Sunday, May 31, 2020
Methodology: Regression model is used to analyze the data taken from Pakistani firms in sugar sector, listed on Karachi Stock Exchange, during the period 2001-2008. Keywords: Static trade-off theory, Pecking order theory, Agency cost theory, leverage ratio, listed firms, corporate capital structure. 1. Introduction In the opening chapter, the background, problem discussion and purpose of the study are presented. The chapter ends with targeted group and limitation of study. 1.1 Background and problem discussion Capital structure is one of the most prolific domains of research in corporate finance. Research is spinning around a few theoretical models of capital structure since over than forty years but could not be able to provide the conclusive assistance to managers and practitioners for choosing between debt and equity in financial decisions. An important question that companies face in need of new finance is whether to raise debt or equity. A number of theories have been proposed to explain the variation in debt ratios across firms. The theories suggest that firms select capital structures depending on attributes that determine the various costs and benefits associated with debt and equity financing. In spite of the continuing theoretical debate on capital structure, there is relatively little empirical evidence on how companies actually select between financing instruments at a given point in time. The problem of capital structure choice has been heavily discussed by international researchers for the last few decades that: What are the determinants of capital structure choice? How do firms choose their capital structures? Given the level of total capital necessary to support a companys activities, is there a way of dividing up that capital into debt and equity that maximizes current firms value? And, if so, what are the critical factors in setting the leverage ratios for a given company? Modigliani and Millers (MM) theory (1958) is considered as fundamental corporate structure model in the modern corporate finance. The theory ascertained the irrelevance of capital structure to firms value in perfect markets, without taxes and transaction costs. Following on the this perfect classification of market, most subsequent research focused to demonstrate that a firms capital structure decision does consider corporate and personal taxes, agency costs, bankruptcy cost, and other frictions. These aspects of corporate environment are referred as determinants of capital structure. Main research in corporate structure is focused on following two competitive theories: The first one is the traditional static trade-off theory, which derives form the Modigliani and Millers (1963) hypothesis of capital structure irrelevance and suggests that firms choose their optimal capital structures by trading off the benefits and costs of debt and equity. The main benefit of debt is tax deductibility of interest, which is balanced against bankruptcy costs (Kim 1978) and agency costs (Jensen and Meckling 1976; Myers 1977). It suggests the existence of a target optimal capital structure, which companies try to reach. . Contrary to the above is the pecking order theory, developed by Myers and Majluf (1984) which emphasis that there is no target level of leverage and companies use debt only when their internal funds are insufficient, firms instead of aiming towards a target-specific capital structure, choose a type of capital according to the following preference order: internal finance, debt, equity. Myers (1984) and Myers and Majluf (1984) by referring to the existence of information asymmetry between managers (insiders) and investors (outsiders), Insiders knowing more about the value of the firm than outsiders, avoid issuing equity when the shares of the company are undervalued. Being aware of the above fact, outsiders tend to interpret a share issue as conveying unfavourable information as to the value of the firm. As a result, managers are reluctant to raise equity capital because it is typically followed by a decrease in valuation of the companys assets. Therefore, retained earnings are the most preferred sources of funds and, if external financing is needed, a firm first seeks low risk debt. According to the pecking order theory, external equity financing is used as a last resort. Titman and Wessels (1988), as well as Rajan and Zingales (1996), whose works are referred to as the most important empirical studies in the field, find strong negative relationships between debt ratios and profitability. This evidence is consistent with the pecking order behaviour and inconsistent with the trade-off theory. One of the latest papers in support of the pecking order theory is by Shyam Sunder and Myers (1999), who explicitly compare it with the static trade-off theory using a panel of US firms. They conclude that, compared to the static trade-off model, the pecking order theory explains more of the variation in actual debt ratios. Even if companies in their sample had well-defined optimal debt ratios, their managers were not trying to obtain them. Many empirical studies have tried to explain the factors that affect on capital structures choice. One of the most renowned initial empirical studies is made by Rajan and Zingales (1996) and they explain the various institutional factors of firms capital structure in the leading industrial countries. Predominantly ongoing debate in corporate finance research sustains the significance of above discussed theories. Majority of research work is based on the facts taken from western and Americans non-financial firms, For example, Rajan and Zingales (1996) study is made on G-7 countries, Titman and Wessels (1988) studied U.S firms, Bevan and Danbolt (1999) studied U.K firms. There are few studies that cover non-financial firms from emerging economies. Although Booth et al (2001) have included Pakistan, in his empirical study of developing countries but Hijazi and Shah (2005) were the first to study determinants of firm-level capital structure in Pakistan. They discuss the all listed non-financial firms from period 1997 to 2001. But so far sugar sector of Pakistan has not been analyzed independently. This report presents an empirical analysis of capital structure of sugar sector in Pakistan with most recent available data. This report attempts to extend the knowledge of capital structure and its determinants in Pakistani companies. The aim of this research is to analyze the determinants of capital structure of sugar sector of the Karachi stock exchange. A variety of variables that are potentially responsible for determining capital structure decisions in companies can be found in the literature. However in this study, the profitability and tangibility are tested as determinants of capital structure in sugar sector of Karachi stock exchange. 2. Literature Review The first paper on capital structure was written by Miller and Modigliani in (1958). They conceptually proved that the value of firm in not dependent upon the capital structure decision given that certain conditions are met. Because of the unrealistic assumptions in MM irrelevance theory, research on capital structure gave birth to other theories. 2.1 Theory of irrelevancy of capital structure Corporate finance theory bases on the Modigliani and Miller (1958) propositions that specify certain conditions under which various corporate financing decisions are irrelevant. The MM propositions provide a base for analysing how financing decisions can create and destroy the value for a corporation. Theory of irrelevancy was presented in an era when research was dominated by assumption that there is no interaction between the firms investment and financial decisions of the firm. Modigliani and Miller states that in a perfect competitive market the value of a firm depends on its operating income and level of business risk. Simply, value of firm does not relate to its capital structure. Financing and risk management choices will not affect firms value if the capital market is perfect. A perfect market has following traits: ÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬ÃâÃ ¢ All investors are price takers. ÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬ÃâÃ ¢ All market participants can borrow and lend at the risk free rate. ÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬ÃâÃ ¢ There are no costs of bankruptcy. ÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬ÃâÃ ¢ Homogenous risk free classification of firms. ÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬ÃâÃ ¢ Neutral taxes ÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬ÃâÃ ¢ Managers always maximize shareholders wealth. ÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬ÃâÃ ¢ Information symmetry In their paper, Miller and Modigliani (1958) showed that the value of the firm is independent of the capital structure it takes on (MM irrelevance). They argue that there would be arbitrage opportunities in the perfect capital market if the value of the firm depends on its capital structure. Furthermore, investor can neutralize any capital structure decision of the firms if both investor and firms can borrow at the same rate of interest. Though this theory is based on many unrealistic assumptions, yet it presents the basics theoretical background for advance research (Shah and Hijazi, 2005) The main result of Modigliani and Miller (1958) irrelevance theorem stated that, under certain conditions, the value of the firm is independent of its capital structure. They argued that a firms investment policy has an important effect on firms value, whereas the financing decision is secondary. The theorem was based on the following (explicit and implicit) assumptions; the firms manager is selfless, always acting in investors interests (no agency costs); information about the firm is symmetrically distributed between managers and investors; debt is risk-free. Modigliani and Miller also ignored the effects of corporate taxes. 2.2 The Trade-off Theory Myers (1984) segregated the contemporary opinion on capital structure into two theoretical currents. One of them is the Static Tradeoff Theory (STT), which enlightens that a firm go after a target debt-equity ratio and then behaves in accordance to that. The benefits and expenditures linked with the debt alternative sets this target ratio. These comprises of taxes, cost of bankruptcy as well as agency cost. Like interest expenses are tax-deductible payments, which reduce the tax liability therefore providing cash savings. As a result firms will use a greater level of debt to take the advantage of tax benefits if the tax rates are greater. If the firms incur losses, the tax benefit will weaken away. Thus if the operating earnings are sufficient to meet up the interest payments after that firms will get the benefit of tax deductibility of interest payments. Therefore tax rate and leverage have positive affiliation. The probability of default enhances as the level of debt increases from most favorable level of debt. If the firm leaves beyond this most favorable point, it is more possible that the firm will fail to pay on the repayment of the loan; as a result the control of the firm will be shift as of shareholders to bondholders, they will strive to get back their investments by liquidating the firm. As of this risk a firm may face two kinds of bankruptcy costs; including direct and indirect costs. Direct costs comprises of the administrative and legal expense of the bankruptcy system. Incase firm is large in size; these costs comprise only a small percentage to the firm. Though, for a small firm, fixed costs comprise a higher percentage and are measured as an active variable in choosing the level of debt. Indirect costs arise due to change in investment policies of the firm, if the firm forecast possible financial distress. To stay away from probable bankruptcy, the firm will decreases expendi tures on training and advertisements, research and development etc. Resulting, the customer starts to doubt the firms capability to sustain the similar level of quality in services and goods. This uncertainty appears in the form of a fall in sales and ultimately results in a fall of the firms price of the market share. Modigliani and Miller (1963) states that, firm can have 100% debt in its capital structure for receiving utmost benefit of tax shield, but in reality capital structure compose of entirely with debt is not possible. Consequently, Static Trade Off Theory suggests the limited amount of debt and proposes that the optimal leverage ratio of the firm is determined by the trade-off between tax shields with debt financing against higher bankruptcy cost. According to Static Trade Off Theory, optimal debt ratio varies from firm to firm. Firm having safe and tangible assets and plenty of taxable income have high debt ratio. Such firms will be in a position to provide collateral for debts and in case of default, tangible assets will be apprehended but still firm may be in a place to avoid bankruptcy. According to theory profitable firms take more benefit of the tax shield by debt financing because there is fewer chance for them to go bankrupt therefore profitable firms are capable to raise its debt ratio more than a less profitable firm. 2.3 Signaling Theory There is significant branch of literature centering on the firms financial behavior. This domain of research focuses information distribution as a determinant of corporate capital structure. Their research work can be split in to two distinct categories: one who claims that firm uses capital structure to signal private information to the uninformed agents in capital markets and second who asserts that capital structure that minimizes the problems of information asymmetry can lead the firm to invest sub optimally. Ross (1977), suggested that debt is taken as a means to highlight investors confidence in the company, that is if a company issues the debt it gives a indication to the markets that the firm is expecting positive cash flows in the upcoming time, as the principal and interest expenses on debt are a fixed contractual compulsion that a firm has to pay from its cash flows. Therefore the higher level of debt reveals the managers confidence in future cash flows. Accordingly firms in their efforts to enhance the worth of equity will use high debt in the capital formation. Another impact of the signaling factor is the dilemma of the under pricing of equity. Incase firm issues equity in spite of debt for financing its fresh projects; investors will take the signal negatively: while managers have better information about the firm as compare to investors, they may issue equity once it is overpriced. The effect of information upon the capital structure of a firm can be reflected by its past cumulative requirement for external finance. Myer and Majluf (1984) say that since the investors cant separate the information about the new projects from that of under or over valuation of the current stocks, the capital structure of the firm may help to prevent mis-pricing the equity. Following this argument, firm dont issue equity for financing new project rather they will first fulfill their needs of financing from internally generated funds then issue debt if further financing is required and finally issue equity as a last resort. This has been termed as Pecking Order Theory. In the Rose model, managers know the true distribution of firms returns, but investors do not, mangers benefit if firms securities are more highly valued by the market but are penalized if the firm goes bankrupt. Firms with higher value are predicted to issue more debt as a signal to investors in order to differentiate them from lower value firms. Further model shows positive relation between profitability, debt level, and bankruptcy probability. 2.4 Pecking order theory (POT) Pecking Order Theory (POT) explained by Myers and Majluf (1984) and Myers (1984) states that firms pursue a hierarchy of financial decisions while setting up its capital structure. At first, firms favor to finance their projects with the help of internal financing i.e. retained earnings. If they require external financing, first they go for a bank loan and then for public debt. As a last alternative, the firm will issue equity to finance its project. Therefore as per POT the profitable firms are opt to incur debt for new projects as they have the available internal funds for this project. Myers and Majluf (1984) explained firms are reluctant to issue equity as of asymmetric information between the management and the new stockholders. Myers and Majluf (1984) explain that investors generally perceive that managers use private information to issue risky securities when they are overpriced. This perception of investors leads to the underpricing of new equity issue. Sometimes this underpr icing is very severe and cause substantial loss to the existing shareholders. Because of this, firms will avoid issuing equity for financing new project; rather they will first fulfil their needs of financing from internally generated funds then issue debt if further financing is required and finally issue equity as a last resort. Myers (1977) proposed that firms acting to make best use of the interest of equity holders will be reluctant to issue equity as of the wealth transfer to debt holders, Myers and Majluf (1984) proposed firms are unwilling to issue equity because of an unfavorable selection problem. Rajan and Zingales (1995) explained the determinants of capital structure in their cross-sectional study and examined that at the level of the individual firm, gearing may be enlightened by four key determinants i.e., market-to-book, size, profitability and tangibility. Rajan and Zingales (1995) performed their analysis on the G-7 countries upon a firm-level sample as the results of their regression analysis somewhat vary across the countries; that appear to expose some reasonably strong conclusion. Rajan and Zingales (1995), as well as Titman and Wessels (1988), whose works are referred to as the most important empirical studies in the field, find strong negative relationships between debt ratios and profitability, this is also evidenced by Bevan and Danbolt (2002). This evidence is consistent with the pecking order behavior and inconsistent with the trade-off theory. Given, however, that the analysis is effectively performed as an estimation of a reduced form, such a result masks the underlying demand and supply interaction which is likely to be taking place. Although on the supply-side one would expect that more profitable firms would have better access to debt, the demand for debt may be negatively related to profits. The inability of lenders to distinguish between good and bad risks prevents them from charging variable interest rates dependent on the actual risk. In this event lenders are forced to increase the general cost of borrowing, which will tend to induce a problem of adverse selection as good risks are driven from the market by the high costs of borrowing. Due to this information asymmetry, companies will tend to prefer internal to external financing, where available. 2.5. Agency Theory Jensen and Meckling (1976) are most prominent figures in research of agency cost domain. Jensen and Meckling (1976) discover the probable conflict between managers and shareholders interests as of the managers share of less than 100 percent in the firm. In addition, acting as agents to shareholders, managers try to appropriate wealth away from bondholders to shareholders by taking more debt and investing in risky projects. The managers given role has many implications for the capital structure of a firm. They suggest that as manager possess less then 100% residual claims and it causes conflicts between shareholder and managers. Subsequent type of conflict between debtholder and shareholder can arise when issuance of debt gives more incentive to shareholder. More explicitly, debt investment is inclined towards shareholders, if an investment yields large return, well above the face value of debt, shareholders captures most of the gain. But if investment goes fail and firm approaches to bankruptcy, equityholder just skip away and debtholders bear the whole consequences. According to Jensen and Meckling, agency relationship is an agreement between two parties. One of them (agent) performs certain services on the behalf of other (principal). The problem of stirring an agent to behave as if he were maximizing the principals welfare is rather common. In this relationship both parties are utility maximizer, therefore there is always a chance that agent will not always performs its responsibilities to maximize the benefits of principal. Principal have to restrain this problem by fixing an appropriate level of incentives for agent and to monitor the agents actions (by incurring monitoring cost). In this relation principal incur certain cost, called agency cost, which can explain as the sum of following activities: ÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬ÃâÃ ¢ The monitoring expenditures by the principal ÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬ÃâÃ ¢ The bonding expenditures by the agent ÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬ÃâÃ ¢ The residual loss. Principal incurs monitoring cost to limit the unexpected activities of agent. Bonding expense can be describe as in some conditions it will pay the agent to expend resources (bonding costs) to guarantee that he will not take certain actions which would harm the principal or to ensure that the principal will be compensated if he does take such actions. In some cases, even both parties incur the agency cost but still agents certain decision for profit maximization would not increase the welfare of agent. This loss is termed as residual lost and it can be defined as the dollar equivalent of the reduction in welfare experienced by the principal as a result of agents divergence from principals expectation is also a cost of the agency relationship and that is referred as the residual loss. To mitigate the agency problems, various methods have been suggested. Jensen and Meckling (1976) suggest either to increase the ownership of the managers in the firm in order to align the interest of mangers with that of the owners or increase the use of debt which will reduce the equity base and thus increase the percentage of equity owned by mangers. The use of debt increases the chances of bankruptcy and job loss that further motivate managers to use the organizational resources efficiently and reduce their consumption on perks. Jensen (1986) present free-cash flow hypothesis, Free cash flow refers to cash flow available after funding all projects with positive cash flows. Managers having less than 100% stake in business and their compensation tied to firms expansion may try to use the free cash flows sub-optimally and increase firm size resulting in greater compensation. Jensen (1986) propose that this problem can be somehow restricted by increasing the stake of managers in the c ompany or by rising debt in the capital structure, thus dropping the amount of free cash accessible to managers. Harris and Reviv (1990) gave one more reason of using debt in capital structure. They say that management will hide information from shareholders about the liquidation of the firm even if the liquidation will be in the best interest of shareholders because managers want the perpetuation of their service. They suggest that mangers have incentives to pursue strategies that reduce their employment risk. This conflict can be solved by increasing the use of debt financing since bondholders will take control of the firm in case of default as they are powered to do so by the debt indentures. Stulz (1990) said when shareholders cannot observe either the investing decisions of management or the cash flow position in the firm, they will use debt financing. Managers, to maintain credibility, will over-invest if it has extra cash and under-invest if it has limited cash. Stulz (1990) argued that to reduce the cost of underinvestment and overinvestment, the amount of free cash flow should be reduc ed to management by increasing debt financing. The bondholder expropriation hypothesis says that shareholders try to gain advantage at the cost of bondholders. If investment yields high returns, the extra or additional benefits go to shareholders and if the firm fails, the bondholders also sustain the loss. So bondholders share extra risks for no reward. Being agents to shareholders, management tries to invest even in projects that may not have good chances of viability. This phenomenon is termed as overinvestment problem. The losses sustained by shareholders because of this incentive are termed as asset substitution effect. On the other hand, the underinvestment problem refers to the tendency of managers to avoid safe net present value projects in which value of equity may decrease a little, however, increase in value of debt maybe high. This happens because management, being primarily responsible to shareholders, does not concern itself with the overall increase in value of the firm rather it tries to increase the value of equity only [Myers and Majluf (1984)]. Jenson and Meckling (1976) propose that optimal capital structure is reached by trading off the agency costs of debt against the benefits of debt. Dependent and Independent Variables This part is devoted to factors that company ought to take in consideration while deciding capital structure. In general, companies have three sources to raise funds for new investment: use retained earning, issue debt and issue equity. These three sources make the capital and ownership structure. There are certain restraints for utilization of these components of capital structure. Firms do not invest completely by retained earning, for maintaining current assets. Debt is considered as cheaper source, compared to equity issue and it provides tax shelter but access of debt plus with high interest rate leads to bankruptcy. Issue of equity direct changes the ownership structure and give no tax shelter. A firm is said to be unrevealed if it has no debt, while firm with debt liability is leveraged. Objective of this study is to determine factors that have impact on leverage of sugar sector of KSE listed companies. Leverage is dependent variable and this paper is taking two independent variables i.e. tangibility and profitability. Leverage Leverage indicates the proportion of assets financed by debt. The choice of the measure of corporate capital structure may be controversial, as lack of a univocal definition of capital structure led to emergence of a variety of factors used to measure it (kinga mazur 2007). Usually, different forms of debt ratio are used, the differences between the measures concern mainly two things. The first one relates to the nature of debt included, Some authors adopt a more inclusive measure of debt that is total debt, Others work only with long-term debt, Short-term measures are applied rarely (kinga mazur 2007). Additionally, many authors have reported that results achieved with the narrow and the broad concepts are either very similar or better with the use of the broader concept. According to Bevan and Danbolt (2002), focusing on longterm debt when analyzing firms which incorporate a larger percentage of short-term debt into their structure, will yield limited explanatory power. They argue that inclusion of trade credit has a substantial impact on explanatory variables. Fama and French (2002) raised some contradictions arising due to the use of two different debt shares. (Pecking Order and Static Tradeoff) theories, both apply to the debt book value, and there are uncertainties if the predictions may be comprehensive to the debt market value. Following a previous study on non-financial Pakistani listed firms by Shah Hijazi (2005) study uses the book value measure of leverage. The key benefit of debt is that the interest payments are tax-deductible and therefore provides cash savings. The tax shield benefits are not changed by the market value of the debt once it is issued, so the market value of the debt is inappropriate for this study. On the other side, the prime cost of borrowing is the increased probability of bankruptcy. If a firm go down in financial distress and face bankruptcy, at that time the relevant value of the debt is the book value of the debt not the market value of the debt (Shah Hijazi, 2005). Further consideration in choosing the suitable measure of leverage is to take sum debt or just long term debt as a percentage of total assets. despite the fact that capital structure theories believe long term debt as a proxy for financial leverage, shah and Hijazi (2004) employed the measure of total debt as in Pakistan firms have typically short-term financing as the average firm size is small which makes access to capital market hard in terms of cost and technical complexity (Shah and Hijazi 2004). The major resource of debt in Pakistan have been commercial banks, which do not promote long term loans, with approximately no reliance on market based debt until mid 1994 when government stimulated to eliminate the majority of the constraints amongst which one act was to revise company law to allow corporate entities to raise debt straight from the market in form of Term Finance Certificates. So corporate bond market has inadequate record and is in the process of development. This give s explanation why firms on standard in Pakistan have more short term financing than long term financing. Booth et al (1999) also determined in study on determinants of capital structure in developing countries together with Pakistan that the use of short term financing is privileged than long term financing in developing countries. Following Booth et al (2001), Rajan Zingales(1995) and Beven Danbolt (2002),this study calculate leverage (LEV) of firm as the ratio of total liabilities to total assets. Rationale behind using total debt rather than long term or short term debt is to avoid their contradictory relations with leverage. These inconsistent relations are shown by Myers (1984) investigation, positive association of short term debt with financial leverage and negative with long term debt. Independent Variables 1. Tangibility (TG) Assets structure is commonly suggested as a variable since fixed assets can serve as collateral. Greater collateral may alleviate the agency costs of debt (Jensen and Meckling 1976; Myers 1977). That is why, according to the static trade-off theory, there should be a positive relationship between fixed assets and debt. On the other hand, the pecking order theory predicts that firms holding more tangible assets will be less prone to asymmetric information problems and thus less likely to issue debt. This argument suggests a negative relationship. Results obtained for developed countries (Rajan and Zingales 1995; Titman and Wessels 1988) found positive relation between assets structure and debt ratios. According to Bevan and Danbolt (2002), the relationship between assets structure and debt depends on the measure of debt applied. They found assets structure to be positively correlated with long-term debt and negatively correlated with short-term debt elements. According to the static tradeoff approach (jensen and Meckling, 1976), firms with higher fixed assets ratios provide collateral for new loans, supporting debt. On the other hand, according to Pecking Order Theory as argued by Harris and Raviv (1991), firms with low levels of fixed assets would have more troubles of asymmetric information, making them issue more debt, as equity problems would only be probable by under pricing them. Alternatively, firms with higher levels of asset tangibility are normally larger firms that can issue equity at fair prices, so they do not require issuing debt to finance fresh investment. According to them, the anticipated relationship between asset tangibility and debt should then be negative. A firm with a huge sum of fixed assets can simply raise debt at cheaper charges because of the collateral worth of fixed assets. Companies with a higher tangible assets ratio have an advantage to have more loan because loans are presented to them at a comparatively cheaper rate. Therefore this study look forward to have a positive association between tangibility of assets and leverage. In this study tangibility of assets is calculated as the ratio of fixed assets to total assets. Profitability Profitability is a major point of differ among the Pecking Order and Static Tradeoff Theory. According to STT, the higher profitability of the firm provides more explanation to issue debt, as it reduces tax obligation. According to the trade-off hypothesis, firms would choose to have high levels of debt in order to obtain attractive tax shields. This would imply a positive relationship between profitability and debt. Jensen (1986) argues that cash-rich firms should acquire new debt to prevent managers from wasting free cash flows, which implies positive relationship for liquidity. On the other hand, the POT presupposes that larger earnings guide to the enhancement of the major resource firms select to cover their financial shortfall. Given the pecking order hypothesis firms tend to use internally generated funds first and than resort to external financing. This implies that profitable firms will have less amount of leverage [Myers and Majluf (1984)]. The majority of empirical evidence favours the view that profitability and liquidity are negatively correlated with debt ratios (Titman and Wesssels 1988; Rajan and Zingales 1995). This study expect a negative relationship between profitability and leverage. In previous studies, the measure of profitability used was operating earnings before interest payments and income tax (EBIT). But following Shah and Hijazi (2005) this study measure profitability (PF) as the ratio of net income before taxes divided by total assets. Empirical Results Data is selected from Sugar Sector of Karachi Stock Exchange as given by State Bank of Pakistan in the publication Balance Sheet Analysis of Joint Stock Companies Listed on The Karachi Stock Exchange 2001-2006 and 2003-2008. The period of study covers eight years, from 2001 to 2008. However several companies are not included in data because complete information is not available and over all 16 companies data is collected. Data Analysis This atudy uses Regression analysis This paper estimates that Lvit = Bo + BXit + E Lvit = The measure of leverage of a firm i at time t Bo = The intercept of the equation Bi = The change coefficient for xit variables Xit = The different independent variables for leverage of a firm i at time t E = The error term Table 1 Model R Square F Sig 1 .388 79.718 .000 Table 1 shows that F ratio for the regression model is significant, which indicates that regression model is best fit. Total variation in the independent variable explained by the regression model as indicated by Rsquare is 0.388. Table 2 reports the results of regression analysis. Analysing the results for the effects of independent variable on dependent variable, this study find that asset tangibility is negatively correlated with leverage, However, this do not find much evidence that this relationship is statistically Significant. Results indicate that tangibility is not explanatory variable of leverage because regression coefficient is not statistically significant. Thus this study rejects the hypothesis 1 that leverage and tangibility have significant positive relationship. The results thus do not confirm the Jensen and Mecklings (1976) and Myers (1977) version of trade-off theory that debt level should increase with more fixed tangible assets on balance sheet. Profitability is statistically significant and nagatively correlated with leverage as showmn in table 2 and shows that more profitable firms are using less debt and more dependent on internal financingand later on issuing stocks, Consistent with the findings of Titman and Wessels (1988), Rajan and Zingales (1995) all find gearing to be negatively related to the level of profitability. Of all the independent variables chosen for this study, profitability has turn out to be the most statistically significant determinant of capital structure in the context of Pakistan. Profitability is negatively correlated with income. This suggests that profitable firms in Pakistan use more of equity and less debt. This supports the pecking order theory and also approves the earlier hypothesis about profitability that laverage and profitability have significant positive relationship. CONCLUSION This finding is in contrast to the earlier finding by Shah and Hijazi (2004). They found that tangibility was not significantly related to leverage ratio. Financial Situation According to the pecking order hypothesis, firms have a preference for internal finance over external finance. Availability of internal funds is captured by the variables profitability and liquidity. If the pecking order theory holds, these two should be negatively correlated with capital structure. Alternatively, according to the trade-off hypothesis, firms would choose to have high levels of debt in order to obtain attractive tax shields. This would imply a positive relationship between profitability and debt. Jensen (1986) argues that cash-rich firms should acquire new debt to prevent managers from wasting free cash flows, which implies positive relationship for liquidity. Capital Structure Definition DYNAMICS IN THE DETERMINANTS OF CAPITAL STRUCTURE IN THE UK Alan A. Bevan (London Business School) Jo Danbolt (University of Glasgow) Working Paper 2000/9 THE THEORY AND PRACTICE OF CAPITAL STRUCTURE AND ITS DETERMINANTS In their cross-sectional analysis of the determinants of the capital structure for companies in the G-7 economies, Rajan and Zingales (1995) examine the extent to which, at the level of the individual firm, gearing may be explained by four key factors, namely, the level of growth opportunities (proxied for by the ratio of the market value to the book value of total assets), size (measured as the natural logarithm of sales), profitability (earnings before interest, tax and depreciation to total assets), and collateral value (tangibility, proxied by the ratio of fixed to total assets). Profitability Modigliani and Miller (1963) argue that, due to the tax deductibility of interest payments, companies may prefer debt to equity. This would suggest that highly profitable firms would choose to have high levels of debt in order to obtain attractive tax shields. Alternatively, Myers (1984) and Myers and Majluf (1984) predict that, as a result of asymmetric information, companies will prefer internal to external capital sources. Thus a pecking-order is established, whereby companies with high levels of profits tend to finance investments with retained earnings rather than by the raising of debt finance. Consistent with this theory, Titman and Wessels (1988), Rajan and Zingales (1995) all find gearing to be negatively related to the level of profitability. Consequently, we hypothesise: H: The level of gearing is negatively related to the level of profitability. Tangibility Titman and Wessels, and Rajan and Zingales find a significant positive relationship between tangibility and gearing. The Determinants of Capital Structure Choice Sheridan Titman; Roberto Wessels IN RECENT YEARS,A number of theories have been proposed to explain the variation in debt ratios across firms. The theories suggest that firms select capital structure depending on attributes that determine the various costs and benefits associated with debt and equity financing.
Sunday, May 24, 2020
In what manner Can Students Prepare For Mid Term Papers Of V-Ups?Students in the principal year of a first or second year school might be hoping to get their mid research papers of V-Ups before the semester starts. This is frequently their first opportunity to take their course work and get ready for what is to come in their investigations. They will be working with teachers and individual understudies to make an arrangement of study that will permit them to get into school. Setting up an arrangement of study is a decent practice to utilize, and may help understudies who are simply starting to settle on choices with respect to their future.The cutoff time for the main quarter of the semester is normally set for mid term. This is set ahead of time so understudies can prepare of time on what they should plan for their mid-research projects of V-Ups. The midterm for the second year of school courses as a rule happens in June, and the cutoff time for the subsequent quarter is October. Th e third year in school classes generally happens throughout the fall semester.Courses that spread the various subjects in the first and second long stretches of an advanced degree are here and there set up to offer mid research projects for each subject. A few courses don't offer this component as it is at times also tedious. The mid research projects will cover the subjects in each class that the understudy has taken, and should enable the understudy to establish a decent connection with the teacher. A few understudies might be astonished to discover that the V-Ups for their papers regularly change over time.Courses that are offered online commonly don't have mid research projects of V-Ups, however some school courses have an online school that is associated with a school that offers a course. Courses that have courses set up through separation adapting additionally have cutoff times for assignments for the whole semester. Online courses as a rule don't have a mid-term paper.Most s chools will have a base number of units required for a task for each regular class work. These undertakings may expect understudies to participate in addresses or take part in conversations to offer input to the educator. A few teachers will incline toward understudies to invest more energy with different understudies taking an interest in the conversation, while others will need an increasingly serious cooperation with the understudies taking part in the discussion.The educator that is relegated to a venture is frequently alloted to the class conversation and the evaluation won't be given dependent on the class conversation alone. A few understudies might be exceptionally vocal about their perspectives, however a conversation of such perspectives can be significant in a course. In class, the teacher will frequently give instances of remarks that are either snide or extremely positive, and the evaluations that are given to the understudy depend on the genuine circumstance as opposed to what the understudy may figure they ought to be given for such comments.Grades will be founded on the measure of exertion put into the class work. The measure of time spent taking notes and composing will decide how well the evaluation is earned. Classwork is consistently significant, and numerous understudies don't understand this. Most schools will offer schoolwork help if necessary, so understudies will have the option to figure out how to do schoolwork and what to do to get the best grades possible.Students who are uncertain of what they need to do after graduation ought to think about going to a college. These schools offer an assortment of projects and alternatives for individuals who are keen on proceeding with their instruction. The adaptability of picking a program that best meets their requirements is probably the best advantage of setting off for college. Having a vocation once individuals are finished with school makes it simpler to assemble a decent money related es tablishment for retirement.
Thursday, May 21, 2020
<h1> Understanding This I Believe Essay Uf Samples </h1> <p>Yes, there's someone who can help you with your articles master paper journalists at MyPerfectWords. This type of exposition theme can be trying as it is very broad. The exposition is your chance to show how you are the ideal delegate. Bridget's article is very solid, yet there keep on being a couple easily overlooked details that could be made better.</p> <p>More dramatization makes another open door be included. To focus exclusively on a solitary undertaking is basically inconceivable in the present day in age. On the off chance that you might want to be useful, you should rehearse, practice, practice. </p> <p>Start conceptualizing now, and you may find yourself a champ! On the off chance that you call, inquire as to whether they're absolutely allowed to talk for two or three minutes. </p> <p>In reality, I'd been naturally introduced to this sort of circumstance. In spite of the fact that this procedure helped loads of lights go off, it didn't take care of business for everyone. The length is actually an issue. After the opportunity arrives, you will be set up to create your approach to grant achievement! </p> <p>Simply, she exhibits the characteristics which are a great counterpart for a little aesthetic sciences school. Numerous schools have a variation of this kind of paper. In any case, this doesn't disengage understudies by compelling them to work with just those individuals who follow their exact order. On occasion, this is the perfect method to find out about your understudies as entire people, and it could likewise be such a helpful way to deal with urge understudies to watch the creative cycle as a true and important marvel. </p> <h2> The Meaning of This I Believe Essay Uf Samples </h2> <p>My father started to skip back after certain hours. You don't achieve anything on the off chance that you do as such. They would be at precisely the same spot and at exactly the same time, however. Something else, approach them for the absolute best time to get back to them. </p> <p>Unique things to different people, since the circumstance requested. Presently things began to get extremely interesting. At long last, the detail of genuine discourse makes the scene pop. Clarify the vehicle association better. </p> <p>You may even locate a little grin on his mouth. You should be in a situation to toss something back. The coat holder comes out of a dumpster. </p> <p>Imagine the gauge of composing you'll get from an economical paper composing administration. Look at changed ways that you're ready to make your UF exposition stick out. Such articles could likewise comprise of disappointment papers or papers that get some information about a moral situation that you may have confronted. These seven example expositions react to a wide assortment of intriguing questions.</p> <p>The letter might be a general solicitation for data structure letter that might be copied, yet you should be explicit concerning the name of the grant you're asking about on the envelope. Responding to such an inquiry would require, that you introspect. Or maybe, you're requesting direction and counsel about approaches to your pursuit. </p> <p>Your LinkedIn profile should be a real depiction of your on-line nearness as an expert. The objective in making a profile is to support your perceivability on LinkedIn to scouts and businesses who are searching for capable up-and-comers simply like you. This is a huge way to improve your perceivability on the website page and on LinkedIn, and a way to get saw by bosses and selection representatives. Here are a couple of proposals for methodologies to utilize this asset effectively.</p> <p>Although this assignment requires only a couple of things to complete, most understudies discover it amazingly dubious to make an article with quality. It's extremely valuable to dismantle writing to have the option to see only the way that it achieves its goals. Therefore, State University isn't just the perfect area for me, it is the sole spot for me. </p> <h2> This I Believe Essay Uf Samples - Dead or Alive? </h2> <p>Here are a portion of the big deal which will help. You'll watch a comparable structure in heaps of the expositions. It would be ideal if you audit the models given beneath. </p>
Tuesday, May 19, 2020
Teaching Cause and Effect Easy Essay TopicsThe topic of 'causes and effects' in a good essay can be so confusing that many students would not even attempt to use it as an essay topic. If the concept of cause and effect was introduced to them, they would become very confused as to how to use it effectively in their essay.Although cause and effect are not difficult concepts to grasp, some students find it so tricky that they find it hard to express their thoughts on this topic to the point where the concept makes sense to them. To avoid this difficulty for your students, be sure to be gentle with them as you try to explain this concept to them. You may have to do a lot of explaining to make sure that they get the concept correctly, but it is definitely worth it.The topic of 'causes and effects' is one of the easier topics that can be used as easy essay topics. Whether you are writing an essay on school or a college essay, the general ideas are always the same - 'cause'effect'. So, why is it easier to use as a simple topic?The fact that one causes another should be self-evident. Another simple way to remember this concept is that if one goes, then the other will follow. In the case of the phrase 'cause and effect,' we are referring to the principle, 'Because one thing happens, another thing will happen.' We are referring to things like, 'The fact that my girlfriend told me she loves me has made me lose all self-confidence in myself.'Because I know I have been putting myself down all semester, I will use this example to show that one person cannot 'causes' another, because different people can be at two places at once. 'Cause and effect' is simply a concept that the writers and editors of essays can grasp easily. It is important for a good essay to be able to convey the concepts of cause and effect to the reader so that he/she can understand them.If you want to get a good grade on your essay, the easiest and most effective way to do so is to give the topics of caus e and effect easy essay topics. This way, you can be sure that the student will grasp the concepts easily and with ease.You can also make use of cause and effect easy essay topics in a general essay on a variety of subjects such as physics, biology, and geography. Students often seem to love the topic of cause and effect in essay subjects because they can apply the principles to a wide variety of situations. If you want to keep them interested in the topic, be sure to have at least one or two essay topics on this topic in order to keep the interest of your students.The next time you decide to teach your students on cause and effect easy essay topics, remember that the best way to teach them is to start with something simple and easy. Most students have an aptitude for learning when you first introduce a new concept to them. If you allow your students to start off slow, they will become accustomed to the concept faster and this will make the process of teaching them the concepts easi er and quicker.
Saturday, May 16, 2020
Why Everyone Is Completely Wrong About How to Cite for College Papers and Why You Must View This Article Immediately
<h1> Why Everyone Is Completely Wrong About How to Cite for College Papers and Why You Must View This Article Immediately </h1> <h2>The Hidden Treasure of How to Cite for College Papers </h2> <p>You can diminish his particular crown effectively in an assortment of realistic instruments. Friend looked into articles give definitive data of the most extreme quality that academic orders can offer. All exactly the same, including it is really basic to find exactly what precisely that you'd like otherwise called must. Most schools and associations use various reference styles. </p> <p>After you're at the level of refering to a particular page or report, the secret to composing the reference list section is to choose what kind of substance the page has. Look to the second 50% of this page to discover the source type you're attempting to refer to. These pages offer you a couple of inquiries to response, at that point permit you to press a catch to ga in an individual works-refered to passage. Start your reference list at the finish of your paper on a particular page. </p> <h2> How to Cite for College Papers Explained</h2> <p>College paper is a sort of scholarly task where you have to set up a synopsis of a specific subject, examine a chose point and reliably express your thoughts and contentions. The school exposition might be the most much of the time experienced sort of paper you'll write in the early bit of school. Ins Or you'll have quickly taken in the entirety of the exposition independent company which you were keen on. </p> <p>Nowadays you realize which components mirror the gauge of your school paper. Alongside the reasons referenced beforehand, refering to sources in the scholarly world offers proof of your exploration strategy and empowers you avoid copyright infringement. The american mental affiliation apa offers apa group as a way to arrange explore papers. </p> <h2> How to Cite for College Papers Secrets</h2> <p>From that point, a structure will spring up and show you every one of the information you should search for in your source. When you pick the reasonable source from the recorded outcomes, you will be indicated what data was and wasn't discovered, at that point taken directly to the structure. The whole name will consistently be found in the reference index. In the first place, you need to just sort in key points of interest about the wellspring of data utilized in your paper. </p> <p>Include a reference at whatever point you may. The Citation Generator makes it basic that you refer to your sources in any of the potential scholastic styles. It makes it conceivable to decide any data that may even now require a reference made for it. You can't just establish a reference style. </p> <h2>How to Cite for College Papers: the Ultimate Convenience! </h2> <p>Historical examination requests exactness and lucidity in order to succeed. Continuously offer a reference to the work legitimately following the data that you have given. Beside that, they'll likewise ensure that the substance meets every single guidance of the essential theme being examined. Besides, reference records can be a staggering activity too. </p> <h2>The Appeal of How to Cite for College Papers </h2> <p>Therefore, you simply should do so as to set the page number at the end of the sentence. Another representation of where you don't have to utilize pa ge numbers is in the event that the source is only a solitary page long. Each style has runs about where to set the data and kind of accentuation to utilize. Type the name of the site and emphasize it. </p> <p>It is conceivable to utilize our request structure so our help group can ensure that we have an exposition essayist with the basic insight and experience. This is an issue that pioneers in organization and neighborliness face all the occasion. Presently's the amazing upheaval with respect to proceeding with the net scholastics distributing organizations web based business. For some of them you will need support, while others you'll have the option to compose completely all alone. </p> <p>The composing assignments have been demonstrated to be of extraordinary quality, special, sent right away, along with requiring little to no effort cost. We might want you to enlighten your friends regarding us so we construct solid associations with every client and gi ve a scope of certifications planned to ensure the most ideal experience. The understudies are 100% certain to pick up from a scholastic paper of a significant higher caliber, alongside modest value levels. Have a peruse through our site so as to locate the monstrous extent of subjects and administrations that are accessible to you. </p> <h2> How to Cite for College Papers: the Ultimate Convenience! </h2> <p>If you're feeling that you require an individual to create my exposition right now, you can simply depend on our legitimate audits. You may make a reference at any second and furthermore return and alter it the same number of times as you might want. It very well may be a difficult and it can require some investment and exertion, particularly if you need to bounce between different styles. You must create a few scholarly papers over the range of a year. </p>
Tuesday, May 12, 2020
<h1>Easy Essay Topics For College Students</h1><p>Easy article themes for undergrads can be very hard to track down. It is most likely the hardest piece of composing articles. A great many people have various inclinations with regards to points for their essays.</p><p></p><p>What you do is investigate what article themes you feel good with. You ought to never adhere to a particular subject until it is finished. By doing this, you will find that you are not stuck, and you can really utilize the subjects you pick as the reason for future topics.</p><p></p><p>If you have a basic thought, at that point you are bound to have the option to compose a full paper. Your subject ought to likewise permit you to evaluate some composing style.</p><p></p><p>The subsequent stage is to discover a theme dependent on your necessities. The most straightforward approach to do this is to search for a school or colleg e, and see what they have that you are intrigued in.</p><p></p><p>You can likewise converse with your understudy. They may know about a class that you like, or perhaps they know somebody that you can converse with. Or on the other hand possibly they can't consider anything.</p><p></p><p>In the end, you need to pick a point that will not be excessively wide or excessively limited in topic. When composing your exposition, it is smarter to compose more substance on a solitary subject than think of one paper on each topic.</p><p></p><p>Essays are simple yet can be overwhelming to many individuals. You would prefer not to be. Paper themes for understudies are not hard to find.</p>
Saturday, May 9, 2020
<h1>Mental Health Essay Samples - Useful Tips For Writing</h1><p>Many understudies must be confronted with composing psychological wellness papers. There are a wide range of themes that you can talk about in this point, from prescription to self destruction. While it is hard to articulate your thoughts, there are various psychological well-being paper tests that you can use.</p><p></p><p>One of the best emotional well-being article tests is to think about a past memory of yours. It is anything but difficult to recall an occasion that you have experienced previously, or where you were when something occurred. This is a decent example for the exposition since you are doing this on paper and a teacher can understand it. The educator can pose inquiries to help you in making a superior comprehension of yourself and your psychological well-being issues.</p><p></p><p>In expansion to your past memory, consider your keys to pro gress just as the key highlights that you like about yourself. Numerous understudies incorporate considerations about their life partner, kids, and even companions that they know. A large number of these psychological wellness paper tests are likewise about side interests or interests that you may not be satisfying. It is constantly essential to expound on your qualities and ensure that you expound on any circumstances that you might not have taken care of well previously. This will give knowledge into the qualities and shortcomings that you may have, and what you can do to address those weaknesses.</p><p></p><p>When picking the emotional well-being paper tests that you need to utilize, you ought to consider the task you have been given. It is critical to comprehend that there are various sorts of assignments and you ought to pick one that suits you. In the event that you are in school, you most likely won't compose an exposition in school, so pick one that y ou figure you would have the option to finish. You ought to likewise pick one that is explicit to your subject of intrigue, or in the event that you are uncertain, at that point you ought to pick one that fits the idea of the assignment.</p><p></p><p>Mental wellbeing essaysamples are probably the best apparatus that you can use to compose a paper. On the off chance that you can discover an example paper that you can survey, at that point you will increase significantly more information about your musings and how you feel about yourself and your sentiments about the task. This permits you to roll out any improvements or upgrades that you have to make so as to push ahead, as opposed to attempting to make sense of things by yourself.</p><p></p><p>Although it might be hard to compose a paper all alone, it is a good thought to discover psychological wellness exposition tests that will have the option to tell you the best way to do it. There are numerous assets online that can help you in scanning for tests that are essential, or ones that require to a greater degree an expert tone. On the off chance that you discover one that is intended for you, you will be better ready to utilize the resource.</p><p></p><p>Regardless of whether you decide to compose psychological well-being exposition tests without anyone else or with the assistance of a companion, ensure that you realize this is your activity. You should do all that you can to assist yourself with showing signs of improvement and start to roll out positive improvements throughout your life. As you feel good, you will have the option to impart this information to other people, who will have the option to profit by it as well.</p>
Friday, May 8, 2020
What Type of Fonts Do You Use in College Papers?Do you need to know the right way to use the fonts in your college papers? This is an important question for people who write college papers. What type of fonts do you use in college papers? Or do you simply not care?One should consider how they want their font to look like. Do you want a simple and plain text or do you want a bold and lively font? Do you want to look busy and keep everything orderly or does it look fine for everyday reading? These are questions that one has to consider if they are going to make the right choice. The right choice will give the right effects to the people reading your paper.It is really important to have a type of font that is easy to read. A font that is easy to read is more likely to catch the attention of the readers and more likely to get them to read the entire page. To know more about the right type of fonts, it is important to know how you can ensure that you have the right type of fonts.A good fo nt is usually not too fancy or not so condensed. But it should also be the right size that will fit nicely on the page. You should avoid fonts that are too big because it will just take up too much space in the paper and make the paper look old and worn.The right choice will also be the font that will best suit the topic and the tone of the paper. For example, you can choose a font that suits a serious subject and a serious tone for business related papers or even literary papers.It is also important to remember that in case of an important topic, it is better to choose the right font so that the readers can easily understand it. If you choose the wrong type of fonts in your college papers, then your essay will not get read by the readers and you will not get any feedback from your essay.So, you should know about the right type of fonts to use in your papers. This will help you avoid all the possible issues that arise out of your choices.
Top Essay Topics 9th Grade Choices There's, obviously, a limit on the variety of pages even our very best writers can produce with a pressing deadline, but usually, we can satisfy all the clients seeking urgent assistance. A defensive driving course can be useful and might lead to an insurance policy discount. Even at $15 an hour, you must be searching for more money because there's no money leftover at that wage. You don't need to spend a great deal of time writing your own pursuits. An expository essay demands that the author investigates the matter, evaluate the evidence they receive, evaluate the idea, and after that make an argument about it. At times, an assignment will appear somewhat vague, and asking for clarification will allow you to receive a better score, since you're going to be in a position to do exactly what is asked of you. You will need to set up facts, possess the confidence and demonstrate the crystal clear evidence of your private viewpoint to certain ph enomenon. Recent argumentative essay topics that are related to society is going to do. Weight Watchers asks that you consume a specific number of points each day and enables you to get points for exercising. Individuals always think I quit on account of the kids. Students put an x on the area on such scale that matches their very own views. My very last year was surreal and was the very best year of my career. Your student will have the ability to work independently for a lot of the time and you're in a position to choose when and the way you want to work with them. With this much going on in 4th grade, it's no surprise that a number of students may lag behind. Your 10th grade teen ought to be able to have the responsibility for making sure assignments are completed in time. Preparation was respected in the actual world. To sum up, the Additional Information section can be extremely beneficial to students so we encourage you to use it. You may use 9th grade worksheets to provide your students practice with spelling and vocabulary abilities. Students must master using nouns and verbs and learn how to steer clear of run-on sentences and fragments. In addition, they will be able to identify Korean language and culture through a variety of special activities. Therefore, many students and employees decide to purchase low-cost essay rather than writing it themselves. The Lost Secret of Essay Topics 9th Grade Whenever you opt to ask us for skilled aid, don't hesitate to speak to our support managers. The dearth of very good support sources are going to result in a decrease grade. Most of all, slides that present all the judging criteria you have considered is a significant element to a successful project. As a last project, students were requested to collaborate in groups to create visual products which constitute some sort of coherent reaction to our essential questions. Deciding on your topic isn't that easy. It is preferable to use templates since they include all necessary formatting elements. Anyway, below, it is possible to find topic that are best for both scenarios. An excellent topic will ensure it is simpler to pursue the purpose of an argumentative essay, which is, evidently, the entire investigation of the problem you speak about. What You Can Do About Essay Topics 9th Grade Beginning in the Next 5 Minutes 10th may also be attended at a standard school, though. The 10th grade homeschool year should certainly have lots of focus on academics, but your high schooler must also take pleasure in the best sections of being a true teenager. Tenth graders are usually aged 1516. Students at several ages learn geometry in various ways. Most of all, our on-line curriculum is intended to satisfy the diverse needs of our students. Whether you are only seeking to provide your student more practice or whether you are wanting to teach a totally new notion, printable activities can truly be a huge support to supplement your normal curriculum. Your kids will need to set up fundamental concepts before they are able to move on to advanced math. As a consequence, students learn to believe independently and to work together. The 5-Minute Rule for Essay Topics 9th Grade Put simply, it supplies stability. It is a good idea to look for the one which has an excellent reputation and offers high-quality papers at very affordable rates. Sounding out words is a significant skill which will help your children understand more regarding the information that they encounter. Children can find out a lot of words rather quickly. The 30-Second Trick for Essay Topics 9th Grade To organize and rate the writer employs organizational. Your idea doesn't need to be the very best, you merely have to construct your self-esteem, prepare thoroughly what you're going to say, practice with your team, and last, believe in yourself. This topic offers you the opportunity to write how you are going to devote the time when you'll be together. A personal project is something which you opt to do for yourself in your spare time.
Wednesday, May 6, 2020
Health History and Physical Examination RUA Chamberlain College of Nursing November 2014 In this Assessment nursing course, one of the major things that is taught is the most important part of giving proper care to a patient. Correct patient assessment is needed before any nursing care plan or treatment can be implemented. This post-review of a personÃ¢â¬â¢s assessment will demonstrate the proper way to go about assessing a personÃ¢â¬â¢s health. Health History and Physical Examination Health History Under my care for the assessment was Felix Tshimanga, a 50-year old man who has been working in the hospital environment since his 20s. After living in New York for a little less than 10 years, heÃ¢â¬â¢s lived in Georgia for 10 years. The reason forÃ¢â¬ ¦show more contentÃ¢â¬ ¦Pulse rate is at 72. The blood pressure was 140 / 95,which is suggestive of high blood pressure and related to his medical history. No heart murmur was noted, and no other abnormalities were noted. His gastrointestinal, musculoskeletal, and integumentary system were unremarkable. Health Education This section includes some recommendations, including but not limited to: * Healthy diet (balanced diet) by avoiding too much salt in food as salt tends to increase blood pressure. Avoid too much carbohydrates and starch to allow the body to breakdown excess fat in the body. Too much of bad cholesterol can be deposited in blood vessels, thus worsening the patient blood pressure (Baric, 1997). * Adopt some healthy habit such as avoid smoking as it has some effect on both cardiovascular and respiratory system. (Luepker, Johnson, Murray, and Pechacek,(1983). * Physical exercise was recommended as well. Previous research has proven that physical exercise and good diet can efficiently control the patient blood pressure. Patient education: The importance of dieting and exercise is crucial, especially in the modern age we are living in. Staying healthy in America is becoming a serious challenge to most people; cutting down on some fat and going for a weekly physical activities to the gym could make a substantial difference in oneÃ¢â¬â¢s life. Dieting is so important, considering the amount of carbs and calories the average American consumes each day.
Tuesday, May 5, 2020
Question: Discuss About The Beyond Waterfall Managing Scope Effectively? Answer: Introduction Scope creep is one of the dreaded things that can happen to any project regardless of the scale of such a project and can lead to such impacts as wastage of money, failure to meet the projects expected value as well as leading to a reduced satisfaction level by the project owner and even the users. It brings about frustrations to the stakeholders and the project teams who by the end of the project will feel they have not met the requirements of the project of which will be true. Most projects especially large scale projects fall victims of scope creep. Scope creep can be defined by differentiating it from the term scope, which refers to the magnitude of what a project will yield, and the amount of work required to finish it. Scope is the sum of service products and the results that are produced in a project and in most cases documented by the use of Work Breakdown Structure and the scope statement. Scope creep defines any extra features or functions of a new requirement, product or work that was not initially project for in the project and not authorized(Barbara Davis, 2014, p. 543). It refers to the additions of functionality and features to a project with taking into consideration what such additions will have on the resources, time and costs and the additions are never within the knowledge and approval of the client. It encompasses the increase in the requirements of a project over the lifecycle of a project for example what began as a single deliverable gets to six or a product that was initially having three essential features must now have five in order to meet the expectations of the project. Scope creep initiates a reassessment of the requirements of the project(Flyvbjerg, 2012, p. 765). Change is inevitable and scope creep does not necessarily result into a bad thing in a project. It is thus important that the client of a project be informed of the possibilities and needs that may arise as the project progresses. The changes are intended in ensuring that the delivered project responds to the exact needs of the client even as the construction process continues. Among the causes of scope creep include: miscommunication between the parties involved in the project poor change control weak executive sponsor or project manager lack of appropriate identification of what is needed in order to achieve the objectives of the project inadequate initial product versatility Scope creep and the causes As in the preceding definition, scope creep defines a project that has undergone expansion in its original goals even as the project progress. It occurs when changes, which including an update or addition, made to part of or even the whole project or has been requested to be made to the project which is already underway. The update or changes from emanate from the client, customer or co-worker who may feel may they want something done in a different way or even just wish to have a different outcome from the originally intended and requested outcomes. Scope creep can occur as frequently as possible in the lifespan of a project and the requested changes tend to have an effect of the various areas of the project. The affected areas range from the project deliverables to the deadline. In the cases where there are numerous people working on the project, Scope creep has an impact on each of the workers and thus affecting their deliverables. Chances are that a project might fail if the parameters of the project are not monitored and managed properly. This is because it is never a guarantee that a management will easily adjust to the expanded scope(Dayal, 2017, p. 54). The management may not be in possession of enough money and staff to be used in completing the project and the result would be that the team would run out of time and even edn up abandoning the project before it is fully completed. Causes of Scope creep It is worth noting that the causes of Scope creep are a mixture of subtle factors, which normally kick off so quietly that they are never noticed and go on unnoticed until it is impossible to ignore them. The effects of such factors may only be noticed when it is too late to establish a mechanism of fixing the default. It is for this reason that it is essential to establish the triggers early enough and adopt the most appropriate corrective measures for Scope creep before such factors break loose the project(Griffiths, 2013, p. 213). Among the causes of Scope creep are as discussed below: Inadequate gathering of data This comes up when for one reason or another project has been hurried or abbreviated. It results in missing important and key information that the project tam would require in the establishment of a workable project scope and charter. Failure to adhere to the targeted expertise provisions that outline the requirements that regulate project development may result in the project development team missing the sequence of the undertakings that are required to be included in a project. Upon noticing such a mistake, the team would be struggling to seal the gaps in their knowledge unfortunately in so doing they will need to expand the scope of the project in order to compensate for the key aspects that they missed in the initial stages of planning for the project. Rigorous and comprehensive planning is key in the avoidance of this scenario which would otherwise see the project unfinished and completely defined. Instead, the project will continually creep outwards even as the project developm ent continues(Harned, 2014, p. 110). Inadequate information leads to premature definition of the scope of the project. In most cases projects are started off from pronouncements by the executive which often dictate the triple constraints of the project-budget, schedule and scope- without gaining an intensive and in-depth understanding of what is required of the project and what it would take to meet the project requirements. Such executives tend to imagine that the positions they hold imbues them with required knowledge in the accomplishment of the project, which is not the case. The lack of formal project initiation procedures called feasibility analysis deprives an institution the opportunity to make concrete decisions on the project. Such procedures equip the institution with the required and suitable information that are informative of a reliable decision-making. Insufficient control of project It is not uncommon that when a project team is busy working on the project it can easily miss very few small issues with none of the team members noticing the minor changes that that occur to the project scope. Lack of a robust and an all-round control in the organization may see the little additions to the project grow into a sizeable problem before being noticed by anyone. This would culminate into big complications. An elaborate project control is responsible for informing and alerting the project management of such minor changes that occur to the parameters of the project. They issue warning whenever there is conflict detected between activities or in case any issues that can be of potential disruption to the progress of the project or even push the project to way beyond its approved schedule or budget have been detected(KENDRICK, 2012, p. 243). Ideological differences among the leadership team In most cases, executives are found to lean towards a passion on their desire to attain certain goals. A stage is set for problems at the later stages of a project if the project management does not set its focus on the intensity of the project and unanimously agree on the fundamentals of the project. The project management needs to get to a consensus on the scope of the project as well as the target resource requirements and completion date. Disagreements from the executives and sponsors increase the chances of introduction of new goals and priorities in the middle of the project. It is hence fundamental that everyone member of the project management team read from the same page when it comes such factors as how much resources are needed to deliver the expected results of a project and which results are to be achieved and when they are to be achieved. Lack of accountability Failure to hold individuals accountable for their actions in the development of a project led to unintentional scope creep environment. Under circumstances that accountability is not given the priority it deserves, a little pushback is experienced from the members of the team aimed at adding new activities to the project. Such additional tasks lead to additional time consumed in achieving the deliverables as well as a possible inflated funding(KENDRICK, 2014, p. 665). Checked accountability ensures that all the tasks are kept on schedule thereby reducing or even completely eliminating the chances of the planned list of activities would expand beyond the ability of the team to have control over it. Benefits of Scope Creep In as much as scope creep is blamed for a lot of extra work, excessive costs, failed projects and delays, it has positive elements that to some extent may not be overlooked. Customers are among the beneficiaries from scope creep. This happens in such a way that the customers more than what was initially incorporated in the scope of the project. On the other hand, through scope creep, a company is able to retain its customers but still remains to maintain the sunk cost of the project it is undertaking. Still, the project management team as well benefits from scope. The team finds a cause of reevaluating the internal processes of the management through scope creep in such a way that helps to reduce or even eliminate scope creep in the future projects and activities. Finally, through scope creep, a company is able to develop new streams of revenue for the business since it calls on the company to deliver new products and services to the project. This it does by at times allowing the cli ent to fund part of or whole of the newly introduced costs of development. For the case of a project whose construction cost is fixed, the project owner or the end user stands to be the primary beneficiary of scope creed. On a similar note, looking at the project in the wider business context, sense is derived of an increase in scope with regard to business investment. This can be illustrated by circumstances in which the contractor secures an opportunity to strategically increase the quality of the construction materials he issuing in meeting the scope of the project so as to achieve an exceptional and outstanding experience to the customer. By achieving such an experience and performance, the contractor will be better positioned and thus strengthened in obtaining further jobs in the future. This thus means that by contractors deciding to invest in an increase scope of a project, they stand chances of enjoying increased revenues as they work on various projects further down the track(Milosevic, 2013, p. 445). Changing the timelines of the projects Some of the changes which happen during the implementation of the project can lead to radical changes of the initial decisions which were made. The changes which are made changes the requirement of the whole project. It requires time to ultimately adopt the new changes into the project plan; many meetings have to be organized between the clients and stakeholders to agree on which way to move. In that way, the timelines which were initially set has to be changed thus making the implementation of the project to delay. Poor communication and relationship between the involved. In the cases where there is scope creep there results regular blames within the project. Most of the parties who are involved in the project fail to deliver what is expected from them. Scope creep associated with lack of proper documentation of the requirements and the project schedule which makes the members of the project team failing to work as a team(Milosevic, 2014, p. 76). The relationship between the stakeholders and the project team also deteriorates because the stakeholders tend to see that the project team has failed to deliver what was expected from them. To control that the team members need to explain the changes which are favorable to the project to the stakeholders and agree before they are included in the project plan. Poor change control. When there are changes which have occurred.it needs a very tight change control process. In the cases where the changes have occurred as a result of any reason, it increases the budget of the project, and in that way, there are many changes which need to be done which were not included in the initial requirement document which was developed. In some cases, the changes which are done greatly increases the scope of the project which makes it very difficult to control the changes which are made. Mitigating the effects and causes of scope creep. Scope creep can be stopped and managed in its tracks it can be even turned into a business opportunity. The control and management of Scope Creep at the inception stage of the project implementation before any requirement or code has been written. The project charter is one of the significant ways to stop Scope Creep before the implementation of the project starts. The project Charter outlines the project goals, determines the acceptance criteria, approval details, and defines the responsibilities and roles of all the parties involved in the project. And details the change request process. The project Charter should be signed and approved before the implementation of the project commences(philis, 2013, p. 67). In spite of the methodologies difference and the organizational preferences for given methodologies over others, the common thing across all the projects is that implementing early diligence pays off in the control and management of the Scope creep. Early diligence does not preclude a project from the usage of particular methodologies, only if one has a strong foundation upon which to build, testing, launching and developing will proceed. Many projects land into trouble when they start on the wrong foot either early definition or the design phases. It is essential in the process of controlling and managing of the Scope Creep the consultants to utilize their expertise to be able to gather all the requirements by holistically evaluating all the relevant components on the clients business and the view towards their consultants. Which will earn them trust from the interception stage of the project? It is very unreasonable to say that the scope is very rigid defined and that is impossible to change without Scope Creep. The scope of the project is very dynamic, but the changes which are made need to be managed using the controls and processes. A backlog should be used to put a lot of focus on what is significant for launching and what is not. The backlog which is used should be regularly groomed, sized and prioritized. The backlog is used for the analysis of the project methodology. In the cases where the development team has the capacity, and some items can be completed in a very reasonable way before the project is launched. However, the items in the backlog are typically reserved for the post-launch(jones, 2013, p. 45). In the cases where Scope Creep has happened due to a variety of reasons .the best way to control it is to manage the expectations of all the parties in the project. Issues can be exacerbated in the project implementation when the expectations of the parties involved in the project are not managed. The expectations of the parties should cover the impact on the timelines, budget and the staffing concerns. The changes which are done need to be communicated in a clear way and to be documented by using the established changes control process. Documenting all the requirements. One of the most significant ways to prevent scope creep in a project is by documenting all the requirements. Talk to all the users and the project stakeholders to work out their exact requirements from the project. All the requirements which are mentioned by the parties should be recorded down. The requirements should be prioritized as it may not be humanly possible to do all of them. Even though it is time-consuming everything that is raised by the parties should be recorded to capture the essential requirements. All the requirements must be captured in the documents which will be later shared to all the parties. Coming up with change control process Even though a requirement document is developed, there must be controls which will be in place to control the change comes. It is very unrealistic to believe that something will never change. What you need is managed and controlled on the project. Due to that a change control process is very essential. A change control process refers to what is reviewed to when there are changes which need to be done to the project. In the cases where the change agrees with the change control it is approved and incorporated into the project plan, and in the cases where it is different from what is in the change control process it is ejected and can never be incorporated into the project plan. Setting up the change control process refers to the teaching about who is going to be responsible in reviewing and approving changes in the project. A change control process is an essential tool which regulates on how the changes are to be implemented into the project. In the cases where there is no regulation of the changes, there are very high chances of scope creep occurring(Sorinolu, 2012, p. 145). Creating a precise project schedule. A detailed task list can be created from the requirements document.it is very easy7 to come up with a project schedule after you know all the project deliverables The schedule shows all the requirements and how they will be achieved in the form of activities and tasks. One can do cross-referencing of the project schedule with the requirement document to ensure that there is not anything which is left out. Once the project schedule is well outlined, one has to plan for some contingency. In the cases where there is a clear project schedule each who is involved in the project knows exactly what he/she should deliver at a given period. In that way, most of the parties are usually motivated to achieve what is expected from them. A clear outline of how the task will be carried out gives room for better planning of all the resources which are required. In the cases where there is proper planning of resources the chances of scope creep developing are very low. All the resources which are required to accomplish a given task can be acquired before the task is started in that way the chances of changes being made are reduced because what is remaining in the project implementation is very small(Shiv, 2016, p. 456). Verifying the scope of the project with the stakeholder. It is very important to understand the project requirements. Your taught about the project might not be exactly what the sponsor of the project meant. All the involved should meet and talk issues which are relating to the project. The project schedule should also be discussed by all the parties involved to ensure that there is no requirement which was left out during the process preparing the requirement docu8ment. At some time it is important to meet each stakeholder individually to know what is exactly he/she is supposed to deliver. The stakeholder is given the project plan and schedules them to get a given a chance to comment on it and on how to improve on what he/she is supposed to deliver. The owner of the project should take time to discuss how the change control process is structured and come up with ways to make it better. The project owner needs to show the change control process to the sponsor and explain how the changes which arise to the project will be managed. This is a very important moment to remind the stakeholders what is expected from them many months before the start of the project. In case the stakeholders may not want to be fully involved at the schedule, its much better to remind them the stage of construction. Poor communication at this stage means that the primary stakeholders were not informed of what the requirements are needed to be worked on. Engage the project team. When the stakeholders of the project are happy to ensure that the project team is also happy. The project team needs to know how the change control process works and how the changes they many propose may affect them. They should be guardians and protectors of change. Sometimes the project team agrees on their own to do some changes for the good of the project without following the formal procedures. They need to be aware that they cannot implement the changes without the changes being approved by the stakeholders. If the project team want to implement the change, the best thing they can do is to explain to the stakeholder what the changes they need without following the formal procedures. Scope creep a very serious problem on the projects especially in the cases when the stakeholders and the project team does not have a clear understanding of the impact the changes can have on the entire project and the resources, the budget and the schedule. Fortunately in the cases where the team project are well informed about the effects of the changes on the budget, the resources, and the project schedule. To avoid and manage the scope creep one needs to have an online software tool which is up to the data regarding the task which offers room to add the new requirements of the project and review them to be up to date with the current project. Once the project team is well involved in the project, they are also motivated to achieve what is required from them. Avoiding gold plating. Gold plating refers to the practice of adding extra features to the expected result of the project. In most cases, this is done to please the client. There are two main reasons for this practice first the client may not be willing to approve the changes instead he may demand that the project is redone from scratch to meet the specifications listed on the brief. Second, this sets a precedent to the client that any proposal in future may include the changes. Verify everything with the client and the project stakeholders. Once one ensures that the client and the stakeholders have agreed with the plans, you are working on it is very paramount to the success of the project. It is very significant that every detail of the project which is to be implemented is verified before the work is done. The project team should provide the clients and stakeholders with the project schedule which to ensure that they are updated with what is happening in the project(Moustafaev, 2015, p. 453). Break the project down. It is essential to break down the project into small digestible portions. In that way, it is straightforward to keep track of all the members in the project team. Also, it is very easy for the client to reach all the parties in the project and hear the changes which they are proposing to be done to the project plan. Addressing the concerns which are raised by the project team members, in this case, is very easy. Each small portion should have a leader who communicates to the overall project leader to make a communication to be easy and efficient. Keep your team motivate Things run very smooth in the implementation of the project where the members of the project team are well motivated. The members who feel fulfilled by their work they can be open and free to share ideas on the changes which can be done to improve the general project. Also when the project team members are motivated, they can significantly contribute in the changes which are done during the initial stages of the project which can easily be incorporated into the project plan. It is essential to implement an open-door policy whereby the members have the freedom to speak their minds and ask questions which are regarding the project. When all the members are working as per what is expected from them chances of miscommunication and mistakes made are reduced thus reducing the scope creep. Giving an estimation. Giving an estimate is one of the easiest ways to stop scope creep. The estimations answer many change requests which would arise at late stages of the project implementation. The estimation of all the resources which are required greatly allow the resources which were to be changed to be included in the estimation which is done. The estimation also gives room to the client to ask the project team for clarification in the area/she where he does not understand. Always Refer to your change control protocol It is always very important to refer to the change control protocol to understand how to implement the changes. In the cases where there are doubts, it is very important to reveal to the change control protocol. In the cases where the changes go beyond the scope, one needs to break down change control process and then discuss with the client to know the necessary actions to be taken. Conclusion The research and extensive literature review done on scope creep above sheds light on scope creep, its impacts on the cost of construction and strategies that can be used in reducing the costs associated with it. The research has revealed that though scope creep is a bad thing for any construction project and Construction Company or the client, to some extent it is beneficial. It is beneficial to the contractor and the client as well as the project team. Unfortunately, the benefits that come with scope creep are outnumbered by the disadvantages and thus such benefits to an insignificant level count in the project success. Scope creep is a bad thing for a project and may lead to ultimate failure of the project should the most appropriate corrective measures not be adopted at the right time. Commitment of the stakeholders to the decisions arrived at, evaluation of the benefits of the project against the cost, reviewing of the policies and procedures as well as constant communication be tween the various stakeholders are among the strategies that are integral in reducing the risks associated with scope creep to the cost of a project. Such strategies would ensure the stakeholders are continually reading from the same page and focus their interest and attention to the success of the project as initially outlined in the project activities sequence(jones, 2013, p. 172). The research gives the reader and the stakeholders in a project development an elaborate explanation on the scope creep and the associated cost implications. This prior information enables the stakeholders to practice some element of caution by attempting to get to the nitty-gritties of the project. In so doing, hurry and haste in the initiation and abbreviation of the project are eliminated with interest direction in meeting the expectations of the client. References Barbara Davis, 2014. Going Beyond the Waterfall: Managing Scope Effectively Across the Project Life Cycle. 1st ed. Texas: J. Ross Publishing. Dayal, S., 2017. Earned Value Management Using Microsoft Office Project: A Guide for Managing Any Size Project Effectively. 4th ed. London: J. 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