Effects of Global warming on Sea Otter Essay

The effects of global warming are with us, different parts of the world are experiencing catastrophic phenomenon which are directly attributed to the rise in global temperatures. Global warming basically refers to the increase in temperatures on the earth surface over a period of time. It has been established that the global temperatures has risen by almost two degrees centigrade for the last one century. This condition has been attributed to the increase in the green house gas concentrations in the atmosphere. This is directly as a result of human activity which has resulted in the increased emission of the carbon dioxide in the atmosphere. Human activities are largely to blame for the condition that is threatening to change the weather and climatic patterns. This condition if it goes unchecked for some years to come the whole world populations may be wiped out. The effects of this phenomenon are so serious that the lives of all the creatures on earth are at great risk. Global warming has been responsible for the climate and weather changes being experienced in different parts of the world. Temperatures have risen to high levels which have never been witnessed before. Ice is melting leading to rise of sea levels this is causing and will continue to cause displacement to people and animals that live near the sea shores. Cities which have for long time enjoyed closeness to the sea are being submerged. It has been pointed out that in some years to come entire cities along the coastlines may be submerged. This will lead to serious loss of lives, both for people and animals. Properties worth billions will be destroyed as the nature takes its course perhaps as a reaction from the selfish lifestyles of the human beings. The changing patterns of climatic conditions are causing deep problems as some animals species are finding it hard to survive in areas where they have lived for ages . Animals which have largely depended on these conditions for survival have their populations being reduced in a great margin. In all parts of the world extreme weather conditions are being experienced. In some cases temperatures are rising to levels which have never been recorded before whereas some regions in Europe are experiencing extremely cold seasons which are forcing some of the sea animals to migrate to other areas in search for food and better places to live. The mass migration of animal species is impacting negatively on the lives of the humans and other animals. As they move they may lead to more destruction of the environment, this means that the problem that has brought us to this end will be with us for a long time. The changing weather patterns will lead to so many changes in the world; this will include the eating habits of the animals. This has already happened in some parts of the world as some animals are turning to non traditional sources of their food as a mechanism to survive the harsh conditions which are directly related to the global warming. The size of the Artic region is expected to decrease with the possibility of the ocean being free of the summer ice in a period of less than fifty years. The response of the Artic region to this climatic catastrophe has been worrying the scientist as it poses even more serious dangers to the world than what we are experiencing at the moment. There is a possibility of more green house gases being released in to the atmosphere as a result of thawing process of methane and other harmful elements. Releasing of these gases into the air will hasten the global warming leading to more serious problems. The effects of global warming are far reaching; they are affecting every aspect of our lives. Sea otter have not been spared either by this phenomenon which is threatening to wipe out the entire population if these marine mammals in Europe. According to Kruuk Hans the population of the sea otters in Europe has been on a sharp decline due to various reasons where one of the most cited has been global warming exposing these creatures to predators and conditions which are no favorable. (Kruuk H 2006 229) Extreme low temperatures in some parts of Europe have lead to mass migration of sea otters to areas where they are being an easy prone to the predators. As they move around searching for food they are exposing themselves to the wolves’ whales and humans who are hunting them for economic use. Although this has been happening even before, the changing climatic conditions as a result of global warming has greatly contributed to the change in patterns in the lives of these marine creatures which have been known to inhibit cold sea regions. (Pine, S 1993 78) Global warming has led to the increase in diseases some of which were not common in some parts of Europe. These diseases are spreading far and wide in this region causing panic among the populations. This is threatening the lives of people and animals too. Some diseases which were only common in tropical and temperate areas have now found their way into the coldest regions of Europe. Some diseases causing organism have found conducive conditions in areas which in less than half a century could have been described as diseases free zones. Ocean warming and the fall of the Artic ocean ice levels which is a direct effect of globalization have been pointed out as the main cause of the spread of a virus which is causing the death of sea otters. Phocine distemper virus has been identified as the cause of many deaths among these marine creatures in some parts of Europe and America. Scientists have pointed out that sea otters are dying as a result of a syndrome which they were referring to as step syndrome. This is a clear indication of how global warming will affect the lives of all creatures in the earth. It will not spare the innocent animals which largely depend on cool atmosphere for their survival. Global warming if not checked threatens to wipe out entire population of some species. Sea otters population has been on sharp decline due to the threats by human who consider it valuable economically. (Silverstone, V and Silverstone, A 1995) Predators such as whales are now prowling on this tiny sea creature as their traditional sources of food are dwindling due to climatic changes. Global warming is a real threat; lives of many animals are at risk due to this phenomenon. The major forests in the world are shrinking, deserts are expanding and agricultural yields are at the lowest points ever. Immediate actions need to be taken to ensure that this condition is reversed; such efforts will guarantee the lives of animals which are facing extinction and at the same time guarantee human beings a bright future. This can only be done if the governments in different parts of the world especially in Europe and America take action on carbon emission in their countries. Efforts to reduce human activities which lead to emission of green house gases will save the world and its inhabitants. This will go along way in checking the amount of carbon being released in to the atmosphere ultimately checking global warming. Such efforts will ensure that the lives of all animals including the sea otters are safeguarded. Work Cited Pine, S The World of Sea Otter, Vancouver, Greystone Publishers (1993) Silverstone, V and Silverstone, A Sea Otter, Brokefield, Millbrook Press (1995) Kruuk, H Sea Otter, Oxford University Press (2006)

Organization of International Business

Wal-Mart Stores, Inc. was incorporated in 1969 and now is the world’s largest and most successful grocery retailer which was selected as world’s largest company in 2007, by Fortune 500. It has 8,970 stores in 15 countries and total revenue of $421,849 billion (2010). Wal-Mart’s main business strategy is ‘EDLP-Every Day Low Price’ which is the key-point of their success. To accomplish this strategy, they mainly focused on efficiency of distribution structure. They used ‘Cross-docking system’, ‘POS’ system, ‘QR-Quick Response’ System. All those strategies core values are ‘Time’ and ‘Response’.Shorten the time for everything includes distribution, storing, etc directly affected lower the price of goods which could be best response to customer need. In other words, Wal-Mart has been successful since they always managed their time and response to customer. Those points were same for Wal-Mart ’s â€Å"International division† startegy. Their international division wasn’t like these days at the early stage. The international division was centralized so the branches needed to get approval for every action and decision from headquarter in USA.However, this centralization process made whole process slow and it harmed the core value of Wal-Mart. Also, they realized that the system can’t be same in other countries. It needed to be changed and modified in order to fully get into each local market place. By the late 1990’s they started to change their policy for international division. They gave more responsibility to each division so that they don’t have to wait for approval and response from headquarter. By this change, each international divisions could meet their local market’s need more rapidly and effectively.2. Why did the centralization of decisions in Wal-Mart’s international division at headquarters create problems for the company’s different national operations? Has Wal-Mart’s response been appropriate? The headquarter first thought that centralization will help them get into other countries cause the methods and ways they used were already proved in domestic market. The centralization wasn’t that bad when they started because there were not many things to care about. However, by the international division gets bigger, they had to deal with bunch of things from lot of different countries.The headquarter had to consider tons of decisions and problems. Of course the whole process got into arrears. In other word, the headquarter of Wal-Mart was overloaded. This condition was natural because the domestic way couldn’t be fitted same in other countries. Each international division tried their best in order to make maximum profit on their market, and that effort caused lot of things to be approved by headquarter. To solve this problem, Wal-Mart started to decentralize th eir international division. This helped each division to tailor them self more easily for the local customers.They could make decision and take action faster. Also they could response to local customer’s need instantly. I think this decision was pretty appropriate. Headquarter can focus to their main domestic market without waste their energy and international division also can make best result in their local market. 3. Do you think that having an international division is the best structure for managing Wal-Mart’s foreign operations? What problems might arise with this structure? What other structure might work? I think international division is moderate choice for Wal-Mart’s foreign operations.The head quarter can easily replicate the domestic structure to international division so that they don’t struggle from start in new local market. However, I think there could be problems arise with that way. There could be damage to headquarter’s reputatio n they’ve made in domestic market if international division makes mistake or distortion of core value while they try to adjust to local market. It will seriously harm whole Wal-Mart’s name and will affect their sales. For example, while they try to get into Korea, they didn’t know about Korea’s atmosphere and condition.They struggled in Korea for years and finally got out of Korea without getting anything. This mistake damaged Wal-Mart’s name maybe not only in Korea division but also in headquarter. In this case for Wal-Mart, Worldwide Area Structure could worked, too. If they use this structure, the great system they proved in domestic market can be used in all the areas but all the other things can be adjusted to each area’s property. In that way, they can reduce possibility of failure in certain country like Korea or German.4. Conclusion Wal-Mart is one of biggest company in the world and they’re making huge amount of money all ove r the world. There is no doubt that they are successful. But it doesn’t mean that they have nothing to fix or improve. If they want to expand their business, they should make their international division more efficient and effective. That means, sure they should use their great system they have used in domestic market to international division but those strategies are needed to be reformed in each countries. In that way, they might able to make high profit all over the world without struggling from cultural and industry difference.

Can Data Reduce Health Inequalities Health And Social Care Essay

H.O are â€Å" the conditions in which people are born, turn, populate, work and age, including the wellness system † . What is Data? Harmonizing to Webster ‘s lexicon â€Å" Data is factual information ( as measurings or statistics ) used as a footing for concluding, treatment, or computation. † Data is chiefly of two types i.e. Qualitative and Quantitative. Qualitative information is the type of informations that is non given numerically. Hence it ‘s based on people ‘s sentiment and picks. Quantitative informations on the other manus is purely based on numerical values and is subdivided into Discrete ( specific numerical values ) and a Continuous ( any numerical value ) information. Data A ; Health Inequalities: The usage of informations records for wellness of population is nil new ; the earliest survey of a entire population was done by Halley, who, by utilizing informations for the metropolis of Breslau, Germany, for 1687 to 1691, calculated the mean life anticipation at birth. [ 2 ] However it was Aaron Antonovsky, a medical sociologist, who foremost shed visible radiation on the inequality in mortality rates in 1967, which finally lead to the usage of informations to enter wellness inequalities Surveillance of inequalities now is done extensively to supervise alteration and to mensurate the indexs of wellness inequalities among the different strata of any part. With every passing twelvemonth the usage of informations to supervise and control wellness inequalities has become more and more of import. Harmonizing to the 2007 declaration of The Measurement and Evidence Knowledge Network ( MEKN ) of the WHO committee on societal determiners of wellness, â€Å" Action on the societal determiners of wellness to better overall wellness results and cut down wellness unfairnesss will be much more effectual if basic informations systems are in topographic point, nationally and internationally, and there are mechanisms to guarantee that the informations can be understood and applied to develop more effectual intercessions. † [ 3 ] The point to foreground in this declaration is that informations should be understood right and applied affectively for it to do effectual intercessions. So the inquiry is does all this collected informations can be the premier ground for alteration and cut downing wellness inequalities? The simple reply would be that natural informations itself can non convey any alteration but the determinations that are taken after treating that informations are the chief agents of alteration. Management of Datas: Datas in itself is merely a aggregation of natural Numberss or characters. The information collected has to be converted into feasible information in order for it to be utile. Here the inquiry arises what the difference is between informations and information? Beynon-Davies used the construct of a mark to separate between informations and information. Datas are symbols while information occurs when symbols are used to mention to something. [ 4 ] It is people and computing machines who collect informations and enforce forms on it. These forms are seen as information which can used to heighten cognition. [ 5 ] Thus cognition is the aggregation of information that is stored or memorized with the purpose of doing it utile. For any cognition to go utile it must be analyzed and interpreted. The procedure of understanding the cognition that we have and utilizing it to synthesise new cognition is called ‘understanding ‘ . The apprehension is converted into wisdom when we exercise our innate human nature of morality and moralss. Therefore with the aid of apprehension and the ability to judge right from incorrect the information is eventually converted into wisdom. This transition of natural informations into wisdom is called the Data-Information-Knowledge-Wisdom hierarchy. ( Fig 1 Appendix ) Another method by which information is managed is the simple informations surveillance rhythm ( Fig 2 Appendix ) . In this rhythm the collected information is analyzed and synthesized and is so organized and stored into a information base. This database so aids policy shapers to move as they deem appropriate. By the survey of informations direction it shows that the determination made at the terminal of the procedure is what determines how efficaciously information has been used and whether information has been successful in conveying about a alteration. This determination doing procedure can be influenced by ambiguity, prejudice, desire for short-cuts, resources available and shortage of attending. Any break during the informations processing rhythm can besides hold negative effects on the determination devising. Data itself has many restrictions. It depends upon truth ; if informations is non accurate it can damage a undertaking alternatively of helping it. Data should besides be complete in all respects i.e. it should supply all expected properties. The consistence of information is besides compulsory i.e. informations should be in sync across the endeavor ; sometimes informations is complete but is inaccurate and inconsistent. Data should besides be auditable i.e. it can be traced back to its beginning and can be verified for genuineness. Last, the most of import facet of informations quality is it timeliness. Datas should be fresh and up to day of the month so the steps and actions taken in response to the informations are appropriate. Examples of Data Surveillance in Curbing Health Inequalities: If we take the illustration of a developing 3rd universe state like Pakistan, so it seems as if informations can non assist cut down or alter anything. Here the inquiry arises that why should we even take the illustration of a underdeveloped state that is bound to neglect in controling inequalities? The ground for this is that Pakistan, even though being a hapless state, gets ample financess for its health care undertakings by donor administrations and other rich states. The international administrations such as WHO closely monitor the statistics of alteration in the wellness of the population of the state. So, with voluminous financess and aid from international administrations the consequence should demo an betterment in the wellness of the population, nevertheless in Pakistan ‘s instance where limited success has been achieved there has besides been failure, which proves that the regular surveillance statistics of WHO are non plenty for accomplishing success. This failure of surveillance can non be blamed wholly upon the gathered statistics but there is a complex process associated with it that plays an of import function in assisting the information be effectual. The Polio Eradication Campaign: In Pakistan the biggest illustration of the success of informations and so its subsequent failure is the national infantile paralysis obliteration thrust. Launched in 1994, 15 old ages after the planetary thrust against infantile paralysis, the infantile paralysis run started with an purpose to to the full eliminate the disease by the new century. Even after the century arrived and a decennary rolled by, Pakistan has been unable to carry through its promise of full obliteration of the disease by 2010. The run suffered from the legion alterations in authorities over clip. When it was launched, the run was fueled by a media blitz of consciousness plans and ads on Television and in newspapers. This caused the hapless, uneducated multitudes to get down accepting and swearing the authorities to let them to immunize their kids. The figure of confirmed instances of infantile paralysis based on acute flaccid palsy surveillance informations from across the state declined from 1155 instances i n 1997 to 28 in 2005 [ 6 ] – the lowest of all time recorded in one twelvemonth ( Fig 3, Appendix ) . A really sensitive nationwide describing system was built up to guarantee the sensing of all staying infantile paralysis instances. The system captures all kids aged less than 15 old ages with acute oncoming flaccid palsy, and includes subsequent research lab testing of stool specimens. [ 6 ] The success was short lived as from 2007 the figure of instances came to a standstill, but there was an addition in figure of reported instances from little territories and states where entire unsusceptibility was achieved ( Fig 4, Appendix ) . In Punjab e.g. there were no reported instances in 2007 ; nevertheless in 2008 more than 8 instances were reported. The biggest reverse to the run is due to the on-going war on panic in Pakistan. In 2008, 2009 and every bit recent as February 2010 the instances reported were all from the Federally Administered Tribal Areas ( FATA ) where the people are highly hapless and uneducated and the next state of N.W.F.P. Two new instances were reported in the past hebdomad both from North West Frontier Province ( NWFP ) , conveying the entire figure of instances for 2010 to ten [ 7 ] . The most recent instance had onset of palsy on 27 February and that excessively was reported in the N.W.F.P. The radical elements in these countries have started a smear run against the infantile paralysis thrust and have warned the people to maneuver clear from immunizing their kids. This includes snatch of the infantile paralysis run workers and warnings of dire effects to the people of the part. [ 8 ] The recent engagement of the National Database and Registration Authority ( NADRA ) in Pakistan to immunize kids against infantile paralysis has met with great success. The NADRA new waves were successful in publishing ID cards to far flung countries and as a consequence of the success the authorities entrusted them with the responsibly of providing vaccinums to remote countries. Equally many as 20,000 kids were vaccinated as a consequence but the NADRA squad was still unsuccessful in embarking to the N.W.F.P and FATA parts. The migration of Afghan nomads into the countries of FATA A ; N.W.F.P is another ground for failure. Poor sanitation and dirty H2O supply in the rural parts of the state can besides be the ground for the failure, as this causes diarrhea which in bend reduces the soaking up of the vaccinum in kids. [ 9 ] On top of these hurdlings the run is besides marred by corruptness including larceny of financess and vaccinums. [ 10 ] The National AIDS Plan: The national AIDS plan in Pakistan is one illustration of truth of informations and how any alteration can be hindered if the information is falsified. Pakistan ‘s Federal Ministry of Health established National AIDS Control Programme ( NACP ) in 1986-87. The state has received over 2.9 billion rupees as support. In its early phases, the programme focused on laboratory diagnosing of suspected HIV instances, but increasingly it began to switch its focal point towards HIV bar and control intercessions. The development of National Strategic Framework-one in 2001 provided strategic vision to the national response and authorities of Pakistan with support from World Bank launched an enhanced response in the signifier of Enhanced HIV and AIDS Control Programme. [ 11 ] HIV was foremost reported in Pakistan in 1987 with the aid contaminated blood transfusions. [ 12 ] The chief bearers of the virus were non resident workers chiefly working in the gulf part who were deported back to Pakis tan in the wake of their diagnosing. [ 13 ] The full fledged outbreak nevertheless occurred in 2004 among the injection drug users ( IDUs ) in distant desert town of Larkana. Between 2003 and 2004 the rate of HIV in IDUs jumped from 0.4 % to an dismaying 7.6 % . Epidemiologic surveies have shown that out of the 100, 00 IDUs life on the streets, about 21 % are infected with HIV virus. [ 11 ] These IDUs do non indulge in the drugs merely for the bang but alternatively comprise of the highly hapless and flush subdivision of the society who are idle and as a consequence become drug users to get away from their problems. Lahore is the 2nd most thickly settled metropolis in Pakistan with over 3000 IDUs of which 4 % have HIV infection. Faisalabad is the 3rd most thickly settled metropolis with over 8000 IDUs of which 13 % have HIV. The most alarming fact is that surveies have found that about 50 % these IDUs are sexually active with their married womans. To do affairs even worse bulk of the married womans of IDUs work as cocottes. [ 14 ] Another demographic involved with the spread of HIV are the female and male sex workers. There are good known whorehouses in the metropolitan metropoliss of the state with up to 100, 000 female sex workers ( FSW ) in Karachi and 75, 000 in Lahore. The authorities organic structures estimate that HIV prevalence among FSW is 0.02 % [ 11 ] which is disputed by independent organic structures who say that it is about 15 % . Research has shown that these FSW have no information about rubbers or other bar methods. Less than half the FSWs in Lahore and about a one-fourth in Karachi had used rubber with their last regular client. In Karachi, one in five sex workers can non acknowledge a rubber, and three-fourthss do non cognize that condoms prevent HIV ( in fact, one tierce have ne’er heard of AIDS. ( UNIADS Update 2005 ) The other demographics for the disease include closeted homosexual work forces and Transvestites moonlighting as sex workers which are estimated to be approximately 3 0 % of the manner of transmittal. Breast eating female parents are another demographic that constitutes about 3 % of the manner of transmittal of the virus. The fist instance of transportation of HIV via chest eating was reported in 1994 in Rawalpindi. Irrespective of all this data the most lurid fact is the disproof and use of the informations by the National AIDS control plan who have estimated that there are about 3,000 instances of HIV in Pakistan since 1986. If we compare these estimations to the astonishing 70-80, 000 instances reported by the UNAIDS, we clearly see that the authorities enterprises are a frontage. This estimation is flooring plenty to ensue in immediate action by the authorities but that is non the instance. In world the authorities is to the lowest degree interested in turn toing the issue of AIDS as a world in Pakistan. This may be due to the fact that the state is a conservative Muslim state and even now issues like HIV A ; AIDS are considered as tabu. In the uneducated and hapless rural sector the disease is still considered as a stigma even though there insecure and closeted sex pattern in these countries. The political determination devising in this issue seems to be influenced by the delicateness of t he issue. The policy shapers are besides bound by the civilization of the state and they can non openly publicize safe sex patterns as this may be unacceptable to the people and the policy shapers do non desire to be seen as excessively broad by the conservative vote population. In the visible radiation of all this the World Bank in December of 2009 refused to further fund the AIDS plan in the state. Decision: The above illustrations show that informations itself can merely make so much. Astonishing and amazing figures may drive person to believe about the job and take some sort of action but the magnitude of that action is dependent upon the apprehension, reading and finally determination of that individual. In the instance of the infantile paralysis consciousness run the above illustration shows that informations can be used to an advantage in doing public change their beliefs and accepting alteration. But on the other manus informations can be useless, even if it is difficult striking, if no action is taken upon it i.e. in the instance of the AIDS run. If the Pakistani authorities wants it can alter the attitude of people towards safe sex pattern via an consciousness run but they choose to stay deaf-and-dumb person on the issue. Policy shapers can utilize informations to their advantage by utilizing the figures and acquiring the populace to believe about the job. Similarly the populace can utilize informations to demand a alteration from the authorities. Not merely determination devising but other societal factors besides stand in the manner of a complete or any success. Purportedly, If the illustration of a 3rd universe state is deemed unequal by person so we can ever take the illustration of Britain where there are beforehand methods of informations surveillance and a immense sum of research and money is being used to control wellness inequalities but a recent authorities study showed that the rates of indexs like life anticipation for adult females and infant mortality are still unchanged. This has prompted the wellness minster Dawn Primarolo to eventually acknowledge, in stead with our statement, that â€Å" wellness inequalities are hard to alter † . Appendix: Fig 1: DIKW Hierarchy Fig 2: Surveillance Cycle Fig 3: Graph 1 ( diminution of infantile paralysis over the old ages ) Fig 4: Graph 2 ( diminution and revival of infantile paralysis in little territories of Pakistan ) Can Data Reduce Health Inequalities Health And Social Care Essay H.O are â€Å" the conditions in which people are born, turn, populate, work and age, including the wellness system † . What is Data? Harmonizing to Webster ‘s lexicon â€Å" Data is factual information ( as measurings or statistics ) used as a footing for concluding, treatment, or computation. † Data is chiefly of two types i.e. Qualitative and Quantitative. Qualitative information is the type of informations that is non given numerically. Hence it ‘s based on people ‘s sentiment and picks. Quantitative informations on the other manus is purely based on numerical values and is subdivided into Discrete ( specific numerical values ) and a Continuous ( any numerical value ) information. Data A ; Health Inequalities: The usage of informations records for wellness of population is nil new ; the earliest survey of a entire population was done by Halley, who, by utilizing informations for the metropolis of Breslau, Germany, for 1687 to 1691, calculated the mean life anticipation at birth. [ 2 ] However it was Aaron Antonovsky, a medical sociologist, who foremost shed visible radiation on the inequality in mortality rates in 1967, which finally lead to the usage of informations to enter wellness inequalities Surveillance of inequalities now is done extensively to supervise alteration and to mensurate the indexs of wellness inequalities among the different strata of any part. With every passing twelvemonth the usage of informations to supervise and control wellness inequalities has become more and more of import. Harmonizing to the 2007 declaration of The Measurement and Evidence Knowledge Network ( MEKN ) of the WHO committee on societal determiners of wellness, â€Å" Action on the societal determiners of wellness to better overall wellness results and cut down wellness unfairnesss will be much more effectual if basic informations systems are in topographic point, nationally and internationally, and there are mechanisms to guarantee that the informations can be understood and applied to develop more effectual intercessions. † [ 3 ] The point to foreground in this declaration is that informations should be understood right and applied affectively for it to do effectual intercessions. So the inquiry is does all this collected informations can be the premier ground for alteration and cut downing wellness inequalities? The simple reply would be that natural informations itself can non convey any alteration but the determinations that are taken after treating that informations are the chief agents of alteration. Management of Datas: Datas in itself is merely a aggregation of natural Numberss or characters. The information collected has to be converted into feasible information in order for it to be utile. Here the inquiry arises what the difference is between informations and information? Beynon-Davies used the construct of a mark to separate between informations and information. Datas are symbols while information occurs when symbols are used to mention to something. [ 4 ] It is people and computing machines who collect informations and enforce forms on it. These forms are seen as information which can used to heighten cognition. [ 5 ] Thus cognition is the aggregation of information that is stored or memorized with the purpose of doing it utile. For any cognition to go utile it must be analyzed and interpreted. The procedure of understanding the cognition that we have and utilizing it to synthesise new cognition is called ‘understanding ‘ . The apprehension is converted into wisdom when we exercise our innate human nature of morality and moralss. Therefore with the aid of apprehension and the ability to judge right from incorrect the information is eventually converted into wisdom. This transition of natural informations into wisdom is called the Data-Information-Knowledge-Wisdom hierarchy. ( Fig 1 Appendix ) Another method by which information is managed is the simple informations surveillance rhythm ( Fig 2 Appendix ) . In this rhythm the collected information is analyzed and synthesized and is so organized and stored into a information base. This database so aids policy shapers to move as they deem appropriate. By the survey of informations direction it shows that the determination made at the terminal of the procedure is what determines how efficaciously information has been used and whether information has been successful in conveying about a alteration. This determination doing procedure can be influenced by ambiguity, prejudice, desire for short-cuts, resources available and shortage of attending. Any break during the informations processing rhythm can besides hold negative effects on the determination devising. Data itself has many restrictions. It depends upon truth ; if informations is non accurate it can damage a undertaking alternatively of helping it. Data should besides be complete in all respects i.e. it should supply all expected properties. The consistence of information is besides compulsory i.e. informations should be in sync across the endeavor ; sometimes informations is complete but is inaccurate and inconsistent. Data should besides be auditable i.e. it can be traced back to its beginning and can be verified for genuineness. Last, the most of import facet of informations quality is it timeliness. Datas should be fresh and up to day of the month so the steps and actions taken in response to the informations are appropriate. Examples of Data Surveillance in Curbing Health Inequalities: If we take the illustration of a developing 3rd universe state like Pakistan, so it seems as if informations can non assist cut down or alter anything. Here the inquiry arises that why should we even take the illustration of a underdeveloped state that is bound to neglect in controling inequalities? The ground for this is that Pakistan, even though being a hapless state, gets ample financess for its health care undertakings by donor administrations and other rich states. The international administrations such as WHO closely monitor the statistics of alteration in the wellness of the population of the state. So, with voluminous financess and aid from international administrations the consequence should demo an betterment in the wellness of the population, nevertheless in Pakistan ‘s instance where limited success has been achieved there has besides been failure, which proves that the regular surveillance statistics of WHO are non plenty for accomplishing success. This failure of surveillance can non be blamed wholly upon the gathered statistics but there is a complex process associated with it that plays an of import function in assisting the information be effectual. The Polio Eradication Campaign: In Pakistan the biggest illustration of the success of informations and so its subsequent failure is the national infantile paralysis obliteration thrust. Launched in 1994, 15 old ages after the planetary thrust against infantile paralysis, the infantile paralysis run started with an purpose to to the full eliminate the disease by the new century. Even after the century arrived and a decennary rolled by, Pakistan has been unable to carry through its promise of full obliteration of the disease by 2010. The run suffered from the legion alterations in authorities over clip. When it was launched, the run was fueled by a media blitz of consciousness plans and ads on Television and in newspapers. This caused the hapless, uneducated multitudes to get down accepting and swearing the authorities to let them to immunize their kids. The figure of confirmed instances of infantile paralysis based on acute flaccid palsy surveillance informations from across the state declined from 1155 instances i n 1997 to 28 in 2005 [ 6 ] – the lowest of all time recorded in one twelvemonth ( Fig 3, Appendix ) . A really sensitive nationwide describing system was built up to guarantee the sensing of all staying infantile paralysis instances. The system captures all kids aged less than 15 old ages with acute oncoming flaccid palsy, and includes subsequent research lab testing of stool specimens. [ 6 ] The success was short lived as from 2007 the figure of instances came to a standstill, but there was an addition in figure of reported instances from little territories and states where entire unsusceptibility was achieved ( Fig 4, Appendix ) . In Punjab e.g. there were no reported instances in 2007 ; nevertheless in 2008 more than 8 instances were reported. The biggest reverse to the run is due to the on-going war on panic in Pakistan. In 2008, 2009 and every bit recent as February 2010 the instances reported were all from the Federally Administered Tribal Areas ( FATA ) where the people are highly hapless and uneducated and the next state of N.W.F.P. Two new instances were reported in the past hebdomad both from North West Frontier Province ( NWFP ) , conveying the entire figure of instances for 2010 to ten [ 7 ] . The most recent instance had onset of palsy on 27 February and that excessively was reported in the N.W.F.P. The radical elements in these countries have started a smear run against the infantile paralysis thrust and have warned the people to maneuver clear from immunizing their kids. This includes snatch of the infantile paralysis run workers and warnings of dire effects to the people of the part. [ 8 ] The recent engagement of the National Database and Registration Authority ( NADRA ) in Pakistan to immunize kids against infantile paralysis has met with great success. The NADRA new waves were successful in publishing ID cards to far flung countries and as a consequence of the success the authorities entrusted them with the responsibly of providing vaccinums to remote countries. Equally many as 20,000 kids were vaccinated as a consequence but the NADRA squad was still unsuccessful in embarking to the N.W.F.P and FATA parts. The migration of Afghan nomads into the countries of FATA A ; N.W.F.P is another ground for failure. Poor sanitation and dirty H2O supply in the rural parts of the state can besides be the ground for the failure, as this causes diarrhea which in bend reduces the soaking up of the vaccinum in kids. [ 9 ] On top of these hurdlings the run is besides marred by corruptness including larceny of financess and vaccinums. [ 10 ] The National AIDS Plan: The national AIDS plan in Pakistan is one illustration of truth of informations and how any alteration can be hindered if the information is falsified. Pakistan ‘s Federal Ministry of Health established National AIDS Control Programme ( NACP ) in 1986-87. The state has received over 2.9 billion rupees as support. In its early phases, the programme focused on laboratory diagnosing of suspected HIV instances, but increasingly it began to switch its focal point towards HIV bar and control intercessions. The development of National Strategic Framework-one in 2001 provided strategic vision to the national response and authorities of Pakistan with support from World Bank launched an enhanced response in the signifier of Enhanced HIV and AIDS Control Programme. [ 11 ] HIV was foremost reported in Pakistan in 1987 with the aid contaminated blood transfusions. [ 12 ] The chief bearers of the virus were non resident workers chiefly working in the gulf part who were deported back to Pakis tan in the wake of their diagnosing. [ 13 ] The full fledged outbreak nevertheless occurred in 2004 among the injection drug users ( IDUs ) in distant desert town of Larkana. Between 2003 and 2004 the rate of HIV in IDUs jumped from 0.4 % to an dismaying 7.6 % . Epidemiologic surveies have shown that out of the 100, 00 IDUs life on the streets, about 21 % are infected with HIV virus. [ 11 ] These IDUs do non indulge in the drugs merely for the bang but alternatively comprise of the highly hapless and flush subdivision of the society who are idle and as a consequence become drug users to get away from their problems. Lahore is the 2nd most thickly settled metropolis in Pakistan with over 3000 IDUs of which 4 % have HIV infection. Faisalabad is the 3rd most thickly settled metropolis with over 8000 IDUs of which 13 % have HIV. The most alarming fact is that surveies have found that about 50 % these IDUs are sexually active with their married womans. To do affairs even worse bulk of the married womans of IDUs work as cocottes. [ 14 ] Another demographic involved with the spread of HIV are the female and male sex workers. There are good known whorehouses in the metropolitan metropoliss of the state with up to 100, 000 female sex workers ( FSW ) in Karachi and 75, 000 in Lahore. The authorities organic structures estimate that HIV prevalence among FSW is 0.02 % [ 11 ] which is disputed by independent organic structures who say that it is about 15 % . Research has shown that these FSW have no information about rubbers or other bar methods. Less than half the FSWs in Lahore and about a one-fourth in Karachi had used rubber with their last regular client. In Karachi, one in five sex workers can non acknowledge a rubber, and three-fourthss do non cognize that condoms prevent HIV ( in fact, one tierce have ne’er heard of AIDS. ( UNIADS Update 2005 ) The other demographics for the disease include closeted homosexual work forces and Transvestites moonlighting as sex workers which are estimated to be approximately 3 0 % of the manner of transmittal. Breast eating female parents are another demographic that constitutes about 3 % of the manner of transmittal of the virus. The fist instance of transportation of HIV via chest eating was reported in 1994 in Rawalpindi. Irrespective of all this data the most lurid fact is the disproof and use of the informations by the National AIDS control plan who have estimated that there are about 3,000 instances of HIV in Pakistan since 1986. If we compare these estimations to the astonishing 70-80, 000 instances reported by the UNAIDS, we clearly see that the authorities enterprises are a frontage. This estimation is flooring plenty to ensue in immediate action by the authorities but that is non the instance. In world the authorities is to the lowest degree interested in turn toing the issue of AIDS as a world in Pakistan. This may be due to the fact that the state is a conservative Muslim state and even now issues like HIV A ; AIDS are considered as tabu. In the uneducated and hapless rural sector the disease is still considered as a stigma even though there insecure and closeted sex pattern in these countries. The political determination devising in this issue seems to be influenced by the delicateness of t he issue. The policy shapers are besides bound by the civilization of the state and they can non openly publicize safe sex patterns as this may be unacceptable to the people and the policy shapers do non desire to be seen as excessively broad by the conservative vote population. In the visible radiation of all this the World Bank in December of 2009 refused to further fund the AIDS plan in the state. Decision: The above illustrations show that informations itself can merely make so much. Astonishing and amazing figures may drive person to believe about the job and take some sort of action but the magnitude of that action is dependent upon the apprehension, reading and finally determination of that individual. In the instance of the infantile paralysis consciousness run the above illustration shows that informations can be used to an advantage in doing public change their beliefs and accepting alteration. But on the other manus informations can be useless, even if it is difficult striking, if no action is taken upon it i.e. in the instance of the AIDS run. If the Pakistani authorities wants it can alter the attitude of people towards safe sex pattern via an consciousness run but they choose to stay deaf-and-dumb person on the issue. Policy shapers can utilize informations to their advantage by utilizing the figures and acquiring the populace to believe about the job. Similarly the populace can utilize informations to demand a alteration from the authorities. Not merely determination devising but other societal factors besides stand in the manner of a complete or any success. Purportedly, If the illustration of a 3rd universe state is deemed unequal by person so we can ever take the illustration of Britain where there are beforehand methods of informations surveillance and a immense sum of research and money is being used to control wellness inequalities but a recent authorities study showed that the rates of indexs like life anticipation for adult females and infant mortality are still unchanged. This has prompted the wellness minster Dawn Primarolo to eventually acknowledge, in stead with our statement, that â€Å" wellness inequalities are hard to alter † . Appendix: Fig 1: DIKW Hierarchy Fig 2: Surveillance Cycle Fig 3: Graph 1 ( diminution of infantile paralysis over the old ages ) Fig 4: Graph 2 ( diminution and revival of infantile paralysis in little territories of Pakistan )

ELL Families and Schools Essay Example | Topics and Well Written Essays - 750 words - 3

ELL Families and Schools - Essay Example Intelligence doesn’t depend upon language. Anyone can face the music and be in hot waters if he/she is tested in a language which is not their mother tongue. Before taking that test they would need to have ‘sufficient’ skills in that particular language to express their intelligence. This is where the misconception starts; people start expecting less of people who can’t or don’t speak English language. ELLs feel shy and reserved as they are usually fully aware that they are not in the list of ‘bright students’ in an English community. Sociocultural experiences can change this course of failure. By engaging with ELLs in a social environment in conversations. Activities or any task at hand can significantly help them overcome their hesitation and they can make it a fun activity to learn to communicate in English language. This is not merely a thought nugget, research done by Genzuk (1999) states that funds of knowledge are constituted through events and activities. Events and various activities actually let ELL to open up and feel part of something, instead of being lab rats in school where they are put under different tests and evaluated. Leighton (1995) takes a deeper look into the processes involved and discusses context, professional education, teacher’s selection, specific designs in implementation. Conclusion of this research is that many factors contribute towards better (more importantly effective) education of ELLs, a number of which include federal support, local education agencies and higher education institutes. Research on bilingualism shows that teaching someone to be bilingual requires dedication and motivation. There are principles of practice and certain philosophies that govern bilingual teaching and learning. Home language use is the key principle in governing or learning two languages. It

Product Assessment Essay Example | Topics and Well Written Essays - 1250 words - 3

Product Assessment - Essay Example Considering the storage, it can offer a storage space of 5 times greater than the DVD’s. The disc was jointly developed by Blu Ray Disc Association (BDA) with companies that are the leading manufacturers in consumer products and computers. Blu ray uses a blue laser instead of red which is present in DVD’s and CD’s for much greater focus and precision. The concept had also been supported by Hollywood studios and planned to release their movies on blu ray discs instead of DVD’s (Taylor, Zink, Crawford, & Armbrust, 2009). The target market for Blu ray disc are the people who wants to store excessive amount of data or the market that has likes for watching movies in high definition with clear pixels. The corporate are also considered to be their target market considering different Hollywood studio who agreed to release their movies in blu ray discs. The U.S census data highlights that the total penetration of Blu ray devices in United States is 40.8 Billion. The total spending on the blu ray disc in 2012 has been $2.22 Billion (Prange, 2012). In today’s world, technology is changing at a rapid pace and so are the consumer preferences. The company develops a product on the basis of preference for consumers and their interest. However, if a consumer finds right and suitable in adopting a technology which is much cheaper than the current idea then the new technology has chances of failure. Similarly, in the same context consumers preferences are changing and cheaper versions technology is being adopted. The U.S census data reports that the market for blu ray has declined from $2.6 Billion to $2.4 Billion (Edwards, 2012). The main reason being for this change is known to be an economic downturn. The age of digital download has arrived and customers are diverted to these preferences instead of buying a blu ray disc and storing the data. Digital download is a cheaper option and does not require money

Protection of Mail-Order Brides Essay Example | Topics and Well Written Essays - 750 words

Protection of Mail-Order Brides - Essay Example From this study it is clear that there has been an increase in the establishment of mechanisms through which mail-order brides can be protected from husbands who are abusive and fro other dehumanizing arrangements such as human trafficking. Nevertheless, after the mail-order brides enter into their new homes, most of the legal protections lose their impact as a result of the marriage’s private nature as a domestic realm and the inability of the brides to navigate the landscape of their new homes, which are mostly in foreign an unfamiliar countries. This study discusses that it is important to note that due to the increasing demand of the mail-order wife as a replacement for the local women who have developed a career culture and are deemed as less â€Å"family oriented†, mail-order bride websites have developed advertisement terms that meet the expectations of the subscribers (Kusel, 2014). Nevertheless, upon interaction with the foreign culture, after marriage, such women get oriented to the foreign culture and thus tend to develop contrasting views with those of their husband concerning gender roles. This is an aspect that leads to increased disagreements and subjects the women to the increased risk of domestic violence. In addition, most of the websites that advertise such women tend to use attractive pictures that portray them as sex commodities. This exposes such women to men who pose as husbands yet they end up enslaving them sexually and abusing them upon marriage. As such, it is clear that most of the women who p ursue a better life through seeking husbands via the mail-order bride sites are commoditized as sex toys and subjected to abuse amidst legislations that are aimed at protecting them. Various countries have developed legislation to protect mail-order brides and other immigrants who are at risk of exploitation.  

Pride And Prejudice- Enduring Appeal Essay Example | Topics and Well Written Essays - 1500 words

Pride And Prejudice- Enduring Appeal - Essay Example According to Lilian Robinson the 'great subjects' of Pride and Prejudice are 'class, love, money and marriage'. (p. 179) The producer of the television adaptation of this classic feels that 'though it's about many things, it's principally about sex, and it's about money: those are the driving motives of the plot'. (p. v) Sir Walter Scott commented in 1827, Also read again, and for the third time at least, Miss Austen's very finely written novel of Pride and Prejudice. That young lady had a talent for describing the involvements, and feelings, and characters of ordinary life, which is to me the most wonder I ever met with. The Big Bow-wow strain I can do like any now going; but the exquisite touch, which renders ordinary commonplace things and characters interesting, from the truth of the description and the sentiment, is denied to me. (Gilson 475) There are several reasons that account for the enduring charm of this novel. But the main strength of the book lies in its characters that people can easily identify with. Just take away Elizabeth or Darcy from the novel, would it still enjoy the same popularity that it does today, I doubt that. There is something immensely powerful about the way characters have been sketched especially Elizabeth and Darcy. Combined with vibrant characters is the orthodox romance- and together they give us a work that simply refuses to relegate. Elizabeth is a free spirited young woman who hates to be confined by the norms of the society. Miss Bingley at one occasion describes Elizabeth's free spirit as "an abominable sort of conceited independence, a most country town indifference to decorum." (26) Darcy is on the other hand a man with the world at his feet. When such a man falls in love with the otherwise plain looking Lizzy, the world has to sit up and take notice. Isn't this the story we could all relate to with its fairy-tale yet identifiable content Romance has an enduring quality about it and when presented with characters that are both lively and real, you have a deadly combination. That explains why Pride and Prejudice has never failed to attract the audiences in over two centuries. Strong vibrant characters and powerful romance make this work exceptionally outstanding for centuries. According to G.K Chesterton, Jane Austen "knew much more about men" than the Brontes or George Eliot (109). He further claimed that there was "an infallible force to her irony" and a "stunning weight to her understatements" (xv) Having said all that, the fact remains, had it not been for Lizzy's independent spirit and Darcy's arrogance, we wouldn't be obsessing over the enduring appeal of Pride and Prejudice the way we do today. Lizzy was everything that a woman in the 18h century must have hoped to become. She was intelligent and outspoken yet sensitive and loving. Regardless of what some feminist studies might reveal, Lizzy was not a feminist. She was strong and powerful because she was intelligent but she was neither against marriage nor was she above falling in love with men. Another thing that makes her absolutely irresistible is her ordinariness. Lizzy was not beautiful in the traditional sense. But she had her own beauty- beauty that comes from being original. She was a first rate version of herself at all times. Her genuine

The Employment Relationship, Employment Discrimination and Employment Assignment

The Employment Relationship, Employment Discrimination and Employment Regulation - Assignment Example This essay is to build awareness among the readers regarding complex standoffs and dilemmas involved in employment, ignorance from which may lead to harrowing scenarios. Mostly, an employment relationship is a contractual or legal link between employers and employees. All the reciprocal rights, obligations and disciplinary principles decided between employers and workers originate from the foundation of the employment relationship. The existence of an employment liaison is the condition that determines the way labor and social security law provisions addressed to employees can be applied. The importance of this relationship can be judged by the fact that it is the key reflective point for determining the nature and extent of employers rights and obligations towards their workers. With the growing incidents of inconveniences faced by workers all over the globe owing to the ambiguities related to the privacy and termination issues involved in the nature of this relationship, this issue has bagged more and more important in the workplaces. It goes without saying that the root cause of the mounting misunderstandings between employers and employees is th e disguised nature of the employment relationship. The most basic privacy rights of workers that need to be handled carefully include the right to protect the privacy of social security numbers, personnel records, telephonic conversations and the right to disallow listening to all electronic communication systems. Furthermore, many federal and statutory laws emphasize on protecting the privacy of employees’ medical records and information and background screening. Background screening actually identifies different background checks and records that are required by some employers as a part of workers recruiting process. An employer is not allowed to probe endlessly into the worker’s private issues in life. Different state laws and employment legislatures restrict the type of background information.

Prduction Planning and Scheduling Case Study Example | Topics and Well Written Essays - 250 words

Prduction Planning and Scheduling - Case Study Example An organization takes the advantage of planning and scheduling in various instances such as in online campaigning. In this case, an organization narrows down their targeted customers in the market in order to avoid unnecessary cost incurred during marketing and advertising to people not interested in the respective products and services. Creation of a schedule of online ads gives the organization an opportunity to take advantage of price promotions, and also set a budget. According to the Balloons Aloha case study, there are six customer jobs that need to use the helium tank in filling balloons. Therefore, there must be an effective way to sequence the jobs in order to allow a proper sequence order. In the short-term, the six jobs at the company need to have a clear planning and scheduling that allows filling of balloons in a sequential order. The Aloha’s Balloon sequencing system ensures the set six jobs are carried out in an effective manner as per schedule. Jobs are categorized based on processing time, and due dates to prevent collision during the procedure. Therefore, the company must aim at accomplishing long-terms goals by embarking on planning and

Analyse the critical HR actions multinational corporations should take Essay - 1

Analyse the critical HR actions multinational corporations should take to facilitate expatriate adjustment - Essay Example 47) Black and Gregerson (1991) have described expatriate adjustment to foreign assignments as â€Å"the degree of psychological comfort with various aspects of a host country,† (p. 463). This has led to many of the domestic employees being exported into exotic locations and countries with diverse cultures and economic systems. Similarly, local companies lacking appropriate expertise and human resources are increasingly seeking expatriates to operate their expansive production units as well as provide training to the domestic workforce. Experienced labourers in saturated markets also seek employment abroad as they lack employment opportunities within their domestic locations or crave for better remuneration that accompanies foreign assignments (Swarts and Plessis, 2007). Foreign assignments and postings generally prompt exuberant excitement from those employees chosen to undertake such tasks as the prospect of career advancement, finance increments and other benefits beckon. However, these feelings of career windfall quickly wane once they get to the actual locations. The probable causes of the trauma are ‘cultural shock, language barriers, and severance from the relatives’ will ultimately impinge on the work, efficiency and expenses to the organisation. The expatriates’ agitation means that they either adjust to the locality conditions or abscond from the assignment and return to their home countries (Koteswari and Bhattacharya, 2007). The dysfunctional cost of stress in overseas postings may lead to detrimental consequences like, skiving, drunkenness and drug addiction, high turnovers, untimely exit, internal and external antagonism, nonattendance, among others. A study by the University of Pretoria (2008) on expatriate turnovers in foreign postings, principally on their attitude to the jobs revealed that ‘organisational commitment and job

Struggle between good and evil Essay Example for Free

Struggle between good and evil Essay This is similar to Romantic poets as they often wrote about the idealization of nature. Robert Walton experiences the isolation of the North Pole. stretched out in every direction, vast and irregular plains of ice, which seemed to have no end. Shelley has used the isolation of Robert Walton in order for a bond to be created between Robert and Frankenstein. This in time would result in Frankenstein being able to converse and inform Walton about the Monster. Without the isolation of both Robert and Victor they wouldnt be able to relate to one another. Pathetic fallacy is often used in order to create the setting. Suddenly a heavy storm of rain descended. Just after the wedding between Elizabeth and Frankenstein when they are on the boat, Frankenstein becomes anxious and worried about the safety of Elizabeth, this is indicated by the weather. Suspense and mystery are often used in gothic literature. Mary generates a tension, suspense and anxiety before the monster comes. he worked for nearly two years For this I had deprived myself of rest and health. She is trying to show us how important and key event that is going to occur and how much it meant to Victor. She does this in order to bring a greater shock to the reader when she describes us of what a great disaster he has created. one hand was stretched out, seemingly to detain me, but I escaped and rushed downstairs. Here she gives us a deeper understanding of the scary atmosphere by saying how the monster was trying to kill his creator and just how awful, ruthless and hideous this monster really was. The Monster also declares a threat to Frankenstein after he destroys the female Monster that the Monster had asked him to create. It is well. I go; but remember, I shall be with you on your wedding-night. This threat is applied to generate a build up of suspense. This threat is also echoed in Frankensteins mind in anticipation of his actual wedding night. Maybe Mary Shelley is exploring her own history in Frankenstein by using the style of her fathers novels and her mothers ideas. From my personal view Mary Shelley doesnt only explore in Frankenstein an academic view, but the book explores a personal and emotional point of view. In other words, she is exploring the origins and nature of life itself in a radical sense. The gothic style provides her with a wonderful atmosphere in which to explore how the future can be thought about in the terms of the past. I also think that this novel written in 1818 can not discount the fact that it was written three years after Wellington defeated Napoleon at Waterloo in 1815. What was put aside was the spectre of Napoleons desire to control the world as known then, we see the confrontation of the medieval megalomania being triumphed over. Perhaps, Shelley is using the gothic style in order to look to the future. Shelley makes use of rhetoric in order to persuade the reader. She does this by getting Robert Waltons isolation at the beginning, meeting the intermediate isolation of Frankenstein and the future isolation of the monster by allowing them to encounter each other in the gothic mode, hauntingly. Frankenstein the novel, illustrates the gothic by placing it in the context of a gothic castle where Frankenstein does his experiments. It looks back to the middle ages where the wild, the mystery, the horror, are used to chill the spine and curdle the blood. Mary Shelley uses a gothic style to explore the romanticism of the period by trying to explain life itself and how scary a question that is. Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE Mary Shelley section.

The Impact Of Assigned Components Of A Designated Measure Essay Example for Free

The Impact Of Assigned Components Of A Designated Measure Essay Introduction In carrying out valuation of companies, there are many methods that are used. Among them include asset valuation models, discounted cash flow models, abnormal earnings model. In valuing the company using future cash flow valuation method the net operating profit after tax, operating current assets and other figures are used. The main aim of valuation is to find the fair value of the company prices.    This is called discount cash flow models. Assets based model assigns a value to the firm by aggregating market values of assets and liabilities to enable in getting the fair value. There is a possibility that the value of the firm exceeds the value of the sum of assets and liabilities in this valuation method. When these figures are used, we assume that the valuation is based on the book value. Operating current assets. Every company that is in business of manufacture, retail, distribution has in it financial statements current assets. Current assets form an integral part of the assets of the company. Current assets include inventory, cash at hand and bank, short term investments such as notes, promissory notes, treasury bills and bonds and other short term investments. This forms part of the working capital of the organization. They help in the day to day running of the organization since they provide quick resources for those in the company. Operating current assets are grouped into two: those that are easily convertible to cash and those that are not easily converted. The easily convertible to cash include short term investments like treasury bills and bonds, cash at bank and at hand. Those that are not easily convertible include stock or inventory. Cash is the real amount of money that is in bank or at hand it can be used in need current obligations as to when they fall due.   It is realized from collections of sales or data. Data is another cash item which is easily convertible and forms part of the operating current assets. Data arises from the sale of goods and services on credit facilities. Marketable short term investments are the securities which can be sold to the market on any working day there fore it is easily convertible to cash. Stock or inventory is items for sale in an organization. The business cannot survive without stock. It consists of raw materials purchased for manufacture, work in progress (WIP), materials that have been badly processed into finished goods and finished goods which is the final product meant for the market. There fore if there is operating current assets in a company, the above components are considered to be important. The role of operating current assets in determining the price per share. Current assets forms part of the assets of the company. While determining price per share of the company, all the value of assets is added less reliabilities. The method used, the future cash flow valuation considers all assets less liabilities to arrive at capital employed by the company or net worthy of assets. Then the net worth of the assets is subjected to division using the number of shares of the company to arrive at the price value of the share. The net worth of assets is equivalent to the equity of the firm. This method is used during acquisitions. The role of operating current assets in determining the price value per share. In arriving at the price value per share in this method, operating current assets have been used. In arriving net operating working capital of 104088.5, 10500.3, 1100250, operating current liabilities has been subtracted from operating current assets. These figures arrived at is added to net fixed assets to arrive at net operating capital. The net operating capital will eventually be used in determining the difference in the investment in capital. In this case, investment in capital in year 2002 has been arrived at by subtracting the totals of net operating capital of 315042.3- 303088.5 to get 11953.8   to arrive at return on capital, the figure of the previous year of 303,088.05 has been subjected to division by net operating capital. Therefore, operating current assets has been used effectively in determining investment in capital which is in return used to calculate return on capital employed.   In arriving at the future cash flows that are used in calculating the price per share of the company are arrived at by subtracting the net operating profit after tax i.e.net operating profit after tax – investment in capital. The figure arrived at of 35.1 is comparable to the figures arrived at of EVA based on return on investment capital.   Therefore from the explanation provided, the role of operating current assets is shown. References Mayberry Personal Receivers from 2002 to 2003, annual accounts White G.I, Sondhi A.C and Fried D.(1997), The Analysis and Use of Financial Statements; John Wiley Sons Inc., New York.

Research On Initial Public Offering And Underpricing Finance Essay

Research On Initial Public Offering And Underpricing Finance Essay Initial Public Offering (IPO) of firm is widely underpriced. IPO underpricing is presented as the percentage difference between the offer price and the closing price of the first-trading-day, usually in appearance of initial positive return when shares are newly issued. IPO underpricing is seen as selling shares at discount in the initial offering. The discount requires issuer to leave money on the table to compensate investors, which incur wealth loss for the issuer (Camp, Comer and How, 2006). Therefore, there are numerous theories established to explain the reason for this discount sale in IPO, which generally categorized into four branches: asymmetric information, institutional reasons, control considerations, and behavioral approaches (Ljungqvist, 2007). Among these theories, asymmetric information theory is the most studied direction in the past 40 years. Nevertheless, studies on the institutional and behavioral aspects are heating recently, especially when shedding lights on e merging IPO markets where lack of efficient institutional support and exist over-speculation behavior environment. Evidence of underpricing IPO underpricing phenomenon is firstly academic documented in 1970s (Stoll and Curley, 1970; Reilly, 1973; Logue, 1973; Ibbotson, 1975). Early findings (exclusively focused on US market) indicate that underpricing is influenced by particular periods (Ibboston and Jaffe, 1975) and particular industry, usually natural resource (oil and gas) industry (Ritter, 1984). However, these findings are challenged by Smith (1986) who claimed that underpricing occurs in the entire period of 1960s-1980s, rather than concentrates in particular periods, and underpricing level exists across all industries with average exceeds 15%. Recent study is more convincible with larger time period and sample observations. Loughran and Ritter (2004) document this underpricing discount has averaged around 19% in the US since the 1960s. Nevertheless, underpricing level (i.e. the average first-day return) tends to fluctuate, 21% in the 1960s, 12% in the 1970s, 16% in the 1980s, 15% in 1990-1998 and then exploded to more than 65% in the 1999-2000 internet bubble period, and falling back to 12% in 2001-2008 (reference). Table Empirical studies have extended the scope of research from the US to the whole world. Underpricing is internationally documented, and the level is extremely high in emerging markets. According to (reference)s research, China (1990-1996, 226, 388%); US (1960-1996, 13308, 15.8%); Japan (1970-1996, 975, 24%). Table. (Reference) provides wider research. France: 3-14%; Australia: 11-30%; Taiwan: 30-47%; Greece: 48-64%; Brazil: 74-78.5%; China: 127-950%. Table Due to its short history with strong government control characteristics, Chinese IPO market draws research interest. The average initial return of IPOs in China during 1999-2002 was 3.3 times the average emerging markets initial return (excluding China) and 6.9 times that of developed countries (Reference). Sample size Sample period Initial return (%) Mok and Hui (1998) 87 1990-1993 289.20% Datar and Mao (1998) 226 1990-1996 388.00% Su and Fleisher (1999) 308 1990-1995 948.59% Chen et al. (2000) 277 1992-1995 350.47% Liu and Li (2000) 781 1991-1999 139.40% Chi and Padgett (2002) 668 1996-2000 129.16% Su (2003) 587 1994- 1999 119.38% Chan et al. (2003) 570 1993-1998 175.40% Chan et al. (2003) 286 1999-2000 104.70% Wang (2005) 747 1994-1999 271.90% Kimbro (2005) 691 1995-2002 132.00% Li (2006) 314 1999-2001 134.62% Asymmetric information theory The cornerstone of this theory is that there is asymmetric information among parties (issuer, underwriter, and investor) in the IPO. Chambers and Dimson (2009) proved that the level of trust between investors, issuers, and underwriters plays a crucial role on the level of IPO underpricing over time in the UK. Asymmetric information leads to ex ante uncertainty among parties. Higher ex ante uncertainty results in higher underpricing. Ritter (1984) raised the changing risk composition hypothesis, which assumes that riskier IPOs will be underpriced by more than less-risky IPOs. Beatty and Ritter (1986) then extend Rock (1986)s asymmetric information model (winners curse) by introducing the ex ante uncertainty about an IPOs market clearing price. The ex ante uncertainty among investors over the value of firm determines the underpricing level of the IPO (Loughran and Ritter, 2004). The level of underpricing increases with the degree of ex ante uncertainty about the value of the firm (Beat ty and Ritter, 1986; Ljungqvist, 2007). Firms with more uncertainty about growth opportunities have higher levels of underpricing than other firms on average (Ritter, 1984; Beatty and Zajac, 1994; Welbourne and Cyr, 1999). Under the scope of asymmetric information theory, there are three models: winners curse, principal-agent and signaling. Winners curse assumes informed investors have better information. Principal-agent model argues underwriters gain better information. Signaling model emphasizes on the better information retained by issuers. Winners curse model is based on asymmetric information between informed and uninformed investors (Rock, 1986). This model assumes informed investors have better information about the new firms prospects than the issuer and its underwriters. Uninformed investors would only get unattractive IPO firms shares because informed investors have already picked up attractive firms share with better information. That is to say, uniformed investors would only expect negative return. Consequently, uniformed investors are willing to participate only if new-issue offer prices are low enough to compensate them for expected losses on less attractive issues (Rock, 1986; Ritter and Welch, 2002). Under this assumption, issuers or underwriters have to underprice their IPO shares, i.e. selling with discount, to attract these uninformed investors. Underpricing is seen as compensation to uninformed investors (Beatty and Ritter, 1986). Underwriters have the intention to underprice the IPO shares in order to keep the uninformed investors stay in the market to make offering successful. Underwriter could use underpricing to obtain full subscription in order to make the shares offering successfully. Moreover, Loughran and Ritter (2002) argue that winners curse is not the dominate explanation in IPO underpricing now. Winners curse problem and dynamic information acquisition were main explanations in 1980s in US IPO market. In 1990s US, analyst coverage and side payments to CEOs and venture capitalists (spinning hypothesis) are main reasons (ibid). Welch (1992) claims that underpricing is caused by the cascades effect in the IPO market. This Cascades effect is presented as the asymmetric information between informed and uninformed investors. Underpricing generates information momentum, which results in a higher market clearing price at the end of the lockup period (the time between share-offer day and listed day) when insiders (first buyers) typically start to sell some of their shares. These first buyers behavior would influence the following buyers perception on value of shares. Since there is selling pressure when IPO ends and the analyst coverage starts, the market price could still maintain at a high level in the first-trading-day, thus incur significant underpricing level (Bradley et al. 2003; Ofek and Richardson, 2003; Bradley, Jordan, Roten, and Yi, 2001; Brav and Gompers, 2003; Field and Hanka, 2001). Principal-agent model focuses on asymmetric information between underwriters and issuers (Baron and Holmstrom, 1980; Baron, 1982). Baron (1982) assumes that underwriter is better informed about demand conditions than the issuer, leading to a principal-agent problem. In this model, the function and role of underwriters are mainly studied. Underwriters want to underprice IPOs (Baron and Holmstrom, 1980; Baron, 1982; Loughran and Ritter, 2002/2004; Ljungqvist and Wilhelm, 2003). First of all, underwriter has to underprice in order to sell all shares, i.e. underwriters use underpricing to obtain full subscription in order to make IPO successfully. There are uninformed investors who have the money to invest in the market. Underwriters convince issuers into underpricing to prevent these uninformed investors from leaving the IPO market. Underpricing is to induce underwriters to put forth the correct level of effort (Baron, 1982). Underwriter has to balance this trade-off in the principal-ag ent problem. On one side, underpricing would incur wealth loss for the issuer and reduce commission revenue for underwriters, on the other side, Beatty and Ritter (1986) argue that as repeat players, underwriters have an incentive to ensure that new issues are underpriced by enough lest they lose underwriting commissions (especially for those uninformed investors) in the future. Empirical studies (Nanda and Yun, 1997; Dundar, 2000) claim that underwriters subsequently lose IPO market share if they either underprice or overprice too much. However, the principal-agent model is challenged by Muscarella and Vetsuypens (1989), who argue that underpricing phenomenon still exists in underwriter (investment bank) IPO itself in which there is no principal-agent problem. Second, underpricing could incur over-subsucription in an IPO, which gives underwriter the discretion to allocate IPO shares. Underwriters can decide to whom to allocate shares if there is excess demand. In this case, underwriters discretion acts like interest exchange with their clients. They want to retain the buy-side clients, thus to allocate underpriced IPOs to them. Recurrent institutional investors would get the IPO shares and enjoy a positive initial return (Loughran and Ritter, 2002). Underwriters have an incentive to underprice IPOs if they receive commission business in return for leaving money on the table. Underpricing could facilitate the loyalty between underwriter and its clients, which could in turn facilitate underwriters sale of subsequent IPOs and seasoned offerings. For example, in the late 1990s IPOs were allocated to investors largely on the basis of the past and future commission business on the other trades (Reuter, 2004). Third, spinning effect induces underwriter to underpricing. The spinning explanation describe issuers are willing to hire underwriters with a history of underpricing because issuers receive side-payments. Spinning may be used by the underwriter to acquire IPO deals and influence IPO pricing, but it can also be used as part of a long-term business strategy with a given issuer to attract future underwriter mandates. The side-payments of spinning makes issuers reluctant to change its original underwriter for subsequent offerings (Dundar, 2000; Krigman, Shaw and Womack, 2001; Burch, Nanda and Warther, 2005; Ljungqvist, Marston and Wilhelm, 2006/2009). Spinning effect was first documented by Siconolfi (1997) in a Wall Street Journal article. Specifically, underwriters set up personal brokerage accounts for venture capitalists and the executives of issuing firms in order to allocate hot IPOs to them (Siconolfi, 1997). The hot IPOs means shares those are underpriced and would gain a huge po sitive initial return aftermarket, which would increase the personal wealth of the managers of issuing firms (Loughran and Ritter, 2002). The use of hot IPOs to reward issuers created an incentive for issuers to seek out underwriters who willing to offer this hot IPO through underpricing, rather than to avoid such underwriters. Allocating hot IPOs to the issuers and their friends (through friends and family accounts) allowed underwriters to underprice even more, i.e. selling at a friendly price (larger discount) (Fulghieri and Spiegel, 1993; Loughran and Ritter, 2002; Ljungqvist and Wilhelm, 2003). Underwriters may be more inclined to give favorable allocations of shares to preferred investors (friends, family, executives, etc.) and unfavorable allocations to non-favored non-connected investors. The latter would require higher underpricing to participate in the IPO market. The outcome of this process is not due to ex ante uncertainty, but due to discretionary allocation of shares by underwriters. Furthermore, this discretion is not mitigated by strong institutional framework. During the late 1990s and early 2000, spinning was a widespread practice in the US, despite having one of the strongest investor protection rules at the same time (Liu and Ritter, 2009). Signaling model, first referred by Leland and Pyle in 1977, assumes the issuer itself best knows its prospects (possesses better information). Underpricing is a signal that the firm is good (Allen and Faulhaber, 1989; Grinblatt and Hwang, 1989; Welch, 1989). If the issuer possesses the best information about its true value, a high quality firm could use underpricing as a means to distinguish itself from low quality companies. These firms with the most favorable prospects find it optimal to signal their type by underpricing their initial issue of shares, and investors know that only the best firms can recoup the cost of this signal from subsequent issues. In short, a partial offering of shares is made initially, information is then revealed, and subsequently more shares will be sold. In contrast, low quality companies might tend to price fully (Bergstrom, Nilsson and Wahlberg, 2006). Hiring reputable underwriter with influential analysts would mitigate ex ante uncertainty, thus reduce the underpricing level. Empirical study shows the more market power of underwriter (with strong analyst team, influential and bullish, usually), the more underpricing extent (Hoberg, 2007). Hiring a prestigious underwriter (Booth and Smith, 1986; Carter and Manaster, 1990; Michaely and Shaw, 1994) or a reputable auditor (Titman and Trueman, 1986) is seen as a specific way to reduce the ex ante uncertainty. Carter and Manaster (1990) and Carter et al. (1998) argue that IPOs taken by prestigious underwriters benefit from superior certification. The choice of underwriter indicates the quality of this IPO implicitly, because the reputation of underwriter may provides certain guarantee on the value of the issuer, which in turn, mitigates the ex ante uncertainty, thus the underpricing level would be reduced. Nevertheless, empirical evidences show a mixed result. There is a negative relati on between underwriter prestige and underpricing level in the 1980s, but a positive relation in the 1990s (Beatty and Welch, 1996; Cooney, Singh, Carter, and Dark, 2001). Issuers want to hire reputable underwriters who have, not only because of this could reduce ex ante uncertainty, but also the influential and bullish analyst coverage provided by reputable underwriters (Dunbar, 2000; Clarke, Dunbar and Kahle, 2001; Krigman, Shaw and Womack, 2001). Analyst coverage is crucial on the discovery of true value of the firm, especially its impact on sequent shares offering. Ljungqvist, Jenkinson and Wilhelm (2003) prove that influential analyst could bring the businesses for underwriters (investment banks). Prestigious investment banks also tend to recruit analysts who making optimistic forecasts (Hong and Kubik, 2003). Although analyst coverage is expensive for underwriters (the largest US investment banks each spent close to $1 billion per year on equity research in 2000, for example) (Rynecki, 2002), these costs are covered partly by underwriting fee charging from issuers. Due to the information production cost, many firms would prefer later IPO. Firms d o IPO firstly could incur analyst coverage advantage (more information revelation) for other firms wanting for IPO in the same industry (i.e. free ride effect). In this case, underwriter compensate this information cost for the before Firms with underpricing to investors (Benveniste, Busaba, and Wilhelm, 2002; Benveniste et al., 2003). Moreover, issuers feel reluctant to change its underwriter for seasoned equity offering (SEO) if the underwriter did analyst coverage and the underprice effect is significant in the IPO. Cliff and Denis (2004) proved this with the example 1050 US IPO firms during 1993-2000. When initial offering shares, the issuer increases emphasis on the advertisement effect brought by analyst coverage from underwriter, rather than the level of underpricing itself. Empirical studies (Cliff and Denis, 2004; Dunbar, 2000; Clarke et al. 2007) illustrates that many US issuers accepted underpricing in 1990s since they focused more on choosing an underwriter with an influential analyst than on getting a high offer price. The underlying principal is that underpricing could attract investors attention to this firm. Issuers have the incentive to reduce underpricing, and model their optimal behavior. Firms could gain advertisement benefits from underpricing, which creates beneficial condition for sequent offering (Habib and Ljungqvist, 2001). A high quality firm is underpriced (sell shares at discount) at the initial offering in order to attract market attention through following analyst coverage, usually, massive and efficient analyst coverage would mitigate the asymmetric inf ormation among investors and present the high quality of the firm, finally, the more realization on the true value of the firm among investors could help the firm sell its sequent seasoned offering shares at a higher price (i.e. recoup the loss from the underpricing in the initial offering). This process is called partial adjustment phenomenon (Hanley, 1993). About one-third of all IPO issuers between 1977 and 1982 had reissued equity by 1986, the typical amount being at least three times the initial offering (Welch, 1989). Analyst coverage relates to the future predicted value of the issuer, thus it is important. Moreover, the development of internet and cable television extend the influence of analyst coverage on the share price. In this way, the share price aftermarket would increase, which further provides the opportunity for issuer to offer higher price for its seasoned offering. Behavior Finance Speculative bubble theory After the internet bubble collapse in the US in early 2000, the academic focus transferred to behavior finance. The asymmetric information theory is based on the efficient market hypothesis. The ex ante uncertainty leads to the difficulty on firm valuation for investors, therefore, issuer and underwriter would set higher underpricing level to attract investors. Underpricing is seen as deliberate selling strategy for an IPO, once listed in the secondary market, share price would return to its fair value. Asymmetric information theory predicts lower underpricing if information is distributed more homogeneously across investors (Michaely and Shaw, 1994). However, it is challenged by heterogeneous expectation hypothesis in the stock market (Miller, 1977), which argues this deliberated underpricing strategy of IPO (selling at discount) disrupts the market efficiency (Loughran et al., 1994). According to Miller (1977), there are two assumptions in the market: the heterogeneity expectation and restriction on short-selling. The optimistic investors buy and hold shares, whereas pessimistic investors can not participate in the trade since the short selling is restricted. Consequently, share price reflects the opinion from optimistic investors, and thus the share price is overvalued compared to its fair value. Aggarwal and Rivoli (1990) raised the speculative bubble theory to argue that IPO underpricing is caused by faddish behavior on behalf of investors. This theory reveals there is speculative environment in secondary market, which increases the market price of the first-trading-day, thus incurs severe underpricing phenomenon. The speculative bubble theory to Ibbotsons opinion that underpricing is cyclical, which could date back to 1970s. Ibbotson and Jaffe (1975) found the level of underpricing fluctuates between different time periods. One explanation for the fluctuation may be the fact that there are hot and cold IPO markets (Ibbotson et al., 2001). In a hot IPO market, the average level of underpricing is large and the amount of firms going public increases. Afterwards there is a high rate of firms going public, but the level of underpricing decreases. The following cold period starts with fewer firms going public and very low underpricing or even overpricing. There is strong empiri cal evidence for this recurrent pattern, but the existence of this pattern has not yet seen sufficiently explained theoretically (Ibbotson and Ritter, 1995). Aggarwal (2000) provides empirical evidence to prove there is positive relationship between underpricing level and market index. Faddish investor hypothesis claims that in the hot market, over-optimistic (irrational) investors overpriced the IPO. This means the high initial return of IPO is not caused by deliberate underpricing pre-IPO solely, but is overpriced by optimistic investors in the secondary market. On one side, large amount of irrational investor is the root of high initial return in IPO, because irrational investors determine the transaction price in the secondary market (Ljungqvist, Nanda and Singh, 2003). Ljungqvist and Nanda (2002) claim that personal investor is seen as irrational investor, whereas the issuer, underwriter and institutional investors are seen as rational investor. Ljungqvist and Wilhem (2003) proved that personal investors have over-optimistic expectation on stock return in the hot market and these personal investors are typical noisy traders in IPO market, who prefer to make investment decision in terms of past initial return of previous IPOs. Delong, et al. (1990) reveal the influence of noisy trader on the share price. These noisy traders in IPO market are typical positive market feedback traders. When recent initial returns are high in the IPO market, these investors would purchase new issues, thus these purchases increase the demand for following IPOs, thus raise the initial return for these following IPOs. On the other side, it is believed that inequality of demand and supply of IPO primary market causes or intensifies the speculative environment in the secondary market (Aggarwal, 2000). Inequality between demand and supply leads to speculative opportunity. The underlying reason for this inequality is that IPO mechanism is not market-oriented in some countries, which is controlled by government (China, for example) (Su, 2004). IPO supply in the primary market is not adequate because of the government control. When new issues are over-subscribed, the irrational investors (speculators), who are constrained in the primary market, would be released in the secondary market. Meanwhile, due to the restriction on short selling (in China, for instance), investors could only make money when price increases. Therefore, investors push up the price on the first-trading-day, which causes severe underprcing level. Legal framework theory Legal framework theory could explain the different underpricing level among different countries. Legal framework has significant impact on ex ante uncertainty in IPO market. Ex ante uncertainty caused by regulatory constrains, wealth redistribution, and market incompleteness, leads to the IPO underpricing phenomenon (Mauer and Senbet, 1992). Difference in legal frameworks of various countries explain the ex ante uncertainty degree and the decisions made by investors in the market (La Porta et al., 1997/1998/2002). Cross-country differences in the legal framework affect ownership structure (La Porta et al., 2002), ownership effectiveness (Heugens et al., 2009), capital structure (De Jong et al., 2008), asset structure (Claessens and Laeven, 2003), dividend policy (La Porta et al., 2000), corporate governance (La Porta et al., 2000; Mitton, 2002) and corporate valuation (La Porta et al., 2002). Legal frameworks deem to reduce uncertainty by creating a stable foundation in which subsequ ent human interactions can be grounded (North, 1994; Peng, 2009; Van Essen et al., 2009). First of all, legal framework affects issue firms value. Legal framework can influence the ex ante uncertainty about firm value in more or less the same way as ex ante firm-specific risk at the time of IPO. Firms operating in a legal environment with poor protection of intellectual property rights are unwilling to invest in intangible assets (Research and Development capability, or branding effect, for example), leading to lower firm growth and thus lower firm value. Second, legal framework affects investors decision. Stronger investor protection could reduce the investment risk (for example, lower asset volatility, lower systematic risk, lower stock volatility, higher risk-adjusted return as measured by the Sharpe and Treynor index) (Chung et al., 2007; Hail and Leuz, 2006; Chiou et al., 2010). In countries with weaker legal protection, investors will be more uncertain about realizing a return on their investment (Shleifer and Vishny, 1997). Lower levels of legal protection for investors will create more uncertainty with respect to post IPO strategies and managerial decisions that may negatively affect firm value (Claessens and Laeven, 2003). In a country with a weaker legal framework, managers or dominating shareholders have more opportunities to transfer profits or assets out of the firm at the expense of the minority shareholders. Weaker legal framework could provide opportunity for damaging firm value through transfer pricing, asset strippin g and investor dilution (Cheung et al., 2009; Berkman et al., 2009). This increased probability of ex post expropriation by management or dominating shareholders increases the ex ante uncertainty at the time of IPO (Johnson et al., 2000). The higher the expropriation risk, the more the offer needs to be underpriced to compensate for this ex ante uncertainty. There is conflicts between dominating shareholders and outside shareholders because outside shareholders require higher risk premiums (higher cost of capital) which caused by the weak legal framework (Himmelberg et al., 2004; Giannetti and Simonov, 2006; Albuquerue and Wang, 2008). Although it is argued that issuers can independently improve their level of minority investor protection by a listing on a foreign stock exchange with higher standards of investor protection (i.e. cross-listing), it is doubtful that they can fully compensate for the lack of an adequate legal framework at the country-level (Black, 2001; Reese and Weisb ach, 2002; Roosenboom and van Dijk, 2009). Third, Underpricing could avoid potential legal liability, which is another explanation theory provided by Tinic (1988). It is claimed that underpricing reduces both the probability of lawsuits if subsequently the firm does not do well in the aftermarket, because the investor is the direct recipient of the benefit from underpricing (Milgrom and Roberts, 1986; Tinic, 1988). Underwriters are unwilling to price these offerings at high level, in case that the market would concern about lawsuits and thus damage to its reputation if the shares eventually dropped in price aftermarket. The argument is based on that unsophisticated and uninformed investors were bidding up the price to unjustified levels, and the underwriters were unwilling to price the IPOs at the market price determined by these noise traders. Ownership control theory Ownership control theory is described as IPO is expected to bring in new shareholders, who would dilute the control power of original shareholders (managers), therefore, issuers have less motivation to bargain for higher offer price, and result in underpricing. Ljungqvist and Wilhelm (2003) explain this ownership fragmentation would incur underpricing through the realignment of incentives hypothesis. Logically, the issuer firms holding large proportion shares would have incentive to argue for higher offer price thus reduce the underpricing level (Barry, 1989; Habib and Ljungqvist, 2001; Bradley and Jordan, 2002; Ljungqvist and Wilhelm, 2003). Moreover, the excess demand for shares caused by underpricing enables managers to allocate small stakes of shares to many dispersed small investors. Therefore, original managers control power is strengthened since they would be the dominate shareholders. In other words, underpricing could give the managers power on control (Brennan and Franks, 1 997; Boulton et al., 2007). However, the ownership control theory is challenged. Other substitute mechanisms for retaining control such as takeover defenses, non-voting stocks and alike are more effective, because underpricing can not prevent outside investors from accumulating larger stakes of shares once trading begins in the aftermarket (Ljungqvist, 2007). Issue mechanism Fixed price Offer price = Predetermined price Bookbuilding Underwriter set the final offer price by consulting with investors Auction Offer price = lowest price which bid the final share Hybrid Bookbuilding + Fixed price; Auction + Fixed price Bookbuilding, by which underwriter has the discretion on share allocation, can induce investor to reveal their information through their indications of interest, which can reduce information asymmetry thus lower underpricing (Benveniste and Spindt, 1989; Benveniste and Wilhelm, 1990/1997; Sherman and Titman, 2002; Ritter and Welch, 2002; Gondat-Larralde and James, 2008). On one side, underwriters tend to allocate IPOs to investors who provide information about their demand (i.e. the price discovery process). Price discovery eliminates the winners curse problem, thus reduce underpricing level. On the other side, bookbuilding authorized underwriter the discretion on share allocation (so called rationing allocation). After collecting investors indications of interest, the underwriter allocates no (or only a few) shares to any investor who bid conservatively. This rationing share allocation could reduce the underpricing level. Koh and Walter (1989) found the likelihood of receiving an al location in this mechanism was negatively related to the degree of underpricing, and average initial returns fall substantially from 27% to 1% when adjusted for rationing allocation in Singapore case study. Levis (1990) and Keloharju (1993) claim Rationing share allocation mechanism could reduce the initial return in UK, and in Finland respectively. Aggarwal, Prabhala, and Puri (2002) also find that institutional investors earn greater returns on their IPO allocations than do retail investors largely in bookbuilding mechanism, because they are allocated more shares in those IPOs that are most likely to appreciate in price. However, imposing constraints on the underwriters allocation discretion can interfere with the efficiency of the bookbuilding. The quality of bookbuilding in many European and Asian countries is damaged by certain restriction on the use of bookbuilding, which leading to higher underpricing (Ljungqvist et al., 2003). Requiring that a certain fraction of the shares be allocated to retail investors, as is common in parts of Europe and Asia, reduces underwriters ability to target allocations at the most aggressive (institutional) bidders and so may force them to rely more on price than on allocations to reward truth-telling. Moreover, empirical study indicates that bookbuilding in countries outside the US only reduces the level of underpricing when used in combination with US investment banks (underwriter) and targeted at US investors. Although the functioning of the different issuing me