The Start of the Contamination in Man’s Environment

In the late 1960s to 1970s, Americans realized that industry was doing serious damage to air, water, and the earth itself, the most essential natural resources. The whole awareness of the damage being done to the environment stemmed out from the energy crisis of the 1970s. The energy crisis was a ‘slap-in-the-face' for America. They needed to realize the harm that was being done to the natural resources and their decreasing availability as a result. With the decreasing availability and increasing prices of oil, new energy sources had to be discovered. Although scientists found nuclear power to be a clean, cheap, and unlimited source of power at first, the environmentalists fought to minimize its usage for fear of nuclear meltdowns, which could spread nuclear waste. Alternative energy sources were possible, and what appeared to be the most effective were tidal energy and solar energy. These environmentally safe methods of harnessing energy were just what the environmentalists had aimed for, and a new movement had been started – environmentalism. If you read this circle it. The environmentalists also tried to advocate the conservation of energy, so that the cleaner but less effective ways could be manipulated to produce more energy. Despite many efforts to keep the environment clean, some 200 million tons of pollutants were filling the air each year, and clean air in many cities had been replaced by smog. The earth, air, and water were deteriorating as construction of highways, malls, and housing developments caused the destruction of fertile, irreplaceable farmland. Disposal of wastes was another dilemma to be dealt with. Burning could release poisonous gases into the air, and burial could cause harmful decay. By the mid-1960s, people began to really realize the need to conserve the nation's resources. Much credit for arousing public concern belonged to Rachel Carson for her book Silent Spring. This book warned of the central problem of our age being the contamination of man's environment. During the next few years, growing numbers of ecologists, biologists, and other scientists showed their concern about the reckless abuse of the environment. In 1970, Congress created the Environmental Protection Agency (EPA), which helped set laws regulating use of pesticides, insecticides, and other potentially dangerous sprays. They protected endangered wildlife, and ordered that car manufacturers had to provide pollution control devices on exhausts of their vehicles. New waste disposal and sewage treatment plants were being built to prevent further pollution of the land and water and to clean up the rivers and lakes. Government also regulated unsightly junkyards and dumps to restore the natural beauty of the countryside. Federal government set aside more areas as national parks, not to be tampered with, and considerable progress had been made in the management and conservation of America's forests, soil, and water. However, many people felt that it was not necessary for the government to take all this action. President Reagan gave in and allowed the search for minerals on federal lands and oil exploration off the coast of California, which some felt was very risky, because of the chance of an oil spill, which would devastate all ocean life in the area. Environmental decisions were important in the sixties era, as many other nations followed them with concern. With the world's population increasing so rapidly, the earth's natural resources will be heavily taxed, and many people, the environmentalists, believed that resource conservation was extremely important in maintaining the living conditions of the world population.

The Impact Of Leverage On Investment Finance Essay - Free Essay Example

Sample details Pages: 18 Words: 5380 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Abstract: This research study aims to scrutinize the impact of leverage on investment of 120 financial firms that are listed on Karachi Stock Exchange, over the time period of 2008. In this study we have provided a literature review, placing emphasis on quantifying the relationship between leverage and investment of financial firms. Prior research studies in this regard have shown that investment of the firm decreases with increase in leverage. Don’t waste time! Our writers will create an original "The Impact Of Leverage On Investment Finance Essay" essay for you Create order Prior results also indicated that investments of financial firms are positively related to equity and cash flow ratio i.e. any increase or decrease in investment of the firms is directly proportional to the changes in these variables. Moreover, prior research studies have also demonstrated that leverage plays an important role in restraining and controlling the overinvestment made by the financial firms. Our review constructs an integrated theoretical framework from distinct streams of existing literature. This study is guided by distinct disciplines including debt financing, investment management and firm performance. Although literature supplements the negative impact of debt financing on investment, we also opt to measure the same relationship in the context of financial sector of Pakistan. We have identified areas that need significant research work for greater understanding of leverage and investment relationship, and provided recommendations for future research work. Keyw ords: leverage; Assets; Karachi Stock Exchange; investment; Equity; Cash flow Introduction: The importance of debt financing and investment in the development of financial and non-financial sector has been recognized by the financialists and economists for many years now. The knowledge of such key variables is very crucial for the economic development of a country. Firms that rely more on the use of leverage in their capital structure should be aware of debts impact on their investment portfolio. As a result of such significant importance of debt and investment management, they have become an important part of companies economical development efforts, and due to which there has been a constant increase in the ratio of such research studies universally. The proportion of firms debts and investments are the key performance indicators of the companies for the shareholders and potential investors. These balance sheet items are considered by the investors before developing their investment portfolio. According to the research work of (AL-Shubiri, 2012; Main and Ismail, 2008 ), debt ratio negatively affect firms investment; fixed investments decline or deteriorate in response to growth in leverage ratio. Therefore, it is necessary for all the financial participants whether individuals or firms to assume the relative importance of such economic variables before making investment decisions. Financial sector is the one of the highly regulated sector of the economy. Companies belonging to this sector are heavily loans dependent. Most of their daily transactions are comprised of borrowing and advancing loans and making investments decisions. To optimize their performance and mitigate the associated risk of default, research studies are the tools to offset such risks. This research study aims towards the minimization of financial firms risk exposure by studying and measuring the relationship between leverage and investment. This study will certainly develop and add value to the existing knowledge of debt financing in relation to investment decisions that a re made by the financial listed firms. Research Questions: A quantitative research study is always guided by the research questions of the study. It is therefore important to design research questions in such manner as to address the basic purpose of the study (Saunders et al, 2009). Research questions stated below are set to answer the knowledge gaps identified in literature review: Does the leverage affect investment negatively that is made by the financial listed firms? Does the impact of leverage on investment vary in firms with low equity and high equity? Does the impact of leverage on investment vary in firms with low cash flow ratio and high cash flow ratio? Research Hypotheses: Keeping in view the identified research gaps in literature, theoretical frame work and most important the research questions of the study, the following set of hypotheses are constructed where only null hypotheses are stated. The alternative hypotheses could be derived in such a way where the relationship between leverage and investment is expected. The following hypotheses are set in order to accomplish the objectives of this study: H1: There is no significant relationship between investment and leverage of the financial listed firms. H2: There is a significant negative relationship between investment and leverage in firms with low Equity. H4: There is a significant negative relationship between investment and leverage in firms with low cash flow ratio. Objectives of the Study: The general objective of this research study is to investigate the relationship between leverage and investment in the non-financial sector of Pakistan in the light of empirical evidence while considering the significance of different important variables. Given below are some of the specific objectives of the study: To measure the effect of leverage on investments decisions of non-financial listed companies in Karachi stock exchange. To measure the effect of debt in the firms with different level of shareholders equity and cash flows. To understand the importance of leverage and investment decisions in the financial sector of Pakistan. Contribution of the study: Keeping in view the above discussion, this study is intended to contribute to the existing knowledge of financial literacy. This piece of research work minimizes the outsized gap of research studies conducted on the topic of leverage and investment especially in Pakistan. Research studies undertaken worldwide, have suggested inverse relationship between leverage and investment. As there is a significant lack of studies on the relationship of leverage and investment in Pakistan, therefore this study is an attempt to overcome the identified research gaps. This research study also serve as a future reference for researchers and academicians on the subject of debt financing management in relation to investment in every business sector Significance of the study: As this study is an endeavor to facilitate financial firms, therefore its outcomes will be beneficial to utilize by banks, insurance, leasing and all other financial companies in order to betterly evaluate and analyze the available leverage and investment opportunity while minimizing the associated risk of default arising from these decisions. The findings of this study may also be of much value to the students, teachers and instructors belonging to corporate tax management and financial management, and other corporate strategies when they employ valuable effective learning in their classroom setting particularly in varied concepts related to the use of debt financing in relationship to the firms investments. As this is a literature based study with preliminary research findings, they may also be helpful to all the academicians working in the area of debt financing and investment management. Purpose of the study: The purpose of this study is attached to those research gaps that are left unfilled by other researchers. The available literature on leverage and investment relationship supports the negative relationship between leverage and investment of the firms. Researches in different sectors of the economy support this inverse relationship between leverage and investment. Therefore, there is a need of a research study especially in financial sector that could also take the relationship between leverage and investment under consideration in Pakistan as well. And as the purpose of this study is to fill the existing knowledge gaps in literature on leverage and investment relationship and to confirm whether the same inverse relationship exists in financial sector of Pakistan or not, therefore, the workout of this study will bring awareness among all the people working in financial companies of the world. SCOPE OF THE STUDY: The overarching aim of the proposed study is to quantify and measure the relationship between leverage and investment in the financial sector of Pakistan. As this study will incorporate cross sectional datasets of 2008 related to leverage, cash flow, assets and investment from financial listed companies in KSE, therefore, the findings will be only applicable to non-financial sector of Pakistan that is mainly comprised of Textile, Sugar and Cement companies. LIMITATIONS OF THE STUDY: This study may suffer from the follow limitations: As this study includes a sample of 120 different non-financial companies, therefore, there are chances that data for some variables of the companies may not be available and as a result sample size will shrink and analysis based on that may not give appropriate results. As the economical conditions of the Pakistan are very volatile, therefore, cross-sectional dataset of 2008 may not record the accurate intended results. LITERATURE REVIEW: This research study links distinct dimensions of literature that study the relationships between firms financial leverage and investment, debt ratio and investment, capital structure and firm performance in different non-financial sectors. In this part, we check the preceding literature and facts in all of these streams of research study. Our research study contributes directly to each of the streams of research discussed below. We establish prior research at a basic level on the relationship between leverage and firms investment. We then expand past research by delving into the role of Pakistani listed companies in Karachi stock exchange. Our research study devote directly to each of the streams of research argued as under Research studies conducted in the past have shown that leverage has a significantly negative impact on firms investment. Due to that reason, this research study aims to examine the impact of leverage on firms investment. The recent research study that h as been conducted by AL-Shubiri (2012), determines the impact of the bank and total debt ratio on Jordon listed companies fixed investment over the period of 2004 to 2009, and suggests a strong negative impact of total debt ratio on fixed investment for Jordon listed companies. Moreover, the bank loan ratio is also found to have a negative impact on firms fixed investment in Jordon but the impact of bank loan ratio is found to be greater than total debt ratio. He also states that companies having a higher Tobins Q and a cash flow ratio make a greater amount of investment. The author argued that the restraining effect of the bank loan ratio on overinvestment is greater than that of the impact of total debt ratio on overinvestment. The author doesnt show much clarity while stating the findings and conclusions of study to support his argument. As this study is focused on banking industry that relies more on financial data, therefore it would be of much relevance if the author has used other financial models. The author could have increased the generalisability of the research findings if the sample frame of study would contain non-financial firms. In this regard, Main and Ismail (2008) also examine the impact of debt ratio on investment in Malaysian listed firms during 2000 to 2007 by applying unbalance panel data .Their findings also support the negative effect of the total debt ratio on the firms investment but observe positive impact of bank loan ratio on the investment made by the Malaysian listed firms. The author shows similarity in research findings with AL-Shubiri (2012) that the firms with higher Tobins Q and cash flow ratio make huge amount of investment. The author added that the bank loan ratio has a high negative effect on investment of the firms having low-growth opportunities but suggest a very low impact of bank ratio on investment of high-growth companies. Their concluding remarks suggest that firms having higher tobins q and cash flow ratio, can make good profit out of their loan capital by investment investing it. The study incorporates the use of fixed asset as investment proxy but ignore the importance of other investment proxies such as market to book asset ratio and price-earnings ratio, thereby limiting the generalisability and validity of the study findings. To proceed for more in-depth inspection of the debt financing and firms investment decisions, a research study that is undertaken by incorporating the data of 60 Chinese real estate listed companies over the period of 2006-2008. The findings of the study has also confirmed the negative impact of the leverage on investment, which is reported significantly stronger for the firms with low-growth opportunities than those with high-growth opportunities but concluded a positive relationship between debt financing and investment in firms with mid growth opportunities. Moreover, the relationship between scale of investment and debt financing was found to be positive for state-owned holding companies while negative for non-state-owned holding companies (Jiming, Chengqin, ZhaoHua, 2010). The authors ignore the importance of other estimation techniques otherwise they could propose different results if different estimation techniques were put in use like GMM and MLE to confirm the significance of their results. In the Meanwhile, Yuan and Motohashi (2011) analyze the impact of total debt ratios and bank loan ratio on fixed investment of Chinese listed companies in the year 2001-2006 under the influence of general investment theory. They derive similar results by confirming a negative relationship between total debt ratio (bank loan ratio) and fixed investment by the companies listed on Chinese stock market. Furthermore, firms with a higher Tobins Q and large cash flow ratio make a large amount of investment. Their results support the findings of research studies conducted by Main and Ismail (2008) and Jiming et al. (2010) that the total debt rat io (bank loan ratio) has a strong negative impact on investment of firms having low cash flow and tobins q ratio. They argue that the total debt ratio works as a factor that controls excessive fixed investment of the firms listed on Chinese stock exchange. They also conclude that the restraining impact of the bank loan ratio on overinvestment is greater than the effect of total debt ratio on overinvestment in Chinese listed firms showing consistency with the research findings of AL-Shubiri (2012). The authors pay no attention towards the use of other debt and investment proxies in order to assure and optimize the validity and generalisability of the research findings while designing theoretical framework of the study. Most of the research studies conducted in different part of the world has provided similar evidence on leverage and investment relationship. In this regard Aivazian, Ge, Qui (2005) also scrutinize the influence of debt financing on companies investment decisions by incorporating data of 863 companies from Canadian publicly traded firms between 1982-1999, and derives same result by stating a negative relationship between leverage and investment and that negative impact is found to be weaker for the companies with high-growth opportunities but stronger for the companies with low-growth opportunities. The same and results are also recently provided and supported by (AL-Shubiri, 2012; Jiming et al., 2010). The author could optimize the robustness of the research findings if other important explanatory variables are added to the investment function. While dropping out important variables, the author has left an open door for criticism. Following Main and ismail (2008) research work, Frank Huyghebaert (2008) conducts a research work in the same year by focusing on the underlying effect of financial leverage on investment while putting an emphasis on the utilization of some of the particular features of private companies to study the negative re lationship between debt financing and investment and to know why companies with more debt makes lesser investments. For this purpose data from Belfirst database is incorporated containing a sample of 12,289 private firms from 1996-2005 that are located in Flanders and the most developed region of the Belgium. By using two-stage least square data analysis technique, they conclude slight different result by stating that the companies with higher tobins q and debt ratio are more likely to underinvest. They derive that the negative relation between leverage and investment at a high debt ratio is significantly lower for the companies that are old. The sample size of the study is big enough to be divided into public firms as well but the authors show negligence towards the generalisability of their research findings. This would have certainly increased the confident of other researchers in their research findings. During the same year, Odit and Chittoo (2008) publish a research paper t hat primarily focuses on the leverage and investment relationship. They attempt to study the impact of leverage financing on investment levels by employing firm level panel data of 27 companies from the year 1990-2004 listed on Mauritius stock market under the same influence of underinvestment and overinvestment theory which is used by prior research studies. Their results come in line with the conclusions derived by Aivazain et al. (2005) that leverage has a significant negative impact on investment. They added that capital structure plays a vital role in the companies investment policies. They experience a negative relationship between leverage and investment for low-growth companies and not for high-growth companies i.e. the results of the negative relationship between leverage and investment are not statistically significant for the companies with high-growth opportunities while remain insignificant for the companies with low-growth opportunities. The sample size selected by aut hors is small enough to claim the robustness of their findings. The authors are not clear enough as to what data analysis technique is used for the analysis of the panel data. The authors could use pooled regression for the analysis of panel data in order to maximize accuracy of the research findings. In the beginning of the year, Ahn, Denis, Denis (2006) conduct a research study on the same topic who use US Compustat data base containing a sample of 8,674 diversified firms and 24,400 segments from 1982-1997. They conclude that the negative relationship between leverage and investment is significantly greater for segments with high-growth opportunities than that of segments with low-growth opportunities within diversified companies. Moreover, their findings suggest that higher debts put a strong constraint on investment in the segments with high-growth opportunities than in the segments with low-growth opportunities. The authors suggest that the negative relationship between lev erage and investment exists only for the firms with high growth opportunities while contradicting the work of (Aivazain et al., 2005; Yuan Motohashi, 2011). They also explain that debt ratio has a great impact on management decisions regarding investment and argue that diversified firms can prevail over the limitations of debt ratio with the help of distribution of liabilities by corporate managers. The authors could triangulate in terms of applying multiple regression techniques such as a pooled regression could be another robust alternative to cross-sectional regression that would provide distinct results on the leverage and investment relationship in diversified firms. The thirst and curiosity for research on the relationship between leverage and investment continues in Asia as well. In this regard Firth, Lin, Wong (2008), also examine the relationship between leverage and investment made by the firms listed on Chinese stock market, where corporate debts are mainly supplied by state-owned banks. They employ data from china stock market and Accounting Research Database (CSMAR) which consist of 1200 listed firms from 1991-2004, thereby applying fixed effect models and the investment equation, following Aivazian et al. (2005) to inspect the impact of bank loans on companys investment. Their findings suggest an inverse (negative) relationship between leverage and firms investment. That negative impact of leverage on investment is found to be weaker for the firms with low-growth opportunities than that of the firms with high-growth opportunities. They also derive a slightly negative relationship between leverage and investment for the firms with higher level of state share holding but conclude a strong relationship between leverage and investment for the firms having low amount of state share holding. The authors provide a very weak explanation of their research findings. They fail to relate their results to the proposed theoretical frame work while showing lack of appropriateness of their research methodology. The increasing demand and dependency on loan capital in the modern economies has created serious economical threats for most of the countries especially under developing countries like Pakistan. In this regard Qureshi and Ali (2010) recently publish a research paper who analyzes the effect of high public debt load on the economy of Pakistan. They collected data from the World Development Indicators 2010 and Pakistan economic survey from 1981-2008, applied the method of ordinary least square (OLS). Their findings suggest that there is a strong negative impact of public debt on the economy of Pakistan and that negative effect of debts on Pakistans economic development is relatively significant because of the continuous borrowings of the government. They added that this rapid increase in public debts has adversely affected most of the economical sectors of Pakistan. The authors could have betterly explained the growing effect o f leverage on economy if other economic exogenous variables are used along Gross domestic product (GDP). The authors could have done a better job if the robustness of findings is tested by other methods like MLE and GMM. The awareness of debt financing is really essential in modern time for every sector of the economy whether financial or non-financial due to the requirement and immense use of leverage in the capital structure .To overcome such challenges; recently Bao (2010) examines the impact of financial leverage on firms investment listed on Chinese stock market. The data from 1992 to 2009 used in this research study is collected from the financial statements of 1686 companies listed on Chinese stock exchanges i.e. Shenzhen and Shanghai stock exchange. He provides that there is a significant confidence that the relationship between debt financing (leverage) and companies investment is negative, suggesting similar results like that of (Ahn et al., 2006; Lang et al., 1996) res earch work. The findings provided by the author might be misleading because financial data is not abnormality free and the use of ordinary least square method may not provide the accurate results. Therefore, it would be of much importance if other methods like GMM and MLE are used to certainly to assure the robustness of their research findings. The need to study leverage and investment relationship is also showed up in India. Due to that reason John and Muthusamy (2011) analyze the impact of financial leverage on investment by Indian pharmaceutical firms listed on Bombay stock market during the year 1998-2009 but conclude slightly different results from prior research studies, stating that there is a positive relationship between leverage and the level of investment and add that this positive effect is found to be stronger for firms which are smaller in size but it has negative impact on medium sized firms and positive effect on large sized companies which is not statistically s ignificant. The sample size used in this study by the authors is small enough to claim generalisability. The authors could have increased their study sample size representing all pharmaceutical companies. Furthermore, Norvaisiene, Stankeviciene, Krusinskas (2008) examine the impact of loan capital (debt) on investment and growth of Baltic firms using the data of 76 non-financial listed Baltic companies over the period of 2000 to 2006. Their results provide evidence on the effect of overinvestment problem in Latvian companies but states underinvestment problem in Lithuanian and Estonian firms. He added that Baltic companies with high growth opportunities have a significant effect of debt constraints on their investment decisions, whereas there is no effect of debt constraints on investment policy of Baltic companies with low growth opportunities. The authors dont provide sufficient evidence on debt and investment relationship and showed less clarity among their research findings. The authors could have derived more accurate results if other investment variables were used in the model to enhance the generalisability of their research findings. The authors could also triangulate by using multivariant regression model, thereby comparing the results of both method then choosing the one showing more robustness. During the same year Carrascal and Ferrando (2008) also study the effect of financial position on firms investment decision using a sample of 120000 non-financial companies listed in Belgium, Germany, France, Italy, Netherlands and Spain which is collected from the AMADEUS database. Their findings indicate variability in the investment among European firms and illustrate that companies in Germany have lower effect of debts on investment decisions than that of those Italian and Dutch companies. Moreover, their results have shown that there is a negative relationship between debt and investment but there is a positive impact of cash flow on investment. S ince the financial position is proxied by the authors using some ratios, the results might be misleading to claim their generalisability. The author could have emphasized on the inclusion of different other proxy variables such as liquidity, profitability, operating and investment ratios to improve the accuracy of their research findings. RESEARCH METHODOLOGY Literature review on leverage and investment relationship has provided me a solid base and given me a clear understanding of leverage and investment management. It has provided us the results and conclusions of all those research studies that are previously conducted on same topic of interest in different countries having distinct financial aspects. On the basis of those prior research studies, I have designed and developed research methodology for this study accordingly. In prior research studies, the debt ratio was found to have a significant effect on fixed investment made by the firms. The impact of debt ratio on fixed investment was checked under different investment proxy variables such as market-to-book ratios of assets, market-to-book ratio of equity and earnings-price ratio in previous studies. Our study focuses on the use of fixed asset as a proxy for fixed investment and to study its relationship with debt ratio. For this purpose we have adopted Ordinary Least Square Estimation method to study the empirical relationship between debt ratio and investment. Model specification: Investment i = ÃÆ'Ã… ½Ãƒâ€šÃ‚ ± + ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²1 (Debt i) +ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²2 (Equity i) +ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²2 (Cash flow i) + ÃÆ'Ã… ½Ãƒâ€šÃ‚ µi Where Investment i = Fixed investment (fixed assets) of Company i at time t Debt i = Total debt ratio (total liabilities/total assets of Company i at time t Cash flow i: Cash flow of Company i at time t Equity i: Share holders equity of company i at time t ÃÆ'Ã… ½Ãƒâ€šÃ‚ ± = Intercept of regression line which is the value of Investment when all explanatory variables = 0 ÃÆ'Ã… ½Ãƒâ€šÃ‚ ² = Slope of regression line which shows change in Investment for a unit change in explanatory variables ÃÆ'Ã… ½Ãƒâ€šÃ‚ µi = Regression residual The total debt ratio has also been used as a proxy variable for the measurement of financial leverage in preceding studies of AL-Shubiri (2012) and Main and Ismail (2008). Aivazian et al. (2005) and John and Muthusamy (2011) have used total fixed assets as proxy variable for firms fixed investment. Whereas, the firm growth and profitability is measured by two other proxy variables such as cash flow ratio and Equity as in accord with th e research work of Firth et al. (2012) and Firth et al. (2008). The stated model expresses the impact of three independent variables (Leverage, Equity, Cash flow) on one dependent variable (Investment), referring towards the relevance of the study. This study aims to quantify the leverage and investment relationship. For this purpose Independent variable Leverage is proxied by Total debt ratio (Total liabilities/total assets). Equity is also added to investment equation as an independent variable which shows the investment capital of the share holders in the company that is used as a controlling variable to check the varied effect of leverage on investment made by the firms having different amount of invested capital. Cash flow is proxied by cash flow ratio (operating cash flow capital expenditure/operating cash flow) and added as an independent control variable to investment equation. According to AL-Shubiri (2012) increase in debt ratio has negative impact on investment, and this negative impact exists for the firms having low amount of share holders equity, whereas firms with higher Cash flow and equity have sufficient internal funds and show more tendency towards large investments. As we can see that firms relying more on leverage, will certainly increase the amount of total liabilities in debt ratio (total liabilities/total assets), thereby increasing the risk exposure of the firm. Such conditions become more severe when the firms have low cash flow and equity, and show more dependency on loan capital. DATA ANALYSES In this study, I use data of 2008 of non-financial companies of textile sectors firms listed on Karachi stock exchange. Correlation between Variables Year Index Fixed_Invest Debt_ratio Cashflow_ratio Equity 2008 Fixed_invest 1 -.201 .511 .401 Debt_ratio -.201 1 -.256 -.221 Cashflow_ratio .511 -.256 1 .315 Equity .401 -.221 .315 1 Table 1 The correlation table given above shows the correlations between all the variables used in this study. We can see clearly that the debt ratio (independent variable) is negatively correlated with the fixed investment (dependent variable) of the firms. The same correlation between fixed investment and debt ratio was also documented by AL-Shubiri (2012) and Main Ismail (2008) in their research studies. The above results also confirm minimal/low correlation among explanatory variables, indicating absence of multicollinearity problem, assuring the validity of estimation results. Regression Analysis of Investment equation Year Variable Coefficient(ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²) Standard Error t-ratio p-value Adj R2 2008 Constant (ÃÆ'Ã… ½Ãƒâ€šÃ‚ ±) 10.217 .037 27.51 0.00001 0.041 Debt_ratio -1.172 .548 -2.136 0.0120 Investment = 10.217-1.172 (Debt_ratio) Constant (ÃÆ'Ã… ½Ãƒâ€šÃ‚ ±) 8.901 0.468 18.98 0.00001 0.174 Debt_ratio -0.690 0.525 -1.317 0.031 Equity 0.402 0.097 4.13 0.00006 Investment = 8.90 0.690(Debt_ratio) + 0.402 (Equity) Constant (ÃÆ'Ã… ½Ãƒâ€šÃ‚ ±) 8.364 0.439 19.03 0.00001 0.326 Debt_ratio -0.211 0.486 -0.433 0.048 Equity 0.280 0.091 3.071 0.003 Cashflow_ratio 0.441 0.090 4.889 0.00001 Investment = 8.364 0.211(Debt_ratio) + 0.280(Equity) + 0.441(Cashflow_ratio) Table 2 Table 2 shows the results of regression analysis of endogenous and exogenous variables. It summarizes the estimation results of the relationship between leverage and investment with the help of basic model of investment equation. The above results of table 2 show that the effect of leverage on fixed investment is a significantly negative at 5% significance level. The leverage ratio continues to show its inverse relationship with fixed investment even with the addition of new variable that is Equity. But one thing is certain that the impact of leverage on investment started to decrease with inclusion of shareholders equity, indicating that firms with higher equity are affected less than those with low equity, and the same decrease in leverage was also advocated by Main Ismail (2008). The impact of leverage on investment is also found when another explanatory variable cash flow is added to investment equation but again leverage declines to 0.211 from 0.690 when cash flow variable is added to the model. This shows that those companies who have higher cash flow turnover ratio are less likely to be affected by debts. Since the impact of debt ratio remains on investment even with the inclusion of cash flow ratio therefore, we can conclude that t he impact of leverage on investment exists in textile sector of Pakistan. CONCLUSIONS: In this study we examine whether the effect of debt on fixed investment exists in textile sector of Pakistan. Then focus our attention on whether the relationship between debt ratio and investment exists when it is proxied by fixed assets of the firm. The key regression estimation results are summarized above. Firstly we find that there is a relationship between debt ratio and investment when it proxied by the fixed assets of the firms in textile sector of Pakistan. We find that the debt ratio does have a negative impact on the investment when it is proxied by the fixed assets of the firms. Secondly, we find that the negative impact of leverage on investment continues even with the inclusion of equity variable, but the adverse effect of leverage decline when equity is added to the investment equation. Thirdly and lastly, when we add cash flow ratio as another control variable to the model, the negative impact of leverage on investment is observed but that negative effect of leve rage is declined significantly to a great extent. This decline in the adverse impact of leverage shows that companies with large equity and cash flows are less likely to be affected by the adverse effect of debts. These results are consistent with the recent research work of AL-Shubiri (2012) as well as Yuan and Motohashi (2011). The results of our analysis suggest that in textile sector of Pakistan, the debt ratio works as a factor that restrains excessive fixed investment by the companies. The most important finding in our analysis, we found that impact of debt ratio on fixed investment when it is proxied by Fixed assets of firms is not as strong as indicated in prior research studies. Therefore, it is necessary as an important recommendation for future researches to use other relevant proxies for fixed investment and use of other explanatory variables such as Tobins q and price-earnings ratio etc as proxies for companies performance in order to maximize the validity and genera lisability of present research findings. Based upon the above mentioned findings, we suggest that the investors and all business policy makers should consider debt ratios and financial leverages while assessing the usefulness of investment decisions. Therefore, we suggest that the relationship between debt ratio and fixed investment should be analyzed in different sectors of Pakistan with the use of different other relevant investment proxies.

Claude Mckay s Influence On American Culture - 1266 Words

Literature is a big part of all cultures. People acquire a vast amount of information from what is being read. The way they are written and the people who wrote them can change the manner in which values are being seen. Every culture and race is unique it includes language, art, rituals, beliefs plus a great deal more. With all the different race and cultures in the country, it has shaped the American perception and identity. When a person of a certain ethnic background, gender, sexual preference, even religious view writes it is only natural for their heritage, culture and racial influence to be present. This is what makes the work powerful. As in that of Claude McKay, because of him being an African American writer his work offers a new method of considering and appreciating what it entailed to be of a certain race or gender. Showing how culture and race affect the overall meaning in his writing. Claude McKay’s poems reflect on American culture during a specific time in history, known as Harlem Renaissance. A time where racism was predominately a way of living for many, this was a beneficial time in history for African Americans. Bringing blacks together in a new movement that had not been present in America. Development in which blacks emphasized themselves by taking on their racial identity. It was a time period in which the black community helped each other to be able to express themselves as who they truly are, creating a true African American visual doing soShow MoreRelatedBlack Empowerment By Maya Angelou And Claude Mckay921 Words   |  4 Pages Black empowerment in my opinion is the uplifting of African Americans to achieve a greater purpose in life, while enhancing the black community as a whole. Black empowerment can be achieved in many ways, such as influences from musical artists as well as popular actors and actresses. They become major influences based on their celebrity status. Numerous people in our society disregard the influence that literature impacts our culture, especially in earlier time periods. A reason for this is possiblyRead MoreEssay on Journey to the Harlem Renaissance1282 Words   |  6 Pagesof freedom for African Americans. It showed blacks that they were becoming equals in American society. The talents of African Americans soared in art, music, literature and especially poetry. The main writers embodying the Harlem Renaissance were Claude McKay, Langston Hughes and Countee Cullen. Claude was born in Jamaica, in 1898. He got his education from his older brother, who â€Å"possessed a library of English novels, poetry and scientific texts.† (Callahan, 784) Claude was a little older whenRead MorePoetrys Influences on the Harlem Renaissance2031 Words   |  9 PagesEnglish 11 15 May 2013 Poetry’s influence on racial equality Racial equality has been the topic of many works for centuries. Many of those works weren’t written by those actually affected by inequality. During the 1920’s African Americans began to express their opinions on the issue more frequently through the arts. Poetry was among the most prominent forms of art used for spreading equality and justice. Poets like Langston Hughes, Countee Cullen, and Claude McKay wrote many poems that spoke on equalityRead MoreHarlem Renaissance Essay1069 Words   |  5 PagesHARLEM RENAISSANCE Throughout the history of African Americans, there have been important historical figures as well as times. Revered and inspirational leaders and eras like, Martin Luther King and the Civil Rights Movement, Nat Turner and the slave revolt, or Huey Newton and the Black Panther Party. One such period that will always remain a significant part of black art and culture is the Harlem Renaissance. It changed the meaning of art and poetry, as it was known then. Furthermore, theRead More The Harlem Renaissance Essay1031 Words   |  5 PagesHARLEM RENAISSANCE Throughout the history of African Americans, there have been important historical figures as well as times. Revered and inspirational leaders and eras like, Martin Luther King and the Civil Rights Movement, Nat Turner and the slave revolt, or Huey Newton and the Black Panther Party. One such period that will always remain a significant part of black art and culture is the Harlem Renaissance. It changed the meaning of art and poetry, as it was known then. Furthermore, theRead More The Harlem Renaissance: Writers Reacting To Their Political Environment3405 Words   |  14 Pages The Harlem Renaissance emerged during turbulent times for the world, the United States, and black Americans. World War I and the Bolshevik Revolution of 1917 had left the world in disorder and stimulated anticolonial movements throughout the third world. In America, twenty years of progressive reform ended with the red scare, race riots, and isolationism throughout 1919 and led to conservative administra tions through the twenties. While blacks were stunned by racial violence near the end of theRead MoreAfrican American Relationship With The South : A Dual Perspective1204 Words   |  5 PagesAfrican American relationship with the South: a dual perspective Introduction The experiences that African Americans went through, whether in the North or South, played a significant role in shaping their attitude towards the New World. Markedly, they entered into an era of servitude, where they pledged loyalty to the superior white man. Nevertheless, experiences were different; the North treated African Americans in a different way compared to the South. Part of this reason may be the geographicalRead MoreThe Harlem Renaissance, A Social, Cultural, And Artistic Movement1298 Words   |  6 Pagesstarted in Harlem, New York during the 1920’s. Although it is generally considered to span from 1918 to the mid-1930, many of its ideas continue today. â€Å"The Harlem Renaissance was a phase of a larger New Negro movement that had emerged in the early 20th century and in some ways ushered in the civil rights movement of the late 1940’s and early 1950’s† (Thomas, 2017). â€Å"The social foundations of this movement included the Great Migr ation of African Americans from rural to urban spaces and from South toRead More Writers of the Harlem Renaissance Essay2535 Words   |  11 Pagesof the Harlem Renaissance During the 1920?s, a ?flowering of creativity,? as many have called it, began to sweep the nation. The movement, now known as ?The Harlem Renaissance,? caught like wildfire. Harlem, a part of Manhattan in New York City, became a hugely successful showcase for African American talent. Starting with black literature, the Harlem Renaissance quickly grew to incredible proportions. W.E.B. Du Bois, Claude McKay, and Langston Hughes, along with many other writersRead MoreBrief Summary of the Harlem Renaissance.1863 Words   |  8 Pagesfirst time that mainstream publishers and critics took African American literature seriously and that African American literature and arts attracted significant attention from the nation at large. Although it was primarily a literary movement, it was closely related to developments in African American music, theater, art, and politics. BEGINNINGS The Harlem Renaissance emerged amid social and intellectual upheaval in the African American community in the early 20th century. Several factors laid the

Why Law And Ethics Should Be Legal - 1501 Words

People that work with laws every day know that it isn’t an exact science. The reason is not that it has a lot of issues or that it is always affected by politics, instead the main reason is the human factor. People end up changing their minds and everyone one makes mistakes at some point. For example, in legal situations the information that is collected could be incorrect or made up. That is the main reason why law and ethics go side by side. Most people want to make the correct decision whenever it comes to something that deals with law and ethics. When people look at something that is illegal, they automatically see it as unethical. However, whenever something is legal people think that it is ethical. Law is a system of rules of human conduct created by society but enforced by public authority. Being able to understand what is right or what is wrong, plus the ability to recognize the difference between them is called ethics. To have a successful business, employers need to have intensive ethical values as well as an organizational culture run on a set of ethical principles. As a matter of fact, the ethical issue is very important because it could certainly affect stakeholders who are interested in the company. Furthermore, if an organization has high values in terms of ethics, the impression that the stakeholder obtains will be the key in building a trust relationship convincing them stay in the organization longer. Finally, to gain a good reputation in society it isShow MoreRelatedThe Integration Of Law And Ethics945 Words   |  4 PagesAs the subject title indicates, Substantive ethics is about the integration of law and ethics in corporate ethics programs. The author of this article gives numerous examples of why integration of law and ethics is needed. 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Half of the group decided to research the reasons of why euthanasia should be legal, while the otherRead MorePaul And Elder s Mini- Guide : Understanding The Foundations Of Ethical Reasoning Essay1066 Words   |  5 Pagesthe concept of ethics and how it can often create confusion by their counterfeits, such as the domains of social conventions, ideological thinking, and legal thinking. On numerous of occasions ethics is being confused with the very different modes of thinking. Paul and Elder conclude by clarifying, it is essential, to differentiate ethics from other modes of thinking. Ethics essentially provides us the true distinction between what is morally right and what is morally wrong. Ethics is the scienceRead MoreLegal Ethical Environment of Business1025 Words   |  5 PagesLegal amp; Ethical Environment of Business DATE: 2/4/2013 Week 1 Assignment PART 1: Follow the link below, read the article and analyze the practice of â€Å"dumping† dangerous drugs overseas. 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Finally, the researcher will provide a course of actions to deal with the difference in ethical and legal practices when transacting business with a country thatRead MoreThe Conceptual Frameworks Of Ethics And Systems Leadership1375 Words   |  6 Pages(2015), ethics is the study of what an individual s conduct and actions should be with regard to self, others, and the environment. The goal of nursing is to work for the good of the patient and is viewed as an ethical practice. Each day, nurses, and leaders are faced with ethical, moral, and legal challenges. One of the most powerful ways to promote ethics in healthcare is to role model ethical performance in the leadership levels. A leader s awareness of the ethical constructs of ethics, moralRead MoreChapter 1 Essay1002 Words   |  5 Pagesareas where health care practitioners can gain insight through studying law and ethics. The three areas are the rights, responsibilities, and concerns of health care con summers. The legal and ethical issues facing society, patients, and health care practitioners as the world changes. The impact of rising cost on the laws and ethics of healthcare delivery. 2. Define summary judgment. Summary judgment is the legal term for a decision made by court in a lawsuit in response to a motion thatRead MoreThe Ethics And Laws Of Healthcare1234 Words   |  5 Pagesthat we act in a way that is ethical, legal, and commendable. Medical professionals struggle with healthcare dilemmas that are not experienced by the general public. Medical-ethical decisions have become increasingly complicated with the advancement of medical science and technology. (Fremgen) Just like the government has laws for citizens, not having laws in healthcare would allow people to do anything they want. It is important that we study the ethics and laws of healthcare, because if we were put

Comparison of Vultures and Not my Business Essay Example For Students

Comparison of Vultures and Not my Business Essay In the poem vultures the poet talks about how strange it is that love can exist in places we never thought possible. In the poem Not My Business the narrator describes how various people in his village are mistreated he is not affected by this until they come for him. Both poems are written by Nigerian poets and are set in Africa. However in both case Africa is merely a place and this even could occur anywhere. Likewise both poems protest how humans beings treat each other, but they d this in different ways using different techniques such as structure, vocabulary and poetic devices. The poem vultures is written in free verse and consists of mostly short lines this was done so we read the poem slowly therefore appreciating its dark gloomy atmosphere. The poem not my business is split into four different stanzas each one specially written for each occurrence. At the end of each stanza there is a refrain this repetition is used to show that it is an instinctive response he doesnt want to think about it. The last there isnt the usually words its his turn. His voice has been silenced. The poets shows that turning a blind an eye will not make a problem go away and just because something doesnt affect you should do anything about it. Simile is used to emphasize the brutality his friends go through Beating him softly like clay. This shows how violent the beating is which makes us imagine Akanni as a puppet with no feelings or emotions which is quite the opposite as her is a human just like me or you. The fact the narrator chooses to tells us his friends name makes us feel close to him and when we hear that he has been brutally beaten makes us resent the narrator for just standing back and watching. During the poem the jeep is likened to a wild animal the jeep was waiting in my bewildered lawn. The personification of the lawn shows how the narrator is frightened and confused. The fourth stanza is different. In this instance, the Jeep has turned up at the house of the narrator; it is his or her turn to be dragged away. The repeated lines from the previous stanzas cannot feature now as there is, apparently, no one left to observe the injustice. The only reaction here is that of the lawn, which is personified as bewildered. In the fourth section of Vultures, the poet again uses metaphors: the evil Commandant is an ogre (line 43) with merely a spark of love a tiny glow-worm tenderness (line 44) in the icy caverns of a cruel heart (line 46). These are fairly clichi d images, perhaps because Achebe wanted to suggest that what he is describing is nothing new: there will always be love and evil in the world. Both poems protest how human being treat each other. Vultures its about good and evil living side by side inside of one person. Why does the world see one person as either good or bad? Such as the reference to the German Commandant who gassed people by day in the concentration camps and then stopped for chocolate for his child on the way home. I think this poem shows that good and bad resides inside every person, and that they can surprise you. In Not my business the poet and the narrator voices are different. He has used an argument with which he does not agree, to make his readers create their own argument against it; thus, we agree with him by disagreeing with the point of view he has shown us.

The Issue of the Free Will

Many philosophers argue the issue of the free will and there is no particular opinion about the circumstances which guide people in their decisions. Defining hard determinism, it should be stated that this notion is connected with both determinism and the impossibility of the free will. Thus, hard determinism should be viewed as the item which rejects free will and supports the idea that all the choices are made only under the impact of the particular circumstances and ca never occur without their presence.Advertising We will write a custom essay sample on The Issue of the Free Will specifically for you for only $16.05 $11/page Learn More Hard determinism is opposed to incompatibilism which supports the idea that the universe is at odds and people can make choices of their own as they want, in other words incompatibilism support the idea of free will. Therefore, there are two specific ideas in the relation to free will, hard determinism and incompatibili sm opposite to each other. The supporters of any have strict arguments as they believe which may be easily ruined by another side. The supporters of the hard determinism have a lot of arguments in the favor of their idea. First of all, it should be mentioned that everything in this world is made for a particular reason and is based on the issue of necessity. Thus, when people make decisions they usually apply to the arguments of the necessity and it does not give them an opportunity to make their choices independent. Furthermore, the supported of hard determinism are sure that God is aware of all human actions and the choice is already made. People just follow the existing path to achieve their purposes. Additionally, when people make choices they usually base them on something. It may be either their personal decisions or the decisions based on other circumstances which do not depend on them. Basing the choice on the outside circumstances people do not express free will as well as the basis on the personal considerations as in this case people also base their decision on something which may not be an absolute free will. There are several objections to the hard determinism, however, there is one which is hard to contradict. It is possible to give the arguments about the reasons of the choice after the choice has been made. Thus, a person makes a choice and this choice may be free, however, after it, it is possible to analyze the situation, to combine the circumstances and find out that the choice was dependant. This is the common situation which cannot be solved. On the one hand, the opponents of the hard determinism state that free will exists and people do not base their own decisions on anything, however, it is possible to say that the decision was based on nothing, but this is not true.Advertising Looking for essay on philosophy? Let's see if we can help you! Get your first paper with 15% OFF Learn More Thus, the main idea of the objection is when people make choices they do not think about anything but for their personal will and desire and all the further contradictions are based on the analysis of the already made decision and it is more the evaluation of the done actions than the support of the hard determinism theory. Trying to contradict this objection, it is possible to refer to Aquinas’s theory based on the based on the possibility and necessity. Aquinas’s theory is based on the following ideas, all the objects may possibly exist and may possibly not exist as well as they are either necessary or not. The issue of the necessity of the things is explained as follows, if things exist they are necessarily based on the necessity for others. If things are not necessary, they do not exist. This theory is the proof that God exists and that God is the entire necessity, but in our case it is possible to take for granted the idea of God’s existence and in this case we can state that the objection of th e hard determinism is just the failure to accept that there is no another idea except for hard determinism. If ideas exist and the choices are made, they are based on something. It is impossible to construct ideas out of nothing and for nothing. People usually base their decisions and choices on some particular consideration. Thus, they are dependant on these considerations and this is not a free will, this is the dependency. To make sure that the situation is considered in detail, it is important to state an example. Let’s make an assumption that a person wants to go to the cinema. Thus, a persona makes a decision to go to the cinema. Choosing such an entertainment people may say that they are guided by the personal will, however this is not true as people are social being and they need entertainments. Thus, it may be predicted that the choice of going to the cinema is based on the social needs of people they are unable to control. This is not the free will. Therefore, any o bjections to the hard determinism may be contradicted as people are unable to make choices based on free will. This essay on The Issue of the Free Will was written and submitted by user Ashtyn Y. 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.

breast implants essays

breast implants essays Breast implants, should they be made illegal or kept legal? That is the question. I personally think they should be left legal. I will tell you why, give you facts/statistics, arguments etc. about why I think that breast implants should not be illegal. The results of test and the percentages are all real. Allot of the statistics are from the worlds leading developer and manufacturer of saline and silicone filled breast implants, this is the Mcghan medical corp. In todays society, women can constantly feel the pressure of needing to look their best. Women can develop concerns over their self-image, feeling their breasts are not the right size or shape. A womens breast is fully developed by her twenties. She may have very small under developed breasts or very large breasts that cause back and neck discomfort. Other factors such as pregnancy, nursing, weight loss, age and gravity can take their toll on the appearance of womans breast adding to the concern. Cosmetic breast surgery offers many options of these concerns, with procedures that can sculpt a womans breasts to a more becoming size and shape. Breast enhancement procedures can enlarge and contour the breasts, giving a woman a shapely figure and making her more confident in her appearance. Many women experience a decrease in breast size and shape after pregnancy or with age. Sagging breasts or breast ptosis can be corrected with a breast lift and implants placement, giving firmer and younger looking breasts. Overly large breasts can be embarrassing and can also lead to skin irritation and back, neck and shoulder discomfort. Breast reduction procedures remove excess tissue, skin and fat to reshape and lift the breast. This procedure can greatly benefit women of all ages by relieving discomfort and allowing them to have a more active lifestyle. There are many options available to reconstruct the breast after mastectomy. Using implants or the...