Rakesh Soni

Priorities before Soni Rakesh Soni is a chief compliance officer (CCO) to the Indian information technology (IT) company appointed in July 2009. This company is managed by a board of six members assigned by the federal government as caretakers the same year. Soni was allocated the responsibility of controlling the corporate governance of Mahindra Satyam Limited. This was implemented to enable the company’s progress without increasing the workload from the preceding year 2008 (Pradipta Mukherjee).Advertising We will write a custom essay sample on Rakesh Soni specifically for you for only $16.05 $11/page Learn More As the chief compliance officer, Soni was to come up with a new outline on code of ethics and instill principles of corporate governance at Mahindra Satyam Limited, which was formerly recognized as Satyam Computer Services Limited. Soni was supposed to report his ideas to the vice chairman of Mahindra Satyam named Vineet Nayyar. Soni also served as the company’s chief operating officer with the profit center. He was accountable for business verticals, which he reported to C. P. Gumani who was chief executive officer (CEO) at Mahindra Satyam Limited. In a bid to carry out this responsibility effectively, he solicited assistance from Sucharita Palepu. Palepu was the head of talent management in Human Resources (HR) at Mahindra Satyam. Managerial Issue before Soni Soni was to ensure that there would be no additional violation, overt or covert of corporate governance standards. Mahindra and Mahindra Company had outlined these standards as follows; introduction of strong cooperate best practices, review of key processes, and implementation of suggestions from forensic accounting/investigating authorities. Soni was responsible for ensuring that everyone worked with integrity, which was greatly backed by Mahindra’s reputation. However, information available to the independent directors was limited. Soni had t o make a decision on substitution of Satyam since it was tainted as an individual brand. It was important to give the brand a lower profile among the stakeholders even though it was the dominant source of value creation.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In fact, this brand recorded higher revenues, larger number of employees, and higher economies of scale than Tech-Mahindra. In addition, it was more recognized in the global technology industry than Tech-Mahindra. On the other hand, Tech-Mahindra was offering an opportunity to force entry into the market. In addition, Soni faced the managerial issues of integration among people who were the motivating forces in the IT industry. Signals Indicating that Independent Directors Missed at Satyam As per the suggested code of conduct, the directors were to represent the interests of shareholders and consult them when making important decisions such as in acquisitions. However, the chairman of the board of directors (Raju) approved the purchase of 100% stake in Maytas Properties and 51% in Maytas Infrastructure (Maytas Infra) on an investment of $1.3 billion and $0.3 billion respectively. These infrastructure companies were controlled by Raju’s sons. Maytas Properties established in 2005 was involved in the development of such urban space infrastructure as integrated townships and special economic zones. On the other hand, Maytas Infra was involved in building highways, metros and ports (Bartlett and Beamish 67).The directors were expected to demonstrate high standards of integrity, devotion, independence of thought, and judgment. In this light, the described approval and purchase were out of context. The chairman and managing director of Mahindra and Mahindra Company made a commentary that, â€Å"it is not as though we did not have a plan to go in. It was not as though once we won the bid; we scratched o ur heads and said, â€Å"Okay†, what do we do next?† When we took over the company, we had a road map of what to do from day one. We were like commandos hitting the ground with a battle plan. The key message was: the past is, by definition, gone, so let’s pick up the pieces, the good ones, and start running† (Taneja 44). This shows explicitly that due care was not considered. Another code of ethics was that all directors had to dedicate adequate time, energy, and attention to ensure diligent performance of his/her duties inclusive of making all reasonable efforts to attend board or committee meetings. In the standing issues of the company against its accounts’ books, it was overstated leading to false and unfair view of the shareholders and the public in general.Advertising We will write a custom essay sample on Rakesh Soni specifically for you for only $16.05 $11/page Learn More The directors claimed to have no previous knowledge, which was a clear expression of neglecting responsibility. In summary, the directors were required to comply with every provision of this code. However, they had gone against this code in a precise and explicit manner. Personal Idea on Role of Auditors In my opinion, the roles of auditors are as indicated in the following list. Scrutinizing the financial statements and the announcements of a company in order to examine whether they are the true and fair representation of the business. Assessing internal financial controls and risk management system within the company. Scrutinizing and examining internal auditing operations. Endorsing external auditors’ appointments and replacements, and analyzing their work efficiency Fostering and instigating guidelines on the use of auditors for non-audit services (Leung, Barry and Robertson 43). Works Cited Bartlett, Christopher and Paul Beamish. Transnational management: text, cases, and readings in cross-border management. 6th ed. New York: McGraw-Hill/Irwin, 2011. Print. Leung, Philomena, Barry J. Cooper and Peter Robertson. The role of internal audit in corporate governance management. Melbourne: RMIT Publishing, 2003. Print. Taneja, Nawal. Looking beyond the runway airlines innovating with best practices while facing realities. Burlington, VT: Ashgate Pub. Co., 20102009. Print. This essay on Rakesh Soni was written and submitted by user Aubrey Goff to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Europe between Wars essays

Europe between Wars essays In this compelling account of Europe between the wars, Martin Kitchen outlines the intensifying crisis by looking at the peace settlement, followed by the economic and social troubles of the interwar period. Many of Martins books relate to the wars fought in the twentieth century, from World War I to the origins of the cold war. Europe between the wars starts off with a solid background of how the peace movements took place in the early 1900s followed by Martins profound discussions of the economic repercussions. Later in the book, he discusses the situation in France and Eastern Europe and concludes his book with a chapter on the origins of the Second World War. President Woodrow Wilsons peace movements were seen as sparkling to some while others, including Martin, referred to his fourteen points as vague, impractical and largely unacceptable to his allies. But later in the book he suggests that Wilsons fourteen points were not properly studied and his views and speeches were ignored by the majority. The author then points out the Sykes-Picot Agreement, in which Syria was to go to France and Palestine to Britain. The situation was further complicated by the Balfour Declaration of 1917, which accepted the Zionist demand for a Jewish homeland in Palestine. Even though the book was written in 1988, there was much tension going on in the Israeli occupied areas at that time. Martin does not discuss the background and the eventuality of the treaties in full as these conflicts in the West Bank are key concerns in todays politics. The most absorbing and enthralling chapter of the book is the one that discusses the post war economic situation in Europe. Martin has elaborated the situation by giving facts and statistical figures that include almost every economic aspect and terms used in the modern world. From unemployment to inflation, exchange ...

Skills Development Essay Example | Topics and Well Written Essays - 6250 words

Skills Development - Essay Example Skills need to be upgraded if the individual or organization wants to survive in the global competition of today. Organizations offer extensive training to their employees for specific skill sets. However, individuals can also choose to develop their skills by carrying out a self analysis. The result of self analysis will highlight those areas which need to be developed for personal growth and sustenance. Areas for Improvement After carrying out a self analysis and building a strong understanding of the concept of organizational behavior, I have come to the conclusion that my skills need to be developed in five areas. These areas are mentioned below: 1) Communication 2) Managing Change 3) Coping up with Emotions and Managing Stress 4) Conflict Management 5) Motivation Reasons for Picking These Areas For Improvement After bringing to your attention the areas which I feel need improvement, I would like to justify my choice with reasons Communication What on the earth would we do if we were unable to get our message across? How would we inform others what we want and respond to their messages without communication? Communication is equally important on individual and organizational level. In the absence of communication, every human being would become isolate. Communication is a way of expressing thoughts, ideas and feelings. It is due to communication that two persons are able to exchange views; and also understand what the other person wants. Timely and effective communication is required to make a better society. On the organizational level, communications helps employees understand the vision of the Chief Executive Officer. It is important for organizations to communicate the policies and strategies to employees within the organization so that they follow it and reach the defined goals. On the other hand, organizations also need to communicate their performance to the stakeholders outside the organization for building brand awareness, loyalty and enticing inve stors. Managing Change I see change as an idea or process introduced into any organization. Change, as we see it, is a transition from present to future state. Naturally, the first reaction to change is resistance. Even on individual level- whenever we are exposed to change, we respond by showing reluctance. Change is natural and should be welcomed. In reality, when we are faced with change, we get disturbed because we are coping well in our comfort zone and don’t want any outside force to act. Philosophically, things never remain stagnant- change is required to bring them into motion so that they develop and attain a better state. Coping up with Emotions and Managing Stress Emotions and stress are probably the two aspects that leave negative impacts on a personality. Emotions and stress need to be managed very carefully because these two factors are clearly those which are known to interfere with the individual/organizational growth and success. Emotions distract attention a nd may provoke an individual to take illogical or irrational decisions. In the same way, stress which arises due to various reasons needs to be controlled because it also affects the individual/employee’s thinking and focusing abilities. In case stress is left untreated, it may prolong and result in chronic health and mental diseases. Conflict Management The literal meaning of conflict is disagreement, dissension and divergence. At individual level, we are exposed to a number of situations

The marketing communications plan Essay Example | Topics and Well Written Essays - 1500 words

The marketing communications plan - Essay Example The second stage of the plan spells out the strategies that will be used in the segmentation, targeting, and positioning processes. According to Malone (2007), the technology industry is busting with innovations in an un-choreographed time schedule, which means that failure to innovate timely product is likely a recipe for failure by the technological companies. The competition is high such that manufacturers in the industry have to continually research and create new products that are more suited to customers’ needs and expectations. Hewlett-Packard Company is a perfect example of a successful company in the global technological industry. The company specializes in the providing technologies, products, software services and solutions for consumers, small and medium term enterprises, and large enterprises. The major products lines that the company deals in include a wide range of printers and their associated by-products, personal computers, networking products, industry and enterprise servers, storage devices, and software products. In the past year, the company was ranked as the world’s largest PC vendor in terms of units that were sold; this is according to Fetterman (2012). ULTIME HP TV is a digital media receiver that has network appliances, which are designed to play digital content from varying sources such as Movie-TV programs, video calling , social networking apps. Twitter, Skype, face book, Video , YouTube , bbc I player movie streaming , 3D , free view , Hd , Memory Hard- 7506b, Multimedia , audio playback. Input devices Wireless WIFI , Bluetooth 40Hs , Ports 3 HDMI 2Usb , SCART Input, HP Wireless audio system , Â   From a wider perspective, it can be stated that the marketing communication plan is mainly intended to competitively position Hewlett-Packard Company within the in-home entertainment systems sector. The plan aims to ensure that the new ULTiME HP TV generates high sales revenues and is a favorite among the

Term Paper Essay Example | Topics and Well Written Essays - 1000 words

Term Paper - Essay Example Here, we are talking about US. It is said that GDP grows with time. This is because of the reason that the needs of a country are rising day by day due to an increase in the population. Therefore, it becomes necessary to fulfill those needs, and manufacture products and offer services so that the lives of people are made better. Obviously, there has to be a specific number of people working to undergo this process and they would be paid as well. The overall demand would be met and supply would be increased. The bigger picture would then show that the gross domestic product would definitely increase. It is clearly understood from the above process that when GDP grows, the unemployment rate falls. The reason is that more people would be hired to fulfill a country’s needs and those employees would be paid for their services in the end. It can be said that both these factors, GDP and unemployment rate, are indirectly related to each; when one rises, the other falls. If we look at the World Bank data and make some cross country comparisons, we can better understand how US has been performing when these three major macroeconomic factors are concerned. According to the data presented in 2009, if the whole world’s GDP is taken to be 100 percent, then out of that US takes the second place after Europe. Europe has 22 percent of the GDP’s proportion while US 20 percent of it. (Suranovic, 2013) Similarly, if we look at the unemployment and inflation rates then US has 10 percent unemployment while Europe has 9.8 percent. The inflation rates for both of the countries are positive but relatively stable. Europe has 0.5 percent inflation rate while US has 1.8 percent till year 2009. It is said about the inflation rate that if they are too high, the situation can have bad impacts on the economy while if they are too low, the situation can deflate the economy. Moreover, if the unemployment rates are too low they will create problems as well. The aggregate

Study on the Determinants of Corporate Borrowing

Study on the Determinants of Corporate Borrowing CHAPTER 1: The determinants of corporate borrowing was an empirical research, hence a terrific amount of prior researches focused on exploring the determinants of corporate borrowing, since 1960s. Corporate borrowing decision effects remained as an area of growing interest for researchers in the last three decades, as the presence of the a phenomenon has been evidenced even in the most developed capital markets of the world (Guedes Opler, 1996). In addition, the sales growth was defined as a pinpoint determinant for firm financial decision towards firm sales growth opportunities and financial debt capacity, in the same studies. The debt and equity remained main areas of interest which were observed for decision making in corporate finance of the governance systems. As the earlier researches explored the factor of debt maturity but usually did not focus on sales growth as determinant of corporate debt (Myers Stewart, 1977). In addition, the same study focused on including and exploring the sales growth of firm as a determinant of corporate borrowing. Firms, in general, financed projects with long-term debt to avoid riskiness of project and hide the mismanagement activities under the cash flow of project, the cash flows were obtained from investment of the project before the debt maturity date (Guedes Opler, 1996). While same studies further addressed an important issue for firm, if the projects were financed with short-term debt. For instance, according to Barclay, Michael, Clifford and Smith (1995) that the term and conditions for maturity of debt of firms were reduced with growth opportunities, and raised with the size and credit quality of firm. Myers and Stewart (1977) also suggested firms to shorten debt when cost of contracting was high. Firms activities to finance long-term debt, with aspect to attaining firms growth opportunities such sales growth; had significant impact on short-term debt of the firm due to increased level of inventory and level of failed to sustain receivables turnover (Stohs, Mark Mauer, 1996). Further, the same studies defined that less risky and probably larger firm used long-term debt financing with meager growth opportunities, so the liquidity risk was highly involved for firm short-term borrowing decision. According to Diamond and Douglas (1991a) debt risk was defined as the borrower risk or the ability of borrower to repay interest, principle amount and timely fulfill claims terms. Froot, Kenneth, David and Stein (1993) addressed that loss of projects could be a caused by short-term debt if project has high refinanced interest rate and imperfections of credit market. Firms also experienced the distress for indirect cost of financial such that loss of inventory or the incremental proportion of inventory held and decline in the receivable turnover for the purpose of firm sales growth. Rizzi and Joe (1994) addressed the sales growth and risk that only high quality firms were able and sustained in the credit market for long term borrowing, while the low quality firm screened out from long term debt market. While the available short term debt market had high risk for low quality firms, even that firms financed to cope up growth opportunities, usually firms growth opportunities were identified with sales growth of the firm. 1.2 Problem Statement The debt financing was considered as one of the crucial issues in the corporate financing, the sales growth of the firm was one of the major determinants of the corporate debt financing. The purpose for the study of sales growth and debt financing is that this is the crucial issue for firms that how efficiently to avail firms growth opportunities such that sales growth. The objective of this research study was to explore and know that how borrowing decision of the firm such that short term debt was affected by the sales growth of the firm. The fundamental purpose of study was to observe the impact of sales growth in detail by Guedes and Opler (1996) and Saumitra (2002) presented the detailed information regarding the determinants of corporate borrowing such as sales growth and the firm debt financing decision in Pakistan. The scope of this study was to analyze the impact of sales growth on corporate borrowing such that short term debt financing decision of the firm to avail growth opportunities of the firm on the basis of debt financial decision factors. 1.3 Hypotheses The central query was raised in front of firms to borrow new financing as cope up the growth opportunities of the firm in the form of sales growth opportunities. New investment was required for the operational and the manufacturing activities of the firm whether to use debt financing or not, if the debt financing decision was to be used so the lender and borrower noticed that at what level of risk and the sales growth of the firm may affect the short term debt financing decision. In selection of the financing decision; firms past, current and expected activities was crucial for lender and borrower, such that sales growth, inventory held, and liquidity condition of the firm. Many Authors as Guedes and Opler (1996) and Saumitra (2002) discussed the sales growth as a main factor affecting to debt financing decision of the firm in research. The Hypothesized relationship of the variable is provided below: H1: There is positive impact of sales growth on corporate borrowing. H2: There is a positive impact of inventory held on corporate borrowing. 1.4 Outline of the Study The research presented the introduction of the thesis in chapter one, which included the problem statement of the study, scope of research, hypotheses etc. Literature review of the study was presented in chapter two with review by different authors on impact of sales growth on corporate borrowing. The research methodology was described in chapter three with justification of the selection of variables, sample size, sampling technique and statistical technique used in analysis of the study, and also developed model were described. After processing of data, the analysis interpretation of the results was described in the chapter four with hypothesis assessment summary. The summarized findings, conclusion, discussions, implications and recommendations, and suggested future directions for the empirical research on impact of sales growth on corporate borrowing was defined in chapter five. References and appendixes for the study were given in chapter six and at the end of study respectively. Chapter-2 LITERATURE REVIEW A lot of research has already been conducted in the field of identifying the best determinants of Corporate Borrowing by various researchers. Most of the research work suggested that the corporate borrowing vary from company to company and similarly from decision factor to factor. Marsh (1982) addressed that the borrowing decisions were taken by firms both by raising debt or finance, here question raised for corporation, what level of financing is required and which financing decision would be better for firm health. The firms borrowing decisions biased over its target level of debt, if its debt was below the target level of debt, so, the decision of debt financing would taken, otherwise financing decision was taken by firms due to signal of existing level of borrowing was above its target level of debt. The significant flotation costs for existence of corporations means that companies required to plan issues with objective to minimize both costs of its target ratio deviation and flotation costs. Over time fluctuating, it gave rise to infrequent issues of firm with its targeted debt ratio and firms clearly identified that what its level of target is. Miller and Rock (1977) debated over debt and explained two points; first, shift issue occurred in firm decision towards either equity or debt due to any change in level of tax, hence issue effect either temporary lasting until equilibrium level was restored, or shift issue remained permanent over target ratio of firms. The second point were elaborated that the probability of firm financial distresses and systematic risk level influenced the target debt levels of firm, it was defined that the highly operating risk of firm used the less level of debt financing. Myers, Brealey and Schaefer (1977) argued that companies avoid fixed interest rate of long term debt due to uncertainty of future rates of inflation and instead of long term debt rely over variable rate of short term debt. Barges (1968) explained the ability of a firm towards sales growth rate and capacity of debt, the explanation were shown with two factors, first the expected growth rate of future earnings of firm and the probability of expected sales growth and earnings of firm. Generally, high rate of expected future earning signify a greater capacity of a firm to carry debt; hence low expected future earnings mean the opposite. The degree of uncertainty for any level of expected future earnings for debt capacity of firm was served by knowing a limiting factor. Barclay et al. (1995) showed that credit quality and size moderately effect on firms to augment its debts term to maturity, and firms debt falls with growth opportunities. In a related article, Stohs et al. (1996) defined that larger firms most likely used the long term debt to avail the growth opportunity of its sales. The earlier studies examined the corporate debt maturity on behalf of issues of incremental debt rather than to investigate the maturity of liabilities of firm on balance sheet. By studying the liabilities to assets on balance sheets could answer some uninvestigated questions about impact of sales growth on corporate borrowings. Myers et al. (1977) suggested that agency cost and problems of debt can be controlled by firm to shortening the worth of its debt with respect to the volume of its sales. While some firms gain incentives from liquidity risk to borrow long term debt, it may not be able to compensate investors to bear credit risk of long-term debt for the sake of sales growth; it may indicate the low quality projects (Diamond Douglas, 1991.) and (Stiglitz, Joeph Weiss, 1981). Hence the low-quality firms cant sustain their position or can be screened out from long-term debt market, only high credit quality firms can be stable and able to borrow long-term debts. In contrast, larger firms were defined for long run as having higher likely possibilities to survive than smaller firms (Queen, Maggie Richard, 1987). Brick, Ivan and Ravid (1985) examined that interest payments affect the borrowers and lenders with respect to firms volume of sales due to different time patterns. The interest text shield was argued that borrowers seek to maximize the present value by accelerating interest payments, while lenders priorities to diminish the present value of tax charges by slow downing interest payments. Leff (1979), Khanna and Palepu (2000) addressed that the dominant perspective and minimizing perspective of transaction costs on business groups plays a crucial role on firms affiliations with these groups to overcome the barriers in an inefficient market. The view of transaction cost minimizing is characterized by weak governance system of firms, in part due to weak legal institutions or under developed intermediaries. Increase in the external financing investment cost may occur due to association of agency cost problems with market imperfections. However, this study will not develop and test the hypothetical views of business groups. Mitchell (1991) finds no support on the firm choice to match their asset maturities with maturity of debt issues. In a similar on debt issues, Guedes and Opler (1994) argue that high grade firms with large investment issue short-term debt. Diamonds (1991) predicted that active participants part in short-term credit markets was taken by the higher-rated firms to avail growth opportunities of the firm. Auerbach and Alan (1979) also argued that growth rate of sales and leverage are inversely proportion because the interest payment of tax deductibility was considered less valuable to the larger or fast growing firms. The firms annual sales growth rate in total assets was used as a growth rate of proxy. Asset maturity was defined as an important factor for corporate borrowing and plays stable role to predict the debt maturity of a firm. Myers et al. (1977) argued that long-term assets of firm can support to gain more long-term debt. In contrast, Titman, Sheridan and Wessels (1988) analyzed debt maturity on the basis of balance sheet and viewed the evidences that smaller firms rely on higher proportion of short-term debt with objective to minimize long-term debt flotation costs. Barclay et al. both addressed that smaller firms more likely with growth opportunities rely on a smaller proportion of debt that would exceeds 3 years. Myers and Stewart (1977) expressed the views on these evidences that debt maturity is used by firms to control interest conflicts between debt and equity holders. The preceding papers provided useful approaches for firms debt maturity choices; hence the measure had various limitations. First, the term-to-maturity in the corporate borrowing provided the information just about incremental financing choices. The debt maturity average of the firms existing liabilities test relate to the terms-to-maturity of debt issues to balance sheet variables such as asset maturity or return on assets (Stohs et al. 1996). Myers et al. defined the borrowing decisions of firms by using two indicators for growth: sales growth and growth of firm total assets. The research study focused to examine the behavior of firm borrowing decisions and concluded that; to prevent the agency cost of long term debt, most of the firms proffer short term debt decisions instead of long term debt. While Froot et al. (1993), Lucas, Deborah and McDonald (1990), and Kale, Jayant and Thomas (1990) examined the firm growth with three indicators of growth: sales growth, growth of firms total assets and growth of employing size of firm, and concluded that firm growth is independent of firm size. To study firms complete size distribution, the several alternative forms of samples were used, so, the variables were leading each others, while the definite relationship for alternative form of samples were crucially assumed and it was derived that firm growth decreases with all three indicators for agency cost of long-term debt financing , hence the sales growth were certain. Loughran, Tim, Ritter J. (1995) accentuated the importance of firm growth, debt financing decision and changes in market structure. Mansfield addressed that debt financing is better when growth opportunities of firm were available and demanded, so the profitability of firm was certain and debt financing was benefited as the tax advantage of firm. DeAngelo and Masulis (1980) examined the financing decisions of firm and showed that firm value was being affected by the financing decisions of the firm, if the firm has to avail certain growth opportunities, so the debt financing decisions was defined as an effective tax advantage and resulted decline in non-debt tax shields. Firm financing decision except debt financing resulted without tax shield beneficiaries, debt interest and principle payments were excluded from earnings of firm before tax applied and included the net short term losses in taxable income and then the corporate taxes was being applied over taxable income. Hence it was addressed that the profitability of firm and the proportion of profitability over assets was affected by the corporate tax. Gan (2007) addressed to normalize the loan payment balances of prior debts and lending decisions. It was explained that the payment of debt balances of loans slowly and present value of generated profits exceeded the present value of total payments which were gradually paid. It has also an impact over firm capital and the proportion of debt over capital, the ratio of firms capital was reduced with the excess of debt. Firms health with proportion of debt to capital explained that healthy capital was being shown from the borrowers willingness to repay gradually loan payment, and lenders willingness to lend. Debt financing and loan payments has also an impact over firm net profitability and the proportion of net earnings over firm total assets or return on assets, it must be paid even in bed time of firm, so well, required payments reduces the firm profitability and return on assets. The proportionate of earnings over total assets showed the efficiency of firm that how well the firm has utilized its assets to bear the cost of financing. Return on assets and prior debt to capital worth was used by means of lenders amount and implicitly measure the worthiness of firm capital. Dedoussis and Afroditi (2010) argued the problems with characteristics of a firm such as assets value or growth opportunities were communicated inability of firm to outside lenders, so that investment decisions were affected by net worth of firm if the discrepancy exists between firm internal and external financing. Hayashi (1982) explained that marginal profitability was covered by firms to expanding the business and sales of firm with bearing the moderate changes in firm expenditure. The described expansion were done by corporations with various financing decisions, it was suggested that the debt financing is better to avail if the market was shown under green signals of demand, if the markets demand were not shown so the firms prevent the debt financing because of interest payment which must be paid even in bad time of cash flows. Hadlock (1998) assumed that financiers were indecisive about the factual value of firms assets, so expectations were formed based on the investment amount that firm requests to carry out. If the firm requested for the maximum amount subsequently the investors were not capable to discriminate between firms with large resources or low resources. So the large assets of firm with low claims send a green signal to investor to putting money for debt investors. While it send the signal to equity provider to cutting the amount of investment if the money is required for new project establishment because it shorten its net earnings as well as the earning of shareholders. CHAPTER 3: RESEARCH METHOD 3.1 Method of Data Collection Data was obtained from the website of Karachi Stock Exchange KSE-100 Index and Joint Stock Companies Balance Sheet Analysis specified by State Bank of Pakistan in periodical listed on the KSE (2004-2009). The period of study covered with data of five years as sample of 2005-09. The opted sample size of all cement sector firms was taken from Karachi Stock Exchange-100 Index and the firms whose data were not available in the sample year of 2005-09 were excluded from the study. The objective behind the insertion of the firms in the sample was to explore debt financing behavior of cement firms significantly rely over sales growth opportunities or not. The major issue of data availability was faced in this research. The source of secondary data was adopted for the sampled data collection of this research study. In accordance with the research studies limitations three firms of cement sector were excluded from the study because two of the firms were newly listed and introduced in the Pakistani market and third was dropped from the KSE-100 Index during sample years of the study. The observed and expected aspects regarding the sales growth and debt financing was analyzed in this research. The external data sources were used to cope up the purpose of collection of data, such that general business publications, State Bank of Pakistan, companys annual reports, internet publications and books were used. The data required for study was completely dependent over the published and secondary data sources, as the sources defined above. 3.2 Sample Size The study selected all cement sector firms listed over KSE-100 Index as sample size for the research analysis. Total of 21 firms were listed over KSE-100 Index, hence, the firms whose data was not available during the sample year of 2005-2009, were excluded from the study, therefore three firms were excluded from the study because two of the excluded firms were newly listed and third was delisted over KSE-100 Index during the sample years. The impact of sales growth of firms on the corporate debt, which were listed on KSE-100 Index, was analyzed on the basis of the selected sample of 18 cement firms. 3.3 Research Model Developed From the various determinants of corporate debts which affected debt financing decision of the firms, this research study included only sales growth and inventory to analyze the impact of sales growth on corporate debt, the sales growth was measured by two variables one was directly change of current year sales with respect to last year sales, and second was level of inventory held by firm. The short term debts were used as a major dilemma for firms to face debt claims in swift time. The constructed mathematically model provided below; CD = a0 + ÃŽ ²1SG + ÃŽ ²2IH + ц Where: CD= corporate debt was measured as the change of short-term debt with respect to last year debt. SG= sales growth of firm with respect to last year sales of the firm. IH= inventory held by firm during the year. ц = the error term 3.4 Statistical Technique To examine the impact of sales growth on corporate borrowing, the multiple linear regression analysis (MLR) as a statistical technique was used for analyzed research study over selected sample firms; the SPSS software was used to test the secondary data. Multiple Linear Regression Analysis technique was used for prediction of sales growth with respect to last year sales and inventory hold by firm defined as the studied variables had an impact on corporate borrowing decision especially on short term financing. The identified technique was used to analyze the empirical behavior of firms financings with studied independent variables (sales growth and inventory hold) on dependent variable i.e., Corporate Borrowing (short-term financing discussed in the previous chapter). According to the characteristics of research study and variables used in this study, the multiple linear regressions; a multivariate analysis was appropriate to used than univariate investigation. In such a way the referenced studies also suggested to use the multivariate analysis technique. The intensity of sales growth impact on corporate debt during year 2005-2009 was observed on the basis of studied independent variables i.e. sales growth and inventory hold by firm during the year. CHAPTER 4: RESULTS All firms of cement industry listed on KSE-100 Index were selected as sample for this research study, and Multiple Linear Regression Analysis was taken as a statistical technique for analysis of this research study. This research was tested and analyzed by using multivariate technique for the prediction of impact of the sales growth with respect to last years sale and inventory hold by firm on corporate borrowing decision especially on short term financing. The identified technique was used to examine the impact of the studied independent variables (sales growth and inventory hold) on dependent variable i.e., Corporate Borrowing (short-term financing discussed in the previous chapter). 4.1 Findings and Interpretation Primarily, the regression technique in SPSS was applied on collected data. The resulted output of data showed that the data has no multicolinearity issue, while the normality issue was found in the data, to resolve normality issue of the data; so all the transformation techniques were used. By applying all the transformations, the studied variables found to be insignificant, so it was described that the data was highly volatile in Pakistani market so the normality issue was ignored to predict the variables. As the multicolinearity issue was not in the data, so the study initiated to analyze the results. The analysis and interpretation of the results was defined in following section of the research. Table 4.1: Model Summary Model R R Square Adjusted R Square 1 .722 .521 .510 Table 4.1 demonstrated summary of the regression model. The Adjusted R square was best for prediction of model as per the number of variables used. The Adjusted R square of 51% in the above table showed that the both of the predictors of corporate borrowing combined together explained 51% variation in whole model, while the remaining was residual variance as latent and not included in the prediction of the model. In other words, Adjusted R square showed that 51% variation in outcome was explained by the population of the study. Table 4.2: ANOVA Model Sum of Squares Df Mean Square F Sig. 1 Regression 3.766E8 2 1.883E8 47.289 .000 Residual 3.464E8 87 3981969.306 Total 7.230E8 89 The table 4.2 represented the significance of estimated linear model of the study, the sig value of ANOVA supported the model fitness for this research study file regarding applicability of the regression technique, ANOVA table was consistent for examination of the models ability to predict any variation in observed dependent variable such that corporate borrowing. This was absolutely understandable from the sig value of .000 which showed that the linear regression model was perfectly momentous for the conducted research. Table 4.3: Coefficients Model Unstandardized Coefficients Standardized Coefficients t Sig. Collinearity Statistics B Std. Error Beta Tolerance VIF 1 (Constant) 1082.629 295.525 3.663 .000 Inventry 7.543 1.179 .593 6.399 .000 .641 1.561 SG .307 .152 .188 2.026 .046 .641 1.561 The table 4.3 represented crucial results for regression model of this study. Sig column of above table demonstrated that all variables of the study were significant and all independent variables of the hypothesis of this research study had significantly influential intensity over dependent variable of the study. Sig column demonstrated that the un-standardized coefficients of variables is zero or not; when the sig value was higher or equal to .05, the un-standardize coefficients considered as zero; and when the sig value was lower than .05, then the un-standardize coefficients of the model was not considered as zero. The value of column B demonstrated that one unit varies in independent variable consequence change in dependent variable with the weights equal to the weights of column B. The VIF column showed the existence of multicollinearity issue in the studied independent variables. As all of the VIF values found less than 2, so this identified the least acceptable level of multic ollinearity in the study. 4.2 Hypotheses Assessment Summary The studied hypothesis was sales growth of the firm has significant positive impact on corporate borrowing decisions to finance in short-term credit market. The firms sales growth characteristics had variation in current year sales of firm with respect to last year sales and the level of inventory hold by firm during financing years. In this study each of the sales growth variable and inventory variable as firms sales growth characteristic for corporate borrowing were tested and concluded in the outcome. TABLE 4.4 : Hypotheses Assessment Summary S.NO. Hypotheses ÃŽ ² SIG. RESULT H1 There is a positive impact of sales growth on corporate borrowing. 0.307 .046 Accepted H2 There is a positive impact of inventory hold on corporate borrowing. 7.543 0.000 Accepted CHAPTER 5: DISCUSSIONS, CONCLUSION, IMPLICATIONS AND FUTURE RESEARCH 5.1 Conclusion The results of the study suggested that sales growth has positive impact on corporate borrowing which identified the significance of sales growth impact in Pakistani market. The second variable of the study was also identified the significance impact in Pakistani market and had intensity to impact over corporate borrowing. The results of this study were not matching with referenced studies conducted by Guedes Opler (1996), and these results had also shown consistency with the study conducted by Barclay et al. The studied results varying because the matched studies were conducted in various countries, so the firms environments and circumstances of the countries usually differed to make financing decisions accordingly. 5.2 Discussions Firm sales opportunities played a vital role in defining the firms sales growth but these growth opportunities varied over volatility in environmental growth of the countries, hence, this dilemma was not with the study of Guedes Opler (1996), because in his study the level of inventory hold by the firm over the year was playing a significant role. Variations in the corporate borrowing were highly explained by the level of inventory held by firm over the year. While sales growth of the firm concluded same results with consistent to the research study of Barclay et al. 5.3 Implications and Recommendations This research study was limited to the cement sector firms listed on Karachi Stock Exchange of Pakistan only. The data was taken from annual reports of all cement sector firms. This research suggested it was not necessity that only firms sales growth has impact on corporate borrowing or the corporate borrowing decisions was affected only by sales growth and inventory factors such type of other borrowing factors should be carried out and analyses in other countries of the Asia as well, as to have inclusive idea about the impact of sales growth on corporate borrowing. Furthermore, the research study also suggested that other factors of corporate borrowing discussed in the chapter one should be researched as to have perfect idea for the debt financing decisions of the firm. For instance, this research study can also be replicated efficiently in other developing countries. 5.4 Future Research This research study may helped various management of the firm, investors and other research conductors in analyzing and observing the debt behavior and financing decisions of firms to achieve sales growth opportunities of the firm. The students whose intention is to research on either debt financing behavior of the firm or to study the growth behavior of the firm with respect to debt can be benefited by this study. Furthermore, the cement sector will become advantageous from this study because the study clarifies the impact of sales growth of firm on corporate short term borrowing. CHAPTER 6: REFERENCES Auerbach Alan (1979). Share valuation and corporate equity policy. Journal of Public Economics, 11, 291-305. Barclay, Michael J., Clifford W. Smith Jr. (1995). The maturity structure of corporate debt. Journal of Finance, 50, 609-631. Barges A. (1968). InstituteGrowth Rates and Debt Capacity. Financial Analysts Journal, 24, 100-104. Brick, Ivan, and Ravid S. (1985). On the relevance of debt maturity structure. Journal of Finance, 40, 1423-1437. DeAngelo, H., and Masulis R. (1980). Optimal Capital Structure under Corporate and Personal Taxation. Journal of Financial Economics, 8, 3-29. Study on the Determinants of Corporate Borrowing Study on the Determinants of Corporate Borrowing CHAPTER 1: The determinants of corporate borrowing was an empirical research, hence a terrific amount of prior researches focused on exploring the determinants of corporate borrowing, since 1960s. Corporate borrowing decision effects remained as an area of growing interest for researchers in the last three decades, as the presence of the a phenomenon has been evidenced even in the most developed capital markets of the world (Guedes Opler, 1996). In addition, the sales growth was defined as a pinpoint determinant for firm financial decision towards firm sales growth opportunities and financial debt capacity, in the same studies. The debt and equity remained main areas of interest which were observed for decision making in corporate finance of the governance systems. As the earlier researches explored the factor of debt maturity but usually did not focus on sales growth as determinant of corporate debt (Myers Stewart, 1977). In addition, the same study focused on including and exploring the sales growth of firm as a determinant of corporate borrowing. Firms, in general, financed projects with long-term debt to avoid riskiness of project and hide the mismanagement activities under the cash flow of project, the cash flows were obtained from investment of the project before the debt maturity date (Guedes Opler, 1996). While same studies further addressed an important issue for firm, if the projects were financed with short-term debt. For instance, according to Barclay, Michael, Clifford and Smith (1995) that the term and conditions for maturity of debt of firms were reduced with growth opportunities, and raised with the size and credit quality of firm. Myers and Stewart (1977) also suggested firms to shorten debt when cost of contracting was high. Firms activities to finance long-term debt, with aspect to attaining firms growth opportunities such sales growth; had significant impact on short-term debt of the firm due to increased level of inventory and level of failed to sustain receivables turnover (Stohs, Mark Mauer, 1996). Further, the same studies defined that less risky and probably larger firm used long-term debt financing with meager growth opportunities, so the liquidity risk was highly involved for firm short-term borrowing decision. According to Diamond and Douglas (1991a) debt risk was defined as the borrower risk or the ability of borrower to repay interest, principle amount and timely fulfill claims terms. Froot, Kenneth, David and Stein (1993) addressed that loss of projects could be a caused by short-term debt if project has high refinanced interest rate and imperfections of credit market. Firms also experienced the distress for indirect cost of financial such that loss of inventory or the incremental proportion of inventory held and decline in the receivable turnover for the purpose of firm sales growth. Rizzi and Joe (1994) addressed the sales growth and risk that only high quality firms were able and sustained in the credit market for long term borrowing, while the low quality firm screened out from long term debt market. While the available short term debt market had high risk for low quality firms, even that firms financed to cope up growth opportunities, usually firms growth opportunities were identified with sales growth of the firm. 1.2 Problem Statement The debt financing was considered as one of the crucial issues in the corporate financing, the sales growth of the firm was one of the major determinants of the corporate debt financing. The purpose for the study of sales growth and debt financing is that this is the crucial issue for firms that how efficiently to avail firms growth opportunities such that sales growth. The objective of this research study was to explore and know that how borrowing decision of the firm such that short term debt was affected by the sales growth of the firm. The fundamental purpose of study was to observe the impact of sales growth in detail by Guedes and Opler (1996) and Saumitra (2002) presented the detailed information regarding the determinants of corporate borrowing such as sales growth and the firm debt financing decision in Pakistan. The scope of this study was to analyze the impact of sales growth on corporate borrowing such that short term debt financing decision of the firm to avail growth opportunities of the firm on the basis of debt financial decision factors. 1.3 Hypotheses The central query was raised in front of firms to borrow new financing as cope up the growth opportunities of the firm in the form of sales growth opportunities. New investment was required for the operational and the manufacturing activities of the firm whether to use debt financing or not, if the debt financing decision was to be used so the lender and borrower noticed that at what level of risk and the sales growth of the firm may affect the short term debt financing decision. In selection of the financing decision; firms past, current and expected activities was crucial for lender and borrower, such that sales growth, inventory held, and liquidity condition of the firm. Many Authors as Guedes and Opler (1996) and Saumitra (2002) discussed the sales growth as a main factor affecting to debt financing decision of the firm in research. The Hypothesized relationship of the variable is provided below: H1: There is positive impact of sales growth on corporate borrowing. H2: There is a positive impact of inventory held on corporate borrowing. 1.4 Outline of the Study The research presented the introduction of the thesis in chapter one, which included the problem statement of the study, scope of research, hypotheses etc. Literature review of the study was presented in chapter two with review by different authors on impact of sales growth on corporate borrowing. The research methodology was described in chapter three with justification of the selection of variables, sample size, sampling technique and statistical technique used in analysis of the study, and also developed model were described. After processing of data, the analysis interpretation of the results was described in the chapter four with hypothesis assessment summary. The summarized findings, conclusion, discussions, implications and recommendations, and suggested future directions for the empirical research on impact of sales growth on corporate borrowing was defined in chapter five. References and appendixes for the study were given in chapter six and at the end of study respectively. Chapter-2 LITERATURE REVIEW A lot of research has already been conducted in the field of identifying the best determinants of Corporate Borrowing by various researchers. Most of the research work suggested that the corporate borrowing vary from company to company and similarly from decision factor to factor. Marsh (1982) addressed that the borrowing decisions were taken by firms both by raising debt or finance, here question raised for corporation, what level of financing is required and which financing decision would be better for firm health. The firms borrowing decisions biased over its target level of debt, if its debt was below the target level of debt, so, the decision of debt financing would taken, otherwise financing decision was taken by firms due to signal of existing level of borrowing was above its target level of debt. The significant flotation costs for existence of corporations means that companies required to plan issues with objective to minimize both costs of its target ratio deviation and flotation costs. Over time fluctuating, it gave rise to infrequent issues of firm with its targeted debt ratio and firms clearly identified that what its level of target is. Miller and Rock (1977) debated over debt and explained two points; first, shift issue occurred in firm decision towards either equity or debt due to any change in level of tax, hence issue effect either temporary lasting until equilibrium level was restored, or shift issue remained permanent over target ratio of firms. The second point were elaborated that the probability of firm financial distresses and systematic risk level influenced the target debt levels of firm, it was defined that the highly operating risk of firm used the less level of debt financing. Myers, Brealey and Schaefer (1977) argued that companies avoid fixed interest rate of long term debt due to uncertainty of future rates of inflation and instead of long term debt rely over variable rate of short term debt. Barges (1968) explained the ability of a firm towards sales growth rate and capacity of debt, the explanation were shown with two factors, first the expected growth rate of future earnings of firm and the probability of expected sales growth and earnings of firm. Generally, high rate of expected future earning signify a greater capacity of a firm to carry debt; hence low expected future earnings mean the opposite. The degree of uncertainty for any level of expected future earnings for debt capacity of firm was served by knowing a limiting factor. Barclay et al. (1995) showed that credit quality and size moderately effect on firms to augment its debts term to maturity, and firms debt falls with growth opportunities. In a related article, Stohs et al. (1996) defined that larger firms most likely used the long term debt to avail the growth opportunity of its sales. The earlier studies examined the corporate debt maturity on behalf of issues of incremental debt rather than to investigate the maturity of liabilities of firm on balance sheet. By studying the liabilities to assets on balance sheets could answer some uninvestigated questions about impact of sales growth on corporate borrowings. Myers et al. (1977) suggested that agency cost and problems of debt can be controlled by firm to shortening the worth of its debt with respect to the volume of its sales. While some firms gain incentives from liquidity risk to borrow long term debt, it may not be able to compensate investors to bear credit risk of long-term debt for the sake of sales growth; it may indicate the low quality projects (Diamond Douglas, 1991.) and (Stiglitz, Joeph Weiss, 1981). Hence the low-quality firms cant sustain their position or can be screened out from long-term debt market, only high credit quality firms can be stable and able to borrow long-term debts. In contrast, larger firms were defined for long run as having higher likely possibilities to survive than smaller firms (Queen, Maggie Richard, 1987). Brick, Ivan and Ravid (1985) examined that interest payments affect the borrowers and lenders with respect to firms volume of sales due to different time patterns. The interest text shield was argued that borrowers seek to maximize the present value by accelerating interest payments, while lenders priorities to diminish the present value of tax charges by slow downing interest payments. Leff (1979), Khanna and Palepu (2000) addressed that the dominant perspective and minimizing perspective of transaction costs on business groups plays a crucial role on firms affiliations with these groups to overcome the barriers in an inefficient market. The view of transaction cost minimizing is characterized by weak governance system of firms, in part due to weak legal institutions or under developed intermediaries. Increase in the external financing investment cost may occur due to association of agency cost problems with market imperfections. However, this study will not develop and test the hypothetical views of business groups. Mitchell (1991) finds no support on the firm choice to match their asset maturities with maturity of debt issues. In a similar on debt issues, Guedes and Opler (1994) argue that high grade firms with large investment issue short-term debt. Diamonds (1991) predicted that active participants part in short-term credit markets was taken by the higher-rated firms to avail growth opportunities of the firm. Auerbach and Alan (1979) also argued that growth rate of sales and leverage are inversely proportion because the interest payment of tax deductibility was considered less valuable to the larger or fast growing firms. The firms annual sales growth rate in total assets was used as a growth rate of proxy. Asset maturity was defined as an important factor for corporate borrowing and plays stable role to predict the debt maturity of a firm. Myers et al. (1977) argued that long-term assets of firm can support to gain more long-term debt. In contrast, Titman, Sheridan and Wessels (1988) analyzed debt maturity on the basis of balance sheet and viewed the evidences that smaller firms rely on higher proportion of short-term debt with objective to minimize long-term debt flotation costs. Barclay et al. both addressed that smaller firms more likely with growth opportunities rely on a smaller proportion of debt that would exceeds 3 years. Myers and Stewart (1977) expressed the views on these evidences that debt maturity is used by firms to control interest conflicts between debt and equity holders. The preceding papers provided useful approaches for firms debt maturity choices; hence the measure had various limitations. First, the term-to-maturity in the corporate borrowing provided the information just about incremental financing choices. The debt maturity average of the firms existing liabilities test relate to the terms-to-maturity of debt issues to balance sheet variables such as asset maturity or return on assets (Stohs et al. 1996). Myers et al. defined the borrowing decisions of firms by using two indicators for growth: sales growth and growth of firm total assets. The research study focused to examine the behavior of firm borrowing decisions and concluded that; to prevent the agency cost of long term debt, most of the firms proffer short term debt decisions instead of long term debt. While Froot et al. (1993), Lucas, Deborah and McDonald (1990), and Kale, Jayant and Thomas (1990) examined the firm growth with three indicators of growth: sales growth, growth of firms total assets and growth of employing size of firm, and concluded that firm growth is independent of firm size. To study firms complete size distribution, the several alternative forms of samples were used, so, the variables were leading each others, while the definite relationship for alternative form of samples were crucially assumed and it was derived that firm growth decreases with all three indicators for agency cost of long-term debt financing , hence the sales growth were certain. Loughran, Tim, Ritter J. (1995) accentuated the importance of firm growth, debt financing decision and changes in market structure. Mansfield addressed that debt financing is better when growth opportunities of firm were available and demanded, so the profitability of firm was certain and debt financing was benefited as the tax advantage of firm. DeAngelo and Masulis (1980) examined the financing decisions of firm and showed that firm value was being affected by the financing decisions of the firm, if the firm has to avail certain growth opportunities, so the debt financing decisions was defined as an effective tax advantage and resulted decline in non-debt tax shields. Firm financing decision except debt financing resulted without tax shield beneficiaries, debt interest and principle payments were excluded from earnings of firm before tax applied and included the net short term losses in taxable income and then the corporate taxes was being applied over taxable income. Hence it was addressed that the profitability of firm and the proportion of profitability over assets was affected by the corporate tax. Gan (2007) addressed to normalize the loan payment balances of prior debts and lending decisions. It was explained that the payment of debt balances of loans slowly and present value of generated profits exceeded the present value of total payments which were gradually paid. It has also an impact over firm capital and the proportion of debt over capital, the ratio of firms capital was reduced with the excess of debt. Firms health with proportion of debt to capital explained that healthy capital was being shown from the borrowers willingness to repay gradually loan payment, and lenders willingness to lend. Debt financing and loan payments has also an impact over firm net profitability and the proportion of net earnings over firm total assets or return on assets, it must be paid even in bed time of firm, so well, required payments reduces the firm profitability and return on assets. The proportionate of earnings over total assets showed the efficiency of firm that how well the firm has utilized its assets to bear the cost of financing. Return on assets and prior debt to capital worth was used by means of lenders amount and implicitly measure the worthiness of firm capital. Dedoussis and Afroditi (2010) argued the problems with characteristics of a firm such as assets value or growth opportunities were communicated inability of firm to outside lenders, so that investment decisions were affected by net worth of firm if the discrepancy exists between firm internal and external financing. Hayashi (1982) explained that marginal profitability was covered by firms to expanding the business and sales of firm with bearing the moderate changes in firm expenditure. The described expansion were done by corporations with various financing decisions, it was suggested that the debt financing is better to avail if the market was shown under green signals of demand, if the markets demand were not shown so the firms prevent the debt financing because of interest payment which must be paid even in bad time of cash flows. Hadlock (1998) assumed that financiers were indecisive about the factual value of firms assets, so expectations were formed based on the investment amount that firm requests to carry out. If the firm requested for the maximum amount subsequently the investors were not capable to discriminate between firms with large resources or low resources. So the large assets of firm with low claims send a green signal to investor to putting money for debt investors. While it send the signal to equity provider to cutting the amount of investment if the money is required for new project establishment because it shorten its net earnings as well as the earning of shareholders. CHAPTER 3: RESEARCH METHOD 3.1 Method of Data Collection Data was obtained from the website of Karachi Stock Exchange KSE-100 Index and Joint Stock Companies Balance Sheet Analysis specified by State Bank of Pakistan in periodical listed on the KSE (2004-2009). The period of study covered with data of five years as sample of 2005-09. The opted sample size of all cement sector firms was taken from Karachi Stock Exchange-100 Index and the firms whose data were not available in the sample year of 2005-09 were excluded from the study. The objective behind the insertion of the firms in the sample was to explore debt financing behavior of cement firms significantly rely over sales growth opportunities or not. The major issue of data availability was faced in this research. The source of secondary data was adopted for the sampled data collection of this research study. In accordance with the research studies limitations three firms of cement sector were excluded from the study because two of the firms were newly listed and introduced in the Pakistani market and third was dropped from the KSE-100 Index during sample years of the study. The observed and expected aspects regarding the sales growth and debt financing was analyzed in this research. The external data sources were used to cope up the purpose of collection of data, such that general business publications, State Bank of Pakistan, companys annual reports, internet publications and books were used. The data required for study was completely dependent over the published and secondary data sources, as the sources defined above. 3.2 Sample Size The study selected all cement sector firms listed over KSE-100 Index as sample size for the research analysis. Total of 21 firms were listed over KSE-100 Index, hence, the firms whose data was not available during the sample year of 2005-2009, were excluded from the study, therefore three firms were excluded from the study because two of the excluded firms were newly listed and third was delisted over KSE-100 Index during the sample years. The impact of sales growth of firms on the corporate debt, which were listed on KSE-100 Index, was analyzed on the basis of the selected sample of 18 cement firms. 3.3 Research Model Developed From the various determinants of corporate debts which affected debt financing decision of the firms, this research study included only sales growth and inventory to analyze the impact of sales growth on corporate debt, the sales growth was measured by two variables one was directly change of current year sales with respect to last year sales, and second was level of inventory held by firm. The short term debts were used as a major dilemma for firms to face debt claims in swift time. The constructed mathematically model provided below; CD = a0 + ÃŽ ²1SG + ÃŽ ²2IH + ц Where: CD= corporate debt was measured as the change of short-term debt with respect to last year debt. SG= sales growth of firm with respect to last year sales of the firm. IH= inventory held by firm during the year. ц = the error term 3.4 Statistical Technique To examine the impact of sales growth on corporate borrowing, the multiple linear regression analysis (MLR) as a statistical technique was used for analyzed research study over selected sample firms; the SPSS software was used to test the secondary data. Multiple Linear Regression Analysis technique was used for prediction of sales growth with respect to last year sales and inventory hold by firm defined as the studied variables had an impact on corporate borrowing decision especially on short term financing. The identified technique was used to analyze the empirical behavior of firms financings with studied independent variables (sales growth and inventory hold) on dependent variable i.e., Corporate Borrowing (short-term financing discussed in the previous chapter). According to the characteristics of research study and variables used in this study, the multiple linear regressions; a multivariate analysis was appropriate to used than univariate investigation. In such a way the referenced studies also suggested to use the multivariate analysis technique. The intensity of sales growth impact on corporate debt during year 2005-2009 was observed on the basis of studied independent variables i.e. sales growth and inventory hold by firm during the year. CHAPTER 4: RESULTS All firms of cement industry listed on KSE-100 Index were selected as sample for this research study, and Multiple Linear Regression Analysis was taken as a statistical technique for analysis of this research study. This research was tested and analyzed by using multivariate technique for the prediction of impact of the sales growth with respect to last years sale and inventory hold by firm on corporate borrowing decision especially on short term financing. The identified technique was used to examine the impact of the studied independent variables (sales growth and inventory hold) on dependent variable i.e., Corporate Borrowing (short-term financing discussed in the previous chapter). 4.1 Findings and Interpretation Primarily, the regression technique in SPSS was applied on collected data. The resulted output of data showed that the data has no multicolinearity issue, while the normality issue was found in the data, to resolve normality issue of the data; so all the transformation techniques were used. By applying all the transformations, the studied variables found to be insignificant, so it was described that the data was highly volatile in Pakistani market so the normality issue was ignored to predict the variables. As the multicolinearity issue was not in the data, so the study initiated to analyze the results. The analysis and interpretation of the results was defined in following section of the research. Table 4.1: Model Summary Model R R Square Adjusted R Square 1 .722 .521 .510 Table 4.1 demonstrated summary of the regression model. The Adjusted R square was best for prediction of model as per the number of variables used. The Adjusted R square of 51% in the above table showed that the both of the predictors of corporate borrowing combined together explained 51% variation in whole model, while the remaining was residual variance as latent and not included in the prediction of the model. In other words, Adjusted R square showed that 51% variation in outcome was explained by the population of the study. Table 4.2: ANOVA Model Sum of Squares Df Mean Square F Sig. 1 Regression 3.766E8 2 1.883E8 47.289 .000 Residual 3.464E8 87 3981969.306 Total 7.230E8 89 The table 4.2 represented the significance of estimated linear model of the study, the sig value of ANOVA supported the model fitness for this research study file regarding applicability of the regression technique, ANOVA table was consistent for examination of the models ability to predict any variation in observed dependent variable such that corporate borrowing. This was absolutely understandable from the sig value of .000 which showed that the linear regression model was perfectly momentous for the conducted research. Table 4.3: Coefficients Model Unstandardized Coefficients Standardized Coefficients t Sig. Collinearity Statistics B Std. Error Beta Tolerance VIF 1 (Constant) 1082.629 295.525 3.663 .000 Inventry 7.543 1.179 .593 6.399 .000 .641 1.561 SG .307 .152 .188 2.026 .046 .641 1.561 The table 4.3 represented crucial results for regression model of this study. Sig column of above table demonstrated that all variables of the study were significant and all independent variables of the hypothesis of this research study had significantly influential intensity over dependent variable of the study. Sig column demonstrated that the un-standardized coefficients of variables is zero or not; when the sig value was higher or equal to .05, the un-standardize coefficients considered as zero; and when the sig value was lower than .05, then the un-standardize coefficients of the model was not considered as zero. The value of column B demonstrated that one unit varies in independent variable consequence change in dependent variable with the weights equal to the weights of column B. The VIF column showed the existence of multicollinearity issue in the studied independent variables. As all of the VIF values found less than 2, so this identified the least acceptable level of multic ollinearity in the study. 4.2 Hypotheses Assessment Summary The studied hypothesis was sales growth of the firm has significant positive impact on corporate borrowing decisions to finance in short-term credit market. The firms sales growth characteristics had variation in current year sales of firm with respect to last year sales and the level of inventory hold by firm during financing years. In this study each of the sales growth variable and inventory variable as firms sales growth characteristic for corporate borrowing were tested and concluded in the outcome. TABLE 4.4 : Hypotheses Assessment Summary S.NO. Hypotheses ÃŽ ² SIG. RESULT H1 There is a positive impact of sales growth on corporate borrowing. 0.307 .046 Accepted H2 There is a positive impact of inventory hold on corporate borrowing. 7.543 0.000 Accepted CHAPTER 5: DISCUSSIONS, CONCLUSION, IMPLICATIONS AND FUTURE RESEARCH 5.1 Conclusion The results of the study suggested that sales growth has positive impact on corporate borrowing which identified the significance of sales growth impact in Pakistani market. The second variable of the study was also identified the significance impact in Pakistani market and had intensity to impact over corporate borrowing. The results of this study were not matching with referenced studies conducted by Guedes Opler (1996), and these results had also shown consistency with the study conducted by Barclay et al. The studied results varying because the matched studies were conducted in various countries, so the firms environments and circumstances of the countries usually differed to make financing decisions accordingly. 5.2 Discussions Firm sales opportunities played a vital role in defining the firms sales growth but these growth opportunities varied over volatility in environmental growth of the countries, hence, this dilemma was not with the study of Guedes Opler (1996), because in his study the level of inventory hold by the firm over the year was playing a significant role. Variations in the corporate borrowing were highly explained by the level of inventory held by firm over the year. While sales growth of the firm concluded same results with consistent to the research study of Barclay et al. 5.3 Implications and Recommendations This research study was limited to the cement sector firms listed on Karachi Stock Exchange of Pakistan only. The data was taken from annual reports of all cement sector firms. This research suggested it was not necessity that only firms sales growth has impact on corporate borrowing or the corporate borrowing decisions was affected only by sales growth and inventory factors such type of other borrowing factors should be carried out and analyses in other countries of the Asia as well, as to have inclusive idea about the impact of sales growth on corporate borrowing. Furthermore, the research study also suggested that other factors of corporate borrowing discussed in the chapter one should be researched as to have perfect idea for the debt financing decisions of the firm. For instance, this research study can also be replicated efficiently in other developing countries. 5.4 Future Research This research study may helped various management of the firm, investors and other research conductors in analyzing and observing the debt behavior and financing decisions of firms to achieve sales growth opportunities of the firm. The students whose intention is to research on either debt financing behavior of the firm or to study the growth behavior of the firm with respect to debt can be benefited by this study. Furthermore, the cement sector will become advantageous from this study because the study clarifies the impact of sales growth of firm on corporate short term borrowing. CHAPTER 6: REFERENCES Auerbach Alan (1979). Share valuation and corporate equity policy. Journal of Public Economics, 11, 291-305. Barclay, Michael J., Clifford W. Smith Jr. (1995). The maturity structure of corporate debt. Journal of Finance, 50, 609-631. Barges A. (1968). InstituteGrowth Rates and Debt Capacity. Financial Analysts Journal, 24, 100-104. Brick, Ivan, and Ravid S. (1985). On the relevance of debt maturity structure. Journal of Finance, 40, 1423-1437. DeAngelo, H., and Masulis R. (1980). Optimal Capital Structure under Corporate and Personal Taxation. Journal of Financial Economics, 8, 3-29.

Essays --

History is important to modern American spirituality because we are the past. We are the totality of all events that have happened to us. This beginning and ending product guides our actions in the present. The understanding of American spirituality today can be implied through it’s the repetition of itself. Histories matter the most because we learn and understand our human nature to see how others dealt with conflicts and problems so we can further understand how to not only prevent but also deal with it faster in the future. In Bron Taylor’s â€Å"Dark Green Religion† and Courtney Bender’s â€Å"Religion and Spirituality: History, Discourse, Measurement†, explains of the best ways to live life through knowing one’s history. The individual and the societies that are built through the struggles of our past events are the only way we can understand who we are and how we got to be the way we are is by studying the past. History is a study of the past that can help oneself understand what made them who we are. In cases like if we had lost the American Revolution, or if the Spanish had founded ... Essays -- History is important to modern American spirituality because we are the past. We are the totality of all events that have happened to us. This beginning and ending product guides our actions in the present. The understanding of American spirituality today can be implied through it’s the repetition of itself. Histories matter the most because we learn and understand our human nature to see how others dealt with conflicts and problems so we can further understand how to not only prevent but also deal with it faster in the future. In Bron Taylor’s â€Å"Dark Green Religion† and Courtney Bender’s â€Å"Religion and Spirituality: History, Discourse, Measurement†, explains of the best ways to live life through knowing one’s history. The individual and the societies that are built through the struggles of our past events are the only way we can understand who we are and how we got to be the way we are is by studying the past. History is a study of the past that can help oneself understand what made them who we are. In cases like if we had lost the American Revolution, or if the Spanish had founded ...

Effect of Socioeconomic Status to Education Essay

I. Introduction Thesis Statement The learning of Lasallian students are affected by the inflexible relationship between education and socioeconomic status. A. Background of the Study 1. The Socioeconomic Classes in the Philippines According to National Center for Economic Statistics (2008), when analyzing a family’s SES, the household income, earners’ education, and occupation are examined, as well as combined income, versus with an individual, when their own attributes are assessed. Family Income and Expenditure Survey of the National Statistical Coordination Board (2010) shows the statistics hierarchal socioeconomic classes of differences in the Philippines that the Higher Class Family or A class are the top 5% (5 million people) – P25,000 to, millions of dollars, and billions of pesos those are Filipinos that are Senior Politicians, Land owners, Large Business Owners and Middle Class Family or B class which comprises 10-15% population which estimated 10-15 million Filipino people with wages of P15,000 – 25,000 a month that consists of Mid-Level Politicians, Professionals – doctors, engineers, superv isors and lastly Low Class Family that composes of 20%, equivalent to 20million Filipino people with a salary of P5,000 -15,000 a month they are the skilled craftsman, teachers and nurses as well as bank clerks and retail shop assistants. 2. Education in the Philippines Dr. Romulo Virola of Philippine Education (2009) has shown that Philippine spend only 3.3% of GDP (Gender Disparity ) on public educational institutions for all levels of education ;this is lower than 7.4% for Malaysia , 4.0% for Thailand, 4.0% for all WEI (World Education Indicators) and 5.2 % average for OECD (Organization for Economic Co-operation and Development) countries. (Morgan, Farkas, Hillemier, &Maczuga, 2009). Education is the best legacy a nation can give to her citizens especially the youth; this is because the development of any nation or community depends largely on the quality of education of such a nation. It is generally believed that the basis for any true development must commence with the development of human resources if our government continue to develop this kind of education. The famous quotation (Dr. Jose P. Rizal, 1898) â€Å"The youth is the hope of our future† will only be just a collection of poetry from Rizal’s books. In the Philippines there is a two kind of schools the public schools which is under the supervision of DepEd (Department of Education)while the private schools which under the administration of CHED (Commission on Higher Education), and according to Willy Blackwell (2010) Private schools tend to have better funding than public schools. The additional funding from the private schools means more access to resources which could result to enhance better academic performance but hence most private schools in the Philippines have higher tuition fee than in public schools with 95 percent of all elementary students attending public schools, the educational crisis in the Philippines is basically a crisis of public education. The wealthy can easily send their offspring to private schools, many of which offer first-class education t o the privileged class of pupils. 3. The La Salle University in Ozamiz City La Salle University (LSU), formerly known as Immaculate Conception College-La Salle, is a member school of De La Salle Philippines located in Ozamiz City, Misamis Occidental, Philippines. Its quality in Education and the best approaches had joined efforts of the school administration, faculty and staff in catering to the needs of their learners, provided the students the use of technology in instruction, and the system that the university is using in almost all of its tasks is computer-based. The campus is also equipped with Wi-Fi hotspots, computer terminals are also present inside, and to better facilitate learning, four audio-visual rooms are available for students’ and faculty use, each equipped with a high-end LCD/DLP projector and a laptop or a PC, these technologies equipped the students and the teachers with the skills and the knowledge in integrating technology for instruction. (www.lsu.edu.ph). While, For the past 2 years the socioeconomic profile of the students enrolled in LSU according to Mrs. Tagaylo that the number of students is approximately six thousand nine hundred forty-seven (6,947), whereas the number of working students according to Mrs. Prosadas and Mr. Saplad is nearly five hundred fifty-two (552), and as we subtract the number of working students to the total number of students enrolled it resulted that the regular students are approximately six thousand three hundred ninety-five (6,395), and it shows that the working students comprise only 1/3 of the total number of population in LSU, as a result the socioeconomic profile of the students in La Salle University, highly belong in upper level in the socioeconomic classes in the Philippines. A. Statement of Purpose The researchers want to learn the impact of the correlationship between socioeconomic status and education to the learning of the Lasallian students. Specifically this study aims to answer the following questions: 1. How do socioeconomic statuses of the students affect their academic performance? 2. How does socioeconomic status affect to the psychological aspect of the students? 3. How socioeconomic status and education correlate each other? B. Definition of Terms Socioeconomic Status (SES) – an economic and sociological combined total measures of a person’s work experiences (www.thesaurus.com). Quality of Education –degree of excellence in developing knowledge and skills (www.nb.edu.ph). Occupation – an employment of a person under service performed for payment (www.dictionary.com). Academic Achievements – the outcome of the education of the school extent that has attained an educational goal (www.nb.edu.ph). School – an institution for instruction of being educated formally to develop knowledge and skills (www.thesaurus.com). Socioeconomic Classes- social standing of an individual or group (www.journalclass.com). II. METHODOLOGY A. Research design This study used descriptive method where in the researchers gathered information about the target respondents. This study is investigative in nature the researchers made questionnaires. B. Respondents and Locale The respondents were randomly selected 15 male and 15 female working students and 15 male and 15 female regular students here in La Salle University Ozamiz City, enrolled in different colleges. C. Materials The researchers use questionnaires in order to conduct survey to the respondents. D. Test taking Procedure The researchers conducted surveys that were randomly given to selected 15 male and 15 female working students and 15 male and 15 female regular students in La Salle University, Ozamiz City. In addition, observation was constituted in order to determine the effect of socioeconomic status of the students here at La Salle University, Ozamiz City. E. Data Collection The researchers collected data from references that were found in books, internet sources and compress the ideas in the result from the survey they had conducted.

Voyeurism and Hygiene in Degass monotype series The Bathers

Voyeurism and Hygiene in Degass monotype series The Bathers Natalie Samantha MurfinG14M2545"Using the above quotation, discuss Anthea Callan's notions of voyeurism and hygiene is Degas's monotype series The Bathers"AHVC 1Zamansele NseleI declare that this essay is my own wark and that all the sources I have used have been acknowledged by means of complete references._______________25/10/2014Nead states that to depict a body is to deal with "inescapable issues of representation" (Nead 1992). The depiction of nudes in art is considered by many to be a cornerstone of artistic practise - "The female body has become art" (Nead 1992: 19). Nudes are typically historically depicted in an austere and controlled manner, "contained within boundaries, conventions and poses" (Nead 1992: 11) so as to be considered 'appropriate' and without the associations of being "pornographic". Some works, however, break such representational conventions and thus, draw attention to the framework through which one views the nude.This essay aims to examine one of these bo dies of work - namely Degas's monotype series The Bathers - and highlight the notions of hygiene and voyeurism present therein.Degas's series of pastel and monotype drawings, The Bathers, was first exhibited in its entirety in France in 1877 (Callan, 1995: 72). The works were considered so controversial that "they elicited the largest single body of criticism on the artist's work" (Callan, 1995: 71). The works, small in size, depicted nude prostitutes in then-contemporary France over a large number of monotype plates (Callan, 1995: 72). Though prostitutes had typically been used as nude models in painting before this body of work, the nature of Degas's depiction of them challenged most accepted conventions of "nude painting" - the women in the works were "crossing the boundaries [] of cultural convention" (Callan, 1995: 139).Part of the...

Israel essays

Israel essays Thesis- Israel has preserved their culture, land, and well being by defending their borders stopping any attempt to disrupt the Jewish state. Israel is extremely different than their surrounding countries. Being very unique in their niche of the world has made Israel have some enemies. Other countries have tried to break Israels back by constantly attacking all the hold sacred. Sometimes going to such extremes as to attack during religious holidays and killing children. Israel has preserved their place in the world by defending their borders and stopping any attempt to ruin the Jewish state. (World Book Online...par 6-7) In 1948 the UN decided to break Palestine up into two parts, one Arab the other Jewish. Theist created the state of Israel. The Arabs however, rejected the split. What was to come was Israels first war. But instead of fighting one enemy they had to fight several. Armies were sent by Egypt, Jordan, Syria, Iraq, and Lebanon to fight the UNs decision. The result was the war of 1948-49. The Arabs had an enormous strategic advantage. With Jordans 10,000 British trained troops artillery experienced, and Iraqs army planning to cut the Jewish state in half things looked good for the Arabs. The Egyptian forces were planning on giving Israel a deafening blow by going through Gaza and towards Jerusalem in two different forces. All in all the Arabs were very confident with their numbers compared to the Israelis with the Arabs at 37,000 and Israel at 28,000. If performed correct the Arabs could make the Israelis fight on three differ fronts. That would prove to be very beneficial to the Arabs for the Israelis were ill equipped and inexperienced for such a fight. The first of the attacks began when Syria attacked Northern Israeli villages. The Syrians started on May 14 with an artillery attack concentrated on the Ein GeV area. This was accompanied with an attack...

Tower Project Description Research Paper Example | Topics and Well Written Essays - 1000 words

Tower Project Description - Research Paper Example Objective To construct television station facilities Scope 1. Construct a 340-feet television antenna tower 2. Construct a building for the transmission and electrical equipment 3. Stock electrical equipment, site preparation, the building and the connecting cable. Monte Carlo Simulation Monte Carlo simulation is a significant demonstrating and analyzing technique. This method manages project risks and poor decisions. Monte Carlo simulation uses calculated data thus allowing program managers to explain and communicate project expectations in a clear way. Monte Carlo technique if combined with training and appropriate education in risk management can lead to effective project execution. In this project of tower construction, the technique (Monte Carlo) analyzes the effects of risk and poor decisions in plan budgets of a project and project performance. For instance, project completion time and required budget are analyzed. In the construction of the tower project, Monte Carlo will be used in two key areas: Area of cost management and to calculate the risk level of the project budget (scheduled date of project completion). The method will explain how it helps the project manager in responding to queries like, how to meet project due date and how long the project will take (McLeish 87). Time Management in Tower Project Monte Carlo will be applied to the project planning to calculate the confidence of project completion. The manager, contract administrative staff, the project engineer and the industrial engineer should have the target of the project completion date (project period). The functions and the duration to each activity should be estimated properly to avoid delays. The project activities and timeframe in this project are well documented. Monte Carlo uses a three-point assessment to streamline the practice of time management. The three-point durations are: best-case durations, worst case and the expert provision (the most-likely duration). The project mana ger fits these three estimates to a duration possibility distribution. For instance we have normal and beta distribution for the activities. When the simulation is complete, the probability of completing the project on a certain date is communicated by the manager. This probability allows the project manager to set schedules for the project (McLeish 105). Cost Management in Tower Project Monte Carlo simulation is used by the project management to better understand the project budget and approximate the final budget. It involves the assigning of distribution to the project cost rather than assigning a probability distribution to the project activities duration. The approximations are usually formed by a project cost expert. The ultimate product is a probability distribution of the ultimate total project costs. This distribution of the ultimate total costs is used by the project manager to set aside budget reserves. Monte Carlo Simulation can also be used in project management, progra m and portfolio management. In the Tower project, Monte Carlo Simulation is used in the construction of the project to comprehend certain risks to this project: man-made risks, natural and environmental risks to the project (McLeish 127).This allows for early detection and mitigation of the risks before they occur. Monte Carlo points out uncertainties in this project for understanding and mitigating them. Khamooshi-Cioffi (USM) Model This is a method of presentation accepted risks, impacts and probabilities of the life in a project. Project manager and stakeholders in the Tower project can decide risk acceptance and set aside equivalent possibility funds. This method uses a

Politics of the Counter-culture in Relation to Class and Gender Essay

Politics of the Counter-culture in Relation to Class and Gender - Essay Example The vital role in the development of this counter-culture was played by the politics, influential individuals, the significant subcultures and cultural groups working against the dominant social behaviour and culture of the period. Counter-culture in the US referred to the extensive refusal of the mainstream social culture and norms of the previous decade, i.e. the 1960s. Significantly, this is identified with the emerging subculture of the youth who discarded the cultural standards of their previous generation and the youth culture in the US resulted in the cultural and political segregation of the youth. The counter-culture in the UK can be realised as a reaction against the post-war social norms of the 1940s and 1950s and this was characterised by a counter culture of the youth. Whereas several societies have witnessed distinct of counter-culture in various forms, it referred more to a visible phenomenon affecting several spheres of the social life in the UK. Thus, the counter-cul tural movement in the UK expressed the ethos, aspirations, and dreams of the particular subculture of the youth during the 1960s and 70s. ... As such, psychedelic experience falls into place as one, but only one, possible method of mounting that exploration. It becomes a limited chemical means to a greater psychic end, namely the reformulation of the personality, upon which social ideology and culture generally are ultimately based." (Whiteley, 81) Therefore, the politics of the British counter-culture needs to be comprehended in relation to race, class, gender and the freedom of the youth subculture. The counter-culture was the most prominent social reality of the 1960 in the US and the UK and the emerging youth culture proved significant contributor and sponsor of this movement. Counter-culture is often related to class and gender and the movement mainly affected the youths of the period who longed for all sorts of freedom. The extensive popularity of the counter-culture was marked by the great interest in popular music, tastes, drug consumption, and art. The counter-culture also manifested its control over the media and publishing. In her book Promise of a Dream: Remembering the Sixties, Sheila Rowbotham gives a significant account of the emergence and spirit of the counter-culture which also signals the emergence of new interests and tastes among the popular culture. "As 1966 drew to a close a counter-culture was emerging which was to run alongside the radical movement, sometimes interacting with it, sometimes diverging from it. A heady mix of music, drugs, art and underground papers was ready for take-off. The great congregation of people who showed up at the Roundhouse to launch International Times that October seemed to be the alternative manifest. The vast old round building, a former railway turning shed, in Chalk Farm, north London, belonged to