Stand and Deliver Character Analysis

â€Å"Stand and Deliver† character analysis The characters in â€Å"Stand and Deliver† went through a great deal in this movie and all brought something else to the movie. The star of the movie is Jaime Escalante played by Edward James Olmos. Escalante is the teacher of the students that quits his job with a computer company to teach at Garfield High School. He comes to teach computer science, but the school did not get the computers and he has to teach math. He takes over the math class and expects a great deal of his students and challenges the faculty to allow him to teach Mr. Escalante encounters some opposition to teaching calculus from Mr.Molina, the principal and Raquel Ortega, a teacher. Mr. Molina is the principal of Garfield High School played by Carmen Argenziano. Mr. Molina laughs at Mr. Escalante’s idea of teaching calculus, but he supports him when the program gets under way. Raquel Ortega, played by Virginia Paris, is not as helpful as Mr. Molina and she doubts the abilities of the students many di fferent times throughout the movie. The students in the movie are very important and there are many that are central to the movie. Angel Guzman, played by Lou Diamond Phillips, is the tough guy of the school that chooses to cut class with his fellow gang members.Mr. Escalante reaches out to him and through the movie we see his transition into one of the brighter students while maintaining his gangster image. Ana Delgado, played by Vanessa Marquez, is the quiet girl that happens to be brilliant. She is almost forced to drop out of school so she can work at her family’s restaurant full time, but Mr. Escalante intervenes and convinces her father to allow her to come back to school. Pancho, played by Will Gotay, is the least smart student in the class and lets everyone know it. He considers not taking the calculus class to instead work at a factory and make money, but again Mr.Escalante convinces him to take the class and he passes the AP exam along with all the others. Lupe Esco bar, played by Ingrid Oliu, deals with a great deal of responsibility at home and we see that she is responsible for getting her little brothers and sisters to bed and preparing her father’s lunch. The other important characters in the movie are the agents from the ETS (Educational Testing Service). Dr. Ramirez, played by Andy Garcia, and Dr. Pearson, played by Rif Hutton, are sent to Garfield to investigate the possibility of Mr. Escalante’s students cheating.The ETS suspects the students cheated because of irregularities in the test, which they say many times in the movie, but they still come off as bad guys and Mr. Escalante even threatens Dr. Ramirez. Economic Culture The economic culture of these students was displayed throughout the movie to show that they came from poor families and neighborhoods. When people were trying to sell their goods on the street, such as bags of apples and having a taco stand, it was a symbol of a way of life and how people tried to sur vive. It was a traditional ritual for vendors to fill the streets in order to make money.Another symbol of their poor economic culture was stealing, such as when Mr. Escalante came out to his car and found his stereo gone. While outsiders may view the students as thieves, they personally saw it as a way of life, and doing whatever was necessary to get money. The culture of the work was displayed in the students as they had to help their families in restaurants, fix cars, and tend to the needs of children. Ana had to help with her family’s restaurant. Mr. Escalante visited the restaurant to talk with Ana’s father. Unfortunately, her father did not take into consideration that Ana could excel in life with a college education.The father thought that since everyone else was working in the restaurant, Ana would be fine working there too. She decided to drop out, but ended up rejoining the class. One of the students, Pancho, was skilled in auto mechanics. His uncle offered h im a job on the weekends operating a forklift that would have paid time and a half. This would have been a good money maker for him and his family, and making money was a big deal in the culture of these families. Since this conflicted with the class meeting time on Saturday, he thought about dropping out of the class. Mr. Escalante showed Pancho how he could go beyond merely fixing cars.One of the ways this was done was through showing Pancho technology that designed cars. Mr. Escalante told him that he could go to college and make more money designing cars. Mr. Escalante also took Pancho on an eye-opening drive. When Pancho had to make a decision about which way to go, he yelled â€Å"go right, go right†. Mr. Escalante continued straight and replied â€Å"all you see is the turn; you don’t see the road ahead†. When Jaime Escalante first agreed to teach at the school, he was expecting to teach computer science. He arrived on the first day of school to find that there were no computers in the school due to lack of funding.Since he could not teach that class, he ended up teaching math. Mr. Escalante himself had a struggle with the economical culture within his family. He chose to teach, which was a low paying job in that neighborhood. He could have found a better job which paid more, but he chose to teach these students because he believed in them. Political Culture As in every school system, there is a political structure among the staff. Jaime Escalante had to go through higher authorities to get permission to teach calculus, have additional meeting times for the class, and encourage the students to take the exam.They reluctantly gave him permission, although no one believed that he would be able to teach these students. The political culture gave higher ranked officials in the school the power. When Jaime brought up the thought of teaching calculus, he was laughed at. When the idea was finally considered, the department chair was upset t hat her objections were not listened to, and she left. She had mentioned that the students could not handle being taught calculus, and she said that what little self confidence they had would be shattered.Jaime Escalante wanted to challenge the political culture of the school to change the way things had been handled historically. The authorities in the school’s political structure had been worried about their students’ low test scores, but Mr. Escalante was the one who took action towards that. The graffiti on the side of a building that said â€Å"we are not a minority† was a symbol of their struggle in life and how they are viewed as outsiders. The students in the movie were oppressed, and ended up being motivated to fight it.As Paulo Freire mentions in Pedagogy of the Oppressed, â€Å"they [oppressed] will not gain this liberation by chance but through the praxis of their quest for it, through their recognition of the necessity to fight for it† (45). They wanted to show that they were just as capable of achieving goals as people of other ethnicities. Through taking the AP calculus test, they were able to do just that. Social Culture There are instances of social culture throughout â€Å"Stand and Deliver. † We see cultural symbols like the language used by the characters and the environment.The cultural rituals are shown in the characters homes and at school. The cultural ideology is seen in the attitudes of the students and the attitudes of the faculty. The social solidarity exists between the students and Mr. Escalante. â€Å"Stand and Deliver† takes place in East Los Angeles and there is a great deal of cultural symbols within the community. East Los Angeles is a Hispanic community and we see that in the movie because there are many instances of Spanish speaking by characters throughout the movie. Mr. Escalante’s first day in class shows that he has five or six students that do not even speak English and Mr.Escalante gives them Spanish instructions. When Mr. Escalante and his wife eat at a restaurant owned by a family of one of his students they say â€Å"mucho gusto† to her father, which in English means â€Å"pleased to meet you. † Mr. Escalante not only teaches math at the high school, but he teaches English to Spanish-speaking adults in the evenings and there are many people in his class. Even one of the agents from the ETS in the movie speaks Spanish telling them that he came from their neighborhood. The environment of East Los Angeles is full of symbols that deal with the culture of the characters.We see a pinata store and even see a man pushing a taco cart. These symbols deal with the Hispanic culture, but there is another culture for these students and that is one of being poor. We see in the movie graffiti everywhere and the buildings are rundown with fading paint. Mr. Escalante’s stereo is stolen from his car and we see the secretary reporting a theft to a police officer. It is terrible, but these are cultural symbols for this neighborhood. The cultural rituals we witness in this movie are seen at school and in the character’s interactions at home.A great deal of the movie takes place in the classroom because Mr. Escalante makes his students show up an hour early for school and stay late everyday and he even makes them come in on Saturdays. This changed the idea of school for many of these students that were used to slacking off in school. The students are part of this ritual because they want to pass the AP exam and Mr. Escalante expects them to show up. We witness the students taking quizzes everyday and having a quiz every Friday. They even come to school during the summer for five hours each day.At home we see one student’s ritual. She is responsible for getting the kids to be bed because her father works at night and her mother works during the day. We see her pack her father a meal, tell him goodbye, put the k ids to bed just as her mother gets home, and as she tries to do her homework her mother tells her to turn out the light so she can sleep. This is her ritual every night. The cultural ideology in this film is shown by the students and faculty. Many of these students do not take Mr. Escalante seriously because they do not think they can make anything of themselves. One of Mr.Escalante’s students is almost forced to drop out of school so she can work in her family’s restaurant full-time. Her father’s ideology is shown when he tells Mr. Escalante that she cannot go to college or finish high school and that no one else in her family went far in school and they are doing fine. The faculty’s ideology in this movie is quite frightening. When Mr. Escalante brings up the idea of teaching calculus, the principal laughs out loud at him because he does not think that these students have the skills to take calculus. He also has many interactions with another teacher th at constantly tells Mr.Escalante that these kids do not have the ability to do well and when the class is suspected of cheating she does not doubt for a second that they did it. The social solidarity in this movie exists between Mr. Escalante and his students. Mr. Escalante works together with his students to teach them calculus and pass the AP exam. He develops a bond with these kids and constantly tries to motivate them to believe that they can do it. Many of these kids come from broken homes and in taking an interest in their life it really makes a difference when you are getting them to learn (Teaching Today).They show up for extra hours to learn from Mr. Escalante because they believe him when he tells them they can do it. Mr. Escalante is always there for them when they need him. When one of his students is told to drop out of school, he talks her father into letting her come back and in the end we see how much they like him when they present him with a gift for all that he ha d done for them. Since he believed in them, they believed in him. Historical Culture Historically, the culture is challenged by Mr. Escalante throughout the entire movie.He comes to teach at a high school where they do not expect much from their students and he completely changes that. He tells the faculty to allow him to teach calculus, which had never been taught at their high school before. He makes his students come to summer school, which had previously only been open for students who were behind in their classes. He constantly challenges the practices of this school and he succeeds in his challenges by expecting a great deal from these kids and not allowing them to give up because of their ethnicity or where they come from.In keeping the standards high for his students he is the first to really challenge them and make them work hard, which is why he is so successful (Teaching Today). His constant motivation was the result of his attitude towards these students that they could succeed regardless of their background, which is why he was such an effective teacher (McCormack-Larkin, 410). Mr. Escalante did not let the past dictate what he did with his students. The most important thing that he did change was making these students think about making something of their life.He was able to encourage the students to learn by the styles of his teaching. He was able to interest them in the subject. â€Å"It is a teacher’s infectious enthusiasm for learning itself, as much as the student’s own curiosity about the teacher’s subject, that is apt to captivate a student† (Banner 11). Revolutionary Thinking This thinking by Mr. Escalante was revolutionary. He went against what everyone was saying and completely changed the way these kids thought about themselves. Paulo Friere speaks of revolution as, â€Å"an equal effort by both sides leader and people not one more than the other† (Friere, 129).Mr. Escalante is the leader and the stud ents are the people because he presents his idea of teaching calculus and they follow him. What I learned â€Å"Stand and Deliver† was an excellent film and has really impacted the way in which I will teach when I become a teacher. Mr. Escalante always expected his students to do well even when others told him they could not. I feel that in teaching we have to expect our students to succeed if we want to be effective. It is my responsibility to convey my expectations to these students and encourage them to achieve this success.Another lesson I have learned from â€Å"Stand and Deliver† is to work hard in the classroom, but have fun while you are doing it. By having fun you build relationships with students and building relationships is very important in reaching students, especially those that are disadvantaged (Teaching Today). I will also remember to constantly use dialogue with my students because dialogue is used to learn and know (Freire, 17). Academic Expectation s [pic] Jaime Escalante was a math teacher and throughout the movie he met many of Kentucky’s Academic Expectations.Sarah is going into the field of Elementary Education and all of these Academic Expectations are going to be met by her as well. Program of Studies Dennis will be teaching at the high school level just like Mr. Escalante, but he will be teaching History instead of Math. Both will have to deal with Program of Studies and one that meets the needs of both is SS-H-WG-CS-4 (Teaching Tools). This Program of Studies states that students will analyze how regions and places can have distinct cultural characteristics (Teaching Tools). Mr.Escalante was from the same place as his students and knew all about the culture of East Los Angeles and how it was mostly Hispanic. While this did not necessarily deal with his teaching of math it dealt with his ability to interact with the students. Core Content for Assessment As an Elementary school teacher, Sarah will be responsible f or each content area, but social studies relates directly to Dennis as he is teaching history. The core content area of social studies section SS-E-2. 1. 2 which says Elements of culture (e. g. language, music, art, dress, food, stories, folktales) serve to define specific groups and may result in unique perspectives, relates directly to the students in â€Å"Stand and Deliver† (Teaching Tools). The students had to accept how their culture stood out from the surrounding areas. When they were accused of cheating on the test, they knew that their culture was perceived differently than if they would have been Caucasians. New Teacher Standard As Kentucky teachers, Sarah and Dennis will have to meet certain standards when teaching and in watching â€Å"Stand and Deliver† we witnessed a very important standard.New Teacher Standard 2: Creates/ Maintains Learning Climate, which states that, â€Å"The teacher creates a learning climate that supports the development of student abilities to use communication skills, apply core concepts, become self-sufficient individuals, become responsible team members, think and solve problems, and integrate knowledge† (New Teacher Standards). Mr. Escalante gets the most out of his students because his classroom is a very effective climate. He supports them by constantly encouraging them and holding them accountable in everything they do. Bibliography Banner Jr. James M. and Harold C. Cannon. The Elements of Teaching. New Haven: Yale University Press, 1997. Freire, Paulo. Pedagogy of the Oppressed. New York: Continuum, 2000. McCormack-Larkin, Maureen. â€Å"Change in Urban Schools. † Journal of Negro Education 54 (3) (1985): 409-415. New Teacher Standards. Educational Professional Standards Board. 21 Oct. 2005. . Stand and Deliver. Dir. Ramon Menendez. Perf. Edward James Olmos and Lou Diamond Phillips. Warner Bros. , 1988. Teaching Today: Weekly Tips. Glencoe Online. 15 Oct. 2005. . Teaching Tools. Kentucky Department of Education. 21 Oct. 2005. .

Executive Summary

EXECUTIVE SUMMARY Square Textile Ltd. started its operation in 1997. It was enlisted in Dhaka Stock Exchange & Chittagong Stock Exchange in 2002. The business lines of Square Textile Ltd. are manufacturing and marketing of yarn. Its factory is located in Gazipur , Dhaka. The manufactures 100% Cotton Ring Span Yarn or Hosiery , 100% Cotton OE Rotor For Hosiery and Knit Fabrics for 100% export oriented readymade Garments Industry. The strategic Goals and Objectives of the Company are to strive hard to optimize profit though conduction and transparent business operations and to create more competitive in the internal and external market. In home, customer of Square Textile Limited are export oriented readymade Garments Industry. The Company also exports its products to the market of Europe & USA . The export sells increased by 19% in 2003 over the previous year. Competition level is increasing both in local and abroad market . Competition will be more stiff after 2005 when multifiber agreement will be phaced out. Among the other foreign competitors Srilanka , China Pakistan and India are prominent. Square is one of the biggest employees in Bangladesh. It has a personnel and administrative department . The total number of employees are 1223. For the employees there are systematic in house training in home and abroad . The managing director, the CEO is the head of the executive management team . Below in there are directors , executive directors and general manager. Under the direct super vision of the general manager a number of departments are controlled. The Company is going through continuous growth in production . The total production increased year on year basis at the rates of 0. 43% and 1. 467% during 2002 and 2003 respectively . The Company’s operations are out on a aggregate basis and are managed as a single opportunity segment . The Company uses Computer Aided Design (CAD) , Computer Aides Spreading (CAS) and Computer Aided Manufacturing (CAM) in its plant to increase the overall efficiency and productivity. OBJECTIVE: The broad objective of this report is to provide an overview of HRM practice of Square Textiles Ltd. The specific objectives of this report are : †¢ To provide Company overview †¢ To provide market overview and analysis †¢ To reveal operational, management and HRM planning. †¢ Discuss all HRM practice METHOLODGY: To prepare this report we have collected data from different published materials. Then we have conducted a secondary study. After that we have prepared a questionnaire and took interview one of the executive serving in this Company. We also collect data from internet . This way we collected primary data. Thus we have used both primary and secondary report to prepare this report. INTRODUCTION: This report is prepared as a requirement of the course â€Å"Seminar in Human Resource Management. † We selected Square Textiles Ltd. Working on this organization we came to know various Kind of HRM practice which are use here. Though it is a textile, it has proved itself in the related industry s a major competitor. In this report we have followed the guidelines provided by the teacher. Here we have tasked not only the HRM practice but also the marketing, management, finance and operational area of the Company. 5. Human resource management 5. 1. Human resource planning Square has a personal and administrative Department . Square is one of the biggest employers in Bang ladesh. The total number of employers in Bangladesh . The total number of employees is 1,223. For the employees there are systematic in house training in home and abroad . To motivate the employees, along with salary and benefits the company provides various facilities like free meals , free transportation , 24 hour medical center , on site sports . Production and accommodation facilities includes full time supply of safe drinking water, adequate lighting and ventilation facilities from sheet. 5. 2 HR Practices of SQUARE textile Recruitment Training Performance Management Labor relation Employee relation Job analysis Job design Selection Development Incentives Benefits 5. 2. 1 Recruitment and Selection process in SQUARE Recruitment is the process trough which the organization seeks applicants for potential employment. Selection refers to the process by which it attempts to identify applicants with the necessary knowledge, skills, abilities and other characteristics that will help the company achieve its goals, companies engaging in different strategies need different types and numbers of employees. The strategy a company is pursuing will have a direct impact on the types of employees that it seeks to recruit and selection. Source of recruitment There are two kinds of source SQUARE uses for recruitment . They are 1. External source 2. Internal source. We try to discuss all relative sources which are used for recruitment in SQUARE. 1. Internal source SQUARE thinks that current employees are a major source of recruits for all but entry-level positions. Whether for promotions or for ‘Lateral’ job transfers, internal candidates already know the informal organization and have detailed information about its formal policies and procedures. Promotions and transfer are typically decided by operating managers with little involvement by HR department. 1. 1Job-posting programs HR departments become involved when internal job openings are publicized to employees through job positioning programs, which informs employees about opening and required qualifications and invite qualify employees to apply. The notices usually are posted on company bulletin boards or are placed in the company newspaper. Qualification and other facts typically are drawn from the job analysis information. The purpose of job posting is to encourage employees to seek promotion and transfers the help the HR department fill internal opening and meet employee’s personal objectives. Not all jobs openings are posted . Besides entry level positions, senior management and top stuff positions may be filled by merit or with external recruiting. Job posting is most common for lower level clerical, technical and supervisory positions. 1. 2 Departing Employees An often overlooked source of recruiters consists of departing employees. Many employees leave because they can no longer work the traditional 40 hours work week . School, child care needs and other commitments are the common reason. Some might gladly stay if they could rearrange their hours of work or their responsibilities . Instead, they quit when a transfer to a part-time job may retain their valuable skill and training. Even if part-time work is not a solution, a temporary leave of absence may satisfy the employee and some future recruiting need of the employer. 2. External source When job opening cannot be filled internally, the HR department of SQUARE must look outside the organization for applicants. We discuss all the external source of recruitment at bellow: 2. 1 Walk-ins and Write-ins: Walk-ins are some seekers who arrived at the HR department of SQUARE in search of a job; Write-ins are those who send a written enquire . both groups normally are ask to complete and application blank to determine their interest and abilities. Usable application is kept in an active file until a suitable opening occurs or until an application is too old to be considered valid, usually six months. 2. 2 Employee referrals: Employees may refer job seekers to the HR department . Employee referrals have several advantages . Employees with hard –to –find job skill may no others who do the same work. Employees referrals are excellent and legal recruitment technique, but they tend to maintain the status quo of the work force in term of raise , religions , sex and other characteristics , possibly leading to charges of discrimination. 2. 3 Advertising Want ads describe the job and the benefits, identify the employer, and tell those who are interested how to apply . They are most familiar form of employment advertising . for highly specialist requites, ads may be placed in professional journal or out of town newspaper in areas with high concentration of the desired skills Example: General Manager- production (ref: PM) Age: 28-35 years; Graduate with specialization in garment mfg technology from NIFT or equiv. -Minimum 10 years experience in similar position of a unit with a minimum of 1000machines. -Must have detailed hands on knowledge of industrial engineering. We offer competitive salary which is commensurate with experience and qualification. If you aspire to an exiting and rewar ding career , send your detailed resume, quoting your present and expected salaries to jobs. 2. 4 Internet Now today no body thinks anything without internet. So SQUARE give their advertise at internet. Example: WWW. bdjobs. com www. square. bd. com Executive summary The highly anticipated and much celebrated release of the newest and perhaps hippest cellular phone on the market has spurred a number of discussions on the applicability of these devices to other forums.   An important change which has revolutionized not only the way people interact and do business with one another but also the way relationships are formed in this world is the telephone. Alexander Graham Bell could never have imagined that phones today allow people to surf the internet and also watch movies.   The telephone has become such an integral part of the everyday lives of people.   This role is even expected to only become more and more important as the next generation of cellular phones will allow users to watch videos and talk to each other onscreen. This short discourse will therefore discuss the different marketing strategies for mobile phone providers.   This includes the features that are offered in the market for current cellular phones such as the WAP access and even the video or camera quality.   As shown in other pertinent marketing studies that will be discussed in this discourse, there are also other important considerations that consumers take into their decision making process with regard to the purchase of a mobile phone unit.   Using projective techniques and perceptual mapping techniques, this study will attempt to show which of these new features and marketing strategies have the greatest impact on the mobile phone industry.    Executive summary The highly anticipated and much celebrated release of the newest and perhaps hippest cellular phone on the market has spurred a number of discussions on the applicability of these devices to other forums.   An important change which has revolutionized not only the way people interact and do business with one another but also the way relationships are formed in this world is the telephone. Alexander Graham Bell could never have imagined that phones today allow people to surf the internet and also watch movies.   The telephone has become such an integral part of the everyday lives of people.   This role is even expected to only become more and more important as the next generation of cellular phones will allow users to watch videos and talk to each other onscreen. This short discourse will therefore discuss the different marketing strategies for mobile phone providers.   This includes the features that are offered in the market for current cellular phones such as the WAP access and even the video or camera quality.   As shown in other pertinent marketing studies that will be discussed in this discourse, there are also other important considerations that consumers take into their decision making process with regard to the purchase of a mobile phone unit.   Using projective techniques and perceptual mapping techniques, this study will attempt to show which of these new features and marketing strategies have the greatest impact on the mobile phone industry.   

Developing New Perspectives by Comparing and Contrasting: Tell Tale Heart Versus The Landlady

â€Å" Just a Journey leads to a new vista, a short story leads to new understanding† In your own opinion how well do â€Å" Tell Tale Heart â€Å" and â€Å" The Landlady â€Å" justify the above quotation Reading a story, we can learn the cruel reality of the real world. Since this is a fallen world, it is not realistic to live inside our own shell. It is important for us to be aware of the fact and take precautions even though some stories are fictions and seem to be exaggerated. However, from the fact that writers can create those stories suggests the possibilities of those crimes to be committed. Just a Journey leads to a new vista, a short story leads to new understanding† Through â€Å" The Tell-Tale Heart â€Å" and â€Å" The Land lady ,â€Å" we as readers have the privileges to explore the minds of these two great writers and have new understandings in the fields we were not familiar with. The authors of both stories had done a great job terrifying rea ders by the tension and suspense they built. The genre of these two stories is horror and mystery which contains the element of murder. â€Å"The Tell-Tale Heart† was written in first person narrative which makes the story more vivid and readers are more involved in the process.Poe used the form of confession to explain details so that readers would feel as if they were at the crime scene. The narrator claimed that he was just nervous but not mad. He told the story in a way which he thought could defend his sanity yet he confessed to killing the old man. The advantage of telling a story from the first person point of view is that readers can know author’s thoughts and feelings explicitly. However, this also means reader are left with limited imagination for the story. In the aspect of writing style, the author likes to use short sentences, such as â€Å"They heard! they suspected! † to make the story fast paced and build suspense. The short sentences also make t he main character seem irrational. The Land Lady was written from a third person view which is different from Poe’s. The story started with Weaver trying to find a place to stay overnight. Attracted by an incredibly cheap price, he walked into a â€Å"Bed and Breakfast. † To me, this is such an ironic coincidence that the ending might be Weaver becoming the landlady’s breakfast in a place which is called â€Å" Bed and Breakfast. Both Poe and Dahl used darkness to create suspense for murder, however, the darkness in The Landlady is in a cosy, warm place. Dahl set up the mood using similes. â€Å"But the air was deadly cold and the wind was like a flat blade of ice on his cheeks†. Those bolded words suggest a murder. As for narrative form, readers learn Billy Weaver through his thoughts and questions. Moreover, his questions and observations are also the clues for speculating what would happen next and the possible murder. As readers, we are given informa tion Weaver does not know in the story to foresee the upcoming danger.The Landlady was written in plain words and longer sentences rather than complicated words and shorter sentences. In the beginning, the plot seems to be as normal as ordinary stories. As the story develops, readers are brought into the atmosphere of darkness and horror. Since this story was told from third person point of view, readers are left with more room to imagine their own ending. In conclusion,† Tell Tale Heart â€Å" and â€Å" The Landlady â€Å" justify the quotation â€Å" Just a Journey leads to a new vista, a short story leads to new understanding. It is human nature for us to plan tomorrows as if we were in charge of our own lives. However, from these two stories, the beginnings of the stories are very different from the endings. The narrator in â€Å"The Tell-Tale Heart† claimed he was sane but it turned out that he revealed the murder he committed by losing control. In the â€Å" Landlady,† the plot led us to an unexpected potential murder which no hints were given in the beginning. Life is full of surprises. We should always be open-minded for changes.

Cross Cultural Human Resources Management Essay

Cross Cultural Human Resources Management - Essay Example After spending valuable time at the Resort as the trouble shooter and discussing various dimensions of resort work and its improvement, with the employees and other members of the staff, listening to all complaints of customers of the once-well-run resort, Patrick Dowd came to the conclusion that the problem plaguing the resort is that of inadequate and inefficient application of International Human Resource Management. In his Report to Jim Johnson, Patrick Dowd would make suggestions in the following mode, depending on his knowledge of International Human Resource Management and application of pertinent theories to the present case. International Human Resource management focuses on Human Resource Management practices across the countries mainly in multinational firms, or in organisations where people of different cultures work. There is very little difference between Internal Human Resource Management and Cross Cultural Human Resource management as both deal with the problems posed by employees drawn from various cultures. There is no definite criterion or stringent guidelines for cross cultural management. It alters according to the cultures involved and the requirements under given circumstances, as the circumstances and situations decide the rules. Here cultural diversities are accepted and honoured, not defied, and an attempt is made not only to avoid cultural clashes, but also to find a suitable way of functioning without challenging the cultures involved. Here exists no desire to see all cultures look identical and the 'lesser' cultures adopt the ways of the 'better' culture. Today the context of human resource management is constantly changing with the new and persistent demands of globalisation. Human resource management of today has a global sense based on the new trend of global business. Businesses like the West Indies Yacht Club Resort, even though not a particularly overwhelming international business house in the accepted sense, welcomes guests from all parts of the world and employs people from different background and age group. When the Resort came under clouds, both the General Manager Jim Johnson and Patrick Dowd, the chosen consultant felt that this was a case of cross cultural human resources mismanagement. British Virgin Islands are not really called 'happening' places, but quiet places where resorts were built for people who need relaxation. Local people still are living in a cocooned culture hardly being exposed to international ways of living. It is difficult to find employees with exemplary educational background and efficient motivity in the islands. Efficient staff had to be drawn from different cultures and places, mainly from United States main land. British Virgin Islands, so remotely placed and lacking all diverse academic facilities for growing up children, and entertainment or business facilities for grown ups, people usually either got bored, or felt inadequately equipped for the future, frequently resigned in search of better pastures and none of the employees stayed for a long time. This created an impossible situation for the Resort of perpetually training new people; getting adjusted to them and getting them adjusted to the Islands. When the management heaves a sigh of relief that the new unfamiliar staff is trained enough to handle the situations, the well-trained staff decides to move and management had been frustrated on this issue for a long time. The resort was famous

American and Soviet Policies towards Arab-Israeli Conflict and the Essay

American and Soviet Policies towards Arab-Israeli Conflict and the Cold War - Essay Example The Second World War ended in the European theater on May 8, 1945. And the Cold War began on that day. The cold war had many dimensions; one was ideological, another was political, a third one was economic, and to all these we may also add the rivalry between America and Russia as to who would ‘rule’ the world. With an uncanny political insight Alexis de Tocqueville had predicted as early as 1835 that â€Å"There are now two great nations in the world, which starting from different points, seem to be advancing toward the same goal: the Russians and the Anglo-Americans. . . Each seems called by some secret design of Providence one day to hold in its hands the destinies of half the world† . It would appear; therefore, that history has destined these two nations to be at each other until a final and decisive victory is achieved by one over the other. But that time has not yet arrived, even though the cold war was declared to have been ended on December 3, 1989 at the conclusion of the Malta summit between George Bush Sr. and Mikhail Gorbachev. The ‘political Vacuum’ With the withdrawal of the colonial powers, Britain and France, from the Middle East after WW II, there was a virtual political vacuum in the region. By 1948 Soviet Union had consolidated its hegemony over Eastern Europe. The ‘Truman doctrine’ put a rein to its further ‘expansion’ into Greece or Turkey. But along with consolidating its domination over the East European nations, Soviet Union was busy trying to build and expand its influence among the ‘Islamic’ nations to its south.

CASE STUDY Essay Example | Topics and Well Written Essays - 1000 words - 2

CASE STUDY - Essay Example Also the travelling law states that the client should provide healthy and security details to the tour operator. In our case the client provided information about the vegan daughter which was not acknowledged by the tour operator. The client can use this information as another obligation not met by the tour operator hence making their case stronger. The tour operators have an indefinite liability regarding the health and safety of their travelers. The Goforit did not make arrangements of the required food sources, thus not meeting the health requirements for their guests. Also the tarnished picture of the tennis court and the resort put forward security issues for the guests too. The client can hence use these offenses as claims against their case for the Goforit. I have studied your case in detail and have assimilated all the information that you have provided to me. This strength of this case from your point of view is high because most of the points go in your favor. As a legal advisor I would like to mention the legal points that you can use regarding your claim against the tour operator Goforit. The laws and regulations regarding the travel and tour operators and packages have been regularly monitored and updated by the law makers. This law fully covers the travelers and tourists and has many clause to protect them from the fraudulent practices of the tour operators. Firstly, your need to ask for the license and registration of your tour operator, there have been cases where people were trapped in the ‘too good to be true’ travel packages of unlicensed tour operators. After that, Goforit can be sued for the promises they made but did not honor them. In this case our case is very strong because of the brochure provided by the operator. We have concrete evidence regarding the promises they made but failed to deliver them. The travel packages law clearly states that the tour operators are responsible for the safety and health of their

Organisation Management System Essay Example | Topics and Well Written Essays - 3250 words

Organisation Management System - Essay Example Researchers have tried to increase understanding of why new mobile payment technologies are adopted by focusing on either the payee or the payer, which potentially yield a limited understanding of the payer-payee context. I have scrutinised over 50 academic journals in the area of social psychology, technology adoption and mobile payments to retrieve a comprehensive understanding of the phenomenon. To this I have identified the Theory of Reasoned Action, the Theory of Planned Behaviour, the Technology Acceptance Model, The Unified Theory of Acceptance and Use of Technology, the Task-Technology Fit model and the Diffusion of Innovations as centrepieces in the academic literature. Founded on these the evolution of the concept has been on-going where several antecedents have been identified to either facilitate or impede the adoption of mobile payment technologies. Different attempts have been made to conceptualise these complexities, however none incorporate a comprehensive understanding of the antecedents of adoption of mobile payment technologies identified in the mobile payment literature with both a payer and payee centric approach which comprehends the payer-payee context. Acknowledging this, I have integrated a framework founded upon social psychology rationales, technology adoption theories and mobile payment literature to increase understanding of why new mobile payment technologies are adopted by payers and payees. Applying my framework to real-life cases I have found several interesting findings such as (1) payer and payee adoption is interrelated, (2) payee adoption is highly influenced by usefulness mediated through task-technology fit and especially the presence of expected functions, (3) payee adoption can be influenced by payer’s costs and the technologies’ consistency with payer’s lifestyle, (4) lack of ease of use is a barrier of adoption in contrast to ease of use as a driver of adoption. Most

Article Review Example | Topics and Well Written Essays - 750 words - 5

Review - Article Example A quantitative approach also happens to be simple and straightforward in its scope. The results arrived at numerically also allow for the application of a range of quantitative techniques in the course of the foresight exercises. It also allows for a clear cut comparison of conclusions under varied circumstances. The subject of this research were the 35,057 children falling in the age group 3-5, who were enrolled in the 311 preschools in the state of Illinois in the Financial Year 1994-1995. In the context of setting, the code of Illinois State Board of Education’s exclusively extends grants to public school districts, to conduct preschool education programs for children falling in the age group 3-5. This program has an essential parent education component. In that context, in the Financial Year 1994-1995, 389 types of program services were offered by Illinois preschools. These services included either exclusive classroom based instruction or a combination of class room based and home based instruction. A few schools extended only home based instruction. A majority of the schools that is 85 percent offered only classroom based instruction. All the schools running these programs were required to have parent education services and parent involvement activities. Nearly 38 percent of the preschools made parent involvement a requirement in these programs. The parent involvement categories included classroom activities, field trips, and enrichment activities involving children. These programs also had a parent education component that comprised of parent-child interaction activities, workshops pertaining to child development and parenting skill development activities. The teachers participating in these programs were sufficiently competent, with 73.4 percent of them having early childhood education certificates. The analysis of

Attack Essay Example | Topics and Well Written Essays - 1000 words

Attack - Essay Example Israel uses all possible means to ensure that the balance of power in the Middle East shifts in her favor. Palestine on the other hand is gripped by fear as Israel strives to maintain and extend her territorial boundaries. Israel has continually done everything in her power to dominate Palestine. In an attempt to fight that dominance, Palestinians have realized their cause, for which they are willing to give up anything – even their own lives. In the fight for their cause, Palestinians have opted for radical measures, including guerilla tactics and terrorism. Extremist groups have emerged, and suicide bombers have realized the need for their hostile acts. In â€Å"The Attack†, Khadra depicts this situation, vividly describing the complexities entailed in both the Palestinian cause and the Israeli cause. In both, the end justifies the means. â€Å"The Attack† neutrally highlights the Arab-Israeli conflict. It offers a multidimensional scope on the hindrances for q uest for peace in the Middle East. Through a political fiction, it aims to elaborate what drives extremists to fight for â€Å"the cause†. It shows why extremists would not think twice about blowing themselves up in order to achieve their end. The author portrays this through the narrator of the story, Dr. Amin Jaafari, an Israeli-Arab. Dr. Amin seems to blend well in an Israeli society, in Tel Aviv. He is a successful surgeon, married to a loving, beautiful and seemingly secular wife. He seems oblivious of the separatist views experienced by Arabs and the Israelis. Unlike most people in the region who are driven by ethnic and religious differences, he is driven by his ambitions to succeed in his career. His bubble bursts when he finds out that his wife was involved in a suicide bombing that left innocent people dead and injured. At first, he did not believe that his wife could be capable of such an evil act until the police asked him to identify the body of the suicide bombe r. He was shocked when the police told him that his wife had not gone to the restaurant where the incident occurred to have a snack. Instead, she went to have a blast (Khadar, 2006). Later, a letter from his wife confirmed his doubts. The incidence gives him the desire to understand his wife’s extremist side, a side he had barely figured out before. The author poses fundamental questions regarding the complexities of the Arab-Israeli conflict. He leaves the reader wondering whether the cost paid for the cause is worth it. Lives are lost; people are left psychologically disturbed by the effects of recurrent bomb attacks, hostilities and general unrest. Those close to the attackers are left tormented by betrayal and deceit. For Dr. Amin, news of his wife’s involvement with a fanatic group leaves him with a lot of unanswered questions. After the attack, Amin loses his friends, neighbors and political affiliates, who think that he was his wife’s partner and is there fore equally guilty. Truth is, unlike his wife, he was dedicated to setting aside religious differences; and focusing on his career and success. It is disturbing to imagine why â€Å"a beautiful, intelligent, modern woman, esteemed by the people around her, thoroughly assimilated, pampered by her husband and worshiped by her friends† could end up as a suicide bomber (Khadra 2006). The author leaves the reader wondering whether seemingly modernized individuals from the Middle East may just be putting on a

The impact of different regulation regimes on funds performance Essay

The impact of different regulation regimes on funds performance - Essay Example The fixed income securities have the ability to provide regular income, stability and liquidity to the investors and as a result the investors prefers in investing in this kinds of funds. With the advent of these funds investors are relying on its investment as risks are relatively reduced as they receive a fixed dividend after a specified period of time. There are numerous benefits for investing in fixed income securities, which attracts the investors to invest in it. The rules and regulations pertaining to the investments are stringent, which restricts groups of people in investing in these funds. For investing in few fixed income securities registration is required, which becomes a hindrance for common investors. However, the government of individual countries have reduced the compliance burden to a great extent. The retirement fund administrators have to obey the strict legislation the requirements related to the governance of the fund. A personal statement is provided in order g ive the view of the writer regarding the operation of fixed income securities. Fixed income securities are securities, which are defensive in nature and have the capability to provide capital stability, liquidity, income and diversification to the investors. It provides capital stability to growth-oriented asset classes, such as, property and equity. In spite of the advantages portrayed by the fund, it has limited use worldwide. As for example, the investors in Australia do not use this particular fund as fixed income investment, instead they employed other managed funds over the past 23 years. Within this time frame, a proportion of investor’s wealth is allocated to fixed income securities present in Australia. The investments in fixed income funds had, however, declined over the years. During this period of time, the investment made in equities had increased as it is made in cash. Hence, it can be portrayed that

Scan of the annotated bibliography Essay Example | Topics and Well Written Essays - 1250 words

Scan of the annotated bibliography - Essay Example Qualitative research uses a naturalistic approach that seeks to understand phenomena in context-specific settings. In contrast, quantitative methods are, in general, supported by the positivists’ paradigm, which characterizes that the world is made up of observable and measurable facts. Positivists assume that a fixed measurable reality exists external to people (Glesne, 1999). On the other hand, qualitative methods are generally supported by the interpretivist (also referred to as constructivist) who portrays the world in which reality is socially constructed, complex, and ever changing. Each represents a fundamentally different inquiry paradigm and researcher actions are based on the underlying assumptions of each paradigm. The non-experimental studies used a variety of research methods such as observations, interviews, survey, questionnaires, etc. The data for these studies were mostly the responses of participants and self-reports and were analyzed both quantitatively and qualitatively. The wealth of research on various topics on romance provided a credible backdrop for the analysis of data. Glesne (1999) states that qualitative researchers seek out a variety of perspectives; they do not reduce the multiple interpretations to a norm. She adds that in qualitative research, face-to-face interactions are the predominant distinctive feature and also the basis for its most common problem. Such problem she states include researchers’ involvement with the people they study and the accompanying challenges, and opportunities that such closeness brings. Straus and Corbin (1990) claim that qualitative methods can be used to better understand any phenomenon about which little is yet known. They can also be used to gain new perspectives on things about which much is already known, or to gain more in-depth information that may be difficult to convey quantitatively, or where the researcher has determined that quantitative measures cannot adequately describe or

The Crucible Essay Example for Free

The Crucible Essay The Crucible by Arthur Miller is a drama about a small group of teen girls in 1692 Salem, Massachusetts caught in an innocent conjuring of love potions to catch young men are forced to tell lies that Satan had invaded them and forced them to participate in the rites and are then forced to name those involved. Thrown into the mix are greedy preachers and other major landowners trying to steal others land and one young woman infatuated with a married man and determined to get rid of his innocent wife. Fueled by the lies and blasphemy in the town, they’re finally brought to a â€Å"melting point† where they buy into the deceit and start to charge witchcraft. The Crucible represents test, trail, ordeal, formation by fire, and vessel baked to resist heat. The title reflects the meaning of the work as a whole theme. First, John Proctor is a tested and formatted by fire character. In The Crucible he is tested by the court and the citizens in Salem. In the play Abigail Williams accuses John Proctors wife of witchery and is taken to trial but john proctor want to accuse Abigail of murder. He is trying to do anything possible to save his wife of being lynched. John Proctor was put through a severe test of faith in him and came through in the end by finding the good in him and refusing to cast away his name in signing a confession. John Proctor was confused on how he felt towards his relationship with Elizabeth he felt like he was a â€Å"not a good man† to her. Johns character is considered a formatted by fire character because of the way he has developed from the beginning to the end of the play. Next, Elizabeth Proctor represents trial and a vessel baked to resist heat character. Like many puritan women, Elizabeth Proctor is reserved, slow to complain, and dutiful. Yet, Elizabeth is pained by the fact that her husband was having an affair with their â€Å"strikingly beautiful† young servant. But Elizabeth doesn’t seem to care. Abigail Williams accused her of witchery to try to get John Proctor back. Throughout the play she struggles for her innocence’s and so does John. He manages to do anything possible for Elizabeth to be free, even if it meant to lie and accuse Abigail of murder. Elizabeth manages to escape lynching because she receives the news that she is expecting a child. Elizabeth is a vessel baked to resist heat character because she manages everything to not get involved in problems also she wasn’t guilty of any charges and managed to escape being lynched. To conclude, the drama The Crucible by Arthur Miller is a drama about a group of girls that are caught in an innocent conjuring of love potions to catch young men are forced to tell lies that Satan had invaded them and forced them to participate in the rites and are then forced to name those involved. But once they confess on whom they saw the say names of people they don’t like because they want revenge on all their enemies. The Crucible represents test, trail, ordeal, formation by fire, and vessel baked to resist heat. The title reflects the meaning of the work as a whole theme.

Impact of the Olympic Games on Tourism

Impact of the Olympic Games on Tourism The potential contribution of the 2012 Olympic Games to tourism Abstract With budgets for the hosting of the Olympic Games often requiring significant upward revision before final costs are calculated there has been an increasing level of concern about the areas of benefits that these events bring to the host cities and nations. Much of this concern is focused upon the tourism benefits. Using three previous Olympic events together with the staging of the Commonwealth Games in Manchester as case studies, this research seeks to ascertain whether the predicted tourism benefit from hosting the 2012 Olympic Games can realistically be achieved or if they are simply estimates raised in an effort to justify the huge capital investment required to stage the games. The results of the case study into the three Olympic events show mixed results in terms of reality matching expectations. In particular, the area of concern in all of these events has been the failure of the cities to see a continuation of improvement to employment. However, the Manchester case study produced a positive result on all counts of tourism benefits, including employment. What makes this event different from the others is that the organisers in this case concentrated a considerable amount of effort on developing a sustainable legacy programme. The committee responsible for this programme have treated it as a separate project and this has enabled the focus of achieving benefits to be maintained. It is considered that if the LOCOG incorporates the positive aspects of this research into their Olympic planning it will be able to achieve the estimated expectations. 1.  Introduction In March 2005, four months before bid for the 2012 Olympic Games was won by London, the UK government extended the budget for this event from  £2.4 billion to  £9.35 billion, a nearly fourfold increase (BBC News 2005). In justifying this enormous increase in costs and echoing the comments of other Olympic cities in the past, the UK government and 2012 Olympic organisers have said there will be ongoing economic benefits resulting from the event being held in London. It has been suggested that many of these benefits will accrue to the tourism and hospitality sector. In support of this comment the organisers, LOCOG[1] (2007) and ODA[2], point to the fact that it is increasing hotel accommodation in the London area and, in addition, providing a number of new sporting and cultural facilities that will be available for use in the future, attracting continual leisure and tourism activities. Furthermore, it is stated the increase in tourists during the event will have the effect of increasing subsequent tourist visits to London and the UK as a whole as well as their impact during the event itself. These moves are also expected to have a positive long term impact upon tourism businesses and employment in the area. However, reports into the results of tourism benefits achieved from previous events of this nature show a different view (Madden 2002) and suggest that the claims being made by the LOCOG and other stakeholders might be optimistic. It is the resolution of this dichotomy of opinions that forms the focus for this paper. The aim of this research is to assess whether the pre-event claims being made by the 2012 Olympic organisers, which are supported by research conducted by independent researchers (Blake 2005 and Oxford Economics 2007) will bring tourism benefits to London and the UK. These will be measured against three factors, these being tourism numbers and financial benefit, hotel occupancy, and tourism and hospitality employment levels. 1.1. Aims and objectives In order to address the issues focused upon within this study, the following research question being resolved is: Whether the hosting of the 2012 Olympic Games in London will provide the City and the UK tourism industry with potential benefits both during and post the event. To provide a framework and direction aimed at addressing this question, two main objectives have also been set. London 2012 Olympic Games legacy There will be a detailed and critical analysis of the intended legacy of the Games which will also examine the supporting evidence. Previous event results For comparison purposes post event reports on three significant previous events of a similar nature will be presented and evaluated. 1.2. Overview Following this introduction, section two provides an overview of the data collection method used. In section three the findings will be presented and discussed before the study is brought to a conclusion in section four, where appropriate recommendations will be made. 2.  Methodology Due to the limitations in terms of time, cost and geographical location, it has been decided that the appropriate research method to be used for this research will rely upon the collection of data from secondary sources. These will include information collected from the official 2012 Olympic websites of the LOCOG (2007) and other related stakeholders as well as independent research conducted by academics and other tourism stakeholders. Other resources have also been used, including publications available from bookshops and libraries and journal articles. Similar resource locations have been relied upon for the collection of data relating to the comparative events. Although it is sometimes perceived that there are limitations to the secondary data collection approach in this case it was considered that the depth of previous and immediate research is sufficiently robust to add value to the findings of this study. For example, sufficient academic and practical research material is available to be able to provide a direct comparison between the intentions of the 2012 Olympic Games legacy expectations and the actual results that have been achieved from previous events, including those held within the UK and in other international locations. 3.  Discussion of research findings In all events apart from the London 2012 the research conducted for this study has included the examination of the legacy claimed to result from hosting special events by the organisers and the findings from subsequent research and reviews conducted by various academic and tourism stakeholders. For ease of reference this section of the research has been divided into relevant segments. The findings of the research are presented within the first three segments and these are followed by a discussion, analysis and evaluation of these findings that will provide a conclusion to the research question. 3.1.  London 2012 Olympic Games legacy In their official legacy for the games, the London 2012 Olympic organisers have highlighted several benefits that they expect to result from hosting the games. In relation to the tourism sector, these can be identified in the following six key areas according to the LOCOG (2007), all of which are considered to have longer term benefits that will accrue to the hospitality and tourism sectors. Accommodation Included within the infrastructure costs of the games is the construction of an additional 15,000 hotel rooms, increasing current accommodation in the London area by around 15%. Employment It is anticipated that the event will require a significant increase in the numbers of persons employed within the tourism sector. This increase is expected to occur across a range of areas including hotels, restaurants and bars and other destination and attraction facilities. Numbers of tourists With 9 million tickets being printed for the games, added to the participating teams, their support staff and the international media attendance, it is expected that in excess of 10 million tourists will be attracted to London during the course of the event. Sporting facilities Of the sporting facilities being built for the games five of these will be made available for tourism, sporting and leisure use post the games themselves. Infrastructure Improvements are being made to transportation links and a regeneration programme for areas of London will be taking place, thus making these places more attractive to tourists. Destinations and attractions The creation of a new Olympic Park, which in addition to recreational facilities will have areas dedicated to the creation of natural wildlife habitats, is designed to add to the attraction of London as a tourist destination. 3.2.  Findings of anticipated tourism benefits of the 2012 Olympic Games Several studies have been commissioned and conducted in an attempt to evaluate and predict the economic benefit that will result from London’s hosting of the Olympic Games. Having considered these studies, it has been decided that those most appropriate to this study are the study conducted by Oxford Economics (2007) and Blake (2005). In both cases the central determinates of expectations have been used. The findings of the Oxford Economics (2007) study were based upon a comparison of the results studied from fifteen previous events of the same nature. The results suggested that the net tourism gain in financial terms during the years from 2007- 2017 will be  £2.09 billion, of which  £1.47 (70.33%) will be directly attributable to London. In analysing this result, the following can be drawn from these figures when compared between the pre-games; event and post event periods (figure 1). Figure 1 Tourism financial benefits Benefit Pre-Games Games Post games London Percentage 17% 35% 48% UK Percentage 15% 31% 54% London Fiscal  £249.9 million  £514.5 million  £ 705.6 million RUK Fiscal  £ 63.6 million  £133.4 million  £ 423.0 million UK fiscal  £313.5 million  £647.9 million  £1128.6 million Data source: Oxford Economics (2007) These results are largely supported by the research conducted by Adam Blake (2005) who, by using a combination of prediction methods, also agrees that although there is a small rise in pre-games spending the major benefits are attributable to the year of the event and the subsequent period. However, in addition to the financial statistics Blake’s research also provides statistical information in respect of the three main issues being studied within this paper. For example, in terms of the increase in tourist numbers because of the event it is anticipated within this research that the following changes in percentage terms would be achieved (figure 2) over and above the anticipated growth in this area. With regard to the increased numbers of full time employment position created, Blake (2005) also anticipates that this will increase because of the games, particularly within the following areas (see figure 3). Figure 3 increase in FTE Sector 2005-2011 Pre-Games 2012 Games 2013-2016 Post games Sports Facilities -302 4,361 708 Hotels 2,554 1,686 2,972 Bars 2,094 952 2,359 Land Transport 292 3,057 -701 Air Transport 661 191 745 Visitor attractions -11 1,062 -40 Therefore, it is concluded by both of the studies examined that the hosting of the 2012 Olympic Games by London will produce positive and lasting tourism benefits for both the city itself and the country as a whole. 3.3  Findings from previous similar events For comparison purposes, four previous events have been used within this research. These include three prior Olympic Games held in Atlanta (1996), Sydney (2000) and Athens (2004) and the Commonwealth Games held in Manchester in 2002. To provide a detailed analysis of the tourism benefits in the case of the four the research has been concentrated upon analysing the statistical returns for the six years prior to the event, the year of the event and the four subsequent years. In terms of timescale this therefore will relate to the 12 year period being used for estimations by the researchers into the tourism benefits of the London Olympic Games event (Blake 2005) and therefore is anticipated to produce a reasonable set of comparatives. Atlanta 1996 The 1996 Olympic Games, hosted by Atlanta, also saw its financial cost rise from a budgeted $1.7 to over $2 billion, which equated to a 30% increase (Humphreys and Plummer 2003), much of which increase (70%) had to be funded from the public purse. Tourism numbers and their spending in Georgia during the year of the Atlanta Olympic Games increased by approximately $1.5 billion, achieving a record $14.7 billion in 1996, which was a considerable increase upon the previous seven years results. However, this revenue fell back in the following three years and only exceeded the 1996 record in 2000 when revenues reached $15.5 billion. Tourism numbers for the state of Georgia also increased during 1996 and 1997 as a direct result of the games. In the subsequent years however, as Engle (1999) research indicated, this did not resolve itself into longer term benefits, due partly to the fact that the city of Atlanta lost a considerable amount of business convention tourism. This has affected hotel occupancy post the games event, which has remained static at 64% throughout the twelve year period. In terms of the tourism benefit for employment, the result in this case was that in the 77,000 additional jobs anticipated were created as estimated by the year of the games. However, a considerable percentage of these were short-term positions and less than half that number remained long-term (Engle 1999). Nevertheless, this does show a positive benefit to the community. Sydney 2000 In real terms the Sydney Olympic Games in 2000 cost twice as much as its predecessor, with even the estimated budget of $4 billion (Madden 2002, p.9) being exceeded when the actual costs were computed. The tourism benefits relating to the numbers of tourists and their spending in this instance can only be identified for Australia as a whole[3]. These show that the numbers of tourists grew from just under 5.8 million in 1994 to 8.672 million in the year 2000, an increase of 47.33% during the period, nearly a quarter of which was achieved in the year of the games being staged. In the four years subsequent to this time there has been a further increase in tourism of 14.24%. All of the increase was achieved in 2004 following three years that showed a total drop of 2.39%. However, in terms of revenue impact, the statistics show that tourism spends has fallen in the twelve year period by around 2%. These results have been reflected in the rate of growth of hotel occupancy, which has seen a similar pattern of growth during the period under review (Arthur Andersen 2000). However, one are of concern relative to potential tourism benefits from the Sydney games is the poor performance of employment. Despite a rapid growth in this area in the years leading up to the games, post the event there has been a sharp reversal of this trend (figure 4), with the New South Wales showing the sharpest fall. Two other issues that have detracted from the tourism benefits of the Sydney 2000 games include the fact that the city has still not managed to make some of the facilities pay for themselves, which has left the authorities with a bill of around $46 million per annum (Owen 2005). Secondly, although during the year of the games tourism spend increased in the areas and for the businesses located close to the facilities, those not within the immediate vicinity suffered a loss in revenues during 2000 (Owen 2005). These costs are seldom accounted for by bid organisers and promoters but they do have an impact of the profitability levels for the tourism and hospitality sectors. These results show that the legacy of the Sydney games has been mixed in terms of the subsequent tourism benefits that it has brought to the city and the country. Athens 2004 The cost of the Athens Olympic Games again doubled against the previous games (Associated Press 2004). However, in this case there was a mitigating circumstances as these were the first games to be held post the 9/11 event, which led to additional security costs totalling $1.5 billion, a factor that is becoming increasingly important at events of this nature ((Baade and Matheson. 2002a, p.5). Athens has seen mixed results in terms of the tourism benefits culminating from the games. In terms of the tourism numbers in the year subsequent to the games this showed a rise of 10%. (Hubbard 2005). However, other subsequent reports reveal that the facilities constructed for the games have not been made full use of in the past four years (Hersh 2008), leaving the country’s tourism sector in a position where it has not capitalised upon the impact of the event. Nevertheless, in terms of the revenue received from tourism in Greece, in the four years from 2000 to 2004, this rose from $17.7 billion to $29.6 billion, an increase of over 67% for the period. This has resulted in an increase in hotel occupancy during the same period. However, like other of the case study cities, there has not been a marked improvement in the levels of employment in the tourism industry experienced since 2000. Therefore, it would appear that some of the tourism benefits from the Athens Olympics have centred solely on the year of the event whilst others have had an extended lifespan. Manchester 2002 The last major international sporting event to be held in the UK was the Commonwealth games in Manchester in 2002. In regards to cost the budget and eventual cost of this event was insignificant when compared with the Olympic Games but, at around  £80 million it is still an investment that is expected to produce a positive return in relation to tourism benefits for the area. The Manchester Commonwealth Games legacy programme anticipated that the games would produce the following benefits for tourism in the area (Ecotec 2007): 300,000 new visitors a year spending  £18 million in the local economy Increase in mid-range hotel accommodation 6,400 new jobs According to recent reports (Ottewell 2006) tourism in Manchester has seen a significant growth in the past eight years, which reflects the benefit that hosting the Commonwealth Games has brought to the area. Visitor numbers have risen from 79 million to 94 million between 2000 and 2005 and tourism spend has seen a growth to a level of  £3.92 billion ( £3.05 billion in 2000). Furthermore, in terms of tourism related employment, this figure has also risen to 59,046 in 2005 (51,704 in 2000), an increase of 7,342. When these figures are compared with the estimates that were produced as part of the original bid calculations it is apparent that in all areas the expectations have been exceeded. This shows that the city has certainly benefitted from the legacy programme that used a considerable element of the capital budget set aside for the games has had the desired effect and produced the required returns (Eurotec 2007). The positive result achieved in this instance is further evidenced by a statement given by one of the games organisers in 2007. â€Å"We estimated that  £22m in business benefits across the northwest derived from the Games at the time,† says Rosin. â€Å"There was  £2.7m added value for every  £1m invested. There has been investment in the financial sectors, in the city centre and in particular in east Manchester. Associated retail development and the creation of employment for local people in this area can be directly attributed to the Commonwealth Games† (Editorial (2007). These results have occurred despite the fact that in other areas of the economy, including the GDP, Manchester has seen less of an improvement (Ecotec 2007). 3.4.  Discussion Perhaps the most important aspect of the findings to note is that, from the time of the Atlanta Olympic Games in 1996, the cost of hosting this four year event has escalated at an ever increasing rate. In fact, as the following graph shows (figure 4) the capital investment has doubled on every occasion, including the latest event in Bejjing in 2008. Despite the fact that in most cases a proportion of the costs can be defrayed as a result of sales of media coverage and sponsorship, valued at in excess of $1 billion per event (CBS 1988), this cost escalation does mean that the expectation in regards to the return achieved on this investment has also risen. In other words the benefits, including those enjoyed by the tourism sector, need to have shown significant improvements. However, if the cost of the London Olympic Games in 2012 does not escalate from its current costs of around  £9 billion, it will not only be the first time the games cost have reduced since 1996 but also its return expectations will be lower. Nevertheless, when the expectations of the LOCOG (2007) and other researchers (Blake 2005) are considered against the actual results that have attached to the three previous Olympic Games events being used as comparisons, it is apparent that there are concerns that the London organisers need to consider. In particular, two issues seem to be a recurring problem during the years following the games. The first of these is the use and capitalisation of the sporting venues. In the cases of both Sydney and Athens these have proved difficult to make economically viable post the event. The second issue is tourism employment. In all three Olympic Games case studies, this area of benefits does not seem to have continued to any great extent post the games. However, the result of the Manchester experience has shown that there can be tourism benefits in all of the major areas that have formed the focus of this study. In this city tourism numbers, tourist spend, hotel occupancy and employment have all seen continued growth both at the time of the Commonwealth Games and during the subsequent three years. One of the major differences between this case and the others is that a considerable amount of the investment raised for the games was directed into a definitive legacy programme, which was treated as a separate project and aimed to be an ongoing process rather than culminating in 2002. 3.5.  Summary and evaluation One of the difficulties of evaluating a research issue of this nature is that it is impossible to perform an exact comparison as each event takes place during a different chronological period. For example, an issue that can be said to significant alter the results would be the economic position of the country and other countries during the timescale being evaluated. Furthermore, the detailed statistics in each case is kept in a differing format which adds to the analytical difficulties. However, by accessing and comparing the information relating to each case study from a range of previous researches it is considered that the information and findings presented have been able to be appropriately verified and can therefore be considered reliable. Therefore, although studies by other researchers (Baade, Robert A. Victor Matheson. (2002) and Gratton and Henry (2001)) have indicated that the Games have not impacted upon following years GDP as a whole, it is considered that this has been due to other economic factors and not relevant to the benefits or otherwise of tourism. 4.  Conclusion and recommendations The research question set at the commencement of this research sought to determine: Whether the hosting of the 2012 Olympic Games in London will provide the City and the UK tourism industry with potential benefits both during and post the event. Despite the limitations of the research conducted for this paper, this being restricted to five sporting events that have occurred within the past twelve years, it is considered that, with certain provisions, the response to this question is that the hosting of the 2012 Olympic games can produce potential tourism benefits for London and UK both during and in the years following the event. Whilst the comment of Baade and Matheson (2002, p.98) that the evidence suggests that the economic impact of the Olympics is transitory, onetime changes rather than a steady-state change, is concurred with to a certain extent, it must be tempered with the fact that in certain areas of tourism benefits have been achieved. The poor results they refer to is more due to lack of planning and management by the organisers rather than any external forces or influences. In this respect therefore, it is important to provide the following recommendations to the organisers of the London Olympic Games that should be considered if they wish to achieve a successful and sustainable outcome for the tourism industry. 4.1.  Recommendations In essence recommendations being made can be determined within two main areas, these being related to the planning and execution stages. Planning An essential element of the planning for Olympic Games events is to take notice of the research that has been conducted For example, in this instance the research conducted into the three games that have been used as case studies within this research have all identified areas where improvements might have been made, both at the planning stage and subsequently. Furthermore, research into the Manchester sporting event has shown the benefit of have an identifiable and robust legacy programme which, to a certain extent, should operate independently of the event itself and continue into following years. This position has provided dividends for the Manchester tourism industry that have surpassed the expectations. Execution Secondly, the execution of the legacy strategy is important. All aspects of the post event period have to be meticulously planned and implemented within the required timescale, which as the Greek tourism minister indicated, includes the immediate six or seven months post the games (Hersh 2008), as this is a critical time to build foundations for future success. 4.2.  Summary If the London organisers learn from the lessons of past events and particularly take on board the successes that have been achieved in Manchester, there is no reason why the games should not produce a series of lasting benefits for the London and UK tourism sectors. References Arthur Andersen (2000) â€Å"The Sydney Olympic Performance Survey: The Sydney Olympic Games on the Australian Hotel Industry,† Mimeograph, November 2000, pp.1-7. Associated Press (2004). Games cost Athens over $8.5 Billion. Available from: http://www.msnbc.msn.com/id/5761646/ (Accessed 23 December 2008) Baade, Robert A. Victor Matheson. (2002). Bidding for the Olympics: Fools Gold? In Transatlantic Sport, edited by Barros, Ibrahim, and Szymanski. Edward Elgar Publishing. New York, US. Baade, Robert A. Victor Matheson. (2002a). Mega-Sporting Events in Dveloping Nations: Playing the Way to Prosperity. Available from: http://www.williams.edu/Economics/wp/mathesonprosperity.pdf (Accessed 23 December 2008) BBC News (2005). London plan at a glance. Available from: http://news.bbc.co.uk/sport1/hi/olympics/london_2012/4025027.stm (Accessed 22 December 2008) Blake, A (2005). The Economic Impact of the London 2012 Olympics. Nottingham University Business School, Nottingham, UK CBS (1998). Television, sponsorship revenue could top $800 million. CBS Sportsline wire reports. Available from: http://cbs.sportsline.com/u/olympics/nagano98/news/feb98/revenue2398.htm (Accessed 24 December 2008) Ecotec (2007) An Evaluation of the Commonwealth Games Legacy Programme. Available from: http://www.manchester.gov.uk/downloads/Evaluation_of_Commonwealth_Games_Legacy_programme.pdf (Accessed 23 December 2008) Engle. S.M (1999). The Olympic Legacy in Atlanta. University of New South Wales Law Journal. Vol. 38 Fizel, John., Gustafson, Elizabeth and Hadley, Lawrence (1999). Sports Economics: Current Research. Praeger Publishers. Westport, US. Fort, Rodney D and Fizel, John (2004). International Sports Economics. Praeger Publishers. Westport, US. Hersh, P (2008). Athens post-Olympic Legacy: Empty spaces, unsightly venues, uncertain tomorrow. Chicargo Tribune, Chicago, US Hubbard, A (2005). Olympic Games: Athens’ legacy bigger than the pounds 7 billion bill. The Independent, London, UK Gratton, Chris and Henry, Ian (2001) Sport in the City: The Role of Sport in Economic and Social Regeneration. Routledge. London, UK Humphreys, Jeffrey L and Plummer, Michael K (2003). The economic impact of hosting the 1996 summer Olympics. Available from: http://www.selig.uga.edu/forecast/olympics/OLYMTEXT.HTM (Accessed 22 December 2008) Humphreys, Jeffrey M. and Michael K. Plummer (1995). The Economic Impact of Hosting the 1996 Summer Olympics. Atlanta Committee for the Olympic Games. Atlanta, US. LOCOG (2007). UK Olympics: Our plans. London 2012. Available from: http://www.london2012.com/plans/index.php (Accessed 28 December 2008) Madden, John R

IPO Pricing: Underwriter and Litigation Risk Impact

IPO Pricing: Underwriter and Litigation Risk Impact Going to public fund is one of the strategies to company to getting additional fund. Before that, company must publish their share to bursa Malaysia before invite the public to buying their share. But for unlisted company they cannot simply publish their share to public and they must be listed in bursa Malaysia first. With that they must publish their prospectus when the first time they want to issue share to public and this is we called Initial Public Offering (first time going to public). Background In Malaysia history of IPO are begin when Malaysia stock market was establish as the Malaysian stock exchange in 1960. 1n 1973 the Kuala Lumpur Stock Exchange Berhad (KLSEB) and Singapore Stock Exchange (SES) are begin to replace the Malaysia Stock Exchange. In that time number of company that issuing IPO is not more to 500 companies. From 1973 until 2007 the IPO trend is showing quickly publish. In 1973 the number of listed company only 262 and up until 2007, Malaysia stock market have 1028 company. This rapid increase in the number of new listings is attributed to a number of factors, mainly to raise financing for expansion, to reduce the cost of new funds and to reduce the level of leverage (Shamsher et al., 1994). In 1980, the market valuation in Bursa Malaysia is about RM43 billion and reach to a trillion ringgit in year 2007. It happen when many companies are started to going public fund. Apart from that in year 1991 to 2003 the individual retailers have constituted more than 85% of the market player in bursa Malaysia IPO. Compared to the individual retailers group, the institutional investors group is reporting a smaller average at 2.05%. The remaining 6.47% of the market participants is consisting of others. From the 1984 to the 1995 the newly issue of IPO on the main board on KLSE is 173 company. Similar like that, when certain company wants to issuing the IPO, they are requiring by law to allocate 30% for Bumiputra investor. The main objective is to ensure the Bumiputra has own shareholding at least 33% on the entire market share. The pricing of IPO in Malaysia are regulated by Security Commission (SC) and it only take place when ministry of Trade and Finance (MITI) and Foreign Investment Committee (FIC) have giving their consent to the listing. It means the SC has make valuation on company in term of company financial statement and performance to evaluate whether certain company is really valuable to publish on the bursa Malaysia. One of the differential and unique IPO in Malaysia is, major of shareholder and the promoting bank (underwriter) have the choice to provide the profit guarantee not less than 90% on forecast profit on prospectus. Another way, the prospectus of company must be publish in Bahasa or English language and it must submitted to MITI, FIC and SC and the first trading is about in 12 month. The company, is not to seek approval the right issue from the SC during the 12 month they are listing, because actually the time between companies submit prospectus date to the SC for approval right issue to start trading is about 6 month. Recent reforms in Government Linked Companies (GLCs) are expected to improve performance and encourage private investment. More than 40 GLCs are listed, comprising less than 10% of Malaysias GDP. Changes in management, adoption of performance based contracts for management and implementation of key performance indicators (KPIs) are some of the reform that has been underway since April-May 2004. Merger and Aquistion (MA) actively declined in volume terms, due to a lack of very large transaction. Nonetheless, the number of MA transactions has remained stable over the past two years. Singapores Temasek Holdings acquired large minatory positions in Malaysia banking and plantations companies. In the automotive industry, Chery Automotive, a Chinese assembler has announced plans to earmark Malaysia as their regional distribution hub, while Proton reached a deal to assemble Volkswagen Cars and distribute them in Southeast Asia. Proton, Sime Darby and Telecom Malaysia have all announced acquisitions of foreign companies too. 1.2 Problem Statement Initial public offering (IPO) one of the manners to company get additional fund thru equity funding, when certain company wants to increase their operation, but it not sufficient fund of borrowing they can officially going to public fund primary market (when first time company going to public). In other words, this IPO tend use by small growth firm to increase their capital and to issuing new capital. This company must be perfectly evaluating certain cost, i.e. cost of underwriting, attorney fee, cost of management time allocation to the lawsuit, reputation cost and so on. All of these cost potentially become liability for a small company in the first time they issue IPO. The first problems of the research are to identify about the underwriter effect on IPO. Apart from underwriter, second areas on this research will looks on information of the companies, information also can become higher cost for issuer, they will incur cost to encourage information generation prior to the IPO and after the IPO because issuer want giving good impression to customer about their company. But for customer, cost will be incurred when they want searching strong information about certain company profile. Basically, IPO will be determining by investment bank and IPO firm managements to setting up IPO price (offer price spread). This to make comparison, between company offer price (company determine IPO price) and what actual price should be offer by company. On top of that, potential litigation costs are quite significant for firms that have recently gone public. Attorney fees, the costs of management time allocated to the lawsuit, reputation costs, and settlement costs represent an enormous potential liability for a young firm. The last areas we will look on relation between risk and IPO in an aspect of the litigation-risk, where the firms with higher litigation risk will affect their IPO? 1.3 Approach of the Study In research we have two methods, firstly we have quantitative and second the qualitative (Gubra and Lincon, 1994). In our research the quantitative method will be chosen with the purpose of this study because it able to value observation, precise measurement, statistical analysis, data collection is fix/cannot manipulate, variable truth and the most important is the hallmark good quantitative research are reliability and validity of data collection. After data are already collected it will be need to be edited, then data have to be coded and lastly data have to be key in and software programmed used to analyze the data. After data has been analyzed, we can make interpretation to getting conclusion about our research and make recommendation or suggestion to make improvement to Malaysia IPO. The final result also can be use for investor to do decision making about the attraction investment for them. 1.4 Scope of Study The scope of our research is consisting all company listed during 2000 until 2008 in Bursa Malaysia, whereby compasses 8 years in areas of to identity whether the Underwriter, Litigation and Prospectus will influence company pricing of IPO. CHAPTER 2 LITERATURE REVIEW This chapter we examine those factors generally considered to impact IPO performance to assess the extent to offering price is likely to be set and in setting the offering price. It is organized into two sections. The first section presents the historical of IPO and second section given the capital structure, secondary market return, litigation and prospectus in effected the IPO pricing. 2.1 Initial Public Offering Malaysia law define sale of expand authorize share of a company as new issue and the offer of share from the existing shareholder to the public is define as sale of share. The new issue market therefore consists of new issue and the sale of share of private company and government linked company to the public. Regulator approves new issue with elaborate care to ensure public interest is safeguard and the approval process may take up to a year in a large placement. Offering new issue to outsider help to raise finance for expansion and to obtain less costly source of new fund. Some research has been done by Fama 1984, company that listed in the New York market raise capital at a lower cost, the having from which amount to three quarter of one percent compare to unlisted company. Apart from that the investor has purchase of share listed in the secondary market obtain nominal yield, with are lower on average than in the new issue market. This extra return in a new issue market is the insider value factor which make offer price lower thus giving a high return. The over subscription of new issue keep feeding the frenzy for new issue. One study has suggest that the over subscription rate in Malaysia average 46 time (Dawson 1987, Yong 1991). Similar like that the new issues are price by the market at a much higher level than would be the case if (a) the new issue was equally like to be issue in bull or bear market and (b) there is no frenzy in wanting to subscribe to new issue. Because of the frenzy in the new market issue, there is practice pressure during the initial few month, which keep the price artificially high during this early period after listing. At the same thing, one would expect the price in the new issue market to attain normal level after the initi al few month when normal price unfettered by price pressure begin to emerge. For another part the new issue are substantially underprice in the Australian, UK, USA and the developed market. It similar behavior found in Malaysia because the offer price appears to be a deep discount of the initial day for market price. But the extent of underpricing is smaller in the developed market than in the developing market. The research finding on the IPO in the some developed country such as Australia, UK, USA and developing market such as Korea, Malaysia Singapore and other suggest an apparent underpricing of new issue because offer price appear to be a large discount off the initial listing day market prices. Considered again the long run share market return report in all these country, and the reward rate of those allocation new issue are substantially higher than normal rate of return in the secondary market of these country. Therefore, new issue should provide higher reward, which is the source of underpricing. apart from that the investment bankers try to reduce the offer risk and cost of underwriting by underpricing the issue. The present evidence of underpricing may also be due to the uncertainty about the real value of share and the related need to offer compensation to the investor for assuming the risk of the uncertainty. But for recent research has been done (Arif, Prasad, Shamsher and Annu ar 1994) contradict this widely disseminated explanation. Share appears to be issue at their intrinsic value but then price are bid up by an optimistic investment market, which wrongly interpret demand pressure as understanding. While Ross (1984) explain the underpricing of IPO using the idea of information asymmetry between informed and unimformed investor. He suggest that the asymmetry of information between the issuer and their investment banker is less relevant for pricing. 2.2 IPO and Secondary Market Returns Bradley et al (2009) examined IPO secondary market returns on the first day of trading during 1993-2003, and findings important things. First, there are open to close return are much larger than previously documented and potentially exploitable. It was averaging over 2% during the sample period. Second, we found that the market does not reach an equilibrium price until approximately 2 h into trading. Although this average is driven upwards by IPOs during bubble period. Third is that effect is persistent over the entire sample period, considered where they consider several non-mutually exclusive explanations, such as: price support by the lead underwriter, laddering, retail sentiment, and information asymmetry. They also examined the impact of retail sentiment on secondary markets return and found there were a strong positive relationship between the proportion of small trades and open to close returns consistent with the view that retail demand and sentiment can push IPO prices higher. But this argument assumes that these overoptimistic retail investors would ultimately experience a reversal. They also argue that information asymmetry can be in the form of aggregate demand uncertainty, which is unlikely to be resolved until the IPO opens for secondary market trading. 2.3 Company Capital Structure Basically firm has two source of fund, firstly they can use from internal fund and second for external fund. For internal fund they can use additional retain earning and also additional equity of shareholder and for external fund it can be use loan from financial institution and primary debt issue in the debt market. The capital structure theory is inconclusive about which factor determine borrowing level, expect providing the general idea that a firm ability to identify positive net present value investment should determine capital need, and further that a firm capital structure quality also determine the tax shield value from debt. Modigliani and Miller (1958) argue that the capital is not influence by a firm financing mix under the assumption that the capital market is perfect and there is no corporate tax. Average cost of capital will be lowering when market is imperfection and it increase value of the firm subsequent to borrowing. But for (Robicheck and Myer 1966, Hamada 1972) the firm financial risk will be increase when company has make decision to continuously borrowing. For another part if company is have extra debt, the shareholder risk will be higher. It happens because if these companies are going to bankruptcy, the first company obligation action is paying all their debt first. For (Gupta 1982) before company achieves maximum debt, the maximum value of the firm will always be reach first. Company has made decision going to public because they want to increase fund to run the business in big scale. For (Gordon 1990) examined the relationship between a firm financing structure and the company technology. His result has supported the idea that firm with high capital to labor ratio acquire financing to run it business. 2.4 IPO and Litigation risk In our study on litigation, Skinner (1994) finds that the threat of litigation potentially alters firms disclosure behavior, and Krishnan and Krishnan (1997) and Shu (2000) find that this same threat causes auditors to stay away from risky clients. We extend this line of research by documenting another effect of litigation risk, it leads IPO firms to lower their offer price as one form of insurance against future litigation. Tinic (1988) tests the litigation-risk hypothesis by comparing the IPOs prior to and subsequent to the 1933 Securities Act, which substantially increased the legal exposure of IPO issues. Alexander (1991) examines 17 computer-related IPOs in 1983. She finds that securities lawsuits were more likely filed when the dollar amount of the ex post stock price decline was sufficient to support the fixed cost of bringing a case. She also finds little variation among the settlements as a fraction of shareholder losses. Further, consistent with the deterrence effect of IPO, there is evidence that firms that engage in more IPO significantly lower their litigation risks, especially for lawsuits occurring closer to the IPO dates. After controlling for the endogeneity of initial returns and lawsuit probability, both the insurance and deterrence aspects of the litigation-risk. The simultaneous-equation framework used in this study is potentially useful for other settings. 2.5 IPO and Prospectus Information The process of taking a firm public enables firms owners to realize both personal and professional goals. Taking the firm public, for example, enables entrepreneurs who have invested considerable time and resources in building the firm to sell a portion of the firm, thereby providing personal funds as a reward for their efforts and enabling them to diversify their wealth (Rock, 1986). Moreover, the IPO helps entrepreneurs secure funding that allows them to pursue growth opportunities for the firm. As the firm grows, entrepreneurs may find themselves unable to secure increasing capital requirements to fund firm growth. Also, entrepreneurs may seek to avoid covenant-filled commercial loans that hinder their ability to take the risks necessary to pursue firm growth opportunities (Rock, 1986). Investment bankers are responsible for coordinating the stock offering for the IPO firms managers (Benviste and Spindt, 1989). They provide an invaluable source of guidance for IPO firm entrepreneurs and managers, most of whom will have had no prior experience with the complex, often lengthy, process of taking the firm public. In addition to facilitating the IPO process by counseling firms entrepreneurs and managers, investment bankers assume primary responsibility for effectively marketing the firms securities to the investment community. The investment bankers determine the offer price spread, which must be disclosed either in the preliminary prospectus or shortly after filing the registration statement in an amended prospectus. The actual offer price is not determined until the day prior to the stocks offering. This spread and offer price are of central importance to the entrepreneurs taking the firm public, as they determine the amount of funds the IPO firms owners can expect to raise as a function of the stock offering. Given their centrality in the IPO process, it is important to understand those factors that may assist investment bankers in their initial determination of the spread within which they believe the final offer price will be set and, subsequently, the final offer price. The price spread may provide an indication of the level of uncertainty surrounding the IPO. Uncertainty in the IPO context derives largely from the fact that the firm, while it may have an extensive operating history, has not previously operated under public scrutiny. CHAPTER 3 METHODOLOGY This chapter are consist and will be discuss about the purpose of the study, population of study, data collection, independent variable, dependent variable, research modeling and the lastly the data analysis. 3.1 Population of Study The population of our research is consisting all company IPO from 2000 until 2008. We also want to identity whether the Underwriter, Litigation and Prospectus situation will influence the investor to make the investment and how they react to company announcement of IPO in the good economic situation. On top of that, we might look on about company performance before and after the 1997 Malaysia financial crisis on the areas of our study. 3.2 Data Collection To investigate the new IPO issue since 2000 until 2008, which had all the require information for analysis on our research. The public record in various issue of investor digest, daily diary and the company files from Securities Commission (SC) and Bursa Malaysia (BM) were accessed to obtain value for the variable. On top of that, requests for IPO prospectuses were sent to all firms undertaking IPOs in 2000 and 2008 as identified by the SC. 3.3 Independent Variables We rely on three independent variables for hypothesis testing, the first is the Prospectus Information. Founder CEO is a dichotomous variable with zero being a nonfounder CEO and one a founder CEO. CEO retained equity is calculated as the percentage of the IPO firms stock that the CEO will hold following the opening day of trading. These data are reported in the prospectus filing. Board composition is measured as the percentage of independent outside directors serving on the board. Board size is measured as the total number of directors serving on the IPO firms board. Second independent variable is Litigation Risk, as argued earlier, a firm about to make an IPO faces a trade-off in its pricing decisions. A higher offer price increases proceeds from the IPO, but it also raises the expected litigation costs. Two predictions emerge concerning the cross-sectional relations between IPO and inherent litigation risks. First, firms with higher litigation risk purchase more insurance, that is, they their shares by a greater amount (the insurance effect). Second, firms who choose higher levels of insurance incur lower expected litigation costs in the form of reduced probabilities of lawsuits. The third part is underwriting. The underwriter is playing to influence the public confidence about the company. If the company IPO is not over subscribe, the underwriter will be help that company to resell the IPO and maybe buying the IPO behalf of the company. When the company first time to setting the IPO price, it to hart to determine the suitable price because lack of expertise. The simple way to company is making negotiate with the underwriter. The issuer and underwriter is lock to the offer price regardless of the subscription of the market movement. Basically inside the underwriter agreement it conclude the underwritten fee, amount and whether the issue will indemnify the underwriter again all liability, cost and expence incur by the underwriter in relationship to the issue. 3.4 Dependent Variables This variable is computed as the difference between the high and low values in the range of offer prices established by the investment bankers. We calculate this measure as the (stock price at the time of IPO the firms book value)/stock price at the time of IPO. This price reflects the price at which the firms stock will be sold to initial investors on the opening day of trading. A firm litigation risk is also increasing in the volatility of the stock. One way to obtain the expected volatility is to use the standard deviation of prior stock returns. However, this is not feasible for IPO firms. Another alternative is to use the standard deviation of post-IPO returns. However, this is not observable prior to the IPO and may not be in the managers information set at the time of the offering. For (Smith, 1991 and Raghavat 1996) the company that issue the new security in public need the investment banking to become their underwriter in return for a commission comprise management fee, underwriting fee and the lastly the selling concession. The compny also must carefully choose their investment banker to become their underwriter, because the good of underwriter will be able this company increase their IPO price (negotiation and discussion between bank and company). One of the criteria is the underwriter must know the company industry, tern of propose offering, potential conflict of interest relating to the investment banker affiliation with the issuer competitor and the ability to the company provide research support after the offering price. 3.5 Research Modeling DEPENDENT VARIABLE INDEPENDENT VARIABLE Prospectus Information Initial Public Offering Litigation Risk Underwriter E(à ¯?†¢i) = ÃŽÂ ²1 + ÃŽÂ ²2X2 + ÃŽÂ ²3X3 + ÃŽÂ ²Ãƒ ¢Ã¢â‚¬Å¡Ã¢â‚¬Å¾Xà ¢Ã¢â‚¬Å¡Ã¢â‚¬Å¾ + à ¯? ­i. ÃŽÂ ²1 = Intercept, value of à ¯?†¢I when X2, X3, X4, equal to zero (0). ÃŽÂ ²2 = Changing in à ¯?†¢i when X2 change with assumption X3, X4, is constant. ÃŽÂ ²3 = Changing in à ¯?†¢i when X3 change with assumption X2, X4, is constant. ÃŽÂ ²4 = Changing in à ¯?†¢i when X4 change with assumption X2, X3, is constant. X2 = Prospectus information X3 = Underwriter X4 = Litigation risk à ¯? ­i = Yi error in population. The hypotheses are stated below: H0 = 0, mean has no significant relationship. H1 à ¢Ã¢â‚¬ °Ã‚   0, mean has significant relationship. Prospectus information H0 = Prospectus information does not significant relationship to IPO H1 = Prospectus information has significant relationship to IPO Underwriter H0 = Underwriter does not significant relationship to IPO H1 = Underwriter has significant relationship to IPO Litigation risk H0 = Litigation risk does not significant relationship to IPO H1 = Litigation risk has significant relationship to IPO 3.6. Data Analysis The final stage of our methodology is data analysis. When the data already run we will elaborate on the various statistical test and make interpretation of the result. To analysis our research we use SPSS for window software. The data was analyse to identify, examine, compare and interpreted theme and pattern. The analysis has been started after the collection of all the necessary data basically come from secondary data collection. Use of this SPSS software is illustrated which mainly because they are easily available in business settings. In data analyses, we have three objectives, firstly getting a feel for the data, second testing the goodness of the data and lastly testing the hypotheses developed for the research.