The contemporary issues in India Research Paper - 1

The contemporary issues in India - Research Paper Example The country is suffering from the problem of corruption and this is restricting the human development efforts in the country. Human trafficking is also an issue that is tarnishing the reputation of the country and many people are being trafficked from India into other countries. The increasing population of India is also a major problem the country is facing. All these issues will be discussed in great detail in the essay. Corruption, human trafficking, and increasing population are the three issues that will be discussed in the essay. Corruption is one of the most major issues India is facing today. Many institutions of the country like politics, bureaucracy, and law enforcement institutions all are suffering from the deadly disease of corruption (Express India, p.1). India became an independent state in 1947, before then it was a British colony. In more than half of a century the institutions of the country have not developed enough and this is why the problem of corruption exists in the country. The lack of infrastructure in the country may also be responsible for corruption because people working for the civil services know that they will not be caught while taking bribes. This lack of fear of conviction is one of the major reasons of growth of corruption in India. India is facing corruption problems at the grass root level. It is not just the institutional level of corruption that is haunting India. Lower level civil employees have developed a habit of taking bribes from the ordinary citizens. It is common for very small restaurant owners to pay bribes even to stay open for longer hours (Burke, p.1). This level of prevalence of corruption is extremely dangerous because eradicating it becomes impossible. Top level corruption can be controlled by changing the management of the country through effective leadership but lower level of corruption means that the

Operations Management - Toyota Lean Techniques-Problem Solving Case Coursework - 1

Operations Management - Toyota Lean Techniques-Problem Solving Case - Coursework Example Doug Friesen, is confronted by quality issues in the seat covers of the Toyota Camry production line. The following questions were posed with the hope of resolving this particular quality issues. The solutions provided herein in response to the questions follow the Toyota Production System. The following are the process by which the root cause of the problem will be determined. Get as many samples of seats that failed the quality standards. This is to determine the kind and type of quality issues that is occurring. Another task is to get the quality and production statistics to determine the percentage of error that is occurring and its frequency. Install quality check processes at strategic points in the manufacturing process to determine if the quality issues occur as a result of one of the processes along the production line. Check if the seat cover’s storage facility is in accordance with the recommended storage environment. Determine if the specification of seat covers is of the correct specification as provided for by the design. Check the quality assurance process during delivery of the seats covers if the actual seat specification is thoroughly checked against the actual delivery. The focus will be on the seat cover’s quality as they were delivered. Then in the handling, that would include the process by which their quality is checked against the specification when they were delivered. Their storage environment against what has been recommended. Checking the process by which they are being handled as they are transferred for use in the production line. If the error or deficiency is found to have been in the delivery, corrective measures shall be implemented. If the quality issue has been determined to be occurring even before the delivery of the materials intensive investigation shall be conducted at the vendor. Changes in the vendor strategy shall also be

Jury Nullification Case Study Example | Topics and Well Written Essays - 2250 words

Jury Nullification - Case Study Example v. Morgentaler’s case whereby the cited law did not adequately apply (R. v. Morgentaler, 1988). However, this has always been the norm due to the de facto power granted to juries whereby despite judge’s role of instructing and advising them to act based on the law in question cannot interfere with their final verdicts. For instance, in R. v. Morgentaler’s case the accused were acquitted after the jury found s.251, which they argued violated women’s privileges was true and did not in anyway seem to hold them accountable for their actions. In most cases, jury nullification as evident in the case aforementioned prompt some individuals especially those who have done grievous crimes prefer their arbitration because they are aware of receiving fair judgments incomparable to the magnitude of their charges or all together acquitted. This is evident in R. v. Morgentaler’s case though the involved parties did not prompt the same but owing to then unfolding ci rcumstances about laws’ interpretation disregarded the charges, hence acquitting the accused (R. v. Morgentaler, 1988). Acquittal occurs if jury finds the stated law inapplicable, oppressive as well as unpopular based on their interpretation and other aspects that may influence their irrevocable verdicts them like morality. For instance, in R. v. ... What do you think of jury nullification? Despite numerous negative responses anti jury nullification, I think its role is more of upholding the execution of justice with consideration of morality. However, this in many incidences may differ with both judge and claimants’ anticipations concerning varied laws, which they cite the accused might have infringed based on the case at hand. Since, in all their undertakings and verdicts juries make certain fundamental considerations whose core purpose is to ensure fair trial of all parties involved in the case. However, due to their contrary verdicts to those of the involved parties may seem either unwise or favoring a particular party/side. This is especially evident when the jury nullifies a law that renders one guilty of having violated whereby with the aid of their interpretation pronounce it being conflicting. Hence, the accused acquitted for having done wrong as in the R. v. Morgentaler case where the claimant was very sure the s pecialists were quilt. However, the case overturned when the specialists cited s.251 violated women’s rights by compelling them to carry to term fetus that may in process subject them to both emotional and psychological distress (R. v. Morgentaler, 1988). This is upholding of morality, justice and vulnerable people’s rights as well as protecting those who may not have adequate knowledge concerning interpretation of a certain laws. However, with the intervention of jury the accused end up getting fair judgment or acquitted if the law is oppressive or unpopular as in the case R. v. Morgentaler where the prosecution’s side ended up using another law to defend the cited infringed law (R. v. Morgentaler, 1988). Based on my opinion, this does not imply judges compared to juries are

Death of a Salesman Essay Example for Free

Death of a Salesman Essay An essay on the use of dashes in Arthur Millers play, Death of a Salesman The dash is a handy device, informal and essentially playful, telling you that youre about to take off on a different tack but still in some way connected with the present course only you have to remember that the dash is there, and either put a second dash at the end of the notion to let the reader know that hes back on course, or else end the sentence, as here, with a period. __ Lewis Thomas How does a writer a good writer convey epiphanies exactly so that its grammatically appropriate for eureka! a dash is used placed just so to convey, establish a mood, feeling, tone a character feels whilst saying a line, monologue even an exclamation wherein characters experience a lot of feeling and dominance is implied when a line is ended by a dash interruption in short by another character allowing the reader to see feel the personality traits, characteristics of a character subtlety. This simple line the dash is a many faceted gem a treasure that can be used to highlight many ideas key terms certain events jump off the page because of the use of a dash rather than an ellipsis causes a noticeable break a sharp break unlike that of an ellipsis which immediately gives off the impression of abruptness just as it appears visually a sharp-edged line in the center of a line that breaks the fluidity of words just as the dash in a sentence breaks the flow of thought or conversation. Dashes menial as they are give substance to a pause, break charging it with emotion and meaning no number of words could do the same. Although dashes may seem like a punctuation mark so rarely used, it is an integral tool in writing conversations. The dash represents a discontinuation of an intended statement a visual representation of the abruptly derailed trail of a train of thought allows the writer to interrupt characters as is normal in an average conversation like most of Linda and Willys conversations. Lindas lines are often ended by a dash interrupted by another speaker subtlety informing the reader of Lindas subservient personality. The dashes imply the abruptness of Willys interruptions thereby insinuating that he doesnt listen to her including times when she expresses her adoration for him clarifying that Willys view behavior towards Linda is rather poor- which in turn personifies Willys personality. Linda: You are, Willy. The handsomest man. Youve got no reason to feel that- Willy: Ill make it all up to you, Linda, Ill- Linda: Theres nothing to make up, dear. Youre doing fine, better than- Willy: Whats that? Linda: Just mending my stockings. Theyre so expensive- Willy: I wont have you mending socks in this house! Now throw them out! (Page 39) This whole conversation establishes the relationship between Willy and Linda Willy being the dominant though insensible one, while Linda is the subservient although quite practical one as well as giving insight to Willys guilt over the woman all done with four appropriately placed dashes at the end of a characters lines. However, dashes are not only useful at the end of lines but in the midst of a sentence as well. Just as the dash on the page is a break from the stream of words a break in the voice is represented by a dash on the page. Thus, when a character is overcome by emotions, a dash is placed in the proper place in the sentences structure and a feeling of overwhelming portions is conveyed to the reader. In a tragic play such as Death of a Salesman, the proper use of the dash is essential to establish certain key conversations and the significance of the feelings of the character and their significance in the overall meaning of the story line. Such a conversation is seen when Willy is affirmed of Biffs love (Page 133) where there was placed four dashes upon the page in the span of the conversation each of which insinuates a great deal of emotion. It is these emotions that help build the tragedy in the story line characterizing Willy and Biff in the process. When Biff tells his mom or whoever it is he is speaking to to put Willy to bed Put him-put him to bed. the dash stresses the exhaustion that Biff feels his inability to finish his sentence implies a deep caring for his father an overwhelming emotion. It is the strength of this emotion that astonishes Willy and awakens Willy to the fact that Biff still loves him, and the following lines he says are also broken with dashes so choked with love and boundless joy is he That boy-that boy is going to be magnificent! (Page 133). These statements foreshadow Willys decision to kill himself for the sake of his sons making an impact greater or equal to that of Willys statement on page 98 where he states After all highways, and the trains, and the appointments, and the years, you end up worth more dead than alive. Both statements imply that Willy is going to commit suicide, playing against each other. The quote on page 98 establishes that Willy was considering the option the possibility while the conversation with Ben prior to Biffs outburst acknowledges the cause of Willys hesitance and indecisiveness the effect the suicide would leave on Biff the opinion that Biff would have of him afterward. Thus, when Willy is offered that which is all he really wants his life as it was before, with a loving relationship with his Adonis son and the admiration that this son once had for him through Biffs compassionate voice and tears Willy makes a definite choice as to what he intends to do first seen in his line That boy-that boy is going to be magnificent! (Page 133). It is this line that resolves the inner conflict that Willy feels over Biff and over his lack of success it is in this line that Willy decides to kill himself. Without the use of the dashes, the emotions would not have been conveyed to the reader appropriately losing its power and significance in the overall storyline. Another significant line dash in the play though not necessarily filled with emotion begins Biffs voyage into realization and truth. A dash can represent a hesitance changing of mind as to what must be said to convey the thoughts and sometimes feelings of the character. I tell ya, Hap, I dont know what the future is. I dont know-what Im supposed to want. The dash before what Im supposed to want, allows the reader to realize that Biffs restlessness and lack of success is not failure not in the true sense of the word, for Biff would have to truly attempt thus want success in order to fail. Biffs definition of success is different to that of his familys and this makes him uneasy insecure as to what his life really means. This dash allows the reader to acknowledge that Biff is at a loss of exact words to define what he means and the thoughts running through his head. It is this pause that changes the overall meaning of the sentence without the pause, the sentence would pass over unnoticed. The pause dash underlines Biffs uncertainty which continues throughout the play until Biff realizes the absurdity of his situation and awakens. The dash informs the reader that here lies Biffs conflict this dash is the resolution wherein the conflict is introduced. The dash is the conflict. As a modern tragedy, Death of a Salesman is when broken down an informal play, thus the dash is the perfect punctuation for the certain situations -and sentences that needed to be highlighted in the subconscious. The dash evokes an awareness that is subtle sliding beneath our minds eye to implant ideas emotions and feelings thereby creating importance to an event or phrase. When a dash is used, its used to emphasize and encourage analysis of a phrase. The involuntary response to a dash should be curiosity as to the purpose of this dash. A dash is not so easily used and is thus, so rarely seen. Therefore when a dash is used in writing be it at the end of a line or in the midst of a sentence so attention must be paid1! Bibliography: Arthur Miller (1949) Death of a Salesman Penguin Books USA Inc. 375 Hudson Street, New York, New York 10014, USA 1 Page 56 said by Linda. Jolene Kui September 6, 2002

Discussing the challenges faced by financial institutions in managing risk

Discussing the challenges faced by financial institutions in managing risk When discussing the challenges faced by financial institutions in managing risk, it is important to have a consistent definition of the term risk. Risk can be defined as the volatility of a corporations market value. Risk management involves the protection of a firms assets and profits. Moreover, not only does it provide profitability but also other advantages like being in line with obedience function toward the rule, increasing the firms reputation and opportunity to attract more customers in building their portfolio of fund resources. Cebenoyan and Strahan (2004) suggest that the benefits of advances in risk management in banking may be greater credit availability, rather than reduced risk in the banking system (p.19). This means that banks will have a greater opportunity to increase their productive assets and profit. Only those banks that have efficient risk management system will survive in the market in the long run. They can follow a four-step routine to reduce their risk exp osures and achieve their risk management objectives, as shown below. Figure 1 steps for implementing risk management To properly manage risks, the bank must firstly identify and classify the sources from which risk may arise at both transaction and portfolio levels. Risks inherent in lending activities include market risk, liquidity risk, credit risk and operational risk. Market risk is the risk arising from adverse movements in the level or volatility of market prices of equities, interest rate instruments, currencies and commodities. Banks are always facing the risk of losses in on and off-balance-sheet positions arising from undesirable market movements. The fundamental role of banks in transforming of short-term deposits into long-term loans makes them inherently vulnerable to liquidity risk. The FSA has defined liquidity risk as: The risk that a firm, though solvent, either does not have sufficient financial resources available to enable it to meet its obligations as they fall due, or can secure them only at an excessive cost. Another risk that banks face is credit risk. It is the risk that can be incurred if the counterparty fails to meet its obligations in a timely manner. Loans are the most palpable source of credit risk in many of the banking systems; however, other sources of this risk originate through other activities of banks such as acceptances, trade financing, interbank transactions, financial futures, foreign exchange transactions, swaps, equities, options, bonds, and in the extension of commitments and guarantees, and the settlement of transactions. Operational risk, as its name suggests, is a risk arising from execution of a companys business functions. The Basel Committee has defined operational risk as: the risk of losses resulting from inadequate or failed internal processes, people and systems, or external events, such as the failure of computer systems or error and fraud on the part of staff. Apart from those risks mentioned above, the Federal Reserve System has recognised two other risks: legal risk and reputational risk. Legal risk is the risk of loss caused by sanctions or penalties originating from court disputes due to breach of contract and legal obligation. Another legal risk relates to regulatory risk, i.e., the risk of loss resulting from sanctions and penalties pronounced by a regulatory body. Reputational risk may be defined as the risk of loss caused by a negative impact on the market positioning of the bank. It can be seen as the blowing up of an initial loss, arising from credit, market, liquidity or operational risks. However, banks hardly pay attention to these categories of risks. Once identified, the risks should be evaluated to determine their impact on the companys profitability and capital. This entails measuring them by using various techniques ranging from simple to sophisticated ones. For example, market risk can be measured by using Value at Risk. This stage also calls for estimating three dimensions of each exposure: the potential frequency of losses that exposures have produced or may produce, the potential impact on the organisation if a loss should occur and the potential variation in losses that will occur during the exposure period. Accurate and timely measurement of risk is necessary because with these types of data the risk manager can determine which exposes are most serious and which deserve the most immediate attention. After measuring risk, bank managers should establish and communicate risk limits through policies, standards, and procedures that define responsibility and authority. In other words, these limits should serve as a means to control the risks associated with the banking institutions activities. There is a variety of mitigating tools that banks may employ to minimise the loss exposures. These tools may be diversification, securitization and even derivative such as withdrawal option, Bermudan-style return put option, return swap, return swaption and liquidity option. The final step involves appraising the operation of the program regularly to be sure that it is achieving planned results. It helps the managers to evaluate the wisdom of their decision-making. To efficiently monitor risk, all material risk exposures should be identified and measured again. To facilitate this procedure, banks should put in place an effective management information system (MIS) that will provide directors and senior managers with timely reports on the operating performance, financial condition and risk exposure of the firm. If corrective action is indicated at this stage, the first three steps should be repeated. 2.1 Corporate Governance in the banking sector Corporate governance is a term that is now universally invoked wherever business and finance are discussed. Its purpose is to coordinate a conflict of interest among all parties relationship within the company and to develop a system that can reduce or eliminate the agency problems arising from the separation of ownership and control (OECD, 1997). Agency problem occurs when the agents of an organization (e.g. management) use their power to satisfy their own interests rather than those of the principals (e.g. shareholders). It may also refer to simple disagreement between agents and principals. For example, the board of directors may disagree with shareholders on how to best invest the companys assets, especially when it wishes to invest in securities that would favour their interests. Not merely does the term corporate governance carries different interpretations, its analysis also involves diverse disciplines and approaches. One of the most quoted definitions of corporate governance is the one given by Shleifer and Vishny (1997): corporate governance deals with the ways in which suppliers of finance to corporations assures themselves of getting a return on their investment. The Cadbury Report, however, defined corporate governance as the system by which companies are directed and controlled (para 2.5). Additionally, it recognised that a system of good governance allows the board of directors to be free to drive their companies forward, but exercise that freedom within a framework of effective accountability (para 1.1). The Hampel Report, whilst accepting the Cadbury definition of corporate governance, also noted that the single overriding objective of companies is the preservation and the greatest practical enhancement over time of their shareholders investment ( para 1.16). In a similar vein, Charkham (1994) identified two basic principles of corporate governance: That management must be able to drive the enterprise forward free from undue constraint caused by government interference, fear of litigation, or fear of displacement. That this freedom- to use managerial power or patronage- must be exercised with a framework of effective accountability. Nominal accountability is not enough. In the banking sector, however, corporate governance differs greatly with other economic sectors in terms of broader extent of claimants the banks assets and funds. In manufacturing corporations, the issue is to maximise the shareholders value but in banking, the risk involved for depositors assumes greater importance due to the fact that almost every bit of banks investment are financed by the depositors funds. If it goes bankrupt, it will be depositors savings that the bank will lose. Indeed, Macey and OHara (2001) states that a broader view of corporate governance should be adopted in the case of banking institutions, arguing that because of the peculiar contractual form of banking, corporate governance mechanisms for banks should encapsulate depositors as well as shareholders. Arun and Turner (2003) also support this argument. Further, the involvement of government in banking is discernibly higher compared to other economic sectors due to the larger interests of the public (Capri o and Levine, 2002; Levine, 2004). Rational depositors require some form of guarantee before depositing their wealth in banks. Yet, it is relatively difficult for banks to provide these guarantees to them because communicating the value of a banks loan portfolio is quite impossible and very costly to reveal. As a consequence of this asymmetric information problem, bank managers can have an incentive to invest in riskier assets than they promised they would ex ante. To assure depositors that they will not expropriate them, banks could make investments in brand-name or reputational capital (Klein, 1974; Gorton 1994; Demetz et al 1996; Bhattacharya et al 1998), but these schemes give depositors little confidence, especially when contracts have a finite nature and discount rates are sufficiently high (Hickson and Turner, 2003). The opaqueness of banks also makes it very costly for depositors to constrain managerial discretion through debt covenants (Capiro and Levine, 2002, p.2). As such, government interventions provide the lacking assurance to economic agents in the form of deposit insurance. Nevertheless, although the government provides deposit insurance, bank managers still have an incentive to opportunistically increase their risk-taking, but now it is mainly at the governments expense. Apart from supporting the argument that a broader approach to corporate governance should be adapted to banking institutions, Arun and Turner (2003) also argue that government intervention do restrain the behaviour of bank management. The Bank for International Settlements has defined the governance in banks as the methods and approaches used to manage banks through the board of directors and senior management which determine how to put the banks objectives, operation and protect the interests of shareholders and stakeholders with a commitment to act in accordance with existing laws and regulations and to achieve the protection of the interests of depositors. The Table 1 below shows the general principles concerning corporate governance issued by the Basel Committee specifically for bank boards and senior management. Principle 1 Board members should be qualified for their positions, have a clear understanding of their role in corporate governance and be able to exercise sound judgment about the affairs of the bank. Principle 2 The board of directors should approve and oversee the banks strategic objectives and corporate values that are communicated throughout the banking organisation. Principle 3 The board of directors should set and enforce clear lines of responsibility and accountability throughout the organisation. Principle 4 The board should ensure that there is appropriate oversight by senior management consistent with board policy. Principle 5 The board and senior management should effectively utilise the work conducted by the internal audit function, external auditors, and internal control functions. Principle 6 The board should ensure that compensation policies and practices are consistent with the banks corporate culture, long-term objectives and strategy, and control environment. Principle 7 The bank should be governed in a transparent manner. Principle 8 The board and senior management should understand the banks operational structure, including where the bank operates in jurisdictions, or through structures, that impede transparency (i.e. know-your-structure). Table 1- Principles of corporate governance for bank boards and senior management 2.2 Corporate Governance Mechanism According to agency theory, the corporate governance mechanisms reduce the agency problem between investors and management (Jensen and Meckling, 1976; Gillan, 2006). Traditionally, governance mechanisms can be classified as internal and external. Llewellyn and Sinha, (2000) states that internal corporate governance is about mechanism for the accountability, monitoring, and control of a firms management with respect to the use of resources and risk taking. The main internal monitoring mechanisms are the board of directors, the ownership structure of the firm and the internal control system (Gillan, 2006). Whereas, external corporate governance controls encompass the controls external stakeholders exercise over the organisation and its primary external mechanisms are the takeover market and the legal/regulatory system. However for the purpose of this paper, we will mainly focus on some internal corporate governance mechanism such as the board of directors, more precisely on its independence and financial knowledge. Corporate governance best practices have also stressed in particular the key role played by the audit committee in reviewing a firms internal control system. Internal control systems contribute to the protection of investors interests by providing reasonable assurance on the reliability of financial reporting, the effectiveness of operations and the compliance with laws and regulations (COSO, 1994; 2004). As such, we will also draw some attention on the importance of an audit committee. 2.3 The boards independence The popular media as well as corporate governance experts have characterised boards largely as rubber stamps for management. They are the link between the shareholders of the firm and the managers entrusted with undertaking the day-to-day operations of the organisation (Monks and Minow, 1995; Forbes and Milliken, 1999). As stated in principle 4 above, bank boards should properly supervise the work of managers. Which type of directors performs better this duty than independent director? In fact, such directors can bring additional experience as well as clarity of thought to deliberations independent of views of management. Moreover, since their careers are not tied to the firms CEO, outside directors are believed to be more powerful in keeping efficiently the firms top management (Fama, 1980; Fama and Jensen, 1983), and so could be associated with better performance. Some papers do support this theory. Baysinger and Butler (1985), being among the first studies, find that the relative independence of boards has a positive effect on the firms average return on equity by comparing 266 major US businesses over a ten-years period. Kesner (1987); Weisbach (1988); Rosenstein and Wyatt (1990); Peace and Zahra (1992); Ezzamel and Watson (1993); MacAvoy and Millstein (1999); Brown and Caylor (2004) and Ho (2005) also show that shareholder returns are enhanced by having a greater proportion of outside directors on the board. Research by Brickley, Coles, and Terry (1994) shows significantly higher returns to firms announcing poison pills(rights issued to shareholders that are worthless unless triggered by a hostile acquisition attempt) when outside directors dominate the board. Other studies supporting the benefit of the boards independence are Dechow and Sloan (1996); Beasely (1996) and Klein (2002) who state that as outside membership on the board increase s the likelihood of financial statement fraud decreases. There is also Black et al. (2006) who reports that firms with 50% outside directors have approximately 40% higher share price by studying 515 Korean firms. And more recently, Staikouras C. K., Staikouras P. K. and Agoraki M. K. (2006) find that the percentage of independent directors is positively related with performance measured by Tobins Q on a sample of European banks. On the other hand, others find no convincing evidence that the level of outside directors on the board do add value to corporate performance. For instance, Fosberg (1989) finds that firms whose board is composed of a majority of outside directors do not have a higher performance as measured by the firms ROE or sales. Similarly, Hermalin and Weisbach (1991) find that non-executive directors have no impact on corporate performance in their sample of 142 NYSE firms. Pearce (1983) also find no relationship, as too Changanti et al. (1985) in their study of board composition and bankruptcy. The lack of relation between these two components has also been confirmed by Klein (1998), Bhagat and Black (2002) and Hayes, Mehran and Scott (2004). Other scholars refuting the effectiveness of outside directors on the board are Subrahmanyam et al. (1997) and Harford (2000) for the acquisition transactions, Core et al. (1999) for CEO compensation and Agrawal and Chadha (2005) for earnings restatements . It is normally the board of directors which overviews and approves the risk management policies. But, few papers have tried to link its independence to the firms risk management practices and hedging. By analysing a sample of bank holding companies, Whidbee and Wohar (1999) find that the likelihood of using derivatives seem to increase with the presence of external directors on the board but only when insiders hold a large proportion of the firms shares. Borokhovich et al. (2004) demonstrate that firms most active in hedging risk, especially when making use of interest rate derivatives usage, are those whose boards are dominated by external directors. Conversely, Dionne and Triki (2004); Mardsen and Prevost (2005) point out that outside directors has no impact on the firms risk management policy. Given the mixed empirical findings, it is quite difficult to assert whether the board independence contribute to corporate performance and the effectiveness of risk management. Although Fields and Keys (2003) assert that there is overwhelming support for independent directors providing superior monitoring and advisory functions to the firm, a unique and clear sign concerning the effect of the boards independence on any decision including the risk management one could not be predicted. 2.4 The financial knowledge of the board To adequately perform their supervision role, the board of directors must have financial knowledge (which relate to principle 1). Indeed, when board members are generalists and lack the technical financial knowledge to understand the complicated reports presented to them, they could vote for motions that increase the risks facing of the firm to a large extent. The company may collapse in this way and therefore hinder the shareholders interest. Because of the banks dominant position in the economy; they should possess some financial expertise directors on its board so as to make better decisions that will not lead the firm to go bankrupt. However, given its importance, the research on the value of the boards financial knowledge is quite scarce. At times, reports recognising the benefits of the boards independence also recommend financial literacy/expertise for directors in monitoring the firms performance. In fact, Booth and Deli (1999) and Guner, Malmendier and Tate (2004) suggest that commercial bankers on boards provide the financial skill needed to enable the business to contract more debt. Thus, this states that financial directors do add value to the firm. There is also Rosenstein and Wyatt (1990) who provide evidence that positive abnormal returns associated with the addition of an outsider to the board are higher when the latter is an officer of a financial firm. Later on, Lee, Rosenstein and Wyatt (1999) do come to the same conclusion. However, they were unable to make any statistically difference among the reaction of the three categories of financial directors they consider: commercial bankers, insurance company officers and investment bankers. Moreover, Agrawal and Chadha (2005) discover that the probability of earnings restatement is lower in firms whose boards have accounting or financially knowledgeable independent directors. To the best of our knowledge, researches on the boards financial knowledge have only been related with the firms performance and not specifically on its impact on risk management practices. As mentioned earlier in this study, the board of directors is usually responsible for the firms risk management policies. In other words, risk management is at the core of any board members charter. Financially knowledgeable directors will obviously make better decisions on risk management practices since they will have the technical background to understand the sophisticated financial tools involved in the risk management transactions. As such, firms whose boards are composed of financially knowledgeable directors engage more actively in risk management. 2.5 The audit committee The audit committee is intended to provide a link between the board and the auditor independent of the companys management, which is responsible for the accounting system (IOD, 1995). The chief objectives of an audit committee are to improve the quality of financial reporting, to reduce the potential authority for the non-executive director, to improve the channel of communication with the external auditor and, perhaps most importantly, to review the adequacy of the companys financial control systems. Tricker (1984) defines audit committee as being an important vehicle for ensuring the supervision and accountability at board level. As such, audit committees are very important in banking to safeguard the shareholders interest as well as the public trust. Just as for the board of directors, independence is also considered important for audit committees because outside directors can exercise their voice and be seen to make a valuable contribution since they are free of any influence arising from the firms CEO. Thus, the reported empirical evidence supports this argument. Klein (2002) shows that independent audit committees reduce the likelihood of earnings management, thus improving transparency. In addition, Abbott, Park and Parker (2002) argue that firms with audit committees comprising entirely of independent directors are less likely to have fraudulent or misleading reporting. Ho (2005) states that there is a strong positive link between independent audit committee and corporate competitiveness and also with return on equity after analyzing the international companies from 1997to 1999. Brown and Caylor (2004) do provide evidence that audit committees comprising of independent directors are positively related to dividend but not to operating performance. On the other hand, some authors find a negative relationship or simply no relation at all between independent audit committee and the firms performance. Hayes, Mehran and Scott (2004) prove that the firms performance measured by the market to book ratio is not affected by the proportion of outside directors sitting on the audit committee. Agrawal and Chadha (2005) do come to the same conclusion by indicating that independent audit committee members are unrelated to earnings restatement. There are also Beasley (1996) who finds no apparent correlation between audit committees and financial statement fraud, and Klein (1998) who reports no relation between share prices and the audit committees composition. Yet, Carcello and Neal (2000) report a negative relationship between the probability of receiving a going-concern report and the proportion of outsiders on the audit committee. According to BÃ ©dard et al. (2004), each member of the audit committee should possess a certain level of financial competency. Moreover, corporate governance literatures argue that there should be at least one member of the audit committee with accounting background. Audit committees with such characteristics are expected to provide effective monitoring as they possess the skills needed to understand what is going on in the organisation. Agrawal and Chadha (2005) show that firms whose audit committees have an outside director with accounting background or financial knowledge are less likely to report earnings restatement while Abbott, Parker and Peters (2002) discover that the absence of a financially competent director on the audit committee is highly associated with an increased in financial misstatement and financial fraud. Xie, Davidson, and DaDalt (2003) find that the presence of investment bankers on the audit committee decreases discretionary accruals in a firm. Defond, Hann and Hu (2004) and Davidson et al. (2004) show that the market has a positive reaction following the appointment of directors with accounting /auditing experience on audit committees board. The audit committees are also responsible for evaluating the risk exposures and the measures taken to monitor and control these exposures. To our knowledge no paper has tried to link audit committees composition with risk management practices. Because of the mixed and conflicting argument on independence, it is difficult to attest whether audit committees independence encourage more corporate hedging. Risk evaluation and risk management tools are quite difficult to use. Understanding them requires a good grasp of mathematics and statistics. Therefore, we expect firms whose audit committees members are qualified as financial expert to engage more actively in risk management practices. Furthermore, The Cadbury Report has insisted that all listed companies should have an audit committee comprising of at least three members. This is to encourage firms to devote significant director resources to their audit committees so that audit committees monitor the firms management more efficiently. However, several studies support the idea that large boards can be dysfunctional. Larger audit committees may be plagued with free rider, communication problem and monitoring problems. Therefore, as long as the increase in the audit committees size does not pose these types of problems, firms complying with this requirement are expected to report a higher hedging ratio. Often, corporations, especially financial ones, create another committee named risk monitoring committees. These types of committee are often responsible of the risk monitoring of the firm. However, this does not imply that audit committees are no longer responsible for evaluating and managing risks. They must still discuss and evaluate risk management processes. In other words, audit committees are there to review risk management processes proposed by the risk monitoring committees. As such, same characteristics as audit committees should be applied to these types of committees to fulfil their duties well.

Abstinence :: essays research papers

Abstinence: To chose or not to choose?   Ã‚  Ã‚  Ã‚  Ã‚  Many teenagers just don’t understand the responsibilities that go along with being sexually active, they don’t even think about them. But maybe they should sit back and think before taking part. People should not be having sex just to have it, but because they are in love. The only time premarital sex may be okay is in the boundaries of a loving, trusting relationship. Other wise you will most likely regret it when you get older.   Ã‚  Ã‚  Ã‚  Ã‚  There is so much feeling that goes into being sexually active most teenagers wouldn’t even be able to handle the emotional stress that gets added to the relationship after engaging in intercourse. The person’s self-esteem is at high risk, how will people feel after the relationship ends? It has been prove that â€Å"While many people feel guilty for having sex, or feel hurt and used when a relationship ends after they participated in sex with the other person, abstinence affirms self-esteem.† (Affirming self-esteem 1). But then there are the small numbers of people that actually don’t regret abstinence.   Ã‚  Ã‚  Ã‚  Ã‚  There are ways to show the partner in a relationship that there is a lot of love for them without engaging in sexual intercourse. Instead of sex something’s that people chose to do are, go for a walk on the beach, give each other a massage, have a snowball fight, or make dinner together. Touching may be okay as long as you don’t exchange body fluids. Sex is only okay within the boundaries of love, and with out love it just isn’t worth it.   Ã‚  Ã‚  Ã‚  Ã‚  There are so many responsibilities that go along with being sexually active especially when in a relationship. People have to remember that they must remain faithful to the partner; being willing to compromise; standing by the partner, even no matter how difficult it gets which means everyone has to be willing to work things out with one another. The most important is to remember to always no matter what practice safe sex. So many feelings can be hurt if the break up happens after engaging in sex because it is such an intimate experience that people share with the ones they love. (Moe)   Ã‚  Ã‚  Ã‚  Ã‚  Many teenagers also think that sex is a way to gain intimacy but â€Å"Genital sex is an expression of intimacy, not the means to intimacy. True intimacy springs from verbal and emotional communion† (Fryling 1).

Motorcycle helmet law essay Essay

Michigan Motorcycle helmet lawHello, I am here today to talk to you about the Michigan Motorcycle Helmet Law. -This law permits anyone that is 21 years of age or older that has at least 20,000 dollars in heath insurance and has passed a safety course in the past 2 years to ride a motorcycle without a helmet. I am also here to persuade you that this law doesn’t have a person’s safety as the top priority. Just recently I have witnessed a motorcycle crash happen right before my eyes. My stepmother was taking a turn at only 30 mph when she locked up her breaks and crashed over the handle bars. She has been in the hospital for a little over two weeks and it is a miracle that she is in the condition that she is in, recovering from a skull fracture and bruising on the brain, She has been riding for twelve years, no other vehicles were involved, and she was wearing a helmet, if she was not wearing her helmet, I know that we wouldn’t have her with us anymore. We were hoping she would be home for the forth of July, but the medical staff still haven’t given us a go home date as of today. Studies from the National Highway administration in 2008 showed that motorcyclists who do not use helmets are three times more likely to suffer a disturbing brain injury in a crash than those who are wearing helmets. The regulations to this law are also very insufficient. 21 years of age is when adults are just allowed to start drinking. Many people that turn 21 haven’t quite learned yet how to handle alcohol or how much is too much when it comes to drinking and driving, or in this case drinking and riding. Also 20,000 dollars worth of health insurance is not nearly enough to cover medical bills caused by accidents with a helmet, let alone to be able to cover the costs of the injuries sustained without a helmet, I can’t help but think this is going to raise everyone’s insurance premiums eventually. Even if you still think not wearing a helmet is cool, take a minute to think of this, the only way for over worked understaffed police have to check if you have the proper health insurance coverage is to pull you over, this gives the police probable cause, which in turn takes up your time and the cops time. With this law in effect, death rates and injury rates have skyrocketed up to a new high. The Michigan helmet law is more about ‘freedom’ than about safety. If you want to feel the wind in your hair stand in front of a fan. If you want to get home safe wear a helmet. All in all the Michigan Motorcycle Helmet Law has caused far more bad than good. In the end, I hope that what I have told you today will persuade you to tell a friend, family member, stranger, or even to tell yourself that it is far safer to wear a helmet, than it is to go without one. Please think twice before you decide to ride without a helmet. Guarino, M. (2012, April 13). Retrieved from http://www. csmonitor. com/USA/Politics/2012/0413/Look-ma-no-helmet! -Michigan-repeals-helmet-law.