sufficient supervision This chapter will explain the research methodology of this study. This chapter also identifies the sample of the study. Moreover, it presents an illustration of the econometric techniques that have been employed. In addition, this chapter gives a brief explanation of the specification tests used in the study to identify which technique is the best for the data set. This chapter structured as follows; Section (3.1) presents data description.  Section (3.2) presents the sample of the study. Section (3.3) discusses the econometric techniques employed in the study. Finally, Section (3.4) provides a brief summary. 3.1 Data Description The data used in the study are secondary data for companies listed at Amman Stock Exchange (ASE) for the period of 2002-2007. The data was extracted from the firm’s annual reports, and from Amman Stock Exchange’s publications (The Yearly Companies Guide, and Amman Stock Exchange Monthly Statistical Bulletins). Data is readily available in the form of CD and on the website of the Amman Stock Exchange. The reason for the study period selection was to minimize the missing observations for the sample companies. Moreover, a different reporting system has been used since 2000. The application of the new reporting system was the result of the transparency act which was launched in 1999, and forced all companies listed in Amman Stock Exchange to disclose their financial information and publish their annual reports according to the International Financial Reporting Standards. In other words, this data series for the period from 2002-2007 was chosen in terms of consistency and comparability purposes. 3.2 Sample of the study The sample of the study consists of the Jordanian Manufacturing companies listed on the Amman Stock Exchange for the period of 2002-2007. The total number of the companies listed in ASE at the end of year 2007 was 215. Officially, these companies are divided into four main economic sectors; Banks sector, Insurance sector, Services sector and finally Industrial sector. Moreover, this study is concerned only with Jordanian manufacturing companies that their stocks are traded in the organized market. It is important to note that the capital structure of financial firms has special characteristic when compared to the capital structure of non financial firms, they also have special tax treatment (Lester, 1995). On the other hand, the financial firms have a higher leverage rate, which may tend to make the analysis results biased. Moreover, financial firms their leverage is affected by investor insurance schemes (Rajan and Zingals, 1995). For these reasons, the potential sample of the study consists of non financial (Manufacturing) companies that are still listed in Amman Stock Exchange. The total number of industrial companies listed in ASE at the end of year 2007 was 88 companies, which are 40.93% of the total number of the companies listed in that market. The study conducts the following criteria in selecting the sample upon the Jordanian manufacturing companies by excluding all the firms that was incorporated after year 2002, and all the firms that have merged or acquired during this period, further, the firms have liquidated or delisted by the Amman Stock Exchange, and finally, the study have also excluded the firms that have information missing for that period. The application for those criteria has resulted in 52 samples of manufacturing companies. The data for the variables that are included in the study models is tested using three different econometric techniques which will be discuss briefly in the next sections. 3.3 Econometrics techniques Hairs et al. (1998) argued that the application of econometrics technique depends on the nature of data employed in the study, and to what extent it would be realised to the research objectives. In order to find a best and adequate data model, the current study employs pooled data technique and panel data analysis which is usually estimated by either fixed effect technique or random effects technique.  The following sections provide a brief discussion on the econometrics techniques that the current study uses to estimate the empirical models. 3.3.1 Pooled Ordinary Least Square (OLS) technique All the models used in the study have been tested by the pooled data analysis technique. The pooled data is the data that contains pooling of time series and cross-sectional observations (combination of time series and cross-section data) (Gujarati, 2003). The pooled data analysis has many advantages over the pure time series or pure cross sectional data. It generates more informative data, more variability, less collinearity among variables, more degrees of freedom, and more efficiency (Gujarati, 2003). The underlying assumption behind the pooled analysis is that, the intercept value and the coefficients of all the explanatory variables are the same for all the firms, as well as they are constant over time (no specific time or individual aspects). It also assumes that the error term captures the differences between the firms (across-sectional units) over the time. However, (Gujarati, 2003) has pointed out that these assumptions are highly restrictive. He argues that although of it is simplicity and advantages, the pooled regression may distort the true picture of the relationship between the dependent and independent variables across the firms. Pooled model will be simply estimated by Ordinary Least Square (OLS). However, OLS will be appropriate if no individual (firm) or time specific effects exist. If they exist, the unobserved effects of unobserved individual and time specific factors on dependent variable can be accommodated by using one of the panel data techniques.   According to (Gujarati, 2003) panel data is a special form of pooled data in which the same cross-sectional unit is surveyed over time. It helps researchers to substantially minimize the problems that arise when there is an omitted variables problems such as time and individual-specific variables and to provide robust parameter estimates than time series and (or) cross sectional data. All the empirical models that have been tested by using pooled data analysis and tested again on the basis of panel data analysis techniques (Fixed Effects and Random Effects).   3.3.2 The fixed effects model (FEM) Fixed effects technique allows control for unobserved heterogeneity which describes individual specific effects not captured by observed variables. According to Gujarati (2003) the fixed effect model takes into account the specific effect of each firm â€Å"the individuality† by allowing the intercept vary across individuals (firms), but each individual’s intercept does not vary over time. However, it still assumes that the slope coefficients are constant across individuals or over time. Two methods used to control for the unobserved fixed effects within the fixed effects model; the first differences and Least Square Dummy variables (LSDV) methods.  For the purposes of the current study, (LSDV) was used where; two sets of dummy variables (industry, and year dummy variables). The additional dummy variables control for variables that are constant across firms but change over time. Therefore, the combine time and individual (firm) fixed effects model eliminates the omitted variables bias arising both from unobserved factors that are constant over time and unobserved factors that are constant across firms. However, fixed effects model consumes the degrees of freedom, if estimated by the Least Square Dummy Variable (LSDV) method and, too many dummy variables are introduced (Gujarati, 2003). Furthermore, with too many variables used as regressors in the models, there is the possibility of multicollinearity. It is worth noting that OLS technique used in estimating fixed effects model. 3.3.3 The Random Effects Model (REM) By contrast, fixed effects model, the unobserved effects in random effects model is captured by the error term (ÃŽ µit) consisting of an individual specific one (ui) and an overall component (vit) which is the combined time series and cross-section error. Moreover, it treats the intercept coefficient as a random variable with a mean value (ÃŽ ±0) of all cross-sectional (firms) intercepts and the error component represents the random deviation of individual intercept from this mean value (Gujarati, 2003). Consequently, the individual differences in the intercept values of each firm are reflected in the error term (ui). On the other hand, the Generalized Least Square (GLS) used in estimating random affects model.  This is because the GLS technique takes into account the different correlation structure of the error term in the Random Effect Model (REM) (Gujarati, 2003). 3.3.4 Statistical specification tests The study uses three specification tests to identify which empirical method is the best. These tests are used for testing the fixed effect model versus the pooled model (F-statistics), the random effect model versus pooled model (Lagrange Multiplier test) (LM), and the fixed effect model versus the random effect model (Hausman test). The following sub-sections offer brief disc