Ethical and Psychological Egoism Essay

At first glance the theories of ethical egoism and psychological egoism may seem to be very similar, but in fact they differ greatly with respect to their status as making prescriptive or descriptive claims. Ethical egoism is a consequentialist ethical theory that argues each individual should seek to do what is solely in his or her self-interest, and in this fashion it makes a prescriptive claim. Moseley (2006) describes it in this way: â€Å"it is always moral to promote one’s own good, and it is never moral not to promote it. † Similarly, Rand (1964) defines it with respect to selfishness: â€Å"The attack on ‘selfishness’ is an attack on man’s self-esteem; to surrender one is to surrender the other† (p. 7). Therefore, for example, when facing the moral question of whether or not to buy Fairtrade coffee, ethical egoism dictates that the individual should not necessarily think about the employees who pick the beans in Columbia, but should instead consider whether or not buying Fairtrade will give that individual a good image, improve his or her own context, etc. In its strong version, ethical egoism asserts that it is always morally correct to seek one’s own good and never moral to not seek the same, whereas the weak version argues for the former, but not the latter. In this respect, according to strong ethical egoism, I should buy Fairtrade coffee only because of how it benefits me and the thought of benefit for any other person should not even be a consideration. The weak theory, however, still insists I buy the coffee because it benefits me, but it will not necessary condemn me if I also consider the benefit my purchase may bring to Columbian workers for their own sakes. Psychological egoism, in contrast to ethical egoism, is a purely descriptive theory in that it attempts to describe the way in which humans function: it claims the â€Å"fact† that every individual’s actions are driven solely by self-interested ends. However, in this descriptive theory there lies a problematic fallacy. Once one accepts the premise of psychological egoism, namely that everything an individual does is out of concern for self-interest, it is impossible to offer any counter-examples to the theory. For example, if I am a captain of a ship and have decided my crew is planning a mutiny against me, every action that the crew does, whether hostile or simply unimportant, will be interpreted by me as supporting my mutiny hypothesis. In other words, the theory of psychological egoism is simply non-falsifiable. A further difference between ethical egoism and psychological egoism is the doctrine of motivation that undergirds each. Because psychological egoism is merely a descriptive theory, it draws its motivation from nature, or simply â€Å"the way things are†. In this respect, a philosopher like Hobbes (1651) can argue for his contract theory of the state in order to thwart the natural inclinations of humanity to kill one another. His starting assumption is that the state of nature serves as the foundation or motivation for psychological egoism. On the other hand, ethical egoism as a prescriptive theory derives its motivation from the desires of the individual to maximize his or her own self-interests. Self-interest does not mean selfishness, per se, insofar as selfishness pushes for the maximization of individual gains without consideration of others. Rather self-interest may have a communal aspect which allows for achievement of personal goods that, though directed toward the benefit of the individual, may in fact correspond with achievement of goods for others (see footnote 1). Hobbes, T. (1651) Leviathan. Forgotten Books ebook. Retrieved from http://www. forgottenbooks. org Moseley, A/ (2006) Egoism. The Internet Encyclopedia of Philosophy. Retrieved from http://www. cep. utm. edu/e/egoism. htm Rand, A. (1964) The Virtue of Selfishness. New York: Signet, 1970

Arms Race

The great war of 1914 was one of the bloodiest conflicts modern man has yet experienced. Its consequences reached far from the battlefield and into the towns, homes and families of the soldiers. There are many arguable points one could debate regarding the origins of WW1 but much guilt resides on the part of the arms race. An arms race can best be described as one country adding a portion to Its military then a neighboring country doing the same because It is nervous.The two countries continuously keep adding to their military might to keep up with one nother. Edward Cray, Britain's foreign secretary from 1906-1916 offered a good examplel . If one country builds a rail way to the border of a neighboring country, then that country will feel threatened and subsequently will build a railroad of its own to the border. Anticipating an attack, the first country will begin to mobilize its army and perhaps build weapons. The second country now feels incredibly threatened and mobilizes its ow n army calling in all the reserve troops possible.Gray assessed that the only way to stop an arms race is war. An arms race does not simply start on its own. There is indubitably some event that triggers the arming of a country. In WWI, that can be attributed to the treaties between European countries2. When Austria and Serbia get into a dispute, Austria Issues an ultimatum with ten conditions. Serbia agrees to all but one and starts looking around for backup In case of attack. Serbia forms an alliance with Russia because Russia hates Austria. When Austria finds out they call their friend Germany for an alliance.Russia subsequently calls France knowing that France is looking for an easy shot to get back at Germany Tor tne Franco-Prusslan war Trom akes them pay dearly n w cn Germany aeTeats France ana for the loss3. On the day of the ultimatum, Austria declares war on Serbia, Russia declares war on Austria, Germany declares war on Russia, and France declares war on Germany. French an d German Military development France had bounced back fairly quickly after the Franco-Prussian war and paid off their debts ahead of time. They were quickly becoming an industrialized nation with many assets.Their progress made both Germany and Britain wary because they both wanted to be the most powerful country and were insecure about any sort of threat. Around 1912 when things were beginning to heat up in Europe Russia, Germany and France began to ramp up their military forces4. Germany Added 120,000 men to its army in anticipation of trouble. With Germany beginning to arm, France passes a compulsory service law that required all men ages 20-40 to serve in the military for a set amount of time. For twenty years, Frances army had been growing faster that Germanys.This changed drastically though when Germany decided to start pouring majority of their resources into their military. Germany, although not one hundred percent responsible for the war, certainly did not back away from it . They participated in arms races such as these and instigated others such as the naval arms race. When war came about, Germany was more than ready for it because to their years of preparation due to the arms race. English and German Army development Around this same time Germany was trying to cause an issue between France and Britain over the country of Morocc05.Germany was trying to cause issues over the independence of Morocco mainly because they themselves had personal commercial interests in the area and they wanted to insight strife between the two fore mentioned countries. An international conference was called and Germany did not get its way. This critically weekend the already strained relations between Britain and Germany and France and Germany. After Germany failed to get what it wanted, it stopped relying so much on diplomacy and more and more on brute military power.As a result of this, Britain formed an elite group of men numbering 150,000 in size that was ready to cro ss the English Channel at a moment's notice to invade Germany6. Germany knew this and was made nervous by it prompting them to mobilize even more. Russian and German arms Development When Russia saw this, they became concerned and added 500,000 to their own army and launched the â€Å"Great Military Program† that would add 10 percent to its army each following year. Russia had the most available man power but it was also the least industrialized of the major powers which would prove to be a very serious setback.Germany had not been really bothered by France and Russia arming themselves until they formed the Franco Russian Alliance in 18947. If war were to break out, Germany would be fghting on two fronts instead of only one which could spread their resources to the limit. Because Russia's army was 300,000 men bigger tnan Germanys In IYUU, Germany Increased ne growtn 0T Its army even more In anticipation of having to fght a raging battle on two fronts. Russia's army was consid ered a steam roller and was believe to be able to Just â€Å"roll† over any obstacle in its path with no trouble at a118.By this point, Germany, Russia, England, and France all had the new intentions of war such as the maxim gun, airplanes, and gas. They also had the factories to produce them. Some had better infrastructure already in place but they all had the capability. Germanys advantage ver both Russia and France was its incredible train system that would allow it to mobilize much quicker. The land arms race in general It is quite impressive to look at the spending of European countrys on their defense system in the years leading up to World War 1. Looking at the data, it seems quite obvious that we were on the brink of war.As far as defense spending goes, Germany was the most dramatic influx in spending per capita. While most countries populations are increasing at the about average rate while Russia more than doubles in size. As fore mentioned they were a formidable am ount of man ower yet not yet quite industrialized enough to use these men to their full potential. Britain and German Naval Race In the years preceding WWI, Britain had been making an effort to expand their navy. Due to their status as an island nation, it was imperative that they maintain a powerful naw to protect their interests.Also, in the days of empires, Britain had to maintain a powerful maritime force to protect their interest across the world. In 1889 Britain passed a series of laws known as the â€Å"Two Power Standard†10. This policy states that Britain must maintain a fleet at least as big as the fleets of two other ountries combined. When this policy originally passed, they were looking at Russia and France. Whenever these two nations built new ships, Britain would build an equal or greater numDer In order to stay at or aoove tne same level 0T prestige.Britain encountered some trouble when The United States of America, soon to become the most powerful, prestigiou s, and desirable country in the world, started building an elite naval fghting force. At this same time, Japan and Germany were both developing their maritime forcesl 1 . Originally, Germany wanted to threaten Britain into Joining he triple alliance by building their naw but this had the opposite effect. Winston Churchill pointed out that Germany did not really need a naval force and it was more of a â€Å"luxury' while Britain's was a necessity.Sir Edward Gray stated that Britain's naw is to them what Germanys army is to Germany. They also argued that Germany was only producing a naw to threaten Britain's commercial trade interests and their imperial colonies. However, Britain is not the kind of country to sit around aimlessly while they feel threatened. They responded by building a new type of ship powered by a turbine engine called the Dreadnaughtl 2. This new fghting wonder was supposedly capable of sinking an entire fleet of it's less powerful and agile predecessor the common battle ship.Germanys strategy was not to build a naw so significant that it could beat Britain's in an all-out display of might but one Just big enough to keep Britain's naw busy. By continuing to build ships with no intent of outbuilding Britain, they kept Britain nervous and spending a lot of money they did not necessarily have to. After England introduced the dreadnought, Germany was not far behind. Although they did not want to out build Britain, they could not afford o be outnumbered by ships of such a superior caliber.As it stood in 1914, Britain had 23 dreadnaughts, 10 battle cruisers, 30 pre-dreadnoughts, 47 cruisers, 61 light cruisers, 225 destroyers and 70 submarines13. This was the biggest naw in the world. Germany was in second place with 13 dreadnaughts, 6 battle cruisers, 30 pre- dreadnoughts, 14 cruisers, 35 light cruisers, 152 destroyers, and 30 submarines. We can attribute the fact that Germany is most renowned in this wasr for the use of submarines due to their sin king of high profile targets like the Lusitania.Also, Britain's submarines would not have had the great opportunity at sinking ships German submarines did because there were not as many German trade ships floating around. Looking at these numbers, we can tell that Germany had precisely built the amount of ships they needed to keep the Englanders occupied and nervous. This was a very good plan on Germanys part because every dollar Britain was pouring into their naw was a dollar that would not go towards their land force. Germanys army was far bigger than England's and they wanted it to stay that way.In 1912, Britain ctually tried to reach a settlement with Germany regarding the future of the arms race but it proved unsuccessful when Germany rejected it14. Britain did not want to keep pouring as much money as they were into their naw or military at all. As a result of Germanys refusal, Britain recalled all their ships across the world back to home waters to be ready for an attack. The other Naval Powers France ta s tnlra place wltn 14 areaanaugnts, no Dattle crulsers, 15 pre- dreadnaughts, 19 cruisers, 6 light cruisers, 81 destroyers, and no submarines. America came in behind France in fourth place.We had 10 dreadnaughts, 1 battle cruiser, 7 pre-dreadnaughts, 8 cruisers, Slight cruisers, 106 destroyers, and 39 submarines. We ruined Britain's 2:1 policy in 1916 when Woodrow Wilson passed a law that required our naw to be at least as big as Britain's. Russia also had a mid- sized naw although it was iced in to their cold and inhospitable harbor at St. Petersburg. They possessed 4 dreadnaughts, 1 battle cruiser, 7 pre-dreadnaughts, 8 cruisers, 5 light cruisers, 106 destroyers, and 36 submarines15. Japan was also a cause of worry for both Germany and Britain at first hen they emerged from their mystical land with a not inconsequential navy.They possessed 4 dreadnaughts, 2 battle cruisers, 2 pre-dreadnaughts, 9 cruisers, 1 5 light cruisers, 56 destroyers, and 15 subm arines. All these naws had been escalating dramatically over the years leading up to World War 1 even though most of the fghting was to be on land. This was because if one country could have a big enough naw to hold a blockade across a main importing port of the enemy to cut off their supplies. In conclusion, I think we can definitively say that Sir Edward Gray was correct when e stated that the only means to end an arms race is through war.Once things begin to escalate, there is only a small disturbance that is necessary to catapult the countries involved into all-out war as seen in The Great war. Once an army is mobilized and hostile with another country, the only thing necessary to get the ball rolling is a degrading remark from a high up official or perhaps a trigger happy soldier. All this could be avoided if the countries had not been trying to compete against each other in the development of arms, armies, and navies.

A good leader Research Paper Example | Topics and Well Written Essays - 1000 words

A good leader - Research Paper Example Later in his adulthood, Lincoln moved to Illinois where he undertook various jobs including that of a postmaster, shopkeeper and surveyor. He joined politics, serving the Illinois legislature between 1834 and 1836, and later becoming an attorney. Lincoln married Mary Todd in 1842 with whom they raised four sons (White 9). In the 1850s, Lincoln went back to politics at a time of great concern over slavery in America. Leading the Republican Party, Lincoln was considered as being politically moderate. Though he lost the senatorial race in 1858, he stood out as a strong politician. In 1860, he won the presidency by about 400,000 popular votes, also carrying the Electoral College. He was re-elected into presidency in 1864 where he encouraged Southerners to drop their weapons and join in a reunion. An actor, John Wikes Booth, assassinated Lincoln on the Good Friday of 1865 because he thought that the president was helping the South (Keneally 17). The life of Lincoln in general inspires the recognition of a good leader in him. First, Abraham Lincoln was a people’s champion who preferred sharing first hand in the experiences of his people. In his four-year tenure as the president, Lincoln had most of his time spent with the troops. As insinuated by Drehle, he appreciated them as the people who would get the job done (113). His involvement ensured that he timely gained critical information to make appropriate decisions. He would meet with cabinet members and generals, not just in their offices, but also at their homes and the field so as to provide leadership and direction. This enabled him to build strong alliances which proved beneficial at both professional and personal level. This trait is also observed during his service as a lawyer in Springfield, Illinois, earning him the â€Å"natural wanderer† tag because he sought information and facts pertinent to the cases he

Who does the task People or machines. What is the right mix Essay

Who does the task People or machines. What is the right mix - Essay Example A task is the name or identification of a simple work or a complex project that can have sub-tasks or strings of works attached to it (Anderson 1999). Going by this it is a representation of a structure of activities. Such activities, in an industrial or a production context could mean involvement of both men and machines for its execution or implementation. The task in the earlier days was entirely conducted by men and was thus people oriented and they used a few tools in order to organize the task or ease its progress. These tools could be said to be simple form of machines and were invented or improvised by people to facilitate the conduct of their work for carrying out the task to their satisfaction. With advance in civilization and knowledge people invented machines first to simplify their tasks and later to provide assistance in their task. In modern times there a many tasks that are carried out with the use of machines only requiring no human intervention which make the task almost entirely machine oriented. It can be seen that tasks have become more complex with the advent of time but the two ends of the spectrum have remained people and machines. Apparently one cannot do without the other and this raises the questions of importance, relevance, priorities and hierarchy that are manifest in the topic â€Å"Who does the task? People or machines†. Before the Industrial Revolution work was generally people oriented. The worker was the one who planned work and executed it, using and manipulating various tools of his trade to assist him in increasing productivity, improving quality and reducing costs. With introduction of mechanization in the late 18th century the concept of division of labor became an important feature that took away the characteristic of ownership of the work from a person to several persons. This was generally the time when Adam Smith in his book Wealth of Nations (1776) stated that labor [meaning

Research Design Essay Example | Topics and Well Written Essays - 500 words

Research Design - Essay Example The researcher considers the impact of confounding variables while attempting to establish the effect of the treatments by measuring changes in the dependent variable. Central to this design is random assignment. In a sense, this is the only design that can truly establish to greater degree than other designs the cause-and-effect relationship between and among variables. This is done through statistical methodologies to measure if the changes observed are significant enough to warrant causality. An example of these statistical tools is the ANOVA. The quasi-experiment, as opposed to the true experiment, does not employ random assignment. Instead, the subjects are chosen out of convenience to be part of a particular group. It can be said then that somehow the researcher may be measuring the effects of confounding variables rather than the target variable. Moreover, the reason for including the subjects in a particular group can in itself serve as a confounding variable. However, this design also has a means of comparing groups. It also uses statistical tools to account for a cause-and-effect relationship. The single-case design relies solely on an individual subject or a group of subjects to test and compare the effects of treatments. Central to this design is the baseline measure from which the researcher compares the posttest measurements.

Medieval Islamic Philosophy Essay Example | Topics and Well Written Essays - 3000 words

Medieval Islamic Philosophy - Essay Example that had been transmitted from Greece into these countries. In, 323-43 BC Greek classical philosophies experienced a drastic change. From being a fundamentally Greek product, it developed into an international and eclectic cultural movement in which Greek, Egyptian, Phoenician and other Near Eastern religious and ethical elements came together. This change is best represented by the role Alexandria played as the centre of varied streams of notions making up the new philosophy. At the same time as the Abbasid Caliphate was set up in Baghdad in 750 AD, the centre of learning progressively moved to the Abbasid capital, which became later the heir of Athens and Alexandria as the new cultural city of the medieval world. Nearly two centuries later Cordoba, capital of Muslim Spain, began to contend with Baghdad as the centre of 'ancient learning'. From Cordoba, Greek-Arabic philosophy and science were spread across the Pyrenees to Paris, Bologna and Oxford in the twelfth and the thirteenth centuries. During the time of the Abbasi'd Khalifah (Caliph) Mamun-al-Rashid who had established a Bait-el-Hikmah (House of Wisdom) in Baghdad, the influence of the foreign thought seeped into Islamic culture. Works of Greek philosophy and natural sciences were available in Alexandria, Egypt, and some other Syrian cities. Mamun-al-Rashid employed scholars of all religions, Jewish, Christianity, Islam, etc. for the purpose of translating these works into Arabic. Regardless of the strong hold of Islamic theological doctrine on the minds of the Arabs, skepticism and rational thinking increasingly developed and flourished under the encouragement and protection provided by the Khalifah. The first reception of Greek-Hellenistic philosophy in the Islamic world was mixed. It was rejected in the beginning as being distrustfully foreign or pagan, and was thus scorned by conservative theologians, legal scholars and grammarians as harmful or unessential. By the middle of the eighth century AD the image had changed to some extent, with the appearance of the rationalist theologians of Islam known as the Mu'tazilites, who were utterly inclined by the methods of discussion or dialectic supported by the Muslim philosophers. Of those philosophers, the two exceptional persons of the ninth and tenth centuries were al-Kindi and al-Razi, who welcomed Greek philosophy as a form of freedom from the fetters of doctrine or blind imitation (taqlid). For al-Kindi, the objectives of philosophy are rightly well matched with those of religion, and, for al-Razi, philosophy was the highest expression of man's intellectual goals and the noblest achievement of that noble people, who were incompa rable in their quest for wisdom (hikma). Later scholars used this device with mixed results. For instance, Ibn Rushd stated (11), "Since the religion (Islam) is true and summons to the study which leads to knowledge of the Truth, we the Muslims know definitely that demonstrative study does not lead to (conclusions) conflicting with what Scripture has given us; for truth does not oppose truth but accords with it and bears witness to it." Thus it was a given that the Scripture was perfect and true, every

SURVEY BASED ON AN ETHNOGRAPHY DESIGN Essay Example | Topics and Well Written Essays - 1250 words

SURVEY BASED ON AN ETHNOGRAPHY DESIGN - Essay Example If we can identify such conditions, it is possible to take steps to both, manage an effective cure, and prevent further incidents of these illnesses. For this reason, we are attempting to identify what possible areas of child nutrition need to be addressed. In an attempt to understand the possible sources of malnutrition in young children, we request all parents who have minors at home to participate in this study. All you are required to do is to fill out the attached questionnaire to your best knowledge. Your names are not required, as this assures the confidentiality of individual findings. If the study finds any cause for concern, your local health services will be intimated so that quick preventive measures can be taken. We thank you for your time and participation. Part I: B Questionnaire 1. Case no.______________ 2. Age of child:_____________ 3. Weight of child: _____________ 4. Height of the child: _______________ 5. Is the weight within the limits of the child's age norm? a. Yes b. No If no, then is the child: Underweight Overweight 6. Is the child suffering from any respiratory trouble at the moment? a. Yes b. No If yes, please describe the complaint: _____________________________________________________________________________________________________________________________________________________________________________________________ 7. ... Does the child eat adequately each day? a. Yes b. No If No, please explain. ______________________________________________________________________________________________________________________________ 9. Please indentify which of the following foods you child eats adequately on a daily basis. a. Fruit and Vegetables i. Not at all ii. 1-2 serving iii. 3-4 servings b. Rice / Grains i. Not at all ii. 1-2 serving iii. 3-4 servings c. Meats / Pulses and Lentils i. Not at all ii. 1-2 serving iii. 3-4 servings d. Dairy products i. Not at all ii. 1-2 serving iii. 3-4 servings e. Breads i. Non processed _______ servings ii. Processed ________ servings 10. Please describe a typical meal eaten at your home (what items are cooked; and in what manner?) ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________ 11. Are there particular items that the child refuses to eat / is not allowed to eat? _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 12. Does the child have any food allergies? a. Yes b. No If Yes, please mention:

Divorce Rate Essay Example | Topics and Well Written Essays - 500 words

Divorce Rate - Essay Example If the custody battle occurred when the child is your research shows that by adolescence children begin to fanaticize that their parents get back together, often in a fairytale way and they all live happily ever after. The earlier abuse is minimized or not thought about. By adolescence these children show the same symptoms of divorce as other children experience, difficulty making decisions, difficulty in relationships, more susceptible to depression and higher degree of acting out including the use of alcohol and drugs (Johnson, 2004) From the parents perspective custody battles ensue for many reasons but most involve the inability to problem solve how to fulfill the child’s parenting needs from two locations. Every child, male or female, need two parents but to provide that parents must work together. One theory says one of the reasons parents can not work together is because they are taking out their anger toward the spouse in the custody battle. Another theory is that one parent feels they can not trust the other. This often occurs when on parent has been unfaithful in the marriage or has been neglectful in the marriage (Booth 2001). In any case a custody battle generally involved a failed attempt at mediation. It then moves into the legal realm which is likely to involve a custody evaluation of both parents either by a social worker, a guardian adlitum or a psychologist of all three. When everyone’s reports are finished, which can take months and involves multiple interviews with the children, family members and the parents and financial information is usually also included, the case is brought before a judge. The judge then hears from all the professionals involved, both parents and the children if they are old enough. The average contested hearing is from two to three days. At the present time, joint custody or 50/50 custody is the most common ruling( Amato & Sobolewski, 2001 & 2005). All of this has

Week 2 Essay Example | Topics and Well Written Essays - 500 words - 1

Week 2 - Essay Example This performance management plan in healthcare is efficient in gauging the organization for success. This paper will explain the maintenance and development of a culture for outcomes oriented care within a healthcare organization. An organization-wide performance management plan focuses on the performance of an organization, a department or even the employees in the organization. This also applies in healthcare organizations in order to improve healthcare quality. In the past, the clinical decision support system was derived from an expert research. According to various sources, these systems have a significant impact on patients. The system developers were striving to create a program which was able to act just like a human clinician (U.S Department of Health & Human Services, 2009). Nowadays, these systems relate to a wide range of options. Furthermore, there are several types of the support systems in healthcare. Research asserts that these systems are effective in improving the quality of health services provided in a healthcare organization. For example, these systems have significantly lowered the rate of medication errors. This has immensely lowered the adverse drug effects on numerous patients. These systems also provide supportive diagnostic suggestions for some infections. Furthermore, the system is also able to predict some of the potentially hazardous drug interactions. The clinical decision support systems also have an impact on the structure of the organization. Research asserts that these systems have substantially lowered health care cost which is caused by the side effects presented by drugs (U.S Department of Health & Human Services, 2009). On the other hand, cultural competence in health care can be achieved by the hospital staff when they examine their own beliefs and values (Galloway, 2005). The nurses are usually advised to implement and evaluate culturally sensitive care in order to challenge prejudice and

Religious Service Essay Example for Free

Religious Service Essay For my last response paper, I decided that I wanted to attend a Jewish service. Since I had missed the pre arranged field trip to go with the school, I decided that I would grab a friend, and make a day out of driving up to Park City to go to the Temple Har Shalom. We set off on our forty minute drive, and finally came upon the Temple. The temple itself was very intriguing to the eye, it was a mix of brick and what looked like maple wood, the architecture was interesting and had a very modern feel to it. The inside was beautiful, and very spacious. There were chairs set up and tables, and fire places, of course there were Israeli flags hanging from different locations. When we first got in, we first just walked around and marveled at how modern and clean the temple felt. People were starting to come in, and greet each other. It was obvious that the community was very close; everyone seemed to know one another. My friend and I were immediately picked out as being visitors, and so some people came to us and wanted to know who we were, and what we were doing there. Upon hearing my reason for being at the temple, a man kindly offered to first explain to us a little about what was going on. First of all he began to tell us that every synagogue must have three things in order for it to be considered holy. One of these things is the Ark, the cabinet where the Torah scrolls are kept. The second thing is a â€Å"sanctuary lamp† or an altar lamp; a light that shall burn continuously. The third thing he mentioned was a 7 branched candelabrum, or menorah. We walked into where the service was being held, and considering that this specific temple is one of the largest in the state, the room was huge. I was told that the congregation was made of over 300 Jewish families, and there was room for everyone to be comfortable. The pews were set up, and they were all blue behind the rows of pews, blue single chairs were set up. The chairs were all set up to face the ark, which was surrounded by beautiful, white blue and grey brick looking stain glass. Again the building is very new and modern, so the lights where very interesting shaped, they reminded me of tire wheels. The wall on the side of the room had slits of the same stain glass that surrounded near the front of the room where the arc resided. The Star of David and a menorah were also present on the walls. The ceiling was very interesting; it was wood pleats and reminded me of an olden wooden sleigh. The Rabbi who was conducting the service was Rabbi Joshua Aaronson. He was a little younger than I was expecting, I would put him maybe around 35 or so. He was wearing a full length white robe with a Tallit around his shoulders, which was a more yellowish collar, and had what looked like leaves to be on it. He was also wearing a Yamaka. He greeted the congregation by saying â€Å"Shalom† which means welcome. I noticed that there was different books all around, there were prayer books, called â€Å"Siddur† which contained Hebrew, and English translations, there was also the â€Å"Chumash† which is the book that has the torah readings in it, each week a different part of the Torah is read, starting in Genesis and going through to Deuteronomy, once the torah has been read all the way through, it starts over again in Genesis. Rabbi Aaronson spoke to the congregation and told some stories about his wife and family, the whole congregation seemed to enjoy him, and he wa s quite funny. Rabbi Aaronson’s sermon was about happiness, he talked about how he had never really thought about the idea of happiness and Judaism going together, of course he was happy, and had studied the religion for many years, the persecution of the Jews, the nature of God, Faith in God, the rules, the laws, he joked that through all the movies he had seen about Judaism he had never left in a happy mood, with Fiddler on the Roof being the exception. He talked about how he realized that happiness was actually found many places in Judaism, the first of which would be the Tanakh or Jewish bible, one of the sons of Jacob is named Asher, meaning happy. He talks about how the word happy is found most often in Psalms and Proverbs, and mentions that the very first word in the very first Psalms is happy, he then repeats the first Psalm, first in Hebrew and then in English. He explains the Psalms which basically says that a person is happy when he or she has a strong moral compass, and is not persuaded by liars and cheaters. He mentions Psalms 84 and mentions that the Psalms is so important that it is the first phrase in one of the most important prayers of the Shabbat, the prayer in English roughly means â€Å"The Happy Prayer†. The point to his message was that being close to God, and more so being religious and studying God and religion brings people happiness. He talks about a poll that was done with 600,000 Americans which showed that people who considered themselves religious or very religious said they were much happier than those who said they were moderately religious or not religious at all. My favorite part of the service was when the Torah was read. The reading of the Torah was done in the middle of the service, Rabbi Aaronson opened the Ark, and it is custom for everyone to stand when the Ark is opened, to show respect. Everyone rose and chanted a verse from the Torah, which I was told again shows their recognition of the importance of the Torah. The different Torahs were all neatly placed in the Ark, which beautiful covers on them, while the Rabbi took them out, I noticed he carried them to the altar almost like a new born baby, which makes sense considering how sacred the Torah is in the religion. He took off the coverings and there were two other people around him who were the â€Å"Torah checkers† they make sure that whoever is doing the reading is not making any mistakes and is there to correct if a mistake is made reading the torah. They carried the torah around the room and people bowed when it came near them, I was told that I did not have to bow if I did not feel comfortable, but felt I wouldn’t get the full experience if I didn’t. There was a whole intriguing ritual in reading the torah, a man went up to do an â€Å"Aliyah† which is Hebrew for going up, this is like a blessing on the torah before the reader read’s that weeks passage. I had never heard Hebrew spoken before attending this service, let alone heard another language in a church so that was very interesting. I had also never seen a book that was so sacred, of course Christians have the bible but it is not transported around the room, while people bow to it. I thought that showed a lot of tradition and strength in the religion. It is clearly a religion that is very important to those who follow it. I would go into more detail about the torah reading, but I left my notes and my program on the pew when I left and didn’t realize until much too late. The book that allowed us to follow along the torah reading was very great, and I was pleasantly surprised that they did the reading in English as well as in Hebrew. The service ended and people came up to me and shook my hand and of course as always, wanted to know what I thought about it. I have to admit this was one of the most intriguing church experiences I have ever had. The sermon was interesting, the people were great, and there was such a feeling of being close, close to one another and close to God and to a religion that I was very overwhelmed with positive emotion. I am very glad that I attended this service, and am glad this class has allowed me to open my mind to different religions.

Popularity Of Reality Home Makeover Shows Cultural Studies Essay

Popularity Of Reality Home Makeover Shows Cultural Studies Essay Reality television relating to self-help or home improvement is an immensely popular subcategory of television today. From the mid to late 1990s, Ireland saw an explosion of interior design home makeover shows. These programmes would take an everyday typical home and attempt to renovate it within just a few days on a variety of budgets, providing viewers with plenty of tips and tricks on how to take full advantage of their homes. This study will examine how much of an influence these shows really have over the public and how an interior designer is perceived from this exposure on television. Two pioneering shows that focused primarily on interior design and the longest aired shows to date were BBCs Changing Rooms and RTÉs Beyond the Hall Door. Both of these shows aired in 1996 and ran until 2004. Changing Rooms was classed as a do-it-yourself home improvement show with the objective for neighbours, friends or family to exchange homes for two days and to re-design one room in each others homes with the help of a professional interior designer and  £500 pound budget. They regularly hosted designers that created outrageous designs with the outcomes of the finished rooms leading to controversial reactions from the homeowners. In its height Changing Rooms had an audience of millions between the UK and Ireland. Research has shown that Thursday nights viewing at 8pm brought the most viewers; an example of this would be Thursday at 8pm 2nd of Aug 1998 there was 10.59 Millions  [1]  . This fluctuated between six and ten million over the time it aired from 1996 to 2004. In addition to the television series there was a number of books published and a DVDs of the highlights from the series. Below is an extract from the back of the DVD box collection produced it sums the series up accurately. Trust me Im a designer! Many neighbours did and regretted it. Others had their doubts but were delighted. Its all here: the highs, the lows, the tears and the tantrums that make up the best of Changing Rooms! See the rooms that left us speechless and the rooms that we can never forget. Laugh out loud at the outrageous antics of the designers, the stubborn determination of Handy Andy, and of course the neighbours with attitude. Rediscover the breath-taking designs that dropped our jaws and lets not forget about the DIY disasters that made us cover our eyes! Naked women on walls and trees on ceilings Anything you could ever imagine making out of plywood, rocks and purple paint. Crashing teapots and clashing personalities White rooms, black rooms and the infamous its crap! room. Its Changing Rooms at its best, hosted by Carol Smillie, with personal insights from some of your favourite designers  [2]  . The infamous its crap! room  [3]   A couple of Changing Rooms controversial episodes led to tears and tantrums from the owners and designers. One such incident was the its crap! room documented by The Telegraph newspaper. They ran an article on the 12th Sep 2000  [4]  , and it speaks of Mrs. Cairns anger at the result when her bedroom was revealed in her 17th century home. It was the responsibly of Mrs. Cairns neighbours The Ruffs and the new designer to the show Laura Mc Cree to re-design a bedroom in her period home. Mrs. Cairns and her husband helped Laurence Llewelyn-Bowen, the shows other designer, to redecorate a bedroom on classical lines in the Ruffs neo-Gothic mansion. Llewelyn-Bowen is planning to go ultra dramatic in the Ruffs bedroom. Starting by painting the walls a creamy orange colour, John was an artist and he was tasked with creating a large mural for the wall. Handy Andy the handyman on the show is tasked to create an extremely large romantic bed. It has four women one at each corner to give the appearance that they are holding the bed canopy up. Figure (1.1). Llewelyn-Bowen believes this could be his best room design ever. Mrs. Cairns was in the hope that her bedroom would be kept in with the existing style of her 17th century home, but she was confronted with lime-washed floorboards, white walls with terracotta panels and breeze block seats and finally shaving from her neighbours chest were used to create art work in her room. Mrs Cairns went as far as to describe the work as abysmal and summed it up in one word crap. In the midst of Mrs Cairns harsh honest views on her bedroom makeover it left the interior designer Laura Mc Cree in disbelief and tears. Mrs Cairns further when on to say: The rooms are done for television only, they are like film sets. People may not realise the standard of the work that goes into these rooms. If you hired decorators and they left it like that you would fire them.  [5]   At the same time in Ireland there was RTÉs Beyond the Hall Door and it was classed as the interior design series with attitude. It claimed to give viewers the best practical ideas and creative inspiration for every room in their house. Each revamp took three full days to complete by the interior designers with an unlimited budget. Although one such viewer believes the designs creating were tasteless, bland and highly influenced the public. It is no wonder the public at large are so guilty of tasteless and bland interiors, when they are constantly being told that the products of the aforementioned challenge are interesting and beauteous!!!  [6]   In 1999 viewers were invited to watch a new television series. BBCs DIY SOS which still runs today, the show was created due to the immense audience figures from Changing Rooms, the format of the show was slightly different to Changing Rooms and Beyond the Hall Door as it does not focus on a main interior designer. The main focus was actually on the building work and trades men with a team consisting of carpenter, a plaster and electrician and occasionally an interior designer. The show is also based around families who may be struggling due to financial or medical issues, one memorable episode: Nick Knowles and the DIY SOS team travel to Duxford near Cambridge. They enlist the aid of local trades to help Paul and Sarah Behan, who had just started an extension to their tiny bungalow when their young son Joshua was diagnosed with a rare and aggressive form of liver cancer. Joshuas cancer meant the extension had to be abandoned just when it became more necessary than ever. The effort from the trades is immense, but they have only got nine days to finish the job.  [7]   Images to the left are before and after of the living room and kitchen from DIY SOS, Figure (1.2) BBC news reported the following on Friday, 21 April, 2000 DIY enthusiasts are being injured and even killed, after being led into over-ambitious projects by television make-over programmes, the UK government has said. Ministers believe that programmes like Changing Rooms are encouraging people to take on jobs which are beyond their abilities.  [8]   This above comment leads us to the question Are interior design television shows just breading a society of DIY enthusiast or do they lead to clients for interior designers? This question will be answered in the following chapters. While Changing Rooms and Beyond the Hall Door concluded in 2004 we had another home make-over show to our screens ITVs 60 Minute Makeover a daily interior design television program that is going into its ninth year. The unaware house owner is usually nominated by a friend or relative and sent away for two days, while the 60 Minute Makeover team secretly arrives on site. The makeover team would be tasked with renovating three to four rooms in the house all with-in a 60 minutes transformation before the house owner returns home. Throughout the episode, the presenter keeps time with a stopwatch. Half-way through the task, the team take a tea break which gives the designer an opportunity to assess the progress of the makeover and for the paint to dry. The team returns to work once the host starts the stopwatch again. After two days away the home owner approaches their house only to be greeted by family and friends prior to the big reveal. They then receive a tour of their redesigned room s by the host who invites them to react to the changes. The home owner would receive the makeover due to illness or difficult time in their lives with the cost covered by the show, this can add to the emotional reaction to the end results. This leads us to the question, regarding the standard of work being produced in such a short time frame and is it misleading the public into thinking they can do the same. 60 Minute Makeover joined forces with Surprise Surprise to help surprise a super nan. Kayleigh and her sister Chantelle were brought up by their nan, Janet. Shes always wanted a new kitchen, so the team stepped in to work their magic and make Janets dream come true  [9]  Figure (1.3) In 2005 Ireland was in the height of the property market with numerous housing estates popping up all around the country. This was an excellent time for a new design show to our screens RTÉs Showhouse. Showhouse was presented by Neville Knott we see him introduce us to two professional interior designers who plan to take over two identical new houses from the abundance of housing estates in Ireland; these houses would be aimed at first time buyers or growing families. The designers have the task of completing a creative, captivating and ultimately winning interior with identical budget ranging from à ¢Ã¢â‚¬Å¡Ã‚ ¬20,000 to à ¢Ã¢â‚¬Å¡Ã‚ ¬52,000  [10]  . Designers are allocated twelve weeks to plan their designs and six days to work on the interior. Day one of the show the designer talks through their mood boards and concept and where they discovered their inspiration. Half way through the show each designer is allowed to view one room from their competitor house and view are expressed some positive and some not so. One segment of the show the designers express their talent and assert their role as experienced interior designer and their reason for winning. Finally on the seventh day the public arrive to vote and express their opinion on each of the interiors. This segment of the episode shows the designers viewing the public reactions from behind a closed door, with some heated exchanges as the public are told not to hold back on their opinions. In 2009 alone the show reached over half a million viewers per episode  [11]  . Looking at one such Showhouse episode from Ballbriggan, Co.Dublin  [12]  we see two designers Trevor Wilson and Jane Reddy take on the challenge with a budget of à ¢Ã¢â‚¬Å¡Ã‚ ¬40,000 for each house which are aimed at first time buyers. We see Janes concept being sleek, suffocated and tribal and Trevors style which is cutting edge and funky. Trevor describes his master bedroom Figure (1.4) as a Vibrant, dramatic and classy room, but later when the public view the room one womans opinion of the room is as follows, she absolutely hates it and it looks like Paris Hiltons love nest and finds it quite offensive. Following on to Janes living room Figure (1.5) which is designed with an African theme she describes the room to be sleek, simple and sophisticated. But behold the public opinion where one woman when she is asked by Knott do you think you could have done this yourself?  [13]  She claims she would do a better job than this actually.  [14]  A couple of other opinions exp ressed were that the living room was too plain and the kitchen was bland and lacked in color. Figure (1.6) In Ireland the recession has fully hit the property market and homeowners are now looking for budget friendly home makeover ideas previously we seen budgets of up to à ¢Ã¢â‚¬Å¡Ã‚ ¬52,000 being spent on makeovers such as Showhouse. The following series My Showhouse, Roomers and Nevilles Doorstep Challenge have a range of different budget to match every homeowner requirements. Showhouse thrived for five years on RTÉ, it was then taken to a new level with a twist added and it became My Showhouse. My Showhouse again presented by Neville Knott it gives homeowners an opportunity to receive a professional interior designers help, to transform the interior of their home and make it as good if not better than a Showhouse. Whether they may be first-time buyers, completing a new build or just require updating their tired interiors. Each week the homeowners are presented with two interior designers that create real life walk in mood board based on the clients needs. Figure (1.7). Once the designers have presented their designs, one is chosen to create the interior along with the clients. They have one week to transform their home in preparation for the viewing day. On the final day, the house is opened to the public with their brutal honesty they get a chance to rate the property and answer the following question, Would you live in a house like this? Once again the public are given an opportunity to voice their opinions before voting, about the finished interior. Despite comments such as the living room being too bland and depressing and none of the furniture matches, Figure (1.7) 92% of the voters said they would live in a house like this. 2011 welcomed Roomers to our screens another interesting twist on an interior design series. Knott is joined in this series by interior designers Joseph McCann, Karl Fradgley and Anne-Marie Hamill, each designer is given an opportunity to express their specialist skills and to attempt to renovate unattractive rooms in different homes around Ireland. Each week we see Knott guide the Roomers expert team to tackle unattractive living rooms, bedrooms and kitchens, Figure (1.8) each with a different budget they work closely with the homeowners they are allocated. Each of the designers hopes to produce a captivating interior along with the owners of the property. The difference in this show is that the public do not get a chance to view the finished interiors is down to the other homeowners to view and ultimately it is down to them to decide who the winner will be. The series contained a wealth of interior design tips for viewers, on an assortment of budgets from à ¢Ã¢â‚¬Å¡Ã‚ ¬1,300 to à ¢Ã¢â‚¬Å¡Ã‚ ¬27,000. One episode of the series Roomers attracted an audience in excess of 585,000  [15]  , which was the highest rating yet with a viewing figure of 36% share on the Irish national broadcaster RTÉ  [16]  . In the previous series Knott was the host and in this new series Nevilles Doorstep Challenge he takes the position of the main interior designer to demonstrate his experience of over the last twenty-seven years as a designer. Nevilles Doorstep Challenge rounds up as our final solely based on interior design series produced on Irish television at the current time. This series has an extremely attractive budget of just à ¢Ã¢â‚¬Å¡Ã‚ ¬1000 euro or even less for Knott to work with. From hundreds of applicants, Knott choose six homes across the country to surprise the homeowners, he and his team would makeover one problem room per episode while the homeowner was sent away for the two days. In episode two Knott re-designs a dining room to create a bright and airy space. Figure (1.9) Knott was asked why he decided to become the main interior designer on Nevilles Door Step Challenge He said he wanted to prove to all interior designers and the public that interiors could be designed on a small budget (not rely on expensive items)  [17]   In the following chapters the viewers perception of these shows and what an Interior Designer Role may entail will be explored.

The Rotten Apple Essay -- Self Identity Stereotypes Stereotyping Essay

The Rotten Apple My mom has always told me, "If you're ever going to get anywhere in life, you have to make good first impressions!". I'll spare you the details about the hell holes I'd live in and the dead-end jobs described by my mom if I did otherwise. Not a lot of people would think this is a big deal. I mean, making a good first impression is one of the first things parents should be telling their kids to do right? I, however, get the lecture a lot when I was a kid. Heck, my mom called me last night to give me my fix. I seem to be unable to make any sort of good impression with lots of people. This is especially true with teachers. You had no idea the pain I went through trying to look for a teacher who liked me to write my recommendation. I'm not complaining though. I make no effort in trying to leave a good first impression, nor do I ever care for the first impression someone leaves after meeting me. What is a first impression anyway? It is probably the judgement a person makes on another based on the way he or she talks and acts in the first meeting. But in a lot of cases, first impressions are made based on the stereotypes, especially racial ones, that person fit in. "Wow, you must be really smart.". For most people, this is usually meant as a compliment. And I would take that comment as a compliment, if I had, for example, shown whoever said it the proof to a complicated math problem. But when given the comment the first time I meet someone, it means something completely different to me. It means they forgot to say "because you're Chinese". "Oh, stop complaining! You're in a good stereotype!" is the general response I get when I talk about this with my friends or people in general. That’s about when we would... ...identifies with a stereotype, he is losing a part of his self to the masses. He then tends to act or behave accordingly, based on what the stereotype demands of him. He asks himself, â€Å"What am I supposed to do?† as opposed to â€Å"What do I want to do?†. That â€Å"want†, I think, is the one answer of how to destroy the concept of stereotype. Still, I find it very ironic that, in a country found on the preservation of individuality and equality, there can be such problems associated with stereotyping and double standards. Perhaps, as a country, we are losing sight of the importance and mystique of the individual. Perhaps we are becoming too lazy and impersonal to understand each other for the human that we are, and not just some vague generalization. I am not a nerd, Americanized Chinese immigrant, Weezer-maniac, rebelling teen, overachiever, or crazed sports fan. I am Wang.

Suffering in Charles Dickens Oliver Twist and James Watsons Talking in Whispers :: English Literature

Suffering in Charles Dickens' 'Oliver Twist' and James Watson's 'Talking in Whispers' I am going to explore the ways in which human suffering is portrayed in Charles Dickens' 'Oliver Twist' and James Watson's 'Talking in Whispers'. I am also going to explore the ways in which sympathy is created for the characters Oliver Twist and Andres Larreta. With consideration of Oliver Twist's and Andres Larreta's suffering I am going to see if they can be considered as heroes. I am going to do all of this by analysing areas of the novels, 'Oliver Twist' and 'Talking in Whispers'. Oliver Twist and Andres Larreta both experience a great deal of suffering. They experience physical, emotional and mental suffering. The societies in which they are a part of also suffer. The suffering of society in both novels 'Oliver Twist' and 'Talking in Whispers' are caused by the authorities. However, the society in 'Talking in Whispers' seems to be much bigger than the society that comes across in 'Oliver Twist'. I think this is because 'Oliver Twist' is mainly about the life of Oliver Twist and how he reunites with some of his relatives, whereas 'Talking in Whispers' mainly focuses on Andres Larreta's life and Chile under dictatorship. It also has lots of information about the Chileans as a whole. Both character's Andres Larreta and Oliver Twist possess heroic qualities. I believe they are both heroes for surviving the suffering they had received. Oliver Twist and Andres Larreta both experience physical and emotional suffering. Oliver Twist is a young child, below the age of 10 years. He experiences a great deal of physical suffering. Oliver experiences abuse at the workhouse. He was very poor and had little food, which made him hungry. He had to work to stay alive. Although his work only earned him just about enough to survive. "The hungry and destitute situation of the infant orphan was duly reported by the workhouse authorities." The author Charles Dickens states that Oliver is hungry and is in a poor situation. Another instance of physical suffering Oliver experiences, is the beating he receives after he has a fight with Noah. "Oliver's clothes had been torn in the beating he had received; his face was bruised and scratched; and his hair scattered over his forehead." Dickens describes his condition and implies to the reader that his beating was rough, violent and severe. He makes the reader sympathise with Oliver. Not only is this physical suffering for Oliver, but for a child as young as Oliver it is also emotional suffering. It leads him to believe nobody cares for him and that he is

A Study of Factors Driving Shareholders’ Value

[pic] A Study of Factors Driving Shareholders’ Value and Influencing Sensex Fluctuation In India Executive Summary The objective of this project is to analyze the most important factors which drive shareholders, value. Shareholders’ value here refers to the MVA (market value added) which means the additional value which shareholders are earning on their invested money. The performance of a company matters a lot in creating a positive image of that company in front of its stakeholders. Moreover, the main objective of a company is to maximize the shareholders’ value. So, shareholders always want to know that the Company with whom they have entrusted their hard earned money is efficiently utilizing it and thus, creating Value for them. We have always read the annual report of the Companies to find out information about their â€Å"top line† and â€Å"bottom line†. We also have various financial ratios and terms which act as essential factors to consider for our aid like Return on Capital Employed (ROCE), Return on Net worth (RONW), Earning per Share (EPS), Dividend per Share (DPS), Debt Equity Ratio (D/E Ratio) and Economic Value Added (EVA). This research is an attempt to find out whether EVA, DPS, D/E Ratio, EPS, ROCE, RONW of the companies listed in sensex really explains the value accretion for the shareholders and cause fluctuation in sensex. So, I have taken these variables as Independent variables and MVA as a dependent Variable (shareholders’ value) to apply regression analysis to come out with a result that which variable is having a high degree of Correlation with MVA and significantly explains variation in MVA. To perform this analysis secondary data has been collected from Prowess and www. bseindia. com Out of 30 companies listed in sensex, 23 companies are selected as sample. 7 companies are eliminated because of inadequate information available for these companies. The reason behind choosing these companies is that their reliability in terms of selection of the Companies as only those Companies are selected which have a listing history of at least 3 month with sufficient trading frequency. After that the data of different financial indicators of these Companies (RONW, ROCE, D/E Ratio, EPS, DPS, Avg. Market Capitalization and Beta value) are collected for the period of 2003-2008. CAPM model is used for calculating cost of equity. The EVA and MVA is calculated. After that change in MVA has been calculated with respect of previous year. Here 2003 has been taken as a base year and study has been done year wise from 2004-2008. Both EVA and Change in MVA are standardized by dividing both of them by Net Worth of the respective companies. This is done in order to get relative value of EVA and MVA over the same Net Worth. SPSS software is used for applying simple and multiple regression analysis. First Simple regression has been applied taking one Independent variable at a time in order to find most important variable and eliminate least important variable and analyze each variables influence over Change in MVA individually. After this multiple regressions has been applied in order to find the combination of Independent variables which are strongly correlated with change in MVA. In my study EVA has been found the most important variable then RONW, and then ROCE. These variables are having a high degree of correlation with change in MVA and significantly explaining the variation in MVA individually. While the combination of EVA, EPS, and DPS are having a very high degree of correlation with change in MVA. So, my analysis shows that it is best to invest in a company generating higher and positive EVA, RONW, and ROCE it will add additional value to shareholders. INDEX Chapter-1 Introduction Page No. 1. 1 Company Profile†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 12-13 1. 2 Product & Services Offered by IL Investsmart†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 14-16 1. 3 Background of the Problem†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17-19 1. Introduction of the Project†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 20-21 1. 5 Scope of the Project†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 22 1. 6 Literature Review†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 23-24 1. 7 Abbreviation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 25 1. 8 Research Objective†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 26 1. 9 Introducing MVA and EVA†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 27 Chapter-2 Research Methodology†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦29-30 2. 1 Limitation of Research†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 31 Chapter -3 Research Analysis 3. 1 Different Measures used for Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦36-36 3. 2 Regression Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 37 3. Year wise Result of Simple Regression analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦38-42 3. 4 Overall Re sult of Simple Regression Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 43 3. 5 Year wise Results of Multiple Regression Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 44-62 3. 6 Overall result of Multiple Regression Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 63-64 Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 65 Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 66 Bibliography†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 67 Appendices Appendix-1 Table of Annual Return of Sensex†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 68 Appendix-2 Table of Year wise Annual NOPAT of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 9 Appendix-3 Table of Year wise Annual RONW of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 70 Appendix-4 Table of Year wise Annual ROCE of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 71 Appendix-5 Table of Year wise Annual D/E Ratios of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 72 Appendix-6 Table of Year wise EPS of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 73 Appendix-7 Table of Year wise DPS of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 74 Appendix-8 Table of Year wise Annual Market Cap. of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 75 Appendix-9 Table of Year wise Equity of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦76 Appendix-10 Table of Year wise Bank borrowing of the Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 Appendix-11 Table of Year wise Annual Beta value of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 78 Appendix-12 Table of Year wise Levered Beta value of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦79 Appendix-13 Table of Year wise cost of equity of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 80 Appendix-14 Table of Year wise Cost of Capital of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 81 Appendix-15 Table of Year wise EVA of Companies†¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 82 Appendix-16 Table of Year wise Stdz. EVA of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 83 Appendix-17 Table of Yaer wise MVA of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 84 Appendix-18 Table of Change in MVA of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 85 Appendix-19 Table of Stdz. MVA of Companies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 86 Chapter-1 Introduction 1. 1-Company Profile: IL IL Investsmart Limited (IIL) is one of India’s leading financial services organizations providing individuals and corporate with customized financial management solutions. Investsmart has a strong presence across wide range of products and operates in the areas of Investment Management and Advisory Services, Broking Services, Merchant Banking, Project Syndication, Equity and Debt Broking, Commodity Broking and Distribution of Financial Products. Earlier the company was owned by IL Group but is now held by HSBC, one of the world's largest banking and financial services organizations. According to press Release by HSBC, the Company has completed the acquisition of 93. 86% of IL Investsmart Limited for a total consideration of INR 1,311 Crore. According to Sandy Flockhart, Group Managing Director & Chief Executive Officer of Asia-Pacific, Investsmart will give HSBC access to the World’s third-largest Investor base, with over 20 million retail Investors. The business already has 143000 Customers. The documentation and name changing process is yet going on (till 15th June 2009). In India, The HSBC Group offers a range of financial services including corporate, commercial, retail and private banking, insurance, asset management, investment banking, equities and capital markets, institutional brokerage, custodial services. It also provides software development expertise and global services facilities for the HSBC Group's operations worldwide. IL Investsmart Ltd has an all India presence through its network of branches and franchisees over 128 cities. Following a successful Initial Public Offer (IPO), IIL has been listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). IIL is geared towards understanding and achieving the financial goals of all its customers, through its specialists in the aforesaid areas. IIL’s 2000 employee provide a complete range of Investment solution in India through 88 branches and 190 Franchisee outlets from 128 Cities. It has been recognized as â€Å"National Best Performing Financial Advisor – Retail† for two years in a row (06-07 and 07-08) by CNBC TV 18, With a market capitalization of approximately US$260 million. The Corporate Office and Research Division are located in Mumbai. In Delhi, the regional office is at Caunaght Place and the branch office is at Pitampura. . 2-Products and Services Offered by the IL: The Company has grouped its Product and services in following manners: o Retail Offering o Institutional Offering o Advisory Report & Advisory Services o Online Trading Retail Offering: It includes Advisory Products regarding research reports and analysis. Trading product: It includes Equity and Derivatives. NRI Products: It includes NRE Equity, NRI Portfolio Management services, Mutual Funds, IPO, Insurance, Wealth Management Products, PAN card services, Advisory Report and Accounting and income Tax return filling in India. Institutional Offering: |Investment Banking Services | |IL Investsmart (IIL) offers extensive range of Investment Banking Services for equity | |related products and instruments. Their team advises Customers on transactions like business | |structuring and capital raising opportunities based on their corporate needs and state of capital | |markets. Services it specialize in include Management of: | |Initial Public Offering (IPOs) | |Follow-on Offerings | |Qualified Institutional Placements (QIPs) | |Buyback of Equities | |Open Offers | |Mergers & Acquisitions | |Private Equity Placements | |ESOPs | |Institutional Equity Broking Services: | It includes IPOs, equities, derivatives and mutual funds. It also focuses on identifying undiscovered value stocks to investors. Through its gamut of services, this division is well-suited to corporate investors, banks, financial institutions, insurance companies and FII’s. Their Institutional Equity Business (IEB) is well positioned to offer support for a complete range of investment banking service to corporate. Institutional Debt Broking Services: | Its institutional debt broking division includes, secondary market broking, primary market debt placement & distribution and provident fund advisory services. Advisory Report & Advisory Services: It includes Equity Report, Mutual Fu nd Report, Debt Market Report, Sector Report, Derivatives & Technical Reports. The reports are sent to the Customers on a daily basis before opening of Stock Market in the Morning through email. It also provides Advisory Services by message alert and appointing Relationship Manager to HNI clients. Online Trading: For Online trading Company provides three products as online trading Platform: SmartStart It is a powerful browser based trading system for those who are relatively new to online investing. A unique integrated account, which integrates Cusomer’s banking, broking, and demat accounts. A comprehensive trading service, which allows Investors to invest in equities and derivatives. SmartStart trading platform allows you the flexibility of trading on any internet capable system, with access to both the NSE and BSE. SmartInvest is a browser-based system designed for customers who transact occasionally. It is ideal for investors who believe in the Buy and Hold approach towards investment in equities. SmartInvest's capability as a browser-based trading platform gives the benefit of real-time streaming data with the flexibility of trading on any Internet capable system. With access to both the NSE & BSE. SmartInvest sophisticated yet easy to use point and click order entry interface allows you to react more quickly to the markets and make better decisions. SmartTrade is an EXE based desktop software designed for active traders who transact frequently to capture favorable short-term price movements. The platform offers active traders the tools they need to make critical decisions with confidence. SmartTrade is designed and built from the ground up to address the needs of active traders. SmartTrade makes the most of state-of the-art technology to deliver power, speed and reliability. Through an easy-to-use interface, users are provided with the same tools and advantages that the professionals enjoy. 1. 3-Background of the Problem In two month of my training my job was divided into two parts. In one part I was told to sell the online trading product of the Company and in other part I was told to do my project in equity research. Since the Company is very much customer oriented, It wants to give a complete Investment solution to the customer so that the Company can delight them. For this company has a research division located in Mumbai. Since I was working in Pitampura Branch and that branch deals in Equity only (Online trading Product). So, I was upposed to do my project on Equity research. In this two month as a summer trainee I use to generate Client Database from my own sources and then approaching to the potential Customers by calling and arranging meeting with them and finally converting them into Customers. I was also handling the query of Existing Customer s of the Company regarding Online Products. On the basis of their Query I felt that the new retail Investors as well as existing Customers need a strong support from company to have an idea in which stock they should invest, so that in future their investment will result in a positive or will increase market value of their Investment in Stock market. For this Company use to send three research reports regarding better investment option on a daily basis on their email-id, message alert on mobile, and appoint Relationship Manager. So, for complete Customer satisfaction the company needs to have a strong research Division which is already there in Mumbai. Moreover, because of Global Melt Down investors are very much afraid to invest in Stock Market as the sensex reaches to a minimum of 8000 from 21000 within a Year. Now they are looking for those brokerage firms, which will guide them with a strong research analysis. So, in this case it is very much essential for the Research analysts working in the Company to analyze those factors which are really going to accelerate the market value of share holders in order to gain a competitive edge over the Competitors. It is the time to do an in depth study on those factors which an investor should consider before investing in a particular Company or Stock, if they want to add some more money to their pocket. So, I was given a task to analyze those financial factors which will drive the share holders’ value in future and will keep them at safe end for a long as well as short term Investment. Since, if the market value of stock will increase, sensex will also go up. So, here we need to study on those factors which will increase the Market Value. First thing which comes in my mind is that Stock of a particular Company is very much similar to a person, like whatever is happening in a person’s life, he or she is the one who is responsible for that. For example if a person is not able to pass an MBA exam then we say that something is wrong with his or her mind, if he or she is not able to walk properly then something is wrong with his or her health. It means the problem is within the person. The same things apply in the stock Market like if a company is not able to increase its market value (Share holders’ Value) or market Capitalization it might be the reason that Company is not performing well, not generating enough Profit, not able to use its assets in an effective and efficient manner, not able to increase the earnings of its owner and etc. because of which it is destroying the share holders’ value. So, I decided to work on the financial performance of Companies itself and to analyze whether the financial Performance of a company like (RONW, ROCE, D/E Ratio, EPS, DPS, EVA) is having any kind of correlation with their market value. I have also tried to analyze that is it so that we should consider these factors as a driver of Share holders’ value? Will positive change in these factors give positive result to the Share holders? This is the rationale behind working on this project which is very much required to understand in this recovery period of Economy. 1. 4-Introduction of the Project Today, one of the major goals of financial management is maximum utilization of the capital employed for maximization of Shareholders’ value. Since capital resources are scarce and costly, companies try to employ these resources in a way that yields highest return. Of course this should be accompanied by steps taken to minimize the cost of acquired resources. Otherwise, it will not increase the shareholders wealth and the firm's value. The manager of a firm (as an internal user of financial information) and the investors and other parties (as the external users) are interested to use an appropriate performance measure in order to assess how the managerial actions affect the value of the firm. For this purpose the performance measure used, must consider at least three things, which are: the amount of capital invested, the return earned on the capital, and the cost of capital (Weighted Average Cost of Capital). So, the first question comes to our mind is that how do shareholders know that the Company with whom they have entrusted their hard earned money is efficiently utilizing it and thus, creating Value for them. We have always read the annual report of the Companies to find out information about their â€Å"top line† and â€Å"bottom line†. We also have various financial ratios and terms which act as essential factors to consider for our aid like Return on Capital Employed (ROCE), Return on Net worth (RONW), Earning per Share (EPS), Dividend per Share (DPS), D/E Ratio, and Economic Value Added (EVA). Out of all these factors EVA was introduced as an Indicator for Shareholders’ wealth maximization in 1990’s by Stern Stewart & Co. It has been a focal point for majority of the studies. Stern has claimed that EVA as a tool of financial management is not just a phenomenon and neither is it limited to only `for profit' organizations. Economic Value Added has been put to use for management performance evaluation and much more than just a measure of performance, it is a framework for complete financial management (for improving allocation of scarce capital; and for valuation of a target company at the time of acquisition). On the other hand, Market Value Added (MVA) is an indicator which measures the stock returns and shows the effect of different factors on share prices, in a particular market. While EVA is an accounting-based measure for the corporate performance of one year, MVA is a market-generated number. MVA is cumulative measure of the value created by the management in excess of the capital invested. This research is an attempt to find out whether EVA, EPS, ROCE, RONW, DPS, D/E Ratio of the companies listed in sensex explains the value accretion for the shareholders and fluctuation in sensex. 1. 5-Scope of the Research Since, BSE Sensex of India represents the whole Indian Economy. The companies listed in sensex are the representative of all the major industries of Indian Economy. Millions of investors have invested their money in the stock market. The stock market is something where investors can earn lot of money but risk is also there, because it follows fundamental of high Risk High Return. So, it is very much require to analyze the behavior of market. It means we should know in which company we should invest or we should not. So, the scope of research is to analyze the most important driver of shareholders’ value. Since, Research Division of IL Invetssmart are very much working on analyzing the behavior of stock market so that they can properly guide their customers regarding investment. This research will be a value addition for the Research Division of IL Investsmart, as it ill give an idea which factor is highly correlated with Market value of the Companies. The market value of the Companies is very much dependent on the performance of the Companies. But which performance measure should be taken into consideration by the Investors before investing in any company is very much required. So, this research will expla in whether performance measure does have any correlation with market Value added of the Companies. If it is so then which of the performance measures is strongly influencing the shareholders’ value? The research is an attempt to analyze the influence of few performance measures over the shareholders’ value and this will help in taking correct investment decision. 1. 6-Literature review Stewart (1991) had carried out a research to find out the relationship between EVA and MVA. This study was done by taking average EVA values for the year 1987 and 1988 of 613 companies in USA and then comparing them with their MVA values for 1988. The study found an r2 of 97% between the EVA and MVA value for the Companies with positive EVA while this correlation was insignificant for the companies with negative EVA values. Finegan (1991) took a sample of 450 Companies in USA and found that average value of EVA could explain 61% of the variance in MVA whereas the similar figure was 44% between the change in EVA and change in MVA. He also observed that this r2 was 47% between ROCE and MVA. Dodd and Chen (1992) found ROA as a better driver of Shares returns as compared to EVA. Stern (1993) found out that EVA is the best measure that drives the Shareholders’ value with an r2 of 50% with MVA. The next important driver was ROE with an r2 of 25% with MVA. Lehn and Makhija (1996) also studied the relationship of share returns with ROE, ROA, Return on Sales (ROS), EVA, MVA and CEO turnover. Correlation was found to be highest in case of EVA however, (EVA divided by the Cost of Capital), NOPAT (Net Operating Profit after Tax) and free cash flow and correlation with them with market value divided by invested Capital. He found NOPAT as a better indicator with an r2 of 33% compared with 31% in case of EVA. However, changes in EVA values explained 74% of the change in market value over a period of 10 years. Uyemara and others (1996) studied MVA’s correlation with EVA, Net Income, EPS, ROE, and ROA over a period of 10 years. r2 was highest technology industry for the period 1990-95 and found an r2 of 42%. EPS was judged as the second best measure of with an r2 of 34%. Kramer and Pushner (1997) established that lagged levels of NOPAT explained MVA better as compared to EVA. This correlation was found higher even when changes in NOPAT were correlated with changes in MVA. According to Biddle and others (1991), Net Income was found to be the best measure to explain Share returns. Majority of these studies were focused on US Companies. Giffith (2004) concluded that an Investor or analyst using EVA or MVA measures to forecast performance would have experienced significant losses. Ferguson and others (2005) also doubted that adopting EVA improves stock performance. JHvH de Wet (2005) analyze the database of 89 south African Companies and observed that the Standardized Cash Flow from Operations (CFO divided by the invested Capital in the beginning) had an r2 of 38% with the Standardized MVA (MVA divided by the invested Capital in the beginning), which was found to be the best driver as compared to the Standardized EVA (EVA divided by the Invested Capital in the beginning), ROA, ROE, EPS, and DPS. He also observed that Correlation of EPS and DPS for valuing the Shares. Roji George (2005) analyzed the data of 21 Indian banks for the period 1999-2003 and concluded that there is a positive relationship between EVA and productivity and negative relationship between EVA and NPA. So, what I have found that nobody has done any analysis on the 30 companies which is listed in Sensex, while these companies represent all the major Industries of Indian Economy. So, it is better to analyze these Companies’ behavior. So, this research is an attempt to bridge this research gap. 1. 7- Abbreviation |NOPAT |Net Operating Profit After Tax | |RONW |Return on Networth | |ROCE Return on Capital Employed | |D/E Ratio |Debt/Equity Ratio | |EPS |Earning per Share | |DPS |Dividend per Share | |EVA |Economic Value Added | |MVA |Market Value Added | |R |Coefficient of Correlation | |R2 |Coefficient of Determination | 1. 8-Research Objective The following are the objectives of my research: Main Objective The primary objective is to find out what drives the share ho lders’ value. Specific Objective 1) To find out the correlation of the measures like RONNW, ROCE, D/E Ratio, EPS, DPS and EVA with MVA(Market Value added) 2) To find out the most important factors or variable which explain variance in MVA and that variable should be consider before investing in any Company. 1. 9- Introducing EVA and MVA As the introductory paragraph of this paper suggests, EVA is the surplus profit after accounting for all the expenses including the cost of capital. We have always looked at the figures of Profit after Tax to find out whether a company is performing well or not. However, what we forget is that the shareholders invest money in a company in expectation of some return. So, the basis for evaluation should be whether the company has earned over and above the minimum required rate of return by the investors. If there is surplus after accounting for this opportunity cost of equity, the company is creating value for its shareholders. If not, then it is destroying value. In other words, value is created when return earned by the firm is more than its cost of capital or firm invests in the project with positive NPV. EVA can be calculated through any of the following methods:  · Increasing revenue, Reducing operating costs, Efficient utilization of assets and Raising funds at cheaper cost Chapter-2 Research Methodology Research MEthodology Quantitative Research Design has been used in this research. This analysis was carried out over a period of 6 years (2003-2008) on companies which form part of BSE Sensex. Nature of Data: Secondary Data has been used for this research. The Year wise annual data of NOPAT, RONW, ROCE, D/E Ratio, EPS, DPS, Avg. Market Capitalization, beta value of 23 Companies out of 30 Companies listed in the Sensex. Source of Data: For regression analysis the data has been collected from CMIE’s Prowess and www. bseindia. com. Research Design: Descriptive Research Design has been used as the problem is well define and key issues are known and which is to find out the most important variable which drive the Shareholders, Value. Under this Research design, Cross Sectional Study has been done. Year wise annual value of all the variables has been collected from 2003-2008 for finding the cause and effect relationship between Independent Variables (RONW, ROCE, D/E Ratio, EPS, DPS and EVA) with dependent variable (Change in MVA). The study has been done on yearly basis. Sampling: Judgment (Purposive) Sampling Method has been used for selecting Companies. The analysis has been carried out over 23 Companies out of 30 Companies listed in sensex. Though Sensex comprises 30 companies, 7 companies were eliminated because of the inadequate information available for these Companies. The reason for choosing these Companies are their reliability in terms of selection of the Companies as only those Companies are selected which have a listing history of at least 3 month with sufficient trading frequency. Sample Size: Sample size is of 23 Companies has been taken for the Year 2003-2008. The following Table shows the List of Companies: |Company Name | |Bharat Heavy Electricals Ltd. Oil & Natural Gas Corpn. Ltd. | |Bharti Airtel Ltd. |Ranbaxy Laboratories Ltd. | |Grasim Industries Ltd. |Reliance Industries Ltd. | |H D F C Bank Ltd. |Reliance Infrastructure Ltd. | |Hindalco Industries Ltd. |State Bank Of India | |Hindustan Unilever Ltd. |Sterlite Industries (India) Ltd. | |Housing Development Finance Corpn. Ltd. |Sun Pharmaceutical Inds. Ltd. | |I C I C I Bank Ltd. |Tata Motors Ltd. | |I T C Ltd. |Tata Power Co. Ltd. | |Infosys Technologies Ltd. |Tata Steel Ltd. | |Larsen & Toubro Ltd. |Wipro Ltd. | |Mahindra & Mahindra Ltd. |   | Statistical Tool : The Simple Regression Analysis and Multiple Regression Analysis have been done using SPSS to establish the relationship of MVA with EVA, ROCE, RONW, EPS, DPS, and D/E Ratio on Yearly basis. 2. 1- Limitation of Research The following are the limitation of this research: Since, the research has been carried out to find out the important factors which drive shareholders value. So, only the financial ratios which measures performance of the Companies are taken into consideration. Hence, the focus of research is on micro economic factors only. While macroeconomic factors (like GDP, FIIs, and Inflation) also does matter in creating or eroding the value of shareholders. Chapter-3 Research Analysis 3. 1- Different measures used for the analysis In this research our main objective is to find out the factors which investor should look for or take into consideration before buying share of any Company. Now it becomes very much essential to know the correlation between these Variables and the Shareholders value. Hence we have included some of the main variables like RONW, ROCE, D/E Ratio, EPS, DPS, EVA. These are the variables based on which an Investor decide to buy the shares of a particular Company. As depending upon these variables they buy the shares, the market Value of that particular Company increase which results in increase in Shareholder’s Value. Hence Dependent Variable is MVA. (For data please see Appendix-17 p. no. 84) But since MVA is Stock concept so, for applying Regression Analysis change in MVA (Market Value Added) with respect to previous year has been used. MVA=Market Capitalization-Investment (Book Value) Change in MVA= (MVAt – MVAt-1 )/MVAt-1)x100 Here, MVAt= MVA of the Companies of Proceeding Year. MVAt-1= MVA of the Companies of preceding Year Independent Variables are: six performance measures are considered as Independent Variable RONW, ROCE, D/E Ratio, EPS, DPS EVA. All these variables are flow variables. 1) Return on Net Worth (RONW) =NOPAT/Total NETWORTH NETWORTH=EQUITY+RESERVE & SURPLUSES Return on Networth measures a company's earnings in relation to all of the Investor’s it is using. RONW tells us what earnings were generated from the Networth. The Networth of the company comprises both equity and reserve and Surpluses. These types of financing are used to fund the operations of the company. The RONW figure gives investors an idea as to how effectively the company is converting the money it has into net income. (For data please see appendix-3, p. no-70) 2) Return on Capital Employed (ROCE) = EBIT/(NET Worth+Debt) Return on Capital Employed (ROCE) is a measure of the returns that a company is realizing from its capital. It calculates as profit before interest and tax divided by the difference between total assets and current liabilities. The resulting ratio represents the efficiency with which capital is being utilized to generate revenue. (For data please see appendix-4, p. no. 71) 3)D/E Ratio=Total Debt /Total Equity D/E Ratio gives the idea about the Capital structure of the Company. It shows how risky is the Investment in a Company. On the basis of D/E ratio we can have an idea of the fixed liabilities of the Company if it is using more of Debt. (For data please see appendix-5, p. no. 72) 3) Earning per Share (EPS) = PAT/The Number of Equity Shares Earning per Share is the portion of a company's profit allocated to each outstanding share of common stock. Earning per Share as the name indicates, is the â€Å"per share earning† of a company in a reported period. This is the most important factor in the fundamental analysis of a stock. This coupled with a few related ratios gives a fair idea about the worth of a stock. (For data please see appendix-6 p. no. 73) 4) DPS is the Dividend allotted to each share holders (For data please see appendix-7. P. No. 74) 5) Economic Value Added (EVA) = NOPAT-(Cost of Equity x Networth) EVA attempts to measure how much `value' was created by an organization for its shareholders, during an accounting period. It is defined as the excess of a company's after tax net operating profit over the required minimum rate of return that the investors and lenders could get by investing in other securities of comparable risk. For data see appendix-15, p. no. 82) For Calculating Cost of Equity CAPM (Capital Assets Pricing Model has been used) Ke=Cost of Equity =Rf +? *(Rm-Rf) (For data please see appendix-13, p. no. 80) Rf =Yearly Risk free Rate of Return=6% (The yield of Treasury Bill has been taken as risk free rate of return which is around 6% for the period of 2003-2008) Rm=Yearly Sensex Rate of Return=17% (Average from 1995 to 2007 comes out to be 17% – please see appendix-1, p. no. 68) ? = Beta Value of a particular Stock of a Company E= Total Networth (Equity+ Reserve and Surpluses) Since, the value of ? shows the riskiness of a particular stock with respect to market. This ? value shows riskiness on the basis of book value of a particular Company. So, these ? values of the Companies are converted into Unlevered ? and then Levered ? based on Company’s present Market Capitalization, so that an accurate and present riskiness of the stock of Company can be taken into consideration for the research The Formula is: Unlevered ? ju= ? /1+(D/S)(1-T) Here, D=Total Debt used by the Company S=Total Equity used by the Company (Book Value) T= Corporate Tax Rate (30%) Now Calculating Levered ? based on Market Capitalization using unlevered ? Levered ? = ? ju x (1+(D/S)x(1-T) (For data Please see appendix. -12, p. no. 79) Here, S=Present Market Capitalization of the Company. For an accurate result, the change in MVA and EVA has been standardized by dividing them by the Net worth of the respective Company. Standardization is done in order to find the relative value of EVA and MVA over the Net worth used by the Company. (For Stdz. EVA and Stdz. MVA please see Appendix-16, p. no. 83 and Appendix-19 p. no. 86) The collected and calculated data of ll the variables are attached in Appendices. Please see appendices for detail list. 3. 2-Regression Analysis The analysis is done in two parts. Firstly, simple regression analysis has been done between Dependent Variable (Stdz. MVA) and Independent variables (RONW, ROCE, D/E Ratio, EPS, DPS and Stdz. Eva) taking one Independent Variable at a time for all the Years (2004-2008). Year 2003 has been considered as a base year for the Year 2004 to get change in MVA in 2004 and the same process has been used to calculate change in MVA till 2008. This Simple Regression analysis has been performed in order to understand the key variables which are having high degree of correlation with MVA. After analyzing the key variables, multiple regressions Analysis have been applied with the key variables in order to analyze the impact of key Independent Variables together on Change in MVA. 3. -Year wise Result of Simple Regression Analysis from 2004 to 2008 Result of the Year 2004: | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 771 |. 817 |. 089 |. 332 |. 201 |. 851 | |R2 |. 594 |. 667 |. 008 |. 110 |. 040 |. 724 | |Adjusted R2 |. 575 |. 652 |-. 039 |. 068 |-. 005 |. 711 | |Standard error of Estimate |2. 47868 |2. 4331 |3. 87455 |3. 66887 |3. 81084 |2. 04402 | |Significance |. 000 |. 000 |. 686 |. 121 |. 358 |. 000 | |p-Value | | | | | | | Interpretation: From this table, it can be observed that Change in MVA is positively related with all the financial indicators but only three variable ROCE, RONW and EVA are highly correlated with change in MVA. The coefficient of correlation of change in MVA with RONW, ROCE and EVA is 0. 771, 0. 817 and 0. 51 respectively; moreover the p-value (significance) is also less than . 001. So, at 99% confidence level we can say that, these three variables significantly explain the variation in MVA. This shows that all these three variables are very much important from investment point of view. The coefficient of determination (Adjusted R2) Of Change in MVA with RONW is . 594 which means change in RONW explains 59. 4% of variation in MVA, while with ROCE it is . 652 which means change in RONW explains 65. 2% of variation in MVA and with EVA it is . 711, which means ch ange in EVA explains 71. 1% variation in MVA, the most important driver of change in MVA. So, the simple regression analysis for this year shows that these three variables are very much important while EVA is the most important variable to consider before investment. While, EPS explains 6. 8% of variation in MVA but p value is more than . 000 and DPS has a very little bit of significance and D/E Ratio is insignificant to consider as a driver of Shareholders’ value. Result of the Year 2005: | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 578 |. 543 |. 046 |. 323 |. 289 |. 96 | |R2 |. 334 |. 295 |. 002 |. 104 |. 084 |. 484 | |Adjusted R2 |. 303 |. 262 |-. 045 |. 061 |. 040 |. 459 | |Standard error of |2. 73331 |2. 81226 |3. 34638 |3. 17073 |3. 20682 |2. 40672 | |Estimate | | | | | | | |Significance |. 004 |. 007 |. 835 |. 133 |. 181 |. 00 | |p-Value | | | | | | | Interpretation: According to the result we can see that correlation of Change in MVA with Stdz. EVA is the highest (. 696) then with RONW (. 578) and then with ROCE (. 543) for this year. The adjusted R2 of Change in MVA with EVA, RONW and ROCE is . 459, . 303 and . 262 respectively which shows highest variation in MVA is explained by EVA that is 45. 9%. Moreover, the significance level lies between . 005 to . 010 which is less than . 010. Hence, these three variables are the most important variables to consider as standard error is also very low in comparison to other variable. While EPS and DPS has a very little significance and D/E Ratio is insignificant to consider. Result of the Year 2006 | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 725 |. 638 |. 025 |. 450 |. 054 |. 801 | |R2 |. 525 |. 407 |. 001 |. 203 |. 003 |. 641 | |Adjusted R2 |. 503 |. 379 |-. 047 |. 165 |-. 045 |. 624 | |Standard error of |2. 60034 |2. 0531 |3. 77240 |3. 36897 |3. 76802 |2. 25987 | |Estimate | | | | | | | |Significance |. 000 |. 001 |. 910 |. 031 |. 806 |. 000 | |p-Value | | | | | | | Interpretation: According to the result we can see that correlation of Change in MVA with EVA is the highest (. 801) then with RONW (. 725) and then with ROCE (. 638) for this year. The adjusted R2 of Change in MVA with EVA, RONW and ROCE is . 624, . 503 and . 379 respectively which again shows the highest variation in MVA is explained by EVA that is 62. 4% . Moreover, the significance level is also . 000 which is less than . 001. Hence, at 99% confidence level we can say that these three variables are the most important variables to consider and again EPS and DPS has a very little significance. D/E Ratio is again insignificant to consider Result of the Year 2007: | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 801 |. 795 |. 075 |. 66 |. 275 |. 896 | |R2 |. 641 |. 632 |. 006 |. 134 |. 075 |. 802 | |Adjusted R2 |. 624 |. 615 |-. 042 |. 092 |. 031 |. 793 | |Standard error of |2. 37916 |2. 40757 |3. 95859 |3. 69485 |3. 81708 |1. 76595 | |Estimate | | | | | | | |Significance |. 000 |. 000 |. 34 |. 086 |. 205 |. 000 | |p-Value | | | | | | | Interpretation: According to the result we can see that correlation of Change in MVA with EVA is again highest (. 896) the n with RONW (. 801) & then with RONW (. 795) for this year. The adjusted R2 of Change in MVA with EVA, RONW and ROCE is . 793, . 624 and . 615 respectively which again shows highest variation in MVA is explained by EVA that is 79. 3% . Moreover, the significance level is also . 000 in each of three cases which is less than . 001. Hence, out of all variables these three variables are the most important variables out of these three variables EVA is coming out to be the most important variable to consider while EPS and DPS are again having a little Significance and D/E Ratio is insignificant to consider as the driver of shareholders’ value. Result of the Year 2008: | |RONW |ROCE |D/E Ratio |EPS |DPS |Stdz. EVA | |R |. 900 |. 890 |. 152 |. 252 |. 259 |. 950 | |R2 |. 811 |. 793 |. 023 |. 063 |. 067 |. 903 | |Adjusted R2 |. 802 |. 783 |-. 034 |. 019 |. 023 |. 99 | |Standard error of Estimate |2. 70932 |2. 83630 |6. 15528 |6. 02644 |6. 01501 |1. 93688 | |Significance |. 000 |. 000 |. 490 |. 246 |. 233 |. 000 | |p-Value | | | | | | | Interpretation: According to the result we can see that correlation of MVA with EVA is the highest (. 950) then with RONW (. 900) and then with ROCE (. 890) for this year. The adjusted R2 of Change in MVA with EVA, RONW and ROCE is . 899, . 802 and . 83 respectively which shows hi ghest variation in MVA is explained by EVA that is 89. 9%. Moreover, the significance level is also . 000 which is less than . 001. Hence, these three variables are the most important variables to consider while EPS and DPS are again having a little Significance and D/E Ratio is again insignificant to consider as the driver of shareholders’ value as significance is more than . 001. Moreover out of these three, EVA is the most important and powerful variable. 3. 4-Overall Result of Simple Regression analysis [pic] Over all Result of the Analysis: Hence, my over all Analysis shows that only three financial Indicators (EVA, RONW, and ROCE) are the important driver of shareholders’ value. Out of these three, EVA is the most important Indicator. So, if a company is earning more than its cost of capital, it is adding more value to the shareholders. In second, RONW is the important Indicator, which shows that companies utilizing its shareholders’ funds in an effective & efficient manner are adding value to shareholders. Third important Indicator is ROCE which shows Companies generating higher ROCE will add value to Shareholders. SO, before investment these three variables must be considered. 3. 5- Year wise Result of Multiple Regression Analysis In multiple regression analysis I found that there is multi collinearity exist between ROCE, RONW and EVA. So, I applied multiple regression taking three independent variables at a time excluding the variables like D/E Ratio because this variable is insignificant to consider while EPS and DPS is little bit of significant. So to come out with a strong and accurate analysis it is irrelevant to ignore these two variables. Result -1: In Result-1 analysis between Change in MVA with EPS, DPS and RONW has been observed for the period of 2004 to 2008. EPS and DPS have been taken because of their little significance. In this case Hypothesis is as follows: H0: EPS, DPS, RONW are not significantly explaining variation in MVA H1: EPS, DPS, RONW are significantly explaining variation in MVA Result of the Year 2004 Model Summary |Model |R |R Square |Adjusted R |Std. Error of the | | | | |Square |Estimate | |1 |. 834(a) |. 696 |. 647 |2. 25663 | a Predictors: (Constant), RONW, EPS, DPS ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 742(a) |. 550 |. 479 |2. 36227 |2. 192 | a Predictors: (Constant), RONW, DPS, EPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 831(a) |. 691 |. 642 |2. 20440 |2. 115 | Predictors: (Constant), DPS, RONW, EPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 860(a) |. 739 |. 698 |2. 13011 |2. 501 | a Predictors: (Constant), RONW, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 927(a) |. 859 |. 837 |2. 45654 |2. 493 | a Predictors: (Constant), RONW, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) Model | |Sum of Squares |df |Mean Square | |1 |. 875(a) |. 765 |. 728 |1. 98181 | a Predictors: (Constant), ROCE, EPS, DPS ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 728(a) |. 530 |. 455 |2. 41542 |1. 856 | a Predictors: (Constant), ROCE, DPS, EPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |Df |Mean Square |F | |1 |. 764(a) |. 584 |. 519 |2. 55798 |1. 913 | Predictors: (Constant), ROCE, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 850(a) |. 722 |. 678 |2. 19925 |1. 759 | a Predictors: (Constant), ROCE, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 918(a) |. 843 |. 818 |2. 59745 |2. 016 | a Predictors: (Constant), ROCE, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square | |1 |. 888(a) |. 788 |. 754 |1. 88405 | a Predictors: (Constant), Stdz. EVA, DPS, EPS ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 824(a) |. 679 |. 628 |1. 99688 |2. 328 | a Predictors: (Constant), Stdz. EVA, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 89(a) |. 790 |. 757 |1. 81740 |1. 914 | a Predictors: (Constant), Stdz. EVA, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 923(a) |. 852 |. 829 |1. 60570 |2. 184 | a Predictors: (Constant), Stdz. EVA, DPS, EPS b Dependent Variable: Stdz. MVA ANOVA(b) |Model | |Sum of Squares |df |Mean Square |F | |1 |. 966(a) |. 932 |. 922 |1. 0292 |2. 103 | a Predictors: (Constant), Stdz. EVA, EPS, DPS b Dependent Variable: Stdz. MVA ANOVA(b) Model | |Sum of Squares |df |Mean Square |F |Sig. | |1 |Regression |759. 238 |3 |253. 079 |87. 270 |. 000(a) | | |Residual |5 5. 099 |19 |2. 900 | | | | |Total |814. 337 |22 | | | | |a Predictors: (Constant), Stdz. EVA, EPS, DPS b Dependent Variable: Stdz. MVA Coefficients(a) Model | |Unstandardized Coefficients |Standardized Coefficients | | |Collinearity Statistics | | | |B |Std. Error |Beta |t |Sig. |Tolerance |VIF | |1 |(Constant) |3. 899 |. 674 | |5. 789 |. 000 | | | | |EPS |-. 017 |. 010 |-. 147 |-1. 92 |. 089 |. 530 |1. 886 | | |DPS |-. 026 |. 065 |-. 033 |-. 405 |. 690 |. 525 |1. 905 | | |Stdz. EVA |21. 424 |1. 383 |. 933 |15. 494 |. 000 |. 982 |1. 018 | |a Dependent Variable: Stdz. MVA Interpretation: The model Summary shows that EPS, DPS and EVA together having a high degree of correlation that is . 966 with change in MVA while variation in these three variables together explains 92. 2% of variation in MVA as adjusted R2 is 0. 922. The Durbin-Watson is 2. 103 which show that variables are following a similar trend and are not scattered. The analysis shows that this year these three variables are very strongly related with Change in MVA. The ANOVA table shows F is 87. 270 and significance is . 000 which is less than . 001. It means Reject H0 and accept H1. Hence, these three variables significantly explain the variation in MVA and are very much important to consider. The coefficient table shows that there is no multi collinearity exists between independent variables because Tolerance is greater than 0. 2 and VIF is less than 5. It also shows that beta value of EVA is . 933. So, EVA is the most power full variable over here. Overall Result: The analysis of all the years results in rejection of H0 and acceptance of H1. It means these three variables are also significantly explaining variation in MVA. 3. -Overall Result of Multiple Regression Analysis Since, because of multi colinearity between RONW, ROCE and EVA it was not possible to include these three variables together in the multiple regression analysis. But as they are correlated with each other, so we can consider any one of them with the other variables to reac h at a conclusive result. Now after analyzing multiple regressions with three sets of independent variable with dependent variable which are: Set-1 Change in MVA with EPS, DPS, RONW Set-2 Change in MVA with EPS, DPS, ROCE Set-3 Change in MVA with EPS, DPS, EVA The question comes in our mind is which set is to be given preference over other. Though all the sets are highly correlated with change in MVA and there is a little bit of variation in their correlation we can consider any one set out of the three. But to conclude the analysis a Year wise Comparison has been done with the help of following graph between the three sets: [pic] From the graph we can see that correlation of Change in MVA with EPS, DPS and EVA was the highest throughout the Years. Moreover it is also increasing year by year. So, it is very much useful to consider as these three variables together act as a most important driver of shareholders’ value. While the second most important set to consider is EPS, DPS and RONW and then EPS, DPS and ROCE. Recommendations Since, my research analysis has shown that there are three most important factors EVA, RONW and ROCE which drive the shareholders’ value. Moreover a combination of EPS, DPS, and EVA together causes major variation in shareholders’ value. So, Research division of IL should focus on these factors because companies generating higher ROCE, RONW, and EVA from their business will add more value to the Shareholders’ investment. Now a day, it has become very much important for the Brokerage firms to provide valuable services to their customers specially a proper guide line that where they should invest and where they should not in order to bit the Competitors and retain customers with themselves. So, research division of IL Investsmart should guide the investors to invest in the shares of those companies which is earning more than cost of capital that is company with positive EVA moreover the companies which is effectively using the Owners fund means generating higher RONW and a higher ROCE. EPS, and DPS can be taken into consideration but can be avoided also if company is to good in generating positive EVA and higher RONW and ROCE because these variables indicate the growth of an organization. If the organization is growing and its not giving any dividend still it is good to invest in that Company, as the growth company will leads to increase in Market value and this will result in increase in Shareholders’ value. Conclusion At the end I would conclude that the year wise research done over the period of five years from 2004 to 2008 has shows that EVA is the most important driver of shareholders’ value as the correlation between EVA and change in MVA is very strong. so, a company generating positive and higher EVA is the best option to invest in because this will result in increase in market value which will result in increase in shareholders’ value. The second most important variable RONW and the third most important variable ROCE should be consider before investing in the share of any company because these two variables are also having a high degree of correlation with change in MVA. EPS and DPS alone are not the important factor to consider individually. But the combination of EPS, DPS and EVA together are highly correlated with change in MVA. According to my research analysis in 2008 it was found that these three variables together have explained 92. 2% of variation in MVA. So, the combination of these three variable can also be taken into consider before selecting a company to invest in. The analysis also shows that Correlation of change in MVA has been found to be increasing year by Year from 2004 to 2008. So, for future investment it is better to look into these ratios before investing in any company. The regression analysis shows strong correlation of change in MVA with EVA, RONW and ROCE, which is not a surprise since shareholders should value an enterprise, based on the return what they are getting on their invested oney, which proves that it doesn’t matter whether the company retains or distributed its earnings, so long it is being utilized for productive purposes. Bibliography o CMIE’S Prowess o http://www. bseindia. com/about/abindices/bse30. asp o http://www. bseindia. com/about/abindices/betavalue s. asp o http://www. bseindia. com/histdata/hindices. asp o http://neeravnagar. blogspot. com/2007/08/drivers-of-shareholders-value. html o Ali M Ghanbari (Jul’07) â€Å"The Relationship between Economic Value Added and Market Value Added: An Empirical Analysis in Indian Automobile Industry† The ICFAI Journals of Accounting Research. o Chapter 32 of â€Å"Investment Valuation† by Aswath Damodaran ———————– 65