Depression and anxiety among college students - 1080 Words

Depression and anxiety among college students is something that experts have focused on for the past twenty years. The information they have been gathering ranges from the different stressors of college life to the effects of ones culture on how they deal with depression or anxiety symptoms. They have identified a few core characteristics of depression and thoughts of suicide. These are both serious concepts in which people need to seek help for. It is important for students to reach out to friends, family, or professionals to support them during this time. Many campuses offer counseling centers which are seeing many more people over the past few years. In the past 35 years the suicide rate for college campuses has tripled (Oswalt†¦show more content†¦Depressed students feel all the symptoms of depressions more than non-depressed students do. As a whole, 44% of college students experience some depressive symptoms (PsychCentral 2010). Depression impacts lives in more than j ust one way. There are a multitude of elements that influence the onset of depression and depressed feelings. The daily stressors of college life are one contributing factor to depression in college students. Some of the other stressors include: conflict between work and family, relationship problems, financial concerns, and poor grades, lack of social support or networks, a sense of not belonging, having fewer friends, and experiencing loneliness (Lindsey 2009). The economy has had an impact on every party of our society, including education. Heavy student loans are just another burden on these kids who do not know what their future career will hold for them (Curetalk). These different responsibilities are just other factors that influence the emotional health of college students. A combination of factors can add to the depressed feelings that a student may feel. Some of these are just the natural stressors of college. People deal with these stressors in different ways. If they are not addressed, the effects can include sleep loss, stress, and substance abuse (Voelker 2004). Stress reactions and depression are linked because the anterior cingulate cortex, the region of the brain implicated in executive decision making is also linked to howShow MoreRelatedDepression And Anxiety Among College Students Essay1376 Words   |  6 PagesIntroduction Anxiety and Depression disorders are two of the most common mental disorders in the United States (Falsafi, 2016). It appears that the two disorders are widespread amongst college students and most cannot manage the high demands and stress (Falsafi, 2016). Therefore, they feel more prone to depression and anxiety (Falsafi, 2016). According to the authors Miller Chung, mental health amongst college students in the United States is a growing public health concern and educators areRead MoreTerm Paper : Depression Among College Students Essay1113 Words   |  5 Pagesis depression among college students (ages 18-25) . In the physical approach depression can lead to problems sleeping, concentrating, body aches and much more. In the cognitive approach college students who experience depression have thought of or committed suicide. In the emotional approach, depression leads to depressed moods like sadness and frustration and in social approach those who around you can affect your depress ion negatively or positively. Depression is strongly related to college studentsRead MoreA Psychology Participant Pool Questionnaire1006 Words   |  5 Pageswith elevated depression were pulled from the questionnaire. Among the 100 participants, there was 45% male and 55% female with the average age being around 19. The college undergraduates ranged from freshman to seniors with, 67% freshman, 20% Sophomores, 10% Juniors, and 3% Seniors. Among the college students, the majority were African-American at 85%, Asian 10%, and the rest 5%. 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The Journal of Psychology 147.5: 469-90. Print. 2. What is the specific topic the article is addressing? (i.e. the role of childhood maltreatment in eating disorders? The effect of exercise on stress levels?) The authors of this study are interested in how decreased emotional regulation is related to hostility and anger, which in turn can lead to symptoms of depression, GADRead MoreEffects Of Depression On College Students1335 Words   |  6 Pages Depression is a commonly known mental illness that is founded not only in adults but, is founded more in College students. The 2012 from the Association for University and College Counseling Center Directors indicated that 95% of counseling center directors believe that psychological problems are a growing concern and that depression is one of the most prevalent concerns with 36% of college students affected (Jennifer E. Merrill, 2014). Depression in college tends to lead to alcohol abuse becauseRead MoreIntroduction Published in May 2011 the paper entitled â€Å"The relation of depression and anxiety in1300 Words   |  6 PagesIntroduction Published in May 2011 the paper entitled â€Å"The relation of depression and anxiety in academic achievement among group of university students† is a cross-sectional study that attempts to establish the connection between academic achievement, and depression. In this paper, it is my intention to critique the aforementioned paper and provide an overview on the following areas, methods and samples, subjects and outcome measures, results, critical evaluation and the contribution to medicalRead MoreCollege Student And Mental Health1026 Words   |  5 PagesMerritt Voit Dr. Nystrom ENGL 1301 – 06 S 26 November 2016 College Student and Mental Health Getting ready to transition into the college lifestyle was something I was both nervous and excited for. The thought of a new school, teachers, friends, and living arrangements all gave me the satisfaction of feeling like a true adult. Knowing that I would finally be the one making decisions for myself and managing my own time seemed like the perfect end to all of the years of being told what to do and whereRead MoreThe Effects Of Sleep Deprivation On College Students Essay1319 Words   |  6 Pagesis a frequent obstacle that many college students in America face. Insomnia in college students can have an immense impact on psychological and physical health, which greatly influence academic success. Research shows that 70% of college students qualify as sleep deprived. Sleep deprivation has also been linked with several diseases/disorders, including: depression, anxiety, and obesity. Our research question investigated how sleep deprivation in college students affects them physiologica lly andRead MoreThe Connection Between Stressors And Mental Illnesses1262 Words   |  6 PagesSpecific Aims Cases of mental illness in colleges are growing. There is a increasing number of students in colleges, and with that an increasing number of students developing a mental illness. The hypothesis is that first year students from low income and lower social statuses are developing serious mental illnesses as a result of the high demands of college course loads and as a result are relying on dangerous methods of coping. The project will focus on the following: The connection between

Women Organizers in the Civil Rights Movement Free Essays

string(52) " for African American Social and American progress\." Women organizers in the Civil Rights movement (1950’s-1960’s) Women have always been regarded as key parental figure in raising and developing children in the society. During the period of 1950 to 1970, many parts of the world were marred with civil rights movement. The movements were characterized with protests and civil resistance complaining about discrimination economic and political self sufficiency. We will write a custom essay sample on Women Organizers in the Civil Rights Movement or any similar topic only for you Order Now Women took up the initiative to participate in these movements. This situation later led to serious confrontation between government authorities and activists. Thousands of people took part in the civil right movement of that period especially in the United States. The key leaders of the campaign, include; Martin Luther King, Malcolm X, Stokely Carmichael, Rosa Parks, James Meredith and Medgar Evers, played crucial roles for of the achievements of the Civil Rights Movement in America[1]. This paper covers factors that motivated women, the contributions they had, roles they played as well as the problems they encountered during the civil rights movement of 1950’s and 1960’s. Most of the women who were involved in these movements were born during the slavery period, hence the pain and suffering they experienced at that time stimulated them to speak out against oppression. One of the most vocal women who started to speak against oppression was Wells Barnett. She began her struggle in 1909, by travelling abroad to seek international attention on this issue[2]. She also formed National association for the advanced of Colored people. Her efforts were later joined by the struggle for gender sensitization by Mary Church Terrell. She was very vocal and spoke about segregation of the blacks in public eating joints. She led most of the citizens to boycotts and picketing to attract attention to racial injustice[3]. She established the black club movement that led to the formation of National Association of Colored Women similar to that of Barnett. She was also very instrumental in bringing up socially progressive institutions such as mother clubs and nursery schools. The three year struggles with authorities bow her fruits when the Supreme Court ruled that segregation of public eating places was unconstitutional[4]. Another very instrumental lady in these movements was Mary McLeod. She often worked together with both Terrell and Barnett. Mary became the president of National Association of Colored Women[5]. Being at the supreme of the organization, she became a good friend of Sara Roosevelt the mother of Franklin Roosevelt mayor of New York. She used the good rapport she had with this politically influential family to continue her struggle for social justice of the black[6]. She was later appointed to be the head of National Youth Council by President Roosevelt. Eleanor Roosevelt took the same path after being inspired by Terrell and Mary McLeod. After her husband was elected as the 32nd president Eleanor became instrumental in fighting injustice by calling for international and national attention to the effects of oppression and racial discrimination. She took a bold step and resigned from the Daughter of American Revolution since they had differed in ideologies. Ella baker was another activist who dedicated her time to speak out against oppression. She was regarded as the leader behind the scenes. She struggled to study due to the fact that her family was not well of. She graduated and became a teacher. She relocated to New York and quit her profession to engage in social change. She got involved with NAACP in the grassroots level in recruiting more people to the organization. She also was instrumental in the formation of other small organizations such as Student Nonviolent Coordinating Committee and the Mississippi Freedom Democratic Party. These movements later were used by Martin Luther King Jr. to organize his boycott and nonviolent movement. The wave of women participation in the civil movement was unstoppable. Rosa Park, who was famously regarded as the mother of the civil rights movement, was also contributed in this struggle. She is believed to have started the main struggle of these civil rights movement. She experienced difficulty in completing her education due to the strict regulations for the black children. The black children were meant to study for only five moths in a year and the rest of the year they spent time in the cotton fields as laborers. Rosa graduated from high school after she got married to Raymond parks[7]. This sparked her efforts to fight racial injustice. She joined National Association for the Advancement of Colored People Montgomery chapter as the only woman. She was very instrumental member of this organization and was elected secretary. Her active involvement in National Association of Advanced Colored People led to her arrest on 1955[8]. Rosa’s life as an African American continued to face challenges. The mistreatment she received from the whites while she was in a bus made her to launch a huge boycott of using Montgomery buses by the Afro-Americans. She decided to organize this boycott after she got arrested for refusing to give out her seat to a white passenger in the bus. The boycott lasted for 381 days prompting her to be absorbed by the Montgomery Improvement Association which was formed by Martin Luther King Jr[9]. This act of boycott was followed by a series of escalating protest, movements and insurgencies by African Americans. During the time for boycott Rosa coordinated for the blacks to get rides from car pool ups and other whites who offered to help. The used the slogan ‘don’t use the bus today. Don’t use it for freedom. ’ The boycotters together with Mrs. Rosa Park took the case to court disputing the segregation in buses[10]. They later worn the case after the court ruled on their favor. After the successful boycott Rosa and her families were not secure in Montgomery. They relocated to Detroit where she worked for congressman John Conyers. She continued to raise her voice and incited the youth to take up the struggle for African American Social and American progress. You read "Women Organizers in the Civil Rights Movement" in category "Essay examples" After the women political council had initiated the boycott in Montgomery, Martin Luther king came to the limelight taking all the credit as the leader for the nonviolent resistance. Martin Luther King Jr. and Malcolm X traversed different sections of the country giving powerful speeches and mobilizing nonviolent movements. Sparks of none violent movements were seen in other parts of the country[11]. These nonviolent movements escalated to violent racial rebellion in major cities in the U. S. s the movement went militant it provoked the whites against pro-black policies and the police. The success of events of this decade was at the peak when the Supreme Court decides the case of brown v board of education ruling in favor of brown. The court declared that segregation of s chools unconstitutional. In the 1960’s many women rights group were established to continue the fight against racial injustice and oppression. This was the decade that saw progressive women rights movement in the United States and world Wide. Most of these groups comprised of female students who advocated for equal employment opportunity for both men and women. They also lobbied for enforcement of equal rights laws. Later that decade national organization for women was formed to replace women commission and it continued with the fight against sexual discrimination. The commission was disbanded due to lack of funds. The women equity action league founded in 1968, sought to investigate inequalities in faculty pay and promotions of both men and women in education workforce. These remarkable women played an important role in inspiring other activists and grassroots leaders who in turn mobilized more and more people to join the struggle. These women also helped millions of women to gain their fundamental rights as women. They were mostly motivated by the mass followers they had. Motivation also came from the cases they had in courts which ended up favoring the blacks and declaring most of the segregation unconstitutional. They drew their inspiration from civil rights movement they had organized. The organizations they were involved with had a lot of confidence in them hence they elected these women to high posts which favored their situation and gave them an upper hand in organizing the struggle[12]. To overcome the problems they encountered they formed organizations such as national Organization for women. National Organization of Women key mandate was to enlighten the women to fully participate in mainstreaming of American society. These organizations brought them together in unity and increased their awareness on critical issues that affect them. This enabled them to have a strong voice over the oppression and neglect they were facing and forced the federal government to enforce the law. The ideologies fomented by certain black power movement were destructive and fostered cultural conflict. This posed a challenge to the efforts of the women who organized movements before. The other major challenge that affected these courageous women is the fact that most of the influential leaders, who had followed suit to lead mass movement, ended up being arrested or assassinated[13]. A good example is the cases of Malcolm x and Martin Luther King. The women’s morale was undermined by these acts. The supremacy of the white also undermined their efforts in the sense that they seemed to bend the law on their favor and oppressed the blacks in all sectors. The civil war escalated by the Ku Klux Klan and the lynch mob in the south were meant to threaten the activists from pursuing further with their quest[14]. The vocal contribution of Martin Luther King Jr. was faced with bomb attacks to his church and residence. The mass movements in America were a vital process to transform America to its current state. The vibrant voices of these women led to signing of the civil rights act to law. The law protects all minorities and women from discrimination in voting employment and use of public areas. They were also rendered freedom of choice. This was viewed as victory for both blacks and women. The revival of the African American militancy was an exceptional progress to the realization of democratic ideals[15]. The shared commitment to take the risk and highlight injustice and press the course for change resulted to the change in attitude of many American citizens. They tore down the oppressive racial and segregation system that had dominated the country for a long time thus bringing a remarkable transformation of American life. Bibliography Bermanzohn, Sally Avery. â€Å"Violence, Nonviolence, and the Civil Rights Movement. New Political Science 22, no. 1 (March 2000): 31-48. Academic Search Complete, EBSCOhost (accessed April 15, 2011). Gates, Henry Louis Jr. Bearing witness: selections from African-American autobiography in the twentieth century. New York: Pantheon Books, (1991). Greenblatt, Alan. â€Å"Race in America. † CQ Researcher 13, no. 25 (July 11, 2003): 593-624. http://library. cqpress. com/cqresearc her/cqresrre2003071100. Hine, Darlene Clark. Hine sight: black women and the re-construction of of American history. Bloomington: Indiana University, (1994). Jost, Kenneth. â€Å"School Desegregation. † CQ Researcher 14, no. 5 (April 23, 2004): 345-72. http://library. cqpress. com/cqresearcher/cqresrre2004042300. Naylor Gloria. Critical Perspectives Past and Present. New York: Amistad, (1993). ———————– [1] Greenblatt, Alan. â€Å"Race in America. † CQ Researcher 13, no. 25 (July 11, 2003): 593-624. http://library. cqpress. com/cqresearcher/cqresrre2003071100. [2] Darlene, Hine Clark. Hine sight: black women and the re-construction of of American history. Bloomington: Indiana University, (1994). [3] Naylor Gloria. Critical Perspectives Past and Present. New York: Amistad, (1993). [4] Henry Louis, Gates Jr. Bearing witness: selections from African-American autobiography in the twentieth century. New York: Pantheon Books, (1991). [5] Darlene, Hine Clark. Hine sight: black women and the re-construction of of American history. Bloomington: Indiana University, (1994). [6] Sally Bermanzohn, Avery. â€Å"Violence, Nonviolence, and the Civil Rights Movement. † New Political Science 22, no. 1 (March 2000): 31-48. Academic Search Complete, EBSCOhost (accessed April 15, 2011). [7] Greenblatt, Alan. â€Å"Race in America. † CQ Researcher 13, no. 25 (July 11, 2003): 593-624. http://library. cqpress. com/cqresearcher/cqresrre2003071100. 8] Bermanzohn, Sally Avery. â€Å"Violence, Nonviolence, and the Civil Rights Movement. † New Political Science 22, no. 1 (March 2000): 31-48. Academic Search Complete, EBSCOhost (accessed April 15, 2011). [9] Gates, Henry Louis Jr. Bearing witness: selections from African-American autobiography in the twentieth century. New York: Pantheon Books, (1991). [10] Hine, Darlene Clark. Hine sight: black women and the re-construction of of American history. Bloomington: Indiana University, (1994). [11] Jost, Kenneth. â€Å"School Desegregation. † CQ Researcher 14, no. 15 (April 23, 2004): 345-72. ttp://library. cqpress. com/cqresearcher/cqresrre2004042300. [12] Jost, Kenneth. â€Å"School Desegregation. † CQ Researcher 14, no. 15 (April 23, 2004): 345-72. http://library. cqpress. com/cqresearcher/cqresrre2004042300. [13] Hine, Darlene Clark. Hine sight: black women and the re-construction of of American history. Bloomington: Indiana University, (1994). [14] Greenblatt, Alan. â€Å"Race in America. † CQ Researcher 13, no. 25 (July 11, 2003): 593-624. http://library. cqpress. com/cqresearcher/cqresrre2003071100. [15] Gloria Naylor. Critical Perspectives Past and Present. New York: Amistad, (1993). How to cite Women Organizers in the Civil Rights Movement, Essay examples

Collaborative Economy and the Scenario in Australia Free Sample

Question: Briefly Explain the Advantages and Disadvantages of the Collaborative Economy for Workers, Businesses and the Government. Answer: Introduction The collaborative economy is one of the promising and dynamic sectors in the present scenario of international economy. In order to review the collaborative economy of Australia, one must have a clear sense of collaborative economy first. There are several different definitions of the collaborative or the sharing economy. According to Rachel Botsman an economy built on distributed networks of connected individuals and communities versus centralized institutions, transforming how we can produce, consume, finance, and learn. (Cannon and Summers 2014) However, this broad definition also includes the business models that operate in the traditional economy as well. However, the concept of collaborative economy is not a new phenomenon; it has always been a part of the economical development. Like many other governments, Australian government is now also attempting to take action to the rising collaborative innovations. Therefore this analytic report focuses on such government inquiries. In order to do that, this report will trigger to focus on the transport industry and how that has been challenged with the collaborative economy model. Therefore it will also discuss and analyze the use of the business model in respect to the firm Uber. Advantages and Disadvantages of the Collaborative Economy The phenomenon of collaborative economy has its advantages and disadvantages in accordance with the proponents and the opponents of the collaborative economy such as the government, businesses and the workers. In this section the essay triggers to discuss the pros and cons of this economy. Advantages: Recycling and repurposing of the products: The possessions of human beings such as the gadgets, cars and other properties are accumulated at one point of time. The usage of such products becomes lesser with the course of time. In the collaborative economy, the vehicles of the private owners can be offered to others for a minimum fee (ohen and Kietzmann 2014). This same goes for the accommodation industry as well. If there is an unused room, the owner can sublet that room to other people for rent. Through these kinds of exchange the unused possessions do not go for wastage. Lessening the number of unemployed citizen The collaborative businesses give people the chance to work from home online as well. These works are flexible and beneficial for the people who are working along with studying or having family responsibilities. Therefore they can work both ways. The employers in the collaborative economy therefore look for such candidates who can post such items online (McRostie 2017). As far as selling the items that were pre-owned the sellers can gain sufficient profit and at the same time the buyers can acquire such items at a lower cost. Opening of new business ideas The concept of collaborative economy produces several non profit and profit organizations and the business that offer the population funding and easier transportation services (Rubin, Aas and Stead 2015). For instance, Uber is such an organization that makes the transportation easier and less costly. With the emerging of collaborative economy, people with new and innovative ideas who did not have sufficient money can now get funding easily from other individuals who own private cars but in spite of using it they put in rent. Disadvantages: Application of unfair means There are several people who do not support the emerging of the collaborative economy. They indicate that most of the people who work under this collaborative economy, are deprived of the huge benefits that the other employees who work as the full time employees. These benefits include sick payments, paid leaves, bonuses etc (Rubin, Aas and Stead 2015). In addition to that emerging of the organizations such as Uber reduces the number of people who used to drive the taxies from its beginning and it affected the profit of those taxi drivers and other companies who were offering the transportation service before. Loss of Government Revenues The loss of the Government revenues is one of the major setbacks of the collaborative economy. According to the critics this collaborative economy enhances the chance of a huge loss of the tax revenues for the governments. In this business the people who are involves mostly conduct their business online and through sharing (Johnston and Huggins 2016). However, most of such practices are not regulated by the governments. As a result to that, paying the income taxes is not compulsory for everyone which enhances the loss of tax revenue. A new form of Capitalism The critics see the collaborative economy not exactly as it is said. They put a lot of significance on the darker side of the economy. The critics call it the access economy as it only provides the venue of working to the people for accessing their products and services. However, at the end the players of this field are the ones who are mostly profited by the business, not the individuals who are providing the services. The Traditional and Collaborative Business Model in the Transport Industry Recent surveys and report suggest that there is an emerging awareness about the collaborative economy in Australia. The reports also show that around fifty three percent of the entire population has participated in some kind of collaborative economy, whereas around sixty three percent of them have a plan of participating in these ventures. There are numbers of significant business which are involved in the collaborative economy, especially in the transport industry. It has been shown in reports that on the transportation and automotive sector, the company Uber has generated around $38.5m (McCormick et al. 2016). Therefore it can be said that Australia is being one of the attractive markets for the sharing and collaborative economy applications, especially in the transportation industry. This is also because of the higher internet penetration in the country. Around seventy percent of the household have broadband at their homes, whereas seventy four percent of mobile users use smart ph ones. This study will focus the comparison of the traditional business model of the previous transportation and the new revenue model of transportation in Australia. With the emerging of organizations like Uber, there are a lot of new innovations that have been included in the transportation industry such as the ride sharing, car sharing, and peer to peer car sharing. With this implementation of the new revenue model, the service fee for the regular business of the service providers has reduced to a huge extent (Kinnear, Rose and Rolfe 2015). The company only takes a small percentage of the entire transaction for the successful transactions between the two parties in the market. The company has also reduced the cost of the flat membership at the same time, as they only have to rent a flat in an annual or monthly membership. The company also offers a vast range of the subscription plans for different prices on the basis of the frequency of usage. The collaborative businesses in the transpor t industry also offer to charge for an annual membership plans based on the usage of the members. Therefore it is easier for the users to travel and it reduces the cost. In these businesses the company generally offers the basic services to the users for free, such as the application can be downloaded without any cost. These new implementations have provided a ridesharing platform for the potential riders and the drivers; therefore they can efficiently match on the basis of their location within few minutes which have reduced the need of relying on the running taxis. These opportunities made the business of Uber run so well, that it has contribute over 1m rides in a year and it had earned approximately $20m in one city. The analysts have even claimed that it has made the financial expenses a lot down as one has to spend only $1 at the place of spending $12 on the taxi services. Collaborative Economy in Uber (Transport Industry) The sharing economy is the advanced process of establishing the business in the global context. This process has been widely accepted as the most significant business strategies for the growing sectors (Owyang, Tran and Silva 2013). It has been observed that the emergence of the sharing economy in the Australian transport industry is much helpful for saving the taxi bills and increasing the employment rates. However, in spite of the increasing benefits through sharing economy process, the transport industry has been facing some of the recognizable challenges. Cusumano, (2015) exclaimed that government needs to ensure the safety parameter of both the consumers and the providers. The major concern is whether the sharing economy process will improve the expense of the wages and safety (Lee et al. 2016). The above section of the study discussed the significant challenges that the transport industry faced due to the emerging trend of the sharing economy. The policies associated with the p eer-to-peer economy are ensuring the economic benefits derived from the sharing economy. For example, it can be estimated that Uber can cut down almost $500 million from the Australian taxi bill, which is quite close to almost 10% of the expenses spend each year to catch the taxis in Australia. However, it has been noticed that the application of the Collaborative Economy Revenue Models has transformed the traditional business approaches in the industry. Moreover, it can be implied that the application of such business model is much helpful in creating and capturing values (Lee et al. 2016). It is already discussed that the revenue model is associated with different factors such as service fees, membership plus usage, tiered subscription, freemium, and white level. It is necessary to mention that this approach is quite different to the traditional business models used for improving the service quality and economic parameter (Hamari, Sjklint and Ukkonen 2015). In case of Uber, it has been observed that the company has been facing the similar challenges with the expenses of the wages and safety (Owyang, Tran and Silva 2013). Therefore, it is necessary for the company to pay the closer attention towards the identified factors related to the specific business model. According to Evangelista (2014), in order to match up the two different sides of the marketplace, the company can cut down the percentage from the total transaction. The company has the access to cut down the percentage form the drivers and passengers that will help in increasing the revenue in a significant way. The business model includes the flat subscription for the members that incurs the monthly or annual fee regardless of the usage. It will be an innovative way of increasing revenues (Rifkin 2014). As per the business model, Uber can also use the range of subscription plan at different price points that depends on the frequency level of using the transport services. One of the most innovative feature of this business model is the use of the membership plus, which ensures that the company can change the annual membership fee (Banister and Button 2016). With the help of such usage, the additional fees can be altered and increase the value of the transport services. The sharing economy model introduces the back-end platform under the brand and license of other companies (Lee et al. 2016). Along with such service, Uber can offer some of the basic services to the users as the additional benefits associated with exclusive features (Owyang, Tran and Silva 2013). Offering such facilities would be much beneficial in generating the positive response from the Uber users. The major comparison between the traditional business model and the current business model is the improved technological uses (Sundararajan 2014). The service fee in the current business model is quite less than the traditional collaborative economy model. The minimal amount of the service fee is quite affordable to the passengers due to which the providers can earn more revenues. Therefore, it can be suggested that the development of the current business model would be much beneficial for the transport industry, especially for Uber. Providing the effective facilities and services to the users will be helpful in generating the positive experience. The positive word of mouth would attract more users for availing such innovative transport services. The application of such business strengthens the competitive edge of the company by ensuring the string consumer base. This instant transport services are saving the time at minimal cost due to which people prefer the service even at the emergencies (Lee et al. 2016). Moreover, the innovative facilities are contributing to the current demands of the sophisticated facilities as per the expectation level of the community people. Regardless to the alternative consequences, the services are efficiently improving the current method of using the instant transport services. Seeking the proper help from the government will also secure the competitive edge in current business market. Unintended Consequences of the Success of the Model In spite of such facilities generated from such services, some of the unintended consequences are also becoming much visible. It has been noticed that incurring the costs from the service facilities is decreasing the government revenues. Hence, there is the possibility of lack of adequate governmental supports in future (Ferrari 2016). It can be predicted that some of the regulatory aspects may affect the future of such services. On the other hand, it can also be interpreted that such transport services are increasing revenues, which are more beneficial for the service providers than the companies (Lee et al. 2016). The company directly cannot earn more revenues from the service users. The percentage of the service providers is much higher. Apart from such consequences, it has been seen that emergence of such facilities have transformed the form of capitalisms (Martin 2016). The existing transport services, such as taxi services can be abandoned for keeping the prices higher. When th e customers are receiving the expected transport services at reasonable rate from such innovative services, they tend to ignore paying to the taxis. Hence, it will be the unintended consequences for every taxi drivers in Australia. In such cases, it is necessary for the government to pay fruitful attention towards policies implemented on the transport industry. The availability of the proper transport systems would be much demanding to the users all across the country. Conclusion The study highlights the major consequences for the use of the transport services in an innovative way. It has been noticed that the use of the traditional business model was quite expensive for the Australian people who use the taxi services much frequently. The sharing economy in the Australian transport industry is much helpful for saving the taxi bills and increasing the employment rates. Introducing the new business model is specifying some of the changes in technologies and facilities that are attractive for the service users in Australia. The study identifies the advantages and the disadvantages associated with such emerging transport services in Australia. The major comparison between the traditional business model and the current business model is the improved technological uses. The service fee in the current business model is quite less than the traditional collaborative economy model. The changes in the form of capitalism through the Collaborative Economy in transport ser vices would ensure the innovative process in current business market. Uber has been moving forward to capture such value added services for securing the competitive edge. The supports from the government would be necessary in determining the sustainability of such transport services for long run. References Allen, D., 2015. The sharing economy.Review-Institute of Public Affairs,67(3), p.24. Banister, D. and Button, K. eds., 2016.Transport in a free market economy. Springer. Cannon, S., and Summers, L. H. (2014). How Uber and the Sharing Economy Can Win Over Regulators. Harvard Business Review, 13. Cusumano, M. A. (2015). How traditional firms must compete in the sharing economy. Communications of the ACM, 58(1), 32-34. Evangelista, P., 2014. Environmental sustainability practices in the transport and logistics service industry: An exploratory case study investigation.Research in Transportation Business Management,12, pp.63-72. Ferrari, M.Z., 2016. Beyond Uncertainties in the Sharing Economy: Opportunities for Social Capital.European Journal of Risk Regulation,7(4), pp.664-674. Hamari, J., Sjklint, M., and Ukkonen, A. 2015. The sharing economy: Why people participate in collaborative consumption. Journal of the Association for Information Science and Technology. Johnston, A. and Huggins, R., 2016. The Spatio-relational nature of urban innovation systems: Universities, knowledge intensive business service firms, and collaborative networks.Journal of Urban Technology,23(1), pp.29-52. Kinnear, S., Rose, A. and Rolfe, J., 2015. Emissions reporting in the Australian road freight transport sector: is there a better method than the default option?.International Journal of Sustainable Transportation,9(2), pp.93-102. Lee, Z.W., Chan, T.K., Balaji, M.S. and Chong, A.Y.L., 2016, June. Technology-mediated sharing economy: Understanding user participation in collaborative consumption through the benefit-cost perspective. InProceedings of the 20th Pacific Asia Conference on Information Systems (PACIS). Martin, C.J., 2016. The sharing economy: A pathway to sustainability or a nightmarish form of neoliberal capitalism?.Ecological Economics,121, pp.149-159. McCormick, K., Neij, L., Mont, O., Ryan, C., Rodhe, H. and Orsato, R., 2016. Advancing sustainable solutions: an interdisciplinary and collaborative research agenda.Journal of Cleaner Production,123, pp.1-4. McRostie, S., 2017. App-based companies in the gig economy.Proctor, The,37(2), p.34. ohen, B., and Kietzmann, J. (2014). Ride on! Mobility business models for the sharing economy. Organization Environment, 27(3), 279-296. Owyang, J., Tran, C. and Silva, C., 2013. The collaborative economy.Altimeter, United States. Rifkin, J., 2014.The zero marginal cost society: The internet of things, the collaborative commons, and the eclipse of capitalism. Palgrave Macmillan. Rubin, T.H., Aas, T.H. and Stead, A., 2015. Knowledge flow in technological business incubators: evidence from Australia and Israel.Technovation,41, pp.11-24. Sundararajan, A., 2014. Peer-to-peer businesses and the sharing (collaborative) economy: Overview, economic effects and regulatory issues.Written testimony for the hearing titled The Power of Connection: Peer to Peer Businesses, January.

The Old Man And The Sea Essays - The Old Man And The Sea

The Old Man And The Sea The Old Man and the Sea is a heroic tale of man's strength pitted against forces he cannot control. It is a story about an old Cuban fisherman and his three-day battle with a giant Marlin. Through the use of three prominent themes; friendship, bravery, and Christianity; the Old Man and the Sea strives to teach important life lessons to the reader while also epitomizing Santiago, the old fisherman, as a Hemingway code hero. The relationship between Santiago and the boy is introduced early in the story. They are unlikely companions; one is old and the other young, yet they share an insuperable amount of respect and loyalty for each other. Santiago does not treat Manolin as a young boy but rather as an equal. Age is not a factor in their relationship. Manolin does not even act as a young boy; he is mature and sensitive to Santiago's feelings. He even offers to disobey his parents and accompany Santiago on his fishing trips. Santiago is viewed as an outcast in his village because he has not caught any fish for more than eighty-four days and is therefore unlucky. Nonetheless Manolin is loyal to Santiago and even when his parents forbid him he wants to help his friend. Their conversations are comfortable, like that of two friends who have known each other for a long time. When they speak it is usually about baseball or fishing, the two things they have most in common. Their favorite team is the Yankees and S antiago never loses faith in them even when the star player, Joe DiMaggio is injured with a heel spur. In this way Santiago not only teaches Manolin about fishing but also about important characteristics such as faith. In the story Santiago's bravery is unsurpassed but it is not until he hooks the great fish that we truly see his valor and perseverance. Through Santiago's actions Hemingway teaches the reader about bravery and tenacity in the face of adversity. He demonstrates that even when all is lost and seems hopeless a faith and willful heart will overcome anything. Santiago had lost his luckiness and therefore the respect of his village. Through the description of his cabin we also suspect that Santiago is a widower. Although Santiago has had many troubles he perseveres. He has faith in Manolin, in the Yankees, in Joe DiMaggio, and most importantly in himself. This is perhaps his greatest attribute because without it he would never have had the strength to persevere and defeat the giant Marlin. Faith is not the only thing that drives his perseverance. Santiago also draws upon his past victories for strength. After he hooks the Marlin he frequently recalls his battle with a native in what he calls the hand game. It is not just an arm wrestling victory for him it is a reminder of his youthful days. His recollections of this event usually proceed a favorite dream of his in which he sees many lions on a peaceful shore. These lions represent him when he is young and strong and could overcome any challenge. Although he is an old man and his body is no longer like it used to be his heart is still great and he eventually defeats the Marlin. Santiago's perseverance and bravery are further illustrated when he tries to fight off the sharks. He was a fisherman all his life and therefore he knows that the fate of his catch is inevitable yet he persists to fight the sharks. The battle between him and the sharks is about principles not a mere fish. Santiago is still a great warrior at hea rt and warriors fight until the end. One of the greatest and most obvious pieces of symbolism in the story is Christianity. From the beginning of the story the reader is shown a unique relationship between Santiago and Manolin. Their relationship parallels that of Christ and his disciples. Manolin is Santiago's disciple and Santiago teaches Manolin about fishing and life. One of the greatest lessons that Santiago gives is that of a simple faith. Have faith in the Yankees my son. This type of faith reflects the basic principles of Christianity. Hemingway's

Macbeth Text Response Essay Example

Macbeth Text Response Essay Example Macbeth Text Response Essay Macbeth Text Response Essay Macbeth Text Response This deed, the murder of King Duncan, has unanticipated consequences for both Macbeth and Lady Macbeth. Discuss Macbeth, by William Shakespeare explores the theme of power, sleep and guilt. For Macbeth and Lady Macbeth to be able to be on the throne and fulfill the prophecy, they need to murder Kind Duncan. Unfortunately, Macbeth and Lady Macbeth didn’t think of the unanticipated consequences of committing the murder. The consequences that they are faced with include guiltiness, lack of sleep and broken relationships. The murder of King Duncan comes after Macbeth has heard the prophecies made by the witches. He was told that he will not only be Thane of Cawdor, but King of Scotland. Macbeth and Banquo discuss about the witches, and the latter believes that the witches are evil and tells Macbeth to beware of the prophecies. However, when Ross arrives to confirm the news that Macbeth is now Thane of Cawdor, he is willing to fulfil the witches’ prophecy to be king and starts thinking about the murder of King Duncan. ‘I am Thane of Cawdor. If good, why do I yield to that suggestion Whose horrid image doth unfix my hair And make my seated heart knock at my ribs, Against the use of nature? Present fears Are less than horrible imaginings. My thought, whose murder yet is but fantastical,’ (Act 1, Scene 3, Lines 145-151, Pg 19) Macbeth sends his wife a letter detailing the encounter with the witches and about the prophecies they made. Lady Macbeth, also willing to be on the throne, immediately resolves to have Duncan killed to fulfill the prophecy. ‘The raven himself to hoarse That croaks the fatal entrance of Duncan’ (Act 1, scene 5, lines 41, 42, Pg 24) That my keen knife see not the wound it makes’ (Act 1, Scene 5, line 55, pg 24) Macbeth arrives at the castle and announces that Kind Duncan will be there soon. Lady Macbeth and Macbeth begin to plot the assassination of the king. The latter arrives at the castle and is welcomed by Lady Macbeth. Macbeth debates whether or not he should kill Duncan, and after coming up with two strong arguments against the deed, he decided to go no further with it. ‘He’s here in double trust as I am his kinsman and his subject’ (Act 1, scene 7, Pg 28 lines 12, 13). ‘ s his host, who should against his murderer shut the door, not bear the knife himself’ (Act 1, scene 7, pg 28 lines 14-16). However, when Lady Macbeth reproves him for his cowardice, he responds, â€Å"I dare do all that may become a man/ who dares do more is none’ (Act 1, scene 7, pg 29 lines 50, 51), and he is convinced to go through with the plan. On the night of the assassination, Macbeth sees an imaginary dagger, leading him to Duncan’s chamber; the path to his destiny. He commits the murder and return to his chamber where Lady Macbeth is waiting for him. They both return back to bed to make it appear that they had been sleeping. Macbeth and Lady Macbeth wanted power and to fulfill the prophecy. They were ready to do anything to be on the throne. Macbeth fails his duty of being a kinsman and protecting the king. Instead, Macbeth kills him. The unexpected consequences are that Macbeth has ruined his relationship with King Duncan who has done nothing but good to Macbeth. Macbeth breaks Duncan’s trust and deceives him. Lady Macbeth is very determined to be on the throne and to carry out the prophecy. After the murder of King Duncan, she realises that the throne has not resulted in happiness or peace of mind. Nought’s had, all’s spent, Where our desire is got without content. ‘Tis safer to be that which we destroy Than by destruction dwell in doubtful joy† (Act 3, scene 2, lines 6-9 pg 58) Lady Macbeth’s relationship with Macbeth deteriorates and they become further apart. Lady Macbeth is always questioning Macbeth’s manhood, ‘ to be more than what you were, you would/ be so much more the man’ (Act 1, scene 7, lines 55, 56 Pg 29), and forcing him to make decisions he doesn’t want to make. Therefore, Macbeth doesn’t consult his wife before killing Banquo and Fleance. Lady Macbeth starts to sleep-walk and talk in her sleep for several nights. During her sleepwalking, she reveals the details of the murders for which she and Macbeth have been responsible for. ‘I tell you again, Banquo’s buried. He cannot come out on his grave. ’ (Act 5, Scene 1, pg 94 lines 44-46). Lady Macbeth wants to undo the death of Duncan; change the past but she knows that she can’t. ‘What’s done cannot be undone’ (Act 5, scene 1, pg 92, lines 56-60). She sees blood on her hands, but she cannot remove the imaginary ere blood, ‘out damned spot! Out I say! ’ (Act 5, scene 1, pg 92, line 30). She cannot remove the smell of blood ‘here’s the smell of the blood still. / All perfumes of Arabia will not sweeten this little hand’ (Act 5, scene 1, pg 92, lines 43, 44) Lady Macbeth’s sleepwalking shows that she can’t escape her guilty conscience even when she is sleeping. The significance of Lady Macbeth’s hand washing is that she can’t remove the guilty thought of the murder of Duncan. Lady Macbeth eventually ends her own life, which is an unanticipated event. The guilt and sleepwalking are the unanticipated consequences that Lady Macbeth faces after the murder of Duncan. Macbeth also suffers from unanticipated consequences. He always has guilty conscience and he goes mad. He feels remorse after killing Duncan. ‘To know my deed, ‘Thwere best not know myself. Wake Duncan with thy knocking! I would thou couldst! ’ (Act 2, scene 2, pg 40 lines 88-91) Macbeth suffers from sleep deprivation which shows he feels guilty for doing the deed. His lack of sleep had also made him unable to make clear decisions. Macbeth is so determined to become King that he kills everyone who got in his way. Macbeth kills his companion and friend, Banquo, which he didn’t anticipate to do. He also murders Macduff’s family which was more brutal and violent compared to the murder of Duncan. This shows that Macbeth’s state of mind was a lot worse when he killed Macduff’s family. Macbeth goes insane and he sees Banquo’s ghost at a dinner gathering. Eventually, he realises that killing Duncan didn’t bring him happiness. He feels like he has nothing to look forward to in his future. ‘I have lived long enough. My way of life Is fallen into the sere, the yellow leaf, And that which should accompany old age, As honour, love, obedience, troops of friends, I must not look to have. ’ (Act 5, scene 3, Pg 98 lines25-29) Macbeth is eventually killed by Macduff because he is born of a woman. This is another unanticipated event that occurs. The murder of King Duncan brought unanticipated consequences such as guilt, sleep deprivation and death. Both Macbeth and Lady Macbeth showed regrets for committing the deed and the dream of ultimate power; being on the throne, became too big to save them from madness. The murder was an anticipated, calculated action from them, but they didn’t predict the outcome of their horrible life affecting plan.

The Importance of Being Earnest Review

'The Importance of Being Earnest' Review ​​The Importance of Being Earnest is Oscar Wildes most well-known and best-loved play, as well as being an enormous success in his lifetime. For many people, it is the apogee of Wildes work. Like Wilde, the play is the very embodiment of fin de sieclà © British dandyism. However, this seemingly frivolous play has a much darker side. Its critique of Victorian societythough delivered in a velvet gloveis every inch an iron fist. The play is a satire both of the hypocrisies of the society in which Wilde lived, and the damaging effect that these hypocrisies can have on the souls of those live under their rule. Wilde was to become one of those souls shortly after the first performance of the play when he initiated a libel trial that was to lead to his imprisonment for being a homosexual.​ Overview ofThe Importance of Being Earnest The play is based around two young men, one of whom is an upright young man called Jack who lives in the country. However, in order to escape the drudgery of his highly conservative lifestyle, he has created an alter-ego, Ernest, who has all kinds of reprobate fun in London. Jack says he often has to visit his poor brother Ernest, which gives him his opportunity to escape his boring life and have fun with his good friend, Algernon. However, Algernon comes to suspect that Jack is leading a double life when he finds a personal message in one of Jack’s cigarette cases. Jack makes a clean breast of his life, including the fact that he has a young and attractive ward by the name of Cecily Cardew back on his estate in Gloucestershire. This piques Algernons interest and, uninvited, he turns up on the estate pretending to be Jack’s brotherthe reprobate Ernestin order to woo Cecily. In the meantime, Jacks fiancà ©e, (and Algernons cousin) Gwendolen has also arrived, and Jack admits to her that he is, in fact, not called Ernest, but is called Jack. Algernon, despite his better judgment, also confesses to Cecily that his name is not Ernest either. This causes a good deal of trouble in our heroes love lives, as both women have a rather strange attachment to the name Ernest, and cannot consider marrying anyone who does not go by that name. There is another impediment to the marriages. Gwendolens mother, Lady Bracknell, will not countenance her daughter marrying someone of Jacks social status (he was an orphan who was found by his adoptive parents in a handbag at Kings Cross Station). As Jack is Cecilys guardian, he will not allow her to marry Algernon unless his aunt, Lady Bracknell changes her mind. This seemingly irresolvable conundrum becomes brilliantly solved when, on inspection of the handbag, Lady Bracknell reveals that Algernons brother had become lost in just such a handbag and that Jack must, in actuality, be that lost child. What’s more, the child had been christened Ernest. The play ends with a prospect of two very happy marriages. The Importance of Being Earnest combines a labyrinthine plot, the seemingly irresolvable narrative of a farce, and some of the most comic and wittiest lines ever written. It is, as can probably be surmised from its extraordinary to-ings and fro-ings and its incredibly unlikely resolution, is not to be taken as a serious drama. Indeed, the characters and the setting lack any real depth; they are, first and foremost, vessels for Wilde’s witticisms lampooning the shallow and roots-obsessed society in which he lived.   However, this is not to the plays detriment – the audience is treated to some of the most sparkling verbal wit ever seen. Whether luxuriating in paradox or simply in the ridiculousness created by the plot that Wilde has set in motion, the play is at its best when it is portraying supposedly serious things in an extremely trivial matter.   However, this seeming piece of fluff is enormously influential and is actually a destructive critique of the social mores of the times. The emphasis that is put in the play on surfacesnames, where and how people were brought up, the way that they dressbelies a yearning for something which is more substantial. Wilde can be credited, by producing a piece of polished decadence, with contributing to the destruction of a class-based, surface-obsessed society. Wildes play seems to say, look beneath the surface, try and find the real people stifled beneath social norms. Brilliant, inventive, witty andwhen performedabsolutely hilarious, Wildes The Importance of Being Earnest, is a landmark in the history of Western theater, and probably that writer’s greatest achievement.

Environmental Politics Essay Example | Topics and Well Written Essays - 2500 words

Environmental Politics - Essay Example Environmental politics can also play an important role in global governance by finding new ways to hold individual governments responsible for their polluting activities. Turner explains this phenomenon in his article on measuring the carbon footprint. He argues that recent approaches towards measuring carbon footprints can be a useful means of assessing the responsibility of each state for reducing and controlling carbon emissions within their jurisdiction. Furthermore, the new measures also provide greater opportunity for deeper engagement and collaboration between states to develop strategies for reducing carbon emissions in various countries.Despite the promises of environmental politics bringing about greater cooperation, the reality also presents a picture characterized by disagreement and conflict. These fears are described by Skjaerseth, Bang, and Schreurs. The authors chart the course of environmental protection negotiations between the United States and the European Union a nd highlight the obstacles which have prevented a global consensus on emission reduction and climate change. Their findings show that environmental politics can only be an effective test of global governance to the extent that there is congruity or integration between the legislative organs and environmental bodies of the member states. If there is a contradiction between the ideals of environmental politics and what global environmental organizations are empowered to do, then productive results cannot be achieved.

Strategic performance management. John Hackling Transport Limited Assignment

Strategic performance management. John Hackling Transport Limited - Assignment Example The study seeks to bring forth the present performance management system and its effectiveness in a haulage company called John Hackling Transport Limited based in England. The company is known for being one of the best haulage companies in England. It has strategically located its depots, traffic and warehousing facilities at lucrative positions across the major cities providing easy and quick access for its main transport routes and its customers too. Comprising of a vast portfolio of customers, comprising of the national international and local companies from different sectors of the economy, the company has successfully delivered to the demands of all its customers over the years. The project begins with the discussion as to how the company sets performance targets as per the strategic objectives of the firm, which is followed by the tools and techniques needed evaluating performances of employees. The various performance criteria which are used for measuring performances are pre sented. In this context the various ways and importance of gaining employee commitments towards desired actions are discussed. Finally the importance and use of delegation, mentoring and coaching for the attainment of organizational objectives are presented in the project too. ... Performance Management System Link between team performance and strategic objectives of the company The first step towards building an effective performance management system is to prioritise the business objectives of the firm and consequently set performance targets with regards to the company as well as individual employees. The strategic objective of the company is to emerge as the top haulage company is UK through its wide diversity of services to customers. The idea is to deliver quality services towards customers with the maximum efficiencies and help them build profitable businesses (Hackling, 2011). The importance of team performance and activities are identified by the company as it is extremely crucial to have group performances and collaboration between team members to deliver services at different locations distributed at distant places across the nation and even in overseas locations. Some of the areas which necessarily require effective team performance and productivit y are logistic services, distribution and logistics, storage and warehousing, freight forwarding, pallet line backloads as well as training and consulting. Some of the necessary links between team performance and the strategic objectives of the company are provided below (Hackling-a, 2011). Because of the existence of a wide range of hauling services which are also provided under a single proof, the company needs to ensure that there is complete reliability, flexibility and convenience in the services provide to customers. This means that in a single service delivery a number of departments come into play and this increases the necessity and possibility of group activities and team work. Team work is also needed for ensuring reliability of local deliveries

Internal External Balance Essay Example for Free

Internal External Balance Essay When all you have is a hammer, everything looks like a nail. Bernard Baruch In review of trade policy best suited for our Nation it is time for an overhaul and start developing a more complete toolbox. As Kevin Kaiser so poignantly stated in his article in CNN Money: â€Å"The economists that make the worlds crucial monetary policy decisions are the same economists who authored most textbooks in use. While superficially appealing, their theories lack empirical evidence, are riddled with internal inconsistencies, and are based upon tenuous assumptions. Specifically, their models are built on downward sloping demand curves, upward sloping supply curves, perfect competition, rational consumers, benevolent dictators, and general equilibrium; there is no dynamic analysis, no consideration of disequilibrium, and no role of private sector debt† (Kaiser, 2011). The policy cross as shown to the left indicates that as e increases m decreases, and current account improves. To offset this, an increase in g is required. The EE curve is positively sloped in the (e,g) space. An internal equilibrium is attained when the output is at the full employment level thereby raising the interest rate. Moreover, because the economy is fully employed, real output cannot increased beyond a point. Thus, an increase in inflationary pressure occurs, thereby raising domestic price, which shifts the LM curve to the left. Thus, along the IE curve, government spending and interest rate are directly related. As a Post Keynes-Industrialist, the tendency to lean towards comprehensive human market behaviors and interdependent structural issues makes developing a one-size-fits-all policy, such as the policy cross, for internal and external balance a challenge. This is particularly true when evidence for any one theory to-date has not proven to be exact and reliable. Capitalism is fickle, and doesn’t follow slopes as neatly as theorists would like and the global shocks being felt around the world are keeping the economic status of all countries anything but predictable. Paul Krugman wrote an article for The New York Times that explained, â€Å"at the heart of the profession of economics’ failure has been its emphasis on rigor, rather than relevance—that is, economics had been weakened by the desire for an all-encompassing, intellectually elegant approach that also gave economists a chance to show off their mathematical prowess. He offered two recommendations in addition to again making the case for renewed attention to Keynes: scholarship that questions the efficient-market view of the financial sector, and research that incorporates the realities of finance into macroeconomics† (Krugman, 2009). For the purposes of this paper however, it would be recommended that a floating exchange rate be proposed for the following reason: The challenge of fiscal and monetary policies to keep equilibrium could be comparative to eyeballing mass versus weight of internal and external spending and determining which is more relevant at any given time. While a cleanly floating exchange rate assures external balance, it does not assure internal balance and changes in the rate to achieve external balance may exacerbate and internal imbalance. Government monetary and fiscal policies may be used to address internal imbalances at this point with a floating rate structure. â€Å"The following graph can assist in understanding the impacts of booms and recessions on internal and external balances.†(Johnston, M. 2011). For example, the bottom left-hand shows the effects of exports being less competitive, which reduces the number of exports and induces a current account deficit and lower aggregate demand. Currently, the US has a well-known financial problem with a large trade deficit every year. â€Å"It seems many ignore this issue since our debts tend to be denominated in our domestic currency, the dollar.† (Kling, A. para 6). The most recent news release for second quarter 2012 on the Bureau of Economic Analysis states, â€Å"the US current-account deficit decreased to $117.4 billion (preliminary) in the second quarter from $133.6 billion (revised) in the first quarter. The decrease in the current-account deficit was accounted for by a decrease in the deficit on goods and an increase in the surplus on income.†(Bea.gov, Sept 18, 2012 ). This would indicate a small shift in the left lower quadrant just slightly contracting, but very little overall. However damning the current financial situation is, the floating exchange rate remains the better choice as argued in Global Business Today, â€Å"Under a fixed system, a country’s ability to expand or contract its money supply as it sees fit is limited by the need to maintain exchange rate parity, leading to high interest rates† (Hill, 2011). â€Å"Another reason is the because the real exchange rate fundamentals including terms of trade, import tariffs, technology progress, composition of government expenditures and revenues, real interest rate and capital controls are always in flux† (Wong, C. p. 7). When the exchange rate is flexible, in fiscal expansion either government expenditure increases or tax cuts raises output, but worsens current account balances. Conversely, fiscal contraction improves current account balances, but lowers output. If the economy attempts to attain both internal and external balance it could consider expenditure switching, but alone this will be inadequate. â€Å"For example, if an economy is at the full employment level, i.e., internal balance is already attained, but if it is running current account deficits, policy makers in the economy could devalue its currency so that net exports rise. However, the improvement of current account balances would lead the economy to experience over-heating so that internal balance would disappear. If an economy is experiencing an inflationary gap, or over-heating, while maintaining balanced current account, a revaluation policy may reduce total expenditure back to the full employment level, but lead to current account deficits† (web.pdx.edu, para 5). Therefore, changing how we currently think may be necessary to achieve both internal and external balances. Economics has been referred to the dismal science but as Kaiser states, â€Å"True sciences expand and evolve: genetics, psychology, quantum mechanics, astronomy. Economics defends itself – it is an ideology. What we need is an economic theory that is more relevant to a modern capitalist economy – one that embraces uncertainty and disequilibrium, is grounded upon realistic assumptions, is judged by the accuracy of its predictions, and where debt and money are implicit, important factors.† (CNN Money, 2011). References Hill, H. (2011). Global Business Today. New York: New York McGraw-Hill Kaiser, K. (December 16, 2011) Its time for economic theory to evolve. CNN Money. Retrieved on December 14, 2012 from http://finance.fortune.cnn.com/2011/12/16/its-time-for-economic-theory-to-evolve/ Johnston, M (October 8, 2011). AS and A2 Macroeconomics: Internal and External Balances. Econofix. Retrieved on December 12, 2012 from http://econfix.wordpress.com/2011/10/08/as-and-a2-macroeconomics-internal-and-external-balances/ Kling, A. (2004). The trade balance. Retrieved on December 13, 2012 from http://arnoldkling.com/econ/macro/trade.html Krugman, P (2009). â€Å"How Did Economists Get It So Wrong?† The New York Times, September 2. Retrieved on December 14, 2012 from http://www.nytimes.com/2009/09/06/magazine/06Economic-t.html News Release: US International Transactions. Retrieved on December 14, 2012 from http://www.bea.gov/newsreleases/international/transactions/transnewsrelease.htm Wong, C-H. Adjustment and the Internal-External Balance. Retrieved on December 14, 2012 from http://rbidocs.rbi.org.in/rdocs/content/pdfs/L-1b.pdf World Economy Expenditure Changing Retrieved on December 14, 2012 from http://web.pdx.edu/~ito/Expenditure_changing_switching_RE_-HI.pdf

Simon as the Christ Life Figure in The Lord of the Flies Essay

The Lord of the Flies was written by William Golding. Simon is one of the major characters in this novel. Simon’s character lives by what is morally right as opposed to the rest of the island. Simon represents essential human goodness. There are many biblical parallels in the Lord of the Flies that result in Simon being compared to Christ.   Ã‚  Ã‚  Ã‚  Ã‚  One reason Simon is regarded as the Christ figure in Lord of the Flies is that he commits many selfless acts just like Jesus Christ did. Simon chooses to stay and help Ralph build huts rather than go play with the other inhabitants. Ralph compliments Simon by saying â€Å"Simon. He Helps. All the rest rushed off. He’s done as much as I have† (54). Golding also illustrates Simon’s generosity when â€Å"Simon pulled off the choicest fr...

Earning Management

Does the Commercial Banking Industry of UAE Practice Earnings Management Dr. Mohammed Obeidat Introduction It is the right of external users of accounting information to be provided with more adequate information to protect their interests. Many questionable issues concerning the term of earnings management are still available. Auditors, accountants, financial analysts, and other concerned parties may hold the responsibility of detecting external users from the practices of earnings management. Many questionable issues are still available regarding the term of earnings management.Some people may have no enough idea about what practices are classified under earnings management, and what practices can not be classified under this term. Users of accounting information are different but few of them have the ability to detect the practices of earnings management. Because there are different methods of practicing earnings management, detecting the practices of earnings management is one of the difficult issues. The common practice of earnings management by firms and the negative effects of these practices on external users of financial accounting information justify the investigation of this issue.Many users may lose some of their wealth as a result of practicing this phenomenon. Many financial crises appear in our world from time to time, and some reasons of these crises are related to incorrect announced financial information. The problem of the current study will be simpler, if it is presented through the following question: How investors can detect the practices of earnings management, in order to have the ability to protect themselves from the negative effects of these practices?The answer to this question may seem more difficult, so the current study present an example from the Commercial Banking Industry of the United Arab Emirates (UAE). Studying the phenomena of practicing earnings management is important, because this will highlight why managers may practic e this phenomenon. Many incentives may be available to managers and promote them to practice earnings management. These incentives will be highlighted later on in the current study, but when investors are knowledgeable with some of these incentives, they can consider and analyze the financial information of their entities more.Moreover, when users are aware with the methods that are followed by managers to practice earnings management, they will be more eligible to detect these practices. The current study will explore the most available methods of practicing earnings management. The importance of the current study is increased, because it highlights how investors can determine whether there is a practice of earnings management or not. The objectives this study is looking to achieve are as follows: 1. To highlight the incentives standing behind the practice of earnings management by managers. 2.To inform users about the methods available to firms' management to manage the earnings. 3. To determine the qualitative and quantitative available procedures that can be used to detect the practices of earnings management. 4. To determine whether the Commercial Banking Industry of UAE practices or does not practice the phenomenon of earnings management. 5. In a case of earnings management is detected, this study aims to detect whether these practices were upward or downward practices. Our study makes a unique contribution to the literature by using data from the announced financial statement of Commercial Banking Industry of UAE.This study differs from the prior studies in its location, methods, objectives, and nature of data used in the analysis. Because the current study involves the commercial banks of ABU Dhabi, and because all of these commercial banks are listed in Abu Dhabi Stock Market, this study is unique in its location. Just few studies outside Abu Dhabi followed quantitative method to investigate whether there are practices of earnings management or not, t he current study is also different from other prior researches.This study depends on cross sectional data because a time series data will misstate the data, so it is unique in its inputs of data. This paper is organized as follows: The first section defines earnings management, and describes the incentives of its practices by commercial banks, in addition to that, it explores the methods of practice and how these practices can be defected. The second section explores the most related prior researches. The third section presents the hypotheses of the current research. The fourth section describes the followed methodology in the current study.The fifth section presents the results, while the fifth explores the findings. Literature Review and Prior Researches Many people believe that the term of earnings management is understandable in its simple form, but most of those unable to determine whether a selected practice is an earnings management or not. Understanding what earnings managem ent constitutes and why it takes place is important for all users of accounting information. This study highlights the different aspects of earnings management, so it identifies clearly this term, and presents the incentives standing behind its practice.Moreover, the current study determines the methods of earnings management used by firms, and explores how these practices can be detected. Earnings management is defined as the â€Å"intentional misstatement of earnings leading to bottom line numbers that would have been different in the absence of any manipulation (Mohanram, 2003). Based on this definition, the practice of earnings management is an intentional behavior, and if this practice occurs unintentionally, it can not be classified under the practices of earnings management.Moreover, this definition states that the practice of earnings management phenomenon leads to users' misstatement. In other words, practitioners of earnings management have different purposes and they cha nge some accounting numbers to affect users in order to achieve these objectives. Healy and Wahlen (1999) state that earnings management â€Å"occurs when managers use judgment in financial reporting and in structuring transactions to alter financial reports to either mislead some stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reporting accounting numbers†.This definition states that this practice is also intentional and purposeful. This definition mentions that contractual issues are incentives for managers to manage earnings. But we have to remember Some concerned people believe that earnings management mean upward manipulation. Actually, earnings management may be exercised either upward or downward. In most cases, the target of earnings determines to a large degree, whether the management of the firm practices earnings management upward or downward.Some people also believe that the all the practice of earnings management are illegal, and no legal practice exists. Actually, there are different practices of earnings management do not violate the generally accepted accounting principles (GAAP). For example, speeding the size of sales during the last month or the fourth quarter is in agreement with the GAAP. Moreover, activating sales during the last month of the accounting period through granting discounts to customers is also in agreement with the GAAP, and is not a violation to the accounting standards.There are different incentives to managements of firms to practice the phenomenon of earnings management. Most of these incentives are related to benchmarks of earnings. Sometimes, the previous period's performance may be the benchmark to the firm. In other cases, the benchmark to the firm may be the expectations of financial analysts. The promised compensations to the firm's management may be the most important incentive of the practice of earnings management. Benchmarks are ne cessary for the determination whether the management deserves or does not deserve the promised compensation.Sometimes, the desire of the firm's management to increase the stock market price may also be one among the incentives to earnings management, especially, when the management is looking for more compensation. The normal positive relation between earnings and stock market price means that as the amount of announced earnings increases, the common stock market price is also increases. Therefore, when a desire exists to the firm's management to affect the common stock market price, the management will manage its earnings. Reducing the amount of income tax may also be one among the incentives of practicing earnings management.In many countries, business entities are subject to high income tax rates, where different categories of expenses are deducted from the income. When these entities are looking toward reducing the amounts of taxes, they practice the phenomenon of earnings manag ement. The practice of earnings management in this case may be through increasing the amounts of tax deductions, or through the decreasing the amounts of earnings. Sometimes, firm's management may manage earnings to simplify the issue of receiving credits from banks and other financial issues.In addition, firms may also manage earnings to reduce the cost of this credit, because when earnings are reasonable, the firm can receive credit smoothly without such obstacles, and at lower costs, but when the firm's earnings are unreasonable, this firm will face many obstacles to receive credit, and it may receive credit at higher costs. These are some of incentives or reasons of the practice of earnings management, but other incentives may be available to some firms, depending on the financial conditions of the firm's management itself.Managements of firms can follow different methods to manage earnings. Changing the assumptions for accounting standards is one of the most common used methods in managing earnings. It is already known that the GAAP are highly flexible, so managements can employ the high degree of flexibility available in these standards. Examples of this flexibility are the inventory flow methods which managements can use one among these, and the available options to depreciate some of the firm's assets, in addition to these; firms can review the assumed lives of these depreciable assets.As a result a variety of options are available to management whenever a desire to manage earnings exists. Managements can manage earnings through the determination to the bad debts provisions. For example, whenever there is a need to announce earnings higher than its actual value, management can determine these bad debts at amounts lower than their actual, while it can announce lower amounts of bad debts whenever there is a need to reduce the announced income. Managing transaction is one among the available options to management when there is a desire to manage earnings. For instance, management can grant high discounts during the last few days of the accounting period to recognize more revenue through sales under the accrual basis. One option is available to managements of firms is to activate sales or services during the last days of accounting period through the adoption to more sales on credit, and through longer period of payment are given to customers. Two approaches are available to detect the phenomenon of earnings management. The first is qualitative, while the second is quantitative approach.Using the two approaches together when this possible leads to more certain conclusions whether a firm or a group of firms manage earnings. Several steps have to be followed when there a need exists to detect earnings management through the qualitative methods. These steps are presented below: (Mohanram, 2003). 1. Identifying the key accounting policies of the firm or industry. Regarding the industry of the current research, the issues of credit risk an d interest rate risk are of crucial importance to banks. 2. Assessing the firm's accounting flexibility.The level of accounting flexibility may be high to some firms or industries, whereas, it may be low to other firms and industries. 3. Evaluating the firm's accounting strategy, and determining how this strategy differs from other competitors. 4. Assessing the firm's quality of disclosure. 5. Identifying the potential red flags. The following is an example of red flags: |Unexplained accounting changes, especially when performance is bad. | |Unexplained profit boosting transactions, such as sale of assets. | |Unusual increase in accounts receivable in relation to sales increase. |Increasing gap between net income and cash flow from operations. | |Increasing gap between net income for reporting and tax purposes. | |Unexpected large asset write-offs or write downs. | |Large fourth quarter adjustment. | |Qualified audit opinion or change in auditors. | |Large related party transactions . | 6. The final step is to undo accounting distortions by reversing out the impacts of dubious accounting wherever possible. Earnings management can be also detected analytically, based on the firm's accruals, which can be defined as the difference between net income and cash flow operations.In occasion, firms with high level of accruals are likely to have inflated earnings. Firms practice the phenomenon of earnings management can be determined through segregating discretionary accruals from non-discretionary accruals. In this case, Jones (1991) model can be used to segregate discretionary from non-discretionary accruals. In the current study we use this model to determine whether, or not, the Commercial Banking Industry practices the phenomenon of earnings management. This model is presented below:Where total accruals can be computed by finding the difference between income before extraordinary items and cash from operations in year t. Revenuest is revenues in year t, while revenu est-1 is the revenues at the end of year t-1. Total assetst-1 is total assets of year t-1. Gross PPEt is gross property, plant, and equipment at the end of year t, and B1, B2, and B3 are industry and year specific parameters to be estimated. The residual value in Jones's Model is the discretionary accruals for a firm in a given year, while the fitted value gives an estimate of the non-discretionary component of earnings.Researchers in the accounting literature have often focused on earnings management. Many researchers studied the issue of earnings management; most of these are focused in the Western or Far East Countries. A study titled † earnings Management: Do Large Investors Care? † and carried out by Senteza, Njoroge, and Gill (2005), deserves to be mentioned in the current study. This study mentions that institutional investment activity and behavior is an area that has become more interesting in recent times and so much work has been done so far.The contribution o f this study in the area of earnings management can be summarized in its documentation to the effect of earnings management activity on institutional investor ownership, especially through distinguishing the ownership changes in response to the direction of earnings management efforts. This study finds that institutional investors increase ownership in firms that manage earnings upwards and decrease ownership in firms that manage earnings downward before end-of-year reporting.Moreover, this study finds that the increases observed during an observed upwards earnings-managing activity are followed by decreases in ownership in these firms in the subsequent quarter, which may suggest resource allocation between large and small investors. In his comments at the practice of earnings management phenomenon, Simon (2005) argues that managing earnings is a wrong practice, in his paper titled â€Å"Earnings Management as A Professional Responsibility Problem†.The author of this paper st ates that managers of public companies often want an increase in current reported earnings per share; though they sometimes prefer a current decrease in the earnings they would otherwise report when it will allow them to show a smoothly increasing pattern of earnings in the future. He adds, on his comments on Schwarcz's paper, that â€Å"the ‘limits of lawyering' are the constraints of law, but having said that, the question remains-what do we mean by law? If we take a narrow, predictive conception of law, the limits will be less restrictive than if we take a broader, purposive view. . He also states that the more ambitious conception is most compatible with the idea of lawyering as a dignified calling. Caramanis and Lennox (2007), carried out a study titled â€Å"Audit Effort and Earnings Management† in their trial to determine the effect of audit hours on the practice of earnings management by the Greece Firms. To measure earnings management, the authors use the Jone s (1991) model based on the balance sheet approach rather than the cash flow statement approach because most Greek companies do not provide cash flow statements.There are three main findings of this study. First, companies are more likely to report income-increasing abnormal accruals than income-decreasing abnormal accruals, when audit hours are lower. Second, the magnitude of income-increasing abnormal accruals is negatively related to audit hours. Third, companies are more likely to manage earnings upwards to just meet or beat the zero earnings benchmark, when auditors work fewer hours. Moreover, this study finds weak or insignificant associations between audit hours and the magnitude of negative abnormal accruals.A study titles â€Å"Detecting Earnings Management† for the purpse of evaluating alternative accrual-based models for detecting earnings management is carried out by Dechow and Sweeney (1995). This paper evaluates the ability of alternative models to detect earnin gs management. Concerning this issue, the paper finds that all the models considered appear to produce reasonably well specified tests for a random sample of event-years. When the models are applied to samples of firm-years experiencing extreme financial performance, all models lead to misspecified tests.The second finding of this paper is that the models all generate tests of low power for earnings management of economically plausible magnitudes. Moreover, this paper reveals that all models reject the null hypothesis of no earnings management at rates exceeding the specified test-levels when applied to sample of firms with extreme financial reporting. The most important finding of this paper is that a modified version of the model developed by Jones (1001) has the most power in detecting earnings management.Kerstein and Rai (2007), carried out a study titled â€Å"Working Capital Accruals and Earnings Management†. The purpose of this study is to reexamine market reactions to large and small working capital accruals. This study involves three hypotheses. First, negative or positive large working capital accruals have no impact on the earnings response coefficient of firms reporting positive small earnings surprises. Second, Positive or negative large working capital accruals have no impact on earnings response coefficients of firms reporting small earnings declines.Third Positive or negative large working capital accruals have no impact on earnings response coefficients of firms reporting large earnings increases or declines. The authors focus on nonlinear relations between returns and large working capital accruals and use raw returns computed as the compounded monthly returns from nine months prior to the fiscal year-end to three months after the fiscal year-end as the dependent variable. They find that the market discounts unexpected earnings when there are small increases in earnings using negative large working capital accruals or negative large wo rking capital accruals.They also find little or no evidence that positive or negative large working capital accruals lead to lower earnings response coefficients in the remaining six situations. In his study titles â€Å"Earnings Management, Earnings Manipulation: Evidence from Taiwanese Corporations†, (2008), Chai-hui Chen differentiates between earnings management and earnings manipulation among the Taiwanese companies. In this study, Chai examines 7 hypotheses based on a sample of 90 public firms throughout 1999-2004.The main findings this study concludes that: (1) unlike the control group, earning manipulators face greater capital market and contract motivations to manage earnings; (2) earnings manipulators are more inclined to appoint fewer independent directors to their boards, to appoint fewer independent supervisors to their supervisory boards, and to posses considerably less managerial ownership; and (3) earnings manipulators are more likely than the control group to express aggressive attitudes and rationalizations to manage earnings changes before interests and taxes, or both.To examine the effect of firm's stock price sensitivity to earnings news, as measured by outstanding stock recommendation, on incentives to manage earnings, Abarbanel and Leahavy (2003) carried out a study titled â€Å"Can Stock Recommendations Predict Earnings Management and Analysts' Earnings Forecast Errors†. This study examines hypotheses concerning (1) the effect of introducing equity-market-based earnings targets on firms' earnings management, and (2) the effects of such earnings management actions on ensuring analysts' forecast errors.In this study, quarterly unexpected accruals are calculated using the modified Jones (1991) model. This study finds evidence that a firm's stock price sensitivity to earnings news, as measured by outstanding stock recommendation, affects its incentives to manage earnings and, in turn, affects analysts' ex post forecast errors. Moreover, this study finds a tendency for firms rated a Sell (Buy) to engage More (less) frequently in extreme, income-decreasing earnings management, indicating that they have relatively stronger (weaker) incentives to create accounting reserves.In contrast, this study finds that firms rated a Buy (Sell) are more (less)likely to engage in earnings management that leaves reported earnings equal to or slightly higher than analysts' forecasts. Zhang (2002) carried out his study titled, â€Å"Detecting Earnings Management – Evidence from Rounding-up in Reported EPS†, for the purpose of evaluating a comprehensive list of metrics propsed for detecting earnings management in a setting where managers manipulate earnings to round up reported earnings per share (EPS).This study provide the evidence that adds to the debate on the abilities of accrual-based models to detect earnings management of small magnitude. The study cast doubt on the abilities of accrual-based models to c atch minor offenses, which is likely to be the norm, rather than exception of various forms of earnings management. The metrics under evaluation of this study are deferred tax expense and discretionary accruals computed from DeAngelo Model, Healy Model, Jones Model, Modified Jones Model, Cross-sectional Jones Model, and Forward-looking Jones Model.This study finds that deferred tax expense is able to detect earnings management in the rounding-up setting while discretionary accruals models are not. Moreover, this study provides the evidence that firms manipulate bad debt expense for the purpose of rounding-up reported EPS. Chan, Jegadeesh, and Sougiannis (2004) carried out a study titled â€Å"The Accrual Effect on Future Earnings† in an attempt to clarify whether current accruals affect future earnings. The authors find a strong negative relationship between accruals and the aggregate future earnings.This study mentions that if firms manage accruals upward by $1 today while h olding current earnings constant, aggregate future earnings will decline, on average, by $ 0. 096 over the following three years and $0. 202 in the long run. This study also examines the accrual effects classified by firm characteristics to test the source of the negative relationship between accruals and future earnings. The study shows that high price-earnings stocks experience an enormous accrual impact on their future earnings, with 39% of current accruals reversing in the long run.Moreover, this study shows that firms with high market-to-book ratios also have large accrual reversals, so when this is grouped by accruals, the accrual effects are significantly stronger for high accrual firms than for low accrual firms. Among the additional important findings of this study is that Jones model significantly underperforms the CF-Jones model in explaining the cross-sectional accrual variability, with only 24% of mean adjusted –R2 for the Jones model compared to 57% for CF-Jones Model.This result shows the CF-Jones model superiority in identifying the manipulated earnings. The most recent study concerning the detection of earnings management relates to Miller (2009) and titled â€Å"The Development of the Miller Ratio (MR): A Tool to Detect for the Possibility of Earnings Management (EM)†. In this study, Miller uses new technique to detect earnings management called â€Å"Miller Ratio†, based on net working capital (NWC) and cash flow from operations (CFO). Miller also compares between the esults reached through his own model and the results revealed based on Modified Jones Model. In this study, the author states that the large body of literature on the topic of earnings management provides discussion of total accruals, discretionary total accruals, and current accruals. The findings of this study indicate that neither the Miller Ratio nor the Modified Jones Model predicted the possibility of earnings management at a statistical acceptable le vel of confidence on the body of data with acknowledged earnings management. .Caramanis, A. , and Lennox, C. , (2008), â€Å"Audit Effort and Earnings Management†, Journal of Accounting and Economics 45, PP. 116-138. 2. Jones, J. , (1991), â€Å"Earnings Management during import relief Investigations†, Journal of Accounting Research 29, pp. 193-228. 3. Dechow, M. , and Sweeney, P. , (1005), â€Å"Detecting Earnings Management†, The Accounting Review, Vol. 70, No. 2, PP 193-225. 4. Kerstein, J. , and Rai, A. (2007), â€Å"Working Capital Accruals and Earnings Management†, Investment Management and Financial Innovation, Vol. 4, Issue 2, PP. 33-47. 5. Chen, C. , (2008), â€Å"Earnings Management, Earnings Manipulation: Evidence from Taiwanese Corporations, Available on Line: 6. Abarbanell, J. , and Lehavy, R. , (2003), â€Å"Can Stock Recommendations Predict Earnings Management and Analysts' Earnings Forecast Errors? â€Å", Journal of Accounting Research , Vol. 41, No. 1, PP. 1-47. 7. Zhang, H. (2002), â€Å"Detecting Earnings Management – Evidence from Rounding-up in Reported EPS†, Available on Line. 8. Chan, K. , Jegadeesh, N. , and Sougiannis, T. , (2004), â€Å"The Accrual Effect on Future Earnings†, Review of Quantitative Finance and Accounting, 22, PP. 97-121. 9. Miller, J. E. , (2009), â€Å"The Development of the Miller Ratio (MR): A Tool to Detect fot the Possibility of Earnings Management (EM)†, Journal of Business ; Economics Research, Vol. 7, No. 1, PP. 79-90. Earning Management Does the Commercial Banking Industry of UAE Practice Earnings Management Dr. Mohammed Obeidat Introduction It is the right of external users of accounting information to be provided with more adequate information to protect their interests. Many questionable issues concerning the term of earnings management are still available. Auditors, accountants, financial analysts, and other concerned parties may hold the responsibility of detecting external users from the practices of earnings management. Many questionable issues are still available regarding the term of earnings management.Some people may have no enough idea about what practices are classified under earnings management, and what practices can not be classified under this term. Users of accounting information are different but few of them have the ability to detect the practices of earnings management. Because there are different methods of practicing earnings management, detecting the practices of earnings management is one of the difficult issues. The common practice of earnings management by firms and the negative effects of these practices on external users of financial accounting information justify the investigation of this issue.Many users may lose some of their wealth as a result of practicing this phenomenon. Many financial crises appear in our world from time to time, and some reasons of these crises are related to incorrect announced financial information. The problem of the current study will be simpler, if it is presented through the following question: How investors can detect the practices of earnings management, in order to have the ability to protect themselves from the negative effects of these practices?The answer to this question may seem more difficult, so the current study present an example from the Commercial Banking Industry of the United Arab Emirates (UAE). Studying the phenomena of practicing earnings management is important, because this will highlight why managers may practic e this phenomenon. Many incentives may be available to managers and promote them to practice earnings management. These incentives will be highlighted later on in the current study, but when investors are knowledgeable with some of these incentives, they can consider and analyze the financial information of their entities more.Moreover, when users are aware with the methods that are followed by managers to practice earnings management, they will be more eligible to detect these practices. The current study will explore the most available methods of practicing earnings management. The importance of the current study is increased, because it highlights how investors can determine whether there is a practice of earnings management or not. The objectives this study is looking to achieve are as follows: 1. To highlight the incentives standing behind the practice of earnings management by managers. 2.To inform users about the methods available to firms' management to manage the earnings. 3. To determine the qualitative and quantitative available procedures that can be used to detect the practices of earnings management. 4. To determine whether the Commercial Banking Industry of UAE practices or does not practice the phenomenon of earnings management. 5. In a case of earnings management is detected, this study aims to detect whether these practices were upward or downward practices. Our study makes a unique contribution to the literature by using data from the announced financial statement of Commercial Banking Industry of UAE.This study differs from the prior studies in its location, methods, objectives, and nature of data used in the analysis. Because the current study involves the commercial banks of ABU Dhabi, and because all of these commercial banks are listed in Abu Dhabi Stock Market, this study is unique in its location. Just few studies outside Abu Dhabi followed quantitative method to investigate whether there are practices of earnings management or not, t he current study is also different from other prior researches.This study depends on cross sectional data because a time series data will misstate the data, so it is unique in its inputs of data. This paper is organized as follows: The first section defines earnings management, and describes the incentives of its practices by commercial banks, in addition to that, it explores the methods of practice and how these practices can be defected. The second section explores the most related prior researches. The third section presents the hypotheses of the current research. The fourth section describes the followed methodology in the current study.The fifth section presents the results, while the fifth explores the findings. Literature Review and Prior Researches Many people believe that the term of earnings management is understandable in its simple form, but most of those unable to determine whether a selected practice is an earnings management or not. Understanding what earnings managem ent constitutes and why it takes place is important for all users of accounting information. This study highlights the different aspects of earnings management, so it identifies clearly this term, and presents the incentives standing behind its practice.Moreover, the current study determines the methods of earnings management used by firms, and explores how these practices can be detected. Earnings management is defined as the â€Å"intentional misstatement of earnings leading to bottom line numbers that would have been different in the absence of any manipulation (Mohanram, 2003). Based on this definition, the practice of earnings management is an intentional behavior, and if this practice occurs unintentionally, it can not be classified under the practices of earnings management.Moreover, this definition states that the practice of earnings management phenomenon leads to users' misstatement. In other words, practitioners of earnings management have different purposes and they cha nge some accounting numbers to affect users in order to achieve these objectives. Healy and Wahlen (1999) state that earnings management â€Å"occurs when managers use judgment in financial reporting and in structuring transactions to alter financial reports to either mislead some stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reporting accounting numbers†.This definition states that this practice is also intentional and purposeful. This definition mentions that contractual issues are incentives for managers to manage earnings. But we have to remember Some concerned people believe that earnings management mean upward manipulation. Actually, earnings management may be exercised either upward or downward. In most cases, the target of earnings determines to a large degree, whether the management of the firm practices earnings management upward or downward.Some people also believe that the all the practice of earnings management are illegal, and no legal practice exists. Actually, there are different practices of earnings management do not violate the generally accepted accounting principles (GAAP). For example, speeding the size of sales during the last month or the fourth quarter is in agreement with the GAAP. Moreover, activating sales during the last month of the accounting period through granting discounts to customers is also in agreement with the GAAP, and is not a violation to the accounting standards.There are different incentives to managements of firms to practice the phenomenon of earnings management. Most of these incentives are related to benchmarks of earnings. Sometimes, the previous period's performance may be the benchmark to the firm. In other cases, the benchmark to the firm may be the expectations of financial analysts. The promised compensations to the firm's management may be the most important incentive of the practice of earnings management. Benchmarks are ne cessary for the determination whether the management deserves or does not deserve the promised compensation.Sometimes, the desire of the firm's management to increase the stock market price may also be one among the incentives to earnings management, especially, when the management is looking for more compensation. The normal positive relation between earnings and stock market price means that as the amount of announced earnings increases, the common stock market price is also increases. Therefore, when a desire exists to the firm's management to affect the common stock market price, the management will manage its earnings. Reducing the amount of income tax may also be one among the incentives of practicing earnings management.In many countries, business entities are subject to high income tax rates, where different categories of expenses are deducted from the income. When these entities are looking toward reducing the amounts of taxes, they practice the phenomenon of earnings manag ement. The practice of earnings management in this case may be through increasing the amounts of tax deductions, or through the decreasing the amounts of earnings. Sometimes, firm's management may manage earnings to simplify the issue of receiving credits from banks and other financial issues.In addition, firms may also manage earnings to reduce the cost of this credit, because when earnings are reasonable, the firm can receive credit smoothly without such obstacles, and at lower costs, but when the firm's earnings are unreasonable, this firm will face many obstacles to receive credit, and it may receive credit at higher costs. These are some of incentives or reasons of the practice of earnings management, but other incentives may be available to some firms, depending on the financial conditions of the firm's management itself.Managements of firms can follow different methods to manage earnings. Changing the assumptions for accounting standards is one of the most common used methods in managing earnings. It is already known that the GAAP are highly flexible, so managements can employ the high degree of flexibility available in these standards. Examples of this flexibility are the inventory flow methods which managements can use one among these, and the available options to depreciate some of the firm's assets, in addition to these; firms can review the assumed lives of these depreciable assets.As a result a variety of options are available to management whenever a desire to manage earnings exists. Managements can manage earnings through the determination to the bad debts provisions. For example, whenever there is a need to announce earnings higher than its actual value, management can determine these bad debts at amounts lower than their actual, while it can announce lower amounts of bad debts whenever there is a need to reduce the announced income. Managing transaction is one among the available options to management when there is a desire to manage earnings. For instance, management can grant high discounts during the last few days of the accounting period to recognize more revenue through sales under the accrual basis. One option is available to managements of firms is to activate sales or services during the last days of accounting period through the adoption to more sales on credit, and through longer period of payment are given to customers. Two approaches are available to detect the phenomenon of earnings management. The first is qualitative, while the second is quantitative approach.Using the two approaches together when this possible leads to more certain conclusions whether a firm or a group of firms manage earnings. Several steps have to be followed when there a need exists to detect earnings management through the qualitative methods. These steps are presented below: (Mohanram, 2003). 1. Identifying the key accounting policies of the firm or industry. Regarding the industry of the current research, the issues of credit risk an d interest rate risk are of crucial importance to banks. 2. Assessing the firm's accounting flexibility.The level of accounting flexibility may be high to some firms or industries, whereas, it may be low to other firms and industries. 3. Evaluating the firm's accounting strategy, and determining how this strategy differs from other competitors. 4. Assessing the firm's quality of disclosure. 5. Identifying the potential red flags. The following is an example of red flags: |Unexplained accounting changes, especially when performance is bad. | |Unexplained profit boosting transactions, such as sale of assets. | |Unusual increase in accounts receivable in relation to sales increase. |Increasing gap between net income and cash flow from operations. | |Increasing gap between net income for reporting and tax purposes. | |Unexpected large asset write-offs or write downs. | |Large fourth quarter adjustment. | |Qualified audit opinion or change in auditors. | |Large related party transactions . | 6. The final step is to undo accounting distortions by reversing out the impacts of dubious accounting wherever possible. Earnings management can be also detected analytically, based on the firm's accruals, which can be defined as the difference between net income and cash flow operations.In occasion, firms with high level of accruals are likely to have inflated earnings. Firms practice the phenomenon of earnings management can be determined through segregating discretionary accruals from non-discretionary accruals. In this case, Jones (1991) model can be used to segregate discretionary from non-discretionary accruals. In the current study we use this model to determine whether, or not, the Commercial Banking Industry practices the phenomenon of earnings management. This model is presented below:Where total accruals can be computed by finding the difference between income before extraordinary items and cash from operations in year t. Revenuest is revenues in year t, while revenu est-1 is the revenues at the end of year t-1. Total assetst-1 is total assets of year t-1. Gross PPEt is gross property, plant, and equipment at the end of year t, and B1, B2, and B3 are industry and year specific parameters to be estimated. The residual value in Jones's Model is the discretionary accruals for a firm in a given year, while the fitted value gives an estimate of the non-discretionary component of earnings.Researchers in the accounting literature have often focused on earnings management. Many researchers studied the issue of earnings management; most of these are focused in the Western or Far East Countries. A study titled † earnings Management: Do Large Investors Care? † and carried out by Senteza, Njoroge, and Gill (2005), deserves to be mentioned in the current study. This study mentions that institutional investment activity and behavior is an area that has become more interesting in recent times and so much work has been done so far.The contribution o f this study in the area of earnings management can be summarized in its documentation to the effect of earnings management activity on institutional investor ownership, especially through distinguishing the ownership changes in response to the direction of earnings management efforts. This study finds that institutional investors increase ownership in firms that manage earnings upwards and decrease ownership in firms that manage earnings downward before end-of-year reporting.Moreover, this study finds that the increases observed during an observed upwards earnings-managing activity are followed by decreases in ownership in these firms in the subsequent quarter, which may suggest resource allocation between large and small investors. In his comments at the practice of earnings management phenomenon, Simon (2005) argues that managing earnings is a wrong practice, in his paper titled â€Å"Earnings Management as A Professional Responsibility Problem†.The author of this paper st ates that managers of public companies often want an increase in current reported earnings per share; though they sometimes prefer a current decrease in the earnings they would otherwise report when it will allow them to show a smoothly increasing pattern of earnings in the future. He adds, on his comments on Schwarcz's paper, that â€Å"the ‘limits of lawyering' are the constraints of law, but having said that, the question remains-what do we mean by law? If we take a narrow, predictive conception of law, the limits will be less restrictive than if we take a broader, purposive view. . He also states that the more ambitious conception is most compatible with the idea of lawyering as a dignified calling. Caramanis and Lennox (2007), carried out a study titled â€Å"Audit Effort and Earnings Management† in their trial to determine the effect of audit hours on the practice of earnings management by the Greece Firms. To measure earnings management, the authors use the Jone s (1991) model based on the balance sheet approach rather than the cash flow statement approach because most Greek companies do not provide cash flow statements.There are three main findings of this study. First, companies are more likely to report income-increasing abnormal accruals than income-decreasing abnormal accruals, when audit hours are lower. Second, the magnitude of income-increasing abnormal accruals is negatively related to audit hours. Third, companies are more likely to manage earnings upwards to just meet or beat the zero earnings benchmark, when auditors work fewer hours. Moreover, this study finds weak or insignificant associations between audit hours and the magnitude of negative abnormal accruals.A study titles â€Å"Detecting Earnings Management† for the purpse of evaluating alternative accrual-based models for detecting earnings management is carried out by Dechow and Sweeney (1995). This paper evaluates the ability of alternative models to detect earnin gs management. Concerning this issue, the paper finds that all the models considered appear to produce reasonably well specified tests for a random sample of event-years. When the models are applied to samples of firm-years experiencing extreme financial performance, all models lead to misspecified tests.The second finding of this paper is that the models all generate tests of low power for earnings management of economically plausible magnitudes. Moreover, this paper reveals that all models reject the null hypothesis of no earnings management at rates exceeding the specified test-levels when applied to sample of firms with extreme financial reporting. The most important finding of this paper is that a modified version of the model developed by Jones (1001) has the most power in detecting earnings management.Kerstein and Rai (2007), carried out a study titled â€Å"Working Capital Accruals and Earnings Management†. The purpose of this study is to reexamine market reactions to large and small working capital accruals. This study involves three hypotheses. First, negative or positive large working capital accruals have no impact on the earnings response coefficient of firms reporting positive small earnings surprises. Second, Positive or negative large working capital accruals have no impact on earnings response coefficients of firms reporting small earnings declines.Third Positive or negative large working capital accruals have no impact on earnings response coefficients of firms reporting large earnings increases or declines. The authors focus on nonlinear relations between returns and large working capital accruals and use raw returns computed as the compounded monthly returns from nine months prior to the fiscal year-end to three months after the fiscal year-end as the dependent variable. They find that the market discounts unexpected earnings when there are small increases in earnings using negative large working capital accruals or negative large wo rking capital accruals.They also find little or no evidence that positive or negative large working capital accruals lead to lower earnings response coefficients in the remaining six situations. In his study titles â€Å"Earnings Management, Earnings Manipulation: Evidence from Taiwanese Corporations†, (2008), Chai-hui Chen differentiates between earnings management and earnings manipulation among the Taiwanese companies. In this study, Chai examines 7 hypotheses based on a sample of 90 public firms throughout 1999-2004.The main findings this study concludes that: (1) unlike the control group, earning manipulators face greater capital market and contract motivations to manage earnings; (2) earnings manipulators are more inclined to appoint fewer independent directors to their boards, to appoint fewer independent supervisors to their supervisory boards, and to posses considerably less managerial ownership; and (3) earnings manipulators are more likely than the control group to express aggressive attitudes and rationalizations to manage earnings changes before interests and taxes, or both.To examine the effect of firm's stock price sensitivity to earnings news, as measured by outstanding stock recommendation, on incentives to manage earnings, Abarbanel and Leahavy (2003) carried out a study titled â€Å"Can Stock Recommendations Predict Earnings Management and Analysts' Earnings Forecast Errors†. This study examines hypotheses concerning (1) the effect of introducing equity-market-based earnings targets on firms' earnings management, and (2) the effects of such earnings management actions on ensuring analysts' forecast errors.In this study, quarterly unexpected accruals are calculated using the modified Jones (1991) model. This study finds evidence that a firm's stock price sensitivity to earnings news, as measured by outstanding stock recommendation, affects its incentives to manage earnings and, in turn, affects analysts' ex post forecast errors. Moreover, this study finds a tendency for firms rated a Sell (Buy) to engage More (less) frequently in extreme, income-decreasing earnings management, indicating that they have relatively stronger (weaker) incentives to create accounting reserves.In contrast, this study finds that firms rated a Buy (Sell) are more (less)likely to engage in earnings management that leaves reported earnings equal to or slightly higher than analysts' forecasts. Zhang (2002) carried out his study titled, â€Å"Detecting Earnings Management – Evidence from Rounding-up in Reported EPS†, for the purpose of evaluating a comprehensive list of metrics propsed for detecting earnings management in a setting where managers manipulate earnings to round up reported earnings per share (EPS).This study provide the evidence that adds to the debate on the abilities of accrual-based models to detect earnings management of small magnitude. The study cast doubt on the abilities of accrual-based models to c atch minor offenses, which is likely to be the norm, rather than exception of various forms of earnings management. The metrics under evaluation of this study are deferred tax expense and discretionary accruals computed from DeAngelo Model, Healy Model, Jones Model, Modified Jones Model, Cross-sectional Jones Model, and Forward-looking Jones Model.This study finds that deferred tax expense is able to detect earnings management in the rounding-up setting while discretionary accruals models are not. Moreover, this study provides the evidence that firms manipulate bad debt expense for the purpose of rounding-up reported EPS. Chan, Jegadeesh, and Sougiannis (2004) carried out a study titled â€Å"The Accrual Effect on Future Earnings† in an attempt to clarify whether current accruals affect future earnings. The authors find a strong negative relationship between accruals and the aggregate future earnings.This study mentions that if firms manage accruals upward by $1 today while h olding current earnings constant, aggregate future earnings will decline, on average, by $ 0. 096 over the following three years and $0. 202 in the long run. This study also examines the accrual effects classified by firm characteristics to test the source of the negative relationship between accruals and future earnings. The study shows that high price-earnings stocks experience an enormous accrual impact on their future earnings, with 39% of current accruals reversing in the long run.Moreover, this study shows that firms with high market-to-book ratios also have large accrual reversals, so when this is grouped by accruals, the accrual effects are significantly stronger for high accrual firms than for low accrual firms. Among the additional important findings of this study is that Jones model significantly underperforms the CF-Jones model in explaining the cross-sectional accrual variability, with only 24% of mean adjusted –R2 for the Jones model compared to 57% for CF-Jones Model.This result shows the CF-Jones model superiority in identifying the manipulated earnings. The most recent study concerning the detection of earnings management relates to Miller (2009) and titled â€Å"The Development of the Miller Ratio (MR): A Tool to Detect for the Possibility of Earnings Management (EM)†. In this study, Miller uses new technique to detect earnings management called â€Å"Miller Ratio†, based on net working capital (NWC) and cash flow from operations (CFO). Miller also compares between the esults reached through his own model and the results revealed based on Modified Jones Model. In this study, the author states that the large body of literature on the topic of earnings management provides discussion of total accruals, discretionary total accruals, and current accruals. The findings of this study indicate that neither the Miller Ratio nor the Modified Jones Model predicted the possibility of earnings management at a statistical acceptable le vel of confidence on the body of data with acknowledged earnings management. .Caramanis, A. , and Lennox, C. , (2008), â€Å"Audit Effort and Earnings Management†, Journal of Accounting and Economics 45, PP. 116-138. 2. Jones, J. , (1991), â€Å"Earnings Management during import relief Investigations†, Journal of Accounting Research 29, pp. 193-228. 3. Dechow, M. , and Sweeney, P. , (1005), â€Å"Detecting Earnings Management†, The Accounting Review, Vol. 70, No. 2, PP 193-225. 4. Kerstein, J. , and Rai, A. (2007), â€Å"Working Capital Accruals and Earnings Management†, Investment Management and Financial Innovation, Vol. 4, Issue 2, PP. 33-47. 5. Chen, C. , (2008), â€Å"Earnings Management, Earnings Manipulation: Evidence from Taiwanese Corporations, Available on Line: 6. Abarbanell, J. , and Lehavy, R. , (2003), â€Å"Can Stock Recommendations Predict Earnings Management and Analysts' Earnings Forecast Errors? â€Å", Journal of Accounting Research , Vol. 41, No. 1, PP. 1-47. 7. Zhang, H. (2002), â€Å"Detecting Earnings Management – Evidence from Rounding-up in Reported EPS†, Available on Line. 8. Chan, K. , Jegadeesh, N. , and Sougiannis, T. , (2004), â€Å"The Accrual Effect on Future Earnings†, Review of Quantitative Finance and Accounting, 22, PP. 97-121. 9. Miller, J. E. , (2009), â€Å"The Development of the Miller Ratio (MR): A Tool to Detect fot the Possibility of Earnings Management (EM)†, Journal of Business ; Economics Research, Vol. 7, No. 1, PP. 79-90.