Hul Asignment – Case Study1

1. Representative advantages and Long Term Settlement Although at first positive about the move, the ICU laborers had started to request more cash to make up for the expanded travel costs and the more costly food at the TF. (contextual investigation p. 5) The issue was raised to the corporate administrative centers who concluded that ICU representatives would be conceded a cafeteria premium of Rs. 25 every day except not a transport remittance. (contextual investigation p. 7) The three units had various approaches for: Tea breaks Lunch breaks Holiday records Festival progresses Pay structures Designations Working courses of events: ICU †seven days in three movements TF †six days in two movements TIU †five days in a solitary move The LTS additionally covers machine speeds, profitability, clinical T&Cs, supplication times for strict gatherings. (contextual analysis p. 8) Factory associations present their contract of requests to the production line the board. Processing plant the board haggle with the Central Industrial Relations Committee for a general bundle that the advisory group would endorse as a compensation out. Neighborhood the board at that point haggle with the associations and it is closed down once most of associations concur. (contextual analysis p. 8) Every day after 28th of February that the LTS isn't concurred the workers miss out on whatever compensation increase the understanding contained. (contextual investigation p. 8) Older specialists are progressively worried about annuities, more current laborers need to expand salary. (contextual analysis p. 9) (contextual investigation p. 9) The current LTS is for the Tea Factory, the LTS for the TIU lapses in 2010 and for the ICU in 2011. Any understandings in the TF LTS will set point of reference for future settlements. Results There will be vulnerability and agitation among the representatives until the issues are settled. Need to improve worker commitment. Points of reference will be set for future settlements. So contemplations ought to be given to how functioning conditions can be best normalized. LTS arrangements have in the past become brutal bringing about the breakdown of correspondence and unfavorable impacts on the business. (contextual analysis p. 8) Employees are missing out on benefits while trusting that this will be arranged so it is to everybody's greatest advantage to determine it rapidly. Arrangements A decent bundle will be a viable apparatus for enlistment and maintenance of associates and help to continue staff inspiration and commitment. As indicated by Bratton and Gold (2007, p. 364) â€Å"the reward framework is a significant thought when the association is attempting to pull in appropriate representatives, and once laborers are individuals from the association, their assignment conduct and levels of execution are impacted by the prize framework. † An ongoing article by Manisha Chada of the individuals matters from India has noticed the idea of remunerations is increasing expanding notoriety, especially because of the various needs of an advanced workforce. Different elements that ought to likewise be viewed as are serious pay rates, agreeable way of life, employer stability, profession improvement choices, and work-life offset Effective correspondence with representatives assumes a fundamental job during the rebuilding time of any association as it serves to appropriately educate the representatives about the changes. This assists with expelling the vulnerability and relieve fears among representatives and consequently may defeat any obstruction that may result thereof. Casio (2002:96) accepts that â€Å"open and progressing correspondence is basic to an effective rebuilding effort†. Paton and James (2000:45) accept that â€Å"effective correspondence that is intended to educate, counsel and advance activity will help in conquering both opposition and numbness among employees†. Claiming offers will give representatives money related impetuses that will make them progressively dedicated to the association and increasingly persuaded at work. In the event that the organization is progressively productive, representatives will pick up monetarily through profit installments and an expanded offer cost. Numerous organizations in India, for example, †¦ have representative commitment annuity conspires so workers can pick in the event that they need to place cash into the benefits or keep it in their salary †a specific measure of pay can be dispensed and friends would coordinate that to a set breaking point. This would give the more established representatives the alternative to place more cash into their Relocation of laborers †we feel that it is out of line that associates have been moved and now have additional movement expenses and travel time. The organization could mastermind a transport to get representatives from certain concurred focuses and ship them to the Tea Factory. This could improve associate responsibility as it would show that accepts their criticism. I would propose that the supervisory crew should set up a center bundle for all workers that can be duplicated for the ICU and TIU. Extra advantages could be included dependant evaluation and execution. As per an article on Employee Satisfaction in the Journal of Industrial Management and Data Systems, this would add to partner commitment and inspiration. Arrangements on coffee breaks, mid-day breaks, celebration progresses, occasion strategy and supplication times could be normalized for all partners. It is shrewd to do an audit of the reviewing structure of each of the three pieces of the Tea Factory and to normalize evaluations and occupation titles and pay for associates performing comparative jobs all through the association. Contentions How are we going to convince the CEO and the executives to consent to an improved bundle. Shouldn't something be said about the more youthful individuals, will they understand the significance of a benefits conspire? †Perhaps it would be a smart thought for the organization or associations to teach the representatives about the annuity plot. It would likewise be a smart thought to permit representatives to revise the rate that they contribute at specific occasions. The administration have just declined to pay travel costs separately â€could help to fabricate relations among representatives and increase certainty from the workers. 2. Issues between the administration and the associations The test of dealing with the divergent workforce will tumble to the Factor Manager, the Commercial Manager and the HR Manager. The HR chief, is female, 26 and this is her first task. (contextual analysis p. 2) There was no HR group set up when Suchita showed up at the manufacturing plant. Every single past chief had been male, local to the state and had four to five years of experience. One specialist had said to her â€Å"you’re more youthful than even my girl, and I don’t like the way that I need to answer to you. † Suchita has employed an accomplished nearby man onto the HR group to ease relations with the workforce. (contextual investigation p. 6) The pioneer of the TF Union C is factious, and the association is more uncooperative than the others. The pioneer jumped into Suchita’s office on her first day in the manufacturing plant and took steps to strike if an issue was not settled. contextual investigation p. 5) The ICU associations had not been a piece of an enormous worldwide previously and were careful about normalized forms. They likewise felt that they were not remunerated on a standard with other HUL associations and looked to the up and coming merger to increase a critical compensation out for their kin. When Suchita showed up, the TF and ICU had separate processing plant supervisors. Soon after she began the ICU administrator quit and after two months she discovered that the TF chief would move to another job in Dec 2008. The unexpected change in chiefs expanded the union’s anxiety. contextual investigation p. 6;7) Union pioneers have featured the distinctions in working T;Cs among the various units. (contextual investigation p. 8) ICU representatives turned out to be progressively safe and hesitant to change as the draw moved closer. (contextual analysis p. 8) Management have received an extreme position on dealings †see p. 8. As the more established laborers were supplanted entomb association competitions reemerged. (contextual investigation p. 9) Unions are getting progressively possessive of their individuals so as to save their gathering personality and significance. (contextual analysis p. 9) Consequences On the off chance that the associations are not sorted out adequately there is a potential that they will strike. The issues with the executives structure, for example, the change in TF and ICU supervisors are prompting turmoil and should be settled. The ICU associations potentially need assistance to incorporate into the TF structure as they are getting attentive about the progressions and could cause distress and dissent among the representatives. Association contention is expanding, could be awful for the business in this way it is smarter to balance out the structure as quickly as time permits. Change the executives. Combination. Answers for diminish issues among the board and associations: Representatives ought to be permitted to partake directly from the earliest starting point of rebuilding process. Representatives are bound to be strong of any progressions on the off chance that they are permitted to truly partake in gatherings and workshops where the conceived changes are talked about at the beginning Every endeavor ought to be made by the board to impart all the fundamental data to representatives precisely and at fitting occasions. This will make a climate of trust and duty among representatives and will likewise improve the respectability and validity of the executives and their goals; Representatives should consistently observe a few advantages coming out of the change procedure and the board must guarantee that these additions are plainly comprehended by all the significant workers. Prize structures that are obviously comprehended by workers just as offices, for example, the cafeteria must be rethought as significant components of the change forms A key human asset plan for maintenance, re-skilling and development of representatives to new jobs and capacities must be created and be made known to every single important gathering. Additional instructing and preparing for the nearby administrators including HR supervisor. Balance and assorted variety strategy and give preparing to the partners. As indicated by an article by Kathy Gans it is essential to increase a decent comprehension of how changes will affect the workforce. It would be a smart thought to direct reviews to check the sentiments of representatives and afterward investigate

mrs Essays (260 words) - Sustainable Food System, Aquaculture

Fish cultivating angling is in some cases directed by climate predation and other ecological variables fish cultivating permitted anglers to control the development and life expectancy of fish particularly salmon so that there is a controlled bounty this is additionally a preservation technique when fish populaces are diminished by over angling. Tragically this additionally improved the probability of infections spread by fish or overwhelming metal tainting. With numerous wild fisheries as of now overharvested all through the world, aquaculture is a significant food source particularly for poor nations and has made fish progressively bottomless and moderate. Harvest exchanging utilizing assortments of a specific plant or different plants to keep utilizing a homestead however resupplying the supplements filtered by the first yield. Most nations utilize this technique in present day cultivating more than fallowing in light of the fact that it permits them to keep a consistent money crops going. Numerous advances can expand the yields of harvests. These incorporate customary rearing, creation of half breeds, supposed marker helped reproducing, and tissue culture strategies for proliferating infection free root stocks. These could help improve the profitability of yields in the creating scene, however presently just constrained assets are accessible for applying them. My interests are the strategies used to make food supplies develop a lot speedier. These things will in general damage us more than help us. I simply imagine that better strategies for profitability could support us. It is expressed constantly that for getting healthy, the kind of food you eat is everything and with some of things that I know are utilized to develop the things I eat I don?t need to be.

Msc Reflective Essay Life Long Learning Free Essays

Advancing Lifelong Learning By Anderson Pustam Promoting Lifelong Learning Introduction Promoting long lasting learning is an extremely proficient term. It truly advances the genuine significance of the learning and it additionally instills one most significant thing in a learner’s mind that learning isn't limited to the study hall or school. We can gain proficiency with whenever through any methods. We will compose a custom exposition test on Msc Reflective Essay Life Long Learning or then again any comparative subject just for you Request Now It very well may be our expert experience or inside willful help also. For my situation I have learnt various things during my work inside my locale group. One of the most significant things that I gained from that point was learning through the expert condition and the improvement of the staff and understudies. Each social and medicinal services association keep on depending on different types of successful administration and initiative techniquesâ€such as persistent learning, staff advancement, teams, self-sufficient work gatherings, quality circles, and multifunctional leadershipâ€to perform basic capacities, long lasting learning is progressively being alluded to as the foundation of present day wellbeing association. As I would like to think the basic job that learning plays in associations, more consideration has been coordinated toward staff execution adequacy (Binnie Titchen 1995, P: 327-334). Individual taking in experience Learning from the expert condition is far not the same as the homeroom and instructive experience. On account of expert learning we learn aptitudes through direct down to earth draws near. We can likewise confront genuine guides to answer all the complexities and challenges (Atkins Murphy 1993, P: 1188-1192). My work inside pro psychological well-being learning handicap group truly included new edge as a part of my character it guided me how to function with individuals, deal with their troubles and how to determine clashes. Learning is an endless procedure, proficient learning gives open stage to keep our psyche sharp and help us to make the most out of the administration assets. It likewise improved my competency as a medical attendant, gave me enough certainty to confront testing circumstances. It is actually a bonanza of procuring and it additionally gave me sentiments of achievement (BUSH, MIDDLEWOOD, 2006, P: 396-398). Genuine learning Health study is a subject that thinks the enormous assortment of human experience of state of being, prosperity and disease. What I realized is social insurance work/explore does as such from a broad assorted variety of interdisciplinary and multidisciplinary perspectives. It altogether looks at wellbeing and sickness discourse and tries to analyze ev idence about wellbeing, prosperity and disease in an expansive assortment of settings and points of view (College of Occupational Therapists 1997). It thinks neighborhood, across the country, European and overall issues and may assess the information on people, gatherings, neighborhoods, human advancements and countries. It searches for to place in to this evidence through examination activity of numerous disparate sorts. Due to this possibly wide scope of the subject, individual focused projects will be distinctive in their demanding concerns and stress (COLEMAN, 2002). Troubles looked inside the Practice Within the network setting we ceaselessly confronted the complexities of understanding the assortments of group standards and referral forms. The absence of operational approaches, and established methods of working inside controls across administrations made it hard for positive change to happen (Boud D, et al. 1985). Thus the viability of the administration coordinated effort and shared learning was smothered. (DAVIES, ELLISON, 1997, P: 123-125). Now and again there were indications of discontinuity between the neighborhood authority and wellbeing administrations. The absence of comprehension of administration ethos would feature shortages especially around correspondence. Suggestions Making a Commitment to Partnership Working Achievement depends not on the complexity of our community oriented connections, structures and administrations yet on the wellbeing of the individuals we serve. At our administration, we have quickly received this perspective, changing our whole relationship with the Primary Care Services and Local Authority. Cash alone can't continue most network based administrations. Results additionally rely upon volunteerism. Projects will get by in the long haul on the off chance that they are continued by the decency of the human heart and the readiness of individuals to contribute their abilities as well as their time (DUIGMAN, MACPHERSON, 1992, P: 259-259). The execution of group supervisors going to administrations meeting inside the CTPLD benefits just as the psychological well-being administration to assistant correspondence was recognized. It was suggested that all new staff ought to have an intensive enlistment and invest energy with the individual groups inside the more extensive assistance to have a top to bottom comprehension of what each help gives over the administration levels. Assessment Programs We assembled an Operational Management Group that met consistently in the course of the most recent year. In spite of the fact that we proposed to receive a community oriented initiative style, the team, my staff and I were all veterans with LD administrations and we didn't effectively grasp the experience of joint effort with different administrations inside learning handicap essential consideration administrations. The procedure was new to all and needed clear points and targets. My own absence of persistence hangs out in my memory (DYER, 1995, P: 189-195). End After my over all training and learning the outcomes pinpointed some genuine concerns. Social help experts specifically revealed to us that the less lucky consider the to be framework as inert, unoriginal, and far off. As opposed to setting significance on the specialized quality and expansiveness of our administrations, as we may have suspected, they communicated an earnest requirement for authority administrations. The people group doesn’t need any new administrations, they said; what it needs is access to what as of now exists. This appraisal was alarming however valuable; moving us to move our procedure to what the network needs and needs. References Atkins S and Murphy K (1993): Reflection: a survey of the writing. Diary of Advanced Nursing 18, 1188-1192. Binnie An and Titchen A (1995): The craft of clinical management. English Journal of Nursing 4, 327-334. Boud D, Keogh R and Walker D (1985): Reflection: transforming experience into learning. Kogan Page, London. Consumes S and Bulman C (2000): Reflective practice in nursing. Blackwell Science, Oxford. Bramble, T MIDDLEWOOD, D. (2006) Leading and Managing People in Education. Sage Publications. P: 396-398 COLEMAN, M. 2002) Researching Educational Leadership and Management. London: Paul Chapman Publishing. School of Occupational Therapists (1997): Statement on management in word related treatment. London: COT. DAVIES, B and ELLISON, L. (1997) School Leadership for the 21st Century. Routledge P: 123-125 DUIGMAN, P. An and MACPHERSON, R. J. S. (EDS) (1992) Educative Leadership: Practicl Theory for Educational Administrators and Managers. Falmer Press. P: 259-259 DYER, W . G. (1995) Team building: current issues and new other options. London: Addison-Wesley. P: 189-195M Instructions to refer to Msc Reflective Essay Life Long Learning, Essays

Trusts Law Arguments by Jones Garton and Margaret Halliwell Essay

Trusts Law Arguments by Jones Garton and Margaret Halliwell - Essay Example The articles by current writers Jones Garton and Margaret Halliwell think about this wonder from a cutting edge point of view. They allude to the most notable cases in this field: Milroy v Lord, Re Rose, Pennington v Wayne and some others. So as to characterize the degree of trust in great/blemished blessings, it is pertinent to allude to extra perusing from earlier years and to current sources (Substantial Change in Trust Tax Law, 2006; Diamond, 2002). A confused nature of blessing is the nonattendance of agreement premise, I. e. there is no exceptional thought of blessing move (Langbein, 1995; McKendrick, 1992). Besides, if a supplier neglects to finish required conventional stages or has no lawful title, blessing may fall flat. Courts allude to the by and large acknowledged witticism in this sort of cases: â€Å"equity won't immaculate a flawed gift† (Langbein, 1995). Therefore, there are a great deal of contentions showing up in trust cases. That’s why it is pertine nt to examine a reasonable nature of trust. At the end of the day there is a need to think about its hypothetical premise and down to earth execution. A thought about constitution of trust is a strikingly talked about issue for scholastics and scientists, in light of the fact that commonsense usage of trust in believes law is fairly uncommon. The trusts law has some particular highlights, which must be talked about in detail. The most striking issue is that move may happen regardless of whether all conventions were not followed. Re Rose case is notable with this respect and there is even a name for ‘Re Rose’ guideline taken after the case. For this situation the settlor moved offers in a privately owned business for specific trusts. In any case the authority of the organization didn’t register move on the double and the inquiry which must be comprehended by court was the point at which the offers were moved. The date of settlor’s choice to move the offers was acclaimed to be the applicable date of move. This guideline was examined in different cases too (Cunningham, 1992, p. 63). Pennington v Wayne is another fascinating case for conversation. For this situation the idea of unconscionability shows up and the court believes this idea to be an essential reality for the situation conversation. This idea was underestimated as a definitive point in light of the fact that not all customs were followed during the time spent blessing move. Jones Garton’s article The articles by Garton and Halliwell present two perspectives on property and protections move component. It is applicable to take note of that both of these creators recommend fascinating contemplations about trusts law with regards to England. Jones Garton joins the thoughts on trust gathered from extra sources and law cases. He talks about constituent nature of trust. Operational systems of trust are centered around the primary case that â€Å"equity won't deduce an ideal trust from a blemished gift† (Garton, 2003). The essential case was taken from Milroy v Lord (1862) case, from increasingly contemporary case Pennington v Waine (2002) 1 WLR 2075. As per Garton there are various standards in the standard of the ‘last act’ which sets up constitution and its application. Garton’s work dazzles perusers by his contemplations about the ‘workings’ of trusts in Rose’s case which are express and useful. In this way it is unmistakably observed that Garton is keen on an idea of trust in flawed blessings.

Analysis of Dr. Martin Luther King’s “I Have a Dream” Speech Free Essays

Nhat Nguyen Patrick Clayton Cantrell English 1010-051 23 October, 2012 Analysis of Dr. Martin Luther King Jr. ’s â€Å"I Have a Dream† Speech Amidst the dogmatism and racial brutality of the Civil Rights Movement, there stood a brilliant illustration of fellowship, solidarity, and an undying hunger for uniformity. We will compose a custom paper test on Examination of Dr. Martin Luther King’s â€Å"I Have a Dream† Speech or on the other hand any comparative point just for you Request Now In what was known as the March of Washington, an expected aggregate of 200,000 individuals of all racesâ€observers assessed that 75â€80% of the marchers were dark and the rest wereâ whiteâ and non-dark minoritiesâ€took to the boulevards of Washington D. C. on August 28, 1963 of every a push to bring issues to light of the continuous racial unfairness in the work field and in regular day to day existence. It was on this earth shattering day that the incomparable Martin Luther King Jr. , one of the most remarkable and compelling voices of the Civil Rights Movement, gave one of history’s most significant addresses. His discourse, later came to be known as the â€Å"I Have a Dream† discourse, served to bring into light the unfairness experienced every day by the African American populace of the United States. In his acclaimed discourse, King plot the racial segregation and social imbalances that occupy the extraordinary nation whose ideology unequivocally states â€Å"all men are made equivalent. † This established the primary reason for his discourse: to support and engage the participants and those at home to challenge the far reaching separation and the norm of the time. Bias had a stranglehold on all parts of life during the Civil Rights time. From adolescence, racial subjects and themes were inserted into the very being of the youngster. A plenty of outcomes emerged from this. Whites normally matured into adulthood with the conviction that racial prevalence had a place over them as a result of the shade of their skin. Most African Americans, then again, grew up with convictions particularly conflicting to those of their white partners. Many matured with the assumption that racial mediocrity went with being dark. Martin Luther King, in his discourse, tried to end this extremist way to deal with race by urging his crowd to transcend what they once acknowledged as a social standard and be the light that would lead that age out of visually impaired contempt for their individual an. He lectured fraternity and fairness and jolted the group when he requested the prompt acknowledgment of the â€Å"promises of democracy† (King). He aroused the group to revolt from the dull, confined â€Å"valley of segregation† and go into the â€Å"sunlit way of racial justice† (King). He shut this segment of his discourse by and by repeating the significance of quick activity. He called for equity for the entirety of humankind, be they dark, white, or some other race. Other than the conspicuous truth that he was addressing the crowd present, King’s discourse was intended for an a lot more extensive crowd. In particular, his discourse was focused at the individuals who wanted to proceed with the financial and social abuse of African Americans. This could obviously be seen when King states, â€Å"And the individuals who trust that the Negro expected to let out some pent up frustration and will currently be substance will have a severe shock if the country comes back to business as usual† (King). In this sentence, King concentrated his words against â€Å"those. â€Å"Those† are the individuals who kept on dismissing African Americans as equivalents. Lord needed to make it realized that he and millions the same would not stop until equity was managed and majority rule government rang through the land. In another express model, King talks legitimately to â€Å"those† once more. â€Å"There are the individuals who are soli citing the fans from social liberties, ‘When will you be fulfilled? ’† (King). He proceeds to respond to this inquiry by saying that he and other social equality activists will never be fulfilled insofar as foul play and segregation stay an equal piece of the United States’ culture. He guaranteed the individuals whose expectations were to genuinely, intellectually, and monetarily stop African Americans that America won't experience rest or serenity until every dark man, ladies, and youngsters are allowed their privileges as residents. The discourse was as much a message to those abused as it was to the oppressors. Martin Luther King’s discourse was very much arranged regarding agreement, with each earlier point streaming amicably into the following. It was sorted out into equal parts. The main half depicted American culture as a cesspool of prejudice, bigotry, and close-mindedness, and it likewise uncovered the incongruence between the subjects of the American Dream and the enduring of African Americans. In the principal half of the discourse, King called for activity to mitigate these abrogating topics in American culture. In his â€Å"now is the time† passage, King stressed to the crowd that the ideal opportunity for activity is presently and dismissed gradualism. In his â€Å"we can never be satisfied† passage, he set the conditions that must be met before he and others like him can rest. The second 50% of the discourse delineated the fantasy of a more attractive, increasingly immaculate association, liberated from the shackles of isolation and racial disunity. In the most critical piece of the discourse, Martin Luther King broadly prevented perusing from his composed discourse and started to talk truly of his â€Å"dream† concerning the fate of America. In the piece of the discourse that turned into its namesake, King over and over cries the expression, â€Å"I have a dream† (King). In a concise 3-minute time span, King gave one of history’s most delightful bits of talk, calling tumultuous cheers from the majority of individuals. Ruler finished up his perfect work of art by articulating to the group his vision of a majority rule America, liberated from the chains of bias. His fantasy was that people from all sides of societyâ€different in shading, culture, and beliefsâ€could one day assemble in solidarity with deference for each other. His exhaustive utilization of similitudes, symbolism, and redundancy served to convince the crowd to stay idealistic and loyal despite preference and gloom. He requested enormously to the crowd’s sense feeling and rationale. He likewise stunningly utilized anaphora and suggestions on a few events in his moving discourse. From under the shadow of the Lincoln Memorial, King fittingly started his discourse suggesting Lincoln’s renowned Gettysburg Address. He began by saying â€Å"five score years ago† (King). This helped with setting the state of mind for the remainder of the discourse and was especially strong since King was talking from the means on the Lincoln Memorial. Ruler additionally insinuated the Declaration of Independence when talking about â€Å"the unalienable privileges of life, freedom, and the quest for joy. This inference intensely repeated America’s guarantee to every one of her kin. There are a few references to Biblical entries in the discourse. Maybe one of the most prominent was when King cautioned the oppressors of social liberties that he and everybody who tested separation will never give up until â€Å"justice moves down like waters, and nobility like a powe rful stream† (King). This was reference to Amos 5:24. It advanced stunningly to the audience’s feelings, working up yells of â€Å"hallelujah† inside the group. Analogies were utilized all through the discourse to help underline and here and there overstate the ppression experienced by the African American populace during that time. Lord every now and again contrasted segregation with a forsaken valley and the way to racial equity as a â€Å"sunlit† one. He would frequently portray persecution as a singing warmth to escalate the agony that it caused. He depicted African Americans’ poor financial situation as a â€Å"lonely island of prosperityâ in the middle of a huge expanse of material prosperity† (King). This emphasizd the circumstance that African Americans were in. Lord joined anaphora and redundancy in his discourse so as to pressure the significance of key subjects. One of the lesser realized anaphora utilized was King’s redundancy of â€Å"one hundred years later† (King). Here, King alluded to the way that 100 years after the marking of the Emancipation Proclamation, his kin are still hampered by the heaviness of imbalance. He rehashed the expression â€Å"now is the time† (King) trying to motivate the crowd to act quickly and to request change that example. The most acclaimed and regularly refered to anaphora utilized was the redundancy of the expression â€Å"I have a dream† (King) In that section King uncovered his vision of a superior tomorrow for America. He expressed that despite the fact that he faces troubles, he despite everything kept up that fantasy. This assisted with fortifying this bit of his discourse hugely. On August 28, 1963, Dr. Martin Luther King Jr. gave one of history’s most wonderfully executed bits of talk. The language fused in the discourse passed on King’s message to America: challenge segregation and the state of affairs and make progress toward an equivalent society. This will live on as one of King’s most prominent commitments to the progression of social liberties. Today, it stays a noteworthy piece of King’s inheritance. Step by step instructions to refer to Analysis of Dr. Martin Luther King’s â€Å"I Have a Dream† Speech, Papers

The Act of Writing in Tennyson’s ‘In Memoriam’ and Thackeray’s ‘Going to See a Man Hanged’ - Literature Essay Samples

Winston Churchill said that ‘the truth is incontrovertible’. This statement construes ‘truth’ as an absolute concept, where there is only one truth, and anything else is by definition a non-truth. Tennyson’s In Memoriam and Thackeray’s ‘Going to see a Man Hanged’ are certainly diverse in their genres; Tennyson’s words are a profound ode to a lost friend, whereas Thackeray’s article is a satirically disgusting account of a public event. Yet, both their acts of writing seek a truth, and not the absolute definition that Churchill specifies. Thackeray’s truth is based on presenting an accurate account of an event; it is literally telling the truth of what he sees before him, translating sight to word with little creative interpretation. Tennyson differs from this. His writing is not based on what he sees, but the grief he feels, and his truth is in being able to aptly express this when there seems no words fit to s hape his emotions. Yet, another writer may express the same grief differently, or may indeed react differently to publicly viewing a man hanged. Therefore, perhaps the truth can only be incontrovertible to the person who expresses it. It is a truth specific to them, yet may not exist as a universal, absolute truth. By creating a poem that resonates grief, Tennyson is simultaneously liberated and restricted through the use of words in In Memorium. They exist as a medium of confession, yet he also struggles to find the words that will allow him to truly express the extent of his mourning. T. S. Eliot commented that In Memoriam was ‘a concentrated diary of a man confessing himself.’ And it is extremely interesting to consider this ode as a ‘diary’. It positions the readership as almost voyeuristic, as if we are peeping in to a private account. This notion is furthered by partially religious language; Tennyson must ‘[confess] himself’ as if to a priest, as if through admitting emotion, he is also admitting to a sin. This perhaps exists as a slight awareness of the social conditions of a Victorian England, where it was arguably considered less masculine to express weakness through feeling. Yet, this idea of the ‘diary’ is also limited. Instead of s tudying what is written, it is almost more important to consider what has not been written, what Tennyson has not confessed. He struggles so to define his grief through words that it is a less of ‘confession’ of how he truly feels, and more an exploration of his unanswered agony. Tennyson describes how powerless words currently seem to him: ‘A use in measured language lies/ The sad mechanic exercise.’ This truly expresses Tennyson’s frustration; words, and writing are no longer enough for him. Language has the ability to create entire worlds out of merely imagination, yet now it is ‘measured’. Perhaps this suggests that words, in reality, have a pre-conceived mould and only a certain emotion can be expressed through each. For example, the word ‘sad’ cannot reach the depths of Tennyson’s damage. However, this idea of ‘[measure]’ could also arguably be a momentary relief. As a word is limited in it’s expression of emotion, a complete lack of control is not possible, and it presents well-needed boundaries on grief that may have previously not existed. In Tennyson’s struggle to use words as a vessel of expression, there is also a subsequent questioning: once Tennyson has shaped these meaningful words in to a poem, can the reader then understand the full extent of his pain? If so, this presents a separation of understanding between author and reader. And this is a motif that is repeated throughout the poem’s form. Tennyson experiences a ‘mechanic exercise’ through a monotonous life without his beloved friend, yet is also mechanic in his repeated quatrains of tetrameter. Tennyson uses the same rhythm and structure throughout, using merely different words. Thereby, he repeats the same patterns of grief until he hopes they will come to represent something different. In Memorium therefore arguably refuses to exist as a ‘confession’; there are si mply no words capable to warrant this label. His odes remain simply ‘just words’ (Tennyson, p.102). In comparison, Thackeray’s ‘Going to See a Man Hanged’ uses the act of writing to record, not explore emotion. Words are used to organise reactions, not explore their emotional meaning. Yet, even this simple act of writing can be interpreted, and Thackeray interrupts the narrative to insert something similar to a disclaimer. He makes a claim to the truth, in it’s definition of being an accurate record of events: At least, such was the effect the gallows first produced upon the writer, who is trying to set down all his feelings as they occurred, and not exaggerate them at all†¦ (Thackeray, p. 151) Arguably, the most important, and noticeable, literary technique is the shift in narrative person. The account is written in first person, yet here Thackeray shifts the narrative perspective to the third person. It is almost reminiscent of a witness in a court, swearing on a bible that he will tell nothing but the truth, exaggerating the importance that he does record the truth. In almost direct antipathy to Tennyson’s exploration of each individual emotion, Thackeray’s focus is more on identifying each, and the order in which they are experienced. Perhaps this suggests that there is a set way to react to such an event, and Thackeray attempts to emulate this emotional process. Yet, this process of accurately representing the order of reaction can only ever be an attempt. He claims to write down ‘all his feelings as they occurred’, yet the act of writing, despite the tense, will always approach events and feelings are retrospective. The short moment between experiencing these emotions and recording them deems them already a memory, perhaps suggesting that any act of writing cannot wholly be the ‘truth’ of what happened, or what a person experienced. Furthermore, Thackeray makes a subtle, but important, distinction between his genre and poems such as In Memorium. The narrator claims he will not ‘exaggerate’ his feelings, perhaps suggesting that other genres do exaggerate them, to a fanciful effect. This splits his genre from fiction, and makes it a more realistic piece, as it once again claims his account is the truth. To conclude, Thackeray’s narrator seems so focused upon the truth of the events and their order that he temporarily interrupts the narration. This disclaimer almost suggests the opposite. Not only does Thackeray’s claim to truth suggest that he is, in fact, untruthful, but it seems superfluous. He claims to translate the events to paper as soon as they happen, yet pauses to speak di rectly to the readership. Therefore, not only does Thackeray’s factual truth differ from Tennyson’s emotive, but it is still a feat that, despite claims, is difficult to achieve. As previously explored, words in Tennyson’s In Memorium become wholly inadequate to describe such a grief. In a manner, Thackeray adopts the same stance; language becomes a secondary medium compared to sight. The concept of witnessing is incredibly important in ‘Going to See a Man a Hanged’. The first person narrative acts as the witness, then relays the scene for the readers to also act as witnesses. However, this proves difficult, and it is undeniable that such a sight will cause more of an impact when seen, rather than read. A particular moment emphasises this, when the narrator begins to feel the psychological effects of seeing a man publicly die. He ‘had the man’s face continually before [his] eyes’ (Thackeray, p. 158). This type of reaction can obviously only stem from one who directly witnessed the event; the reader can imagine his horror, but can never experience it to this potent extent. His utter revulsion is emphasised by a sense tha t the image will never recede –it is ‘continually’ in his mind’s eye –and that he is almost being punished for standing witness to such an abhorrence. Therefore, whilst the narrator witnesses and records the event first hand, the reader can never full be aligned with the narrative. They are forced to interpret an intense emotional experience second hand, not feel it. Yet, Thackeray refuses to directly admit the inadequacy of language as Tennyson does. Instead, he substitutes language with words from other scenarios; he uses metaphors, arguably a step away from any realism he previously claims. For example, the event is described as ‘butchery’ (Thackeray, p.158), a particularly primitive and gruesome manner in describing bloodshed. The man who has been hanged is reduced to a pig, strung up on show for the crowd to judge. Another technique used by Thackeray is to forgo words altogether. Between two passages, he has inserted a symbol of th e gallows. This symbol allows a break in the narration; the narrator has stopped recording, as the reader stops reading. The gallows have a universal meaning, and it is this knowledge of what they are used for that creates such a bleakness. Fundamentally, it is only a block drawing of a wooden structure. Yet, it has a possibility to take away life, and this is almost terrifying to consider in an account where thus far the only images constructed have been imaginary. Therefore, when the appropriate language becomes insufficient, Thackeray merely borrows words from different scenarios, or refuses to use them at all. And this is such a powerful technique; it depends almost as much on what is not said than what is. As it has been previously explored, both Thackeray and Tennyson express –albeit in different manners –that the act of writing is inadequate in translating either their inner workings or outer sights. Yet, it is arguable that it is not words that are insufficient, but perhaps the expectations of the narrator. Thackeray states that he wishes to present both clarity and truth, yet consequently expects the reader to feel as acutely as he does, despite the fact they are witnessing through words, not sight. Similarly, no words can describe the grief Tennyson feels in In Memorium. Yet, the only way they could fulfil this would be if they offered not only explanation but also absolution. It is as if Tennyson almost expects the act of writing to heal his woe, to fill the gap left by Hallam. Both writers aim for impossibilities, and this creates a constant tension between the imaginative power of language, and the bleak reality that writing is merely putting ink to paper. Bibliography Killham, John, ed., Critical Essays on the Poetry of Tennyson (Great Britain: Routledge Ltd, 1960) Tennyson, Alfred, In Memoriam, Maud and other poems, ed. by John D. Jump (London: J.M Dent Sons Ltd, 1974) Thackeray, William Makepiece, ‘Going to See A Man Hanged’, Fraser’s magazine for town and country, 128 (1830-1869) 150-158 Welsh, Alexander, ed., Thackeray: A Collection of Critical Essays (New Jersey: Prentice-Hall Inc., 1968)

Capital Structure And Profitability Relationship For Ftse Firms - Free Essay Example

The capital structure of a firm has long been a much debated issue for academic studies and in the corporate finance world. It is the way a firm finances its assets through some combination of equity, debt, or hybrid securities the composition or structure of its liabilities. In reality, capital structure may be highly complex and include various sources. The question whether capital structure affects to the profitability of the firm or it is affected by profitability is crucial one. Profitability and capital structure relationship is a two way relationship. On the one hand profitability of firm is an important determinant of the capital structure, the other hand changes in capital structure changes affect underlying profits and risk of the firm. Traditionally it was believed that the debt is useful up to certain limit and afterwards it proves costly. There is an optimum level of capital structure exist up to that level increasing debt will improve profitability, beyond that it will reduce profitability. In 1945, Chudson carried out an extensive study that implies the possibility of a relationship between the capital structures practised by a firm with its profitability. The question he endeavours to answer was that, à ¢Ã¢â€š ¬Ã…“In what way does the structure of assets and liabilities of a firm reflect the kind of industry in it is engaged, its size and level of profitability?à ¢Ã¢â€š ¬? In 1958 Merton Miller and Franco Modigliani in their famous Miller-Modigliani (MM) propositions put forward the net operating income approach of and demonstrated that the capital structure is irrelevant in a perfect market. It states irrelevant of capital structure in a perfect market to its value, hence, how a firm is financed does not matter. The MM propositions forms the basis for modern thinking on capital structure, though it is generally viewed as a purely theoretical result since it is based on perfect market assumptions those are not prevailing in practice. The matter of capital structure has gained much interest and controversy, since the MM Propositions which assert that the value of a firm is independent of its capital structure. The hypothesis proposed by MM created tidal waves in the corporate finance academia. Different theory such as packing order theory and agency cost theory were proposed. Various aspects of capital structure have been put to test and researched by so many researchers. The question is if the capital structure is really irrelevant in a real market and whether a companys profitability and hence value is affected by the capital structure it employs? If not, why capital structure is relevant and which factors make the leverage matter? Apart from profitability, some other factors such as bankruptcy costs, agency costs, taxes, and information asymmetry are considered in determination of capital structure. This study aims and attempts to extend the knowledge of capital structure and profitability relationship in listed UK companies. This analysis can then be extended to look at whether there is in fact an optimal capital structure exist the one which maximizes profitability and hence the value of the firm. 1.1 Context and relevance of the Study The topic of capital structure has been widely explored, though the study is relevant in the different time period and different context to find out whether the evidence concerning the capital structure issue and its various aspects are relevant to a given set of companies in a given period. Given this significance, current study attempts to understand and research on capital structure and its effect on profitability, of large firms in UK in the present context for a period of five years (2005 -2010). Thus, this study attempts to contribute to the research on capital structure in the recent period for large publicly traded companies on FTSE 100. 1.2 Research Objectives The present study is aimed at achieving one main and two secondary objectives. The main objective is to scrutinise the relationship between the capital structure and profitability of the large publicly traded UK firms and to ascertain whether a firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s profitability is related with its capital structure or not based on the empirical evidence generated. Secondly, this study would attempt and investigate to determine if any optimal capital structure exist among the sample of FTSE 100 listed companies. Third objective is to find out any trend of capital structure being exhibited by the UK companies. 1.3 Research Questions and Hypothesis The above objectives are translated in two research question. The main research question is that à ¢Ã¢â€š ¬Ã…“whether a firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s profitability is related with its capital structure or not?à ¢Ã¢â€š ¬? based on the empirical evidence generated. Hypothesis The first questions can be presented as following hypothesis. The present study shall be undertaken to evaluate this hypothesis based on the tests of the null hypothesis. H1: The profitability of a company is significantly correlated to its capital structure. H0: The profitability of a company is not significantly correlated to its capital structure. The secondary objectives of this study are translated in the determinant question regarding the optimality and trend of capital structure. The second question, will be discussed descriptively is that, Is there an optimal capital structure exists among or any trend of capital structure being exhibited by FTSE 100 listed companies? 1.4 Scope and Limitations of the Study Scope This is an academic study that would shed some light on the matter of capital structure which has been discussed in various different perspectives since the MM propositions. The significance of this study is that it further enhances the research into capital structure of listed firms in UK. Profitability and Capital structure relationship is an ongoing issue and its relevance may change in different period because of the changes in macro and micro economic factors. For practitioners and corporate finance people such as finance executives, controllers and directors of listed firms, this study is relevant and of much interest to get insight of the capital structure and whether it has any effect on the profitability. Limitations The findings of this study will be limited from the following aspects: This study included only FTSE 100 listed firms on the London Stock Exchange (LSE). Hence, its findings were not applicable for all the listed companies in UK. The sample of listed companies for this study included only firms with at least five years of financial data. Firms which are younger than five years or whose five year data could not be obtained will not be included in this study. The study excludes financial utility and other highly regulated industry to avoid any distortions in the result due to industry specific requirements. The cross sectional correlation and regression analysis will be performed using excel formula. CHAPTER 2 LITERATURE REVIEW The various capital structure theories are developed by corporate finance academia for analysing how a firm could combine the securities to maximise its value. The Modigliani and Miller (MM) proposition (1958) were introduced under the perfect capital market assumptions. It refers to an ideal market where there are no taxes at both corporate and personal level, no transaction costs, no agency costs as and managers are rational. It further assumes that investors and firms can borrow at the same rate without restrictions and all participants have access to all relevant information. Thus it provides conditions under which the capital structure of a firm is irrelevant to total firm value. Most of studies focus on the determination of capital structure i.e. to what extent each of the assumptions in the MM model contributes to the determination of the firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s capital structure. Many theories such as the pecking order theory, the trade-off theory and the agency cost theory have been developed. Though much attention was not given to one major aspect of the capital structure, which is the impact of the value of the firm. The value comes from the future cash flow i.e. profit of the firm. Thus capital structure affects value of the firm through the profitability and hence there is a direct relationship between the capital structure and profitability of the firm. Capital Structure The term capital structure can be defined as: à ¢Ã¢â€š ¬Ã…“The mix of a firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s permanent long-term financing represented by debt, preferred stock, and common stock equity.à ¢Ã¢â€š ¬? (Van Horne Wachowicz, 2000, p.470) It can be defined as à ¢Ã¢â€š ¬Ã…“The mix of long-term sources of funds used by the firm. This is also called the firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s à ¢Ã¢â€š ¬Ã…“capitalizationà ¢Ã¢â€š ¬?. The relative total (percentage) of each type of fund is emphasized.à ¢Ã¢â€š ¬? (Petty, Keown, Scott, and Martin, 2001, p.932) One of the exhaustive and inclusive description was given by Masulis (1988, pl): à ¢Ã¢â€š ¬Ã‹Å"Capital structure encompasses a corporationà ¢Ã¢â€š ¬Ã¢â€ž ¢s publicly issued securities, private placements, bank debt, trade debt, leasing contracts, tax liabilities, pension liabilities, deferred compensation to management and employees, performance guarantees, product warranties, and other contingent liabilities. This list represents the major claims to a corporationà ¢Ã¢â€š ¬Ã¢â€ž ¢s assets. Increases or reductions in any of these claims represent a form of capital structure change.à ¢Ã¢â€š ¬? However in this study, for the sake of simplicity, the capital structure will be analysed in term of debt and equity in line with other prominent capital structure studies and theories restricted to the debt equity mix. Profitability The term profitability is a very common term in the business world. It refers to an all round measurement and indicator for a firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s success. Profitability can be defined as the ability of a firm to generate net income or profit on a consistent basis. It is often measured by price to earnings ratio. The accounting definition of profit can be given as the difference between the total revenue and the total costs incurred in bringing to market the product i.e. goods or service. Hence, profitability had come to mean different things for different people. It can be defined and measured in several ways depending on the purpose. It is a generic name for variables such as net income, return on total assets, earnings per share, etc. though the simplest and common meaning of profitability is the net income. 3.1 Early Study on Capital Structure by W A Chudson One of the earliest comprehensive researches into capital structure of business firms was done by Chudson Walter Alexander (1945) on a cross section of manufacturing, mining, trade, and construction companies in the US from the year 1931 to 1937. Although it has been more than two third of a century, that study is still relevant today as before due to the seven questions which he endeavoured to answer. Out of those questions the relevant to this study are as follows. In what way does the structure of assets and liabilities of a given concern reflect the kind of industry in which a concern is engaged, the concernà ¢Ã¢â€š ¬Ã¢â€ž ¢s size and level of profitability? Are there any elements in the corporate balance sheet, either on the asset or the liability side, whose range of variation is so narrow that it is possible to speak of a à ¢Ã¢â€š ¬Ã…“normalà ¢Ã¢â€š ¬? pattern of financial structure? The questions posed by Chudson could be interpreted into the research questions pertinent to this study which are the relationship between profitability and capital structure, the existence of an optimal capital structure, and also the trend of capital structure being practised by a sample of firms. Chudsonà ¢Ã¢â€š ¬Ã¢â€ž ¢s research showed there were undisputable relationships between corporate financial structure and the firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s profitability. As far as this study is concerned, Chudson had successfully proved the relationship between the profitability of a company with various capital structure variables including debt and equity capital. 3.2 M M Propositions In 1958 Merton Miller and Franco Modigliani in their famous Miller-Modigliani (MM) propositions put forward the net operating income approach of and demonstrated that the capital structure is irrelevant in a perfect market. Accordingly, the first Proposition holds that the value of a firm is independent of its capital structure. While the second proposition stats that when first proposition held, the cost of equity capital was a linear increasing function of the debt/equity ratio. As miller wrote subsequently these propositions implied that the weighted average of these costs of capital to a firm would remain the same no matter what combination of financing sources the firm actually chose. (Miller, 1988) In 1962, Barges tested and evaluated the MM propositions predominantly on the validity of the hypothesis that the cost of capital to the firms is unaffected by capital structure. According to Barges (p. 143): à ¢Ã¢â€š ¬Ã…“With respect to the empirical methods employed by MM it was found that, under very frequently encountered conditions, their methods will result in tests which are biased in favour of their propositions and biased against the traditional views.à ¢Ã¢â€š ¬? Barges had empirically proved the existence of some weaknesses in the research design and methodology of Modigliani and Millerà ¢Ã¢â€š ¬Ã¢â€ž ¢s study and concluded that (p. 147) à ¢Ã¢â€š ¬Ã…“Thus, on the basis of the evidence presented herein, the hypothesis of independence between average costs and capital structure appears untenable.à ¢Ã¢â€š ¬? Subsequently many studies were conducted with focus on the determination of capital structure and many theories were presented. 3.3 Profitability and Leverage theories Since MM propositions presented, many studies were conducted by releasing MM assumptions focusing on the extent to which each of the assumptions contributes to the determination of the firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s capital structure. All these theories explains the relationship between leverage and the value of the firm and hence profitability of the firm. There are various theories in order to further explain this relationship. Nevertheless, these theories are actually based on asymmetric information (Myers, 1984), tax deductibility (Modigliani and Miller, 1963; Miller 1977), Bankruptcy costs (Stiglitz, 1972; Titman, 1984) and agency costs (Jensen and Meckling, 1976; Myers, 1977). Two main theories are the pecking order theory and the trade off theory. Pecking Order Theory The Pecking Order Theory is based on information asymmetry between management and investors. So, the stock price of a firm may not reflect correct value of the firm. Myers and Majluf (1984) and Myers (1984) suggest that management issue the security which is overvalued and therefore, undervalued firms tend to avoid issuing equity. They argue that in imperfect capital markets, leverage increases with the extent of information asymmetry. They provided theoretical support to Donaldsonà ¢Ã¢â€š ¬Ã¢â€ž ¢s (1961) findings that firms prefer to use internally generated funds as a financing source and resort to externals funds only if the need for funds was unavoidable. According to (Myers 1995), the dividend policy is à ¢Ã¢â€š ¬Ã…“stickyà ¢Ã¢â€š ¬? and the firms prefer internal to external financing. Firms prefer using internal sources of financing first, then debt and finally external equity obtained by stock issues. Therefore, asymmetric information models seldom point towards a well-defined target debt ratio or optimal capital structure. All things being equal, the more profitable the firms are, the more internal financing they will have, and therefore we should expect a negative relationship between leverage and profitability. The various studies such as Ross (1977), and Myers and Majluf (1984), Harris and Raviv, 1991; Rajan and Zingales, 1995; Booth et al., 2001have supported this relationship that is one of the most systematic findings in the empirical literature. Agency Costs Theory The Agency Costs Theory (Organizational Theory of Capital Structure) emphasize that capital structure was influenced by conflicts between shareholders and managers, and between debt holders and equity holders. Major study into this area was done by Jensen and Meckling (1976) that showed managersà ¢Ã¢â€š ¬Ã¢â€ž ¢ natural tendency to extract too many perquisites and stresses on self-interested behaviour. Obviously, agency costs would increase as the managersà ¢Ã¢â€š ¬Ã¢â€ž ¢ personal ownership stake in the firm decreases. This supplied an argument for debt financing and against à ¢Ã¢â€š ¬Ã‹Å"publicà ¢Ã¢â€š ¬Ã¢â€ž ¢ equity which was contributed by non management investors who cannot monitor management effectively. Fama and Miller (1972), using agency cost theory, proved that leverage was positively associated with firm value. Firms with longer credit histories would have lower cost of debt. The Trade of theory The trade-off theory is based on the considerations of benefits and the costs of debt. This theory argues that firms optimise their capital structure by trading the tax deductibility of interests, bankruptcy costs, and agency costs. This theory is consistent with traditional approach of capital structure. This theory leads to an opposite conclusion. Accordingly if the firms are profitable, they should prefer debt to benefit from the tax shield. Further as the past profitability is a good proxy for future profitability, profitable firms can borrow more because the likelihood of paying back the loans is greater. However after a certain level of leverage, the profitability and the value of the firm will reduce due to interaction of bankruptcy costs and agency costs. 3.4 Various Studies on Capital Structure As the issue of capital structure gained prominence and interest, a number of studies had been done over the years to explore the relationship between capital structure and a firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s various characteristics e.g. growth opportunities, non-debt tax shields, firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s volatility, asset systematic risk, asset unique risk, internal funds availability, asset structure, profitability, industry classification, and firm size. This study is concerned particularly on the relationship between capital structure and profitability. Most of the studies had concluded that capital structure measured by debt/equity ratio had an inverse relationship with profitability measured by Return on Investment (ROI). Professor Myers of MIT had written in 1995 that à ¢Ã¢â€š ¬Ã…“the strong negative correlation between profitability and financial leverageà ¢Ã¢â€š ¬? is one of the à ¢Ã¢â€š ¬Ã‹Å"most striking facts about corporate financingà ¢Ã¢â€š ¬? (p.303). It is worthy to mention here that the aforesaid studies were the most comprehensive ever carried out in the US. One significant research was conducted by Bradley, Jarrell and Rim (1984) using Ordinary Least Squares method to analyze the capital structure of 851 industrial firms over a period of 20 years (1962-81). They concluded that an optimal capital structure actually existed as proposed by finance theorists. Bradley, Jarrell and Kimà ¢Ã¢â€š ¬Ã¢â€ž ¢s findings were supported by El-Khouri in 1989 who studied a sample of 1,040 Companies in US from 27 different industries covering a period of 19 years (1968-86). El-Khourià ¢Ã¢â€š ¬Ã¢â€ž ¢s major findings were that there exists an optimal capital structure, and profitability was significantly but negatively related to capital structure. 3.5 Rajan and Zingalesà ¢Ã¢â€š ¬Ã¢â€ž ¢ Study Rajan and Zingales (1995), in their study of determinant of capital structure find that profitability is negatively or inversely related to gearing consistent with Toy et al. (1974), Kester (1986) and Titman and Wessles (1988). Given, however, that the analysis is effectively performed as an estimation of a reduced form, such a result masks the underlying demand and supply interaction which is likely to be taking place. More profitable firm will obviously need less borrowings, although on the supply-side such profitable firms would have better access to debt, and hence the demand for debt may be negatively related to profits. Most of such studies were conducted in US using local companies and hence represents financing and profitability relationship in US economy and might not be applicable in other countries around the globe. Some of the studies conducted in UK as well though changing business and economic environment and time period may have their impact on such capital structure and profitability relationship. Further as discussed earlier much attention was not given to one major aspect of the capital structure, which is the impact on the profitability and hence the value of the firm. So understanding the effect of capital structure on the profitability and hence the value of the firm in the current economic and business environment is the main motivation for this study. CHAPTER 3 RESERCH FRAMEWORK I intend to use two major sets of variables (Ratios) i.e. Debt and Profitability to ascertain the relationship between the capital structure and profitability. The first set includes Gearing ratios Debt/Equity Ratio and Debt Ratio. The other set includes profitability ratios Return on Equity, and Return on Assets. The variables will be analyzed using the descriptive/time-series Correlation and regression technique. 2.1 Data Sample The data used for the empirical analysis will be derived from Hemscott database contains balance sheet, profit and loss and certain Key Ratio information for FTSE 100 companies in UK. For the purposes of this dissertation, I expect to utilise this data to obtain the required variables for all non-financial companies. 2.2 The Model and Research Methodology The following model outlines the framework for research. It consist two major components i.e. the profitability of a firm as the dependent variables and the capital structure of a firm as the independent variables. The arrow pointing to the right indicated the expected direction of causality. However profitability and capital structure relationship is a two way relationship. DEBT RATIO ROE DEBT/EQUITYRATIO ROA The model gave the foundation for analysis which was to explain the relationship among the two main groups of variables. In as much as possible, variables will be selected on the basis of the literature being reviewed. Thus, while this study is expected to give exciting results, there will be direct ties to earlier studies although may reflect the changing requirements of the time. One prominent issue here is the direction of the causality in the model. This research is based on the notion that the capital structure being practised by a firm would affect its profitability. This particular cause-and-effect relationship had been proved in various studies as found in the literature being reviewed. Though it should be kept in mind that there were a number of researchers who had argued that it was profitability which would influence the capital structure (Chudson 1945, Lamothe 1982, Bowen, Daley and Huber 1982). However, it is not within the scope of this study to determine the direction of causality in this particular relationship but rather to focus on the significance of such a relationship. 2.3 Variables In the first instance, great care was taken to define the dependent and independent variables to be used in the descriptive, co variance and regression analysis. As there are several alternative measures of profitability and gearing, only relevant measures are chosen for this cross-sectional analysis. Dependent Variable Profitability is dependent variable in this analysis and two measures of profitability employed in this analysis are Return on Equity (ROE) and Return on Assets (ROA). ROE is the return on equity and is measured as earnings before tax (EBT) divided by ownersà ¢Ã¢â€š ¬Ã¢â€ž ¢ capital or equity. ROE = EBT/EQUITY ROA is return on assets and is measured as earnings before interest and tax divided by total assets (Titman and Wessels, 1998; Fama and French, 2002 and Flannery and Rangan, 2006). The ratio of earnings before interest and tax (EBIT), to the book value of total assets (TA) ROA = EBITDA/TA Independent Variables Gearing Ratio represents capital structure. Therefore, in order to examine the sensitivity or otherwise of their cross-sectional results to the profitability following two ratios are used in this analysis and defined as: Debt to Total Assets: This is a simple ratio of total debt to total assets DEBT RATIO= TD/ TA Debt to Equity Capital: This is the ratio of total debt to capital, with the capital calculated as total debt plus equity, including preference shares. DEBT/EQUITY RATIO = TD / (TD + ECR + PS) PS the book value of preference shares. Research Plan and Implementation Schedule Research work starts from week beginning from October 4, 2010 and is expected to complete in 10 weeks time. The work is scheduled as follows. Research Plan Week Star Date : 04-10-2010 Week 1 2 3 4 5 6 7 8 9 10 Background reading and literature review X X Research design and plan X Choice of methodology X Gathering data X X X Data analysis and refine X X X Writing up draft X X X Editing final document X X Produce final document X Document passed to supervisor to read X Resources I intend to use following resources Hemscott database for data collection. MS Excel for analysing data. University of Wales online library, internet, and some books on finance.